Australian National University
With rapid changes in technology and also the market structures, economics which concerns with production, consumption and how to transfer wealth thus plays a great role in today's markets, it has much in common with social and behavioral sciences such as sociology, psychology and also the natural sciences such as physics (Paulsen, M. B., & Toutkoushian, R. K. (2006). The field is usually broken into two major parts; macro-economics and micro-economics. Micro-economics evaluates the decision making policies for small structures within the economy, and macro-economic examines problems at their combine and complex levels. A better understanding of economic concepts could lead to many interventions and choices relating to businesses thus helping more informed students to make clear and right decisions regarding businesses. In this essay, I will discuss how various economic concepts has impact Noja Power one of a global market organization.
This being a document that summarizes the bigger picture that a reader could see about an organization (Beetham, H., et al. (2009). Noja Power is a firm with different offices servicing in an all-time zone on earth, including two campuses in Brisbane Australia and Brazilian manufacturing campuses are very active in producing the Australian campus worked in two shifts a day for the entire year, consistently to produce the required outputs. The Brazilian campuses have been commissioned successfully and thus put in place the parallel production line which is expected to produce double output, this year. There have been gradual changes to the electricity utility customers, with an ongoing large-scale distribution of renewable energy, at first, the electricity grid was transporting power in one-way but now are required to control the two-way power flow, with customers emitting energy during the day and importing it during the evening.
The developed solutions can now help customers to manage the bidirectional flow of power, in partnership with the Energy Queensland and supervisory contribution from the Australian markets operators (AEMO) successfully bring The Australian renewable energy agency (ARENA) project in 2019. The firm has maintained the Iso9001 credentials in the provision of a system that will continually increase its capacity of outputs. Noja firm has been well situated such that it can easily meet the demand from the energy utilities and private enterprises for medium voltage intelligent switchgear. The Financial economics concepts are seen in the company structure that consists of the Board of directors, sales and marketing, research and development and quality and services all these parts work immensely together to provide quality outputs, its engineering production teams work on improving the efficiencies to optimize the manufacturability, consistency and reliability. Its global market plan consists of all the compressed analysis of every Noja office around the world and its operations; from the analysis, the global market plan summarizes its strategies in operations so that the company could meet its goals.
The companyâ€™s long and short term goals are 20% growth per annum, global market share for load break switches: 1% by 2022, Employee retention 90%, marketing: % turnover per annum 2%. The above goals come from the recent market shares, positions and competitive environment analysis. The company works to fulfil its objectives through careful planning and deployment as it strives to be the world leader in medium Voltage pole mounted switchgear, by offering customers with the right solutions with their innovative products, unrevealed services across the time zone. Economic theories such as agency and transactional-cost analysis have been used in the internal operations of the company (Perrow, C. (1986). Agency theory has focused on the problems between the employer and employee, and transactional-cost analysis has focused upon the need to eliminate market contracts by in cooperating suppliers and distributors of the Noja Power firm.
Noja Power is an organization that deals with the provision of electricity all over the world, with its core products being a major asset in the development of a nations' electrical infrastructure, therefore, markets for reclosing are subject to saturation and stagnation as initial development quotas are met and greenfield installation demands taper off. The concept of cooperate social responsibility (CSR) can be traced back to 19th century with its major considerations being the economic factors of a company, (He, L. J., Chen, et al. (2015). The cooperate social responsibility (CSR) related activities are helpful to Noja Power company to gain economic benefits (Friedman, 2000) as it evolves. Reclosers are proven as effective for safety, reliability and fundamental; in the cycle, there is the major adoption phase where costs saving seen by the deployment of reclosers' leads to a rapid large scale of deployment of the products, the demand of the product are high. Making it best for Noja Power Company to secure business at a major adoption phase, markets having a large volume of reclosers may be under maintenance while business in the major adoption market should be taking into consideration as it could easily result to the largest company growth. With the companyâ€™s core beliefs being as from the inception it is the companyâ€™s commitment to unrivalled services worldwide, with its department of quality and services executing a pleasing record in the training and service support events all over the globe.
Economists have tried to predict and control consumers' behaviours over the centuries (Hursh, S. R. (2008).an adequate science of behavior should be able to supply a satisfactory account of a markets and consumersâ€™ behavior from past to present thus constituting the data of economics. However, economic theory is not, as yet, derivable from current behavior principle; a complete behavioural account could profitably adopt and borrow from economics assignment (Hursh, S. R. (2008). The economic concept is relevant to behavior analysis. The macro-environmental situation analysis takes into consideration the global market through some academic frameworks so that it can assist in the strategic market planning. The market size analysis is always a big challenge to most industries, products do not share total values of required switch gears, with various countries having different rules governing network topography defining switchgear requirements. There are many assumptions made during estimation of a countryâ€™s switchgear market, such assumptions include power and energy is a basic requirement to all countries around the globe, the larger the countryâ€™s gross domestic product (GDP) the greater the power and energy requirement and vice versa, and also that switch gears are required for a network. Making use of the ratio of known market share and the gross domestic product of a country it is possible to estimate an extrapolation of how much a given country spends on Automatic circuit reclosers. The estimated global market size will now be given by; Taking into consideration the Noja Power products range from pole-mounted reclosers, pole-mounted sectionalizes, pole-mounted switches and ground-mounted reclosers. We will estimate as follows;
The analysis as prepared using the International monetary fund, Cash in advance factbook and the companies and the companies ERP data we will have
For future market planning it is more important to consider actual financial resources and economic data, then cross-reference this against market intelligence for a specific region.
Noja growth from the year 2012 through to 2017 involved venturing into different market regions and so involved much of expenditures on new power installations hence capital spending. These new investments in different regions on market analysis simply identifies increased demand and so shifted the demand curve to the right due to increased quantity of the power projects. It also resulted in increased equilibrium price and hence profits as shown below:
In the year 2019 Noja power reported loses in various deals spreading across various factors including pricing, cancelled projects, Technical non-compliance, delays and relationship connections. The power production and distribution company was forced to reduce productions inorder to cut costs and therefore reduce capital expenditures so that it remains profitable. As a result the demand curve shifted to left due to reduced production and decrease in demand. This downward movement of demand curve has effect on profits as shown below:
Given the size of the competitor's product portfolios, the data is skewed in their favours. They found out that the online web traffic remains low (3000 visits per month). Capital equipped being low volume high margin product; the 3000 per month is for the Nojaâ€™s power company sales. An increase in consumer population will lead to a significant increase in sales.
After technical evaluation of Noja's company products against utility specifications, logically it is usually the lowest price compliant product which is awarded the business, competitiveness being the theoretical, multi-dimensional and relative economic concept associated with the market mechanisms (Siudek, T., & Zawojska, A. (2014). The concept may refer to different levels such as competition between nations as in the case with Noja Power Company, industrial and also between individual companies, in the market place there simultaneously exist highly, medium and low competitive economic agents. Porterâ€™s 5 forces analysis is the most influential model within economic analyzations and interpretations. Its framework is a centrepiece in strategic management, thus making it easier to understand the competitive landscape under which any firm operates. Concerning Noja Company its business is a single product offering of the automatic circuit recloser system. It is a Micro-environment evaluation. Comparing with the Pestel system is a technique used in strategic management to group macro-environment factors to help economist and strategists look for sources of general opportunities and risks (Issa, T., et al (2010). There are some considerable barriers to entry in the switchgear market such industry connections, long supply agreements and specialist technical knowledge barriers. The threats of new entrants into the recloser market is not a major area of concern for Noja Power company for the next five years, taking into consideration the inactive nature of product development, adoption of customers onboarding on the switchgear market distribution industry. There are also high risks for the future Visi-Switch product since the moulding process will require supplier assembly of Noja Power proprietary components. Noja Power has various competitors basing on their located regions due to technical compliance and type testing reasons making it possible for the firm to reduce its competitors. as a result of Posters 5 forces threats on new entrants, making it impossible for small businesses not regarded as genuine competitors unless their market shares grow.
Noja Power Company pricing objectives OSM recloser aims at minimising bills of the cost of materials and maximizing the sales, with implementation which can allow a 30-point margin threshold that can allow business development managers (Issa, T., Chang, V., & Issa, T. (2010) to freely make business decisions without the approval from the Sales Directors. The methods used in pricing in Noja Power Company is the latest Bill of materials (BOM) latest costs calculations prepared by purchasing, a margin which the business development managers (BDM) believe it will secure the business to their best budget. The strategy depends on the region and competitive factors, Noja Company has among the lowest Bill of Materials (BOM) cost technically compliant products, providing more flexibility in pricing options. Future deployment of deal registration in a partner Relationship management digital account framework will allow BDMs to provide custom pricing dependent on distributors and customers. Economic theories help us to understand the scope of the inquiry, determinants of the size and the behaviour change of the donors, volunteers and paid staff (Steinberg, R. (2003), from the market analysis there is need for Noja Power company to put more focus on the markets which are starting the adoption phase or where they have low market shares nonetheless markets such as India and Japan have very high competition and are very challenging to enter. S AND C being a good technology adoption company around the globe their security adoption and implementation into the Noja Power to assist in its vision of innovation and securing market size change, however, it is assumed that the S and C Company can manage to secure business all over through the Wi-Fi.
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Based on the above market analysis, the pricing methods the economic theories and the economic concepts as implemented in Noja Company with researches on the market structures and calculations from various dataâ€™s, that feedback given to Noja Power Company through there short answer question the results was the Company was congratulated from the previous performances and indication on the reinforcement of demands for the reliability and the field performances, primary changes were like to improve the software UI design, rate of change of frequency and power quality. Noja Power also needed to communicate their functionality releases effectively or to implement training for the distributors to secure further business markets. Noja Power engages Australian utilities for the development of new functionalities this is due to the heavy critiques. Discounts and allowances should be charged on merit and strategic advantage and should also require the director's approval.
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Beetham, H., McGill, L., & Littlejohn, A. (2009). Thriving in the 21st century: Learning literacies for the digital age (LLiDA project): Executive Summary, Conclusions and recommendations.
Paulsen, M. B., & Toutkoushian, R. K. (2006). Overview of economic concepts, models, and methods for institutional research. New Directions for Institutional Research, 2006(132), 5-24.
He, L. J., Chen, C. J., & Chiang, H. T. (2015). Top manager background characteristics, family control and corporate social responsibility (CSR) performance. Journal of Applied Finance and Banking, 5(1), 65.
Perrow, C. (1986). Economic theories of organization. Theory and Society, 11-45.
Hursh, S. R. (2008). Economic concepts for the analysis of behavior. Journal of the experimental analysis of behavior, 34(2), 219-238.
Siudek, T., & Zawojska, A. (2014). Competitiveness in the economic concepts, theories and empirical research. Acta Scientiarum Polonorum. Oeconomia, 13(1).
Issa, T., Chang, V., & Issa, T. (2010). Sustainable business strategies and PESTEL framework. GSTF International Journal on Computing, 1(1), 73-80.
Steinberg, R. (2003). Economic theories of nonprofit organizations. The study of the nonprofit enterprise (pp. 277-309). Springer, Boston, MA.
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