Commercial Management & Operations
Commercial Management
Commercial management refers to the activities of for-profit organizations. These organizations have various business areas or departments, including administration, production, planning, safety and hygiene, quality control, distribution and transport, and commercial.
Buying and Selling
A commercial contract is one in which the vendor (a person or entity owning something) agrees to deliver property to another person (the buyer), and the buyer agrees to pay an agreed-upon price.
Read MoreEuropean Central Bank: Monetary Policy and Inflation
The European Central Bank (ECB) and the European System of Central Banks (ESCB)
The European Central Bank (ECB) was established in 1998, according to the Treaty on European Union, to support the euro. The ECB and the national central banks of EU member countries form the European System of Central Banks (ESCB), led by the ECB itself. Its guiding function is to define and implement the single monetary policy in countries that have adopted the euro as their currency. All countries of the European Union
Read MoreEconomic Cycles: Inflation, Housing, and Oil Impact
Cyclical Inflation
When there’s high unemployment, stocks piling up in warehouses, and low production levels, the European Central Bank (ECB) might inject cash into the economy. The president of the ECB achieves this by buying government bonds from the capital market. This sale provides banks with high cash reserves. However, cash earns low interest compared to other assets, so banks prefer to lend it out.
Banks then offer businesses attractive loan deals, encouraging expansion. After expanding, the
Read MoreDistribution and Pricing Strategies for Businesses
Distribution Management Strategies
There are several key distribution strategies:
- Direct Channel: This involves selling directly to the consumer without intermediaries. While it offers lower costs, its market reach is limited. Direct channels are typically used by utilities or when dealing with a small number of business clients. Most manufacturing companies rely on intermediaries (wholesalers and retailers) due to the complexities of distribution.
- Multiple Channels: This involves using various channels
Production Thresholds, Factors, and Efficiency
Production Thresholds and Profitability
Threshold production: This is the minimum quantity of a component that makes it cheaper to produce internally rather than purchase it.
- Q: CF / (p – hp)
- p = purchase price
- hp = fixed variables
- cf= fixed cost
Threshold of profitability (breakeven point): This is the amount of production sold after which the company begins to make a profit.
- Q: CF / (p – hp)
- p = purchase price
- hp = fixed variables
- cf= fixed cost
Production Function
The manufacturer or processing of goods,
Read MoreMoney and Financial Institutions: A Comprehensive View
Item 13: Money and Banks
What is Money?
Money is anything that serves as a medium of exchange. Its core functions are:
- Medium of Exchange: Money is generally accepted for transactions and debt cancellation.
- Unit of Account: Money is used for pricing and accounting.
- Store of Value: Money is a way to keep wealth; a financial asset.
- Standard of Deferred Payment: Payments to be made in the future are usually specified in terms of money.
Money can lose value due to inflation. Legal currency is issued by an
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