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

Challenges of Strategic Information Systems

Implementing strategic systems often requires extensive organizational change and a transition from one sociotechnical level to another. Such changes are called strategic transitions and are often difficult and painful to achieve. Moreover, not all strategic systems are profitable, and they can be expensive to build. Many strategic information systems are easily copied by other firms, so that strategic advantage is not always sustainable.

Unique Features of E-commerce and Digital Markets

E-commerce involves digitally enabled commercial transactions between and among organizations and individuals. Unique features of e-commerce technology include:

• Ubiquity: Available everywhere, at all times.
• Global Reach:

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

Job Production

This type of production makes a single, unique product from start to finish.

Advantages

• Unique, high-quality products are made.
• Workers are often more motivated and take pride in their work.

Disadvantages

• Very labor-intensive, so selling prices are usually higher.
• Production can take a long time and be expensive, for instance, if special materials or tools are required.
• Economies of scale are not possible, often resulting in a more expensive product.

Batch Production

In this type of production, products are made in batches. For example, a shoe factory could make different batches of shoes based on their size and color.

Advantages

• Since larger numbers are made, unit costs are lower.
• Offers customers variety and choice.
• Materials can be bought

What is Marketing?

Marketing is fundamentally about identifying and profitably meeting human and social needs. It encompasses the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that hold value for customers, clients, partners, and society at large.

Defining Marketing & Management

Marketing management is both an art and a science. It involves choosing target markets and then attracting, retaining, and expanding customer relationships by creating, delivering, and communicating superior customer value.

Marketing vs. Selling: A Key Distinction

Managers sometimes mistakenly view marketing as solely “the art of selling products.” However, many are surprised to learn that selling is... Continue reading "Understanding Marketing: Core Concepts & Applications" »

Value and Satisfaction

The buyer chooses the offerings he or she perceives to deliver the most value, the sum of the tangible and intangible benefits and costs to her. Value is a combination of quality, service, and price (qsp), called the customer value triad. Value perceptions increase with quality and service but decrease with price. (real value - what an enterprise is offering).

Marketing is the identification, creation, communication, delivery, and monitoring in relationship to expectations. If the performance falls short of expectations, the customer is disappointed. If it matches expectations, the customer is satisfied. If it exceeds them, the customer is delighted.

Marketing Channels

To reach a target market, the marketer uses three kinds... Continue reading "Marketing: Value, Channels, and Environment" »

COMPANY ORIENTATION TOWARD THE MARKETPLACE

The production concept is one of the oldest concepts in business. It holds that consumers prefer products that are widely available and inexpensive. Managers of production-oriented businesses concentrate on achieving high production efficiency, low costs, and mass distribution. Marketers also use the production concept when they want to expand the market.

The product concept proposes that consumers favor products offering the most quality, performance, or innovative features. A new or improved product will not necessarily be successful unless it’s priced, distributed, advertised, and sold properly.

The selling concept is based on hard selling is risky. It assumes customers coaxed into buying a product... Continue reading "Understanding Marketing Concepts and Holistic Marketing Dimensions" »