Fordism and post-Fordism
Nick Holmes Student No. 0312103 Question 1 The terms Fordism and post-Fordism refer to different methods of work organisation. Fordism is the mass production of goods in highly developed economies during the 1940's - 1960's. Economies of scale were produced by spreading fixed expenses, especially investments in plant and equipment and the organization of production lines, over larger volumes of output, thereby reducing unit costs. Henry Ford opened the Highland Park Plant in 1913. This was the first mechanised factory, and made more than 200000 cars in its first year. The new factory removed wasted time that occurred from moving between jobs and allowed the pace of work to be remotely controlled. Fordism is a very rigid process, compared to the flexibility of post-Fordism. Post-Fordism is just small batch production, and also includes the global market. The role of labour in the 2 systems is very different. Fordism allows the worker to concentrate on just one simple task, where as post-Fordism workers are expected to carry out multiple tasks. Fordism allows workers to specialise. Under Fordism, workers found their responsibilities diminishing. Assembly line work is unpleasant in a mass production environment. It is physically demanding, requires high levels of concentration, and can be excruciatingly boring. As a consequence, Ford experienced very high labor
What is Consumer Behaviour?
What is Consumer Behaviour? Consumer Buying Behaviour involves individuals/groups who select, purchase, use or dispose of products/services, ideas or experiences to satisfy wants and needs. People in the market place: * Consumer - Purchaser and User - Influencer (when a consumer is happy with the product, he/she will recommend it to other people * Process - It is a process of exchange The consumer gets the product by exchanging it with money Consumer behaviour - Consumers are actors on the market place * Role Theory (Very Important) * The consumer can assume different roles (E.g. Just consumer, deciders, influencers) - Consumer behaviour is a process * Exchange The distinction between a need and a want A need is something that you can't live without; physiological need Mobiles/Computers are they a need or a want? Marketers are constantly accused of changing wants into needs. Consumers range from babies to old people Introductory remarks about a typical consumer: i. Demographics (the study of population) E.g. Ageing population - demand for younger people's products might decrease as time goes by since less babies are being born (lower birth rate). Demand for old people's homes might increase in the future. ii. Psychographics (the study of lifestyles) This is a more fast-moving criterion than demographics; life styles tend to change a lot
Compensating Variation and Equivalent Variation
Compensating Variation and Equivalent Variation Print out this web page before starting the lab. Compensating variation and equivalent variation are monetary measures of the gain or loss in a consumer's welfare following an economic change. Compensating Variation (CV) is the compensating payment that leaves the consumer as well off as before the economic change. The compensating payment is positive for a welfare loss and negative for a welfare gain. Think about the payment as being to the consumer in the case of a welfare loss and from the consumer in the case of a welfare gain. Let the economic change be an increase in the price of good x for the consumer choice problem discussed in class. In the figure shown below, a price increase moves the consumer from consumption bundle A to consumption bundle B. To be as well off as before the price increase, the consumer must receive a compensating payment that allows the consumer to move to the initial utility level at the new price of x. The budget constraint associated with the compensating payment is shown in red below. Think about the CV as the minimum amount that the consumer will accept as compensation for the welfare loss associated with the price increase. The CV for the price increase is easily calculated using Goal Seek. Let's go back and look at a portion of your results for the previous lab. You used Goal Seek to
Production possibility fronteir econ paper
Production Possibility Frontier The production possibility frontier [PPF] (also called the production possibilities curve [PPC] or the transformations curve) is a device used in macroeconomics as a means of measuring the maximal possibility of production of any one good or product in comparison with another, assuming all of its scarce resources are fully and efficiently employed. The PPF is shown in graphical form, in which the two products being compared make up the two axes. The line in which maximal efficiency is acheived is what is known as the PPF. Any point along this line shows maximum efficiency of production levels in different combinations of the two products. Unless both of the products in question are homogenous - in which case a linear graph is output - the PPF is generally of a concave, curved line. A diagram of an average looking PPF can be seen below. The concave shape is very important factor when considering the PPF. Because the PPF is the line in which an economy is at its maximal production potential, it is imposible to increase production output of one product, without sacrificing the production levels of the other. In other words - there will always be an increasing oppertunity cost - this is an economical fact. This is where the importance of a concave PPF is apparant - it correctly depicts the principal of marginal oppertunity cost. This can be seen
Domestic Policy 1930's, and 1980's: A Comparison
Nick Konieczny Mr. Ferrara College Prep. American History 6/10/02 Domestic Policy 1930's, and 1980's: A Comparison Who contributes more to the economy? The "Haves" or the "Have-Nots." This one simple question is the central concern of American domestic policy, and politicians have struggled with it since the birth of the Roman Empire. There is still no definite answer to it and everyday more factors come into the question. But if you were to look at the trends in the American economy you would see that generally liberal "Have Not" economics seem to do better. For example take two decades whose economics differed greatly; the '30's and the '80's The 1930's were a time of change in America. The economy shifted to accommodate the "Have Nots" rather then the "Haves." The running theme of the 30's was Government intervention. A welcome change from Hoover's rugged individualism policies of the 20's. In the 30's FDR created his New Deal, an economic ideal which created several government programs to help the poor. These programs included Welfare, Social Security, and the FDIC among others. Welfare was intended to be a small source of income for the poor during the depression and to get more money circulating in the economy. Social Security was a way to insure money for the common people of the U.S., which would hopefully stimulate the economy and help to end the
Trends in the Secondary Sector - There are many type of manufacturing in the UK.
Trends in the Secondary Sector There are many type of manufacturing in the UK. The UK share in the output of manufactured goods from all over the world has fallen. The UK now spends more on foreign manufactured goods (imports) than it makes from selling its own manufactured goods (exports). Before 1983 the UK had always sold more goods overseas than it imported. The fall in manufacturing industries is called de-industrialisation. De-industrialisation in the UK meant that jobs in manufacturing have fallen from over 7.6 million people in 1960 to just over 4 million in 1999, most of which were lost in the 1970s. Although there has been a fall in UK manufacturing, Peugeot has not been largely affected. Last year, the objectives of the PSA Peugeot Citroën group were to sell 3 million vehicles. 3,133,000 vehicles were sold, this in an increase of 11.3% compared to the previous year and this increase was achieved in a world market which declined by 1.2%. The PSA Peugeot Citroën group has seen a sales growth of 50% in the space of four years. Ford dominate the car market (Fig.1) with a market share of 15.6%, Peugeot have a market share of 8.3% which put them third on the car market. The future objectives for Peugeot are to have sales of 3,250,000 vehicles and an operating margin of 2.8 or 2.9 billion euros, which is 4.8% or 5% of the automotive division operating margin.
What is strategy?
What is strategy? "What business strategy is all about is, in a word, competitive advantage... The sole purpose of strategic planning is to enable a company to gain, as efficiently as possible, a sustainable edge over its competitors. Corporate strategy thus implies an attempt to alter a company's strength relative to that of its competitors in the most efficient way." Kenichi Ohmae, The mind of the Strategist This definition of strategy looks more like a definition of an operational effectiveness. In different words it states that the company has to perform better then its competitors in any way it could possibly find. According to Porter, the main problem is failure to distinguish between operational effectiveness and strategy. Porter argues that most companies today compete on the basis of operational effectiveness. However few companies have competed successfully on the basis of operational effectiveness over an extended period, and staying ahead of rivals gets harder every day. The most obvious reason for that is the rapid diffusion of best practices. Competitors quickly can copy the management techniques and therefore this leads to a battle that no one can win. Operational effectiveness is about what's good for everybody and about what every business should be doing. Strategy is about making choices, trade-offs; it's about deliberately choosing to be different. The
Congestion as an externality.
Congestion as an externality In economic terms congestion is a mixture of externalities, information failure and transaction cost. Negative externalities exist as cars produce emissions, which are harmful to the environment, the wear and tear of roads, and the opportunity costs are not included in the monetary costs of motoring. Drivers are both the cause of the externalities; and are the victims of others at the same time. One can say that the information failure is very clear, as drivers are not effectively told of delays and congestion before they take there journey, if this was to be done it would help reduce congestion on the roads. However the market that currently exists doesn't produce these kinds of signals to the consumer, so this solution wouldn't ever be perfect, as the congestion will eventually just transfer to the alternative rout. All these externalities represent market failure; this can be said because the socially efficient output is not produced. The social optimum amount of vehicles on the road must be exceeded if congestion results. When taking a journey motorists will decide whether or not to make a journey on the basis of their valuation of the benefits from the journey and their valuation of the alternatives in terms of time and money for petrol and other variable costs. They will not consider the additional cost imposed on other road users. This
Economics of Electiricty Network Regulation
Electricity network regulation DISCUSS the rationale for economic regulation of energy networks in general and the use of "incentive regulation" approaches in particular and (2) pros and cons of using benchmarking methods in incentive regulation of the networks. The rationale for economic regulation of energy of energy networks is to remove monopolisation in naturally monopoly characteristic industries, helping to create a more natural market. Energy is a resource that is so key to development. By regulating the energy networks, it can potentially allow for a much wider consumer base and assist in development through allocative efficiency The UK government, under conservative governance, went under an extensive privatisation in the 1980's. By 1990 they had ventured into extensive electricity sectors reforms- ''The most ambitious exercise in the whole UK privatisation programme" (Yarrow 1994, to transform a stagnant, inefficient industry with high capital costs and low returns, into a competitive industry. Unbundling the generation, transmission, distribution and supply services and introducing competition in generation and supply (T. Jamasb 2000) Privatisation, has led to incentive based schemes. Incentive based schemes are used to encourage good performance and efficiency improvements in the energy networks. Schemes have been around since the early
The economic impact of a US led attack against Iraq will be felt across the globe. With the use of supply and demand diagrams analyse the impact of war.
Essay topic 2 "Oil is key as bush agrees month delay. All diplomatic, political and military considerations now point to war being timetables for the first week in March" (Sunday Herald, 26th January 2003) The economic impact of a US led attack against Iraq will be felt across the globe. With the use of supply and demand diagrams analyse the impact of war on the following; a) The market for oil b) The market for air travel with budget airlines c) The market for gas masks Another Persian Gulf War is the greatest risk facing the world economy. The availability of crude oil remains an important factor. A war could disrupt the availability of crude oil and trigger a sharp rise in oil prices. Even though Saudi Arabia currently has the capacity to raise its own production levels by more than Iraqi exports. But looking at a less favourable setting, the conflict could easily spread and significantly disturb the oil supplies if for example all the Middle Eastern countries such as Iraq, Kuwait and Saudi Arabia's oil production facilities are damaged. Other disruptions could occur through a possible boycott on OPEC. The demand for oil is exceptionally high, as the modern world needs a constant supply of oil especially industrialized countries such as Japan. As there consumption is met completely by imports from mainly the Middle East, Industrialized countries remain highly
