Documents

Business Management

Categories
Published
of 15
All materials on our website are shared by users. If you have any questions about copyright issues, please report us to resolve them. We are always happy to assist you.
Related Documents
Share
Description
asd
Transcript
  In order to be a price leader you must be able to manage and lower costs ○ Competing on price ã CPI= Core performance indicator ã Low tech grows aroudn 8-10% with 65% market share ○ High tech grows at 15-20% with 35% ○ Growth rate ã Price ○ Age ○ MTBF ○ Size ○ Purchasing criteria ã Rand d ○ Marketing ○ Prodution ○ Hr ○ Finance ○ Order ã Sales forcast-inventory= production level ã R+D= 1.2M ○ Plant= 2.5 ○ Marketing= 1.0 ○ Sales chanels= .5M ○ Estimate costs of launching a product ã Simulation September 11, 20148:40 AM  New Section 1 Page 1  What is a business: a system of intergrated acinos designed to ensure that an organization grows a market for a good/service which creates additional wealth for its shareholders ã Markets being served ○ Products being offered ○ Needs of of the market ○ Comercial endevours ã Success of business depends on the value creating skills of its employees ○ Employee interaction ã Organizational efficiency and structure ã These 3 things allow a business to function ã Assets+labout+capital+managerial accumum= business model ã The role of management is to anticipate, recgonize and sense an opportunity to create a product which is felt to be unique to a targeted custoemr ã Capabilities ○ Competencies ○ 3 c assesmtn allows management to determine what it is capable of doing in terms of exploiting an opportunity in the market  Capacity ○ 3c assesment ã When a company can offer a product/service that has more value to the consumer than other competng products ○ Comparative advantage ã Pg 6 fig 1.3 ○ Business planning cycle ã Short term profit ○ Long term growth and profitability ○ Social enviromental ○ Fundemental obectives of business managers ã Profit= bottom line profit ○ Return on equity  Profitability= how effectivley an organization uses its assets to create profit ○ Profitvs profitability ã A statement that summeries whom a product or service is geared towards ○ Indicates the benefits that the purchaser will realize as a result of buying the product ○ Communicates how the product differs from competetiors ○ What is the cost base for producing and supplying the good □ Brand strenght □ Emotional benefits □ Servicce benefits □ Do I have a strong enough value proposition to compete in the market segment □ In determining value proposition the management team must ask 5 questinos  Value proposition = service + emotional + cost + brand + product benefits ○ Value propisition ã A component of the value proposition ○ Price ã The more unique and important the product the greater the opportunity to communicate the value proposition ○ Difference between value proposition and price of product is the percieved positive value of the product ○ Price/quality relationship ã Chapter 1 September 14, 20147:48 PM  New Section 1 Page 2  Productivity gains, business investment, tech improvements, wage increases and good exchange rates are necessary for an economy to remain competitive ã Political stability, low national debt, established factors of production, national banking system (monetary policy), good level of investment, low inflatino, low corruption, legal system, comparative advantage ã Inelastic demand= steep curve ○ Elastic demand = shallow curve ○ Inelastic supply= steep ○ Elastic =shallow ○ Demand and Supply ã If there is too much of one it is not a good thing ○ Economic activity= expenditures+ savings+ investment(house or asset investment for business) + credit ã includes: goods/ services produced domestically, business investments, goods produced for export, gov spending ○ Canada and usa are driven by consumer spending  China is driven by exports  Different countries rely on different aspects to drive gdp ○ Gdp growth= more profits= reinvestment= greater gdp growth ○ Gdp growth = more people employed ○ Higher wages= more consuption= more gdp growth  Gdp growth = higher wages because of higher demand for labour ○ GDP cycle pg 50 (2.11) ○ GDP ã Inflation: inflation in the energy and food sector will significantly increase the costs of many consumer items ○ Geographic clustering: Certain regions develop their own economies and since they differ from other regions it is difficult for the governemtn to implement policies that will not negativley effect some provinces ○ What impacts the canadian economy ã Revenue from energy companies grows because they are traded in american dollars □ Pro: reduction in price of imported goods  Cons: Tourism, manufacturing exports  Canadian dollar increase in terms of usd ○ Currency rates ã Foreign owned entriprises are a growing trend and many Canadians are alarmed that the economy is turning into a branch market ○ Branch market impact ã Creates a position advantage and cost advantage ○ Sustanability and green initatives ã Need for imigration to repace retired workers ○ Aging population ã Canadain business will have to rely on managerial accum to stay competetive ○ Developing countries have lower wages and operating costs ○ Long term competetiveness ã Small business account for a majority of corporations ○ Small businesses ã More competetitors= more pressure to increase effeciency and productivity ○ Globalization ã UE ○ Inflation ○ CPI ○ Housing Stats ○ Manufacturing inventory ○ Cpi ○ Price of crude oil ○ Stock market indices exchange rate ○ Retail sales ○ Global markets ã PESTEL ã Chapter 2 September 14, 20147:50 PM  New Section 1 Page 3  How much influence does the governemtn have  Protectism?  Political ○ Socially ○ Enviromental ○ Technological ○ Economic ○ Legal ○ No market leader  No product differientation  Few barriers to entry  Unable to create distinctions to increase value proposition  Pure competition ○ Many compaines producing a similar product  True differientation is allowed to set in through advertising  Monopolistic competition ○ Few large players  Signifigant capital investment required  Large economy of scale required  Control over price  Oligopoly ○ Only one player  Large capital investment  Utlities  Monolopy ○ Pg 65 2.18  Rivalry among competetors  New entrants  Threath of subsitutes  Can they charge us more □ Can they supply of competetors □ Power of suppliers  Will buyers switch products □ Power of buyers  Porters 5 forces ○ Competetive models ã Little gov involvement ○ Free movement of labour and capital ○ Principals of private ownership ○ Demand and supply ○ Weealth creation ○ Open systems ã .  New Section 1 Page 4
We Need Your Support
Thank you for visiting our website and your interest in our free products and services. We are nonprofit website to share and download documents. To the running of this website, we need your help to support us.

Thanks to everyone for your continued support.

No, Thanks