There are four types …show more content…
It is because transaction cost analysis addresses the choice of marketing channel structure only in the most general case situation, which is choosing between the manufacturer using vertical integration to perform all of the distribution tasks itself or using independent intermediaries to perform some or most of the distribution tasks (Rosenbloom, 1999). In this stage, transaction cost analysis allows Starfire Jewellery to analyze the cost of the decision to trade over a specified time period with respect to various benchmarks (Pelton, 2002). In order to perform a transaction cost analysis, Starfire Jewellery can create a variety of categories, which include order side, trade date, trade price, exchange and underlying (Pelton, 2002). These are to check how each trade performed when compared to the benchmark. In the report of transaction cost analysis, if the number is positive after all calculations, then it indicates that the trade works in the company’s favor. In contrary, if the number is negative then means the trade does not work in the company’s favor (Pelton, …show more content…
It is because there are only 2 employees and 1 employer, is also known as business owner working in the shop. Excluding the job contents of the owner, the distribution of the two employees may be different and cause conflict. If one of the employee is able to work for more types of task and another employee can just perform less and easier types of task in Starfire Jewellery. The owner would like to distribute more jobs and some jobs, which are more difficult to complete because that employee has better ability. The employee may feel that it is unfair due to this imbalance of distribution. In this situation, a compromise strategy is suitable to resolve this type of conflict (Gentner, 2003). By using this strategy, the owner can establish a middle ground based on the initial position of the two employees. For example, when the owner distributes some tasks, which need better knowledge about jewellery and more difficult to complete to the “better employee”, the another employee will be responsible to accomplish more tasks, which does not need someone skilful to complete but need take longer time. Therefore, the fairness of distributing tasks would be