Business and Marketing Terms: Definitions and Concepts
Barriers to Exit
Barriers to exit refer to the obstacles raised to companies that want to leave a sector or industry.
Barter
Barter is a commercial operation based on the exchange of property without cash payments.
Database
A database is a set of data stored on a computer or other location that is available for consultation.
Database Marketing
Database marketing uses a database that contains references to customers and prospects. This database can be expanded and analyzed to obtain accurate information.
Read MoreEmployee Motivation: Theories and Techniques
Employee Motivation
Motivational Process
The motivational process, from the employee’s standpoint, is defined as the impulse that leads them to act to satisfy needs and achieve goals. From the company’s perspective, it can be understood as the ability to get workers willing to do the assigned work and to perform it well.
Motivation Theories
Hierarchy of Needs: Maslow
Maslow’s Hierarchy of Needs posits that motivation is not merely an impulse, but a situation of prioritized needs, where some have more
Read MoreEconomic Sectors and Business Operations: Key Factors
Economic Sectors and Their Importance
Understanding the different economic sectors is crucial for comprehending how economies function. These sectors are broadly classified into:
- Primary: This sector involves working directly with raw materials. Examples include mining and farming.
- Secondary: This sector transforms raw materials into finished goods. Industry workers are a prime example.
- Tertiary: This sector provides services or sells goods. Examples include teachers, managers, and doctors.
Economic
Read MoreEconomic Autarky in Post-Civil War Spain: 1940s-1950s
Economic Autarky in Post-Civil War Spain
The Impact of the Civil War: The Years of Famine
After the war, Spain was a ruined country. The loss of life was compounded by the destruction of property. The impact on the population was a considerable loss of life. Regarding the settlement, displacement took place in the post-war years around the country because of disruption to the economy close to the ground. In terms of economic impact, the 1940s were the years of famine. The income level was not recovered
Read MoreBusiness Internationalization: Strategies and Entry Methods
INTERNAL Factors Driving Business Internationalization
Companies often choose to internationalize their operations for several internal reasons, including:
- Cost Reduction Through Economies of Scale: Companies can achieve significant savings on raw materials, labor, financial resources, and taxes by leveraging lower costs in other countries. This is often referred to as relocation.
- Access to Resources: Internationalization can be driven by attractive conditions in the destination country, such as:
- Abundant
Optimal Capital Structure: Impact on Firm Value and Cost of Capital
RA-RP Combination for Maximizing Firm Value and Minimizing Cost of Capital
The RA-RP combination aims to maximize the market value of the firm (V) and minimize the weighted average cost of capital (Ko). Several theories attempt to find the optimal capital structure. Two main groups of thought exist:
- Those that defend the existence of an optimal capital structure.
- Those that consider that there is no optimal capital structure.
Modigliani-Miller Theorem
Modigliani and Miller (MM) found that the optimal
Read More