Key Economic and Social Concepts Explained
Key Economic and Social Concepts
1. Capitalism
Capitalism is an economic system in which the means of production are privately owned and operated for profit. Supply, demand, price, distribution, and investments are determined mainly by private decisions in the free market, rather than by the state through central economic planning. Profit is distributed to owners who invest in businesses, and wages are paid to workers employed by businesses.
2. Productivity
Productivity is the amount of output per unit
Read MoreUnderstanding Corporate Culture: Impact and Key Elements
Corporate Culture
Beliefs and behaviors that determine how a company’s employees and management interact and handle outside business transactions.
Corporate culture is:
- Shared
- Pervasive
- Enduring
- Implicit
It Implies:
Behaviors observed regularly in the relationship between individuals.
The norms that are developed in the working groups.
The philosophy that guides a company’s policy regarding its employees or customers.
The dominant values accepted by a company.
The “rules of the game“, that is, the ways that
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:
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