Group items tagged

This article is about the deficit that North Canton is facing because their variable costs are rising and there marginal revenue is decreasing. In the short run, they are able to continue production because they have enough revenue left over from last year but in the long run, they risk not having enough revenue to pay off the deficit.

This article talked about eBay increasing their revenue in double digit percentage and brought in 1.8 million$ last quarter. They were able to do so because in the long run they planned ahead and predicted that mobile phones would become a platform for commerce, so eBay used PayPal to make a lead in mobile payment, which gave them more market share. eBay was also experimenting with new app called eBay Now, which allows customers to buy goods from their phones from Macy's Target and Walgreens and have them delivered the same day. So we can see how important it is for a form to plan ahead in the long run: it decides the revenue for the firm in future.

Nokia, a well-known cellphone manufacturer based out of Helsinki, Finland, has been struggling for the past few years to keep its revenue at sufficient level. Last year, the corporation was not able to pull any profit and lost over $1 billion. After many cuts and streamlining procedures, Nokia was able to gain a profit this quarter of $200 million, however, revenue continued to fall by 20%. This is an excellent example of how profit and revenue are truly separate concepts, because although the profit gain gave the impression that Nokia's status is improving, it is still in fact losing income.

US Airways Group Inc announced that fourth quarter profits more than doubled as revenue costs increases. The carrier with bankrupts improved on time arrivals and baggage handling and this ties up with revenue of the airways. Because according to the service that airways provide people impress them and make them to fly with the same airways all the time just because of kind and on time services and increase revenues f the airways company.

This article talks about the growth of revenue from online advertisements, the main example here is ads on Online Mail. They show when there was a growth or fall in revenues during the recent times.

This article shows an example of how exchange rate changes can affect revenue for firms. 

Biogen Idec Inc., a Weston company known for its multiple sclerosis drugs such as Avonex and Tysabri, said Monday that its fourth-quarter revenues rose 7 percent on a year-to-year basis to $1.4 billion. Fourth-quarter 2012 GAAP diluted earnings per share were $1.23, an increase of 1 percent over the fourth quarter of 2011.

Apple is still one of the strong players in the race with Samsung and Google, but lately their profit didn't meet the expected. Their revenue was $41 billion to $43 billion, but they were expected to reach $45 billion. Meanwhile, Android is still growing rapidly.

This article talks about the organic milk shortages, that farmers can't buy enough food to feed their caws because the price for their food has been increased, as a result they give less nutrition to their caws and get less milk. But demand for organic milk is still high and in the article they will some suggestions how to solve that problem.

The demand for organic milk is greater than supply because the production cost of creating organic milk is greater than the revenue. The reason for the shortage is that the cost of organic grain and hay has gone up but the price farmers receive for milk has not. As a result farmers buy less grain and hay which lowers the production of milk. The low supply of organic milk than in turn increases the overall price. The solution for this issue would be to increase the price of income the farmers would receive for their milk. If the solution were applied, the farmers would pay more for organic grain and more milk would be produced and consumers would be satisfied.

This article from the economist is actually very interesting, it explains that cargo ships are being redesigned to be able to carry more cargo containers but at the same time burn less fuel or at least the same amount. This means that the ships will spend less time docking as they wont have to make as many trips back in forth. This in return generates more profit and total revenue.

This article talks about how lage companies like Starbucks and Google are evading tax in the UK by ensuring mae no profits, thereby avoiding corporate tax. These companiesmake billions in but " they ensured they made no profits through large royalty and other payments to offshore companies" (2012, Telegraph) There are understandaby many peopl who are upset about this and calling it unfair. It also undermines the profits of local companies. A solution thatis beng suggested is a sales tax. However many expertssa tha what te TNC's are doing is perfectly legal and said "corporation tax was a tax on activity."

The article talks about the affect of the imposing tax on medical devise industry, that is not profitable at all. The future of medicine will get worse, because they won't be able to buy advanced technology ect. By imposing tax on medical devise industry may cause a lot of problems, which are mentioned in the article.

Government price controls for groceries backfired in Venezuela. Although their aim was to make basic necessities available for everyone, the maximum price was so low that it prevented producers from collecting any revenue. As a result, producers began supplying less, causing widespread food shortages.

This article discusses the new Chevy volt hybrid and debates it's future. it can be said that the company, in regards to this car, is going to start benefiting from economies of scale as in the article it states that the production cost will become cheaper however it is obvious that the company is not producing at the minimum efficient scale as allegedly for each volt it sells, the company loses $49,000

Currently, the Chevy Volt costs $89,000 per car to produce. However, GM is selling the car at about $40,000, offering even more discounts in certain places to reel in customers. GM argues that in the long run, the production cost will decrease and begin to bring in profit.

This article is an excellent example of the concept of long term vs. short term decision making by a company. Right now, GM is losing massive amounts of money whenever they make and sell another Chevy Volt, but they hope the investment will pay off in the long run.