Strategic Management: A Comprehensive Overview
Strategies in Action
Integration:
- Forward
- Back
- Horizontal
Diversification:
- Related
- Unrelated
Intensive:
- Market Penetration
- Market Development
- Product Development
Defensive:
- Reduction
- Disinvestment
- Clearance
Management Strategies for Michael Porter
- Cost Leadership: Emphasizes manufacturing standardized products at a very low unit cost for price-sensitive consumers.
- Differentiation: Consists of developing unique products and services for consumers insensitive to price.
- Focus: Involves developing products and services
Corporate Finance: Funding Sources, Assets, and Liabilities
ITEM 12: Financial Function and Sources
All goods and rights a company owns are its assets. The way capital is distributed determines the economic structure of the company.
The net liabilities (equity) reflect the company’s debts and its own financing. How a person distributes the financial structure determines the company’s financial health.
- Current Assets are liquid assets, such as raw materials, cash on hand, and finished products.
- Non-current Assets are those assets that remain with the company
1929 Economic Crisis: Causes, Solutions, and Global Impact
The Economic Crisis of 1929
Crisis Solutions
Economists and governments implemented policies to combat the deflation of 1929. These policies aimed to revalue currency and encourage saving by:
- Raising taxes
- Reducing public expenditure
- Reducing imports and increasing exports
- Increasing customs fees
- Preventing capital leakage
- Lowering wage rates
President Hoover’s approach, despite the deflation and austerity measures, had significant consequences:
- A decrease in purchasing power
- Decreased demand
- Reduced investment
Keynes
Read MoreProduction Planning and Control Systems Optimization
Systems Planning and Control of Production
Definition: Processes enabling resource dedication forecasting for each task, detailing operation times and scheduling.
When designing planning and production control, consider:
- Installed production capacity (machinery)
- Production quantities
- Production timing
- Inventory levels maintained between periods
The goal is to meet demand while minimizing costs and maximizing product quality. One approach is a hierarchical method, dividing production operations into decision
Read MoreMarketing Essentials: Competition, Research, Strategy, and Mix
Block 5: Concept Lessons and Market
The market encompasses all activities related to the sale of a product, involving both buyers and sellers.
Market Rates
Perfect Competition: Characterized by product homogeneity, numerous suppliers and customers, full market knowledge, and freedom of entry and exit.
Imperfect Competition: Occurs when some characteristics of perfect competition are not met.
Types of Imperfect Competition
- Monopoly: A single company controls the sale of a unique product or service, dictating
Monetary Policy and Central Bank Roles
Interest Rates and Monetary Policy
In analyzing interest rates on money demand, we should first discuss the role of interest rates with the flow of international capital, especially in short-term movements called “capital flight.” These are exclusively financial interests where resources go to foreign countries that offer attractive interest rates and affect the national economy through exchange rate variations.
In Chile today, interest rates are higher than in most developed countries. This attracts
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