Internet Article Analysis Essay Example | Topics and Well Written Essays - 1250 words

Internet Article Analysis - analyze ExampleIn the case of the two articles analyzed, both of them have focus on the first expectation mentioned above, the see to it of what happens in the environment. As we can see one of the articles is closely related to the Car effort and the opposite to Telecommunication Industry. Both the Hybrids cars and the VOIP services ar trends that are being consolidated in the market, and are opportunities as well.According to the article (Schoen 2006) that talks about The future of the auto industry, U.S. sales of crossbreed vehicles roughly doubled in 2005. And superfluously, based on HybridCars.com the hybrids cars sold have increased from less than 10,000 in 2000 to more than 200,000 in 2005, which means that is only about 1 percent of the roughly 17 one million million million cars and light trucks sold overall. On the other side, based on what the article (Alexander 2006) Forecast 2006 VoIP talks, 2006 will be the year VoIP becomes widely a dopted. The big advance will come in corporations rather than the government sector, Wolfe predicts (CIO for the put up of North Dakota).The facts mentioned made these two trends quite relevant to economics and managerial decision making. Managers can shed immediate improvements in performance by better matching the firms system to its business environment. As any(prenominal) manager should recognize, conditions change over time, so that strategies that are appropriate to todays business environment may be inappropriate in the future.2. How economics influences the decisions made by those in chargeThe link between the decisions managers control and a firms get aheadability is mediated by a host of economic relationships. The success of any strategy depends on whether the firms decisions are compatible with these relationships. The most basic is the law of demand. The law of demand says that, all other things being the same, the lower the price of a product, the more consumers w ill purchase it. Whether the increase in the follow of units sold translates into higher(prenominal) sales revenues depends on the strength of the relationship between price and the quantity purchased. This is mensurable by the price elasticity of demand. Price-elastic demand implies that a price expurgate translates not only into higher unit sales, but also into higher sales revenue. That firms higher sales revenue translates into higher profit depends on economic relationship between the additional sales revenue that a firms price cut generated and the additional cost of producing more products. That profits rise rapidly after the price reduction suggests that the additional sales revenue far exceeded the additional cost of production.Applying the economic analysis of strategy to what the article of automobile Industry informs, the added cost of a hybrid compared to a conventional gasoline-powered vehicle makes these cars to follow a tribute price,