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

Marketing functions

Searching for business opportunities

The first function of marketing is to search for, identify and analyze business opportunities that may exist in the market. This search for business opportunities is generally carried out through market research to identify and analyze needs, problems, desires, changes and trends in the market that may represent an opportunity.

Market targeting and segmentation:

The second function of marketing is to segment and select markets. Firstly, the total market that exists for the product to be offered is segmented or divided into different homogeneous markets (groups of consumers with similar characteristics), taking into account variables such as location, age range, gender, socio-economic level,... Continue reading "Marketing Functions: Business Opportunities and Market Segmentation" »

The Gold Standard: A Historical Overview

The gold standard is a monetary system in which money is freely convertible into a fixed amount of gold. It evolved from the variety of commodity money there was before the development of paper money and fractional reserves banking. It started to function in 1871. As we know, this century was characterized by globalization and an increase in international trade. Therefore, all trade imbalances between nations were settled with gold. The main priorities of the government were to maintain gold reserves and exchange rate stability.

The Trilemma of the Open Economy

If you had the Gold Standard you had fixed exchange rates and unrestricted capital mobility but Not Monetary Autonomy. As a result, countries always... Continue reading "The Gold Standard: History, Impact, and Challenges" »

Policy as Institutional Output

• Governments bestow legitimacy, universality, and mandatory policies.
• The characteristics of government organizations and institutions influence the types of public policies embraced by officials.
• Certain issues, problems, and interest groups have more weight than others in government.

Process Model

• It conceives the political process as a series of political activities: identification of the problem, establishment of the agenda, formulation, legitimation, implementation, and evaluation.

Group Theory Model

• Policies are the efforts of groups to influence and modify public policies.

Theory of the Elite

• Public policy reflects the interests and values of the elite rather than the demands of the people.
• Change in public policy

• Finding and Satisfying Customer Needs and Wants

• Converting Customer Needs into Wants

• Advertising Promotional Activities (50% off, 2x1)

• Maintaining Loyal Customers

• Persuading Customers

Promotional Activities

Businesses use promotional activities to inform customers (potential) especially advertising, and intend to persuade them that something they want is a need. (Turning wants into needs)

• Customer Base: Group of customers that companies sell to.

• Market: All customers and consumers who are interested in buying a product and have the financial resources to do so.

• Target Market: A particular group of consumers at which a product or service is aimed. It is identified by the company to be potential clients and consumers can be individuals or businesses.

One clear change of mind F

CHAPTER 9: MERGERS AND ACQUISITIONS

1. The Basic Forms of Acquisitions

• Merger or Consolidation
• Acquisition of Stock
• Acquisition of Assets

Merger vs. Consolidation

Merger

• One firm is acquired by another
• Acquiring firm retains name and acquired firm ceases to exist
• Advantage – legally simple
• Disadvantage – must be approved by stockholders of both firms

Consolidation

• Entirely new firm is created from combination of existing firms

Acquisition

A firm can be acquired by another firm or individual(s) purchasing voting shares of the firm’s stock

• Tender offer – public offer to buy shares
• Stock acquisition
  • No stockholder vote required
  • Can deal directly with stockholders, even if management is unfriendly
  • May be delayed if some target shareholders hold out for more

Clients, Customers, and Consumers

• Customer: A person who buys a product but is not a habitual client.
• Client: A person who usually buys a product.
• Consumer: A person who uses a product but does not necessarily pay for it.

Consumer Protection

Consumers are at the end of the distribution channel. A consumer purchases a product or service for direct use, not for reselling or for further production. The following stages in the distribution chain of goods from their production to the time they reach the end user.

The manufacturer is the party that makes the product. This is stage 1.

The wholesaler is the intermediary who buys products from the manufacturer and sells them on to the retailer. This is stage 2.

The retailer is the party who sells the product... Continue reading "Understanding Consumer Rights and Legal Protection in Spain" »

T.11 1. Is

the organization design of the MNE a function of its strategy or vice versa? Is both a function of its strategy and its design also drives its strategy. The objective of organization design is to provide, maintain, and develop the organizational structure that works best toward the achievement of firm’s strategic objectives into workable assignments of rights, duties, and responsibilities for the various units and individual positions that make up the organizational apparatus. The structure can represent a constraint on the firm’s mode of operations and in turn on its strategic thinking.

2. If you

were a top manager in a subsidiary in Mexico, would you expect similar to subsidiaries in London in authority, knowledge flow, or strategic... Continue reading "Global Organization Design and Integration Strategies" »