9/05/2011 Essay Example

  • Category:
    Business
  • Document type:
    Assignment
  • Level:
    High School
  • Page:
    2
  • Words:
    872

Commerce 5

ARTICLES SUMMARY

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9/05/2011

Time to lift your prices?

Most entrepreneurs especially those who operate service business, finds it difficult to raise prices as well as increase hourly rates for the services offered to customers. During inflation, prices increases aggressively. However, these small enterprises have limited pricing power as opposed to the large companies. Business owners are advised not to be complacent on pricing during times of high inflation.

The rising trend in inflation is not expected to slow down especially with the increasing labour shortages, forcing industries like mining to poach workers. Oil and commodity prices are also expected to rise. If entrepreneurs expect the cost of doing business will increase, they should increase their prices. However, they should first review their pricing strategy and communicate to their clients. Businesses can change their prices without increasing their hourly rate for example spending less time on a client work. They should mind their customers and avoid making hasty pricing changes.

Plan to protect Rocklea markets

Engineering consulting firms have suggested the building of levee banks along the Brisbane River, so as to protect the Brisbane Markets in Rocklea from future flooding. In their report which was commissioned by Brisbane City Council, building the levees can be beneficial to the infrastructure such as cold stores as well as to the industrial areas, including the markets. The flood was caused by backflow from the river since the city has very little rainfall (Moore & Calligeros 2011).

The flood damaged the markets and so many restaurants, caterer and greengrocers across the city causing problems in accessing food supplies. It was the impact of break in the city’s food supply chains that aggravated the importance of protecting the markets in Rocklea. Furthermore, the environmentalists have argued for the relocation of Markets in Rocklea. They want the site to be restored to its natural state as a flood plain or be used for lower intensity recreational use like sporting fields (Moore & Calligeros 2011).

Online shopping boom ‘here to stay’

The latest developments in technology have greatly encouraged online shopping even to the local sites. The retailers from Australia have been warned not to expect the boom in online shopping to change with fluctuation in the Australian dollar. This was said in a conference on e-tailing that was organized by the Australian Retailers Association. The research conducted showed that online sales in the Australia market are very strong especially on the categories that are less affected by the exchange rate for example textbooks, vitamins and supplements as well as cycling equipment (Kermond 2011).

Most women around Australia shop online, mainly for social activity and for fashion. It is said that all consumers will most likely consider shopping online. This has eliminated the previous notion that online shopping and e-tailing is for the rich people. People with the strong history of online are also likely to shop offline for furniture stores thus increasing the opportunity for Australian online furniture retailing (Kermond 2011).

High-tech Aussie lands multimillion-dollar deal

Robert Murray has become the latest high-tech millionaire in Australia. This was after selling his popular Flight Control game for the iPhone and iPad to the US game giant Electronic Arts. Moreover, Phillip McGriskin is also a millionaire after selling his online payments company Envoy Services to WorldPay. Murray’s Melbourne-based Firemint are the producers of the most popular mobile games including Real Racing, Flight Control and Puzzle Quest. It has now been acquired by Electronic Arts but both companies have declined to disclose their financial reports. However, a separate source states that the company garnered $10 million in revenue a year on sales. Whiz Andrew Lacy is another Australian tech who has become a millionaire after selling his game app start-up tapulous. Moreover, founders of Australian enterprise software makers raised millions after selling a minority stake to a large US venture capital firm. The same US venture capital firm, Accel has also invested millions in the Australian online foreign exchange payments services.

Business credit surge not yet in sight, says CBA

It has been reported that the recovery hoped for in business lending is uncertain. The countries biggest lenders are now opting for cash rather than borrowing it. After global financial crisis, the major banks have been predicting a sizeable rebound in lending to the small and medium enterprises (SMEs) and corporate sectors. The report submitted by the CommBank stated that the number of loans disbursed to the companies picked up towards the end of September 2010 (John 2011).

However, the combination of the passive retail sector which has been affected by the lower consumer spending and the natural disasters in Queensland, New South Wales and Victoria has thwarted the recovery process. National Australia Bank was leading the charge in leading. ANZ and CommBank followed with Westpac lagging. Despite the negative growth across the leading sector, Bank of Queensland disclosed that they recorded a slight rise in their lending to SME sector (John 2011).

References:

Moore, T & Calligeros, M 2011, ‘Plan to protect Rocklea markets’.

Kermond, C 2011, Online shopping boom ‘here to stay’.

John, D 2011, ‘Business credit surge not yet in sight, says CBA’.