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International Company
A company that imports/exports products to one or more countries.
Global Company
A company that pursues customers in all major regions (North America, Asia, Europe).
Absolute Advantage
The ability of a party to produce a greater quantity of a good or service than competitors using the same amount of resources.
Comparative Advantage
The ability of a party to produce a good or service at a lower opportunity cost than another.
Reasons Companies Trade
Profitable pursuit for excess resources, cost reduction, foreign market demand.
Risks of Trade
Natural disasters, political instability, exchange rates.
Benefits of (Free) Trade
Consumers pay lower prices and have more choice, promotes economic growth, prevents economic distortion.
Driver of Globalization
Factors that facilitate the international integration of markets and production.
Foreign Exchange
The market in which currencies are traded.
Low Canadian Dollar Effect on Trade
A low Canadian dollar can make Canadian exports cheaper and imports more expensive, affecting international trade and the economy.
Currency Pegging
Historically, currencies were pegged to gold values; now many use USD as a benchmark.
Cultural Nuances
Cultural differences that can affect international business practices.
Pocari Sweat
A Japanese energy drink that failed in foreign markets due to translation issues.
EU Tariffs on Chinese EVs
The EU is implementing a 36.3% tariff on Chinese electric vehicles in addition to an existing 10% tax.
Chinese EV Production Costs
Chinese manufacturers have lower production costs, allowing competitive pricing despite tariffs.
State Capitalism
An economic system in which the government controls the production and distribution of goods and services.
Market Economy
An economic system in which supply and demand guide economic decisions.
Advantages of State Capitalism
Government support allows for competitive pricing, faster company growth, and stability during downturns.
Disadvantages of State Capitalism
Retaliation from other countries, inefficiencies, overproduction, limits on competition and innovation.
Economies of Scale
Cost advantages gained by an increased level of production.
Vertical Integration
A strategy where a company owns or controls its supply chain.
Outsourcing
The practice of using external resources to carry out business functions.
Strategic Management
The process of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives.
SWOT Analysis
A strategic planning tool used to evaluate Strengths, Weaknesses, Opportunities, and Threats.
Tesla's Strengths
Technological advancements.
Tesla's Weaknesses
High cost of inputs.
Growth Strategy
A strategy that aims to increase a company's market share, sales, and profits.
Concentration Strategy
A strategy focusing on a single market or product.
Diversification Strategy
A strategy of entering new markets with new products.
Related Diversification
Entering a new market that is related to existing business operations.
Unrelated Diversification
Entering a market that has little or no relationship to existing operations.
Restructuring
The act of reorganizing the structure of a company.
Retrenchment
Reducing costs or spending in response to economic difficulties.
Liquidation
The process of bringing a business to an end and distributing its assets to claimants.
Downsizing
Reducing the number of employees or operations.
Divestiture
The process of selling off a subsidiary business or investment.
Strategy Formulation
The process of defining an organization's strategy or direction.
Branding Change Example
Ashley Madison's failed attempt to rebrand following a data breach scandal.
Strategy vs. Tactic
A strategy is a long-term plan; a tactic is a short-term action.
Five Strategic Forces
Framework used to analyze the competitive environment by showing the bargaining power of suppliers and consumers, the threat of new entrants, substitutes, and rivalry among existing competitors.
Target's Failure in Canada
Target rushed into Canada and did not adequately understand the market, leading to failure.
Costco's Treasure Hunt Strategy
A retail strategy that creates urgency by frequently changing inventory.
Costco's Low Mark-Ups
A pricing strategy that encourages customer retention due to lower prices.
Big Data
Extremely large data sets analyzed computationally to reveal patterns or trends.
5 Vs of Big Data
Volume, Variety, Velocity, Veracity, Value.
CIA Triad
A model designed to guide policies for information security within an organization.
Uses of Big Data
Predict demand, identify gaps, and perform turnout analysis.
Challenges of Big Data
Requires significant capital, recruitment, and training.
Chief Information Officer
An executive responsible for managing and implementing IT and computer systems.
Machine Learning
A type of artificial intelligence that enables systems to learn from data.
Threats of Climate Change
Increasing extreme weather events that force businesses to reassess risk management.
New Sustainability Model
A model that prioritizes environmental considerations before societal and profit concerns.
Technology in Climate Change
Tools such as EVs and renewable energy sources to combat climate issues.
Case Study - Shift
A vision focusing on transforming waste into energy and addressing global problems.
Coca Cola Company Overview
The Coca Cola Company has over 135 years in business and operates in over 200 countries.
Coca Cola Bottling Overview
Focuses on consumer relationships and local market strategies.
Advantages of Bottlers for Coke
Closer to clientele and ability to focus on brand-building strategies.
Disadvantages of Bottlers for Coke
Inconsistencies in production and potential communication issues.
Market Research in Acquisitions
Analyzing growth potential and synergies before a business acquisition.
Funding the Acquisition
Options may include equity and debt financing.
Integration & Optimization Post-Acquisition
Set clear objectives and leverage synergies.
Case Competition Example - FreshByte
A project aimed at tackling food waste by tracking fridge inventory.
Anti-trust Lawsuit against Amazon
Allegations of maintaining industry dominance through anti-competitive tactics.
Khan's Closing Thoughts
Encourages personal focus, prioritizing fulfillment over stress.
Marshmallow Test
A psychological test demonstrating the value of delayed gratification.
