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

CLOSE ECONOMY WITHOUT PUBLIC SECTOR:

UNIT 1

1. What are the two perspectives of marketing?

Philosophy and Technique.

2. Who first mentioned the concept of marketing-mix?

Neil Borden.

3. What is the current concept of marketing?

The current concept arises from the customer's or user's needs which guide production.

4. Do all companies are marketing oriented?

No, companies can be Sales or Marketing oriented.

5. What is the difference between the four 'p' and the 'four c's?

From a customer's point of view, the 4 P's of marketing become the 4 C's.

6. What decisions include sales management?

• Strategic decision
• Selection training
• Motivation
• Supervision and compensation of sales team.

7. What is relationship marketing?

Relationship marketing is the establishing of long-term, stable relationship with a... Continue reading "Key Concepts of Marketing and Market Analysis" »

Applicant (solicitante): A person who applies or requests something; a candidate. Application form (solicitud de): A document to be filled out by an applicant.

Apply for a job (solicitar un trabajo): apply for a position; reply to employment advertisement. Be in charge of (estar a cargo de): having control of (sth); be responsible for.

Be responsible for (ser responsable de). Bonus (sobre sueldo): extra pay. Boss (jefa): manager. Casual job (trabajo temporal): temporary job. Day shift (turno de día): daytime work period.

Dismiss (despedir): sack; fire an employee. Dismissal (despido): the act of being fired from a job. Duties (deberes): job functions / tasks. Earn one's living (ganarse la vida): to earn the money needed for food, clothing, etc.... Continue reading "Employment Terminology and Definitions" »

TM's Marketing Mix and Its Impact on Sales Targets

The marketing mix plays a crucial role in TM achieving its sales targets. TM offers a wide range of products, including hardware, home appliances, electronics, furniture, automotive parts, and office supplies. This extensive product range caters to diverse consumer needs, expanding its customer base and sales potential.

TM's primary aim is to offer the lowest prices in the market. This pricing strategy is supported by lean production methods, just-in-time (JIT) practices, and outsourcing to minimize costs. By offering competitive prices, TM attracts consumers and maintains a competitive edge.

TM effectively promotes its low prices and extensive product range through various marketing channels,... Continue reading "TM's Marketing Mix and Unique Selling Proposition: A Case Study" »

The Economy

People produce products and services to satisfy their needs and wants. Natural, human, and capital resources are used to produce economic goods.

Economic Systems

An economic system is the way in which a society organizes its economy. Types include socialist, centralized, and market economies.

Market Economy

In a market economy, people and companies produce, buy, and sell goods and services freely with only limited involvement by the state. Price is determined by supply:

• If the supply of a product is high, the price goes down.
• If the supply is low, the price goes high.

Economic Agents

• Families: Not necessarily a group of related people; can consist of one or several individuals. They consume goods and services and contribute to the factors

Defining Operations Management (OM)

Operations Management (OM) manages the resources and the transformation processes needed to produce the company's products and services. It involves managing people, machines, and information. OM is the business function responsible for planning, coordinating, and controlling the resources needed to produce products and services for a company.

Key Decisions Operations Managers Make

Operations managers must plan the production schedule. This entails deciding how much to produce and in what order. This information is used:

• To make purchasing and staffing decisions.
• Operations managers must manage inventory.
• They must arrange the inventory in the warehouse.
• Operations managers must also manage quality levels.

The Transformation

Fixed Costs

Fixed costs are the costs of production that a business has to pay regardless of how much it produces or sells. Fixed costs exist even if there is no output. These costs remain unchanged in the short run. They can change, but these changes happen independently from the level of output.

Scale of Operations

Scale of operations is the maximum output that can be achieved using the available resources. It can be increased in the long term.

Variable Costs

Variable costs are the costs of production that change in direct proportion to the level of output or sales. These include commission earned by staff, raw materials, packaging costs, etc. In theory, if there is no production, then variable costs equal zero.

Contribution

Contribution refers... Continue reading "Business Operations: Costs, Ventures, and Integration" »

Understanding Company Structure and Accounting Principles

A company is a legal entity made up of an association of persons, be they natural, legal, or a mixture of both, for carrying on a commercial or industrial enterprise. An accounting cycle is a set of steps applied in the accounting of a company. The general ledger contains all the accounts for recording transactions relating to a company's assets, liabilities, owner's equity, revenues, and expenses.

Elements of a Company

• Merchant
• Worker
• Technology
• Provider

Principles and Ethics Code of an Accountant

Accountants must adhere to a strict code of ethics, including:

• Integrity: The accountant must be upright in all their acts. It is not allowed to make any act that could discredit their profession.
• Discretion:

Key Accounting Terms

• Entries: Journal analysis of the effects of a transaction on the accounts, usually accompanied by an explanation of the transaction.
• Ledger: Single accounts kept updated by posting. Each is recorded with one debit and one credit.
• Assets: Resources controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity.
• Liabilities: Obligations of the enterprise arising from past events, expected to result in an outflow from the enterprise of resources embodying economic benefits.
• Equity: What is left of the assets after liabilities are deducted. Capital or owner's interest, withdrawals.
• Expenses: Amounts that have been paid or will be paid for costs that have been incurred

Fundamental Accounting Principles

Accrual Basis of Accounting

Revenue is recognized when earned, and expenses are recognized when incurred, regardless of when cash changes hands.

Cash Basis of Accounting

Revenue is recognized when cash is received, and expenses are recognized when cash is paid.

Matching Principle

Requires expenses to be recognized in the same period as the revenues they helped generate.

Time Period Principle

States that a business should report its financial results over specific, consistent time periods.

Key Financial Statement Components

Current Assets

Assets expected to be converted to cash, sold, or consumed within one year or one operating cycle, whichever is longer.

Long-Term Investments

Investments held for more than one year, typically... Continue reading "Essential Accounting Terms & Financial Definitions" »