Business Managment

State intervention

________ can sometimes improve the outcome of the market.

economic factors of production

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

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.

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.

Microeconomics

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

Perishable

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

Public limited company, Ltd

: 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.

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.

value system

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

Gratification

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

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.

scarce resources to meet unlimited needs

Economics is about managing ________

Production

: A firm produces economic goods.

Consumer goods

________: Used by households (consumers)

Gratification

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

The ‘make or buy decision

which activities to do ‘in-house and which to outsource

Partnering

deciding who to work with and the nature of these relationships

Existence needs

needs that are necessary to secure human life

Elective needs

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

Uses of Value Chain

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 (e.g

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

labour (employment), land /nature and capital

economic factors of production are