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

The Three Phases of Value Delivery

We can divide the value creation and delivery sequence into three distinct phases. This process begins before a product exists and continues through development and after launch. Each phase has significant cost implications.

1. Choosing the Value (Strategic Marketing): This represents the “homework” marketing must complete before any product exists. Marketers must segment the market, select the appropriate target, and develop the offering’s value positioning. The formula Segmentation, Targeting, Positioning (STP) is the essence of strategic marketing.
2. Providing the Value (Tactical Implementation): Marketing must determine specific product features, pricing strategies, and distribution channels.
3. Communicating

Spanish General Accounting Plan (PGC)

The Spanish General Accounting Plan (PGC) establishes the legal framework for technical accounting standardization. It aims to ensure that fundamental economic and financial information of companies is reliable and comparable.

Conceptual Framework

The conceptual framework is a set of fundamentals, principles, and basic concepts underlying the entire plan. It serves as an instrument that provides unity and consistency to the whole standard. Annual accounts must provide clear information.

Accounting Principles

• Going Concern: Financial statements are prepared assuming that the company will continue to operate in the foreseeable future.
• Accrual Basis: This involves the accounting records of business transactions

Profound Societal Shifts in the Late 19th and Early 20th Centuries

• What significant changes occurred in Europe and the USA during the late 19th and early 20th centuries?
  A: Profound changes occurred in social, political, and daily life, impacting the collective behavior surrounding production relations, work, and leisure. Significant population growth occurred as peasants migrated to cities, causing problems related to housing, education, and employment.
• What issues arose from the migration to cities?
  A: Problems related to housing, education, and labor.
• What role did the middle class play in the late 19th and early 20th centuries?
  A: The emergence of a mass market, driven by the middle class, caused significant changes in society (political,

Spain's Competitive Advantages for Startups

Talent, Tolerance, and Technology

Spain offers numerous public and private resources for new businesses. Key advantages include:

• The 3 T's: Talent, Tolerance, and Technology: Spain boasts innovative and advanced industries, fostering startup growth. Its open and tolerant culture welcomes diverse nationalities, creating a vibrant environment. Furthermore, Spain ranks among the top five global developers, demonstrating a rich talent pool.
• Public Support: Government programs actively attract foreign entrepreneurs. Initiatives like "Rising Startup Spain" offer incubation programs, workspaces, visa assistance, and financial support for initial expenses.
• Market Access: While Spain's market may be smaller,

SWOT Analysis Example: Direct Distribution

This example is based on an imaginary business-to-business manufacturing company that historically relied on distributors. The company is considering creating its own distribution company to directly reach end customers in sectors not currently covered by its distributors. This SWOT analysis examines that opportunity.

Subject of Analysis

Creation of a direct distribution company to access underserved end-customer segments.

Strengths

• Control and direction over final customer sales
• High product quality and reliability
• Superior product performance compared to competitors
• Excellent product lifetime and durability
• Idle manufacturing capacity
• Some employees have experience with end customers
• Existing customer list

Centrally Planned Economy

This system, inspired by Marxist theory, was born in the Soviet Union after World War I and thereafter expanded into Eastern Europe, eventually sinking in the late twentieth century. In this system, the only relevant operator is the public sector. Its main objective is to achieve an equal distribution of income. The management of economic activity is conducted through a centralized planning body that provides a series of multi-year economic plans.

Factors associated with its fall:

• Errors of forecast. In the absence of real economic signals, planners lacked reliable information on the progress of the economy; thus, they did not always correctly estimate resource allocations.
• Lack of incentives. With prices and wages set

Market of Natural Resources

The amount of natural resources available to a country or an economy is often considered constant, and short-term production obtained from them is also constant. However, changes can occur in the alternative uses for some resources. For example, a farmer can substitute their crops of corn with wheat, which by no means changes the amount of arable land.

Rent: Remuneration for Natural Resources

The remuneration received by the owners for the use of natural resources, which measures their ability to generate income.

Capital Market

Interest: The Economic Value of Time

The functioning capital market has these features:

• Demand for Capital

  It is formed by different operators who wish to satisfy their consumption needs, investment,

What is a Service?

A service is an act of serving others. It requires a relationship between the person or company providing the service and its users. Services can be classified by who provides them and their purpose.

Public Services

Public services are those whose provision is guaranteed by the state.

Private Services

Private services are offered specifically for financial gain.

Service Purposes

Services exist for various purposes, including:

• Commerce
• Financial services
• Transportation
• Tourism-related activities
• Information and communications
• Business support
• State administration
• Social and personal needs

Understanding Trade

Trade refers to the set of activities aimed at exchanging goods and services.

Factors Influencing Trade

• Development of Transport and Infrastructure:

Production and Economic Structures

Economic Phenomena: A set of phenomena related to production. This encompasses the sum of the output of all production units, creating value added throughout the economy. It's crucial for understanding the overall economic structure and short-term cycles.

Business Management: One type of business management focuses on formulating and implementing strategies. This involves making contingent decisions and considering various factors, such as access to financial resources, fixed capital, and renewal investment. Financial returns and recovery time are key considerations.

Productivity and Efficiency: Output per unit of employee input is a vital metric. Intensive operations management is essential for achieving... Continue reading "Business Management and Strategic Decision-Making" »