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

Steven Paul Jobs

Steven Paul Jobs (/dʒ/ɒbz/; February 24, 1955 – October 5, 2011) was an American business magnate, industrial designer, investor, and media proprietor. He was the chairman, chief executive officer (CEO), and co-founder of Apple Inc., the chairman and majority shareholder of Pixar, a member of The Walt Disney Company's board of directors following its acquisition of Pixar, and the founder, chairman, and CEO of NeXT. Jobs is widely recognized as a pioneer of the personal computer revolution of the 1970s and 1980s, along with Apple co-founder Steve Wozniak.

Early Life and Career

Jobs was born in San Francisco, California, and put up for adoption. He was raised in the San Francisco Bay Area. He attended Reed College in 1972 before... Continue reading "The Legacy of Steve Jobs" »

Zero-Based Budget

Zero-based budget is a method of budgeting in which all expenses must be justified for each new period. The budget starts at a zero base, and every function within the organization is being analyzed for its needs and costs. Therefore, budgets are built based on what is needed for the upcoming period, regardless of the size of the budget.

Taxes

A compulsory contribution to state revenue. It is mandatory to pay taxes, and they are levied by the government on workers' income and business profits or added to the cost of goods, services, or transactions. Taxes raise money for government services that are later used for the well-being of society.

Fiscal Year

October through September next year. February president proposes. Budget committee... Continue reading "Understanding Budgeting, Taxes, and Statistical Concepts" »

The Innovator’s Canvas

Similar to the Business Model Canvas but with a different approach, as shown in the image above. We will focus on two key components: The Why and the Value Proposition Canvas.

The Why

Simon Sinek argues that many companies start with “how” instead of “why.” Some even lack a clear understanding of their purpose. Apple's success is attributed to starting with “why.”

“People don’t buy what you do. They buy why you do it.” - Simon Sinek

Sinek's Golden Circle framework revolves around three questions: why? (purpose), how? (process), and what? (results).

The Value Proposition Canvas

This canvas focuses on creating value for customers through products and services.

Customer Profile

• Customer Jobs: Tasks or problems

Industrial Platforms: Driving Production Efficiency

Industrial platforms enable seamless communication between components in the production process, from manufacturing equipment to packaging machines, without direct human intervention. The Industrial Internet promises to significantly enhance production efficiency, reduce operational costs, and minimize downtime.

Rather than developing proprietary software for internal network management, companies can license the necessary tools from these platforms. Furthermore, these platforms often supply the essential hardware required to operate an Industrial Internet system. A prominent example of such a platform is Siemens.

Product Platforms: The Rise of On-Demand Asset Rental

Building upon advancements... Continue reading "Digital Platforms: Reshaping Modern Business Models" »

Barter

Barter is the exchange of goods and services for other goods and services without using money.

Money

Regardless of the form it takes (e.g., euro bill), money is anything that functions as a medium of exchange, store of value, or standard of value.

Money Supply

Money supply is the sum of the cash money (coins and banknotes).

Monetary Aggregates

Monetary aggregates are broad categories that measure the money supply in an economy, established by the European Central Bank. Monetary aggregates are used to measure the money supply in a national economy.

• M1: Physical paper and coin currency in circulation, plus bank reserves held by the central bank, also known as the monetary base.
• M2: All of M1, plus traveler's checks and demand deposits.
• M3: All of

The Great Depression, a period of severe economic downturn, lasted from 1929 to 1939. It was the worst economic depression in the history of the United States. While economists and historians often point to the stock market crash of October 24, 1929, as the start of the downturn, the reality is that the Great Depression was caused by a confluence of factors, not just one single event.

In the United States, the Great Depression crippled the presidency of Herbert Hoover and led to the election of Franklin D. Roosevelt in 1932. Promising the nation a "New Deal," Roosevelt would become the nation's longest-serving president. The economic downturn wasn't just confined to the United States; it affected much of the developed world. One consequence... Continue reading "The Great Depression: Causes and Effects 1929-1939" »

The Great Depression

Starting with the collapse of the US stock market in 1929, the Great Depression was a period of worldwide economic stagnation and depression. Heavy borrowing by European nations from the USA during World War I contributed to instability in European economies. Sharp declines in income and production occurred as buying and selling slowed down. Widespread unemployment resulted, and countries raised tariffs to protect their industries. America stopped investing in Europe. This led to a loss of confidence that economies were self-adjusting, and President Herbert Hoover was blamed for the crisis.

Hoovervilles

Depression shantytowns were named after President Hoover, whom many blamed for their financial distress.

The New Deal

A series... Continue reading "The Great Depression and the New Deal" »

**The Definition of Business-to-Business Marketing**

Business-to-business marketing (or B2B marketing, as it is commonly known) involves the sale of one company’s product or service to another company.

**How Business-to-Business Marketing Differs from Business-to-Consumer Marketing**

The key distinguishing feature of a business-to-business market is that the customer is an organization rather than an individual consumer.

The nature of the product is not a determinant to distinguish between consumer market and business market.

Business-to-business markets are characterized by a higher concentration than business-to-consumer markets.

B2B markets are less price-elastic than B2C and might even end up more commonly having a reverse elasticity.

Dimensions:

Business Structures

Sole Traders

A sole trader is any business that is owned and controlled by one person.

Advantages of Sole Trader

• It is easy to set up as no formal legal paperwork is required.
• Generally, only a small amount of capital needs to be invested, which reduces the initial start-up cost.
• As the only owner, the entrepreneur can make decisions without consulting anyone else.

Disadvantages of Sole Trader

• The sole trader has no one to share the responsibility of running the business with. A good hairdresser, for example, may not be very good at handling the accounts.
• Sole traders often work long hours. They may find it difficult to take holidays or time off if they are ill.
• They face unlimited liability if the business fails.

Partnerships

Partnerships... Continue reading "Business Structures: Sole Trader, Partnership, Limited Company, and Franchising" »

Operations Management Fundamentals

Operations are concerned with the use of inputs to provide outputs in the form of products and services. Operations managers should consider:

• Efficiency of Production: Keeping costs low.
• Quality: Ensuring the product is suitable for its purpose.
• Flexibility: Adapting to new processes and products.

Stages of the Operation Process

The operation process involves converting a consumer need into a product that can be produced efficiently, organizing operations, deciding on production methods, and setting and maintaining quality standards.

Production and Productivity

• Production: The process of converting inputs into outputs.
• Level of Production: The number of units produced during a specific time period.
• Productivity: The