Understanding Financial Systems and Intermediaries
Financial System
The structure composed of a set of intermediaries to channel the savings of resources to finance private consumption, corporate investment, and public expenditure.
Funding
These are products that provide a means of maintaining wealth for those who possess it and an obligation to those who must.
- Types:
1. Liquidity:
The ease and certainty measures to implement short-term assets without significant losses.2. Risk:
The probability factor that the debtor does not keep his covenant.3. Performance:
Financial Markets, Intermediaries, Liberalization, and Crisis
Key Financial Markets
Three primary financial markets exist:
- Bank Lending: An obvious source of money is the bank. In the international market, money is typically lent at a floating rate, which changes periodically according to market rates.
- Bonds: Often, a borrower issues a receipt for borrowed money, which is a promise to repay. Key information includes the amount owed, the repayment date, and the interest rate. The term “bond” usually implies a fixed interest rate. Bonds are generally considered
Japanese Production Practices & Human Relations in Administration
Japanese Organizational Practices
Selectively emulate Japanese organizational practices: flexible work rules, just-in-time delivery systems, teamwork, a move away from vertical integration toward the extensive use of subcontracted inputs (outsourcing).
Post-Fordist Reorganization vs. the Japanese Model
The reorganization adopted the cost-cutting measures of lean production, but it did not adopt the employment security provisions. Workers, therefore, did not have the incentive to cooperate with employers.
Read MoreOrganizational Change: Apple’s Transformation & Conflict Resolution Styles
Apple’s Organizational Change: A Practical Case Study
Apple’s Organizational Change: Steve Jobs’ Return in 1997. This is a famous case that illustrates how Kotter’s model can be used in a real-world scenario.
Kotter’s 8-Step Model at Apple
1. Establish a Sense of Urgency
When Steve Jobs returned to Apple in 1997, the company was near bankruptcy. He communicated that Apple needed innovation to survive and become competitive again.
2. Build a Guiding Coalition
Jobs formed a strong leadership team, including
Read MoreLH Acquisition of PS: Strategic Analysis and Financial Impact
Analysis of LH’s Takeover of PS
Introduction: The Strategic Decision
Loretta, an entrepreneur, established LH using her own savings and venture capital (risk capital invested in businesses with high profit potential but difficulty securing traditional financing). LH pursued external growth—business expansion via integration with another business—by taking over PS. LH purchased 50% of PS’s shares, becoming the controlling company. Loretta employed a strategy, likely informed by a SWOT analysis
Read MoreKey Marketing Concepts: Consumer Behavior, Product Strategy, Distribution
Understanding Consumer Behavior
Individual vs. Social Factors
Individual Behavior: Directly responds to needs and purchase motivations, influenced by a set of the consumer’s internal and external factors.
Social Influence: Refers to group influence on the purchase decision process.
Client Roles in Decision Making
- Prescriber: A professional or individual who recommends the product; their opinion is valued.
- Buyer: The person who decides to buy the product.
- Payer: The one who spends the money and pays for