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Umqua Bank Case Study - 1081 Words

Organizational Culture According to Clayton Christensen, â€Å"organizational culture affects and regulates the way members of an organization, think, feel and act within the framework of that organization.† (Christensen, 2006) In the case of Umpqua Bank, the organizational culture is so unique that both employees and customers embrace it. Umpqua is not just a bank, it’s a way of life and the experience you feel at this organization should surpass any banking experience you’ve had. In reviewing this case study, it’s interesting to see how culture is embraced at all levels of the banking experience. Since culture is the result of norms, values and common experiences within close working groups, I’m going to focus my analysis of Umpqua’s†¦show more content†¦The various branches at Umpqua have more of a divisional structure as each branch operates independently. Yes, they follow protocols and standards, but in theory, also compete within one another. The ROQ accolades were awarded based on a branch’s success. The case study also referenced the autonomy that universal associates had in servicing customers, and that is consistent with a divisional structure. In evaluating Umpqua’s hybrid structure with its organizational culture, there is a good relationship between the two. Umpqua has a unique culture that extends to both the employees and customers, which requires oversight, training and flexibility within each branch. The hybrid structure complements this as there is influence from the top, but enough autonomy at bottom. Humboldt Bank Integration (Yellow Team) What: †¢ Integrating Humboldt bank into Umpqua. †¢ 4 banks/27 branches would need to be converted within the next 18 – 36 months. Who: †¢ Steve May, Executive Vice President of Cultural Enhancement oversees the Humboldt integration. How/When: †¢ Integration should be in various phases. Training of employees operations, Initial re-brand and full renovation. †¢ Training of employees operations staff should take place immediately. During this phase, there would be a

Should College Athletes Be Paid - 2005 Words

One of the many controversial issues regarding college sports is whether athletes should be paid or not. The argument against paying college athletes is often that they are already paid in the form of full ride scholarships for a free education, for one, and two that college is for amateurs and to pay them would mean that they are professionals and not student-athletes. But as a college student myself I can tell you a scholarship does not cover all the expenses of college. College sports is big business there is no question about it, but how is a non-profit able to generate billions of dollars on the backs of athletes who never see that money? Karl Marx would call this an exploitation of labor. The essential issue here is that, given the measure of cash that is put into school sports and the enormous benefits that big time college athletics create, would we be able to truly say that the players are amateurs? Or are they just slaves working for the universities? In Dorfman s article , Pay College Athletes? They re Already Paid Up To $125,000 Per Year, he supports that athletes should not be paid. On the other hand, in Nocera s article, Here s How TO Pay Up Now, he defends that athletes deserve to be paid as well as Taylor Branch’s article in The Atlantic titled The Shame of College Sports. In this essay a connection will be made between Karl Marx s views and their implications on college athletics. Jeffrey Dorfman, a professor of economics at The University of GeorgiaShow MoreRelatedShould College Athletes Be Paid?1578 Words   |  7 PagesAshay Mehta Nou Per 8 Should College Athletes Be Paid? One of the hottest debates in the sports industry is if college athletes should be paid. If you want to pay these athletes, how would the college determine the dollar amount that should be paid? Should the basketball team make more than the football team? Should the the soccer team be paid as well? Cheerleading? Chess team? Should everyone on the team get a salary? What if your college is good at football and your basketball team is awfulRead MoreShould College Athletes Be Paid?1398 Words   |  6 Pagesbelieve that college athletes at the highest performing schools are better treated than others. Although they do not get paid, they do receive some benefits for being athletes that other students would not get. One advantage for playing a sport is access to scholarships that some schools reserve for their athletes. Depending on the school and the athlete’s performance, money towards tuition is often given. Only some schools are willing to grant â€Å"full-ride† scholar ships for certain athletes. AccordingRead MoreShould College Athletes Be Paid?1364 Words   |  6 PagesHave you paid attention to all of the news that has been surfacing about collegiate sports lately? It is a big topic now days in the world of sports on weather college athletes should be getting paid to play sports. College athletics have gained great popularity of the past few decades, and have brought schools lots of revenue. A lot of college athletes think they should be getting paid for their services they do for their school. College sports like basketball and football generate over six billionRead MoreShould College Athletes Be Paid?1289 Words   |  6 PagesThroughout the years college sports have been about the love of the game, filled with adrenaline moments. However, the following question still remains: Should college athletes get paid to play sports in college? Seemingly, this debate has been endless, yet the questions have gone unanswered. The National Collegiate At hletics Association (NCAA) plays a vital role in this debate. The NCAA is a billion dollar industry, but yet sees that the athlete should get paid for their hard work and dedicationRead MoreShould College Athletes Be Paid?1130 Words   |  5 PagesWhat college athlete would not want to be paid to play the sport that he or she loves? The real question is, though, should college athletes be paid for their roles in a college’s athletics? They are many points to each side of this recent controversial topic, which is why this has been made into such a hot debate in the past couple of years. As of right now, these athletes are not getting paid, but many of them truly believe that they should. Others believe that they already are being paid throughRead MoreShould College Athletes Be Paid?1334 Words   |  6 Pagesrising to the surface is â€Å"Should college athletes be paid?†. This has become a burning question. The NCAA is a multibillion-dollar industry, that makes milli ons, if not billions, in revenue. Yet it’s still maintains the non-profit status meaning that the industry is not set on making a profit and none of the revenue that is made is distributed to its members, managers, or officers. While most players who play in college sports are under a scholarship, that pays for the college tuition, books, and housingRead MoreShould College Athletes Be Paid?1239 Words   |  5 PagesLindsey Simmerman Speech 102 T/Th 1:00-2:15 October 25, 2016 Should college athletes be paid to play? Specific Purpose: To persuade the class to agree with my stance on paying college athletes to play sports Thesis: College football is the hours players spend practicing and performing, the number of injuries the players face, and the persona these athletes must portray every day all the while watching their schools, coaches, and the National Collegiate Athletic Association (NCAA) get all the compensationRead MoreCollege Athletes Should Be Paid1254 Words   |  6 PagesSome college athletic departments are as wealthy as professional sports teams. The NCAA has an average annual revenue of $10.6 billion dollars. College athletes should be paid because of the amount of revenue that they bring to their college. Each individual college should pay its athletes based on how much revenue they bring to the college in which they attend. The colleges that win their Division title, their Conference title, or the National championship, give bonuses to the Head coach of thatRead MoreShould College Athletes Be Paid?986 Words   |  4 PagesPaying the College Athlete The college athlete has steadily grown in popularity in the United States over the span of the past decades. Monetarily speaking, this increased publicity has been extremely beneficial for National Athletic Association (NCAA) and all the colleges involved in athletics which has sparked the dispute of whether or not the athlete should be paid for their hard work and dedication on the field and to their school or if the athletic scholarship is more than enough. College athletesRead MoreCollege Athletes Should Not Be Paid1558 Words   |  7 Pagesstudent-athletes participate in a variety of different sports, and currently they do not receive paychecks for their performances. College athletics have attained an extensive popularity increase among Americans over the past few decades. This has resulted into increased revenues for the National Collegiate Athletic Association [NCAA] and the participating colleges, which has fuelled the debate of whether or not college athletes should colle ct an income. College athletes should not be paid to play

Police Subculture Deviance Enters Into Law Enforcement Essay

Kappeler, Sluder, Alpert (1998) explain that through the police subculture deviance enters into law enforcement. The police character that is developed can be attributed to several paradigms such as psychological, sociological, and anthropological. The individual personalities of an officer and the authoritarian personality, characterized by cynicism, aggression, and conservatism, is that the psychological paradigm analyzes (p. 85). The socialization process which officers experience when they go through the academy, training, and field experience, contrast that dispositional model of the police personality, and this is the focus of the sociological paradigm. When officers internalize these norms and values that are learned, this professionalization occurs. The occupational culture of policing and the -beliefs, attitudes, and values that make up the subculture is seen as the anthropological paradigm or the culturalization perspective (Kappeler, Sluder, Alpert, 1998, p. 87-88) . Kappeler, Studler, and Alpert (2009) discussed a series of opportunity and organizational aspects of policing that contribute to deviance. These aspects are identified as legitimizing police deviance through the authority of law, public perception, isolating police/citizen encounters, and limiting and subverting police supervision (p.61). The police enjoy a legal authority and operational justification to operate in a way that would be seen as criminal behavior if any normal citizen wouldShow MoreRelatedPolice Subculture Deviance Enters Into Law Enforcement1562 Words   |  7 PagesKappeler, Sluder, Alpert (1998) explain that through the police subculture deviance enters into law enforcement. The police character that is developed can be attributed to several paradigms such as psychological, sociological, and anthropological. The individual personalities of an officer and the authoritarian personality, characterized by cynicism, aggression, and conservatism, is that the psycholog ical paradigm analyzes (p. 85). The socialization process which officers experience when theyRead More A General Theory of Crime Essay2067 Words   |  9 Pagessome behaviors and not on others. There are known inaccuracies in the labeling process, much crime go undetected and some crimes are not reported to police. Crimes that go undetected and unreported obviously are not included in the overall statistics at the same time making it difficult to perform accurate studies due to the dark figures. Law enforcement agencies at times, may omit/neglect to record something as a crime, or inaccurately report something as a crime when it is not. Criminologists referRead MoreEssay A General Theory of Crime2134 Words   |  9 Pagesbehaviors and not on others. There are known inaccuracies in the labeling process, much crime go undetected and some crimes are not reported to police. Crimes that go undetected and unreported obviously are not included in the overall statistics at the same time making it difficult to perform accurate studies due to the dark figures. Law enforcement agencies at times, may omit/neglect to record something as a crime, or inaccurately report something as a crime when it is not. Criminologists referRead MoreTracing Theoretical Approaches to Crime and Social Control: from Functionalism to Postmodernism16559 Words   |  67 Pagesindividual. Individual beliefs surrounding crime are not produced at primary levels; instead, they are produced through mechanisms of the powerful within the public realm of a capitalist structure. These mechanisms of power (i.e. the media and police workshops) are beneficial to the institutional structures within capitalistic society because they create a force whereby individuals have a sense of fear instilled in them, forcing them to become reliant on the system or institutional structureRead MoreWhat Are the Major Issues That Cause Inner City Youth to Join Gangs and Become Delinquent? Discuss Whether the New Labour Government’s Policies Have Been Effective in Solving These Issues?8138 Words   |  33 Pagesdelinquents, as a means to steer troubled youth away from the risk of joining real dangerous gangs. (Metro Newspaper 23.05.07) 1.2 CONTEXT: Gangs: The problem It is undeniable that there is a rising culture of youth crime. According to a metropolitan police report discussed on the BBC News online, gangs are responsible for more than a fifth of youth crime in London. (BBC News Online 2007). Clare Sharp et al 2004 in the home office’s ‘Delinquent youth groups and offending behaviour: findings from theRead MoreThe Social Impact of Drug Abuse24406 Words   |  98 Pagesdisguise and diversion of drug shipments and the vast numbers of shipments of small quantities of drugs decrease the yield of enforcement for each unit of intervention effort. The third stage of possible intervention is at the time of consumption. Here, a particularly vulnerable point is when drugs pass from dealers to consumers. This stage is often a target of law enforcement, especially if a strategy of buy and bust is followed. Recently, emphasis has been placed on drug demand, mostly in publicRead MoreStephen P. Robbins Timothy A. Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall393164 Words   |  1573 PagesOrganizational Behavior? 3 The Importance of Interpersonal Skills 4 What Managers Do 5 Management Functions 6 †¢ Management Roles 6 †¢ Management Skills 8 †¢ Effective versus Successful Managerial Activities 8 †¢ A Review of the Manager’s Job 9 Enter Organizational Behavior 10 Complementing Intuition with Systematic Study 11 Disciplines That Contribute to the OB Field 13 Psychology 14 †¢ Social Psychology 14 †¢ Sociology 14 †¢ Anthropology 14 There Are Few Absolutes in OB 14 Challenges and Opportunities

Poa sba free essay sample

The Case of ABC Photography Supplies and Services Prepared by the authors of Principles of Accounts for Caribbean Examinations www. highschoolaccounts. weebly. com SBA Simulation: Suggested Approach | Principles of Accounts for Caribbean Examinations ABC Photography Supplies and Services Table of contents Aims of the project and Description of the Business 3 Financial Statements 4 Analysis of Business Performance 6 Suggestions/Recommendations 7 Conclusion 8 Appendix 2 SBA Simulation: Suggested Approach | Principles of Accounts for Caribbean Examinations ABC Photography Supplies and Services Aims of the project This project has four main aims: 1. To assist Jane Brown in determining the best business type suited for her activities. 2. To prepare the source documents, journals and ledger accounts necessary for the recording of transactions for January and February 2009. 3. To prepare her balance sheet as at 31 January, 2009; trial balance at 28 February, 2009; income statement for the two months ended 28 February, 2009; and balance sheet at that date. 4. To assess the firm’s performance over its first two months of operation. Description of the Business ABC Photography Supplies and Services is a small photography business established, owned and operated by Jane Brown. The firm sells photo equipment and accessories but may also provide basic photographic services in the future. Ms. Brown chose to commence business as a sole trader primarily because she would be fully in control of all decision making. In addition, she would retain all profits for herself. The firm is located in the busy financial sector of the city at 84 Main Street, Port of Lane. 3 SBA Simulation: Suggested Approach | Principles of Accounts for Caribbean Examinations Financial Statements ABC Photography Supplies and Services Balance Sheet as at 31 January, 2009 $ $ Fixed Assets Computers Signage Office Furniture Current Assets Inventory (Stock in Trade) Bank 4,000 500 50,000 54,500 2,000 195,500 197,500 252,000 Financed by: Capital 202,000 Current Liabilities Accounts payable (Trade Creditors) ABC Photography Supplies and Services Income statement for the two months ended 28 February,2009 $ Sales Sales returns Net Sales Cost of sales Opening stock Purchases 490. 00 Purchases returns 98. 00 Net purchases Closing stock Gross profit Other Income Discounts received 50,000 252,000 $ $ 1,320. 00 240. 00 1,080.  00 2,000. 00 392. 00 1,600. 00 792. 00 288. 00 19. 60 307. 60 Expenses Electricity Net income 185. 00 122. 60 4 SBA Simulation: Suggested Approach | Principles of Accounts for Caribbean Examinations ABC Photography Supplies and Services Balance sheet as at 28 February,2009 Fixed assets Office furniture Computers Signage Current assets Inventory Accounts receivable Bank Cash Current liabilities Accounts payable Owners equity At start of the period Net income At end of the period $ $ $ 50,000. 00 5,500. 00 500. 00 56,000. 00 1,600. 00 960. 00 194,627. 60 435. 00 197,622. 60 51,500. 00 146,122. 60 202,122. 60 202,000.  00 122. 60 202,122. 60 5 SBA Simulation: Suggested Approach | Principles of Accounts for Caribbean Examinations Analysis of Business Performance ABC Photography Supplies and Services performed reasonably well in its first two months. It remained very liquid and generated a reasonable return. Liquidity The firm was very liquid over the period, registering healthy current (3. 95:1 and 3. 84:1) and quick ratios (3. 91:1 and 3. 81:1). Merchandise moved relatively slowly (every 26. 4 days) but this is understandable since the business has only just begun operations. It is anticipated that this will pick up in a short time. Profitability ABC was profitable over the two-month. The gross margin (27%) as well as the net profit percentage (11. 4%) reflected good control of costs and expenses. These contributed to an ROCE of 0. 06%, a sign of overall prudent management of the business. Sales vs Costs/Expenses 9% 52% Net Sales Cost of sales Electricity 39% 6 SBA Simulation: Suggested Approach | Principles of Accounts for Caribbean Examinations Suggestions/Recommendations Greater emphasis needs to be placed on cash management. Presently, there is too much tied up in idle cash ($194,628) representing 98% of total current assets and 77% of total assets. Jane can look to investing excess cash in short – term investments. Idle Cash 198,000. 00 197,500. 00 197,000. 00 196,500. 00 196,000. 00 195,500. 00 195,000. 00 194,500. 00 194,000. 00 193,500. 00 193,000. 00 Bank Current assets 7 SBA Simulation: Suggested Approach | Principles of Accounts for Caribbean Examinations Conclusion 1. Jane Brown was assisted in determining that the best business type suited for her activities and size is the sole trader form. 2. Her source documents, journals and ledger accounts necessary for the recording of transactions for January and February 2009 were prepared. 3. Her balance sheet as at 31 January, 2009; trial balance at 28 February, 2009; income statement for the two months ended 28 February, 2009; and balance sheet at that date were prepared. 4. Based on the financial results, the firm performed well over its first two months of operation. 8 SBA Simulation: Suggested Approach | Principles of Accounts for Caribbean Examinations Appendix Source documents ABC Photography Supplies and Services 84 Main Street,Port of Lane Phone 056-4532 Invoice#R541 Date 12 February, 2009 Customer Janet Shepherd 34 Sap Drive Treeland Heights Phone 123-4567 Description of goods/services  supplied Quantity 10 Price per unit TT$ Cases film Total 120 Total amount due TT$ 1,200. 00 0. 00 1,200. 00 Total amount received 0. 00 Balance receivable 1,200 Terms:5% discount if paid within 15 days. Net due in 30 days. Signs R Us Ltd 14 Main Street,Port of Lane Phone 019-3245 Receipt# A345 Date: 8 January, 2009 Received from Jane Brown For the sum of Five hundred P. Laird T T$500. 00 Signature ABC Photography Supplies and Services 84 Main Street,Port of Lane Phone 056-4532 9 SBA Simulation: Suggested Approach | Principles of Accounts for Caribbean Examinations CN#1 Date 16 February, 2009 Customer Janet Shepherd 34 Sap Drive Treeland Heights Phone 123-4567 Description of goods/services supplied Quantity 2 Price per unit TT$ Cases film Total 120 Total credit granted TT$ 240. 00 240. 00 Big Bank Ltd 52 Davidsbrook Ave, Broadwalk ABC Photography Supplies and Services Cheque# 002 84 Main Street, Port of Lane Phone 056-4532 Date: 31 January, 2009 Payee For the sum of LapTop Village Four thousand TT$4,000. 00 Dollars 160-345-678 Signature H. Rambally Teaching note: Any four source documents will be sufficient. Journals Cash Book Date 2009 Jan 1 Details Capital Discounts Allowed $ Cash $ Bank $ 200,000 Date 2009 Jan 8 31 Details Discounts Received $ Cash $ Bank $ Signage Computers 500 4,000 10 SBA Simulation: Suggested Approach | Principles of Accounts for Caribbean Examinations 31 Balance c/d 195,500 200,000 200,000 Feb 1 Balance b/d 2 Feb 3 Sales Bank 195,500 Feb 3 120 500 11 27 28 620 Cash Big Electronics Electricity Balance c/d 500 19. 60 372. 4 185 435 620 195,500 194,627. 60 195,500 Sales Journal Date 2009 Feb 12 Customer name Folio Janet Shepherd Invoice # Amount R541 1,200 Total credit sales 1,200 Purchases Journal Date 2009 Feb 4 Supplier name Folio Big Electronics Invoice # Amount X43 490 Total credit purchases 490 Returns Outwards Journal Date 2009 Feb 5 Supplier name Big Electronics Folio Cr. note # CNX3 Amount 98 11 SBA Simulation: Suggested Approach | Principles of Accounts for Caribbean Examinations Total returns 98 Returns Inwards Journal Date 2009 Feb 16 Supplier name Janet Shepherd Total returns Folio Cr. note # CN1 Amount 240 240 12 SBA Simulation: Suggested Approach | Principles of Accounts for Caribbean Examinations JOURNAL 2009 Jan 1 Jan 8 Jan 15 Jan 22 Jan 31 Feb 25 Feb 28 Feb 28 Feb 28 Feb 28 Feb 28 Feb 28 Folio Bank Capital To record the start of Jane Brown’s business Signage Bank To record the supply and installation of a wall sign Office Furniture Furniture Guys Ltd. To record credit purchase of office furniture. Inventory Capital To record owners increased investment. Computers Bank To record the purchase of a laptop Computers Charles and Sons To record the purchase of colour printer. Sales Income Statement To close the sales a/c. Returns outwards Income Statement To close returns outwards a/c. Income Statement Purchases To close the purchases a/c. Income Statement Returns inwards To close returns inwards a/c. Income Statement Inventory To record opening inventory. Inventory Income Statement To record closing inventory. Dr. $ 200 000 Cr. $ 200 000 500 500 50,000 50,000 2,000 2,000 4 000 4 000 1,500 1,500 1,320 1,320 98 98 490 490 240 240 2,000 2,000 1,600 1,600 13 SBA Simulation: Suggested Approach | Principles of Accounts for Caribbean Examinations General Ledger Accounts Capital a/c 2009 Jan 31 Balance c/d 202,000 2009 Jan 1 22 Bank Inventory 200,000 2,000 202,000 Feb 1 Balance b/d 202,000 202,000 Feb 28 Balance c/d 202,000 Office Furniture a/c G/L# 2009 Jan 15 Feb 1 Furniture Guys Ltd 50,000 2009 Jan 31 Balance c/d 50,000 Balance b/d 50,000 Feb 28 Balance c/d 50,000 Balance c/d Income statement Balance c/d 2,000 Inventory a/c 2009 Jan 22 Capital 2,000 Feb 1 Feb 28 Balance b/d Income statement 2,000 1,600 3,600 2009 Jan 31 Feb 28 Feb 28 2,000 1,600 3,600 Computers a/c 2009 Jan 31 Feb 1 Feb 25 Bank Balance b/d Charles and Sons 4,000 4,000 1,500 5,500 2009 Jan 31 Feb 28 Balance c/d Balance c/d 4,000 5,500 5,500 Signage a/c 2009 Jan 8 Feb 1 500 2009 Jan 31 Balance c/d 500 500 Bank Feb 28 Balance c/d 500 Income statement 490 Purchases a/c 2009 Feb 28 2009 Total for the period 490 Feb 28 14 SBA Simulation: Suggested Approach | Principles of Accounts for Caribbean Examinations  Sales a/c 2009 Feb 28 2009 Feb 2 Income statement 1,320 Feb 28 Cash Total for the period 120 1,200 Discounts received a/c 2009 Feb 28 2009 Income statement 19. 60 Feb 28 Total for the period 19. 60 Returns inwards a/c 2009 Feb 28 2009 Total for the period 240 Feb 28 Income statement 240 Returns outwards a/c 2009 Feb 28 2009 Income statement 98 Feb 28 Total for the period 98 El ectricity expense a/c 2009 Feb 27 2009 Cash 185 Feb 28 Income statement 185 Accounts Payable Ledger Furniture Guys Ltd a/c 2009 Jan 31 Balance c/d Feb 28 Balance c/d 50,000 2009 Jan 15 Office Furniture 50,000 50,000. Feb 28 Balance b/d 50,000 Charles and Sons a/c 2009 Feb 28 Balance c/d 1500 2009 Feb 25 Computers 1500 15 SBA Simulation: Suggested Approach | Principles of Accounts for Caribbean Examinations 2009 Feb 5 11 11 Returns Discount received Bank Big Electronics 2009 98. 00 Feb 4 19. 60 372. 40 490. 00 Purchases 490. 00 490. 00 Accounts Receivable Ledger Date Details 2009 Feb 12 Sales Mar 1 Balance b/d $ Janet Shepherd Date 2009 1,200 Feb 16 Feb 28 1,200 Details Returns Balance c/d $ 240 960 1,200 960 16 SBA Simulation: Suggested Approach | Principles of Accounts for Caribbean Examinations. ABC Photography Supplies and Services Trial Balance as at 28 February, 2009 GL# 100 Electricity 110 Returns inwards 120 Returns outwards 130 Sales 135 Discounts received 140 Purchases 150 Inventory 500 Accounts payable 600 Accounts receivable 700 Cash 800 Bank 900 Office furniture 1000 Computers 1100 Signage 1200 Capital $ 185. 00 240. 00 $ 98. 00 1,320. 00 19. 60 490. 00 2,000. 00 51,500. 00 960. 00 435. 00 194,627. 60 50,000. 00 5,500. 00 500. 00 202,000 . 00 254,937. 60 254,937. 60 Closing inventory at 28 February, 2009 was valued at $1,600. Ratios Name of ratio Calculation January February. Stock turnover (Turnover) Ratio Cost of goods sold ? Average stock, where Average stock= 26. 4 days Current assets ? Current liabilities 3. 95:1 3. 84:1 Acid-test (Quick) Ratio Current assets (less closing stock) ? Current liabilities 3. 91:1 3. 81:1 Gross margin percentage (Gross profit ? Net sales)x100 27% Net profit percentage (Net profit? Net sales)x100 11. 4% 0. 06% (Opening stock + Closing stock) ? 2 Current (Working capital) Ratio (Net profit ? Capital employed)x100 Return on capital employed (ROCE) For an unincorporated business, the capital employed = (Opening Capital + Closing Capital) ? 2 17.

Microeconomics Price Elasticity of Demand

Question: Discuss about the Microeconomics Price Elasticity of Demand. Answer: Demand and supply analysis in microeconomics is considered as an important approach in analysing the equilibrium in the market conditions. All the products are subjected to the market demand and supply analysis, where both the aspects are based upon the price of the product, other factors remaining constant. Demand is negatively associated with the price of the product, whereas, supply is positively associated. It is quite vital for coming to a point where the quantity demanded and the quantity supplied is equal at fixed price (Rader, 2014). This situation is termed as the point of equilibrium, whereas the corresponding price is the equilibrium price and the quantity is equilibrium quantity. In all these topics, one topic in microeconomics is of crucial importance, this is known as the concept of elasticity. Elasticity measures the effectiveness of the change in either quantity demanded or supplied with the change in its price (Nicholson Snyder, 2014). This essay deal with the aspect of price elasticity of demand, where the effectiveness of the change in quantity demanded is measured corresponding to the change in the price of the product. In order to do so, two real life examples has been taken into consideration. Two articles, one who deals with the rise in the quantity demanded for internet music producing companies, whereas, the other deals with the effect of electronic vehicles on the price of oil. Both the real life examples has been very well explained with the help of economic concepts and theories. Thereby providing a clear view of how the market in an economy works. Article 1 According to the news article published by pr newswire in 9th march, 2017, there has been a considerable rise in the revenue generated by companies who have been generating internet music programming market. According to the article, there has been an increase in the revenue being generated from internet music programming companies due to a sharp rise in the demand among the music lovers. There is a shift of the music listeners consumption patter with an outstanding assembly of cross channel broadcasters and pure play internet programmers, services and platforms. They are all combines with the exploitation of the audio avail plus consumer comfort with affordable payment scheme of paying as per the usage subscription fees. This has resulted into a 57% rise in the revenue of such companies in the year 2016. With the rise in the advertisements and promotional activities generated by such firms, it could be stated that a further increase in the revenue over an amount of $5.4million has b een seen in the year 2016. It has been able to capture a large part of the market place with the rise in the muscular 2016 surge. various catalysts has been associated with the increase in the usage of internet music which would result in the synchronizing audios and improved audio avail targeting innovations that has been generated to formulate the program (Newswire, 2017). Music to be attained from internet music market is considered as a normal good in todays world. It is consider as a product which would generate high demand with a slight change in the price pattern. Price elasticity of demand for the products could be stated as the one which has the possibility of generating high demand with a slight change in price (Acemoglu, Laibson List, 2017). Hence, it could be efficient enough to generate high revenue from the provided production in the market. This shows that the price elasticity of demand for internet music generating companies is greater than one. Such a scenario could be explained with the help of figure 1. Figure 1: Elasticity of Demand for Houses (Source: As Created By the Author) In figure 1 the demand curve facing the internet music producers on internet has been drawn the demand curve is relatively elastic in nature with elasticity more than one. This could e quite valuable in stating hat a slight change in the price of the product, results in a higher magnitude change in the quantity demanded. Hence a flatter demand curve has been seen. As the music retrieved from the internet is considered as a luxury product, a slight fall in the price of the product from p1 to p2, there is a sharp rise in the quantity demanded of the product from q1to q2. The magnitude of the rise in quantity demanded is much more than that of change in price. Hence, it could be easily stated that demand of the product is dependent upon the type of product tat has been taken into consideration. Article 2 According to the news article published in 6th march, 2017 by EvWorld, it could be stated that the consideration of electronic vehicles as a hamper for the oil industry is a myth. Research works conducted earlier has stated that by the year 2024, electronic vehicles would supposedly reduce the demand for oil by 2.2 million barrels per day globally. However, the achievement o such a trend is not feasible in nature. According to the ieas oil medium term market report in the year 2016, stated that there has been an expected increase in the demand for oil until 2020 by 1.2 million barrels per day and the estimation could have been extended up to the year 2024. If all the increases are added from the year 2015 to 2024, there has been 11 million barrels per day, which has been offset by 2.2 million barrels per day reduction. This has been a result of the electronic vehicles and a net increase in the demand of 8.8 million barrels per day ("Electric Bicycle EXPO", 2017). The introduction of electronic vehicles in the world had been deemed with a reduction in the demand for oil. Hence, a substitute in the form of electronic vehicles has been introduced in the economy. Yet, the resultant the effect on the demand for oil globally has not been as per expectations. The elasticity of demand for a particular product depends upon the change in their price. The elasticity of demand for a particular product measured the effectiveness of the change in the quantity demanded with respect to the change in its price (Rios, McConnell Brue, 2013). The elasticity of a product is dependent upon the type of product that is being considered. Oil is considered as a necessity, which is considered as less elastic in nature. The elasticity of such products is considered as less than one. The price elasticity of oil can be explained with the help of figure 2. Figure 2: Elasticity Of Demand For Houses (Source: As Created By The Author) According to figure 2, the demand curve for oil has been shown which is steeper in nature. Products that are relatively less elastic face such a steep demand curve, and hence, their elasticity is less than one. In such an effect, it could be seen that even when there has been an introduction of electronic cars globally, the consumption value of oil has not changed largely. It could be stated that with the fall in the price of oil from p1 to p2, the rise in the quantity demanded for oil has been from q1 to q2. The magnitude of the change in quantity demanded is lesser than the magnitude of the change in price. Hence, it could be easily stated that the price elasticity if demand for oil is relatively inelastic n nature, as oil is considered as a necessary product for the consumers. Price elasticity of demand is a crucial topic in the field of microeconomics in order to analyse the change in the behavioural pattern of the consumers with respect to the type of product. According to the law of demand, quantity demanded of a product decreases with an increase in price and increases with a decrease in price. Elasticity of demand helps in analysing the effectiveness of the change in quantity demanded with respect to change in price. It measures the magnitude of the change in quantity with the change in demand of the product Both the articles has been taken into consideration in order to frame the effect of elasticity of demand on real world examples. This helps in acknowledging the behaviour of the consumer depending upon the type of the goods. Whether the goods is considered as more elastic or less elastic in nature is completely dependent upon the consumers perspective. Real world example is considered to be more precise in analysing the elasticity of demand. Reference Acemoglu, D., Laibson, D., List, J. (2017).Microeconomics. Pearson. Electric Bicycle EXPO. (2017). Evworld.com. Retrieved 4 April 2017, from https://evworld.com/blogs.cfm?blogid=1408 Newswire, P. (2017). Research and Markets - $4.6 Billion Internet Music Programmers Market 2016-2018 Featuring Amazon, Apple, DoubleClick, Google, Microsoft, Pandora, Pure-play, SiriusXM, Spotify Viacom. Ca.finance.yahoo.com. Retrieved 4 April 2017, from https://ca.finance.yahoo.com/news/research-markets-4-6-billion-133000119.html Nicholson, W., Snyder, C. (2014).Intermediate microeconomics and its application. Nelson Education. Rader, T. (2014).Theory of microeconomics. Academic Press. Rios, M. C., McConnell, C. R., Brue, S. L. (2013).Economics: Principles, problems, and policies. McGraw-Hill.