Question

In: Economics

The most cost efficient company Over the years, GE(General Electrics) was respected as one of the...

The most cost efficient company

Over the years, GE(General Electrics) was respected as one of the most admired company in America under the leadership by Mr. Jack Welch. One time Dell and Wal-mart tried to take over the prestigious status and got set back.

Fortune: America's most Admired companies 2019(Top 10)

  1. AppleLinks to an external site (https://money.cnn.com/magazines/fortune/mostadmired/2010/snapshots/670.html).
  2. Amazon.com
  3. Birshire Hathaway
  4. Disney
  5. Starbucks

Links to an external site.

  1. Microsoft
  2. Alphabet
  3. Netflix
  4. JPMorgan Chase
  5. FedEx

Q1)In your opinion, which corporation is the most cost efficient, best managed, and most admired company in America nowadays? GE, Proctor Gamble, Johnson & Johnson ,Dell ,Wal-mart or some other , lately Apple? why? (0.5 point)

Q2) One time mighty companies such as IBM, or GM etc have been declining in their powerful status. What lesson can we learn from those cases?

Do you think the leadership of Mary Barra(GM CEO) with vision of focusing on electric car and self driving car can revive old glory of GM?(0.5 point)

Q3) Is the main reason of company failure due to leadership failure? Or Is it due to complacency problem, fear for change ,lack of hungry spirit, bureaucratic red tape, big is ugly, diseconomy scale or lack of micro management, a failure to adapt to changing technology? or you name it. (0.5 point)

Q4) what are your ideas to keep a world class company such as Apple or etc. stay at top with continuous success in expanding market share, cost cutting efficiency or prosperous profits? possibly new creative leadership, thinking outside of box, without fear of change, maintaining a hungry spirit to be better? Give your own idea. (0.5 point)

Q5) which one company is the best one  you wish to invest for next 3 decades, based on its management, product or business model, financial condition(with low debt), consistent past and potential earning? (0.5 point)

Please answer all 5 questions
must be at least 3-5 sentences long, be as detailed as possible.

Solutions

Expert Solution

Answer to question no 1:-

Most efficient company :-

The most cost effective company in US is Walmart because :-

1) Low margins which leads to high sales and helps the Company to main high customer base

2) Operations are designed to achieve minimisation of operating costs

3) Constantly increasing supply chain management system with proper bar coding system for each and every product

4) Leveraging of its bargaining power to force suppliers to lower prices .

Answer to question no 2:-

Declining of powerful companies :-

1) Lack of innovation at the correct time

2) Competition from new Upstarts

3) Management inability to understand shareholders need

4) Lack of vision .

5) Falling of margins in all segments .

Answer to question no 3:-

Reason of failure:-

The biggest reason for such failure is the failure to innovate. This was the main reason why IBM started declining .

Another example of such failure is Nokia , who failed to bring new technology in their smart phones and it's advantage was directly transferred to Apple .

Answer to question no 4:-

Ideas to maintain status quo :-

1) Clear Vision of the current situation and future needs .

2) Acceptance of new technology.

3) Supporting team approach .

4) Monitoring employees and company performance

5) Maintaining the quality of products

Answer to question no 5:-

Best company for investing :-

The best company for investing is Fed ex because :-

1) It's consistent performance

2) It's future growth plans


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