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

Business Concept

1. Business Structure: Sole Proprietorship, Partnership, Corporation.
2. Business Size:
   • Microbusinesses: Up to 10 workers.
   • Small and Medium-sized Businesses (PYMES): 11 to 250 employees.
   • Macro businesses: More than 250 employees.
3. Economic Sector: Primary (extraction), Secondary (manufacturing), Tertiary (service).
4. Economic Activity: Industrial, Commercial, Service.
5. Scope of Activity: Local, Regional, Domestic, Multinational, Transnational.
6. Business Model: Retailer, Manufacturer, Fee-for-Service, Subscription, Freemium, Bundling, Marketplace, Affiliate, Razor blade, Franchise, Brokerage.
7. Description of Product or Service:
   • Product or service description
   • Product or service selling volume
   • Product or service selling prices
   • Product or service net sales
   • Net

Understanding Differentiation

Differentiation involves creating unique features that add value beyond price, making customers willing to pay a premium. It can be:

• Tangible: Like size, performance, or packaging (e.g., innovative smartphone designs).
• Intangible: Such as brand image or exclusivity (e.g., Chanel’s luxury appeal).

The Demand Perspective

From the demand perspective, differentiation is identified by understanding customer needs, decision-making criteria, and motivations, such as lifestyle or cultural preferences.

Strategic Implications

To leverage differentiation effectively:

1. Understand the product (what it does, key features).
2. Link customer preferences to product features.
3. Decide:
   • How to position the product.
   • Who to target.
   • If the differentiation

Comparative Analysis

Comparative analysis is the comparison of financial statements of a company for two or more years to understand performance. It mainly compares the income statement and balance sheet of different years.

Objectives

• Identifying increases or decreases in profits
• Analyzing the growth of assets and liabilities
• Evaluating financial performance

Types

• Comparative income statement
• Comparative balance sheet

Importance

• Helping management in decision-making
• Identifying strengths and weaknesses

Infrastructure Financing

Infrastructure financing means arranging funds for large projects like roads, railways, power plants, airports, ports, and telecom.

Sources Include:

• Government funding
• Bank loans
• Financial institutions
• Public-private partnerships
• Bonds

Essential Economic Concepts

• Scarcity: Limited resources, unlimited wants.

• Economics: The study of choices made due to scarcity.

• Economic Problem: The challenge of allocating scarce resources.

• Goods and Services: Goods are tangible items; services are actions or activities.

• Resources:

  • Natural: Raw materials.

  • Human: Labor.

  • Capital: Tools and machines used in production.

  • Entrepreneur: A risk-taker and innovator.

  • Productive Resources: All the above combined.

• Opportunity Cost: What is given up when choosing one alternative over another.

• Specialization: Focusing on a specific task to achieve greater efficiency.

• Production Possibilities Frontier (PPF): Illustrates trade-offs and efficiency.

Economic Systems

• Traditional Economy: Based on custom and historical practices.

Chapter 1: Selling Titles

1. Account Executive
2. Account Representative
3. Account Manager
4. Relationship Manager
5. District Representative
6. Marketing Partner
7. Regional Accounts Manager
8. Key Accounts Manager
9. Strategic Accounts Manager
10. Sales Consultant
11. Business Development Representative
12. Sales Associate
13. Marketing Representative
14. Territory Manager
15. Channel Partner
16. National Accounts Manager
17. Global Accounts Manager
18. Accounts Development Representative

Sales Career Opportunities

Service Companies

Service companies provide career opportunities in a variety of settings:

1. Hotel, motel, and convention centers
2. Telecommunication Services
3. Financial Services
4. Media Sales
5. Real Estate
6. Insurance
7. Business Services

Business Goods Channels

1. Industrial Salespeople
2. Sales Engineers or Application Engineers
3. Field Salespeople
4. Missionary

A financial system is the network of institutions, markets, instruments, and services that facilitates the transfer and allocation of funds between savers and borrowers, fostering economic growth. It plays a critical role by mobilizing savings, allocating resources efficiently, managing risks, and providing liquidity to support productive investment.

Meaning

The financial system connects those with surplus funds to those in need of funds, ensuring smooth monetary exchanges and supporting broader economic activity.

Importance

It mobilizes individual and institutional savings, channels them into investments, enables risk management through insurance and derivatives, provides a payment mechanism, and supports economic stability and development.

Functions

• Mobilization

The external environment significantly influences a company's operations and strategic direction. In Bosnia and Herzegovina (BiH), businesses like the retail giant Bingo are particularly susceptible to shifts in the political, economic, and social landscape. These external factors are crucial considerations in strategic planning, often analyzed through a PEST framework.

Political Factors and Business Impact in BiH

Changes in government and political leadership in BiH have a profound impact on businesses, especially those in the private sector. Given the country's complex political situation, even minor shifts in leadership can ripple through the business community. Governments establish the rules and frameworks within which businesses operate... Continue reading "Bosnian Business Environment: Bingo's Strategic Adaptation" »

Unit 1. Q 1: Difference between speculation, investment, and gambling. Describe the process of investment management. Also tell about difference between financial investments versus real investments. Also, first of all meanings of investments.

Introduction

Investment plays a crucial role in the economic development of a country as well as in the personal financial growth of individuals. Every person or business aims to utilize their funds efficiently to earn future returns. In simple terms, investment refers to the allocation of funds in assets or instruments that are expected to generate income or appreciate in value over time. It is a planned activity, done after analyzing risk, return, time period, and market conditions. Investment differs... Continue reading "Investment Fundamentals: Risk, Return, and Market Analysis" »

Entrepreneurship Fundamentals

1. Define Entrepreneurship and Explain Its Key Characteristics.

Answer:
Entrepreneurship is the process of identifying, developing, and bringing a vision to life by taking risks to create and manage a business. It involves organizing resources, innovating, and making strategic decisions to establish and grow a venture.

Key Characteristics of Entrepreneurship:

1. Innovation – Developing new products, services, or processes.
2. Risk-Taking – Willingness to bear financial, operational, and market risks.
3. Leadership and Vision – Ability to guide a team and foresee future trends.
4. Decision-Making – Making crucial choices regarding investments, operations, and strategy.
5. Resource Management – Efficiently utilizing land, labor,

Functions of a Financial Market

• Connecting Buyers and Sellers: Facilitates the meeting of buyers and sellers of financial assets without needing a physical location.
• Issuance and Exchange of Assets: Supports the creation (primary markets) and subsequent trading (secondary markets) of financial assets.
• Price Determination: Establishes the prices of financial assets through various pricing mechanisms, such as supply and demand or predetermined conditions.
• Public Information: Disseminates information about asset prices, trading mechanisms, and pricing systems.
• Providing Liquidity: Ensures that assets can be easily converted into cash without significant loss of value.
• Reducing Transaction Costs: Lowers the costs related to finding counterparts and determining