http://ca.news.yahoo.com/s/capress/091013/business/noveko_1
Summary
The article I read about states that hand sanitizers and masks are in high demand. These masks and sanitizers are used for protection from the H1N1 virus. Because of the high demand of masks and sanitizers, Noveko International Inc. is trying to make enough to supply the demand, while still competing with other companies. At the end of September, there were about 50 million masks that were ordered from firms. By 2010, Noveko expects that about order of 50 million masks and sanitizers will be placed. Around nine million masks are made per month and Noveko is hoping to increase the production of the masks. The company also have other competitions such as 3M, Kimberly-Clark, and Johnson & Johnson. Noveko’s masks are made with “antimicrobial air filtration”. These masks can trap, and then neutralize the bacteria and viruses unlike other masks. If they do not supply enough masks, then consumers will then buy from other competitors.
Connection
Chapter two of the textbook concentrates on the supply and demand and the factors that can change the supply and demand. This article talks about what can happen when the company does not supply enough masks and sanitizers for those who want to protect themselves from the H1N1 virus. If Noveko cannot produce enough of these masks, then consumers will find a substitute product. In the article, it mentions that the materials used to make the masks are from the United States and then the masks would be created in China. This clearly shows that production cost is affecting the supply. If the supplier of the materials were to increase the price, then it may influence the price of the masks.
Reflection
In this article, it makes me more aware of how factors in supply can have an effect on other competitors’ products such as the fact that there isn’t enough supply of the masks to go around, consumers will be willing to find substitutes. Because they are not supplying enough masks and sanitizers to meet the demand of the world, then they will be losing some finance. The demand of the masks will probably go down because there are not enough and consumers may just settle for the competitors’ brand even if their masks do not have the technology to neutralize the bacteria and viruses. I feel that Noveko International Inc. should find a solution to the high demand of their products, while their supply is not enough to meet the number of people requesting the products. By solving the problem, consumers will be satisfied and won’t have to settle for substitutes.
Tuesday, October 13, 2009
Thursday, September 17, 2009
Chapter 1 Blog- Scarcity
http://www.cbc.ca/world/story/2009/09/13/guatemala-food.html
Summary
In this article, it mentions that many families in Guatemala are suffering from the scarcity of food. Due to dry weather and insufficient soil, this has made planting corn and bean crops difficult in the east. Six provinces in the dry corridor, which is a region that has had a lack of rainfall in months, are suffering the effects of the food shortage the most. It has been said that at least 54,000 families are afflicted by the food scarcity and around 25 children have perished from malnutrition in this region. Red Cross is trying to come up with a plan in order to handle this scarcity before appealing to the world for finance.
Connection
The article connects to the chapter one because in both cases, scarcity of resources is talked about. As mentioned in the chapter, resources can become scarce by constantly using the resources or the condition of the weather. Like food and crops, there is a limited quantity. In chapter one, there's an example stating that farmers have a certain amount of land that they have to grow their crops. Besides having restrictions on the availability of land, they need to decide which crops will be planted. In Guatemala, many of the crops failed to grow, so time and money spent growing the crops is wasted. Many citizens are in need of food and are desperate to survive, but because there is a low supply of food from the insufficient soil and the lack of water, the citizens are suffering from hunger. Even though there are countries such as Canada with plenty of resources which are taken granted for, there are those who are suffering from the shortage of resources.
Reflection
While reading this article, I think it allows others to realize that even though we may feel that we have an abundant supply of a certain resource, it will not last forever; therefore, we need to be conscience of what we use. It is tragic that many families in Guatemala are struggling to survive each day. Because families are having difficulties purchasing enough food, many children are suffering from malnutrition. I think what the Red Cross is doing is admirable; and, their idea of figuring a way to deal with the food scarcity before trying to address the world for funds is a great plan because by figuring out a way to solve the food shortage, it will help the citizens. When the food shortage is solved, then problems such as the decrease in exports and revenues and failed crops will be dealt with. By reading this article, it has made me more aware that resources are scarce, even though there seems to be an endless supply of it.
Summary
In this article, it mentions that many families in Guatemala are suffering from the scarcity of food. Due to dry weather and insufficient soil, this has made planting corn and bean crops difficult in the east. Six provinces in the dry corridor, which is a region that has had a lack of rainfall in months, are suffering the effects of the food shortage the most. It has been said that at least 54,000 families are afflicted by the food scarcity and around 25 children have perished from malnutrition in this region. Red Cross is trying to come up with a plan in order to handle this scarcity before appealing to the world for finance.
Connection
The article connects to the chapter one because in both cases, scarcity of resources is talked about. As mentioned in the chapter, resources can become scarce by constantly using the resources or the condition of the weather. Like food and crops, there is a limited quantity. In chapter one, there's an example stating that farmers have a certain amount of land that they have to grow their crops. Besides having restrictions on the availability of land, they need to decide which crops will be planted. In Guatemala, many of the crops failed to grow, so time and money spent growing the crops is wasted. Many citizens are in need of food and are desperate to survive, but because there is a low supply of food from the insufficient soil and the lack of water, the citizens are suffering from hunger. Even though there are countries such as Canada with plenty of resources which are taken granted for, there are those who are suffering from the shortage of resources.
Reflection
While reading this article, I think it allows others to realize that even though we may feel that we have an abundant supply of a certain resource, it will not last forever; therefore, we need to be conscience of what we use. It is tragic that many families in Guatemala are struggling to survive each day. Because families are having difficulties purchasing enough food, many children are suffering from malnutrition. I think what the Red Cross is doing is admirable; and, their idea of figuring a way to deal with the food scarcity before trying to address the world for funds is a great plan because by figuring out a way to solve the food shortage, it will help the citizens. When the food shortage is solved, then problems such as the decrease in exports and revenues and failed crops will be dealt with. By reading this article, it has made me more aware that resources are scarce, even though there seems to be an endless supply of it.
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