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4 Things the consumer needs to know Sample

4 Things the consumer needs to know Sample - with Hon Hai...

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Things the consumer needs to know Sample To fully understand the article there are many business terms, the reader must understand. “A service is an intangible product that can’t be held in your hand” (Nickels 4). Sony plans to have an online service to help customers with any problems that they experience with their products. “Loss is when a business’s expenses are more than its revenues” (Nickels 5). Sony is experiencing a loss in its company because there are too many production plants spread out with different costs of production. “Risk is the chance an entrepreneur takes of losing time and money on a business that may not prove profitable” (Nickels 5).Sony is taking a chance by working with Hon Hai in hopes that the business will be more profitable. “A vertical merger is the joining of two companies involved in different stages of related businesses” (Nickels 129). Sony combining
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Unformatted text preview: with Hon Hai is known as a vertical merger because Hon Hai would give Sony a constant supply of LCD panels that are needed in the production of a television. “Profit is the amount of money the business earns above and beyond what it spends for salaries and other expenses” (Nickels 5). Sony is trying to increase their profits by selling plants in places where production costs are high and are combining with the company Hon Hai to produce their products more efficiently. “Outsourcing is contracting with other companies to do some or all of the functions in a firm” (Nickels 6). Sony is outsourcing it production of its products with Hon Hai because they can produce televisions with the lowest amount of expenses....
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