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

Core Business and Marketing Definitions

Public Relations (PR)

Public relations embraces publicity but is broader; PR includes other ways of gaining favorable responses. Typical PR activities include:

• Donating money to charity
• Giving speeches
• Participating in community activities
• Sponsoring events
• Other public-facing activities

PR is the organizational function that manages the firm's communications to achieve a variety of objectives, including building and maintaining a positive image, handling or heading off unfavorable stories or events, and maintaining positive relationships with the media.

Intensive Distribution

When customers limit their search efforts, products must be easily available. Intensive distribution is a strategy where the firm maximizes... Continue reading "Essential Marketing, Distribution, and Pricing Concepts Defined" »

Advantages of Strategic Alliances

Technology Exchange

This is a major objective for many strategic alliances. Many breakthroughs and major technological innovations are based on interdisciplinary and/or inter-industrial advances. As a result, it is increasingly difficult for a single firm to possess the necessary resources or capabilities to conduct its own effective R&D efforts. This is further perpetuated by shorter product life cycles and the need for companies to stay competitive through innovation. Some industries that have become centers for extensive cooperative agreements are:

• Telecommunications
• Electronics
• Pharmaceuticals
• Information Technology
• Specialty Chemicals

Global Competition

There is a growing perception that global battles between... Continue reading "Strategic Alliances: Advantages, Risks, and Partner Selection" »

Fixed Costs

Expenses that do not change as a function of the activity of a business, within the relevant period.

Price-Elastic Demand Curve

When the price goes down a little, volume increases significantly. When the price goes up a little, volume decreases significantly. Many grocery items are price elastic.

Price-Inelastic Demand Curve

Volume does not change much, even with significant price changes. Products like critical raw materials, electricity, and heart pacemakers are price inelastic.

Tactical Pricing

Tactical pricing is the ongoing stream of pricing decisions the firm makes daily.

Pricing Toolkit

A set of pricing tactics for the firm to change a product's price.

Vision

A description of an ideal future state; an impressionistic picture of what... Continue reading "Key Business Concepts: Pricing, Control, and Performance" »

The Depression led to a loss of confidence in the economic future and major political changes. In the 1932 presidential election, Franklin D. Roosevelt (Democrat) swept to a landslide victory over Herbert Hoover (Republican). FDR argued that the Depression was due to faults in the capitalist economy and proposed government intervention to remedy the situation. FDR had been confined to a wheelchair since an attack of polio in 1921, and his long battle to rebuild his career had deepened his empathy with human suffering. He was the first president of the radio age and understood the importance of transmitting confidence.

The New Deal programs (1933-39) aimed to stabilize the economy, regulate commercial institutions, create internal demand, and... Continue reading "The New Deal Era: Government Intervention and Economic Stabilization" »

Why is marketing such an important function in most organizations?

Marketing is a vital business function necessary in nearly all industries, whether the organization operates as a for-profit or as a not-for-profit entity. For the for-profit organization, marketing is responsible for most tasks that bring revenue and, hopefully, profits. For the not-for-profit organization, marketing is responsible for attracting supporters or customers.

Market Research in Management Decisions

What part can market research play in management decisions on product/service design?

Market research is the planned, systematic collection of data designed to help management take decisions about each operation and to monitor the results of those decisions to understand... Continue reading "Essential Marketing Functions and Business Strategy" »

English Grammar: Conditionals

• Zero Conditional: Used for general truths and real situations. Structure: If/When + Present Simple, Present Simple. (Example: If you press this switch, the computer comes on).
• First Conditional: Used for likely situations. Structure: If + Present Simple, Will + Verb Infinitive. (Example: If I don’t get the job, I won’t move house).
• Second Conditional: Used for imaginary or unreal situations. Structure: If + Past Simple, Would/Could/Might + Verb Infinitive. (Example: If I were you, I wouldn’t apply for that job).

Essential Business and Financial Vocabulary

• Banking Operations: Set up a standing order, pay by card, deposit 100 in your account, enter your PIN, transfer money to another account, or withdraw 110 from

GNP/GDP 4 elements:

International Monetary Fund (IMF)

Original Aims and Purpose

The original aims of the IMF are to:

• Promote international monetary cooperation.
• Facilitate the expansion of balanced international trade.
• Promote exchange stability.
• Establish a multilateral system of payments.
• Make resources available (with adequate safeguards) to members experiencing balance of payments difficulties.

"The IMF’s primary purpose is to ensure the stability of the international monetary system – the system of exchange rates and international payments that enables countries (and their citizens) to transact with each other."

Key Activities and Functions

The IMF’s key function is to provide temporary financial assistance to members in balance of payments difficulties. The... Continue reading "International Monetary Fund and World Bank Roles" »

Developing Export Strategy

Companies develop this strategy when customers in other countries request their goods.

Step 1: Identify a Potential Market

A company should conduct market research and analyze the results. Example: ART BRZ

Step 2: Match Needs to Abilities

Determine whether the company can meet the needs of the market. Example: Air conditioning

Step 3: Initiate Meetings

Build trust and develop a cooperative environment among all parties. Example: Arizona Companies

Step 4: Commit Resources

Allocate the company's human, financial, and physical resources to the project.

Export/Import Financing

1. Open Account

Export/Import financing where an exporter ships merchandise and later bills the importer for its value. Example: MGT briefcase

2. Advance Payment

Export/... Continue reading "International Business Strategies: Exporting, Financing, and Entry Models" »

Inflation and Deflation

Inflation is an increase in prices, reducing purchasing power. It occurs when the price of goods and services rises faster than salaries. Consequently, demand falls, leading to reduced production and a decrease in GDP.

Deflation is when prices fall more than wages. This leads to increased demand, increased production, and a rise in GDP.

World Trade Dynamics

World Trade Without Restrictions

• Higher prices
• Fewer consumer choices

World Trade With Restrictions

• Protection of national defense and citizen health
• Protection against dumping. Dumping occurs when manufacturers export a product to another country at a price either below the price charged in its home market or below its cost of production.
• Potentially lower prices for consumers