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

What is GDP?

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

What is HDI?

HDI is an index of key dimensions of human development. There are three:

1. A long and healthy life: Measured by life expectancy.
2. Access to education: Measured by expected years of schooling of children, an entry age, and mean years of schooling of the adult population.
3. A decent standard of living: Measured by gross national income per capita adjusted for the price level of the country.

International Making-Bodies Institutions

United Nations

A supranational organization created in 1945. It ended the Second World War, guarantees security, peace, and the defense of human rights.

Organs:

• General

Distribution Channels

Three key flows define service distribution channels:

1. Information and Promotion Flow: Distribution of information and promotional materials to generate customer interest in purchasing the service.
2. Negotiation Flow: Reaching an agreement on the service features and terms to close the deal. Sell the right service to the right consumer.
3. Product Flow: Determining the delivery location.
   • People-processing and possession-processing services typically require physical facilities for delivery.
   • Information-processing services can often be delivered through electronic channels.

Service Location Strategies

Ministores

Create numerous small service factories to maximize geographic coverage.

Locating in Multipurpose Facilities

Establish service... Continue reading "Effective Service Distribution: Channels and Strategies" »

Management Control:

Process by which managers ensure that resources are obtained and used in the most efficient way to achieve goals. Defines strategy, organization MCS. Steps: Set goals, planning budgeting, measuring actual comparing, corrective.

Strategy:

Set of plans to achieve goals.

SWOT Analysis:

Analysis of the overall strategic possibilities of business and its environment. Purpose is to identify strategies that will create a firm-specific business model that will best align an organization's resources and capabilities with requirements of the environment.

BCG Matrix:

Aims to identify high-growth prospects by categorizing the company's products according to market growth and share.

Porter:

For developing an organization's strategy. It determines... Continue reading "Management Control Systems and Cost Analysis" »

Value Chain

Primary Activities

These activities relate directly to the physical creation, sale, maintenance, and support of a product or service.

• Inbound Logistics: All processes related to receiving, storing, and distributing inputs internally.
• Operations: Transformation activities that change inputs into outputs sold to customers. This is where operational systems create value.
• Outbound Logistics: Activities that deliver your product or service to your customer, including collection, storage, and distribution systems. These can be internal or external to your organization.
• Marketing and Sales: Processes used to persuade clients to purchase from you instead of competitors. The benefits you offer and how well you communicate them are sources of value.

4. Define each of the 4 P’s of marketing (the marketing mix). Provide an example of each.

Product: Creative value goods vs. services

Price: Capturing Value, money time and energy

Place: Delivering the value Proposition

Promotion: Communicating the Value proposition.

5. What is the definition of value?

The relationship of benefits to costs, what the consumer gets for what they give.

11. List and define the three macro strategies for developing customer value. What are characteristics of each strategy?

Operational Excellence: involves a firm's focus on efficient operations and excellent supply chain management. Good enough

Customer intimacy (excellence): involves a focus on retaining loyal customers and excellent customer service. Just right

Product... Continue reading "Marketing Mix and Customer Value: Definitions, Examples, and Strategies" »

Key Business and Marketing Terms

Marketing Mix

The four key decisions that must be taken in the effective marketing of a product.

Random Sampling

Every member of the target population has an equal chance of being selected.

Stratified Sampling

This draws a sample from a specified sub-group or segment of the population and uses random sampling to select an appropriate number from each stratum.

Quota Sampling

When the population has been stratified and the interviewer selects an appropriate number of respondents from each stratum.

Cluster Sampling

Using one or a number of specific groups to draw samples from and not selecting from the whole population.

Stakeholders

People or groups who can be affected by and therefore have an interest in any action by an... Continue reading "Key Business & Marketing Terms: Definitions & Concepts" »

Understanding Tourism Systems

Elements of Leiper's Tourism System

Tourist: The human element, individuals on tourist trips.

Traveler Generating Region (TGR): The origin of tourist trips, where they begin and typically end.

Tourism Destination Region (TDR): The location where tourists engage in their main visiting activities.

Transit Routes: The paths tourists take between TGR and TDR, where their main traveling activity occurs.

Tourism Industry: A collection of organizations providing tourism-related services.

Tourism Demand

Three Major Concepts:

1. Effective Demand: The actual number of people participating in tourism.
2. Suppressed Demand: Individuals who desire to travel but are unable to due to various constraints.
3. No Demand: Those with no interest in traveling.

The Role of Institutions in Economic Growth

Conditions for Beneficial Institutions

Several conditions contribute to the emergence of institutions that foster economic growth:

• Political Checks and Balances: Institutions that limit the power of political actors, such as through a balance of power, encourage the development of sound economic institutions.
• Broad Distribution of Power: When political power is dispersed among a wider group with substantial investment opportunities, the likelihood of favorable economic institutions increases.
• Limited Rent Extraction: Restricting the ability of those in power to extract excessive rents from society discourages the establishment of institutions that facilitate exploitation.

North and Thomas's Perspective

According... Continue reading "Economic Growth and Institutions: A Comprehensive Analysis" »

Global Entry Strategies

1. Exporting

Low risk, low control

Producing goods in one country and selling them in another.

2. Franchising

Low-moderate risk, low-moderate control

A contractual agreement between the firm (the franchisor) and another firm or individual (the franchisee). Allows the franchisee to operate a business using the name and business format of the franchisor.

3. Strategic Alliance

Moderate risk, moderate control

Collaborative relationships between independent firms - they do not invest in one another.

4. Joint Venture

Moderate-high risk, moderate-high control

When a firm entering a new market pools its resources with those of a local firm to form a new company in which ownership, control, and profits are shared.

5. Direct Investment

High