Business Studies Paper on Efficiency and Adaptation

Efficiency and Adaptation

Part I: Economics of Species Relationships

The symbiotic correlation linking the Ethiopian wolves and gelada monkeys is a unique one. Research has shown that these two species help each other when hunting for their food. The monkeys show little concern when the gelada wolves enter in their herd. This relationship between the species has helped ensure that each of them benefits from it. Gelada monkeys live in the Ethiopian’s grasslands and mostly graze on grass and seeds in large flocks. On the other hand, Ethiopian wolves feed on mammals such as rodents that live in the territory of the monkeys.

Benefits

The wolf hunting sessions are mostly successful when the monkeys (Luntz, 2015) accompany them. This is because the monkeys help flush out rodents from their hiding places which the wolves feed on. Additionally, the rodents compete with the monkeys for the major food sources and thus when the wolves feed on them; they benefit the monkeys since their competitors reduce. Because of this relationship, the two species will continue multiplying in long run.

Costs

Both the monkeys and the wolves have to incur some costs to ensure their symbiotic relationship remains. Wolves have to sacrifice and not jeopardize the monkeys by eating them since they help them spot the rodents without being seen by them. On the other hand, the monkeys have to ensure they accompany the wolves during the hunting sessions to ensure they are secure from them.

Scarce Resources

The relationship between these two species will change if the resources become scarce. This is because the wolves would take the opportunity and start eating the young geladas. This would make the species become rivals and the monkeys would run away from the wolves (Luntz, 2015).

Part II: Case Study: Production Costs for Kodak

Costs

Variable costs are those costs that vary depending on a firm’s production volume. Variable costs incurred by the Kodak business include; packaging cost, operating and the non-operating costs. As the company produces more imaging products, packaging cost increases. Additionally, the operating cost includes the entertainment costs, office supply costs, salary and wages, sales and marketing costs among others. On the other hand, the non-operating costs include the interest expenses on a loan. Fixed costs include the rent, insurance, and office supplies, which remains constant regardless of the output. Long run costs are incurred when the firm changes its production levels in order to realize its targeted profits. Long run costs include the cost of expanding a company, cost of entering a market, and the cost of changing the production level (Tjader, et al., 2014).

Competition and the Shut-down Decision

The business faces competition from Fujifilm, which entered the U.S. market and provided low priced films and supplies (Lucas & Goh, 2009). Fujifilm won the sponsorship rights and started taking the market share from Kodak. Fuji firm provide specialty transparency films which competed with Kodak’s Kodachrome. Additionally, Fuji competitive edge in higher negative films helped within a tighter grain structure. Kodak would consider shutting down if its revenue received from the sale of the imaging products could not take care of the fixed expenses of manufacture. In such a case, the company would incur great losses when producing as compared to when it is not in production. Additionally, for a firm to continue operating, the total revenue must be greater than the total cost. 

Parallels in the Business World

Kodak would be successful if it adopted a mutually beneficial relationship like that of the organisms in the wild (Najaf, Najaf & Shah, 2017). A similar interaction to that of the cattle and the antelopes would develop when Kodak competes for the resources and customers with other firms producing the same imaging products like Fujifilm a partnership develops. Additionally, if Kodak collaborates with the camera manufacturers we expect that both of them will benefit from the partnership. Kodak will buy cameras from the manufacturers and on the other hand, the camera manufacturers will get higher profits from the sales of the cameras. Just like the monkeys and the wolves benefit each other because of their symbiotic relationship, so will the Kodak and the camera manufacturers benefit.

References

Lucas, H. C., & Goh, J. M. (2009). Disruptive technology: How Kodak missed the digital photography revolution. The Journal of Strategic Information Systems18(1), 46-55.

Luntz, S. (2015). Symbiotic Partnership Between Monkeys and Wolves Discovered IFLScience. Accessed on July 17, 2017 at http://www.iflscience.com/plants-and-animals/monkey-wolf-symbiosis/

Najaf, R., Najaf, K., & Shah, I. H. (2017). STRATEGIC ALLIANCES FOR INTERNATIONAL BUSINESS AND GLOBAL COMPETITION. Business and Management9(3), 287.

Tjader, Y., May, J. H., Shang, J., Vargas, L. G., & Gao, N. (2014). Firm-level outsourcing decision making: A balanced scorecard-based analytic network process model. International Journal of Production Economics147, 614-623.

Wang, J. L. (2014). Cost Accounting for Decision Making.