Market Economy Firms: Functions, Structure, and Strategies
Business Functions in a Market Economy
Firms coordinate production factors in a market economy. A fundamental feature of economic activity is the specialization of individuals in different roles to produce goods that meet the needs of the community, creating or increasing the usefulness of property. By transforming raw materials into products, companies create or increase the value of property, enhancing their capabilities to meet human needs. Firms take risks by paying in advance for the resources
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Administrative Management
- Assumes the following areas:
- Knowledge of documentation.
- Preparation of documentation.
- Treatment of documentation.
- Registration of documentation.
- Archiving of documentation.
- Control of the management process. In our subject: the sales transaction.
- Obligations inherent in the processes.
The Sales Transaction
- Is the process directly associated with the object. The company buys raw materials, goods, services, later sold to the market as processed product or service.
Phases of Sale
- Knowledge
Starting a Business: Essential Elements for Success
Business Project Essentials
A business project involves mobilizing material, human, and financial resources, assuming risks, and developing personal skills. It requires planning and aims to develop an economic activity for profit or social benefit.
Key factors for productive economic activity:
- Natural Resources: Raw materials, energy, supplies.
- Labor: Manpower and time dedicated by workers.
- Capital: Goods and financial resources needed for production.
- Organization and Entrepreneurship: Managerial, administrative,
Asset Property Classifications
Mass Property of Assets
Fixed or Non-Current Assets
Intangible Fixed Assets
These are assets that the company needs to produce, but do not have a corporeal materiality, such as a patent or a brand.
Expenditure on R&D
Costs of research are original and planned investigations that seek to discover new knowledge and understanding on scientific or technical grounds. Expenditure on development is the concrete application of achievements in research until commercial production begins.
Goodwill
A set of immaterial
Evolution of Work and Monetary Shifts in the Late 20th Century
Work Culture Evolution
In the late twentieth century, the generalization of a single production model, like the Fordist paradigm, was not feasible due to varying circumstances. Business criteria, influenced by work culture, regional institutions, and union strength, determined the choice of technologies and work organization. Economic integration led to the globalization of labor contracts, deregulation, and market flexibility, resulting in increased inequality and wage polarization.
Monetary and
Read MoreMarketing Fundamentals: Key Concepts
1. Differentiating Factor?
Supporting a design to surpass others, influencing consumer choice economically, practically, or psychologically.
2. Objective Market Research
Analyzing market response to a product.
3. Purpose of Business
Facilitating exchanges between buyers and sellers.
4. Supply and Demand
Bid is the seller’s offering at a specific price. Demand is the buyer’s willingness at a fixed price. Exchange occurs at the balance point.
5. Marketing Defined
Human activity satisfying needs and wants through
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