Business Economics: Behavior, Ethics, and Strategy
Economist’s View of Behavior
Business economics should provide a framework for analyzing problems. Darwinism: the fittest survive. People have unlimited wants; how to allocate resources, trade-offs (compensación). Limited resources, costly and imperfect information. Marginal analysis and cost-benefit analysis. Sunk Cost. Nature of opportunity costs: Explicit costs, implicit costs.
Decision Making Under Uncertainty
Lottery (uncertain outcome) probability. Key descriptive statistics: expected value
Read MoreCorporate Strategies, Management Functions, and Value Chain
Corporate Strategy
Corporate strategy determines what businesses a company is in, or wants to be in, and what it wants to do with those businesses (growth, maintenance, renewal). It’s based on the organization’s mission and goals, and the roles that each business unit will play.
Strategic Business Unit (SBU)
When an organization operates in several different businesses, those independent businesses with their own competitive strategies are referred to as Strategic Business Units (SBUs).
Types of Corporate
Read MoreBusiness Structures, Management, and Leadership Styles
A company is an organization created by a person or a group of people in order to provide inputs to achieve profits or economic objectives.
Business Classification
- Primary: Obtaining resources from nature.
- Secondary: Transforming raw materials and products into consumer goods.
- Tertiary: Varied activities including services provided to citizens, such as trade, transport, and administration.
Classification According to Number of Employees
- Micro: Below 10 employees.
- Small Businesses: Less than 50 employees.
Mergers and Acquisitions: Strategies and Process
What is M&A?
M&A (Mergers and Acquisitions) refers to the process of consolidating companies or assets through different types of financial transactions. Several ways this can happen include:
- Merger: Two companies combine into one or create a new joint entity.
- Acquisition: One company buys another and takes full control.
- Consolidation: Multiple companies merge into a single entity.
- Tender Offer: A company offers to buy another, paying in cash or shares.
- Asset Purchase: A company buys only key
Teamwork and Leadership in the Workplace
Key Concepts in Teamwork and Leadership
Here’s a summary of essential concepts related to teamwork, leadership, and motivation:
- Stress can be a positive factor for job performance. – True
- Dr. Belbin’s role theory is used at the beginning of team selection to distribute roles to each team member. – False
- All experts agree that the democratic style is the best leadership style. – False
- Intrinsic motivation occurs when we are motivated to perform a behavior or engage in an activity in order to obtain a
Sales and Market Segmentation Strategies
T-11 Sales
Functions: Market analysis, marketing, and sales.
Relationship Between Company Departments
Sales coordinates with other departments to achieve brand management goals. This includes connections with:
- Production department
- Finance department
- Human resources department
The Market
The commercial function involves three key elements: the product, the company, and the consumers.
Types of Market
- Perfect Competition:
- Product homogeneity
- Many different buyers and sellers
- Market knowledge
- Free entry and exit