Wednesday, May 20, 2020

Explain, and Illustrate Using Graphs, Whether You Think a...

Explain, and illustrate using graphs, whether you think a perfectly competitive industry or a monopoly industry leads to more efficient outcomes for an economy. RESEARCH ESSAY Microeconomics is defined as a study of how economic decisions are made by individuals and groups along with the range of factors affecting those decisions. In relevance to this, the analysis of perfect competition and monopoly regarding efficiency is considered one of the most core basis to the understanding of Microeconomics. This paper argues that a perfectly competitive industry leads to more efficient outcomes for an economy than a monopoly does. In this essay, I will first define the concept of two market structure types and then go on to explore how they†¦show more content†¦So, in this case, perfectly competitive firms can also obtain technical efficiency. As seen in the right graph, with the lack of competition, firms in monopoly can earn great economic profits since they charge a much higher price compared to perfectly competitive firms. According to the diagram, there is allocative inefficiency since monopoly price is higher than MC; firms are producing too little while offering a too high price. In other words, with monopolists, â€Å"resources are under-allocated† to the production of their product (Layton, Robinson and Tucker 2009, 223). Along with this, monopoly firms are not producing the level of outputs where ATC is at its minimum point due to the assistance of high barriers to entry. Thus, firms in monopoly once again fail to gain technical efficiency. Considering the previous discussion, the next section of this paper will explore how the industries of perfect competition and monopoly affect consumer surplus and producer surplus and hence, economic welfare as a whole. In brief, consumer surplus is the difference between the maximum price a consumer is willing to pay and the actual price paid. Producer surplus is the difference between the minimum price a firm is willing to charge and the actual price charged. Below are the two graphs illustrating the differences in economic welfare between the two market structures: Perfect competition Monopoly Within perfect competition industry,Show MoreRelatedSuggestive Solutions Guide to Past Exam Papers5119 Words   |  21 Pagesare more relevant to our current courses as we have used the same textbook, course outline and study guide. Please ignore the multiplier questions as those questions are not relevant for our ï ¬ nal exam. I also encourage my students to go through all those elive sessions (recorded by myself). These elive sessions will refresh your memory as well as help you to understand the critical concepts in Economics. Please note that there is no harm of trying to attempt the past exam papers as much as you canRead MoreSupply and Demand and Study Guide20292 Words   |  82 Pagessupply 17 Elasticity 21 Market applications 25 The behaviour of firms and costs 31 Perfect competition 37 Monopoly 43 Monopolistic competition 47 Oligopoly 51 Economic performance, market failure and government intervention 55 Appendix: Guide to working successfully through the unit 63 INTRODUCTION Welcome to Microeconomics 1. In this unit of study, we intend to introduce you to the particular principles, language, techniques and insights associated with an economic perspective of theRead MoreSupply and Demand and Key Question16305 Words   |  66 PagesMcConnell, Brue, Barbiero 11th Canadian edition Microeconomics ANSWERS TO END-OF-CHAPTER AND APPENDIX QUESTIONS Chapter 1 1-3 (Key Question) Cite three examples of recent decisions that you made in which you, at least implicitly, weighed marginal costs and marginal benefits. Student answers will vary, but may include the decision to come to class, to skip breakfast to get a few extra minutes of sleep, to attend college or university, or to make a purchase. Marginal benefits of attendingRead MoreBusiness Economics Solutions Mba12192 Words   |  49 PagesBusiness Economics MBA LIMITS, CHOICES AND SCARCITY ANSWERS TO END-OF-CHAPTER QUESTIONS 2-1 Explain this statement: â€Å"If resources were unlimited and freely available, there would be no subject called economics.† If resources were unlimited and freely available, making choices would not be necessary. Every person could have as much as they wanted of any good or service. Economics, the science of choice, would be unnecessary. 2-2 Comment on the following statement from a newspaperRead MoreExercises for Microeconomics17876 Words   |  72 PagesTextbook) EXPLAIN THE FOLLOWINGTERMS ââ€"Ž Average benefit ââ€"Ž Average cost ââ€"Ž Economic surplus ââ€"Ž Economics ââ€"Ž Microeconomics ââ€"Ž Macroeconomics ââ€"Ž Marginal benefit ââ€"Ž Marginal cost ââ€"Ž Normative economics ââ€"Ž Positive economics ââ€"Ž Rational person ââ€"Ž Sunk cost ââ€"Ž Opportunity cost ââ€"Ž Absolute advantage ââ€"Ž Comparative advantage ââ€"Ž Attainable point ââ€"Ž Unattainable point ââ€"Ž Efficient point ââ€"Ž Inefficient point ââ€"Ž Production possibilities curve REVIEW QUESTIONS 1. The most you would be willingRead MoreLow Cost Strategies a Failed Business Model?9157 Words   |  37 Pages Operations, and Logistics, and Director of the Aerospace Policy Research Center School of Public Policy George Mason University (MS 3C6) Fairfax, VA 22030, USA. E-mail: kbutton@gmu.edu â€Å"You fucking academic eggheads! You don t know shit. You can t deregulate this industry. You re going to wreck it. You don t know a goddamn thing!† Robert L. Crandall, CEO American Airlines, addressing a Senate lawyer in 1977 â€Å"If the Wright brothers were alive today Wilbur would have to fire Orville to reduceRead MoreFactors Affecting Market Share of Retailers15007 Words   |  61 Pagesas a whole. According to Berkowitz (1997), Market share is the ratio of the firm’s sales revenues or unit sales to those of the industry (competitors plus the firm itself). Companies often pursue a market share objectives when industry sales are flat or declining and they want to get a larger share. Anheuser Busch has adopted these objectives in the brewing industry. According to August A. Busch III, the company’s chief executive officer â€Å"we want 50 percent of the (beer) market in the mid-1990s†Read MoreEconomics - Tutorial Answers26233 Words   |  105 PagesParkin) Review Question 1 (pp. 4) List some examples of scarcity in Australia today. An example of scarcity at the economy-wide level would be people with lower incomes being forced to choose between food and petrol due to high prices for both. An example of scarcity at an individual level would be a person unable to afford both life-saving (or life-enhancing) medicine and food. At a more student-oriented level, examples of scarcity include not enough income to afford both tuition and a nice car, andRead MoreVarian Solution153645 Words   |  615 Pagesconsumer will be indiï ¬â‚¬erent between having zero or one apartment. You should also observe that when demand curves have the â€Å"staircase† shape used here, there will typically be a range of prices where supply equals demand. Thus we will ask for the the highest and lowest price in the range. 1.1 (3) Suppose that we have 8 people who want to rent an apartment. Their reservation prices are given below. (To keep the numbers small, think of these numbers as being daily rent payments.) Person Price = ARead MoreStrategy Safari by Mintzberg71628 Words   |  287 Pagescan past every cage until they come to the one called WAYOUT, but the nicest people go straight to the animal they love the most, and stay there. —A. A. Milne, in the Introduction to Winnie-The-Pooh We dedicate this book to such people who are more interested in open fields than closed cages. CONTENTS Embarkation 1 And Over Here, Ladies and Gentlemen: The Strategic Management Beast 2 The Design School Strategy Formation as a Process of Conception 3 The Planning School Strategy Formation

Monday, May 18, 2020

Globalization And The Lack Of Culture Clashes - 957 Words

Globalization and the Lack of Culture Clashes From an economic standpoint, globalization is vital to a strong fiscal foundation in any given nation. It allows for firms to engage in trade in order to obtain both absolute and comparative advantages, meaning nations have the ability to trade in order to obtain goods or services at the lowest opportunity cost and/or using the least amount of inputs. Simply put, globalization is a vital aspect of a prosperous nation. With globalization comes exposure to differing cultures, which can have any number of results. While it is true that drastically diverse cultures may have some difficulties fusing together, the idea that a culture â€Å"clash† caused by globalization is inevitable is both outdated and naà ¯ve. Assuming that there will be some sort of difficulties with adjusting when two completely different cultures meet is, however, sensible. As the New York Times reading stated, there are some wide gaps in the way business is executed in different parts of the world, which can result in complications when it comes to the blending of the ways of operation. One large difference is discovered in workplace leadership or management, as described in this quote: â€Å"†¦what seems egalitarian in one country may appear authoritarian in the next. ‘What people from that background think is empowerment†¦is not empowerment in other countries, like in the U.S.’† In this instance, the perspectives of the individuals in the cultures described simplyShow MoreRelated The Essence of Teamwork Essay1442 Words   |  6 Pagesand approach for which they are mutually accountable.† (Katzenbach and Smith, 1993) In today’s society, with so much emphasis on pride and personal achievement, the concept of teamwork seems to be old-fashioned or basic. Clashes of personality, different perspectives and cultures prescribe one to develop a natural inclination toward individual work and an unhealthy reluctance towards team work. Nevertheless, teamwork, if managed properly, can be a source in which complexity is simplified, a problemRead MoreThe Essence of Teamwork1460 Words   |  6 Pagesapproach for which they are mutually accountable. (Katzenbach and Smith, 1993) In todays society, with so much emphasis on pride and personal achievement, the concept of teamwork seems to be old-fashioned or basic. Clashes of personality, different perspectives and cultures prescribe one to develop a natural inclination toward individual work and an unhealthy reluctance towards team work. Nevertheless, teamwork, if managed properly, can be a source in which complexity is simplified, a problemRead MoreHow Does Globalization Impact Culture?2264 Words   |  10 PagesWhat is a culture and why are there so many definitions of a culture? Does it matter? Is it rapidly changing? An how does globalization impact a culture? During my research I have found that globalization can affect people s root cultures, values, and traditions. People are becoming the citizens of the world rather their own countries. This tremendous flow of immigration or globalization for other purposes have, unfortunately, raised many problems and implications on education, workplaces, and communicationsRead MoreImpact Of Ethnocentrism On Foreign Areas And Variable Responses Of Economies At The Same Time937 Words   |  4 PagesWith the globalization of economy, people fr om diverse social backgrounds closely congregate for negotiation, endeavoring to build free markets which assist everyone to run business with each other faster and easier. Except for language barriers, cultural differences could be considerable aspects to be discussed and deliberated to facilitate cultivating friendly and sustainable relationships. However, a prevalent phenomenon about gauging other cultures with caliber of their own inclination namedRead MoreVitro Corning1728 Words   |  7 Pagesprincipal cause of the alliance s failure. Therefore, lack of fully understanding Mexico culture is the key predisposition of Corning s strategy. What is culture? One of the well-accepted definitions is given by Goodenough (1971), who has defined culture as a set of beliefs or standards, shared by a group of people, which help the individual decide what is, what can be, how to feel, what to do and how to go about doing it. The main cultural clashes between two companies are discussed as follow: DifferentRead MoreEssay about Policies and Politics in Madagascar1182 Words   |  5 Pagesfree market further led to information sharing of Madagascar with the rest of the world. One of the key results of this was the introduction of arms in the country and emergence of social evils such as prostitutions. In addition to this, there was culture diffusion for the Madagascar community members and the trade partners. Madagascar had a well established base of political instability, defined by constant political agendas that were always conflicting. As a result of this, any kind of reformsRead MoreToyotas Future Appear Confused1309 Words   |  6 Pagescultural variation, stereotypic nature, and the global view of how multinationals conduct business. Culture is the main determinant for companies, such as Toyota, that have operations globally. The American way of doing things differs with that of Japan and Toyota’s efforts to recall its cars created a negative perspective among the Americans (Valdes-Dapena, â€Å"Toyota Recall: 2.3 Million Cars†). Clearly, culture defines people and how they conduct operations in the global platform, thus, the need for collectiveRead MoreEffect of Cultural Globalization in Intercultural Communication1964 Words   |  8 PagesEffect of Cultural Globalization in Intercultural Communication A. Background Its almost always about international trade, foreign investment, capital flow and all the rest. But what about culture, identity, traditions and ways of life; do these things amount to anything? True, globalization has various manifestations. If viewed strictly from economic terms, then the debate delves into trade barriers, protectionism and tariffs. Powerful countries demand that smaller countries break down allRead MoreThe Role Of Organizational Leadership And Human Resource Professionals1342 Words   |  6 PagesHuman Resource professionals must implement a proactive strategy to unify two organization’s unique and beneficial culture elements during a merger. According to Cartwright Cooper (1993), â€Å"cultural incompatibility is†¦a cause for poor merger performance. Rather than integrating, the two cultures collided, which†¦resulted in low morale, poor work quality, and declining financial performance...† This paper will focus on the challenges of mergers; discuss the roles of organizational leadership andRead MoreHow the Concept of Diversity Rises with Globalization1285 Words   |  6 Pagesrace, sexual orientation, spiritual practice, and public assistance status (Etsy,et al. 1995). The idea of diversity emerged when globalisation came into the picture in 1990-91 (Bhatia, 2008). As globalization began to affect organisations, there was a coverage of workplace from diverse countries, cultures, values, and styles that presented tremendous opportunities as well as challenges (Bhatia, 2008). Organisations can have the ultimate lead in the market place if effective human resources are in

Wednesday, May 6, 2020

Differences Between Islam And Christianity - 871 Words

1. The question of Origin. i. Of the many ways in which Islam and Christianity differ, answering the question of origin remains primarily the same as it does amongst all three of the monotheistic religions (Islam, Christianity and Judaism) wherein a single infinite God created the heavens and earth. ii. Though there is considerable contrast between how Islam and Christianity present the creation story both the Bible and the Qur’an textually agree all was created in six days (Qur’an 10:3; Genesis 1:1-31, New International Version), however, the Bible provides a complete cohesive narration in the first two chapters of Genesis, while the Qur’an presents a fragmented picture strewn about various passages. Of the more prominent differences in the story of creation between Islam and Christianity is that Christians believe man was created by God on earth in the Garden of Eden, and Islam professes man was created in Janna, the Muslim equivalent to heaven, and was then banished to earth (Qurâ₠¬â„¢an 2:36). (Word count 155) 2. The question of Identity. i. Islamic religious identity as presented in the Qur’an is often synonymous with how Muslims are culturally identified. Islam requires its adherents to follow five basic tenants of their faith, which allow for no variation in application and in turn act as the guiding principles by which they are to live their lives. The Five Pillars are the recitation of the Muslim confession of faith (Shahada), daily prayers (Salat), to fastShow MoreRelatedDifferences Between Christianity And Islam Essay1484 Words   |  6 PagesIn this paper, the author analyzes the similarities and differences between Christianity and Islam and how to apply this learning to optimize the health outcomes of patients whose belief systems differ from that of the health care provider. The worldviews of both religions are researched, generating a comparison of their different belief systems. It is confirmed that critical components of religion such as prayer, scripture reading, connection to spirituality an d meditation can be used as religiousRead MoreDifferences Between Islam And Christianity944 Words   |  4 Pages# 01 Religion 101 Islam and Christianity are wide spread religions in the world. Contrast based on five pillars of Islam and Christianity rituals. In this paper I will explain their differences and similarities based on Prothero and Paden, using paradigms â€Å"rituals†. The concept of rituals are more important in understanding religion. Prothero admits that Christianity is the great religion in the world this is not mean that Islam is not popular religion in fact he compare Islam with fast growing religionRead MoreDifferences Between Christianity And Islam1152 Words   |  5 PagesCommonalities, Differences, and Consequences Judaism, Christianity, and Islam are among the best known and most widely practiced religions today, and have had enormous cultural, ideological, and historical impact on the peoples of every continent. Arguably more so than any other ideological systems, Abrahamic religion has been among the most influential forces in human history. The shared elements of their traditions have allowed them to develop in part through a multi-faceted dialogue with eachRead MoreDifferences Between Islam And Christianity941 Words   |  4 PagesTwo religions may share some common terminology and theology. Islam and Christianity are both different in their own way. Islam represents an oriented religion with Christianity faith is based on the shed of blood of Christ. Religious traditions also embrace the idea of human dignity in the biblical idea of the creation of all human beings in the image of God. Mohammed founded Islam in 610 A.D, were people worshipping multiple God’s. During, a time of pol ytheism Mohammed had a vision; being perceivedRead MoreDifferences Between Christianity And Islam1838 Words   |  8 PagesChristianity and Islam are the two religions with great similarities of concepts while minute differences within both religions. Christianity having being a religion since last 2000 years obviously was a religion that dwelled as a â€Å"Soft Monotheism† meaning the concept of Trinity: presence of three personalities within one personality of God. While, it’s existence was related to the â€Å"Hard Monotheism†: only one God in the form of Judaism. Similarly having borrowed from both the religions, Islam inRead MoreDifferences Between Christianity And Islam2708 Words   |  11 PagesReligious Differences in Marriage From the past to the present, society has valued the partnership between two people and a spiritual God and/or leader. The unique union/partnership, also known as marriage, has been and continues to be a practice among religions of all kinds. The one common trait that each religion shares is the spiritual agreement and commitment to promise one’s self to another person forever in sickness and in health. Although the basic idea of marriage is shared, many religionsRead MoreThe Differences Between Christianity And Islam Essay1937 Words   |  8 Pagesinterested in knowing more about the Christianity and Islam religion-the largest religions in the word, both having similarities and differences between them. In this letter I will be presenting their key beliefs and practices, and also I will be explaining the significance of salvation for these two religions. Islam religion was established by Muhammad in the seventh century, and its believers are called Muslims . They follow the Islam practices - the Five Pillars of Islam, and the Quran - the word of GodRead MoreDifferences Between Christianity And Islam2108 Words   |  9 PagesBeing religious carries many aspects within a being that are expressed through internal and external practices reflecting teachings and beliefs of a religion. Both Catholicism and Islam have a large number of people of the faith and thus both religious practices are witnessed almost everywhere expressing their morals and values. These especially include the formal rituals carried out on sacred times for each religion, the presence of places of worship; Churches and Mosques and actions of such religiousRead MoreDifferences Between Christianity And Islam1444 Words   |  6 Pages Although our world is filled with diverse religious backgrounds, â€Å"humanity forms but one community† (â€Å"Nostra Aetate†). There is an indisputable bond between humans, regardless of the beliefs they hold. Christianity and Islam are two religious traditions dominating the world, accounting for over 55% of the population (â€Å"Common Word†). While they greatly differ, the two have undeniable similarities that offer a common ground for the two traditions to unite. It is necessary for these two traditionsRead MoreSimilarities And Differences Between Christianity And Islam744 Words   |  3 PagesOne of the main differences between Christianity and Islam is the relationship with both religions and Jesus Christ. The teachings of each religion follow the ideology of said religion. The way the Qur’an and the Bible address the topic of Jesus Christ is complex as there are many similarities, yet there is a significant difference that causes conflict between the two religions. The question of was Jesus Christ the son of God is what often causes conflict between the religions. Some say that the

Business Plan For A Car Service With An Employee Base Of...

Introduction Bradley Stonefield you have indicated that you are looking to open a small business in Austin, TX. The industry you would like to break into is the limousine service with an employee base of approximately twenty-five persons for your first year. We have put together a business plan that includes a market evaluation of compensation, a compensation structure, a market position, a performance incentive pay, compensation / benefits strategy, and the laws that will be relative to benefits and pay for your company. These suggestions will help you get started in business venture and help you get you started for success. Market Evaluation of Compensation The Austin, Texas area limousine drivers earn an average hourly rate of $11.80 per hour starting out with overtime at the rate of time plus half. During the first several years on the job limousine drivers should expect about an eight to ten percent increase in pay based on performance. It is recommended to have a yearly increase based on individual performance and profitability of the company not necessarily that wage increase per year must be a minimum of eight percent. Although pay increases steadily for the first twenty years in this service, it begins to decline dramatically after twenty. The more experience the driver has the higher the starting hourly rate should be with a top out pay of $20.00 per hour. As a part of the compensation drivers should earn an average of about $5.00 per hour in the form ofShow MoreRelatedCar Wash Business Plan9082 Words   |  37 PagesThe Dirt Buster was designed by entrepreneurs wishing to provide a high q uality car wash service in a virtually untapped market. Because new construction is necessary, a large amount of initial capital is required for this venture . * EXECUTIVE SUMMARY * MARKET/MARKETING * BACKGROUND AND PURPOSE * MARKET ANALYSIS * POSITION * FINANCIAL DATA * ORGANIZATION AND MANAGEMENT * MISCELLANEOUS ISSUES * OWNERSHIP * CRITICAL RISKS AND PROBLEMS: DESCRIPTIONRead MoreGreyhound Bus Company3618 Words   |  15 PagesGreyhounds web site in 2001 they had more then twenty five million passengers aboard their bus lines and consolidated revenue was $1,022.4 million. Greyhounds fleet consists of more then 2,300 buses which arrive and depart from one hundred and twelve company-operated terminals and approximately one thousand seven hundred agency-operated terminals. In 2001, the number of employees nationwide on payroll was twelve thousand and of that amount, approximately thirty six percent are drivers. GreyhoundRead MoreBest Buy Research Paper4071 Words   |  17 Pagescombination of great prices and excellent service, thus building a strong customer base, which quickly prompted an expansion into home appliances and video products. The eighties prompted change as well as the opening of Best Buys first superstore. During 1983, a new corporate name was approved and the Sound of Music Company became known as Best Buy Co., Inc. With mounting consumer support Best Buy continued its road to expansion by opening an additional five stores. In 1985, the newly named companyRead More Research on Best Buy Co. Essay examples3955 Words   |  16 Pagescombination of great prices and excellent service, thus building a strong customer base, which quickly prompted an expansion into home appliances and video products. The eighties prompted change as well as the opening of Best Buy’s first superstore. During 1983, a new corporate name was approved and the Sound of Music Company became known as Best Buy Co., Inc. With mounting consumer support Best Buy continued its road to expansion by opening an additional five stores. In 1985, the newly named companyRead MoreIce Cream5598 Words   |  23 PagesSAMPLE BUSINESS PLAN Fast ‘n Fresh Premium Ice Cream Parlor 858 Success Avenue Valley City, CA 93xxx 559-000-0000 (T) – 559 – 000-0000 (F) Prepared By J. B. Entrepreneur Submitted To: Valley City National Bank 2461 Money Avenue Valley City, CA 93xxx Foreword This sample business plan was prepared by Craig Gonzales, undergraduate student, and by Dewey E. Johnson, Ph.D., Professor of Management and Director, Small Business Institute, Sid CraigRead MoreOrganizational Technology Plan for Disney4238 Words   |  17 PagesRunning head: ORGANIZATIONAL TECHNOLOGY PLAN FOR DISNEY Organizational Technology Plan for Disney Author Not Disclosed University of Phoenix Human Factors in Technology TEC/401 Lorelie Kaid Apr 03, 2006 Organizational Technology Plan for Disney Technology has changed the way we do business in America, and in the world. The marketplace tempo and pace has quickened from a light trot to a sprint, and the global consumer has placed new demands on corporations worldwide. How companies haveRead MoreLaundry Shop- Business plan6416 Words   |  26 Pageshours a day at work, or have children and families to look after, or both. Shiners Laundry Service will target everyone - the young, the families and the elderly. We recognise the importance of conserving a persons most valuable asset - time - whilst providing quality services and products that will meet the needs and wants of our customers. There are many groups of individuals in the Sydney Central Business District; a concentration of high disposable income families who can afford to pay for RestorationRead MoreValue Proposition of Maruti Suzuki8102 Words   |  33 Pageswide range of modern, high quality fuel efficient vehicles in order to meet the need of different customers, both in domestic and export markets. The Company Vision: We must be an internationally competitive company in terms of our products and services. We must retain our leadership in India and should also aspire to be among the global players. Their focus is on: †¢ Building a continuously improving organisation adaptable to quick changes †¢ Providing value and satisfaction to the customer †¢ AligningRead MoreTravel Tourist Marketing Plan5278 Words   |  22 PagesVu Hoang Travel Tourist Marketing Plan MBA 652 Professor Julia Cronin-Gilmore Bellevue University Winter 2011 Sunlight Travel Tourist Marketing Plan 1. Executive Summary This document contains the marketing plan for an international travel of Sunlight Travel Tourist, a company located in California that offers a travel packages with upscale accommodations, gourmet foods to middle class and wealthy customers who seek to travel internationally. The tours will educate customersRead MoreGoogle Case Study14862 Words   |  60 PagesSWOT Analysis: SWOT analysis is used to strategically plan and identify a company?s internal strengths and weaknesses and the external environment that creates opportunities and threats. Company?s use their external opportunities to reinforce internal strengths and improve internal weaknesses in an attempt to achieve organization goals. The internal factors of strengths and weaknesses are measured by its impact on the goals and objectives of the organization. A companys strengths are its resources

Demand Media Coca Cola

Questions: 1. Task 1: Selection of CompaniesAs a consultant, you have been asked to report upon the financial performance of any company from the following business sectors: Consumer goods, Engineering, Health, Leisure, Technology and Telecoms. From their respective annual report or other suitable financial databases (such as Financial Analysis Made Easy-FAME; Morning Star; Osiris; etc.) obtain relevant financial information for your chosen companies for the last 5 years.2. Task 2 : Extraction of ratiosFrom above financial platforms, extract the following financial ratios (or the necessary information or variables to calculate the ratios) for the company over a period of 5 years as follows: Profitibility Liquidity Working capital management Capital structure Stock market performance Task 3: Discussion of ratiosEvaluate and analyse the performance of the company using the ratios extracted over the period under consideration (use graphs of the ratios extracted to support your analysis). Recom mend whether the company would be a good investment (with the necessary justification)Task 4: Weaknesses of RatiosWhat are the main weaknesses associated with ratio analysis? Answers: Task I Financial Accounting is also known as Management Accounting. As the Business grew the complexity also grows due to which it become necessary to maintain proper accounting of the Company. For which Financial Accounting becomes necessary. It includes preparation of Ledgers, trial Balance, Profit and Loss Account and Balance Sheet by recording, classifying the entries, summarizing the entries through trial balance and then interpreting it in Profit and Loss Account and Balance Sheet of the Company. It covers all the services and works of the accounts departments and manages all the functions of the Financial Accounts departments. It helps in the decision making activity as it consider what is good and what is unfavorable towards the growth of the Company. It helps the management in analysis the financial of the Company and to take the Quick and intelligent decisions by this proper accounting prepared by the help of the Financial Management. Management Accounting helps the Management in the Planning, Controlling and decision making activities of the Company. [Anglo American Council of Productivity, 1950] Scope of Financial Accounting: Includes the preparation of Ledger Accounts:- Ledger accounts help the Company to maintain the proper accounting of the Company with whom the transactions have been done. It includes Journal entries of the parties. By maintain the ledgers all the entries are known and there is no chance to forget to do the entries. It will help to maintain the equal debit and credit side of the Accounts. Trial Balance:- Trial balance is prepared to check whether the entries have been passed correctly in the ledger account. When the trial balance of company matches it is assumed that the accounts have been prepared correctly. Profit Loss Account:- Profit and Loss Account is prepared to calculate he profit earned by the Company during the year by deducting the Expenses from the revenue and also helps in calculation of the tax to be paid by the Company during the year. It presents the fair and true picture of the financial position of the Company. By ascertain g the Profit and loss Account Company comes to know how it is doing and on its basis it starts doing the projected work. In this Account the Expenses and the revenue earned by the Company is shown, depreciation charged on the assets and tax paid all the financials are shown and given on the Profit and Loss account. Balance Sheet:- Balance sheets indicate the Assets and Liabilities of the Company. It indicates the total Share capital, Reserves surplus, debtors, Creditors, investments, Inventories, Cash and Bank Balance of the Company Inventory Control/ Budgetary Control:- It is the branch of the cost accounting as it helps to control the cost by proper decision making activity and helps to make the projected budgets for the future of the Company which will have to grow the company in order to achieve the targets of the Company. Forecasting of the projects for the Company:- By forecasting the projects through the help of graphs, statistics the Company can easily achieve the gap between the projected results and current results. Forecasting helps to decide what the company can do for the growth of the Company. It helps the Company to compare the Company financial position of the Company with the past financial analysis of the Company. Forecasting helps in growth of the Company Control the Cost of the products by effective implementation of the Cost techniques:- By financial Accounting implementation the Cost techniques are developed by the help of which per unit cost is ascertained and the cost can be reduced on the basis of the cost sheet and company should develop which products can be come to known to the Company. Helps in determination and comparisons of the Company with the last year by help of ratios: Profitability Ratio; Liquidity Ration; Price Earnings Ratio; Solvency Ratio Leverage Ratio Investment Analysis Ratio Efficiency Ratio Includes internal Audit to be conducted internally in the offices of the Company by which any loopholes of the Company can easily be detected by the Company can be solved within the time and helps to maintain the proper accounts. By conducting the internal Audit the Financial position of the Company can be ascertain in true and fair sense. Qualities of Management Accounting:- In financial statement the relevant information is shown that is necessary for the ascertainment of the financial position of the Company. It saves the time as the least important data are separated from the important data. It becomes easy to understand the Financial Data of the Company as all the figures are shown in the tabular form which is attractive and can easily be understandable to all the persons easily. One can rely on the financial data presented as it helps in ascertaining the true and fair position of the Company. It helps in checking whether any wrong entry is not done in the financial books of the Company. It becomes easier to compare the financial data of the current year with the previous year and if any deviation finds in the work it can easily be known can easily be solved on time, in order to get the expected financial position of the Company. By the financial statements prepared as per the financial accounting the completeness is shown in the work as it can easily be read by any one and all the details come under the Profit and Loss Account and in the balance sheet of the Company. It help to make the work easy and fast within time as the data are inserted in the table and can be done easily by using the formulas. Limitations of the Management Accounting: It is wide process and includes many stages to be covered to get the accurate financial position of the Company. If any of the financial detail is given wrong then whole of the Accounting will be done wrong and will be misleading. It includes proper knowledge of the Financial Accounting; lack of the knowledge will create hurdles in this Accounting process. Brief Back Ground of Coca Cola Coca Cola was incorporated by Dr. John Styth Pemberton. Mr. John Styth Pemberton came in 1869 from the Atlanta from Columbus, Georgia. Pemberton developed a laboratory in 1885 for the preparation of Hair dyes and drink beverages. Mr. Pat Watters, partner of Mr. Pemberton cited a Coca-Cola label for Coca Cola drinks "makes not only a delicious ... and invigorating beverage ... but a valuable Brain Tonic and a cure for all nervous affections." from the year 1887. Coca Cola was not so well known and was failure during the beginning of the year. Due to illness and failure business Mr. Pemberton died, during the year 1891 Mr. Asa G. Candler owned the enterprise by paying a cost of $2,300. Mr. Candler and his two lawyers started doing advertising and publicity of this brand. They started the business in eight other places for the Growth and expansion of the Company and to build the brand of the Coca Cola. During his tenure the Coca Cola become popular in the public. The marketing of the Coca Cola was not properly done by Mr. Pemberton, so the first marketing effort was done by distributing coupons for free samples of the beverage. This is also followed by the advertising in the newspaper and also promotional items well also distributed during the promotion of the Beverages. Today Coca Cola is world first soft drink maker and selling around 1.3 billion beverage every day. It headquarter is situated in Atlanta. Coca-Cola is engaged in making four types of the Soft drinks: Coca Cola Diet Coke Fanta Sprite Coco Cola is known by the short name Coke. Today it is famous by this word. Company is also engaged in making Carbonated beverages like: Fresca, Barqs, Cherry, vanilla Coke, Soft drinks, Juices, Coffees, bottle waters etc. Tag lines used with the Coca Cola are: Coke is it, during the year 1980 Cant Beat the feeling, In 1993 The Pause that Refreshes, during 1929 Open happiness during the year 2009 Coca Cola is the best beverage and well known all over the world. Graph showing Coca Cola net income and EBITA over the past years Company had earned the income which can be understand by the help of the chart as given below for the year 2010, 2011,2012,2013 and 2014 Year Net Income 2010-12 11809 2011-12 8572 2012-12 9019 2013-12 7098 2014-12 6884 As it is shown in the graph the Company is moving upwards and earning profits in its financial year. It shows that the Company is engaged in earning the profits and can earn profits easily by increase the production and marketing of the Product. EBITA Presentation Year EBITA 2010-12 16419 2011-12 13180 2012-12 14188 2013-12 13917 2014-12 11784 The financial position of the Company is strong and Company is doing its business day by day. The main points that the Company has focused on are as follows:- Customer oriented :- Company focused on the Customers desires and demands to increases its demand and maintains its goodwill in the market all over the world. By focusing on the customers the Company will be able to earn the profit and to increases it goodwill of the Company. It will help the Company to concentrate the desires and to produce the product as per the demand of the customer. Product packaging:- Company highly concentrates on the packaging of the Product to attract as many consumers as it can. As the attractive packaging will help to increase the consumer of the product. Proper packaging helps the Company to sell the product with safety and good attractive packaging helps the Company to avoid the wastage of the drinks of the Company. Customer satisfaction:- Coca Cola also focuses on the Customers queries in order to satisfy them by providing them appropriate answers to the queries raised by the Customers. As the Customer is satisfied they tend to purchase the drinks again. Happy Customer always comes back again to buy the product. They even add new consumers to the Company and bring the brand and fame of the Company. TASK II Ratios of the Company: Ratio Analysis of the Company in year 2010-12, 2011-12, 2012-12, 2013-12 and 2014-12 are as follows: Profitability 2010-12 2011-12 2012-12 2013-12 2014-12 Gross Margin % 63.9 60.9 60.3 60.7 61.1 Operating Margin % 24.1 21.8 22.4 21.8 21.1 Net Margin% 33.63 18.42 18.78 18.32 15.43 Return on Equity % 42.32 27.37 28 26.03 22.36 Return on Assets% 19.42 11.21 10.86 9.74 7.8 Liquidity/Financial Health Current Ratio 1.17 1.05 1.09 1.13 1.02 Quick Ratio 0.85 0.78 0.77 0.9 0.81 Debt/Equity 0.45 0.43 0.45 0.58 0.68 Financial Leverage 2.35 2.53 2.63 2.71 3.04 Working Capital Management Days Sales Outstanding 42.55 36.66 36.76 37.52 37.05 Days Inventory 71.95 57.33 60.88 64.8 65.06 Payables Period 47.40 40.67 39.66 38.66 41.03 Cash Conversion Cycle 67.09 53.52 58.00 63.66 61.08 Receivables Turnover 8.58 9.96 9.92 9.73 9.85 Inventory Turnover 5.07 6.34 6.00 5.63 5.61 Fixed Assets Turnover 2.89 3.14 3.26 3.18 3.11 Asset Turnover 0.58 0.61 0.58 0.53 0.51 PE ratio 28.1 Year KO Beverages-Soft drink SP 500 2011 9.24 9040 2110 2012 6.53 10.84 16.00 2013 17.05 17.39 32.39 2014 5.16 8.52 13.69 2015 4.88 9.93 1.38 Graph showing Coca Cola Stock Market Performance In the above table it shows the stock performance of the Coca Cola Beverages soft drinks has been increases during the year from $8.52 while the KO decreases to $4.88K from $5.16K. As on the basis of the Ratios the performance of the Company can be easily ascertained that the Company is doing well in the business Gross Margin increases to 61.1% from 60.7% the Gross Operating Margin grows from 24.1 to 20.10 it means that the Company is making higher profits, if the Operating ratio goes high than it is said that the Company is not doing well while in Coca Cola the Operating Ratio decreases from the last year. A net profit margin indicates that if the margin is high then previous year then there are adequate returns for the owners of the Company while in case of low margin the returns inadequate. In this Company the return falls from 18.32% to 15.43%. As the return on equity declines from 26.03 to 22.36% it means this year the return to the stakeholder will be less as Compared last years. Current Ratio indicates that the ability of the Company to meets its short term requirements that arise during the course of the business. The ideal current ratio is 2:1. It is believe that there should be double of Current Assets towards the Current Liabilities of the Company, so that it can easily arrange its Working Capital requirement on time. As per the Coca Cola the Current Ratio is 1.02 which is not so good indicator as the implies the shortage of working capital in its business while this current ratio may differ from Company to Company. Quick Ratio implies that the instant debt paying capacity of the Company. The ideal ratio is 1:1in the case of Coca Cola Company ratio is 1:0.81 which is not so less as the Company can cover easily it by arranging the funds but the Company have under stocking of the funds. Debt Equity Ratio indicates the capacity of the Company to pay its debts. Its ratio is1:1 in this Company it indicates that the creditors are safe as the debt equity ratio of Coca Cola is 1: 0.63. Outstanding sales have been decreases from 37.52 to 37.05 days. It is the good indicator as now the money can be recovering earlier and can be invested in the business again. Payables days have been increases to 41.03 now the company can pay later as the capital can be used in some other work. Conclusion It is advisable to invest the money in the Coca Cola as the Company is doing the good business and today it is well known and Number one Company who provides the Beverages- Soft drinks to the Consumers. The Company is making profits and ratios are also close to the ideal situation of the Company. It is safe for the investor to invest in the Company. This year Company is not able to earn more profits as compare to last year but still the Company is making higher Profits as Compared to other Competitors. So the investor can invest in the Company. Limitation/ Weakness associated with the Ratio Analysis Ratio Analysis is a comparative tool for understanding the Comparative study of the Company. It helps in understanding where the Company stands as per its financial position which can be ascertain by the help of Financial Analysis and Ratio analysis. Still there are some limitations associated with the Ratio Analysis which are as described under:- Comparative knowledge and study needed:- To know the ratio of the Company one should have the knowledge of the ratios. If the Ratios are not known then one cannot ascertain the correct ratios and can be in Dias for the financial position of the Company. So it becomes hard for every person to have the proper knowledge of the Ratios. If the Complete financial data is not given then it will be unable to calculate all the ratios of the Company. Sometimes meaningful information is given which is not enough to calculate the financial position of the Company as the financial data are not available. Concentrate on the Quantities factors only:- It is the basic limitation of the Ratio that they are calculated on the basis of the Quantities terms; the qualities terms are highly ignored in the ratios. Sometimes the Company is doing well. They provides the satisfaction to the Customer and have the brand but if the sales and profit are not enough then its means that the Company is not so well. Hence the ratios ignored the qualitative figures of the Company which makes it stand towards the Competitors. Difference in calculating methods:- There are many formulas provided to calculate the ratio, due to which it becomes difficult to ascertain which is to be consider. There are different methods to calculate the ratios. Difference in Accounting methods:- There are different methods of accounting treatment which are used by the Companies. Due to lack of standard methods the financial position cannot be ascertain quite well and similar. Base on Past information:- Ratios are based on the past data which is not so needful the investors see the present and the future working of the Company to invest money in the Company. It doesnt matter sometimes that the past records are not good enough. Sometimes based on assumptions:- Sometimes the calculation of the Financial of the Company are taken on the assumption basis due to which it becomes impossible to get the fair and true financial position of the Company. Due to which the Correct and fair position cannot be known to the investors and the General public to make investments in the Company. Possibility to manipulate the Accounts:- To show the better picture of the financial position of the Company the financial data of the Company was manipulated due to which the investors does not come to know where the company stands in the market and by the manipulation prices the investors start investing in the Company which is done only to mislead the investors and to gain the name and fame in the market. Not sure indicator of the Company Financial position:- Ratios are not the true and sure indicators of the financial position of the Company as there are different methods to ascertain the ratios and they are calculate on the Accounting principles which too suffers some limitations .so to decide the Company financial position on the basis of the ratio is not the good outlook. As it also ignored the qualitative factors of the Company which are even important for the Company for its growth and development. Ignores Business Conditions:- During the calculation of the Ratios analysis the business condition are ignored sometime due to environment factors, political factors, external factors sales and profit can be increase or decrease. So these factors are necessary for the determination of the financial position of the Company which is ignored while calculating the ratios of any particular company. Incomplete Information:- Sometimes incomplete information is provided due to which the ratios are unable to calculate. It becomes difficult to calculate the ratios of the Company as the entire information is not given by the company. References: Francis K.A., Demand Media_ The Differences Between Financial Accounting Management Accounting, viewed on 21st Feb 2016,https://smallbusiness.chron.com/differences-between-financial-accounting-management-accounting-3985.html Mitchell H, Demand Media_ Management Accounting vs. Financial Accounting, viewed on 21st Feb 2016, https://smallbusiness.chron.com/management-accounting-vs-financial-accounting-3987.html Jeffrey G_ Financial Accounting vs. Management Accounting, viewed on 21st Feb 2016 https://www.investorguide.com/article/15759/financial-accounting-vs-management-accounting-d1412/ Brief Background of Coco-Cola Company, Viewed on Feb. 21st, 2016, https://deutch4macys.blogspot.in/2011/02/brief-history.html Business history of Coca-cola Company, Company History Index, Viewed on Feb. 21, 2016_https://www.referenceforbusiness.com/history2/32/The-Coca-Cola-Company.html#ixzz40mVS12OE Financial ratio of Coca-Cola Company, Viewed on Feb. 21, 2016, https://financials.morningstar.com/ratios/r.html?t=KO Jan O, Advantages and Limitations of Ratio Analysis, Viewed on Feb. 21, 2016, https://accountingexplained.com/financial/ratios/advantages-limitations

Competitive strategy of wine industry free essay sample

The wine may appear to be a simple drink with limited variation available, has turned into a multibillion dollar a year industry with enormous variation and an increasingly sophisticated consumer base. The variation available and changes in the age groups who are becoming the major markets for wine producers have created visible market trends that cannot be ignored. These trends also affect the global market. Focusing on market scale and branding expertise, these opponents have capitalized on the globalization of the wine industry. Recently, more and more wine production is taking place in â€Å"New World† regions such as parts of Australia, Chile, and the United States, which have gained a strong comparative advantage in the wine industry. Another problem is that some wine firm (usually French or Italian) are not capable to satisfy the demand of country such as China which has a huge population and even if the people who drink wine are not a lot the level of wine consumption is increasing and as a consequence the amount of export is growing as the graph below shows. Source: All material  ©2010 2012 Twisted Pine Productions. Imports of bottled wine in China increased by 94% year-on-year (y-o-y) to US$1. 27bn in 2011, according to data provided by the China Culture Association of Poetry and Wine (CCAPW). According to CCAPW, the total volume of imported wine climbed 76. 5% y-o-y in 2010, while it increased by 80. 9% y-oy in 2011. CCAPW also revealed that sales of domestically produced wine grew 36. 3% y-o-y to CNY34. 2bn (US$5. 4bn) in 2011. Wine continues to be dominated by domestic brands, and although imports from major producing nations such as France have grown, they remain beyond reach in price terms for all but the most affluent of Chinese consumers. As a consequence of these barriers, winemakers from leading winemaking countries have entered the Chinese market via joint ventures, providing expertise and advice to local vineyards, thus finding a means of capitalising on this growing market. It’s very important distinguish the industry of wine in 2 main category: Small producer: who has high prices, low level of competitors but low production capacity; focused on niche Big producer: who has medium/low prices, more competitors and high production capacity; focused on economies of scale Rivalry Barriers to Entry: The wine industry represents substantial barriers to entry. The most significant of these barriers is the price of land. Prices of land for vineyards has risen sharply. Along with the initial investment in land, there is a large capital investment in equipment. There are requirements for processing facilities and for storage facilities of large barrels of wine. Time is also against the new comer to the wine industry. It will often take years of aging before a wine can be brought to market making the return on investment very slow. Degree of Rivalry: The wine industry is an industry with many competitors. A high number of competitors suggest that price competition is very high. Along with the high number of competitors, there is also substantial consolidation of larger brands. Companies such as Foster Brands, Constellation, and Gallos have been purchasing smaller wineries and often have brand portfolios with as many as one hundred plus wine brands in the portfolio. These larger producers are using their power to push smaller manufacturers off the shelves. Power of Buyers: Buyers in the wine industry can be grouped into two categories, distributors and retailers. The distributor market has undergone intense consolidation with the five largest liquor distributors having over thirty percent of the market. The retailers also have a great deal of power over producers. The two largest wine retailers are Costco (with 10%) and Wal-Mart (with 9%). Threat of Substitutes: Brand loyalty is depend of the country, there are some countries accustomed to the use of wine which have acquired expertise allowing to learn about wine and to be loyal to a certain producer. Though there are other customers, such as Americans which has not the knowledge of the product that may be loyal to a certain product such as a merlot, they do not care who makes it. Supplier Power: There are several suppliers. One supplier is the vineyards. These vineyards lack power, the global market has been flooded with grapes from California, Australia, and several other countries. With all of these pressures, there is very high competition and low power of suppliers. Other suppliers such as bottlers are also easily substituted so they lack significant buying power. Conclusion regarding rivalry: The problem with the wine industry is the consolidation of distributors and buyers. With so much power in the hands of buyers, a winery needs to be large so that they cannot be pushed around by the buyers. This is why many small wineries have consolidated; they need to be larger to gain bargaining power. key success factors in the wine industry BEING DIFFERENT J. Lapsley and K. Moulton [2001] explain in their book â€Å"Successful Wine Marketing† how crucial it is that wine products seek a real identity. An appellation’s success is based on its ancestral and rigorous attributes, and of course, on the grower’s competence. A newer approach consists of developing branded wines and assuming that a brand conveys a particular identity derived from its specific competitive positioning and astute advertising. SEGMENTING THE MARKET The advantage of having real market segmentation is that consumers can be grouped homogeneously. This helps to improve the efficiency of any commercial actions undertaken. McKinna [1987] showed that wine consumers could be classified into four main market segments: connoisseurs (25%), students (51%), new consumers (10%), and bulk consumers who drink wine served in boxes, etc. (14%). These averages may cover significant national variations. The market breakdown will vary depending on whether the country in questions is â€Å"Old World† and accustomed to well established benchmarks like appellations, or â€Å"New World† and more spontaneously interested in specific branded wines or grape varieties. MOVING CLOSER TO THE MARKET Mudill, Riding, Georges and Haines [2003] have highlighted distribution channel concentration as the key variable in the world wine market. Like wine producers, actors in these channels have engaged in countless mergers and acquisitions in their attempts to gain more power vis-a-vis the major retailers and to shorten the logistics chain. In many sectors of activity, value added has steadily moved downstream, benefiting retailers instead of entrepreneurs who are in the process far upstream. This has triggered a merger-mania with companies trying to move as close as possible to the end user by eliminating intermediaries. FINDING A DIFFERENT WAY TO COMMUNICATE It is known that amongst the various marketing mix tools available to wine sector product managers, communications [advertising] plays a role that is clearly important. Furthermore, although one of communication’s main goal is to attract new (and often young) consumers. The Internet can help sponsors here by providing an additional vehicle for media communications. Kehoe and Pitkow [1996] have clearly shown that the Web targets a mainly male population that is relatively young, influential, and which enjoys above-average education. Their E-commerce has increase sales by 11% in the year 2011. Conclusion To achieve a good ranking in the wine industry it is necessary to analyze the own product, the global market and figure out what yours goals and objectives are. After having settled this, follows the development of an international strategy. Srategy suitable for the wine industry In the wine industry, the used strategies change depending the dimension of the companies. In the small company is recommended use the home replication strategy, selling the same products in both domestic and foreign markets, having a strong name and characteristic to loyalty a specific consumers grouped in a niche. Instead in the big companies is recommended penetrate the market using a transnational or even global strategy since rivals are the same in most country markets so there is a strong competitiveness that has to be attacked by low costs and global standardization strategy. MARCO SIMONINI

Thursday, April 23, 2020

The Silk Road Essay Research Paper The free essay sample

The Silk Road Essay, Research Paper The Silk Road is the most well-known trading path of ancient Chinese civilisation. Trade in silk grew under the Han Dynasty in the first and 2nd centuries. Originally, the Chinese trade silk internally, within the imperium. Caravans from the imperium # 8217 ; s inside would transport silk to the western borders of the part. Often little Central Asian folk would assail these trains trusting to capture the bargainers # 8217 ; valuable trade goods. As a consequence, the Han Dynasty extended its military defences further into Central Asia from 135 to 90 BC in order to protect these trains. Chan Ch # 8217 ; ien, the first known Chinese traveller to do contact with the Central Asian folk, subsequently came up with the thought to spread out the silk trade to include these lesser folks and hence forge confederations with these Central Asian nomads. Because of this thought, the Silk Road was born. Northwestern Indians who lived near the Ganges River played outstanding functions as jobbers in the China-Mediterranean silk trade because every bit early as the 3rd century AD, they understood that silk was a moneymaking merchandise of the Chinese Empire. We will write a custom essay sample on The Silk Road Essay Research Paper The or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The trading relationship between the Chinese and the Indians grew stronger with increased Han enlargement into Central Asia. The Chinese would merchandise their silk with the Indians for cherished rocks and metals such as jade, gold, and Ag, and the India ns would merchandise the silk with the Roman Empire. Silk proved to be an expensive import for the Roman Empire since its trade across Indian and Cardinal Asia was to a great extent controlled by the Parthian Empire. While the Chinese silk trade played a minor function in the Chinese economic system, it did increase the figure of foreign merchandisers present in China under the Han Dynasty, exposing both the Chinese and visitants to their state to different civilizations and faiths. In fact, Buddhism spread from India to China because of trade along the Silk Route, similar to the manner Islam spread along paths in mediaeval West Africa. . By 760 AD, during the T # 8217 ; ang Dynasty, trade along the Silk Road had declined. It revived enormously under the Sung Dynasty in the eleventh and 12th centuries when China became mostly dependent on its silk trade. In add-on, trade to Central and Western Asia every bit good as Europe recovered for a period of clip from 1276-1368 under the Yuan Dynasty when the Mongols controlled China. The Chinese traded silk for medical specialties, aromas, and slaves in add-on to cherished rocks. As overland trade became progressively unsafe, and overseas trade became more popular, trade along the Silk Road declined. While the Chinese did keep a silk-fur trade with the Russians North of the original Silk Route, by the terminal of the 14th century, trade and travel along the route had decreased.