Monday, December 17, 2018
'Evaluate strategies which may be used by businesses Essay\r'
'Evaluate st invest upgies which may be used by businesses and brasss to repair the combat of a countryÃ¢â¬â¢s goods and services.\r\nCompetitiveness is the ability of a firm or a nation to offer goods and services that disturb the fictitious character standards of the local great deal and world markets at worths that be competitive and provide adequate returns on the resources employed or consumed in producing them.\r\nGovernments have an grievous role for improving the fighting of their countryÃ¢â¬â¢s goods and services. Governments argon satisfactory to change regulations and measuring stickes according to what they deliberate more or less their countryÃ¢â¬â¢s state of economy. For example, a administration may decide to light the conjunction valuate in order to rectify the battle of a countryÃ¢â¬â¢s goods and services. A decrease in the plenty tax volition pull ahead new firms to do up and existing firms to invest. smoke tax is a levy placed on the profit of a firm with different rank used for different levels or internet. They are taxes against profits earned by businesses during a pass alongn taxable period.\r\nIf there is a decrease in the skunk tax, it means that firms leave behind have an growingd retain profit since less money goes to the government revenue. This entrust allow firms to use this money to improve conflict. to a greater extent consumption on investment go away be possible which pass on profit productiveness. If the firms invest on capital goods such as machinery that will make headway the firm by producing at let down cost, thusly the firm top executive able to set cast down bells in order to improve equipment casualty-competitiveness.\r\nFor example the UK government reduced the headline corporation tax rate from 30% to 28% in 2007 Budget. Reducing corporation tax plusd the retained profits for UK firms that sens plough back into investment projects. This should help to ascen sion the UK capital stock. It should also help the UK to keep attracting extraneous direct investment which improves the competitiveness furtherto a greater extent since British firms may gain from the advanced technology and aim of foreign multinationals. (Technology transfer)\r\nHowever, if the government decreases corporation tax, there exponent be some firms that decide to save the retained profits instead of consumption on investment. This capability be because there is a period of niche and firms might find it risky to invest. In sum many firms have chosen not to reinvest as they have been more concerned with making miserable term profits rather than investing in the future. If firms choose to save rather than invest their retained profits, a decrease in the corporation tax wouldnÃ¢â¬â¢t improve competitiveness.\r\nAnother measure to improve competitiveness is to increase government expense on education and reading. If the government do-nothing improve the quality o f teaching in educates and universities and encourage more people to go to university, then this should lead to increase in productiveness of the kick ins in the future. Greater productivity will lead to greater efficiency in firms which will in turn lead to lower average costs of production. This may improve the price competitiveness of UK goods and services. In addition it would improve the non price competitiveness since a more educated workforce is likely to be able to be more creative and innovative. Greater induction should lead to break quality products and the creation of patents, copyrights, brands etc.\r\nHowever, increased missing on education and study by the government does not always lead to increased spheric competitiveness. It will depend greatly on on the button how the money is exhausted. For example expenditure for improving school buildings or Ofsted inspections may not necessarily improve the impressiveness of the teachers and the quality of education . On the other hand set downing on training teachers and advancing their superior development, might be a more forcefulnessive means of improving educational standards in the future and change magnitude productivity. However even in this cause the effects are not likely pass off until the longer term.\r\nAnother way in which the government dirty dog improve the non price competitiveness and price competitiveness in international markets is to encourage innovation and look for. Tax allowances have been made available to businesses spending on innovation and research. However, there has also been a variety of programmes which enable some businesses to gain grants for research and development R & D and to set up noesis transfer networks and universities. Such measures are likely to be more successful than tax cats since firms are given incentives to research and development through and through receiving tax concessions and from making connection to universities where they have the luck to learn about the latest scientific and expert advancements.\r\nOn the other hand businesses, are able to introduce a variety of measures to improve the competitiveness of the goods and services. These include increasing the level of investment on new technology, on staff training, on ICT, etc . unrivalled way by which businesses might improve the competitiveness of their goods or services is by increasing the spending on R & D. By increasing the spending on R & D, businesses will most probably benefit from product and carry out innovation.\r\nIf a business manages to create a unequalled and different product than the rest products in the market, it would be able to compete much more slow since consumers will prefer to buy the most innovated and proficient updated products. For example Steve JobÃ¢â¬â¢s firm, apple spent $758 million on R&D during the prototypic fiscal quarter of 2012. If we take Apple as an example which is one of the most juicy companies, we clearly see that it has benefited from the heavy spending on R & D. It has come up with products such as the iPhone where the sales reached the number of 98,144,000 in the first three quadrants of 2012.\r\nHowever, some businesses prefer not to spend on R & D because they do not think about the longer term. besides there are other firms that fail to spend on R & D. For example the execution of R & D may core in no innovative products or procedures that will improve competitiveness and whence.\r\nAnother way, by which businesses might improve competitiveness, is by improving productivity. Productivity is the turnout per worker. There are different ways by which productivity can be improved. For example if the firms increase the wages, workers might be motivated to work harder. Also, training can improve the knowledge and skills of staff.\r\nImproved enlisting and selection may have the said(prenominal) effect which will increase productivity in th e absolutely term. If the business increases spending on training, workers will be more educated and informed about their job. This will increase the productivity since they will be able to produce more siding at the selfsame(prenominal) working hours and wages. If the productivity is increased, it means that more output will be produced at relatively the same costs. This will allow the firm to get bigger in size, lower the running and operational costs, increase income and gain a greater share of the market. This will increase both price and non-price competitiveness.\r\nHowever productivity doesnÃ¢â¬â¢t always improve competitiveness. For example if training isnÃ¢â¬â¢t done effectively, and workers do not give attention or really care about the job, then they wonÃ¢â¬â¢t improve their knowledge and skills, training will not improve productivity, and therefore productivity will not improve competitiveness. In addition, productivity might not improve competitiveness because in the case of increasing the wages in relation of the output the worker producers, there are workers that wouldnÃ¢â¬â¢t be motivated by an increase in their salary and therefore will not produce a greater output.\r\nProductivity can be used as a measure to improve competitiveness only if it is used powerful and it can increase both price and non-price competitiveness. It can improve price competitiveness by allowing the businesses to set lower prices and improve non-price competitiveness by expanding as a firm and increasing its popularity.\r\n'