Mondavi Case - 1273 Words

Case 3 Robert Mondavi and the Wine Industry 1) Evaluate the structure of the global wine industry? How and why is that structure changing? What threats do these changes present for Robert Mondavi? The structure of the wine industry is quite different around the world. The barrier to entry is relatively higher in the New World than in the Old World. Referring to the market data on the level of concentration in 1998, people can see a few players dominate the markets in Australia and the U.S. while the level of concentration is quite low in Europe. Therefore, the rivalry in Old World is intense there. The Old Market consumers are more sophisticated and price sensitive than those in the New World. The main sales channels†¦show more content†¦Its bread and butter products face severe competitions. Woodbridge, for example, contributes to 57% of Mondavi’s total revenue but the competitors such as Gallod or Beringers’ are trying to penetrate into the market with aggressive prices and new brandings. Also, the competitors are spending money for marketing and promotion activities in sophisticated ways while Mondavi revamped its marketing messages recently. 2) How attractive are the economics of owning a vineyard of 100 acre in Napa Valley? Would you invest in such a venture? And why or why not? It depends on what types of products one plans to produce using the land. Since the winery business requires high investment in real property, it is important for one to make an investment decision on what market segment it wants to play in. Napa Valley is widely known as a good place for staring a vineyard and the land price is relatively higher than anywhere else in the US. The initial investment would affect the cost structure, which eventually drives up the price of wine. For example, budget wine consumption is very price sensitive and some competitors are trying to maintain their competitiveness with a lower price. If a company decides to produce wines from the winery in Napa Valley, soon, it would be forced to put a premium on the wine price to maintain a level of margin and ,eventually, the company would lose its competitive edge if it is a price player. However, for aShow MoreRelatedMondavi Case Analysis1152 Words   |  5 PagesIdentification: Overview of current situation: Making wine is nothing else but a touch of passion, love and few drops of magic. From the first view, wine industry seems very artistic and secret at the same time. There is no doubt that hearing that Robert Mondavi Corporation is going to layoff 4% of its workforce ring the bell to the investors, at the same type the stock price dropping down dramatically makes an impression that the company is going through difficult period as the senior management is uponRead MoreCase Study: Robert Mondavi Corporation5619 Words   |  23 Pages1. EXECUTIVE SUMMARYÂ…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…..5 2. BACKGROUND OF THE CASE STUDYÂ…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â….6 3. ANALYSIS IMPLICATIONS OF PORTERS FIVE COMPETITIVE PRESSURESÂ…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…Â…..7-17 3.1. The Potential Entry of New Competitors 3.2. Competitive Pressures from Substitutes Products 3.3. Bargaining Power of Buyers 3.4. Bargaining Power of Suppliers 3.5. The Rivalry among Competing Sellers 4. ANALYSIS OF THE STRATEGIC GROUP MAPPINGÂ…Â…Â….18-20 5. KEY SUCCESS FACTORS OF THE WINE INDUSTRYÂ…Â…Â…21-23 5.1. World famousRead MoreRobert Mondavi Case Study3082 Words   |  13 PagesStrategy Analysis on â€Å"Robert Mondavi and the Wine Industry† Robert Mondavi and the Wine Industry The following case study analysis the past success of Robert Mondavi (RM) as a Californian wine maker and the changes in the wine making industry that resulted in struggles, threat and – lastly – the takeover of the Mondavi Winery (MW) by Constellation Brands in 2003. In addition, it will provide some thoughts on strategic moves to enhance the future success of the MW. A. Analysis of Past Success Read MoreRobert Mondavi Case Review Essay3115 Words   |  13 PagesRobert Mondavi Case Review Robert Mondavi Corporation Robert Mondavi began making wine in Napa Valley in 1943. He started working in the wine industry with his family. He later started his own winery in Oakville, California. Mondavi, along with his two sons, Michael and Timothy, would guide the Robert Mondavi Winery to the strong position the company enjoys today. Mondavi introduced many new techniques to the California wine industry that included cold fermentation, stainless steel tanksRead MoreRobert Mondavi and the Wine Industry Case Analysis2143 Words   |  9 PagesExecutive Decision Making Strategic Analysis Robert Mondavi and The Wine Industry, HBS 9-302-102 (Case 1) Post-Class Analysis Individual Assignment Student: à lvaro Toro I. Executive Summary On May 2001, Michael Mondavi took over the position of chairman of Robert Mondavi Company, as well Greg Evans assumed as CEO. They company was founded in 1966, and has became one of the world’s finest and most innovative winemakers, currently having sales for 480 millions, and firm’s marketRead MoreEssay on Strategic Analysis of Robert Mondavi Inc.2799 Words   |  12 PagesRobert Mondavi Corp. Analysis I. Summary #61607; Company founded in 1966 by Robert Mondavi in Napa Valley, California #61607; Company vision to make California a recognized wine producing region alongside great winemaking regions of Europe #61607; Major focus on technology and wine growing techniques #61607; Production of premium to super ultra premium wines #61607; Mondavi focuses on personal sales, wine competitions, and lavish parties to promote the wines rather than conventionalRead MoreMondavi Procurement Management1959 Words   |  8 PagesMondavi Procurement Management Procurement is the complete process or action of acquiring or obtaining material, property, or services at the operational level, such as purchasing, contracting, and negotiating directly with the source of supply. Procuring goods and services is a larger process than just the label price of wine; the process to buy those items includes major organizational costs, often accounting for half of the product price. When allowing for the vast number of purchases MondaviRead More Robert Mondavi Corporation Essay5460 Words   |  22 Pages 1. EXECUTIVE SUMMARY†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..5 2. BACKGROUND OF THE CASE STUDY†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.6 3. ANALYSIS IMPLICATIONS OF PORTER’S FIVE COMPETITIVE PRESSURES†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..7-17 3.1. The Potential Entry of New Competitors 3.2. Competitive Pressures from Substitutes Products 3.3. Bargaining Power of Buyers 3.4. Bargaining Power of Suppliers 3.5. The Rivalry among Competing Sellers 4. ANALYSIS OF THE STRATEGIC GROUP MAPPING†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.18-20 5. KEY SUCCESSRead MoreMondavi Analysis1009 Words   |  5 PagesRobert Mondavi and the Wine Industry Analysis EXECUTIVE SUMMARY The Robert Mondavi Winery became one of America’s most innovative, high-quality winemakers in the late 1960s and early 1970s. There are over 1 million wine producers worldwide and no winery accounted for more than 1% of global retail sales. Because of this and the fact that there are many substitutes, there is an issue to try to gain economies of scale and become a leader in the wine market. Wine tends to stay it its local regionRead MoreMondavi Wineries - Strategy1081 Words   |  5 PagesI. Summary Mondavi Wineries intends to grow the company’s wine market share organically, without benefit of established wine acquisitions or joint ventures. An analysis of the industry and competition should help establish future strategic course. II.a. Barriers to Entry The industry contains excessive barriers to enter the wine production market. First, the wine industry requires quite an extensive amount of financial resources. In New World and European markets, costs of premium wine land

Motivation And School Applications Of Motivation - 839 Words

Motivation and School Applications Early theoretical models of motivation consider its source to be primarily instinctive (Schunk, 2012). The stimuli-response model of the behaviorist paradigm did not account for the cognitive aspects current theorists assert are intrinsic to the learning process (Martinez, 2010; Schunk, 2012). Behaviorism is the attempt to understand humans through observations of their actions rather than on a cognitive level and considers the learning process as a superficial construction between stimuli and responses (Bransford, Brown, Cocking, 2000; Schunk, 2012). The advent of cognitive sciences in the 1950s changed how learning was theorized and began to examine the importance of the social and cultural contexts of the learning process (Bransford et al, 2000). Behaviorism in the context of the learning environment may yield the transfer of knowledge but does so in a way reliant on the promise of external rewards (Schunk, 2012). While the use of extrinsic motivation and reward systems are widespread in learning environments to help maintain engagement and appropriate behaviors, it is also of high importance to foster and maintain intrinsic motivation in students so the reward is the learning experience and growth itself (Martinez, 2010; Schunk, 2012). The positivist climate in schools may make it difficult to cultivate intrinsically motivated students as test scores, peer comparisons, teacher praise, and promotion are all extrinsicShow MoreRelatedHigh School Students : A Interview At Alain Leroy Locke1615 Words   |  7 Pages For this paper, I decided to focus my attention on one population that I am potentially interested in working with, which are high school students. The first person I interviewed was a ninth-grade counselor at Alain Leroy Locke College Prepartory Academy. The second person I interviewed was a College Adviser, placed through USC, at Diego Rivera Learning Complex. While the first interview was conducted on site at Locke, the second interview was conducted on campus at USC. For both interviews, I cameRead MoreHigh School Students : A Interview At Alain Leroy Locke1616 Words   |  7 PagesBackground For this paper, I decided to focus my attention on one population that I am potentially interested in working with, which are high school students. The first person I interviewed was a ninth-grade counselor at Alain Leroy Locke College Prepartory Academy. The second person I interviewed was a College Adviser, placed through USC, at Diego Rivera Learning Complex. While the first interview was conducted on site at Locke, the second interview was conducted on campus at USC. For both interviewsRead MoreMaslow s Humanistic Hierarchy Of Needs And Then Followed By Ryan And Deci s Self Determination Theory1532 Words   |  7 PagesMotivation can be defined as â€Å"A driving force or forces responsible for the initiation, persistence, direction and trigger of goal related behaviour† (Colman. A. 2001) Motivation to do something can come about in many ways (Stipek 2002).Academic motivation may come from the intrinsic sources such as interest in the subject or lesson or from extrinsic sources, for example money rewards for good grades. In the essay I am going to firstly outline the key information from my case study and then proceedRead MoreReflection Paper On Psychology And Psychology1094 Words   |  5 Pagesdiscussion of the abstract subconscious. It was exposure to constructs affecting my daily emotions, thoughts, and stresses. The areas of Psychology that push me toward my future goals and explain who I am today are my nurture, growth mindset, and motivation. Seeking to make sense of my past, present and future, this essay was written. From the point of view of an outside observer, it is understandable one may not understand the childhood that has had a profound impact in my later years. My parentsRead MoreGraduation Speech : College Admissions1424 Words   |  6 PagesDuring a typical high school graduation, speeches are given by a select few, notable students. These notable students normally include the two students who earned the highest grade point averages out of all the students in their graduating class - the valedictorian and the salutatorian. Imagine a graduation, however, with no valedictorian or salutatorian speech. Imagine if there was no valedictorian or salutatorian. Imagine if there was no distinction of students academic performance during commencementRead MoreReadiness for Advance Practice Nursing Essay1229 Words   |  5 Pagespracticed for a year, and the following year I went back to school for a bachelor degree. Nonetheless, my journey also presented me with more compelling challenges. These challenges tested my passion for nursing, perseverance and decision making skills, which are essentials for advance learning. In this paper, I will use pertinent life experiences to show understanding of concept of motivation, excellence in performance and application of knowledge. I will also discuss how a successful integrationRead MoreEssay on The Role of Business Education in Secondary Schools738 Words   |  3 PagesThe Role of Business Education in Secondary Schools Education and Vocational Education have many roles in today’s schools. Vocational education focuses on the future employment of the student, by using practical application. Vocational education gives students the opportunity to learn with hands-on experience. This can help in several areas of gaining an education. Most notably, this gives the student the opportunity to find out if this is what they want to do. Students will get a real-world experienceRead MoreIt is difficult in a school setting to teach where students come to class each day not enthusiastic800 Words   |  4 PagesIt is difficult in a school setting to teach where students come to class each day not enthusiastic about what they are expected to do and without the basic foundation to perform the tasks. From a psychological perspective, student disengagement is associated with situational threats to feelings of competence, self-determination, and/or relatedness to valued others (Deci Ryan, 1985). Most studen ts enter kindergarten with a healthy curiosity and a desire to learn to read and write. By the endRead MoreMotivating Students From The Most Challenging Tasks Educators Face Today1259 Words   |  6 Pagesunderstand concepts, unsatisfaction with school, low self-esteem, and increased dropout rates from school (Gottfried, 2009; Ryan Deci, 2009). In recent studies of motivation, motivation can be seen affecting student’s memory and learning. These affects can have meaningful effects on learning in educational settings. Motivation is a theoretical construct used to explain individual’s internal drive that alters their behaviors (Martinez, 2010). Motivation involves biological, emotional, socialRead MoreARCS Model1616 Words   |  7 PagesMotivation in the Elementary Math Class: Implementing the ARCS Model of Instruction Student motivation has been acknowledged by scholars as a key component linked to academic success and a continuing challenge for educators (Keller, 2010 Murray, 2011). In fact, Linder, Smart and Cribbs (2015) cite motivation as being essential for student success in mathematical tasks. â€Å"Motivation refers broadly to what people desire, what they choose to do, and what they commit to do† (Keller, 2010, p.). It is

Entrepreneurship & Innovation-Free-Samples-Myassignmenthelp.com

Question: Discuss about the Entrepreneurship and Innovation. Answer: There are various definitions of entrepreneurship that has been given by the theorists. In general, entrepreneurship can be expressed as the process that deals with exploiting the market opportunities in order to develop a business in a unique and different way. R.Cantillona has defined entrepreneurship as self-employed. As per him the entrepreneur need to balance their activities according to the demands of the market. Another author J. Achumpeter has defined entrepreneurship as the vehicle that supports the economy of the place to move forward. Likewise many definitions of entrepreneurship have been proposed but entrepreneurship in total is regarded as the set of traits and that is required by the driver of the entrepreneurship that is entrepreneur (Drucker, 2014). There are several qualities that the leader should possess and one of the qualities is innovator. This makes innovations the basic element of entrepreneurship Entrepreneurship is the practice that can be practiced in the institution that is considered as the carrier of innovation. Innovation is the aspect that is very necessary in terms of performing something unique in the business and to attain the competitive advantages over the other businesses. Definition of innovation has always been a great topic of discussion amongst the researchers and the authors. It has been identified that the innovation can be defined differently or the different organisations as per their way of defining their activities. The ability of the person to innovate is always found to be important for the organisations to get success. This suggests that innovation is the subset of entrepreneurship. Drucker has defined innovation as one of the two basic functions of the organisations (Drucker, 2014). Mohr, on the other hand described innovation as the new change that can be implemented to the organisation. As far as the definition by Covin ?i Slevin, Lumpkin and Dess, Knox is considered, it has been analysed that innovation is the process that adds value to the organisation (Morris, Kuratko Covin, 2010). Other than these definition, there are many definition t has been postulated for innovation. In total, it has been analysed that innovation is the process to bring new and unique process or products to the organisation that adds value to the same and helps the entrepreneur to perform his entrepreneurial activities successfully. Drucker suggest that entrepreneurship always look for making changes and as per the definition of innovation, it is considered as the process of bringing the change thus these concept that are entrepreneurship and innovation are so much related to each other (Stevenson Jarillo, 2007). But have different types of benefits in the organisation. Entrepreneurship is the activity or the process to conduct the business activities and provides a path to conduct the same while innovation at the same time makes it unique to have competitive advantage. Innovation is itself a change while entrepreneurship is the process that is above recognizing that change. Entrepreneurship creates new business. It has been analysed that entrepreneurship results in development of the business that contributes in the economy (Bessant Tidd, 2007). Trailblazing contributions byentrepreneurs, in the form of new goods andservices,can produce a flowing effect byinspiringrelated businesses or sectors aiding the new venture,furthering economic development. Innovation is also the aspect that contributes in economic development. This is because innovation in the business helps the companies to enter the new market with competitive edge over other competitors. Entrepreneurship also helps in creating social change in the society and this is the major advantage of entrepreneurship (Schaltegger Wagner, 2011). By providing new and unique contributions of new goods and services, businesspersons break away from tradition and indirectly support independence by reducing dependence on out-dated systems and technologies. This leads to better life quality and the economic freedom to the society. Innovation at the same time help the business to have competitive advantage and serve the market with new and innovative product offerings that makes the life of the people very easy. As far as the comparison between the benefits of entrepreneurship and innovation is considered, it has been analysed that most of its benefits are very much related because innovation is termed as the sub set of entrepreneurship (Doganova Eyquem-Renault, 2009). Without innovation, entrepreneur cannot perform its functions effectively. Innovation is the base of every new business that enters the industry and it is the basic element that is required to attain the competitive advantage in the market. Innovation is about applying the creativity that leads to the development of new ideas and processes and entrepreneurship is applying the innovation in order to make it practical and meaningful so that those ideas can get the life. It is very important to learn about the relation between entrepreneurship and innovation. It has been analysed that both these terms are used at each others place by the people who are not clear with the differentiation between the two terms (Anokhin Schulze, 2009). As far as innovation is concerned, it has been analysed that it is related to invention of the product and the process that changes the proceeding concept of the same. It has been analysed that the link of entrepreneurship and innovation is difficult to be explain than it sounds. Various models are there that shows different relationship between entrepreneurship and innovation. It has been analysed that when both the concept are integrated, it results in successful business. A good idea and innovation is the tool that remains in the hands of the entrepreneur. This suggests that innovation is the single aspect of entrepreneurship (Windrum Koch, 2008). When the change in technology takes place, this leads to invention whi le when it includes the business activity hat it results in innovation. An entrepreneur performs the business activities in order to gain profit and growth and innovation is one of the characteristic of entrepreneur. Schumpeter suggests that entrepreneurship is the creative destruction. Creative destruction means the entrepreneur introduces the new idea and links the activities of the business to the economic growth and development of the country or the place where the company operates. Schumpeters theory of economic development is one of the theories that integrate entrepreneurship with innovation (Onetti, Zucchella, Jones McDougall-Covin, 2012). This is the theory that deals with circular flow. It has been analysed that any changes that needs to be implemented should be in the flow and these changes can only takes place with he helps of innovations and innovative practices. As per this model, innovation can be defined as the alteration in the processes or the products that already exist in order to make profits (Ketchen, Ireland Snow, 2007). According to this model, any innovation involves several factors such as introduction of the new products, introduction of the new process, opening of th e new market and gaining the competitive advantage in the industry. These are the factors that can be combined differently for the innovation process to start (Ketchen, Ireland Snow, 2007). These practices are practiced by some of the agents known as entrepreneurs. Entrepreneurs are the central figure in the model of Schumpeter. It has been analysed that conducting business activities are not the only job of the entrepreneur but it is required by him to make innovations in the process and the products. Various examples can be studied in order to find out the combination of innovation and entrepreneurship is UBER is the one of the great business examples that justified that innovation can helps in providing entrepreneurial success. It is the application based taxi company that provide taxi services to the customers. The company has launched its services in 2010 and now it is found to be in 200 cities (Szirmai, Naud Goedhuys, 2011). It is considered as one of the major threats and competitor for the other taxi services. The innovation is about connecting the driver and the rider by the application that is installed in the mobile phones. UBER also have the rating system in which the customers and the driver both have the facility to rate each other. It has been analysed that taxi services were there since years but launching a business with an innovation makes UBER interesting and successful (Trimi Berbegal-Mirabent, 2012). This suggests that entrepreneurship when coupled with innov ation results in success. However, it is required that the innovation should be accepted by the market. It has been concluded from the discussion that innovation can be defined as the process of generating new ideas by exploiting the resources available in the market while entrepreneurship is about implementing such innovative practices and ideas to give them life in order to earn profits and revenues. As both of these term are different but the differentiation is not that much clear in nature, however, the association and linkage of these concepts results in successful business as a whole References: Anokhin, S., Schulze, W. S. (2009). Entrepreneurship, innovation, and corruption.Journal of business venturing,24(5), 465-476. Bessant, J., Tidd, J. (2007).Innovation and entrepreneurship. John Wiley Sons. Doganova, L., Eyquem-Renault, M. (2009). What do business models do?: Innovation devices in technology entrepreneurship.Research Policy,38(10), 1559-1570. Drucker, P. (2014).Innovation and entrepreneurship. Routledge. Ketchen, D. J., Ireland, R. D., Snow, C. C. (2007). Strategic entrepreneurship, collaborative innovation, and wealth creation.Strategic Entrepreneurship Journal,1(3?4), 371-385. Morris, M. H., Kuratko, D. F., Covin, J. G. (2010).Corporate entrepreneurship innovation. Cengage Learning. Onetti, A., Zucchella, A., Jones, M. V., McDougall-Covin, P. P. (2012). Internationalization, innovation and entrepreneurship: business models for new technology-based firms.Journal of Management Governance,16(3), 337-368. Schaltegger, S., Wagner, M. (2011). Sustainable entrepreneurship and sustainability innovation: categories and interactions.Business strategy and the environment,20(4), 222-237. Stevenson, H. H., Jarillo, J. C. (2007). A paradigm of entrepreneurship: Entrepreneurial management. InEntrepreneurship(pp. 155-170). Springer, Berlin, Heidelberg. Szirmai, A., Naud, W., Goedhuys, M. (Eds.). (2011).Entrepreneurship, innovation, and economic development. Oxford University Press. Trimi, S., Berbegal-Mirabent, J. (2012). Business model innovation in entrepreneurship.International Entrepreneurship and Management Journal,8(4), 449-465. Windrum, P., Koch, P. M. (Eds.). (2008).Innovation in public sector services: entrepreneurship, creativity and management. Edward Elgar Publishing.

Macroeconomic Event

Question: Write an essay on Linkage between economic concepts and discuss macroeconomic event. Answer: Introduction Mankiw (2014) opines that the trend in economic growth of a country determines the financial stability of that particular country. The given assignment will reflect upon the article Japans Economic Roller Coaster Is Headed for another Dip by Toru Fujioka. This article highlights the rapid change in the rate of GDP in the economy of Japan. The figures are rapidly moving up and vice versa. The seesaw cycle can have a negative impact on the economy. These impacts and challenges have been highlighted through the given assignment. Linkage between economic concepts and discussion of macroeconomic event Benassy (2014) opines that the concept of macroeconomics determines the future predictions of economic conditions of the firm. GDP refers to the total amount of goods and services that any particular country produces. It can be further inferred that the background of any countrys economy is the percentage of increase of Gross Domestic Product (GDP) of the country. This nominal value of Gross Domestic Product will be on the higher side if the rate of inflation of the country is also on the higher side. From the article, it can be opined that the economy of Japan has seen both sides of inflation and deflation. Deflation can be very harmful to any economy (Oberfield and Raval 2014). For this reason, the economy of Japan has faced both positive and negative GDP. There is a direct and positive correlation between the rise in GDP and inflation rate. From the scenario of Japan, it can be inferred that there is the negative impact of different types of economic policies undertaken by the Gov t. Macroeconomics are based on two concepts. These are monetary policy and fiscal policy. Japan has failed to adopt an effective fiscal policy, which had a direct impact on the disposable income of the consumers. Hodgson (2014) opines that the central bank of any particular country plays an effective role in determining the monitory policy of that particular country. From this article, it can be concluded that the Central Bank of Japan (BOJ) has failed to adopt any structural reforms to control the ongoing deflation of the country. However, BOJ has tried to nullify all the weak links of the economy with an aggressive strategy. The industrial production has also taken a back due to fiscal and monitory policy of Japan. This has led to the concept of Abenomics. This concept reflects about stagnation in the economy from a higher rate of deflation and volatility in the economic rate. The Government of Japan failed to control down the rate of GDP and inflation even after adopting the con cept of Abenomics in a successful manner. According to Ascari and Sbordone (2014), the curse of capitalism can have a direct impact over an economy. Capitalism can make an economy a roller-costar one. Japan is considered as a capitalist country and due to this reason; its economy is going through a downturn. The investors of Japan are moving away from it, which has further led the economy of the country in such a downturn. In macroeconomics, it has been studied that the bottom line of an economy depends upon the following three aspects:- GDP Unemployment InflationHowever, it has been also studied that the consumers of the country also determines the direction of economy of that particular country. Therefore, it can be further inferred that the consumers of Japan follows a deflationary mindset. This has a negative impact on the economy of Japan. In addition to this, both Government and Central Bank of Japan has failed to control the flow of currency in the economy. This has further l ed to higher expenditure, thus, minimizing the national income. The principles of macroeconomics suggest that if a country is suffering from higher expenditure and lower amount of income, then, deflation is bound to take place. In addition to this, it can be also inferred that fiscal deficit also have a major impact when it comes to fluctuations in imports and exports (Oberfield and Raval 2014). It has also been studied that GDP per capita depends on standard of living of the country and economic development of that particular country. The per capita income of Japan has declined considerably because the countrys industrial production has declined considerably. This has a wider impact on the economy, creating a downturn. Apart from this, it can be also deduced that debt-GDP ratio shows a true picture of the status of any economy. In case of Japan, the debt-GDP ratio of the country has increased to 5 trillion yen (Bloomberg.com 2016). This further reflects that the industrial scenario of Japan has gone down drastically. In addition to this, it can be also deduced that the economy of Japan has failed to adopt the Solow model. This model interprets that the rate of GDP will increase with percentage increase of population of the country as well as flow of investment in the economy. Not only has this, the BOJ and Government of Japan failed considerably to adopt the different forms of growth models that have a considerable positive impact over the economy. From the analysis of rate of inflation and GDP rate, it is reflected that Japan is facing problems in terms of unemployment as well. Apart from this, the exporting and domestic purchasing of the country has further declined considerably. This further opines that the country is suffering from higher amount of debt due to lower amount of export and rate of domestic purchasing. It has been also studied that the power of the country depends upon the power of the currency and purchasing power of the economy. In case of Japan, its currency was depreciating and purchasing power of the consumer was going down considerably. From the above analysis, it can be concluded that all the macroeconomic concepts can be linked with the macroeconomic event that took place in Japan Economic challenges faced by the Economy of Japan and strategies to resolve them There are several issue faced by Japanese economy during settling out fluctuation with monetary and fiscal market within financial year 2016. As there are different types paradoxical mixture of failure and successful scenario created within economy, which is directly or indirectly influencing the economic standards within a specified period (Gillespie 2014). Mainly Japanese economy influences due to higher standard of living and individuals capita income during financial year 2015 by considering purchasing power parity with the amount of $38,000 in Tokyo and $41,000 in country France and Britain (Bloomberg.com 2016). As per the study, the measured unemployment rate has been strike at 3.3%, which is lower than US and European countries are 5% and 10% respectively. The current scenario of the Japan economy is showing deflation due to lower consumer prices, which is causes decline in Gross domestic product of the country within that specified period. Whenever it was measure by researc her that once the borrowing cost processed by the fiscal department of the country at zero percent, the fiscal deficit for that economy will be reach approx 7% with the government debt, which is exceed to 230% respectively (Bloomberg.com 2016). The population and labor force for Japanese economy is shrinking and become more confusing for the implying the higher amount of debt ratios within future period. The Bank of Japan has been appointed new operation head to measure the inflationary rate, which is equivalent to 2%, and immediate to resolve the announced issue faced by the entire Japanese economy required strategic tools and techniques. This can easily maintain the combination between slow growth rate and lower inflation to maintain their monetary system and short term fiscal system for proper reformation of labor and product markets. The Abenomics (Governments economic policies) established by the government authorities has been comprising three arrows strategy to overcome the economy issue faced by the Japanese economy in future period of time (Bloomberg.com 2016). The monetary policy of the company will be based on the large scale purchasing and government bonds, which is reported to causes fall of yen and interest rate for 10 years period. As per the market observation, it is found that huge amount of competitive exchange rate is supportive to raise profitability scenario of Japanese exporters but that is also keeping their output. This again is keeping the yen currency weaker in the economy due to increment, in import prices and reduction in real income and households services in Japanese economy accordingly (Lengnick 2015). In the financial year 2016, month of January, the appointed head of the Bank of Japan has been gone through the negative deposit rates on commercial banks and its mandatory reserves with the support of different confessionary act and activities. There are also several effects which are related to the reduction of household and bus iness demand to fluctuating and globalised scenario for enhancing the value of Yen approximately 10% with respect of US dollars (Bloomberg.com 2016). According to the research of Bank of Japan was shown that there are no such changes done by the government authorities in the policies as it was expected to resolve the monetary conditions of the market. With the reaction of these scenario, Government authorities of the Japanese economy required to strengthening the yen approximately 2% with compare to US dollar and simultaneously stock market of Japan is falling by 3% respectively. There are also several fiscal policy related issue which is begin at early 2011, as economy required higher amount of support to focus on the repairing and replacing infrastructure get effected during natural calamities and earthquake. The Japanese economy is rapidly enhancing their inflationary rates with comparison to reduce budgetary deficit and different speculation of government bodies with the growth perspectives of economy. There are also several issue related to fluctuation in VAT rates from 8% to 10% respectively (Bloomberg.com 2016). The government authorities are also raised value added tax to 8%, which is compensating the economic growth and deficit within specified period. The overall economic scenario is based on economic downturn, which is supportive to declining of Gross domestic products since from 2008. The reduction in foreign workers and encouragement to women empowerment in the Japanese economy is helpful for continuous growth of the economy. After overall research, it was found that there were no such way for the economy to avoid the budgetary deficits and shrinking cost for Japanese economy to control their financial abilities and economic related challenges. The GDP and CPI index is also declining due to unavoidable scenarios of the economy with the failure and government borrowing within that specified period (Lockwood 2015) From this, it can be concluded th at Japan has faced several challenges to control their economy. The government of Japan and Bank of Japan has taken several adequate steps, however, they have failed to control the factor of GDP and deflation rate. Discussion of the factors The overall scenario of Japanese economy fluctuation due to economic crisis and financial fluctuations has been shown that monetary and fiscal policies of any economy plays a very important role to measure the feasibility and sustainability of the organization within a specified period of time (Bloomberg.com 2016). The economic fluctuation in the Japanese economy happened due to avoidance of different types of fiscal and monetary policies and inverse rate of economy in terms of higher rate of inflation and deflation within a specified financial period for longer period. As the Japanese economy is having such a less number of unemployment rate of 3% in comparison to United State and European Countries are having 5% and 10% respectively. There are also negative rate of interest, which is decreases the household services and business demand for that particular economy within their processing period of time (The Business Times 2016). According to the economists, such economic crisis in J apan can be considered as a liquidity trap, where the monetary policies have totally failed to reduce the interest rates as the rates are already closed to zero. Many researchers are linking the present scenario with the Japanese asset price bubble, occurred in the 1980s. The collapse of the asset price bubble has caused a deep long-term crisis period, globally which is known as The Lost 20 Years (1991-2010). As per the researchers, the ups and downs in the GDP are just the aftermath of that crisis period. The banks of Japan, in the late 80s, adopted the policy to lent more without concerning about the background of the borrowers. Various companies and business houses grabbed the opportunity and began to rely more on debt financing for capital funding instead of raising equity capitals. It resulted in the fall of equity prices and crashed the Japanese Stock Market. On the other hand, the interest on loan had reduced to 0.1% and the banks and other financial institutions had greatly suffered from high amount of bad debts. Many of the Japanese firms were over burdened with debts and many of them became bankrupted. As per the records, the percentage of debt over the GDP in Japan is 240% - highest in the world (Bloomberg.com. 2016).To overcome the situation, many Japanese firms began to depend on temporary workers with lesser job security and other benefits. Gradually, these non-traditional workers took over more than 1/3 share of the total labor force. As the result, the real wages began to fall down drastically. From 1997 to the present, the real wages of Japan has gone down approximately 13%, which is considered to be the highest downfall among the developed nations (The Business Times 2016).In addition to these, the major portion of debt is attributed to domestic market and hence, it is expected that the large amount of debt repayments will cause further de-growth in the financial health of the country. The bank of Japan plays incredible role in terms of mana ging the monetary and fiscal policies and providing better justification for their usage in future period. As it is already discussed that, the economic scenario of a particular economy is required to be processed their policies and regulations accordingly to economic scenario and perspectives (Bloomberg.com 2016). According to the new appointed head of the Bank of Japan is basically working with their new approved policies and procedures to properly manage and justify the scenario for reduction of inflationary pressure and lower growth rate (Ansolabehere, Meredith and Snowberg 2014). Conclusion The report states the various aspects of the Japanese economy that has experienced the influence of both inflation and deflation. In the impact of the linkage of the concepts of the discussion of the various macroeconomic events, it was found that there is a direct and positive correlation between the rise in the GDP and the inflation rate in the economy. The Japanese per capita income has experienced a decline due to the reduction in the countrys industrial production. This has been further shown by the reduction in the GDP of the country. 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