Weekly Discussion Question – (25 points)
Situation:
For this discussion question, you should once again consult chapter 10 of your book wherein we specifically address issues related to price. For this discussion question, please define the concept of price and then describe how the price is impacted by concepts like suppliers, governmental influences, and the overarching impacts of outside factors like the bidding process. Make sure as you respond to this definition you identify how the concepts of price and all of these various elements can or should have an impact on your work as an ASDG consultant with Highpoint Barnie.
Weekly Discussion Question
The price is the amount of money that has to be paid to acquire a given product. In so far as the amount people are prepared to pay for a product represents its value, price is also a measure of value. A price is the quantity of payment or compensation given by one party to another in return for goods or services. It can be said that the process is the total amount of money that is given to the person in exchange for the product and the services in which we take place. A price is the quantity of payment or compensation given by one party to another in return for goods or services.
The price is impacted by concepts like suppliers, governmental influences, and the main impacts of outside factors like the bidding process.
Price impact by the supplier
The price is getting impacted by the suppliers. It can be said that the price of the product gets changes according to the rates of the supplier of the raw material or the product. So, the issue related to the process takes place as the supplier changes the prices (Bakas & Triantafyllou, 2020, p.5). The suppliers are the important or the initial part of the organization without which the product cannot be converted from the raw material into the finished product as well. The price of the commodity depends on the price which is charged by the supplier. The supplier takes the higher or lower prices of the commodity according to the availability and the demand in the market. The more prices charged by the supplier, the more changes and the increase in the price take place in their organization.
It can be said that the price changes by the supplier hurt my work as due to the increase in the price various customer has chosen alternative option and I have to sell the remaining items at the fewer prices which leads to loss.
Price impact by the governmental influences
Governments influence the economy by changing the level and types of taxes, the extent and composition of spending, and the degree and form of borrowing. It can be said that due to the government influencers the impact on the prices takes place as well. The factors due to which the government influences the prices are taxes. The changes in the taxes of the commodity in the organization led to changes in the prices as well. The prices of the commodity change as the prices of the taxes increase or decrease. With the changes in the prices of taxes on the commodity the changes in the prices also take place. It can be said that government influences the prices.
The influences of the government can be said that it has a positive and a negative effect on my work. The positive is that if the tax on the nay items is decreased it means that more consumption can take place and people will be more interested in that particular product than those of that which have more prices as compared the others as well (Alquist, Bhattarai & Coibion, 2020, p.45). So, it can be said that my work got impacted by governmental influences as the changes in the taxes and the other changes in the products led to the changes in the requirement of the product all; of a sudden which impacted the work in a negative way more than the positive ways.
Price impact by the bidding process
The bidding process is a method to select the most suitable service provider or supplier, by comparing proposals against specific criteria. There are times when product owners, clients, or project teams need to outsource services or purchase goods to fulfill project deliverables. The bidding process has one overriding objective: the selection, award, and signing of a contract with the bidder having submitted the proposal that best meets the objectives of the government and/or the best deal for users. It can be said that the bidding process impacts the process/ The price here is the initial thing in the bidding process. All the things here are depending on the prices of the bidder the good price the bidder give is that advantage and if the product is sold at a less price, then it is a disadvantage for us as well. So, this can be said that the price is effect affected by the bidders (Boubakri, Guillaumin & Silanine, 2019, p.215).
Accordingly, it can be said that it has a mixed effect t on the work and as it can be seen that the major part is positive and the more the price is paid the more the advantage it is in the work as well.
References
Alquist, R., Bhattarai, S., & Coibion, O. (2020). Commodity-price comovement and global economic activity. Journal of Monetary Economics, 112, 41-56.
Bakas, D., & Triantafyllou, A. (2020). Commodity price volatility and the economic uncertainty of pandemics. Economics Letters, 193, 109283.
Boubakri, S., Guillaumin, C., & Silanine, A. (2019). Non-linear relationship between real commodity price volatility and real effective exchange rate: The case of commodity-exporting countries. Journal of Macroeconomics, 60, 212-228.
