Notes, summaries, assignments, exams, and exercises for Economics for University

The Boston Consulting Group Approach

The Boston Consulting Group (BCG) growth-share matrix is a portfolio-planning method that evaluates a company's strategic business units (SBUs) in terms of market growth rate and relative market share. The SBUs are classified as follows:

Stars

High-growth, high-share businesses or products. They often need heavy investment to finance their rapid growth. Eventually, their growth will slow down, and they will turn into cash cows.

Cash Cows

Low-growth, high-share businesses or products. These are established and successful SBUs that need less investment to hold their market share. They produce a lot of cash that the company uses to pay its bills and support other SBUs that need investment.

Question Marks

Low-share

The EU Single Market: Driving Economic Growth and Prosperity

The European Commission estimates that EU GDP is 1.8% higher thanks to the Internal Market. Additionally, employment is 1.46% higher, which means that around 2.5 million extra jobs have been created.

Economic Impact and Regional Cohesion

Over the last ten years, the Internal Market has increased the Union’s GDP by €877 billion. These figures are likely an underestimate of the full impact of the Internal Market. The combination of the Internal Market and cohesion policies has ensured that these benefits have not missed the poorest regions of the Community, as many feared they would. In fact, the opposite has happened, as many of these regions have actually enjoyed the highest growth

Key Negotiation Terminology

• Opening Point: This is the figure you give for a particular variable when you first state your position.
• Target Point: This is the figure for a particular variable that you would find satisfactory.
• Reservation Point: This is your limit for a particular variable. You cannot go beyond this point.
• BATNA: This is your Best Alternative To a Negotiated Agreement. In other words, it is what you will still have if the negotiation fails.
• Deadlock: A situation where there is no solution, because neither side can move.

Understanding Financial Terms & Payments

Types of Payments

• Tip: To thank someone for their services (for example, a waiter).
• Commission: To an agent or salesperson.
• Charge: For a service (electricity, postage).
• Fees:

Understanding Job Costing: 7 Essential Steps

Accurately determining the cost of a specific job is crucial for effective financial management. Follow these seven steps to ensure precise job costing and informed decision-making.

1. Identify the Job as the Cost Object

   Clearly define the specific job or project for which costs need to be tracked and accumulated. This is the primary cost object.

2. Identify Direct Costs of the Job

   Determine all costs that can be directly and conveniently traced to the chosen job. Examples include direct materials and direct labor.

3. Select Cost Allocation Base(s) for Indirect Costs

   Choose appropriate allocation bases to systematically assign indirect costs (overheads) to the job. Remember, overheads are costs that are necessary

1. What are Capital Goods for RIC Purposes?

Capital goods are tangible fixed assets acquired or imported as an initial investment.

3. Requirements for Land Acquisition as Initial Investment

To qualify as an initial investment, land (built or unbuilt) must not have previously received RIC benefits and must be used for:

• Promoting social housing for lease by the promoter.
• Purchase of land for development activities (Divisions 1-4 of business tax).
• Commercial or tourist areas: acquisition aimed at rehabilitating tourist accommodation in declining tourism areas.

4. Operational Term and Exceptions for Capital Goods

Capital goods must be operational within 3 months of purchase or import. Exceptions include:

• Land for promoting social housing for lease.
• Goods

Strategic Management Frameworks

1. Corporate Strategy

I. Ansoff Growth Matrix (1957)

I.1 Market Penetration

Increasing sales volume in the market where the company currently operates. This is appropriate when:

• The sector is in a growth phase.
• There are unsatisfied market niches.
• The industry is in decline, causing competitors to exit.
• Market leaders are satisfied and not competing for greater market share.

I.2 Market Development

Introducing existing products into new markets. This is appropriate when:

• New distribution channels are available.
• The company has excess production capacity.

I.3 Product Development

Developing new products or new uses for existing products. This is appropriate when:

• Product life cycles are short.
• Customer preferences are changing

1.) Delta bonds issued 300,000 in 90 days and 18% but only needs the funds for 70 days over can invest in vn that pays 17% for which it must pay 1.5% commission on what is chasing the cost of bonds for the company?
300,000 * 0.18 = 54,000
54,000 * (90/360) = 13,500

300,000 * 0.17 = 51,000
51,000 * 0,015 = 4,500

13.500-2.833 = 10,667 +4,500 = 15,167 costs

2.) Bank x gives us a loan at 20% payable within 1 year while the bank and we paid the same amount to 19% payable in advance which of the 2 banks charge us the lower effective tax rate?

20/100 = 0.2 = 20% nominal rate = 20% effective rate
19/100 = 0.19 = 19% nominal rate effective rate = 19 / (100-19) = 0.23 = 23%

3.) Effective rate for a loan of 600,000 to be paid within 1 year with a...

Business Concept

A company is a collection of items, organized and coordinated by management, designed to meet objectives while operating under conditions of risk.

Location Factors

• Market Demand: Consider the local interest in your product.
• Raw Materials: Assess material quality, cost, and availability.
• Labor Market: Evaluate potential employees, expertise, labor costs, and legal considerations.
• Infrastructure and Transport: Consider transport accessibility and connections with other businesses.
• Utilities: Evaluate the availability and cost of essential utilities like electricity, water, and telephone lines.
• Construction and Land Costs: Remember that prices vary by location.
• Legislation: Understand relevant tax, commercial, and social regulations.
• Investment

The International Business Environment

Introduction to the Global Business Landscape

A New Competitive Landscape

• Less clear sectoral barriers.
• Differences between industries and services are less precise (making sector classification difficult).
• Advances in logistics, computer design, and communications.
• Opening of global markets.

Two Key Determinants

• Globalization.
• Balancing Technology and Information Communication Technology (ICT).

Consequences of the New Environment

• Strong increase in competition: Presents both threats and opportunities.
• Differences in the cost of inputs, leading to relocation and redesign of production processes.
• Rise of multinational enterprises (MNEs), including smaller firms, not just large corporations.
• Mergers and acquisitions (