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

Conditions of Supply

• Product/Service Price, Quality, and Delivery Times

• Policy Provider Stocks

  (Including customer deposits)

• Minimum Orders for Products and/or Delivery

  (Effect of transport)

• Type and Mode of Transport

  (Who manages?)

• Contact and Delivery Addresses

• Inter-Agency Partners

  (Including transportation, logistics operators, etc.)

• Date and Schedules

  Discharge Planning

  (Time windows)

• Packaging and Palletization

• Coding, Identification, and Related Documents

• Batch Management and Disqualifications

  (Traceability)

• Special Conditions of Product Conservation

• Rejection Criteria

  (Defined tolerances on price, quality, deadlines, quantities, references, etc.)

• Incident Procedure, Returns Due to Rejections

  (What to do with the product, who collects, what penalties

The Formation of the Corporation

France

French corporations were smaller compared to those in the U.S., England, and Germany. They were often family-dominated and had a close relationship between management and ownership. Examples include Renault cars and Michelin rubber. These corporations featured simple management structures, strong organizational skills in production, but weaker distribution capabilities.

Factors Limiting Concentration:

• Small market size
• Existence of a dense distribution network
• Industry expertise focused on quality goods

Forms of Cooperation:

• Restrictive sales promotion through specific organizations
• Innovation through holding groups of companies that controlled legal and stock exchange matters
• Mergers, which emerged in the early

Key Factors in Forecasting Models

1. Variables in a Competitive Model Forecast

Variables considered for forecasting in a competitive model:

• Marketing
• Production
• Finance
• Human Resources
• Strategic Planning

2. Defining a Forecast

A forecast is an early estimate of the value of a variable, such as the demand for a product.

3. Main Factors to Predict in a Company

Key variables to forecast in a company include:

• Raw material cost
• Labor cost
• Feedstock availability
• Manpower availability
• Capacity
• Maintenance requirements

4. Characteristics of Forecasting Variables

I. Time Dependence: All forecasting situations deal with the future, and time is directly involved. Forecasts are made for specific points in time, and changes to that point generally alter the prognosis.

II.

Key Economic Concepts

Assumptions: Scenarios are taken as certain without testing them. Model: Partner assumptions and develop theories. Microeconomics: This branch of economics studies the behavior of individual entities (market, household). Macroeconomics: This is the behavior of the economy in general (unemployment, inflation). Positive Economics: Explains and analyzes the causes of economic behavior. Normative Economics: What should be. Factors of Production: Factors of production (goods or services) and primary products that are consumed. FP: Land, Labor, Capital and raw materials.Shortage: Limitation of resources. Economic good: A limited range.

Opportunity Cost: When we decide to use a resource in one way and not another. PPF: Maximum

NIC / State Cash Flow: Objective

This Standard requires companies to provide information about historical movements in cash and cash equivalents through a cash flow statement classified into operating, investing, and financing activities.

Scope

Companies must prepare a cash flow statement following this Standard's requirements, including it as part of their annual financial statements.

Benefits of Cash Flow Information

The cash flow statement, used with other financial statements, helps users evaluate changes in a company's net assets, financial structure (liquidity and solvency), and ability to adapt to changing circumstances by modifying receipts and payments. It is useful in assessing the company's overall financial health.

Definitions

• Cash comprises

Ikea

Strategy: Actions managers take to attain firm’s goals. Strategies focus on profitability (rate of return on invested capital) and profit growth (% increase in net profits over time). How to Increase Firm’s Profitability: Value must be created by consumer. Value creation measured by difference between price charged and cost of production. 2 strategies: Differentiation and low cost. Strategic Positioning: To maximize profitability firm must be efficient, configure internal operations, have the right organization structure (all must be consistent). Value Creation Activities: 1 Primary activities (creating, marketing and delivering product to buyers and providing support after-sale). 2 Support Activities (provides inputs that allow primary...

Money and Monetary System

• Money: An asset that serves three functions: medium of exchange, store of value, and unit of account.
• Fiat Currency: Money issued by a government with no physical backing (e.g., euro, dollar).
• Fiduciary Currency: Money based on trust, not intrinsic value (e.g., Bitcoin, checks).
• Ledger: An accounting record showing debts and transactions.
• Unit of Account: Allows expressing the price of goods/services (e.g., a coffee costs €2).

Cryptography

• Hash: A mathematical function that converts data into a unique and irreversible digital fingerprint.
• Asymmetric Cryptography: Uses a pair of keys (public and private) to encrypt and decrypt messages.
• Digital Signature: Proves that a message was sent by a specific user and has not been modified.

Current Assets

• Cash
• Marketable investments (short-term)
• Accounts receivable (acc. receiv.)
• Inventory (inv.)
• Prepaid assets (rent, insurance)

Non-Current Assets

• Long-term investments (LT investment)
• Property, plant, and equipment (PPE)
• Intangible assets (goodwill, patent)

Current Liabilities

• Accounts payable
• Accrued liabilities (taxes payable, wages payable, expenses that haven’t been paid yet)
• Short-term debt
• Deferred revenue
• Current maturities of long-term debt

Non-Current Liabilities

• Long-term debt (LT debt)
• Other long-term liabilities

Equity — Contributed Capital

• Common stock
• Additional paid-in capital (add. paid-in cap.)
• Treasury stock

Equity — Earned Capital

Retained earnings: beginning balance + net income − dividends = ending balance.

Profitability Ratios

• ROE

Brand Awareness and Advertising Strategies

Brand Awareness: How present is your brand in the market? Is it recognized by the public?

Brand Image: What image do you project to your customers?

Brand Loyalty: Dedication to purchasing the same product or service repeatedly, now and in the future, from the same brand, regardless of a competitor's actions or changes in the environment.

Brand Stretching: When a company tries to launch products outside its core group. Example: Zara / Zara Home.

Announcement vs. Advertisement: An announcement is an act of announcing or giving notice, while an advertisement is a commercial solicitation designed to sell a commodity, service, or similar (marketing).

What Makes a Good Advertisement?

A good advertisement is:

• Clever
• Powerful
• Catchy
• Inspiring
• Uses

MANAGEMENT MODELS

Partial Models: specific elements of the Management process brought to the foreground

• Management by Exception – Management only in exceptional situations.
• Management by Delegation – Management by transfer of tasks.
• Management by Decision Rules – Default decision rules are given.
• Management by Results - Management by control of results.

* Total Models: Inclusion of all elements of the Management process

• Management by Objectives – Management by agreed targets.
• St.Gallener Leadership Model - overall integrating model.
• Harzburger Leadership Model - Management with autonomous employees.
• 7-S-Model - Mc.Kinsey Model - hard and soft factors.

* Management by objectives

-Description

o Management and employees agree jointly on targets.

o Employee...