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

Start-up of a Construction Project: Architectural Competition

What is the Content of a Feasibility Study?

• Analysis of existing samples
• Site analyses
• Technical constraints (soil, inclination, etc.)
• Legal circumstances (regulations)
• Functional and technological analysis (e.g., museum, factory)
• Architectural program
• List of rooms/premises
• Functional analysis (drawings)
• Traffic analyses
• Legal analysis
• Cost estimation (area-based with plans, based on samples)
• Time estimation (for the whole project)

Types of Construction Projects

Introduction to the different types of construction projects regarding scale, cost, and time:

Minor Projects:

• Low cost
• Mainly privately financed
• Direct contract with the architect, responsibility, and tasks of the architect is complex

Large

Key Financial and Economic Definitions

Systemic Risk

The possibility that an event originating at the micro or company level could trigger severe instability or collapse an entire industry or economy.

Macroprudential Policies

Policies or actions related to the whole or significant parts of the financial system, aimed at promoting sound practices and limiting risk-taking. (Source: ECB)

Stress Tests

Simulations conducted under a number of problematic scenarios to assess whether an institution (typically a bank) can endure adverse market developments.

Systemically Important Financial Institutions (SIFIs)

Financial institutions (such as banks, insurance companies, etc.) whose failure may cause severe problems in the financial market due to their size and/... Continue reading "Key Definitions in Finance and Macroeconomics" »

Asset Transformation

Asset transformation: Banks make profits by selling liabilities with one set of characteristics (risk, size, return, liquidity) and using the proceeds to buy assets with a different set of characteristics.

Example: Savings deposits held by one person can provide funds to the bank to give a loan to another person. The bank has transformed the savings account into a loan.

Haircut

Haircut: The excess amount of collateral above the amount of a loan.

Excess Reserves

Excess Reserves: Reserves in excess of required reserves.

Bank Holding Company

Bank Holding Company: A company that controls one or more banks, but does not necessarily engage in banking itself.

Examples: Berkshire, JPMorgan Chase

Subprime Mortgage

Subprime Mortgage: Mortgages... Continue reading "Key Banking Terms and Concepts Explained" »

Pricing Strategies: Supply and Competition Factors

Pricing Strategies Based on Supply

Cost-Based Pricing and Production Orientation

• Focuses only on company costs and desired profit margin.
• Associated risks: Production orientation and marketing myopia.

Product Mix Pricing Strategies

Setting prices across an entire product line or related products:

• Product Line Pricing: Setting prices across an entire product line.
• Optional Product Pricing: Pricing optional or accessory products sold with the main product.
• Captive Product Pricing: Pricing products that must be used with the main product (e.g., printer ink or razor blades).
• By-Product Pricing: Pricing low-value by-products to efficiently dispose of them.
• Product Bundle Pricing: Pricing bundles of products

iMarketing: Creating Value and Building Relationships

iMarketing is a process by which companies create value to satisfy customer needs through strong and long-lasting relationships with them, and capture value from them in return, ensuring enough profit. Strategic marketing is about the analysis and search for opportunities in the market, taking as a starting point the mission and the competitive advantage. Operational marketing is about the specific action plan that is designed and implemented to achieve strategic objectives or goals with proper management of allocated resources and within a defined framework.

Evolution of Marketing

• Production concept (1920): Demand exceeds supply, attractive prices and availability, focus on efficiency, passive

Global Retail Marketing Fundamentals

Global Retail Marketing: A retailer is a company or individual that sells products directly to the end consumer.

The STP Marketing Model

STP: Companies use this model to develop and implement their marketing strategy.

• Segmentation: Dividing a market into smaller groups of consumers with similar needs or characteristics.
• Targeting: Selecting the specific segments to serve.
• Positioning: Proposing a unique value for the target segments.

Evolution from 4Ps to 7Ps

The transition from the 4Ps to 7Ps reflects the growing understanding of modern marketing strategy:

1. Product
2. Price
3. Place (Distribution)
4. Promotion
5. People
6. Process
7. Physical Evidence

Points 5, 6, and 7 specifically focus on the customer experience.

The 3Ws and Key Retail

Understanding Brand Equity: Core Advantages

Strong brand equity offers numerous benefits to businesses, contributing significantly to long-term success and market resilience:

• Greater customer loyalty
• Less vulnerability to competitive marketing actions
• Reduced vulnerability to marketing crises
• Larger profit margins
• More inelastic consumer response to price increases
• More elastic consumer response to price decreases
• Greater trade cooperation and support
• Increased marketing communication effectiveness
• Possible licensing opportunities
• Additional brand extension opportunities

Enhancing Marketing Communication Effectiveness

Effective marketing communication assumes consumers progress through a series of stages or mental states based on the communication received:... Continue reading "Unlocking Brand Equity: Core Advantages and Strategic Growth" »

Strategic Management Midterm Exam Study Guide (Chapters 1-6)

1. Competitive advantage
2. Innovation
3. Sustainability
4. Emphasis of strategic management - Long term
5. Strategic management within a small organization - informal and irregular
6. Response(s) to performance gap - objective, strategy, policies
7. Corporate mission - description of competitive advantage
8. Basic elements of the strategic management process - environmental scanning, evaluation, and disseminating information to external and internal
9. SWOT
10. Types of Board of Directors members - phantom, rubber stamp, minimal, nominal, active, catalyst
11. Lead director - (Catalyst) Assign by the CEO and makes decision of operation of the company
12. Sarbanes-Oxley Act - Protect shareholder, whistle blowers, financial statement
13. When

Industrialization Strategies

Integral Industrialization

Followed in core countries, where all industries are industrialized. The pattern is to re-diversify the industry. The economy is articulated with a domestic market. Specialization is low, meaning it is very diversified.

Import Substitution Industrialization

Applied in the periphery, this involves industrialization to substitute imports. Countries industrialize to replace products they used to import. Income from basic products is used to develop industry.

Export Substitution Industrialization

Aims to replace the export basket. Focuses on exporting high-tech products to increase profits. These countries manage to acquire some technology transfers developed by multinationals.

Trade Policy Debates

Liberalism