Organizational Structures and the Evolution of the Entrepreneur
Organizational Structures
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Hierarchical Linear Model: Based on each person being immediately subordinate to a superior.
- Advantages: Simplicity, ease of understanding, and rapid decision-making.
- Disadvantages: Excessive concentration of authority and lack of motivation on the part of subordinates.
- Functional Model: Characterized by the existence of specialists who devote all their efforts to a particular task in the enterprise. Subordinates do not depend on the top immediately above them; there may
EU Social Policy: Labor Market, Employment & Social Security
EU Social Policy: Labor Market, Employment, and Social Security
Social Policy is regarded as another form of economic policy that focuses on labor market reform as a contributor to economic growth.
Binding vs. Non-Binding Provisions
- Binding Provisions
- Freedom of movement of workers
- Freedom of establishments
- Equal pay for men and women
- Rights to social security for migrant workers
- Non-Binding Provisions
- Paid holidays
- Commitments to improved living and working conditions
- General principles for implementing a
Key Economic and Social Science Concepts
Comparative Advantage
Comparative advantage occurs when a country has the capacity to produce goods or services at a lower opportunity cost than other countries. This allows exporters to gain more traction in the market by optimizing costs and benefits. For example, in the fruit sector, a country with a comparative advantage in fruit production can export more efficiently.
Supply and Demand
- Supply: The maximum quantity of goods a producer is willing to sell in the market at a given price and time.
- Demand:
IT Impact on Business: Change Management & Structures
IT and Change Management
Change Management at Firms
Implementing technology makes the company change processes to take advantage of the new systems.
Organizational change implies removing some structures, procedures, or routines.
Main goals of organizational change:
- Increase profitability
- Increase market share
- Improve efficiency
- Enhance the quality of service
Change management implies the method to make the complex migration from an initial non-desired status to a final desirable one.
The Process of Change
Process:
Read MoreCorporate Finance: Mergers, Acquisitions, and IPOs
Mergers and Acquisitions
1. Concept: Indisputable Grounds for a Merger (External Growth Versus Organic Growth)
A merger is an agreement between two or more legally independent companies to combine their assets and create a new company. This type of merger is sometimes called a consolidated merger and is not necessarily a “merger between equals”; rather, it can be an acquisition that results in a new company.
When one of the companies acquires the equity of the others, this merger is called a statutory
Read MoreMarketing Mix and Product Life Cycle Explained
The Marketing Mix
A company has four instruments on which to decide, and which are known as the 4Ps of the marketing mix:
- Product: The first decision that the company has to make concerns the characteristics that the product must have to attract potential customers’ demand. This includes the design, quality, branding, packaging, and guarantees. It is a long-term decision.
- Price: Pricing decisions are critical to the response of consumers, hence their importance in setting or modifying them. To make