Notes, abstracts, papers, exams and problems of Economy

Ikea

Strategy: Actions managers take to attain firm’s goals. Strategies focus on profitability (rate of return on invested capital) and profit growth (% increase in net profits over time). How to Increase Firm’s Profitability: Value must be created by consumer. Value creation measured by difference between price charged and cost of production. 2 strategies: Differentiation and low cost. Strategic Positioning: To maximize profitability firm must be efficient, configure internal operations, have the right organization structure (all must be consistent). Value Creation Activities: 1 Primary activities (creating, marketing and delivering product to buyers and providing support after-sale). 2 Support Activities (provides inputs that allow primary... Continue reading "Ikea Strategy: Global Expansion and Profitability" »

Product Policy

Product is everything that is offered in a market to satisfy a need, benefiting the company. A product has three levels: commodities, the actual product, and augmented product attributes.

Product-Related Attributes

These include quality and design.

The Brand

A combination of images, words, and graphics intended to identify a product. There are family and individual brands, trademarks of the manufacturer or distributor.

The Package

Wrapping dedicated to keeping the commodity safe and also serves to make the product more attractive to the consumer.

The Label

A tool providing product information.

Price Policy

The price is the number of monetary units that must be paid to acquire a unit of the product. Formulas for pricing include:

• Prices based

Globalization and Economic Factors

Globalization encompasses economic globalization (global business), the economy of communication and knowledge. Two key factors drive this: new knowledge production and communication (innovation), and the Internet as a new form of organization.

It should adapt the fundamentals of business function.

Internet's Impact on Companies:

• Better communication with foreign entities (cheaper, faster, and improved economic management and operation).
• Greater choice of investment and financing (no frontiers thanks to the Internet).
• Increased labor productivity (flexible working relationships).

Interconnection Between Companies and Institutions:

• Improved customer relationship provider (intensifies and facilitates communication).

Labor Relations

Labor relations involve the company's interactions with employee representatives, which can include:

• Company Committee: In companies with over 50 employees.
• Staff Officer: Up to 3 in companies with between 10 and 50 employees.
• Representatives: Unions are associations of workers created to defend their common interests. All workers have the freedom of association.

The company and employee representatives collaborate on collective labor conditions, negotiate collective agreements, and seek solutions to conflicts. A collective agreement is a contract negotiated and concluded by representatives of workers and employers, regulating working conditions in a specific geographic area and activity.

If the company and employees disagree on an... Continue reading "Understanding Labor Relations, ICT, and Stock Management" »

Expansion of the Crisis (1959-1975)

Economic Expansion (1959-1973)

The timid recovery in the fifties was quite worrying. It could have been without oil for lack of money. In 1957, the government incorporated technical experts in economics (technocrats) linked to the Opus Dei religious institution. The most prominent were Rubio (Minister of Finance) and Ullastres (Minister of Commerce), who prepared the Stabilization and Liberalization Plan of 1959.
Spain won the aid of the IMF and OEEC. The stabilization plan consisted of modifying autarky and establishing the foundations for the Spanish economy to progressively convert into a classic capitalist system. The economic situation as a result of applying autarky was absolutely disastrous, and

Banking Financial Intermediaries in Spain

Banks, thrifts, and credit unions constitute the Spanish banking system. These entities are financial intermediaries. The primary differences between them lie in their legal structure:

• Banks: Private companies aiming to generate profits for their owners.
• Savings Banks: Non-profit entities allocating profits to charitable and social causes.
• Credit Unions: Members are depositors who benefit from their financial services.

Regarding services, the typical activities of these banking intermediaries are very similar: deposit-taking and lending.

Market Failures

1. Cycles: The market is criticized for failing to ensure stable economic growth.
2. Externalities: Many economic activities generate external effects on society

The Role of the Company

The company is the basic economic unit in the face of production and is responsible for producing and publicly holding most goods and services.

The Employer's Evolving Role

The traditional employer is the person providing the capital and, at the same time, performing the functions of management. In companies, the entrepreneur-manager assumes the risk, and many times, is the founder.

As large companies emerge, there is a separation between the classical functions of the employer. On one side is the figure of the investor, who assumes the risks linked to the promotion and innovation by providing capital. On the other, it strengthens the role of the professional director, specializing in management and business administration.... Continue reading "Understanding Business Production and Efficiency" »

Types of Business Concentration

Based on Production Phases

Horizontal Merger

Occurs when companies within the same sector or performing the same processing or manufacturing stage combine.

Vertical Concentration

Involves the grouping of companies engaged in different phases of the production process, increasing industry supply through complementary products.

Conglomerate Merger

Characterized by multi-sectoral diversification.

Cartel

A formal agreement between firms to reduce or eliminate market competition, often controlling production and distribution.

Trust

The union of different businesses under central management to control product sales and marketing.

Holding Company

Controls other companies' activities through ownership of their shares.

Characteristics

Information Technology and Business Competitiveness

Reducing Transaction Costs and Brokerage

Inefficient markets require many intermediaries for transport, storage, collection, security, monitoring, and reporting. Computing and connectivity significantly improve market functions by facilitating:

• The instantaneous circulation of information on prices and product characteristics.
• The creation of more facilities to raise supply and demand.
• Inventory management and procurement.
• Rapid and safe transactions, among other things.

Electronic Commerce

Electronic commerce is a special instrument for the computerization of markets, with considerable growth potential and business opportunities across various industries.

Market Intelligence

Access to external market... Continue reading "IT Impact on Business: Lower Costs, Market Intelligence & Growth" »

Background of the Economic and Fiscal Regime of the Canary Islands (REF)

• 1507: First Royal Decree
• 1852: Port Franks
• 1972: Under a franchise and not the application of the Customs Revenue
• 1991: Adaptation to the EU Framework
• 1994: Current Economic and Fiscal Regime of the Canary Islands Act
• 2006: Renewal of the REF

What is Sought by the REF?

• Promoting the economic development of the Canary Islands
• Addressing the costs of remoteness:
  • Shortage of land and natural resources
  • Additional costs of supply and production
  • Difficulties in achieving economies of scale
  • Accommodation on the peninsula
  • Island market tightness

What is Intended by the Renewal of the REF?

• Improving the operation of the system
• Correcting inefficiencies
• Adapting to new regional aid guidelines for