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Developing Good Business Sense


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									                                        Business Sense 1

  Developing Good Business Sense

          Connie Reynosa

Axia College of University of Phoenix
                                                                              Business Sense 2

       The three companies I choose are: McDonalds, Macys, and Microsoft. These

three companies revolve around three different services and products but, similar

principles in business. McDonalds’ employees have tasks that include cooking, cleaning,

and taking orders. McDonalds’ philosophy has been about a strong combination of

quality and quantity. McDonalds main objective is provide foods in the most time and

quality efficient way to its customers. The employees need quickness so the customer can

receive his or her food fast. The employees also uphold a philosophy of cleanliness which

includes clean food and a clean environment.

       Macys’ employees also uphold a philosophy of cleanliness as well as neatness.

Employees of Macys are usually attractive and dressed professionally. The customer

service is also outstanding; for they make sure the customers help them find right type of

clothing. Macys’ main objective is to provide quality clothing and being a retailer, it

marks up the price on the clothes they receive from their suppliers. The clothes they sell

are brand name and usually endorsed by celebrities.

       Microsoft’s philosophy is of innovation. Microsoft makes sure its customer

receives the best software to facilitate efficiency in their personal and business life. They

have made it a mission to compete against other software makers by having Microsoft

provide quality products. The employee’s tasks are to always be ahead of the curve and

improve technology to enhance everyone’s lives.

       All three companies make sure they have employee’s work hard to promote the

greatness of the companies and its brand. Employees are updated on new ideas so they

can enhance customer service and result in higher profits and a stronger customer base.

The OMM costs do differ since they are in very different industries. McDonalds OMM
                                                                                 Business Sense 3

costs might include food supplies usually import goods, cheap labor costs since many are

young and replaceable, and the distribution costs are much more efficient given their

franchising. Macys OMM costs include inventory costs which include clothing, cheap

labor since many can be easily trained, and cheaper distribution costs given the

innovation of online shopping. Microsoft’s OMM costs include higher labor costs since

many are highly educated and demand more work, its suppliers are cheaper since many

technology parts are imports, and cheaper distribution costs since online shopping has

become readily available.

        These costs affect the companies and because of it many have found ways around

it to reduce it. I know that McDonald’s suppliers are from out of state and thus creating

higher profit margins being that the costs of food are much cheaper. The problem the

company could face is the safety of its foods. There have been many controversies of

food poisoning and mainly coming from foods overseas. Macys’ high costs might come

from high inventory. Macys has lots of clothes that does not sell and what they do is to

sell it cheaper to other retailers. This reduces loss on their clothing that does not sell.

Microsoft’s high costs might come from its labor since many are well qualified and

highly educated employees. The employees get paid high salaries to deliver better service

by programming better software. A method Microsoft has used to reduce costs of labor is

outsourcing. Many jobs, especially technological jobs have been outsourced to countries

like India. The people of India work for cheap and thus reducing Microsoft’s costs. The

problem that can arise is the unsatisfied customers because of language barriers India

workers have dealing with customers from America.
                                                                             Business Sense 4

       Each and every one of the companies mentioned has their specific methods to

dominating their market and getting the competitive edge. The one thing in common is

that each and every one of them has become consistently successful in their field.

McDonalds’ use of franchising, real estate ownership, and stock market leverage has

made the company very profitable and dominating. They are now expanding in other

countries and become a well known brand in the area of fast food. It is safe to say they

are the big whales in the industry of fast food. Macys’ are also successful with the use of

real estate ownership and stock market leverage. They are successful because their

leverage with brand name clothing endorsed by well known celebrities. The celebrities

help provide the marketing for the store, and it’s become the norm to find the best and

latest clothing at Macys. Microsoft is extremely successful since they have dominated the

market in providing the operating software for literally 99% of all PC users. There are

other operating system but not as dominate as Microsoft. They provide a product and

service that use the leverage of great distribution through the negotiations of PC makers,

and stock market. It is a well known company that conquered the area of software

                                                     Business Sense 5


McSpotlight. Retrieved May 10, 2009, from


About Microsoft. Retrieved May 9, 2009, from


Macys. Retrieved May 9, 2009, from


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