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

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'

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

Variable Costs are costs that vary in direct proportion to changes in output or the level of production. Possible Advantages:

• Dan, as a sole trader, has complete creative and management freedom.
• Dan can be more customer-focused due to constant interaction and communication with customers.
• Dan does not have to share the profit.

The Possible Limitations: The model assumes that all cameras are sold. Dan Electro might not be able to sell all of its cameras; therefore, the total revenue curve might not be accurate. The model is used under the assumption of unchanging conditions. Inflation and interest rates might indeed increase, which could affect the demand for the camera. The effectiveness of the model depends on the accuracy of the data. Dan might... Continue reading "Understanding Variable Costs and Business Strategies" »

Topic 1: Key Drivers of Change

Industry vs. Market

Michael Porter's Five Forces