1. In order to attract customers, eBay has formed a platform over which people can place, view, sell, buy and find more information about a product. Through the system of feedbacks, customers are able to exchange relevant information of sale of products. Through collaboration with PayPal, eBay customers make secure transactions through following of specific regulations for making payments
2. In trading, eBay customers face potential risks of fraudulent traders who could take advantage of the customers by unfair exchange. On the other hand, the seller of the commodity could present an item that does meet the requirement of the buyer as they show in the photos which the post on the website.
3. eBay encourages its customers to insure, through PayPal the items they purchase so that they can avoid the losses in case they fail to get what they ordered. eBay responds to contracting issues through carrying out investigations to determine the problems, banning customers that break rules of interaction in the business and developing policies on the ways people should carry out transactions.
4. The contracting costs at eBay cover all the activities that the company has to pay so an item can move from a seller to the buyer. Some costs that items have to cover in the process of operation at eBay include the cost of the product, the cost of insuring the product, the fee for posting the product on the eBay website and the cost of shipping of items to customers.
5. The absence of many cases of fraud in the process of transactions through eBay does not imply that it has overinvested or underinvested in containing the problem but shows the strength of the framework to address the problem.
- In changing its organization architecture, Kodak Company made some serious mistake because it focused on decentralization of responsibilities to managers in different regions. The change of management focused on a mere perception that if managers have an idea, they could implement it within a short time but never focused on the implication of inability of creativity of some of them. The process of reducing the base salary for managers was a counter force that could have led to the failure of success in the implementation of change in organizational structure in Kodak.
- In order to succeed, the company should have made the necessary consultation and research into the various factors that affected productivity of employees. In order to succeed in their business, the company could have the motivation of the employees who are an important asset to any organization as well as carrying out regular market research to determine the desires of its customers.
- The issue that faced the Kodak Company can compare to the economic Darwinism in which the most adapted organization is able to survive the condition of the market. Kodak Company represent a changing environmental demand which requires the producer company to respond in the most appropriate ways to the demand of the customers and where customers prefer the company that offer them services meeting their needs well (Frank, 2011).
Reference
Frank, R. H. (2011). The Darwin Economy: Liberty, Competition, and the Common Good. Princeton: Princeton University Press.
