Microeconomics- paper due Monday Feb 26 by noon
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SampleAPApaper.docx
Ping Golf
John Doe
ECO/561
University of Phoenix
PING GOLF 5
Ping Golf
The accounting changes of globalization have affected business decisions. Competition forces businesses to expand, look for strategies, take advantage of the global economy, and increase their profits. Companies all over the world strategically relocate overseas to take advantage of the global market. In addition, some stockholders gauge a company’s long-term profitability through business ventures overseas. Countries like China and India influence the market because of their cheap labor and dominance on consumer goods. The rapid transfer of goods and services is now possible in today’s global economy. This paper will explain the impact of global competition in staffing needs and labor relations, the Impact of Global Competition on product supply and demand, and the Impact of Global Competition on the Market Structure.
The Impact of Global Competition in Staffing Needs and Labor Relations
Hiring and assigning proficient staff is critical to the success of any business, especially overseas. Ping must be familiar with the host country's labor laws and business ethics. The organization must be careful not to offend the host country and protect its product line reputation. The company must decide the ratio of managers and personnel to hire from the host country and the transfer of home-based personnel. When the organization globalizes, Ping will need to hire local talent and use only a few key experts from the home country. The cost of assigning U.S. based employees to positions overseas can be quite expensive. Travel, housing, and food allowances can cost the company many times the expatriate's base salary (Bateman & Snell, 2011). In any case, managers need to scrutinize closely the selection process and job preparation of expatriates.
Most golf companies started out with unique, innovative, and exclusive patented products. To increase profits and stay competitive, companies outsource the manufacturing of their products overseas. This would be the case for Ping Golf Company. The company became famous for its golf putters in the 60s and eventually expanded with production of golf equipment and apparel. In the beginning, the company designed and made its products in the United States. With the competition outsourcing their products overseas, Ping followed suit but kept the design and innovation sector in the United States.
The Impact of Global Competition on Product Supply and Demand
Golf is becoming more popular not only here is in the United States but across Asia and Europe. Ping Golf Company needs to expand here in the States and target other places around the globe where golf is on the rise. According to Executive Travel magazine, "Golf may be finding a new cultural wellspring in the People's Republic” (Gould, 2010, p.37). Golf’s popularity in China gives Ping a broader target of potential customers. The company also has to look at global competitors Nike, Callaway, Wilson, Titleist, Mizuno, and Cleveland. Knowing the competition and learning what the company is up against plays a huge role in future expansions. To increase global customer base, the company must enhance its communication methods, improve its shipping channels, reduce barriers, and centralize its financing operations. Overlooking potential long distance customers would result in lost customers and affect the company’s supply and demand. Offering customers reasonably priced and quality Ping products with top-notch customer services will give the company an advantage over local and global competition.
The Impact of Global Competition on the Market Structure
The golf industries are of an oligopoly market structure because of high barriers to entry, product differentiation including technology, and patent involved to gain access to the market. Product development and innovation at Ping is crucial to overcome the competition. The popularity of golf around the world has grown substantially in recent years. Competition locally and abroad is increasing to gain substantial share of the market. Ping is known for making quality golf products, which puts the company on the map for new customers. "The award-winning PING G15 driver was the top selling model in both units and dollar share for March 2010, according to Golf Data Tech LLC Market Share Reports” (Golf Data Tech, p.11, 2012). To make an amazing product like this, Ping uses a product development system from PTC solutions, a product development company for the production and development of golf bags, putters, wedges, and hybrids. Ping has improved the quality of its products and reduced the amount of time to get products out on the market by using this system.
Ping has the advantage against global competition because of its sturdy market structure, the quality of its products, and the innovation within the company. Ping guarantees its products and believes that the company has advantages over the competition. The company will continue to design and produce excellent and innovative products for its consumers.
Conclusion
The majority of Ping’s potential customers live outside the United States and the nature of the competition leads the company to explore global opportunities. Technological and communications advances have a profound effect on the way consumers act and companies operate. In the past, consumers, businesses, and their employees relied mostly on local transactions to obtain goods and make profits. Today, the global business transactions will have fewer and fewer boundaries to constrain businesses. Customers all over the world, including both the private and public sectors have open access to goods and services than ever before. Finally, this research report explained the impact of global competition in staffing needs and labor relations, the Impact of Global Competition on product supply and demand, and the Impact of Global Competition on the Market Structure.
References
Bateman, T. S., & Snell, S. A. (2011). Management: Leading & collaborating in a competitive world (9th ed.). New York, NY: McGraw-Hill Irwin.
Golf Data Tech. (2012). Award-winning Ping G15 Driver is #1 Selling Model in March. http://www.ping.com/about/insideping.aspx?id=8112.
Gould, D. (2010). The Rise of Golf in China. http://www.executivetravelmagazine.com/articles/the-rise-of-golf-in-china
