Ongko_Furniture

In a duopoly market it is important to focus on market share, demand and price, which will affect total revenue in the long-run. Product marketing also has an impact on revenue with increasing demand and reducing costs while minimizing waste, causing a downward shift in the total production curve, and creating optimal operational levels. By implementing concept of the competitive economic, the value and economic efficiency, and the concept of observing financial transactions, can help Ongko to maintain market share. As an ethical businessman must understanding the three factors in ensuring competitiveness in any organization that is; a quality product, quality service, and quality deliverance. Ongko must champion the processes of quality throughout the organization, benchmarking successful organizations, incorporating innovations in quality, setting standards, and measurements in every way. Decisions A few decisions must made using strategic planning; Ongko’s new dent in his business using a high-tech approach, the new foreign company provides furniture to exact specifications and did so with rock-bottom prices. Financial decisions are based on incremental benefits because they are based on actions taken or not taken. Incremental benefits and costs are those that occur with a particular course of action but would not occur without that course of action (Emery, Finnerty, & Stowe, 2007, p. 26). Concepts • The concept of the competitive economic advantage is to operate in a more efficient manner than the company or companies it competes with, resulting in benefits accruing to that company. In this case by Ongko obtaining a computer-controlled laser lathe to produce exact cuts in the wood, he can be running on a 24-hour basis that will decrease his production costs. • The concept of the value and economic efficiency is to maximize production of goods and services. In a true duopoly market Ongko can assume his competitors output and treat this as a fixed amount, and manufacture in his own firm, or each of the firms will assume that the other will not change prices in retort to its price cuts. • The concept of observing financial transactions is an action under the contract between a buyer and a seller to exchange an asset for payment. According to George Gilder (2002) innovation enters the accounts chiefly as an effect of capital formation—the accumulation of buildings and equipment. Economic growth is developed through knowledge and innovation (2002). As a businessman Ongko needs to be aware of the above concepts that will help him better understand price increases in other countries, inflation increases in prices, and the cost of imports. According to Davidmann (2006) when the price increases, our exports become more expensive, and the result can be the product can be sold for less abroad, and our payments deficit gets even worse. When this condition persists and gets worse, then we can devalue our currency, the extent of the devaluation depending on whether we are devaluing to stay competitive or to become more competitive (2006).