Characteristics of Money to Function Effectively

Characteristics of Money to Function Effectively Explain the characteristics required by money if it is to carry out its functions effectively. What is money? Money is primarily a current medium exchange, for a person to buy goods and services from other person in the form of coins and banknotes (Freeman, 2012). It is critical to have a clear definition between money and wealth. In general, people may tend to use the term â€Å"money† as a synonym for â€Å"wealth†, such as Warren Buffet has a lot of money. However, economists clarify that these two terms are not in fact synonymous. In the side of economics, â€Å"money† is specifically used to refer to the currency, but not an individual’s wealth or assets. Yet, technically anything can be served as money as long as it possesses the following four main functions (Beggs, 2014). First of all, it must have the primarily function of serving as a medium of exchange. People need an item that is able to act as money to undergo the activities of buying and sel ling goods and services. In other words, an item that considered as money must be widely being accepted as payments for goods and services (Beggs, 2014). Money has made the transactions easier as everyone is willing to trade money for goods and goods for money. However without money, the transactions must be conducted through the barter system where exchange can only happen if there is double coincidence of wants. This system will cause inconvenience to the people as they cannot buy what they want or need or the seller may hard to sell his goods unless double coincidence of wants happens. Hence, we can conclude that money has eliminated the inconvenience which was faced in barter transactions by eliminating the double coincidence when purchasing or selling goods and services (UPADHYAYA, 2012). People can buy what they need from the seller and inversely seller can sell all the goods and services to people who need. Besides that, money is able to create efficiency as it eliminates unc ertainty regarding what is going to be accepted as payment by various businesses. With a generally accepted medium of exchange, trades are easier, more efficient, and resources can spend more time doing production (Money Functions, 2000-2014). Besides that, an item must work as unit of value or standard value in order to consider as money. Money is being used as the common benchmark to designate the prices of goods throughout the economy (Money Functions, 2000-2014). Money provides and measures various goods and services with different value that produced in the economy, in the terms of monetary unit. Without this function, money is extremely hard to identify since there is no value in between, and also hard to make a decision on how much volume of goods and services should be given in exchange of a given quantity of a commodity in a barter economy (UPADHYAYA, 2012). However, money has solved this problem by letting people to know the exact value or price of a good. It enables both the suppliers and buyers to make wise decisions about how much to supply for the goods and how much to purchase in exchange (Function of Money, 2013).

Classic Airlines Marketing Solution Term Paper Example | Topics and Well Written Essays - 2000 words

Classic Airlines Marketing Solution - Term Paper Example 102). The nine step problem solving model is described as an ideal framework that enables leaders of business organizations and companies with guidelines of understanding problems and how they can deal with them through making the right decisions (Petrolini & Walden, 2000, p. 1). Classic Airlines is faced with a marketing problem which has resulted in the loss of customer confidence and decreased share prices. This problem is worsened by the fact that fuel costs have increased and labor force has become more expensive to acquire and maintain. The airline’s board of directors has thus decided to employ strategies of cutting costs. This has led to reduced motivation to the employees whose morale and attitude towards work has become significantly low. These challenges have had a major impact on the marketing function of the airline which is faced with a problem of increasing the satisfaction of its customers and maintaining their loyalty at the same time decreasing the airlineâ⠂¬â„¢s expenditure. This paper gives a critical analysis and discussion of Classic airline’s marketing problem while using the nine step problem solving model in order to provide the most appropriate marketing solution for the airline. In the nine step problem solving model, the initial step involves describing the situation or the problem that needs an immediate solution (Petrolini & Walden, 2000, p. 7). ... The situation that the airline is in illustrates the need to put more effort in promoting its services through improving quality, efficiency and reducing the costs associated with traveling. Since this contradicts with the Airline’s need to reduce costs, then it is evident that a serious problem exits and thus an amicable solution is required so that the airline’s reputation and success is maintained. Classic airline’s marketing function is involved in trying to help the airline to come out of the problem that it is facing. The board of directors has engaged the marketing department in conjunction with finance and customer services so that a solution is reached. The shareholders of the airline have also shown interest in providing a solution for the company so that they could safeguard their investment. The best solution for the situation that Classic Airlines is facing is to involve the marketing strategies which will lead to enhancing the satisfaction of the co nsumers and in return, this will help the airline to improve its sales. The increased income would be used to compensate the staff and hence motivate them which will further improve the satisfaction of the customers and eventually win their loyalty on the airline. The management of the airline should thus set priorities in coming up with the solution for the marketing problem faced by the airline so that appropriate strategies are devised that would lead it into a lasting solution to the problem. Additionally, it is recommended the management of the airline evaluate the current situation in relation to the desired situation in order to determine how the solution would be reached with efficiency and

Human ResourcesTraining and Development #2 Essay

Human ResourcesTraining and Development #2 - Essay Example SWOT Analysis is an effective tool in identifying the internal strengths and weaknesses and the external opportunities and threats. It helps to develop a plan of action to concentrate on weaknesses and threats and get maximum advantage from the strengths and opportunities it has. The strengths of Abbott Labs are: its great history of innovation, its wide range of products, the great respect it commands in market ratings, and finally its expanding geographical reach opening up new opportunities. These are certainly its strengths to build on. Its overdependence on the anti-bacterial Biaxin and the anti-epileptic Depakote is could be a major weakness for Abbott. Both these products contribute substantially to the company revenues and profits. The challenge for Abbott is to minimize the decline of sale of these two. Abbott has been doing it bests in exploring new opportunities and keeping its position of strength. The new agreements and acquisitions it has had with Knoll Pharmaceuticals, Vysis Inc, and Biocompatible will help expand its product range and its pipeline. The company signed a The price regulation of prescription drugs in various markets by peers and government agencies, strong competition from generic manufacturers, and the expiring patent protection are the major threats Abbott is facing. "Abbott Laboratories' 'Position of Strength'