Mid-term review Flashcards
Crown Corporations
example
-government owned
- trend is towards privatization
- some provinces use to invest in the province
example: Canada Post, CBC
gov
Taxation and Financial policies
List the 3 and give definitions
they rely on
**Federal government **
-relies on income tax and tax revenue to fund its activities
**Provincial government **
-rely on income tax and sale tax
Municipal government
rely on property tax
Purchasing policies
3
- Fiscal policy
- Federal government
- federal procurement policy
Fiscal Policy
How to government collects and spends money
monetary policy
- Bank of canada
- interest rates
- inflation
how bank supports sustainable economic growth
Department of finance
what do they do
determines fiscal and monitary policies
Socio-Cultural environment
- customs, values, attitudes
- customer preferences and taste (within cultures)
- ethical compliance and responsible behaviour
Porters 5 Forces
- Bargaining power of consumer
- bargaining power of supplier
- risk of entry by competitor
- Threat of substitude product
- Rivalry among established frims
Risk of entry by Competitors
Porters 5
Barriars to enter
- brand loyalty
- absolute cost advantage
- economies of scale
- government regulation
Rivalry among established Companies
porters 5, if weak…
If rivalry is weak
- companys can play with price
- can increase profitability
If rivalry is strong
- price wars
(price drops= profitability drops)
when is it higher?
Bargaining Power of Buyers
Porters 5
higher when
- many small sellers and few large buyers
- buyers purchase in large quantity
- buyers account for large potential sellers
when is it high?
Bargaining power of suppliers
- sellers product has few substitudes and is important to buyer
- when the buyers industry is not an important customer to supplier
- when suppliers can vertically integrate
What do you never want when it comes to bargaining power?
porters
-never want customers to have buying power over your company
Political- Legal Environment
relationship…
Relationship between business and government
- pro or anti business sentiment
the 5 Government Activites
- Crown Corporations
- Laws+ regulations
- taxation + financial policies
- financial aid
- purchasing policies
Who is the largest buyer of goods and services
Federal Government
What can Federal procurement policies incluence?
Regional Economies and companies
What is Economics?
how societys produce and distribute their goods and services amongst various segments of their population
what are the Four “whats” of an Economic System
- what determines what (and how much) is produced
- what determines how it is produced
- what determines how the economies output is devided amongst the people
- what determines the rate of growth the economy is expected to achieve
3 topics of Economic Philosophy
___ Economy
- Market Economy
- command economy
- Mixed economy
(economic Philosophy)
Market Economy
what determines it
goods and services that a country produces and the quantity its produced
(isnt planned)
determined on price and demand
(economic Philosophy)
Command Economy
WHO determines it
Goods and services that country produces, the quantity in which they are produced, and price at which they are sold
(planned)
determined by gov
(economic Philosophy)
Mixed Economy
Elements of Command and Market economy
Capitalism
an economic and political system in which a country’s trade and industry are controlled by private owners for profit.
The Systems to rights and freedom
there’s 5
what do u have to right to do
- rights to make profit
- to private propoerty
- to buy and sell
- freedom to compete
- freedom from gov interference
Economics
What does a Supply curve look like?
As the price of a given commodity increases, the quantity supplied increases
economics
Demand Curve
as the price rises, the demand falls
Equilibrium point
Market equilibrium, when supply and demand are equal
what is John Maynard Keynes Philosophy
You should borrow during bad times and spend to help economy
you should pay off in good times to prepare for bad times
Productivity Gain
produce greater qualiy of goods and service in same labour hours
3 Types of Unemployment
what contributes to it
cyclical- getting laid off ( when market cycles)
Seasonal - Ski hill, summer camp
Structural - restructuring company
Recession, government, tech change have all contributed a lot
Inflation
how do you determine how many years
Rise in price level of goods and services
72/ rate of inflation= # of years that prices will double due to inflation
National Dept
Government has adopted Keynesian Economics and deficit spending
Keynesian- prices are somewhat rigid, fluctuations in any component of spending
Socialist
Reduced Government role in economy
What are Ethics
When does it become more complicated?
Accepted principles of what is right or wrong governing the conduct of people and organizations
When dealing with other countries
What are some questionable Ethical behaviours
- Gold mining ( getting gold, then releasing toxins)
- Nestle (baby food formula)
- selling expired medical supplies in other countries
Corporate social responsibily (CSR)
3 Levels
- Public interest groups (supplier/distributors)
- General Public (customers)
- Ecologocial environment ( employees)
Reactions to CSR
corporate social responsibility
- established ethics departments
- undertaken a social audit
- stakeholders have actively enouraged companies to be proactive
External Stakeholders
Name 3/7
- Customers
- Suppliers
- Goverment
- Unions
- Local communities
- General Public
Vision Statement
a business document that states the current and future objectives of an organization
must aline with the mission statement
Mission Statement
A mission statement does not explain what a company does or how it does it. It attempts to succinctly explain why a company exists and what its purpose is.
Primary vs Secondary Goals
The primary goal provides the initial push which activates the cognitive calculus that incorporates all of the secondary goals.
Secondary goals then function to shape, and typically to constrain, the behaviors whose overriding purpose is to alter the behavior of the target.
?????
Opportunity and threat in three Environments
External or Internal?
Immediate industry
Macro-environment
National
External
Competitve Advantage
external or internal
Value creation, Low cost and differentation
-earning extraordinary profits
sustained competitive advantage -> maintained over a number of years
Distinctive Competencies, Ressources, Capabilities
required =
- unique
- valuable
- difficult to imitate
(Rare hard to find and valuable)
Tangible ressources
Something you can touch (things you have)
- cash
- equipement
- building
Intangible ressources
things you cant touch,
- Brand names
- reputation
- patent
- marketing
what makes a business function
Functional Level strategy
name 3/5
- Manufacturing
- marketing
- materials Management
- Research and development
- Human ressources
Business Level Strategy
what do companies want?
companies’ deliberate and purposeful actions to achieve competitive advantage within their specific market segments.
__ vs __
Business level strategy Emphasis
list all 4
Low cost vs Differentation
- focused low cost
- focused differentation
- broad low cost
- broad differentation
Global strategies
When businesses define one global brand, making little to zero changes for other markets.
example: Apple
Pressures of Global responsiveness
arise from differences in infrastructure or traditional practices among countries, creating a need to customize products accordingly.
Multi domestic business strategy
focuses on creating multiple, country-specific brands instead of one global brand,
International Business strategy
Typically, it refers to the plans of actions or policies designed to achieve an overall goal of private companies rather than governments
Different price points
global Business strategy
A global strategy is a plan to help a company grow from an international business (which sells products or services in other countries) to a global business
transnational Business strategy
type of global expansion strategy that companies use to combine high responsiveness to local preferences with greater efficiency and cost savings
Corporate level strategy
Corporate-level strategy means the overall plan for the future of the business. The strategy involves decision-making for financials, employees, management, and goals for the company
Diversification strategy
Diversification is most often done by investing in different asset classes such as stocks, bonds, real estate, or cryptocurrency.
Expanding your goods/ services offered
