Strategic Business Investments: Types, Risks, and Selection Methods
Types of Investment
Increased market share for products the company produces and sells:
- Extension of the distribution network
- Improvement of product quality
- Implementation of marketing strategies
The development of new products is essential for the company, allowing access to broader market segments. Do not forget that in a market characterized by monopolistic competition, launching new products or strategies of differentiation are essential factors of competitiveness. Companies must spend a significant
Read MoreKey Concepts in Microeconomics: Definitions and Principles
Key Concepts in Microeconomics
Basic Economic Concepts
1. What is the origin of the term “micro”?
The term “micro” is derived from the Greek word mikros.
2. What is one demerit of socialism?
One demerit of socialism is the lack of individual incentives.
3. What is an economic problem?
An economic problem arises due to the scarcity of resources and unlimited human wants.
4. What is one determinant of market supply?
One determinant of market supply is the price of the product.
Fundamental Principles
1. Scarcity
Read MoreStrategic Planning and Marketing: A Comprehensive Approach
Strategic Planning
Strategic planning is creating and keeping a good balance between what the organization wants to achieve, its capabilities, and the opportunities available in the market as they change over time.
Mission Statement
The mission statement describes what an organization does, why it exists, and what it aims to achieve. It guides the organization’s decisions and actions by defining its purpose and goals.
Business Portfolio
The business portfolio is a collection of all the products, services,
Read MoreBusiness Value Creation and the Role of the Entrepreneur
Business Performance and Value Creation
The company fulfills a fundamental role in the functioning of the market economic system, justifying its appearance and legitimizing its role in the creation of the value it generates. Of these, we can highlight the following:
- Builds wealth by producing goods and services, creating employment, and developing the economic system.
- Coordinates, directs, and controls the production process. The employer decides the allocation of resources to production, directing
Supply Chain Management: Inventory and Network Design
Chapter 1: Supply Chain Fundamentals
Supply chain definition: Supply chain management is a set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses, and stores, so that merchandise is produced and distributed at the right quantities, to the right locations, and at the right time, in order to minimize systemwide costs while satisfying service level requirements.
What makes the management of supply chains difficult? Supply chain strategies cannot be determined in isolation.
Read MoreInternal Finance and R&D in Small High-Tech Firms: A Panel Study
R&D and Internal Finance: A Panel Study of Small Firms in High-Tech Industries
Himmerlberg and Petersen (1994)
Introduction
Since Schumpeter, economists have argued that internal finance is an important determinant of R&D investment. However, previous empirical studies have largely failed to find evidence of such a relationship. This study investigates the relationship using new panel data on small firms in high-tech industries. The pecking order theory supports this relationship: moral hazard
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