Strat-Management Essay Example | Topics and Well Written Essays - 1500 words

Strat-Management - Essay Example DP world is amongst the world’s largest port operating entities that has an established business base and considerable potential with the ventures expanded over different major ports of the world that are hub to the services, containers and shipping. Company specialization: It specializes in the ports and terminal operations. The company has enjoyed control over three major cargo terminals in this area and has recently decided to sell as high as 60 percent of its terminal stakes (portstrategy 2012). It facilities the functions of performing cargo terminal services across the major docks and primarily on the Belgian docks as in this particular case. This move of selling the shares comes as a result of agreement and settlement with a locally operated company in the name of Zuidnatie, which aims to overtake and purchase as many as 60 percent of the overall shares of the company that were owned by it previously. This decision has various repercussions ranging from business view po int, to economic and strategic since the brand name is already established and also the services delivery infrastructure has been in place as well. Therefore understanding its long term, short term impacts is vital along with the possible angles and dimensions under which this move may have been initiated. Core idea: The idea behind selling its break bulk terminal is trigged by the move and motive to focus on the core services which is that of deep water container facility. This move is accompanied by that of expansion of its services and facilities usage in the Delwaide Dock terminal, which again is a front line terminal and would enable better focus on the core stream. The overall sales are worth around 60 million dollars. Repercussions: Since the decision is of major significance, it has both internal impacts and external, each of these need to be evaluated in terms of the possible impacts on DP world, this will be looked into with reference to the internal variables, internal fa cilities, the workers response, and on external front, it would be gauged against the supply chain factor, the market competition, the rivals response, the possible loss of customers and clients by giving up the terminal that has long been associated with DP world and other factors. All these need to be critically evaluated and observed in order to assess the impacts and determine whether this decision would augur any positives for the company or possibly lead to the negative impacts on the overall organization. It is potentially amongst the top three largest stevedores in the Port of Antwerp and its decision to abandon and sell its services will have impacts both on DP world itself and the overall terminal’s environment since it is an established entity and has been around and has earned the clients trust for considerable time (Barnard 2012). Under the law and rules and regulation of the porting industry, 70 jobs have to be cut off in lieu of this decision which would includ e 40 white collar jobs, and 30 blue collar jobs (Nobx 2012). The trend: DP world has exhibited similar behavior in recent times, and this is not the only and unique function being performed, the selling of its 20 percent shares to the Russian giants was one similar example. Another similar event came to forth in form of DP world’

Private enterprise system Research Paper Example | Topics and Well Written Essays - 1500 words

Private enterprise system - Research Paper Example The competitive nature of the economy, due to the capitalist system, makes it easier for consumers and firms to buy and sell goods and services freely. In a private enterprise system in its purest form all factors of production are privately owned and there is no intention from the government to set market prices or intervene in the economy (Gitman & McDaniel 2007). Due to the little intervention by the government market forces dominate the economy and the three basic questions in economics: 1) what to produce? 2) how to produce? and 3) for whom to produce? are determined by the market mechanisms of demand and supply. 1. What goods and services to produce: it is the people who decide the mix of goods and services that should be produced and sold in the economy. The people demand those goods and services that they either need or want. Their needs and wants are based on the amount of income they have or wealth they possess to buy the goods and services. Firms then produce and supply th e goods and services that are demanded by the customers in order to maximize their profits. 2. How to produce the goods and services: as there are limited resources available to an economy, producers aim to use minimum resources to maximize output and profits. As a result firms use the most effective, efficient and least costly factors of productions to produce the goods and services desired by the consumers in the economy. 3. For whom to produce: as there are only a limited number of resources available hence only a limited amount of goods and services can be produced. People’s income is the major determinant regarding who gets the produced goods and services. Although firms produce the goods and services demanded by the economy, people with more income and more money at their disposal will dominate and be able to buy whatever they desire. Hence as can be seen the basic economic questions are answered in a private enterprise system by the decisions of producers, consumers an d the market forces of demand and supply. There are four economic rights in a private enterprise system. The fundamental right on which the whole capitalist system stands is the right to own private property. As the private enterprise system states that resources are privately owned, people have the right to buy, sell, own, use and transfer property. Some forms of property include land, machinery, building, equipment and private possessions. People won’t be able to sell goods and services if they are not allowed the right to own as they will not be able to transfer this right to others through an agreement. The second right that exists in a private enterprise system is that the business owners have the right to keep profits from their business activities after taxes have been paid. Profit is the reward for the business owners as he is the one who takes the risk of investing his privately owned resources in the business hence any income generated by the owner in excess of his costs becomes his profit which he is entitled to keep. Another important right is the right of freedom of choice. People in the private enterprise economy are free to choose their own job, find alternate jobs if they are not satisfied with the current, become part of labor unions, negotiate their wage with the employer, choose from a diverse range of goods and service or choose to set up their own business. As can be highlighted from these examples