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

1. Backward Integration

   Assuming a function previously provided by a supplier.

2. Bankruptcy

   A company gives up management of the firm to the court.

3. Competitive Strategies

   Cost leadership, differentiation, and focus.

4. Concentric Diversification

   Growth into a related industry with a strong competitive position.

5. Conglomerate Diversification

   Diversifying into an industry unrelated to its current one.

6. Cooperative Strategies

   The direction of the firm as a whole and the management of its business or product.

7. Corporate External Growth Strategies

   Funds to purchase other companies.

8. Defensive Tactics

   Takes place in the firm’s own current market position as a defense against rivals.

9. Economies of Scale

   Cost falls as the company benefits at a higher level.

10. Executive

Antitrust Law: Article 101 and 102

Antitrust law, also known as competition law, addresses anticompetitive behavior through Article 101, which prohibits anticompetitive agreements, and Article 102, which prohibits the abuse of a dominant position.

Market Structures

Monopoly: Characterized by a single agent, heterogeneous products, and significant barriers to entry, which can be legal, natural, or artificial.

Oligopoly: Involves a few agents with substantial market power, heterogeneous products, and barriers to entry that are either artificial or natural.

Monopolistic Competition: Features many agents offering differentiated products.

Perfect Competition: Consists of a large number of agents, homogeneous products, no barriers to entry, and no individual... Continue reading "Antitrust Law: Market Structures and EU Single Market" »

Human Resource Management (HRM)

HRM is a management function with a specific focus on people. It's not an exact science, as human behavior can be unpredictable. The primary goal of HRM is to guide individual and group behavior by considering both individual characteristics and the environment.

Individual Characteristics

• Personality: This is largely unchangeable and influences how individuals interact with others and their work.
• Motivation: This is complex and influenced by both internal and external factors, such as salary. HRM plays a crucial role in maintaining employee motivation, as it directly impacts performance.
• Competence: This encompasses knowledge (acquired through education and training), abilities (inherent skills), and experience (gained

Global Segmentation:

Sub-set of a market = close match between specific products and customers.

1. Determination of Basic Market:

Reasons to buy (They make my customers see my brand as something important) and geographic location.

2. Identification of the Target Market:

Industrial, intermediate, and final consumer market. Business to business: doesn’t have any contact with the final consumer.

3. Industrial Market:

• Product application: Only using it for the process (When only the company is going to be using my products and to not have contact with the final consumer).
• End-Use Product: Whatever is going to be selling is going to be seen by the final consumer.
• Size of order: How much is going to be buying.
• Frequency of purchase.

Intermediate (Distribution

Set B) The Scope of Marketing: Kotler's 10 Entities

The scope of marketing addresses the question, 'What is marketed?' According to Philip Kotler, marketing professionals are involved with ten types of entities:

1. Goods

Physical goods constitute the major part of a country's production and marketing efforts. Companies market billions of food products and millions of cars, refrigerators, televisions, and machines.

2. Services

As economies advance, a large proportion of their activities focus on the production of services. Services include the work of airlines, hotels, car rental firms, beauticians, software programmers, management consultants, and so on.

3. Events

Marketers promote time-based events. Events can be trade shows, company anniversaries,... Continue reading "10 Entities in Marketing: Kotler's Perspective" »

Understanding Key Financial Concepts

Core Financial Statements Defined

Financial Statement

A financial statement is a report prepared to summarize the changes resulting from business transactions that occur during an accounting period.

Income Statement

An Income Statement is a report of the net income or net loss for a specific period.

Statement of Changes in Owner's Equity

The Statement of Changes in Owner's Equity is a financial statement that summarizes changes in the owner’s capital account as a result of business transactions during the period.

Balance Sheet

A Balance Sheet is a report of the balances in the permanent accounts on a specific date.

Report Form (Balance Sheet Format)

The Report Form is a balance sheet format that lists classifications... Continue reading "Essential Financial Statements and Accounting Terms" »

The Importance of Topic Sentences

Purpose of the Topic Sentence

A topic sentence is the most important sentence in a paragraph. It summarizes the main idea or thesis of the paragraph and helps organize the information within it. In formal writing, the topic sentence is usually the first sentence in a paragraph, but it doesn't have to be.

The topic sentence tells readers what the rest of the paragraph is about. All sentences after it should provide more information, prove the topic sentence with facts, or describe it in more detail.

Topic sentences also need to relate back to the thesis statement of the essay. The thesis statement is like a road map that tells the reader where the essay is going and how it will be treated.

Topic Sentences and Controlling

• 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'