October 14, 2020

Perfect competition is a market system in which homogeneous goods are

generated by several firms. All products are considered perfect substitutes and the

demand curve is perfectly elastic. Marginal cost is the change in the total production

cost that comes from producing additional item. The average revenue is the amount of

revenue a firm receives for each unit of output. The marginal revenue is the change in

total revenue from an additional unit of output sold. A profit-maximizing firm always

produces where marginal cost is equal to marginal revenue. Equilibrium in perfect

competition is the point where market demands will be equal to market supply. In the

short-run, if price is greater than average total cost, the firm is making a profit.

Moreover, the firm can lower its average total cost by manipulating variable cost.

But over manipulation of variable cost such as raw materials will somehow affect the

quality of the products. By doing so, instead of increasing customer satisfaction, it will

cause customer attrition. Some firms also take advantage of outsourcing, meaning a

change in fixed cost which is employee salary. In department stores, employees usually

do not exceed five months in their job. For the law mandates employers to grant various

benefits to employees with six months working experience making them a regular

employee. On the other hand, when price is less than average total cost, the firm is

making a loss. Several firms do maximize their inventory, if a customer complains about

a defective unit; they will immediately replace it with a new one. They are doing this so

that the production will not suffer; besides there are lot of stocks in their inventory.

December 16, 2020

 When an organization thinks globally, it looks for overseas opportunities to

increase its market share and customer base. It gives businesses advantage to connect

with new customers and new business partners. However, considering that the market

is broader, a firm must be aware and have right knowledge about the foreign country’s

culture or their way of living. Put simply, cultural literacy is of utmost importance when

you communicate so you can avoid unintentional negative cultural messages when

conducting business operations on a foreign country. For example, communication in

context of China would mean sharing of knowledge and better connection with prospect

partners. On the other hand, on America it would imply as a form of bribery.

Government intervenes in international businesses mainly with two basic aims:

first is to protect the home market and home industries; and to aid domestic firms based

in the home country. Government builds trade barriers and arbitrates in other ways that

restrict or alter free trade. There are various policies of protecting domestic industries

against foreign competition by means of tariffs, subsidies, import quotas, or other

restrictions or handicaps placed on the imports of foreign competitors. Even PESTLE

analysis in context with Philippines’ participation in international trades implies

government intervention. Philippines act as the revisionary or refuelling stations of

foreign countries trading goods with other countries. The strategic location is being

favoured by countries and assurance when it comes to trade routes. On the other hand,

China being known to have the biggest and cheapest manufacturing operations satisfies

large companies from other countries. Despite of the pandemic, rapid economic growth

and industrialization is still evident and continuously tops the industry.

January 6, 2021
 Global business strategy leads businesses to reach the international market

where they can create a customer base, build a positive picture of their brand, and

profitably sell their goods and services by exploiting the market's profit opportunities.

Companies consider it if they really want to expand their operations beyond borders. It

can be benchmarking wherein a firm strategically conduct observations from other

country to be applied in their own business processes. Firm must establish their

presence in the market, focusing on a sustainable competitive advantage in order to

thrive and prosper.

To successfully enter a global market, it is necessary to know first your target

market to be able to give and satisfy their needs. Since entering an international market

is complicated for the market is at first, impenetrable and intricate. From that, your aim

is to exploit economies of global scope, the production of one good reduces the cost of

producing another related good, to build own competitive advantage. You should

maximize knowledge gained from conducted research and observations to unlock major

opportunities within your business to develop and increase improvements. Poor market

analysis and understanding competitive conditions turn company’s efforts to waste and

only make competitors to continuously top the competition. However, you can create

customization in your product offerings or company’s processes of delivering wide-

market goods and services that are modified to satisfy a specific customer needs. Even

in logistics, one must be clear in logistical planning and scheduling so that repeat

purchase becomes possible. Lastly, it increases perceived service quality, customer

satisfaction, customer trust, and ultimately customer loyalty towards your business.

January 27, 2021

 Foreign Direct Investment basically takes place when an individual establishes

foreign business operations or acquires foreign business assets in a foreign company.

The three types of FDI are horizontal, vertical, and conglomerate. First is horizontal, in

which the business conducts the same activities but in a foreign country. Second,

vertical wherein a firm conducts different activities abroad but these activities are still

related to the main business. Lastly, conglomerate whereof a business acquires an

unrelated business in a foreign country. Companies opt for this kind of investment

mainly to gain access to new market, seeking assets like technology know-how and

efficiency seeking motives. FDI is significant for developing economies and emerging

markets where companies need funding and expertise to expand their sales.

On the other hand, there are two types of market entry strategy namely

franchising and licensing. The distinction between licensing and franchising is that

licensing is a legal relationship which is restricted in scope and applies only to the use

of a trademark or technology, while franchising involves a relationship which goes

beyond the granting of a license and involves a control relationship where the

underlying business is expected to function in compliance with the systems and

procedures defined. Franchising is best for first timers and can be used as their

stepping stone. Once you have adapted the process and the system that is where you

can look for bigger opportunity and build your own business. Licensing also can be a

strategy of an already established business like McDonald’s acquiring license from

Disney characters to incorporate with their happy meals and bucket of chicken. This

way it could attract customers especially those with kids to avail their products.

February 17, 2021

 The impact of global and regional influences allows businesses to

internationalize the number and forms of cross-border transactions of products, services

and resources. Also, it leads to rapid dissemination and diffusion of products,

technology and knowledge in the world. Companies gain competitive advantages by

behaving in a way that their competitors cannot easily duplicate their strategy. If

research and development efforts lead to an improved type of business process cutting

marginal costs or increasing marginal productivity it is easier to outpace competitors.

On the other hand, evaluating market is a cornerstone of a successful business

planning. Thorough market evaluation adequately assesses opportunity, value, risk,

customer purchasing behaviour, competition, and economic entry barriers and

regulations. It is aimed at determining suitability of products or services within a specified

market and how the product can be sold. Marketing evaluation is important because it

give you the ability to uncover opportunities within a market; to know what you customers

think of your products; improves your communication and messaging platforms with your

customers. Indeed, it is one of the key methods of improving customer satisfaction and

knowing what factors affect your marketing strategies. Consequently, supplier evaluation

enables the company to analyze the strengths and weaknesses of its suppliers.

Companies that regularly evaluate the performance of their suppliers find that they have

better visibility into supplier performance, remove hidden costs, reduce risk, get

a competitive advantage by reducing order cycle times and inventory, gain insight on

how to elevate on their supply base, and align practices between the company

management and the suppliers.

EVALUATION
 It is with transcending gratitude to tell you what an inspiration you have been

throughout our experience in this online class. Words are powerless to express this

feeling and I thank you sir from the bottom of my hypothalamus for never letting us

down. Thank you for your time and patience in facilitating such a positive learning

environment. It is evident that you definitely love to teach; your passion comes through

in your teaching and seems to be a part of what makes you Sir, an effective professor.

You are a great instructor; very organized, responsive, patient and able to clearly

explain complex topics. You make things very simple and human.

Yes, we are all aware of what is happening as of the moment, but still, either

we’re in a face to face set up or online class, nothing changes in terms of your passion

in teaching. Thank you so much for being a professor that cares for each individual

student, for making us feel loved and cared despite of battling mental health issues no

one has asked us about our state. We have been blessed by your encouragement and

willingness to help us fully grasp the course material. Honestly speaking, you were my

favourite professor of my entire college life. The last semester with you as our professor

has just passed and has been the best I have had. You were so warm and kind, I hope

that after your retirement, we got to see each other again.

We really do love you and we will miss you Sir! Take care always!