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

New Product Launch Concepts

1. Defining the Beachhead in the Launch Cycle

What marks the beginning of the beachhead?

• Establishing the Beachhead: This refers to the heavy expenditure needed to overcome sales inertia (“getting the ball rolling”).
• The beachhead begins with the Announcement.

2. What is a Lean Launch?

Lean Launch: A flexible supply chain system allowing the firm to respond rapidly to sales changes.

3. Postponement in the Lean Launch

What does postponement consist of, and what are its types?

Postponement: Refers to delaying finalization of product form and identity until late in the development process, and delaying commitment of inventory until the last possible moment.

Two categories:

• Time postponement: Deploy inventory as late as possible.

The Euro Crisis

The global economy has experienced slow growth since the U.S. financial crisis of 2008-2009, which has exposed the unsustainable fiscal policies of countries in Europe and around the globe. Greece, which spent heartily for years and failed to undertake fiscal reforms, was one of the first to feel the pinch of weaker growth. When growth slows, so do tax revenues—making high budget deficits unsustainable.

In 2007, EU economies, on the surface, seemed to be doing relatively well—with positive economic growth and low inflation. Public debt was often high, but (apart from Greece) it appeared to be manageable assuming a positive trend in economic growth.

Impact of the Global Credit Crunch

However, the global credit crunch changed... Continue reading "The Eurozone Economic Crisis and Its Global Impact" »

Types of Strategic Alliances

• Non-equity alliances

  They do not imply participation in the capital of the strategic partner.

• Equity alliances

  There is participation of at least one company in the capital of the strategic partner. There may also be cross holdings. A specific type is corporate venture capital.

• Joint ventures

  The companies involved in the alliance form a new entity, of which they are all owners (in equal or different percentage).

Main Risks Associated with Strategic Alliances

• Opportunistic behaviors

  To acquire all the necessary resources/capabilities in a short time without providing all the promised resources/capabilities. They are more common when contracts fail to anticipate them and/or incorporate mechanisms that dissuade them.

• A company

Nivea for Men Marketing Strategy

Who are the targets for Nivea for Men?

Nivea relaunched the Nivea for Men range in 2008. The company developed a comprehensive marketing plan for the relaunch, organizing activities to achieve specific aims. This study focuses on how a company responds to changes in consumer expectations, external influences, and business objectives.

Primary Business Objectives

The main objectives Nivea sought to achieve included:

• Increasing total sales
• Growing market share
• Improving brand image

Beyond increasing sales, the company aimed to expand its market reach. Research indicated that women were often the primary buyers of men's skincare products, leading Nivea to target female consumers. To enhance brand image, they emphasized... Continue reading "Strategic Marketing Analysis: Nivea for Men and ASOS" »

National Income Accounting Formulas

Gross Domestic Product (GDP) and Growth

• GDP = C + I + G + (X - M)
• GDP per capita = GDP / Population
• Real GDP = (Nominal GDP / GDP Deflator) × 100 (GDP adjusted for the inflation level)
• Real Economic Growth Rate = [(New Real GDP - Old Real GDP) / Old Real GDP] × 100%

GNI, NNP, and Green GDP

• GNI/GNP = GDP + Net Income from Abroad (Income from abroad - income sent abroad)
• GDP = GNI - Net Income from Abroad
• NNP (Net National Product) = GNP - Depreciation
• Green GDP = GDP - Environmental Costs of Pollution

Consumption, Saving, and the Multiplier

• MPC (Marginal Propensity to Consume) = Consumption (C) / Income (Y)
• MPS (Marginal Propensity to Save) = Saving (S) / Income (Y) OR MPS = 1 - MPC
• MPC (Marginal Change) = Change in Consumption

The Medieval Economic Structure

Feudalism and the Agricultural Economy

During this period, society had an agricultural-based economy, combined with a feudal system. This system consisted of a king served by vassals (like dukes, counts, or barons) who gave him an oath of fealty in homage.

The Role and Regulation of Medieval Guilds

Industry revolved around guilds. These were centers of medieval "industrial" production—trade, professional, and craft organizations of Roman origin—and served as the "business units" of the Middle Ages. They functioned as a kind of exclusive union, though they were unions of masters, not workers.

Guilds regulated production and social conduct. Unlike a modern firm, the primary purpose of a guild was not first and foremost... Continue reading "Feudalism, Guilds, and the Moral Economy of the Middle Ages" »

Understanding Organizational Environments and Culture

Key Concepts and Strategies

Direct Investment Strategies

1. What are the three main strategies for direct investment?

Answer: Greenfield venture, Acquisition, Joint Venture

Business Intelligence

2. What approach uses sophisticated software to analyze internal and external data for patterns and trends?

Answer: Business Intelligence

Types of Cultural Culture

3. What are the types of cultural culture?

Answer: Adaptability, Achievement, Involvement, and Consistency

Real-Time Information and Strategic Decision-Making

4. According to Eisenhardt (1989), how does the use of real-time information impact the speed of the strategic decision process?

Answer: The greater the use of real-time information, the greater... Continue reading "Understanding Organizational Environments and Culture: A Comprehensive Guide" »

Systems:

Since its inception, the EFQM Model has provided a blueprint for organisations across and beyond Europe to develop a culture of performance and innovation. Allows organisations to embrace change, drive performance and evolve for the future. Here are just some of the Model benefits:

• Define your purpose:

Purpose is the lifeblood of any organisation. Without it, there is no reason to serve. The new EFQM Model places an unparalleled emphasis on the importance of purpose, vision and agile strategies to organisations if they are to create sustainable value.

• It helps create your culture:

The new EFQM Model is an innovative culture creator, valuing core quality beliefs and shared goals at the heart of organisations whilst allowing them to remain... Continue reading "EFQM Model and ISO 9001:2015 Quality Management Principles" »

Trip to Denver: Global Professional Search – what employers look for.Skills: Language Proficiency and other “Power Skills”Language skills-second language/Lack of set skills (now referred to as “power skills”)-writing: business, english language-tolerance for ambiguity-cultural intelligence (competing global mindset: 3 elements)-problem-solving and decision-making (work in teams and operate in situations of conflict)-self-confidence.The monoglot ceiling.The Expatriate (Expat) – what is an expat?Today, regardless of the size of an org.(entre,small,medium) there exists a need for expats that possess a specific skill-set. expat: someone who works(live) abroad representing an org . HR execs look for 2 primary determinants that form their... Continue reading "Global Professional Search: Skills Employers Look For" »

The Eurocurrency and Eurodollar Markets

The term Euromarkets is often used to refer to the Eurodollar market. This sector encompasses the Eurocurrency, Eurobond, Euronote, and Euro-commercial paper markets.

Key Market Participants

• Large commercial, investment, and central banks
• Multinational Corporations (MNCs)
• International institutions like the World Bank and IMF

Operations are primarily centered in London, with significant activity in Paris, Brussels, and Frankfurt.

Defining Eurocurrency

A Eurocurrency is a freely convertible currency deposited in a bank outside its country of origin (e.g., US dollars held in a London bank). The Eurocurrency market consists of Eurobanks that accept deposits and issue loans in foreign currencies.

This market thrives... Continue reading "Understanding the Eurocurrency and Eurodollar Markets" »