Enterprise and Enterprenerual Management Essay Example | Topics and Well Written Essays - 3000 words

Enterprise and Enterprenerual Management - Essay Example There are many reasons that businesses fail, some of them fail because they are unable to recognize the threats that exist in the outside world and as well as the dynamics of the business world. Before starting a business it is very important that a business man tries best possible ways to make his business a success. For making a business a success it is extremely necessary that the business man has studied the environment of the probable business environment so that he does not delve into risks without any preliminary investigations (CAN?AS, SONDAK, 2011). When starting a business it is extremely necessary for the person who is starting a business to know whether the business he is starting is actually the one that is near to him and he can understand the essence of it. If a person starts a business related to things that is of no interest to him he will end up losing interest in it and ultimately closing down the business, without any further exploitation of opportunities. To star t a business it is necessary that everything has been worked out properly and the person starting the business should have the whole layout of the business in front of him so that he can understand what are the pros and cons of the business that he plans to start. It is very important that the business has been thought out in its fullness before being started by a person. If a person fails to account for all the minute details then the business will never be a success as many important factors will be missed out. A business plan is a very important stepping stone for any business, without a business plan if you want to start your business then you will never be able to take it forward, as you will never have much idea as to what path has to be taken to guide your business in the right direction. A designed business plan will help and guide the businessman as to what is best for the business (COVELLO, HAZELGREN, 2006). A business plan is really very important to take the business for ward as it gives the blue print of the business. A complete business plan is designed in a way that it will take into account all the profits and loss and then give the results of the impact of any kind of transaction on the bottom line of the business. It is a reflection of the possible expenses and the revenue generation of the business. It helps the new business man decide what are the possible costs that have the possibility of being incurred by him while doing the business that he plans to start and how should he work and prioritize the arrangements so that he can minimize the costs that he might incur for the business. Also, when he has designed a complete business plan then he can look for ways and methods that will also help him in looking for alternates of the possible cost incurring units of the business. When a person starts a business the main thing that he has in his mind is to earn money from it and to make profits. The only reason that he looks for new ventures is tha t he wants to have greener pastures to graze and better results than he is getting in the current job that he is doing. Designing a complete business plan will always give him an idea as to what is the best thing that can be done to overcome the possible hurdles that might come up once he starts the business. It

Product Mix and New Product Development Strategies Essay Example for Free

Product Mix and New Product Development Strategies Essay The Coca-Cola versus Pepsi competition is perhaps the most well known rivalry in the history of marketing. Coke has long enjoyed the home field advantage, having become entrenched as the most popular and identifiable cola throughout the world. Although it has carved itself a substantial portion of the market, Pepsi has struggled to match the sales revenue of Coca-Cola; until recently. Although Pepsi has never come close to equaling Coke cola market share, they have become more aggressive and adept than Coke in cornering the non-carbonated beverage market. It is in this market that Pepsi is seeking to obtain a sustainable competitive advantage over Coke. It their quest to acquire and develop new products, will the use of the PTSTP method help Pepsi develop new products in order to obtain a sustainable competitive advantage?A product is defined in three levels; core, actual, and augmented. The core of the product is the benefit it offers the consumer. For the example of colas, it could be refreshment, energy (sugar and caffeine), alertness, or just pleasure. The soda itself is the actual product. The augmented product for a cola could be the recognition and status gains perceived by drinking that particular brand. Or it could even be the weight loss from sticking to diet colas. For the development of new products, we first need to identify what consists of a new product. There are six categories of new products:1.New-To-The-World. This is a product that has no like product offered elsewhere. For example, when the first personal computer was offered to the public, this would be a new product. 2.New Product Lines. This is when similar products exist, possibly even under the same brand, but a new line of the product offers some tangible difference to those products already offered. For example, offering diet colas in addition to regular colas under the same brand. 3.Product Line Additions. This is the addition of a product that is directly related to one offered. For example, offering Vanilla Coke for sale alongside Coke. 4.Improvements/Revisions. This is a product which has already been offered,  but some change or revision has been made to the products properties. For example: New Coke, or anything labeled new and improved.5.Repositioned Products. The same product offered in a new market or directed towards a new target market. For example Pepsi bringing Sabritas chips into the US to target the Hispanic market. 6.Lower-Priced Products. This is simply reducing the price of an existing product to stimulate sales. New products affect the product mix of a company. Product mix is generally defined as the total composite of products offered by a particular organization. The product mix includes both individual products and product lines. A product line is a group of products which are closely related by function, customer base, distribution, or price range. To use Pepsi as an example, Pepsis product mix includes beverages and potato chips. The beverage product line consists of carbonated, non-carbonated, and water. Pepsi, Gatorade, and Aquafina all are individual products. PTSTP is a mnemonic for the five step process underlying Target Marketing and Positioning. The five steps are as follows:1.Identify competitive Products. 2.Define the Target market. 3.Determine the basis for Segmentation. 4.Determine if any Target markets are underserved. 5.Develop a Product for the underserved market. By using this method, a company can identify a gap in a particular market segment. This gap may be present because there is no product to fill it, or because the current product is reaching the end of its life-cycle, thus creating an opportunity for new growth. To answer the previous question, we will contrast the PTSTP method to Coca-Cola and Pespis development of the non-carbonated beverage market. Pepsi has continually struggled to match Cokes market share in colas and other carbonated beverages. Coke enjoys a 44% slice of the market compared to Pepsis 32%. During their 108 year rivalry, Pepsi has never come close to selling as much soda as Coke. Much of this is due to Cokes brand recognition. Although in 2006 Pepsi, for the first time, beat Coke in beverages sold. This was due to Pepsis embracement of the non-carbonated beverage market, where it led the market with a 24% share over Cokes 16%. Pepsi was able to recognize and take advantage of the growing non-carbonized market much earlier than Coca-Cola. Although cola sales have recently stagnated to less than 1% growth, non-carbonated beverages grew 8% in 2004. Much of the failure of Coke to expand into this market can be traced back to the stubbornness of Coke executives to expand beyond the soda market. Coke had an opportunity to acquire Quaker Oats in the 1990s, but passed on the opportunity. Instead, Pepsi acquired Quaker Oats in 2001. Among Quaker Oats assets were Gatorade and Snapple, both leaders in their markets. Although these product lines were already established, they represented new products to Pepsi, as they represented Pepsis introduction into the non-carbonated beverage market. As a result, Pepsi owns a commanding lead in the sports drink market, with Gatorade holding an 80% share to Cokes Powerade at 15%. Until 2001, Coca-Cola had been reluctant to embrace new products. They were not willing to extend their company and take the chance in the non-carbonated market, until they saw the success Pepsi was having. In addition to passing up on Quaker Oats, Coke lost a bidding war for the Sobe line of enhanced juices, and their bid for the Planet Java line of coffees and teas was not embraced by their independent bottlers. However, since 2000 Coke has been actively seeking new products in this market, including the acquisition of the successful Minute Maid juice line. The difference in philosophy has made the difference for Pepsi. In fact, losing the cola wars may have been the best thing for Pepsi. This forced Pepsi to look outside the soda realm in order to increase profits. As Pepsis CEO, Steven Reinemund believes that his companys growth is due to their constant quest for change, that Innovation is what consumers are  looking for, particularly in the small, routine things of their life. Pepsis willingness to embrace new product lines has given them the edge over Coke for the first time in history. Their offerings of Quaker Oats beverages, Sobe, and Aquafina have all been firsts for a soda company. As a result, they have gained the brand recognition over Cokes subsequent offerings, leading to an increased market share. In order for Pepsi to maintain their competitive advantage over Coke, they need to follow the advice of Reinemund, by remaining innovative. PTSTP can help them sustain this advantage. By identifying potential markets, and developing products for these markets, they can continue to capture new market shares. The beverage market is saturated with options for the consumer, with new products appearing everyday. Many of these products are variations on existing products. For example, energy drinks have become very popular in the past few years. As a result the market has become flooded with options. It will become increasingly difficult to introduce new products in this category. By using PTSTP, Pepsi can identify a new niche in this market, or a different market to exploit. Using the energy drinks as an example, the competitors range from Fuze, Red Bull, and many others. By defining the target market, they can identify that the same demographics both tend to buy sodas and energy drinks. Pepsi can then segment the market into young males (18-30). They then determine that the target market of combined soda energy drinks is underserved. They then develop a product to serve this market. Thus Pepsi Max is born. By using PTSTP, Pepsi has created a new product in soda energy drinks, Pepsi Max. It is this type of creativity and innovation that is embraced by Reinemund, and will serve to keep Pepsi with a sustained competitive advantage over Coke. Only by using a method such as PTSTP, can underserved markets be identified and exploited. References 1. http://business.enotes.com/business-finance-encyclopedia/product-mix2. Brady, Diane (). A Thousand and One Noshes: How Pepsi deftly adapts products to changing consumer tastes. Business Week. 14 Jun 20043. Foust, Dean. Things Go Better With Juice: Cokes new CEO will have to move quickly to catch up in noncarbonated drinks. Business Week. 17 May 20044. Brooker, Katrina. How Pepsi outgunned Coke: Losing the cola wars was the best thing that ever happened to Pepsi while Coke was celebrating, PEP took over a much larger market. FORTUNE 1 Feb 2006http://money.cnn.com/2006/02/01/news/companies/pepsi_fortune/index.htm5. http://www.marketingteacher.com/Lessons/lesson_three_levels_of_a_product.htm

Solutions to Domestic Violence

Solutions to Domestic Violence Problem Solution Every now and then, people have been known to say, What can they do to help someone they know that is being abused? There are many different solutions that people can do to help those in need that are involved in a domestic violence relationship. According to the Michigan State Police there are various solutions involved in assisting someone. Knowing what one is talking about by having some background on domestic violence. Always let them know that your ears are open at anytime they need to talk. Help them as much as possible by being respectful, patient and supportive in learning about their safety. Lastly, never let them think it is their fault, keep addressing that as much as possible. There is always ways to get help when someone needs it. They can do so by calling the confidential National Domestic Hotline (DMVH) at 1-800-799-SAFE (7233), they are available to the United States, 24 hours, 7 days a week, and open 365 days a year. The DMVH have counselors to support them in getting them information and referrals for themselves, their children, shelter, and legal assistance (Michigan State Police). There are many other things that you could do to help a victim or even a victim herself can do. It may be just as easy as picking up a phone book to find out what organizations in your community help out with such as employment or even child care. There are other different things that can be done such as seeking counseling or even support groups. While you are seeking counseling, make sure you identify weather the counselor is for the abused and has had experience of working with the abused. Most of all stay active as much as possible to help your self esteem, self confidence, and getting you independence back (Women Web, Getting Help). Domestic violence shelter, often called a womens shelter is a building or set of apartments where victims of abuse can seek shelter. These shelter locations are kept confidential so these womens abusers are unable to find them. Shelters are known to provide those abused and their children with shelter, food and childcare. Since there are very limited times for residing at a shelter, many shelters assist in placement of permanent homes and jobs (Help guide). There are different things that can be done after leaving a shelter so their abuser doesnt find them. The top 3 things that you can do are: 1.) get and unlisted number, 2) use a P.O. Box, 3.) open new bank accounts and credit cards (Help guide). After discovering how serious Domestic violence actually was, the Domestic Violence Bill, 2006 was passed. The Domestic Violence Bill was intended to allow more help and relief of the abuse. The purpose of this Bill was to allow those involved in domestic violence the maximum protection that the laws can provide. These laws have made it mandatory for all police stations to have specific departments to deal with and give legal duty on the officers to assist in a complaint domestic violence. Under the provision of this bill, police officers are suppose to advise the victim of their rights under, help in obtaining shelter, offer medical treatment, and to lodge a criminal complaint. The Domestic Violence Act also gives police officers the power to arrest the accused perpetrator, without a warrant who is reasonably suspected to have committed or who is threatening to commit an act of domestic violence on a victim. If any person is arrested they are to be brought before a magistrate within forty-eight hours (Government Gazette) Under the Michigan Constitution, (Art. I, Sec. 24; eff. Dec. 24, 1988) and the Crime Victims Rights Act, (1985 PA 87; MCL 780.751) have given crime victims the right to be treated with dignity and respect. Making sure all is handled in a timely manner following an arrest. The victim also has the right to receive emergency and medical services. Receive an explanation of all court proceedings. This act allows them to be protected of being free of any threats, acts, and/or discharge from your employer. The name of the Prosecutors who is handling the case. Any scheduled court proceedings, including sentencing, the defendants release on bond or escape from custody while awaiting trial. The probation departments address and telephone number. Attend the court trial and make an oral statement to a pre-sentence investigator, and to write an impact statement which will be included in the pre-sentence report. Victims are also allowed to receive information regarding the conviction, sentence, im prisonment, and release of the accused. (Michigan Prosecuting Attorney Associations). There are many different effects of the abuse. If someone had physical abuse they may suffer from long term health complications. Abused women often have anxiety, tension, low energy, depression, insomnia, loss of appetite, or even headaches. They may believe that they failed the relationship. They have also been known to be ashamed and not allowing others to know exactly what had happened to them. In just about every case of Domestic Violence, women have stated that they have lost their self esteem and lack of confidence. Women have also been known to have anger and fear towards themselves and their abuser. They are also known to isolate themselves from other such as family and friends (Womens Web, The Effect of Abuse). According to Direnfeld (2007), the aftermath of emotional and psychological can last for several years or even lifetime. It not only affects the victim but also other family members and later relationships. In many cases, children have the trauma of the violence. These children grow to become bullies in their own right whose behavior the violated parent cannot control and whose behavior is reinforced by the perpetrator. There are many things that a victim needs to remember, its very hard to do it all at once. Between the police, and shelters, the victim has other they can talk to; rather it is a counselor or even someone that has been through it. There main thing they need to know what are their rights? References Direnfeld, G. MSW, RSW (2007). Alumbo, the Long Arm Of Domestic Violence. Retrieved July 24, 2009 from http://www.alumbo.com/article/32544-The-Long-Arm-Of-Domestic-Violence.html Government Gazett (2006). Domestic Violence Bill, 2006. Retrieved July 22, 2009 from http://www.kubatana.net/docs/legisl/dom_viol_bill_060630.pdf Help guide (2008). Domestic Violence and Abuse: Help, Treatment, Intervention, and Prevention Retrieved July 24, 2009 from http://www.alumbo.com/article/32544-The-Long-Arm-Of-Domestic-Violence.html Michigan Prosecuting Attorney Associations (2008). Victim Rights. Retrieved July 20, 2009 from http://www.michiganprosecutor.org/Victim.htm Michigan State Police (2009). Domestic Violence Awareness. Retrieved July 20, 2009 from http://www.michigan.gov/msp/0,1607,7-123-1589_1711_4577,00.html Women Web (2009). Domestic Violence, The Effect of Abuse. Retrieved July 25, 2009 from http://www.womensweb.ca/violence/dv/effects.php Women Web (2009). Domestic Violence, Getting Help. Retrieved July 25, 2009 from http://www.womensweb.ca/violence/dv/help.php

industrial revolution Essay -- essays research papers

What factors helped to promote America’s huge industrial growth during the period from 1860-1900? America had a huge industrial revolution in the late 1800†s. Many changes happened to our great nation, which factored into this. The evidence clearly shows that advancements in new technology, a large wave of immigrants into our country and new views of our government, helped to promote America’s huge industrial growth from the period of 1860-1900. Advancements in new technology clearly promoted the industrial growth of the United States. The new technologies allowed business owners to reduce labor in the movement of materials from one point to the other. This occurred by using the new technology of railroads and machinery. Business owners used the railroads to transport their finished product and raw materials around the country more efficiently, which enabled businesses to expand. The business owners were now able to use machines for lifting materials from one floor to another and to use conveyer belts to move materials around on an assembly line. The use of machines is evident because the graph in document 5 clearly shows that American industrial and agricultural power sources between 1850 and 1900 changed. This is evident because in 1850, only 13% human power and 35% water and coal power was used, but in 1900 a mere 5% human power and a whopping 73% water and coal power was used. The use of machines more than doubled over t he course from 1850-1900, and the human output de...

A Teacher’s Education And how it Affects Student Learning

In 2005, the U.S. will have over 54 million children in schools and teachers will total 3.5 million.   To keep up with this number, 200,000 teachers will need to be recruited annually.The inability to produce this many is causing states to issue emergency certification programs lasting only 4-8 weeks and then throwing these teachers into schools, many of them inner-city.   But even with the No Child Left Behind policies in place, America is still severely lacking in achievement levels and grades then other countries.   This is because the level of education a teacher has influences how well a student achieves and teachers are not getting the proper training or education needed.There are statistics coming out that show that a student’s achievement really relies on what a teacher’s educational level is.   Research shows that the quality of teaching is actually the largest school related factor associated with achievement.   A study in Tennessee and Dallas showed that a good teacher could raise a child’s grade by a whole level over the course of a year.The good grades were found to be cumulative, showing kids who had a good teacher for three straight years rose from the 59th percentile in fourth grade to the 76th percentile in the sixth grade.   But kids that had teachers, who were classified not as effective as the first group, went from the 60th percentile in fourth grade to the 42nd percentile by the time they reached sixth grade.   (Robert Rothman, 2004.)As America grows, it’s no surprise that more kids are coming into the school systems.   The problem is that universities can’t produce enough teachers to keep up.   That is a reason why 41 states have developed Alternative programs aimed at getting people a teacher’s certificate in four to eight weeks.These programs train a person in basic training for the classroom, basic training on how to make lesson plans and they reduce the requirements for state licenses, so that they can be hired for an emergency.   The American Board for Certification of Teacher Excellence’s â€Å"Passport to Teaching Certification† reduce the time a person spends studying to teach.   It also eliminates practice teaching in a classroom.   Since teaching requires practice and mastery of the subject, without practice teaching, the person just gets rushed through to the real classroom.Teach for America gives students a summer crash course in teaching and then gives them a class, usually inner city, the following fall.   They have an astronomical 75% turnover rate though!   Most emergency hiring happens in inner-city schools, which means that these very basically trained teachers are thrown in the most disadvantaged schools.   (Reg Weaver, 2004.)A national sample of teachers showed that if they had lower academic qualifications, they were less likely to stay teaching.   80,000 teachers have come out of these alternative programs, but only 40% have stayed teaching past year three.   Statistics are supporting that the â€Å"strongest negative predictor of a state’s student achievement are the proportion of new teachers who are uncertified and the proportion who hold less then a minor in the field they teach.†Ã‚   (quote1.)At the annual American Educational Research Association meeting in 2004, they brought to light that Kindergarten kids are scoring 1.26 test score points lower with teachers who were issued an emergency license them by a fully-certified teacher.   The American Institute for Research also found that 8th graders scored 9% higher in math if they had teachers who specialized in math and had a certificate in math.

How Is the Current Recession Acting Like

How is the Current Recession Acting like/unlike the Great Depression Nowadays, the economy of the world plunges into an awkward situation. The entire world meets a global economic crisis or recession, especially in the United States. After World War , this recession is the biggest recession for the America. Most of people express worried about this recession; absolutely they recall the memory about the Great Depression which was the most enormous economic crisis in the American history. They are anxious because it seems like the United States is going through another Great Depression or will go through another Great Depression. From the history, everyone knows how serious the result came out from the Great Depression; it baffled human beings’ development. No one wants to see another Great Depression happen again. However, there are sufficient reasons to support public people to worry about the Great Depression will happen again, because present recession and the Great Depression, both of them have some similar characteristics. Meanwhile, both of them have much unlike points also can prove the Great Depression will not happen again. In this paper, I will compare and contrast the current recession and the Great Depression, I will prove the current recession causes the effects will much less than the Great Depression, and the Great Depression will not replay. Back to 1929~1933, on October 29 1929, the â€Å"Black Tuesday† came to the United States. On this day, American financial world crashed, the stock’s price fell from top to bottom, fell 40 percentages from 383, also the Dow Jones stock index fell 22 percentages(Baidu, 2009). From this date to November 13th 1929, there was thirty billion disappeared in the market, this number equal to the total expenses of World War?. However, the crash of the stock market was just the beginning of a horrible economic crisis. Even through the Great Depression began at the collapse of the stock market; many experts still thought the influence from the collapse of the stock market was limited, because stock was just a little part of family’s property, it cannot affect Marginal Propensity to Consume(MPC) very much. However, the â€Å"Black Tuesday† was merely the beginning of the terrible issue, was just miniature of the Great Depression. The Great Depression caused a bunch of extremely serious social problem, for example, there were about 2 million to 4 million students had to drop their school. Even some people could not suffer the pain from mentality and physiology then suicide. The most significant problem was that 8. 3 million people lose their job; the unemployment rate reached such a high level which was 25%(Xu, 2009). Almost in every city, the poor people who were in line at the food bank as long as to several blocks. By the end of 1932, totally, there were about 2 million people roamed in the streets, there were no home for them. In September 1932, magazine Fortune estimated that 34 million people had no income; this population was 28% of the whole population of the United States. And at least 15 million people were looking for a job, but there was no job offer to them at that time (Baidu, 2009). Change the view to the economy. At the beginning year of the Great Depression, since the economy became weakness, it was hard for bank to get back of their loan, and the public people were anxious so that they went to the bank to withdraw their deposit. Therefore, at that time 50% was closed. The government took conservative measure, decreased the money supply so that more and more banks had to be closed. Consequently, 9000 banks had already closed and 130 thousands enterprises went to bankrupt. The total output of industry and nation income (NI) decreased 50%, the trade price of goods reduced one third and merchandise trade also cut two thirds (Techcn, 2009). In 1920s, the people’s confidence of the forward economy was expressed in the stock market. From 1921 to 1929, Dow Jones Indexes increased from 75 to 363, average growth rate (AVGR) was 21. 8% which was an incredible number (Su, 2009). Under this prosperous situation hided possibility which can cause the Great Depression. At the beginning of 1929, the stock market of United States of America was crazy, the price of stock raised times by times. As I mentioned before, rather than say black one day, I would like to say black week or black month. On October 24th 1929, the market of New York exchange suddenly got a crash, the speed of falling stock price too quick to catch up by the ticker. Even though some consortiums and the president came out to try to save the market, it did not work. On October 28th and 29th 1929, Dow Jones Indexes fell 38. 33, 13. 47% and on Tuesday fell 11. 73% (Black Tueday, 2002). During this short week, American people lose 10 billion dollars in stock exchange. Time went to the middle of November 1929, the stock’s price in New York Exchanges fell 40%, lose 26 billion dollars. Millions of public people lose their whole life’s money. During the Great Depression, the stock price of US steel fell from $262 to $22, and the stock price of GM fell from $73 to $8 (Techen, 2009). Gross domestic product (GDP) fell 25% during 1929-1933, and Genuine Progress Indicator (GPI) of 1933 decreased 24. 6% compared to 1929 (Hexun,2009). â€Å"In economics, a recession is a general slowdown in economic activity over a long period of time, or a business cycle contraction. During recessions, many macroeconomic indicators vary in a similar way. Production as measured by Gross Domestic Product (GDP), employment, investment spending, capacity utilization, household incomes, business profits and inflation all fall during recessions; bankruptcies and the unemployment rate rises. †(Wikipedia, 2009). This is the definition of the recession. Compared to the Great Depression, we can figure out some similarities. For example, GDP, employment, and investing spending fall in the current recession or the Great Depression. In current recession, GDP fall 2%, unemployment rate is 8. 1%, and Dow Jones Indexes decrease 52 % (Xu, 2009). From these data, we know that in current recession for the society, many people lose their jobs, also many enterprises go to bankrupt as well as some banks. For the stock market, the Dow Jones Indexes can tell us that the stock market do not in a nice situation. For the whole country, GDP fall so that American economy gets into recession. However, if we take a close look at these numbers, we can see these numbers are different from the Great Depression. As I mentioned, during the Great Depression, GDP fell 25%, unemployment rate was 25%, and Dow Jones Indexes fell 89%. These numbers in current depression are much smaller than the Great Depression; therefore, these numbers prove that the current recession effect will much less than the Great Depression. Reason of the current recession and the Great Depression is different. The current recession is caused by the subprime mortgage crisis. â€Å"The subprime mortgage crisis is an ongoing real estate crisis and financial crisis triggered by a dramatic rise in mortgage delinquencies and foreclosures in the United States, with major adverse consequences for banks and financial markets around the globe. The crisis, hich has its roots in the closing years of the 20th century, became apparent in 2007 and has exposed pervasive weaknesses in financial industry regulation and the global financial system† (Wikipedia, 2009). The subprime mortgage crisis happened because of moral hazard. From our textbook we understand that the risk that one party to a transaction takes actions that harm another party called moral hazard. About the reason of the Great Depression, it seems like the stock market’s crash lead to the terrible issue, but the real reason is the unbalanced or unhealthy development of the economy. The strategies from the government to deal with these two issues are different. During the Great Depression, the Federal Reserve did not get the right strategy to deal with the market less liquidity, on the other hand, the current U. S. government decrease the interest, create some new strategies to activate the market, also try their best to save the economy. Also, the current government takes out 700 billion dollars to save banks and insurance companies. Totally, government plan to use 787 billion dollars to stimulate the economy and increase 3. 5 million chances of employing (Xu, 2009). Consequently, the Great Depression will not replay. However, even we can predict the current recession’s effect will less than the Great Depression, we also need pay enough attention to the current recession. In fact, the entire world’s economy is not a good condition, what we need to do is not just the save the economy but also prevent the recession happen again and again.