This website uses cookies to ensure you have the best experience. Learn more

Economics Essay

1230 words - 5 pages

1. What was ITC’s motivation for creating the eChoupal?
a. What problems (discuss from a data and process focus) does it address?
With the development of technological revolution, ITC created the eChoupal. ITC supplied Internet access for remote villages. EChoupal was used to assemble and knowledge and share information through websites. There are many motivations for ITC to create the eChoupal.
1. The revenue of IBD was far behind
The First, IBD (the agricultural commodities export division of ITC) was “lagging behind the other divisions of the company” (Upton and Fuller, 2004, p.2). According to the data, IBD grossed $100 million in agricultural commodities sales while ITC’s other ...view middle of the document...

To solve these problems, Pearlson and Saunders (2013) pointed out that “the value chain model addressed the activities that create, deliver, and support a company’s product or service”. For this reason, it is important to use accurate information resources to alter the value chain and optimize its supply chain. On the input side, ITC should use accurate information to forecast weather. ITC used herbicides and pesticides more effectively. Therefore, farmers as suppliers could receive a higher crop yield. ITC had more control over high-quality and high-yield soybean from farmers. On the output side, farmers obtained more information like price to make wise decisions. They had a choice of selling to the middlemen or directly to ITC. Optimizing the supply chain could save transaction costs and benefit all the participants.
3. Farmers had limited capacity for risk
The third, farmers reduced the investment in crops because they were worried about risks such as inclement weather or pests. Farmers did not want to risk new farming methods. For this reason, the crop value was low and farmers’ revenues were low. It is harmful for the development of agriculture in India. The capacity of crops also influenced the ITC’s profits in sales.
Overall, ITC created the eChoupal to increase soybean’s yield and farmers’ profits. The eChoupal would support the free flow of information in order to help ITC optimize its supply chain.
2. What were the old and new physical flows and information flows in the channel, i.e., how does it work? a. Draw a diagram to represent the old and the new physical flows.
Old Physical Flows
ITC contracted with a CA in each Mandi. Farmers did not know the price. The only distribution channel for farmers was to sell their soybeans to a CA in Mandi. Farms brought soybeans to Mandi and they needed to wait few days to get into markets. Then CA weighed the soybeans. Because of the inaccuracy of the scales, farmers got 0.5% loss and received the lowest and delayed pay. After a CA procuring the soybeans, it brought them to an ITC processing facility and ITC would pay for the soybeans.
Old Information Flows
Farmers used traditional Choupal to share knowledge and capture information. The Choupal just had been limited to verbal communication. Due to isolation of farmers, news was hard to spread and it took a long time to reach other village. Cash flow prevented the farmers from creating a sound financial base. Farmers could not obtain the weather report and price information.
New Physical Flows
Due to eliminating the Middlemen, farmers could sell soybeans directly to ITC. ITC weighed beans on a computerized weighbridge. After weighing the beans, farmers immediately and fairly received cash. Moreover, ITC based on the time and fixed freight-cost parameters repaid farmers. ITC also made some experience such as restroom facilities, purchasing soybean oil,...

Other assignments on Economics

Economics Essay

595 words - 3 pages | Business will go up and cotton will be sold more. | Price decrease and quantity increase. | Technology improves efficiency in pasta manufacturing | The company that produces the pasta manufacturing. | More pasta will be produced. | Price will decrease and quantity will increase. | * 1. What do substitutes refer to in economics? Give an example of two substitutes. Substitutes are when you have two goods and the price in one increases then

Basic Economics Essay

305 words - 2 pages Polanyi’s embedded economy notion indicates a person or a group of people participating in daily rituals that incorporate economics; their practice of economics is camouflaged in a social institution morally sought out by their personal beliefs. At the simplest level, economics is the distribution and production of goods. When an economic institution is embedded in a noneconomic institution, people do not think about the production and

Mamagerial Economics

618 words - 3 pages University of Dhaka Department Of Management Information Systems (MIS) Term paper On Managerial Economics Course Code: EMIS 505 Submitted to: Md. Abul Kashem Submitted by: Nadia Shahrin Chandni Student ID: 61323016044 Abstract Verifying consistency of empirical data is the motto of this paper. Data of four different kinds of businesses –Soft drink, Refrigerator, Paint and Life Insurance Premium- have been tasted

Managerial Economics

2645 words - 11 pages Examination Paper of Managerial Economics IIBM Institute of Business Management Subject Code-B-106 Examination Paper Managerial Economics Section A: Objective Type (30 marks)    This section consists of multiple choices & Short notes type questions. Answer all the questions. Part one carries 1 mark each & Part two carries 5 marks each. MM.100 Part one: Multiple choices: 1. It is a study of economy as a whole. a. Macroeconomics b

Economics Paper

1646 words - 7 pages housing near proposed downtown NFL Stadium; Daily News-Los Angeles >Lee, Soonhwan: A Review of Economic Impact Studies on Sporting Events. www.thesportjournal.org >Green, Miranda. (Jan 15, 2013); L.A. hopes to Ignite Economic Growth by building Tenantless Football Stadium; www.thedailybeast.com >Siegfried, John and Zimbalist, Andrew; The Economics of Sports Facilities and their Communities; www.uwlax.edu; (Beade, Robert; Stadiums-Professional Sports and Economic Development Assessing the Reality; Heartland Institute; Policy Study; 1994); (Walden, Robert; Don’t Play Ball; Carolina Journal; October/November, p 23; 1997)

Managerial Economics

2736 words - 11 pages MANAGERIAL ECONOMICS: SECTION A: PART ONE: MULTIPLE CHOICES: 1. A-MACRO ECONOMICS 2. C-DEMAND FUNCTION 3. B-ARC ELASTICITY 4. B-CONSUMER GOODS 5. C-THE INDIFFERENCE CURVE 6. A-FUTURE COSTS 7. C-EQUILIBRIUM 8. B-GROSS NATIONAL PRODUCT 9. B-PRODUCT APPROACH 10. C-GDP PART-TWO: 1. Concept of Demand Schedule: The inverse relationship between the price and the quantity demanded for the commodity per time period is called as the demand

Economics

339 words - 2 pages One of the first schools which studied economic growth and development in El Salvador is a school of Modernization. Among the fathers and greatest supporters of the theory of Modernization we may first of all name Simon Kuznets and his colleague from U.S. Walt Rostow. They believed that, from a quantitative statistical viewpoint, factors that are integral to the modernization perspective would be solely economic. Namely they are made up by Gross

Economics

285 words - 2 pages Axia College Material Appendix D Air Pollution Chart After reviewing Ch. 8 and 9 of your text, complete the following table, then respond to the questions that follow: |Issue |Sources |Health/Environmental Effects | |Carbon dioxide (CO2) |Carbon Oxides |Affects Global Warming

Economics - 414 words

414 words - 2 pages In a short-run production function, total product, average product, and marginal product changes as total product and labor increases. The total product increases rapidly up to 6.666 units of labor. This means that marginal product is increasing over the range of production when one additional unit of labor is added. While total product is increasing between 6.666 units of labor and 14 units of labor marginal product is decreasing. When a total

Economics - 949 words

949 words - 4 pages C5 Economic Environment of Business Assignment 1(20% weightage) INSTRUCTIONS a) This assignment covers Unit 1 and Unit 2 of the course materials. b) This assignment contains Part A Case Scenario and Part B application questions. Answer ALL questions in Assignment 1. c) This assignment contributes 20% towards final grading for this course. d) This is an individual assignment. No duplication of work will be tolerated. Any plagiarism or collusion

Economics - 2233 words

2233 words - 9 pages Econ 101: Intro to Microeconomics Spring 2012, Handout 8 Solutions More on Monopolies 1. A monopoly faces a market demand curve given by P = 42 − Q. Its marginal cost curve is given by M C = Q. (a) Find an equation for the marginal revenue curve. Graph market demand, marginal revenue, and marginal cost for this monopoly. Double the slope of the demand curve to get the MR: M R = 42 − 2Q. The graph should show a line twice as steep as the

Similar Documents

Economics Essay 1039 Words

1039 words - 5 pages Supply & Demand Paper Economics How this whole world runs is based on the economics from country to country. Economics is the cause and effect of everything from; unemployment, bankruptcies, corporations going under, individual consumers, and the list goes on and on. Every aspect of business and society is related to economics. With economics lie 3 central problems: what to produce and how much, how to produce it, and who do you

Economics Essay 1677 Words

1677 words - 7 pages 1.) Write an essay on the assumption of the “Rational Self Interest”. Make sure that you touch on each of the three components of this assumption that we discussed in class. Comment on the relevance of this assumption in our daily lives. Economics is defined as how we make choices with scarce resources to obtain our own needs, wants and desires. The Assumption of Rational Self –interests tells us that the definition of rationality means not

Economics Essay 381 Words

381 words - 2 pages Thomas Sowell’s interview on basic economics covered many issue such housing crises, high Taxations, spending 17 % of our GDP on healthcare, trade balance, and currency threats in the future. His main focus was the negative side effects of government intervention in a capitalistic market that can lead to downfall of an economy such as the housing crises in 2008. Thomas Sowell wants to limit government intervention and promotes free trade, the

Economics Essay 566 Words

566 words - 3 pages Price Legalization and Marijuana Consumption By: Mert Daryal (University of Western Australia) Undergraduate Journal of Economics The paper analyzed the effect of legislation on the consumption of marijuana. Methodology • Application of demand theory to illicit commodities to analyze the effect of legalization • Specially conducted survey of first-year students at the University of Western Australia to estimate effects of legalization and a