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

Mentoring: Development & Benefits

• It is a developmentally oriented relationship between senior and junior colleagues or peers. Mentoring relationships can occur at all levels and in all areas of an organization.
• Key activities include: advising, role modeling, sharing contacts, and giving general support.
• Effective mentoring can significantly improve outcomes such as:
  • Performance levels
  • Promotion rates
  • Upward mobility
  • Income
  • Job satisfaction

Employee Coaching: Goals & Productivity

• Employee coaching consists of ongoing, sometimes spontaneous, meetings between managers and their employees to discuss the employee’s career goals and development.
• Working with employees to chart and implement their career goals enhances productivity and can spur a

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

Evaluate and Select Suppliers

The most important duty of purchasing is the right to evaluate and select suppliers. This is what purchasing personnel are trained to do.

The selection decision in sourcing teams requires that members reach a consensus in selecting suppliers.

Review Specifications

The authority to review material specifications is also within purchasing’s span of control.

Purchasing should also lead or coordinate negotiations with suppliers. This means that purchasing retains the right to control the overall process, act as an agent to commit an organization to a legal agreement, and negotiate a purchase price.

E-Procurement and the Procure-to-Pay Process

We examine in detail the purchasing process, which includes all the steps that... Continue reading "Procurement: Supplier Selection and Purchasing Process" »

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:

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" »