Notes, summaries, assignments, exams, and problems for Economy

Peppers and Rogers described different steps that are involved in evaluation.

PepsiCo experienced great success in Latin America with its leverage; experience gained in one country can be used in another country.

Product placement has reached the world of live: viewers are being marketed to subliminally without their consent.

Promotions designed to increase product availability in distribution include trade sales promotions.

Red Bull has been involved in Music Academy relationship marketing, which is crucial for brand engagement.

Social couponing is one of the hottest online sales promotion trends, especially with platforms like Groupons.

Some advertisers acknowledge that, in Brazil, the market dynamics are unique.

Spoexa, a food-marketing company,... Continue reading "Understanding Marketing Strategies and Trends in 2023" »

Big Five Personality Dimensions (Vecchio, 2003)

1. Need for Achievement (importance of parental influences)
2. Need for Autonomy
3. Locus of Control: Internal (control of own destiny)/ External (others control my destiny)
4. Risk Taking Propensity
5. Entrepreneurial Self Efficacy (ESE)

PHASE 1: Start Up

Pitfalls

1. The owner works for free.
2. Less attention to financial aspects.
3. Everybody feels responsible, no one is responsible.
4. Too much excitement. Down to earth!

Skills

1. Accounting skills
2. Leadership skills
3. Capability to slow down

PHASE 2: Steadying the Ship

Pitfalls

1. Less attention for management of the company.
2. Conflicts among managers and departments.
3. Working in the company instead of working at the company.

Skills

1. Managerial skills
2. Able to analyze changes in the business environment

PHASE

GDP

GDP is the monetary value of all the finished goods and services produced within a country's borders in a specific time period.

Industrial Revolution

Transition to new manufacturing processes in Europe and the US, in the period from about 1760 to sometime between 1820 and 1840.

Labor Force

Number of people who are employed plus the unemployed who are looking for work.

Labor Force Participation Rate

Labor force participation rate refers to the number of people available for work as a percentage of the total population.

Cyclical Unemployment

Cyclical unemployment is a factor of overall unemployment that relates to the regular ups and downs, or cyclical trends in growth and production, that occur within the business cycle.

Inflation

Inflation is a sustained... Continue reading "Economic Concepts and Definitions" »

Criteria for Dismissal

Clear criteria for dismissal are essential for ensuring consistent and fair layoff decisions. The two primary criteria used are seniority and employee performance.

Seniority

Seniority, the length of time an employee has been with the firm, is the most common layoff criterion. In unionized workforces, layoff decisions are typically based on seniority, as stipulated in labor contracts.

Performance

When performance is used as a layoff criterion, companies can retain top performers and eliminate weaker ones. However, performance levels must be clearly documented to avoid legal risks associated with discrimination or arbitrary judgments.

Compensation System

Internal vs. External Equity

Equity pay addresses perceived fairness within... Continue reading "Layoff Criteria: Balancing Seniority and Performance" »

CHAPTER 3

Financial Intermediation and Depository Institutions

Quiz

1. ____________ is the process by which individual savings are accumulated in depository institutions where the funds are then loaned out to consumers or invested in businesses.

1. Savings/investment
2. Financial intermediation
3. Contractual savings
4. Mortgage banking

Answer: b

2. Contractual savings organizations provide all of the following services with the exception of __________.

1. Collecting premiums on insurance policies
2. Accepting deposits or savings from individuals and then lending these pooled savings to businesses.
3. Providing retirement benefits and insurance against major financial losses.
4. Collecting employee or employer contributions from pension fund participants.

Answer: b

3. __________

Business Objectives

• Business Survival
• Profit
• Returns to Shareholders
• Growth of the Business
• Market Share
• Service to the Community

Objectives of Public Sector Organizations

• Financial: Meet profit targets set by the government.
• Service: Provide service to the community and meet quality targets set by the government.
• Social: Create employment.

Stakeholder Groups

• Owners
• Government
• Community
• Customers
• Managers
• Banks
• Workers

Stages of Economic Activity

• Primary: Extraction of Earth's natural resources.
• Secondary: Manufacturing of primary resources.
• Tertiary: Providing a service.

Business Growth

Internal growth or external growth (takeover or a merger with another business):

• Horizontal Integration: When one firm merges with or takes over another one in the same industry at