Micro Economics Shut Down Decision
The October, 2000 announcement that Nortel Networks would enter the customer relationship management (CRM) application market by acquiring Clarify for more than $2 billion in stock stunned the majority of people. The question on everyone's mind was, "How can a hardware giant succeed with a software business?" The answer, coming only 18 months after the acquisition closed, was that it couldn't.
Nortel purchased Clarify in its bid to become an eBusiness provider by extending its hardware Internet foundation product lines which include optical, local area and wireless Internet products by adding applications to manage eBusiness relationships that the Internet facilitates. Three quarters of Nortel's customers were large communications carriers such as MCI and AT&T, newer carriers like Qwest, or wireless carriers such as Sprint PCS. The rest were corporations. Nortel made the bet that company's spending a billion dollars on its hardware infrastructure would also be interested in its software applications.
Nortel expected Clarify to bring it further penetration into the customer interaction center (CIC) market, an area in which the company had a poor reputation spurred by a poor product release of its NT-based Symposium Call Center server that suffered from scalability and reliability issues. Nortel also wanted to bring its prospects and customers with a prepackaged, lower-cost solution with an integrated CRM/CIC product. Clarify provided Nortel with a professional services organization for CICs that it did not have, but needed to be successful in the CIC area.
The acquisition for Clarify was also in response to competitor initiatives. Lucent had recently purchased CRM supplier Mosaix and had formed a partnership with Clarify's CRM rival, Siebel Systems. Cisco had entered the voice-networking market with the purchase of GeoTel for call center management and a partnership with WebLine for customer...
Microeconomics The concept of marginal utility reflects the additional utility that a buyer receives for an additional unit of a good. In this example, Amy is spending an extra dollar if she buys either a bracelet or a soda. If she has an extra dollar, however, she is likely to purchase a soda. This is because the marginal utility of a soda at this point is 40, whereas an extra bracelet
Production and Market Competition Microeconomics Module 3 - Case Production, Costs, Profits Cost Profit in assignment, review reference material: Rittenberg Libby T. Tregarthen. (2009). Chapter 8: Production Costs. Sections 1-4 Principles Microeconomics. Choice of factors of production A firm's choice of factors of production to change will be determined by likely outcomes of the change. In the short run, a firm can only increase its variable cost. The required consideration in this case
Production, Costs, And Profits Business is booming at a local fast food restaurant. It is contemplating adding a new grill and French fry machine, but the day supervisor suggests simply adding more workers. How should the manager decide which alternative to pursue? What would happen if too much labor is hired without an addition to capital? Explain using economic terms. It is difficult to answer this question without understanding the current capacity
Microecon Financing in the Manufacturing Sector 50,000 workers = 200,000 units Avg. wage = $80/day Output price = $25/unit Other variable costs = $400,000 Total Variable Costs = 50,000 x $80 + $400,000 = $4,400,000 Average Variable Costs = $4,400,000/200,000 = $ Average Total Costs = ($4,400,000 + $1,000,000)/200,000 = $ or ($4,400,000 + $3,000,000)/200,000 = $ Worker Productivity = 200,000/50,000 = 4 With $1,000,000/day in fixed costs at current output and productivity levels, the firm is operating at a loss
Capitalism is predicated on the principles of "Creative Destruction" where the loss of one item or industry, leads to the creation of another more beneficial product or industry. This principle has both destroyed and given rise to numerous industries throughout the world. For example, in the early 1900's, farming gave way to the industrialization of American made goods. Producers went from the farm lands to the assembly line of manufacturers.
Capitalism is predicated on the principles of "Creative Destruction" where the loss of one item or industry, leads to the creation of another more beneficial product or industry. This principle has both destroyed and given rise to numerous industries throughout the world. For example, in the early 1900's, farming gave way to the industrialization of American made goods. Producers went from the farm lands to the assembly line of manufacturers.
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