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tiny-mole [99]
3 years ago
12

2. What is Amazon’s core business? Is AWS related to Amazon’s core business? Why or why not? Some investors are pressuring Jeff

Bezos to spin out AWS as a standalone company. Do you agree with this corporate strategy recommendation? Hint: Do you believe AWS will be more valuable within Amazon or as a standalone company?
Business
1 answer:
andriy [413]3 years ago
4 0

Answer:

Amazon's core business is Retail Trade and E-commerce.

AWS does not complements Amazon's retail arm however AWS powers the cloud infrastructure the e-commerce operations runs on.

I believe AWS will be better of on its own.

Explanation:

Amazon originally started out as an online marketplace for Books and later included other consumer items like electronics, foods, toys, software etc. It has consistently grown this aspect of its business and even surpassing other online retailers. It acquired an equally big retailer <u>Whole Foods Market</u> to establish its presence as a Brick and Mortar shop.

The homepage of its main website Amazon.com still displays retail items for sale.

AWS - Amazon Webs Services is the cloud computing arm of Amazon that provides digital storage, cloud infrastructure, database and virtual computing needs to all categories of users - governments, companies, technological companies and individuals.

AWS has recently emerges as Amazon's highest operating income earner within the group.

Spin or dont spin:

A major reason for the spin is identity and brand effectiveness. Both business units[Retail & Cloud] do not co-relate. In-fact they are two opposite sides. While the e-commerce unit deals in physical products, physical deliver, live customer interaction in most cases. AWS is a complete virtual world where almost every activity is done behind the screens.

Also noteworthy is that Amazon's retail arm is majorly situated in North america while AWS is more of an international brand providing services to users all over the world.

The two businesses are operating in different climes and business operating environments and as such it is recommended both should exist as separate entities

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At the current steady state capital-labor ratio, assume that the steady state level of per capita consumption, (C/N)*, is greate
Blizzard [7]

Answer:

C) a reduction in the saving rate will have an ambiguous effect on (C/N)*

Explanation:

The steady state consumption refers to the difference between how capital wears out or depreciates vs total output. In order to keep a steady state consumption, the savings rate (which equals investment) must be enough to replace any worn out or completely depreciated capital.

Since the consumption rate is already higher than the steady state consumption, the effect of a decrease in the savings rate is ambiguous. Every dollar earned by a household is either spent or saved, and in order for savings to decrease, spending must increase.

But in this case, the spending level is already too high. A decrease in savings should increase consumption but the effects of the increase in the capital labor ratio and the per capita consumption are not certain.

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3 years ago
What's pricing strategy
Sedaia [141]

Answer:

<em>A pricing strategy takes into account segments, ability to pay, market conditions, competitor actions, trade margins and input costs, amongst others. It is targeted at the defined customers and against competitors.</em>

Explanation:

A business can use a variety of pricing strategies when selling a product or service. To determine the most effective pricing strategy for a company, senior executives need to first identify the company's pricing position, pricing segment, pricing capability and their competitive pricing reaction strategy

7 0
3 years ago
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Hello everyone! I'am new over here!<br>May I have some friends?<br>(Indian☺️)​
Ipatiy [6.2K]
This is an education app... thanks for the points tho lol
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3 years ago
The higher the degree of financial leverage employed by a firm is, the: A. Higher is the number of outstanding shares of stock.
horsena [70]

Answer:

Option B,

The higher the degree of financial leverage employed by a firm, THE HIGHER THE PROBABILITY THAT THE FIRM WILL ENCOUNTER FINANCIAL DISTRESS.

Explanation:

The degree of financial leverage (DFL) is a leverage ratio that measures the sensitivity of a company's earnings per share to fluctuations in it's operating income, as a result of changes in its capital structure.

This ratio indicates that the higher the degree of financial leverage, the more volatile earnings will be.

The use of financial leverage varies greatly by industry and by the business sector. There are many industry sectors in which companies operate with a high degree of financial leverage (examples are retail stores, grocery store, banking institutions, airlines...). Unfortunately, the excessive use of financial leverage by many companies in this sector has played a major role in forcing a lot of them to file for bankruptcy.

Therefore, if the degree of financial leverage employed by a firm is high, then the probability that the firm will encounter financial distress will also be high.

3 0
3 years ago
Marc, a single taxpayer, earns $60,000 in taxable income and $5,000 in
lesya692 [45]

Answer:

Federal tax = $10,856.25

Explanation:

Given:

Tax rate schedule for year 2014.

Income between  $36,900 - $89,350

$5,081.25 + 25% over $36,900

Total income = $60,000

Computation:

So,Income between  $36,900 - $89,350

Federal tax = $5,081.25 + 25% ($60,000 - $36,900)

Federal tax = $5,081.25 + 25% ($23,100)

Federal tax = $5,081.25 + 0.25 ($23,100)

Federal tax = $5,081.25 + $5,775

Federal tax = $10,856.25

4 0
3 years ago
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