Monday, December 9, 2019
Business Elements of Coopetition Strategy â⬠MyAssignmenthelp.com
Question: Discuss about the Business Elements of Coopetition Strategy. Answer: The great Depression of thee financial year 2008-09 has a significant impact on the share values of the company. However, five years after the recessions, most of companies in the US stock exchange have been able to recovered from the unfavorable business condition and also able to create new job opportunities in the US economy. One of the major policies that were used by the companies during the time of this economic crisis is the policy of stocks buy back. Nearly 2.4 trillion dollars are spent by 449 companies under the SP index. This is the total 54% of the total profit level of the company. With the help of the buyback policy, the companies have able to make the 37% of the dividend. The scale of the buyback policy helps in the matters related to the time of the economic depression Management went very high levels. It is with the policies of these buyback the companies have been able to minimize the level of economic loss and ensure that the financial loss cam be partially recovered. Most of the companies however, have failed to provide a proper justification for the use of the buyback policies, which have resulted in the investors of the share market, feel doubt about the policies related to financial recovery. With the help of the buyback policies, it is possible for a company to reduce the percentage of the share on the stock market and thereby increase the level of demand in the market, which helps in the matter of elevating the price of the company share. Hence, in this case the companies are using the share of the profit in their own prosperity to ensure the assets of the company are not shared in the market. However, on the other hand, the share holders of the companies, who are dependent on the profit, will not be benefited from the policies. With the level of the increased profit in the companies, it is possible to increase the level of buyback share. From the time of the end of the World War II, the US companies have used the policy of reinvesting, which is one of the best ways to prepare the companies during the time of unfavorable business environment. Due to the effects of the economic crisis, the share of the profit that depends on the house holds profits have also improved. The economic crisis has also had a significant impact on the employment relation. Most of the companies have reduced the total number of employees, which has resulted in the increased in the total number of unemployment among the citizens of America. The buyback policies have been applied in most of the cases and types of industry in the US market, which includes the alternative energy market, Nanotechnology and Pharmaceutical drugs. The positive and the negative effects of the buyback policies have helped to shape the future of the US economy. What are the strategies that are adopted to prevent economic recession to cause business failure? How the rate of employment in the US is got affected due to the economic depression? How did the US companies survive from the adverse effects if the economic crisis? What are value creation and value extraction and their relations with the growth of the US economy? It can be noted that more 500,000 small and large have been affected due to the effects of economic recession of 2008-09. The above mentioned article has helped in the process of business theory, which is being applied to avoid the effects of the economic recessions. It is important for the business to restrict the total shares, which is being related in the stock market. It is also important to buy back few of the stocks by the business organization, which is being already realized in the market. With the help of this method, it is also possible to lower the level of financial loss. During this time a company can also launch new category of products, which will help to attract the new customers. The alternative ways to reduce the cost of the expense is also highlighted in the article. The share of the company also needs to be restricted from reaching out the share holders as there is a chance of reducing the percentage of share which, can reach out to the public. The above article has mentioned about the jobs that are lost in the US, due to the effects of the great economic recession Management of 2008/09. This recession is regarded as the biggest cause of the losing jobs among the people, which due to the fact that most of the companies had decided to reduce the total number of employees to minimize the loss. The GDP of the US economy has been at its worst phase after the end of the World War II. It is estimated that nearly 9 million people have lost the jobs between the year 2007 and 2009 in around 50 states of United States. The rate of employment also decreased by 6.3%, due to the fact that the companies have decided to reduce the total number of employees to compensate over the financial loss. In this case, the researchers have collected and provided all the details statical data relevant to the total loss of the people, who have lost their jobs due to the economic recessions. In the article, the data about the total jobs that are lost in each individual state have been mentioned separately, which has made it possible to identify the least affected states, which according to the article is Michigan, where 8.95% of the jobs are lost and also the worst affected state, which is 23.65%. There is a quite a large variation in the total number of jobs, which are lost due to the effects of the economic depression. The regression model is used in the given case, which helps to identify the level of percentage of jobs that are lost and also the jobs, which are gained during the period of recessions. There has been sharp change in the rate of economic progression, during and after the period of economic regression. The impact of the economic recession also has been mentioned in the given cases, which has resulted in the better yield of the economic recovery. In the given articles, different themes have been used in the matters related to the economic depression. The current case of economic recession is the worst since the great depression in the 1930. The recovery methods that are used to reduce the effects of recession can help to deal with the consequence of financial loss of the nation. The recovery techniques has been different that has been used across all the states of US. For example in the state of Dallas and Kansas City, there has been more focus on the industrial development, which depends on the type of business polices that has been used. In city of Chicago and Cleveland, there are special economic policies, are depended on the values relevant to the growth of the in dustry. In New York, Boston and Philadelphia, there has been recovery done in the healthcare industry, which has ensured that the quality of the health service is not compromised. With the process of recovery, which is being applied, it is possible to deal with all the future consequence of the economic crisis and recession. Article: Untangling the value-creation and value-appropriation elements of coopetition strategy: A longitudinal analysis on the firm and relational levels By Paavo Ritala and Annika Tidstrom The above article highlights about the importance of value creation and value appropriation, which helps in the process of collaboration, which helps to deal with the adverse economic conditions. With improved level of corporation and coordination among different business organization, it is possible to deal with the adverse consequence of the economic recessions. It is important for the managers of business organization to establish coordination with the rivals, which can help them to deal with all the challenges that exist due to economic recession period. Conclusion The economic recession of 2008-09 has been one of the worst type of economic crisis in the United States since the period of world war II. Most of the business organization has implemented the policy of buy back of the companys own share, which has resulted in the company buying their own share from the market and limiting the access to the public. The level of employment in US has also been compromised due to the effects of economic crisis. References Pearce, J.A. and Michael, S.C., 2006. Strategies to prevent economic recessions from causing business failure. Business Horizons, 49(3), pp.201-209. Powell, E.D., 2015. Fighting Unemployment: A Descriptive Study Examining Female Veterans Ages 18-24. Northcentral University. Wilkerson, C.R., 2009. Recession and recovery across the nation: lessons from history. Economic Review-Federal Reserve Bank of Kansas City, 94(2), p.103. Ritala, P. and Tidstrm, A., 2014. Untangling the value-creation and value-appropriation elements of coopetition strategy: A longitudinal analysis on the firm and relational levels. Scandinavian Journal of Management, 30(4), pp.498-515.
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