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I choose the company Aaron's Sales & Lease Ownership. It is a company that deals with the selling and leasing of furniture, electronics computers and appliances. I choose this company because of its diverse nature of business. It is dealing with several lines of businesses which are interesting to an economist. It is also interesting to know that the company has a very wide market for people with different needs. It reveals diversification of risks in that the lines of business they are dealing with are distinct from each other. If the furniture business fails, then there will be the electronics and computer and appliances to bring income to the firm. It also interests me because of the franchise business where other companies can start up business, and use their already established name and they earn loyalty income (Hoovers, 2006).
In economics, there are some fundamental questions which all the companies including the Aaron's Sales &Lease Ownership have to put into consideration when doing business. The first fundamental question is what the company should produce, then Decide on how to produce the goods and services and lastly for whom to produce the goods and services.i.e who will consume the goods and services being produced.
With regard to the first economics questions, Aaron's furniture deals with furniture, computers, electronics appliances for both office use and home use. Under furniture, the company deals with all furniture needs in the living room, dining room, bedroom, office equipment and other accessories. In electronics, the company deals with televisions, music players, cameras stems. The company also deals with computers and laptops. In addition, the company deals with laundry, kitchen and lawn appliances. The company decided to produce a variety of products from which clients can choose from.
The Company produces most of its furniture in its facilities located all around United States. It also rents, hires out and leases this furniture. The company requires a number of resources to make the business a success. first, it needs a number of machines and equipments that are used for the production of it's products, Secondly, the franchise needs a lager number of employees who work in all their outlets and stores spread all over the united states, Canada and Pierto Rico.In fact the company has over 9600 employees which is quite a big number. These workers are engaged in different departments, which include management, production, distribution and marketing (Bonds, 2007). In addition, the company needs a large number of fleet services which will help in the transportation of the products to the outlets from the factories and to deliver the products to customers.
With relation to the third fundamental questions, the franchise has its market for people around the United States of America, Canada and Puerto Rico.It also sells household appliances and consumer Appliances. The franchise also targets offices where they offer the office furniture, computers, laptops, and electronic appliances. The franchise also takes into account the economic class of the people and produces goods which are affordable even to the middle class people. It offers affordable repayment terms to its customers.
After the business has put into consideration all the three fundamental questions, then the business has to come with ideas which will help the business to expand and cut itself a competitive edge over other firms in the same industry. The first way of making the business expand is to ensure that the operations are as efficient as possible. Efficiency refers to the production of maximum output given a number of resources at a given level of technology. The company is trying to make sure that its employees are very efficient by providing training which takes place 3days a week at the head quarters, every 30days in every franchise location and once a week at region locations. This ensures production of quality goods and products since the employees are frequently trained on what is new and what needs to be done to improve production and sales.
The company is also by improving business is by improving in technology. Technology this refers to the skills knowledge that help in the process of production. The franchise has invested in dealing with technological appliances and equipments which include among others computers and laptops (Pearce, 2007). This means that the company will continue to be in business for a long period of time bearing in mind that the world is turning technological. The company has also used to the internet to advertise itself and, this in bring in much more business for the company. The company is also engaging in new means of production b investing in newer and faster machinery to help increase the production.
Finally, the company is promoting efficiency in its line of business by optimizing production. This refers to doing the best given the constraints on hand and ensuring maximum output given the same constraints. The Aaron's ensure that they optimize their output by investing in different lines of business which make it earn more profits. The company has also diversified its risk by doing business an lines that are not different from each other; this means if one line of business falls, the company is safe and it may not go down fully as it will have other lines to support the business. The business is also in franchise business which in itself brings in income to business without directly selling the products (Murphy, 2006).