BSNS111: Lectures- Markets and Society

What is ethnocentricity?

The belief that one's own culture, values, and behaviours are superior or correct.

What is the relativist fallacy?

The belief that no behaviour or belief can be judged as right or wrong because all cultural practices are equally valid.

What are the conditions of perfect competition?

• Many buyers and sellers

• Perfect information/knowledge

• No barriers to entry/exit

• Homogeneous products

• No externalities

• Firms are price takers

What is socialism?

A system where the means of production, distribution, and exchange are owned or regulated by the community, often democratically managed.

What is an intermediary?

An organisation or individual positioned between buyers and sellers that facilitates exchange.

What is communism?

A system where property is collectively owned and resources are centrally planned, with people contributing according to ability and receiving according to need.

Why does capitalism rely on markets?

Capitalism allocates resources through voluntary exchange and competition in markets, ideally approaching perfect competition.

What is strategic management?

The process of identifying organisational purpose and positioning a firm to succeed within its environment.

What is corporate public policy?

A strategic approach where firms engage with social and political issues that affect the organisation and society.

What is the enterprise level of strategy?

Determines the firm's role and responsibilities in society.

What is the corporate level of strategy?

Determines what businesses the firm should operate in.

What is the business level of strategy?

Determines how the firm will compete within an industry.

What is the functional level of strategy?

Determines how departments and activities work together to support overall goals.

What are the three ways firms intersect with society?

• Generic social issues

• Value chain social impacts

• Social dimensions of competitive context