BM

Triple bottom line

________= maintains that companies should commit to focusing as much on social and environmental concerns as they do on profits.

economy

An ________= group of activities carried out by a human community relating to the production and distribution of wealth (money)

Sole enterprise

________: One- man businesses usually engage in trade, manufacturing or commerce business and have no legal personality, this legal structure is often chosen by young entrepreneurs wanting to establish a small business on their own.

economic factors of production

The __________ are labour (employment), land /nature and capital.

State intervention

________ can sometimes improve the outcome of the market.

Macroeconomics

________: deals with aggregate economic quantities such as the level of growth of national output, the evolution of employment or inflation.

General partnership

________: two or more natural persons who together form a corporation to run a trade, manufacturing, or other commercial business.

Perishable

________: The service relevant resources are assigned for service delivery during a definiteperiod in time.

Microeconomics

________: studies the behaviour of individual economic units … that play a role in the functioning of the economy.

Public limited company,

______________: a corporation with a legal entity whose liabilities are covered exclusively by its own assets.

Rights Legally

________ is a secured right to produce (or sell) a particular good (under a particular.

value system

A(n) ________ is the network of organizations and the value producing activities involved in the production and delivery of an offering.

Tertiary sector

________: include both production and exchange, the production involves the provision of services that are consumed exchange involves trade, transport and communication facilities that are used to overcome distance.

Gratification

________: the elimination of a craving or a desire to seek relief from a perceived or real depravation.

Social Responsibility

________ Best practices: Moral Obligation, Sustainability, Licence to Operate Reputation.

Elective needs

________ are a variety of different needs which are not immediately necessary for life.

Minimum principle

________ (Minimization): A given result achieved with the lowest possible use of resources.

Stakeholders

________="people or groups "who are "affected "by the activities of the business, and /or can have an "influence "on the business.

scarce resources to meet unlimited needs.

Economics is about managing _______

Production

: A firm produces economic goods

Corporate Social Responsibility

________= do more than the legal minimum required.

Gratification

the elimination of a craving or a desire to seek relief from a perceived or real depravation

Partnering

deciding who to work with and the nature of these relationships

Existence needs

needs that are necessary to secure human life

Elective needs

A variety of different needs which are not immediately necessary for life, the goal is to achieve or exceed a general standard of living

Need

Feeling that something is missing

Want

Need aligned with will to act on it

Demand

Want becomes operational in the market

Supply

A firm supplies goods to the market

Production

A firm produces economic goods

INDIVIDUAL NEEDS

Each individual decides when and in what order to satisfy given needs

Collective needs

The more individuals who want to satisfy similar needs, the greater the problem for society

Free Goods

Unlimited Free Eg

Economic goods

Limited availability (scarce) Not free Eg

Tangible goods

Goods that can be touched Eg

Intangible

goods Goods that cannot be touched Eg

Consumer goods

Used by households (consumers)

Capital goods

Used by enterprises

Services Goods

are consumed as they are produced

Perishable

The service relevant resources are assigned for service delivery during a definiteperiod in time

Cocreated

Product that is created by working with one or more others service, provider

Simultaneous

Services that are are rendered and consumed during the same period of time

Unique

A service that is one-time generated, rendered and consumed and can never be exactly repeated

value added

the amount by which the value of an article is increased at each stage of its production, exclusive of initial costs

Value Chain

the categories of activities within an organisation, which, together, create a product or service

A generic description of activities, Identifying activities where the organisation has particular strengths or weaknesses, Analysing the competitive position of the organisation, identifying sources of sustainable competitive advantage, Looking for ways to enhance value or decrease cost in value activities

Uses of Value Chain

Minimum principle (Minimization)

A given result achieved with the lowest possible use of resources

Maximum principle (Maximization)

Produce the maximum possible result with a given allocation of resources

Microeconomics

studies the behaviour of individual economic units … that play a role in the functioning of the economy

Macroeconomics

deals with aggregate economic quantities such as the level of growth of national output, the evolution of employment or inflation

Two main reasons

Effectiveness (efficiency) Promote social justice (equity)

Market Economy (Capitalism, liberalism) Planned Economy (Communism, Collectivism

we can distinguish between two economic systems

Primary sector

utilization of earths natural resources such as land, water, vegetation, raw materials and minerals

Secondary sector

add value to natural resources by transforming raw materials into valuable products

Tertiary sector

include both production and exchange, the production involves the provision of services that are consumed exchange involves trade, transport and communication facilities that are used to overcome distance

Sole enterprise

One-man businesses usually engage in trade, manufacturing or commerce business and have no legal personality , this legal structure is often chosen by young entrepreneurs wanting to establish a small business on their own

General partnership

two or more natural persons who together form a corporation to run a trade, manufacturing, or other commercial business

Limited liability company (GmbH/Sàrl)

a company with an own legal entity formed by at least one or more individuals or companies with a predetermined capital (nominal capital)

Public limited company, Ltd (AG/SA)

a corporation with a legal entity whose liabilities are covered exclusively by its own assets

HEG Genève

International Business Management 02-3

External stakeholders are of 4 types

Economic (e.g. suppliers, shareholders, banks) • Social/political (e.g. government agencies) • Technological (e.g. standards agencies) • Community (e.g. local residents

Stakeholder measurement of power

mapping the power/interest matrix and ranking stakeholder

Social Responsibility Best practices

Moral Obligation, Sustainability , Licence to Operate Reputation

Goal harmony

The two goals complement each other (They want the same thing )

Goal neutrality

Two goals have no influence on each other.

Goal conflict

The fulfillment of one goal negatively affects the achievement of another

• Hierarchy (formal power), e.g. autocratic decision making • Influence (informal power), e.g. charismatic leadership • Control of strategic resources, e.g. computer specialists • Control the human environment, e.g. negotiating skills • Involvement in strategy implementation, e.g. by exercising discretion • Control of strategic resources, e.g. materials, labour, money • Involvement in strategy implementation, e.g. distribution outlets, agents • Possession of knowledge or skills, e.g. subcontractors, partners • Through internal links, e.g. informal influence

Stakeholder power

Triple bottom line

maintains that companies should commit to focusing as much on social and environmental concerns as they do on profits

internal stakeholders (e.g. managers and employees) and external stakeholders.

Stakeholders can be divided into

An industry

group of manufacturers or businesses that produce a particular kind of goods or services.

The market for goods and services.

The Labor market.

The Capital ($) market.

we can identify three types of “markets” where these “agents” interact.

consumer goods eg food, clothes their durability eg capital goods, the degree of completion, Finished goods: – ready to be sold to the end-user customer, Semi-finished goods: – more work needed before being sold to the end-user customer and affinity (relationship) goods

Goods can be classified according to their use,

effectiveness (efficiency)
and promote social justice (equity)

State intervention can sometimes improve the outcome of the market. Two main reasons

A value system

is the network of organizations and the value producing activities involved in the production and delivery of an offering.

The ‘make or buy’ decision – which activities to do ‘in-house’ and which to outsource.

Understanding cost/price structures across the value system.

Identifying ‘profit pools’ .

Partnering – deciding who to work with and the nature of these relationships.

Uses of Value System/Network :

labour (employment), land /nature and capital.

The economic factors of production are

interaction between economic agents on free markets

A market economy essentially consists of the