Skoda study/LEDC

Skoda Auto Case Study
a. The two internal stakeholder groups suggested in the case Skoda Auto case study are the employees. As well as the shareholder group that is directly affected by the transpirations of the employees in the Public limited Company.

b. As Skoda is an international company of there was a variety of stakeholder conflicts occurring. In particular there was the fact that, the Czech government hadn't seemed to be regulating the business practices, such as the Czech Company's adherence to employment legislation. In turn the employees became disgruntled about the lack of full benefits and pay, the Czech employees responded in a workers strike at an attempt to raise awareness of their dissatisfaction.

c. In hopes of minimizing this conflict, managerial team and Board of directors of Skoda Auto could establish internal means of regulation for each area they operate in. This would in turn allow for less dependency on the government for profit making. Initially it may prove to be costly but in the long run it will be greatly effective. It will allow the managers and directors to avoid dilution of control considering the scale of the business

It is essential to recognize the economies/ diseconomies of scale that lie in front of Skoda i.e. if the business was solely on a national level, it would seem ridiculous to invest money into regulating unfair business practices as this is an aspect regulated by the government already.

Economic Growth Activity

2.Peak or Boom: Economic activity at highest, Consumer expenditure, investment and export earnings, unemployment will be low, consumer and business confidence will be high, possible increase in wages, business have very good cash flow

Recession: Declining aggregate demand, lower investment expenditure, falling export sales, rising unemployment

Slump or Trough: High level of unemployment, very low levels of consumer spending, investment and export earnings, poor cash flow

Recovery or Expansion: GDP rises, national income begins to increase, consumption, investment, and employment will also increase

question 3
Cost reduction: methods such as finding alternative suppliers who offer the product you need at better prices or moving to a cheaper location should help cash flow during a recession.

Price Reduction:during a recession people become more cost aware and have less disposable income. A slight reduction in prices may prove to be effective in retaining customers

Branding: can help during a recession because customer who are loyal to the brand will continue purchasing its products regardless of price change helping the brand maintain its sales.

Outsourcing: the cost of production might be lower overseas so this could help a business gain a competitive price advantage and increase its profits.

question 4
How does growth occur via improved quality of factors of production?

Capital Goods: the greater the level of investment, the higher economic growth tends to be.

Education and training: if the workforce is trained better and more educated the workforce will become more productive.

Health technology: Better health care helps ensures that the overall health of the workers will be greater thus improving the overall productivity of the workforce.
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question 5
How can the labor force of a country change?

Change in demographics: a fall in birth rate in developed countries, people delay work for higher educational opportunities and early retirement because of rising income are reasons that will reduce the size of the workforce.

Changes in participation rates: a higher participation rate can be caused by government incentives such as lower rates of income tax. due to an increase in the number of women that are returning to or starting work increases participation rates in different regions of the world.

Changes in net migration: this refers to the difference between immigration and emigration. If the net migration is positive then, the size of the workforce will increase.