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

Perfect Competition

Characteristics

1. Companies cannot influence product prices.
2. Market share does not influence market price.
3. Consumers are fully informed.

Monopolistic Market

Characteristics

1. Monopolists control prices, producing most or all goods.
2. Monopolists can manipulate supply to inflate prices.
3. Consumers face limited choices and potentially unfair pricing.

Inefficiencies of a Monopolistic Market

1. Allocative Inefficiencies: Society's resources are poorly allocated, limiting consumer choice.
2. Productive Inefficiencies: Lack of competition stifles innovation and service improvement.
3. Deadweight Loss: Monopolists' arbitrary pricing leads to social welfare loss.

Perfect Competition vs. Monopolistic Market

Example

• Competitive Market: Multiple gasoline companies;

Types of Advertising Agencies

There are many ways to classify advertising agencies. They can be classified according to:

• Scope: National and International
• Type of service they offer:
  • Advertising agencies proper.
  • Full-Service Agencies, Creative Boutiques.
  • Media Agencies
  • Specialized agencies (Promotions, Direct Marketing, Viral Marketing, Public Relations, Press Office, etc.).
  • Exclusive Agencies

Services Offered by Agencies

Agencies can offer all or some of the following services:

• Creativity: This is the core of their service, their reason for being.
• Marketing consultancy.
• Complementary services: promotional communication, direct marketing, merchandising, events, etc.
• Management of audiovisual, graphic, and event production.
• Planning and buying media.
• International

TEMA 1

1.4. Subjects of Strategic analysis: Model of the five Competitive Forces (M. Porter). S.W.O.T.: System to diagnose company’s internal and external competitive position when setting strategic objectives weaknesses threats strengths and opportunities. 1.8. Strategic Planning: Is the process of setting long term objectives, analyzing internal strengths and weaknesses and compromising needed resources to prevent threats and profit from opportunities

People M&D Leadership Investors, leaders and associates Global Economy Collaborate 1990-Actual Human Capital Management Owners, managers, trade unions and collaborators International Economy Compete 1960-1990’s Human Resources Owners, HR dpt, trade unions and employees Economic Recovery

Singapore Taxable Benefits

• Accommodation: Fully taxable till YA2019
• Furniture & Fittings: Partially taxable
• Company car: Taxable based on cost and usage
• Rental: Interest deductible, royalties taxable
• Premium: Taxable

Non-Taxable Benefits

• Profits from operation of Singapore ships
• Interest from approved banks and finance companies
• Singapore dividends, CPF withdrawals, Government pensions
• Various distributions and annuities
• Overseas income of individuals

Allowable Deductions

• Interest, Rent, Repairs, Salaries, CPF, Medical expenses
• Professional fees, Foreign exchange loss

Special Deductions

• Patenting cost, R&D, Renovations, Trade fair participation
• Royalty payments, PHV & taxi deductions

Capital Allowances

• Depreciation rules and allowances for equipment
• Replacement

Dear Mr. Stevens

I am responding to your letter of 10^th August in which you inquired about one of our business partners.

Sorry for not being able to provide you with the requested information as it would be a breach of trust.

However, if you can ask the company to contact us and provide instructions on how to act as your intermediary, we will be able to assist you.

Yours sincerely

Dear Mr. Scutton

I am responding to your inquiry about the company mentioned in your letter of 3^rd May.

In the past, we extended credit to that company for a lesser amount than you mentioned, and we need to send them a payment reminder before they settle the debt.

This information is strictly confidential, and we take no responsibility for its use.

Yours sincerely

Sustainable Design and Financial Strategies

High-Value, Eco-Conscious Products

Our updated designs reflect strong values. Despite higher prices, customers choose our products due to our commitment to environmental responsibility.

Cost Structure

This section outlines key financial considerations for various business models.

Fixed Costs:

• Salaries
• Utilities (electricity, water)
• Facility rent
• Machine operation costs

Variable Costs:

• Materials
• Services (transportation, website maintenance)

Revenue Streams

We generate income through direct sales from our home base, utilizing recycled materials and a bootstrapping approach.

Innovative Local Marketing Strategies

Connecting with the Community

1. Catchy Viral Trends: Leverage trending websites and topics.
2. Local Partnerships:

Supporting Sentences

Supporting sentences either explain or prove the topic sentence. They provide details and summarize what has been said, particularly towards the end of the paragraph. Supporting details could be examples, statistics, or quotations.

About the Essay Topic

The essay topic should be focused:

• It doesn't have to be too general or too narrow.
• The title should be a noun phrase, not a sentence or a non-clause; it can contain a gerund, but not a true verb.
• It should indicate the narrow topic of the paper.
• It shouldn't be ambiguous and use only standard English word forms.
• It should summarize the main idea.

Drafting

Freewriting

Freewriting is writing about a topic, focusing on identifying main ideas, supporting points, etc.

Other Techniques

• List-

TOPIC 4: PRICING

The Role of Price in Marketing

Price plays a crucial role in generating revenue, establishing a company's desired value proposition, influencing buyer decisions, and reflecting the competitive landscape. It is a dynamic element that can be easily adjusted to define market share and respond to competitor actions. Pricing decisions may involve various levels of management, from executives in small businesses to dedicated teams in larger corporations.

4C's Model of Pricing

The 4C's model considers four key factors that influence pricing decisions:

• Corporation: The company's overall objectives, costs, and profit margins.
• Consumer: Customer demand, price sensitivity, and perceived value.
• Competitors: Competitor pricing strategies and market

The IRPF (Personal Income Tax) is proportional and progressive, meaning that those who earn more, pay more. This is based on tax brackets applied to the taxable base.

Business Aspects: Partnerships, Capital, and Taxation

Key considerations include the number of partners, minimum capital requirements, type of liability, and taxation. It is generally more beneficial to optimize tax strategies.

Freemium Business Model

Freemium is a pricing strategy where a product or service is provided free of charge, but users are charged for additional features, services, or virtual/physical goods. This model has been used in the software industry since the 1980s. A subset used by the video game industry is called free-to-play.

Example: The accountingtools.com website... Continue reading "Understanding IRPF, Freemium, and Marketing Strategies" »

Unit 1.6: Growth and Evolution

Economies of Scale

• The long-run average costs fall as more output is produced.
• The idea of getting bigger is cheaper.
• When the costs of a business go down as the business grows.

Internal Economies of Scale

• Purchasing: The price is lower if you buy in large quantities.
• Financial: Big businesses are seen as less of a risk than smaller businesses.
• Managerial: They have specialized managers in the different areas which brings costs down as efficiency rises.
• Technical: Only big businesses can afford to buy the best technology, which in the long run brings down costs.
• Marketing: Large-scale businesses are the ones who can afford and spread the cost of the most effective and expensive types of marketing.

External Economies of Scale

• Consumers: