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

Fundamentals of Marketing

Marketing is the process of planning, designing, pricing, promoting, and distributing ideas, goods, and services to satisfy customer needs so as to make a profit. There are two main elements in the marketing process: market research and developing a suitable marketing mix (the 4 Ps). Selling and customer care are also important elements of the marketing process.

The Marketing Mix Principles

Principles are controllable variables which must meet the needs of the defined target group. All elements of the mix are linked and must support each other.

The Four Ps

• Product: The features and appearance of goods and services (what to sell).
• Price: How much customers pay for a product (what prices to exchange).
• Place: The point where

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

Essential Business Terminology

Unique Selling Proposition (USP)

That which separates your product from the competition.

ROI (Return on Investment)

How much money you make versus your initial investment.

Overhead

The indirect costs associated with running a business, often related to administration, marketing, and maintenance. These costs are not associated with product manufacturing or service delivery.

Profit

Total revenue minus total cost.

Revenue

Income generated before deducting expenses.

Liability

A financial debt, risk, or obligation. Liabilities include mortgages, outstanding loans, and accrued expenses.

Research and Development (R&D)

Activities related to investigating and creating new products.

Logistics

The processes involved in managing and... Continue reading "Key Business Terms & Academic Task Structures" »

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-

Economic Interest Groups (EIGs) Explained

Definition of Economic Interest Groups

An Economic Interest Group (EIG) is a collective of natural or legal persons who share common commercial and financial interests, coordinating their activities to achieve a specific shared objective.

EIGs Versus Collusion: Key Differences

• Collusion: Independent companies agree on price increases or other anti-competitive actions.
• No Collusion: Companies are part of the same holding or Economic Interest Group (EIG).

Types of Economic Interest Groups

There are two primary classifications:

• De Jure: A legally binding union, often established through a mercantile act or formal agreement.
• De Facto: An informal arrangement, often based on family relations or effective coercion.

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