Notes, abstracts, papers, exams and problems of Economy

• No training or processes/standardization

• Frederik Taylor: Scientific Labour

• Conduct scientific studies of each job

• Match workers to jobs they're suited for

• Cooperate with workers

• Divide work between workers and managers (i.e. managers don't do the same jobs workers do)

• 'One right way' to do any task, no teamwork

• Fordism: Based on electricity, moved from craft production to mass production

• System based on standardization

• Minimize costs rather than maximize profits

• Vertical integration

• Fayol's 14 Principles of Management: Early theory of management

• Division of work: Dividing work of organization among people to make departments

• Balancing authority and responsibility: Right to give orders shouldn'

Introduction

Human Resources (HR), formerly known as Personnel, is often referred to as the"Cinderell" of company departments. While production managers manage production and sales directors head up their sales teams, other directors typically direct employees. HR departments, on the other hand, play a more multifaceted role.

Key HR Functions

HR management specialists are involved in a wide range of functions, including:

• Recruitment: Working with departmental managers to find and hire qualified candidates.
• Payment Systems: Administering payment systems in collaboration with the accounts department.
• Performance Appraisal Reviews: Facilitating performance appraisal reviews where employees discuss their progress with their managers.
• Training: Providing

Exam 04 Review: Key Concepts

1. Bond Issuers

   • Government (Treasury bonds)
   • Corporations (Corporate bonds)
   • Cities (Municipal bonds)

2. Bond Terminology

   • Call: Issuer's ability to pay off early.
   • Call Premium: Extra amount paid when calling a bond.
   • Par/Face Value: Amount of debt borrowed to be repaid.
   • Indenture: Bond agreement.

3. Asset-Backed Securities

   Debt securities from other loans, e.g., credit card debt, auto loans, home equity loans.

4. Zero Coupon and Discount Bonds

   • Zero Coupon Bond: No interest payments.
   • Discount Bond: Sells below par value.

5. Interest Rate and Reinvestment Risk

   • Interest Rate Risk: Capital loss due to interest rate changes.
   • Reinvestment Risk: Future interest reinvested at lower rates.

6. Current Rate Calculation

7. Junk Bonds

   Low credit quality corporate bonds.

Roles in Communication

• Motivating: employees and creating a proper cooperative environment.
• Reporting: providing data for decision-making and spreading goals.
• Controlling: performance of plans and behavior of members.
• Expressing: emotions about work achievements and relating organization with environment.

Communication Elements

• The sender: person transmitting the message.
• The receivers: recipients of the message.
• The message: information transmitted by sender.
• The channel: medium through which message is transmitted.
• The code: set of signs and symbols transmitting the message.
• The context: location, time, culture of participants.

Barriers to Communication

• Factors related to context: location or timing.
• Factors related to message/channel: noise.
• Factors related

The different modes of entry international such as Licensing, International Distribution, and Overseas Manufacturing provide an array of opportunities but may not be efficient for some service firms.

Particular service firms such as education and child care may prove to be too risky and lack a great deal of control, especially if growing through the route of using an International Agent or Distributor. However, some service firms such as retail would benefit from International Market entry.

In the case of entry into Greece for a British Denim Garments manufacturer for women and kids, the area of Licensing and Turn Key Contracts may prove to be more efficient. In the case of Licensing, an overall fee is relatively charged in exchange for the use... Continue reading "Modes of International Market Entry: Licensing, Distribution, and Manufacturing" »

Topic 1: Key Drivers of Change

Industry vs. Market

Michael Porter's Five Forces

Financial Institutions

Retail Banks: issuing shares or bonds-receiving deposits

Building societies: arranging mergers

Insurance companies: offering life insurance-providing pensions

Investment Banks: arranging or fighting takeover bids- arranging mortgages- giving financial advice to companies

Financial Terms

• Mortgage: is a loan to buy property
• Deposit: money you put in the bank
• Pension: money paid to retired person
• Stocks or Shares: securities representing part ownership of a company
• Capital: money invested in a business
• Bonds: are interest paying securities issues by companies that need to borrow money
• Takeover: company gains control of another one by buying its stocks
• Merger: two formerly separate companies join together

Legal and Financial Terms

• Conglomerates:

Balance of Payments (BoP)

Y = C + I + G + EX – IM = C + I + G + CA

When production > domestic expenditure = exports > imports = current account > 0 (surplus) and the trade balance is positive.

CA = S – I. If Savings < Investment: current account deficit (IM > EX)

Components of BoP

Current Account

The current account tracks flows of goods and services (imports & exports), income receipts (e.g., interests earned), and net unilateral transfers (gifts, remittances).

Financial Account

The financial account tracks flows of financial assets (shares, stocks) and foreign direct investment (FDI). It represents the difference between sales of domestic assets to foreigners and purchases of foreign assets by domestic citizens.

• Inflow (+):

Investment & Trading

Key Concepts

Collateral: Assets a borrower uses to secure or guarantee a loan.

Shares: Certificates representing part ownership of a company.

Institutional Investors: Financial organizations that own a lot of shares.

Day Traders: People who buy and resell shares in a very short time, often just a few hours.

Raise Capital: To get money from investors with which to run a business.

Issue: To offer securities for sale to financial institutions and the public.

Market Dynamics

Bid-Offer Spread (Bulls & Bears): The difference between the buying (bid) and selling (offer) price of shares. Bulls are investors who buy shares expecting prices to rise, while bears sell shares anticipating price drops.

Market Makers: Traders who buy and... Continue reading "Finance Essentials: A Glossary of Key Terms" »

The role of price in the marketing mix

When pricing a product, a business needs to choose one that fits with the rest of the elements in the marketing mix

Price determination in a free market

People think that prices are determined by the seller of the product, but that is not quite so. Prices are driven by market forces called demand and supply.

Demand

Demand is not only that people want to buy a product, but that they want it and are willing to pay for it. Prices can affect how much demand there is for a product. Normally, if the price goes up, demand goes down, and vice versa.

Supply

Supply also varies with price. However, it is different. If the price goes up, then the owners would want to be supplied with more products to take advantage of the... Continue reading "Understanding Price Determination in Marketing" »