Business Administration - Technical University of Liberec

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Transcript Business Administration - Technical University of Liberec

Business Administration
Ing. Kateřina Maršíková, Ph.D.
Department of Business Administration
Faculty of Economics
[email protected]
phone: +420 48535 2344
Literature - sources
Lectures – ppt presentations
- Rydvalová, P., Maršíková, K. Small and
Medium Enterprises
- Introduction to Business
Subject requirements
Semestr –credits
- Semestr project (25 points)
- Activity during the semestr (5 points)
- Attandance
Exam – written exam 70 points
Form of the Project
Written in MS Word – up to 10 pages
Title list – Name, title of the project, date, country
Content, pages numbering
Literature – resources – Harward style of citation
Theoretical part
Practical part
Business environment
Political and legal
What means „ECONOMIC“
Availability and prices of factors of production
(resources, which are used to produce goods
and services)
Tax burden of enterprises
Economic growth, monetary conditions
(macroeconomic growth, inflation, exchange rate,
purchasing power of customers)
Customers, suppliers, financial institutions
Do you know?
Income tax of your country (PIT, CIT)?
Natural person x legal entity- body
Value Added Tax
Average gross salary (wage)?
Economics – a science concerned with law
governing the economic life of siciety.
To meet human wants and needs with limited
How, what and for whom.
Complex of activities and subjects (firms,
companies, state, individuals) concerned with
the production, distribution, exchange and
consumption of goods within a certain area.
Basic types of economies
Command economy (centrally planned)
- Economic decision are made by goverment
 Shortage x unsaleable commodities
- It was typical for socialist countries
(Free market economy)
Law of supply and demand
Supply – the goods being sold
Demand – the interest of the buyers to
purchase the commodities offered
Market price – a figure determined by the
relation between the supply and the demand
Equilibrium – point of intersection between
supply and deman
Competion – creates an inseparable conditions
for the existence of any market
Mixed economy
Combines certain featues of pure market and
command economic systems
Part of the production is governed by market
laws, some firms are publicly owned
Transition economy
Economy which are in the phase of transition
from planned economy to an open-market
Government stops interventing in many
spheres of country´s life
Restitution, privatization, liberalization of
prices etc.
What is a market?
An economic area specializing in the exchange
of activities through an exchange of goods.
Sellers x buyers  interaction (influence of
prices and quantities)
Market functions
Gives the answer – what, how and
for whom to produce
Helps to allocate scare resources
Types of market
Market of products and servises.
Market of factors of production (land,
capital goods and labour markets).
Financial markets (money and capital
Contest in the market by legal means:
Lower production costs
Higher quality
Sale promotion
Competion has a positive impact, e.g. Quality
improvements,upgrading of technical
Perfect competition
- market situation, where there exists a
large numbers of sellers and buyers
Products are close substitutes and are
No single firm is able to dominate the
Imperfect competition
At least one competitor is big and strong
enough to influence the market price
Cost advantage – lower prices
Barriers to competition – trademark, brand
Insufficient information
Administrative measuers, government
Oposite of perfect competition
Only one producer with various advantages
from such a position
Monopoly power – to fix a price above the
marginal costs
Market with only one buyer
The buyer has ability to influence the market
Monopolistic competition
Market with many producers
Their product are differentiated – each of them
can set their own prices and their production is
kind of monopoly
Specific form of open competition
Partners in tender submit proposal for contract
on certain products
The purpose of tender is to obtain a larger
number of offers and the most suitable is
Trust and cartels
Sometimes serious distortion of perfect
Based on agreement with the aim of gaining
competitive advantage over non-members
OPEC- cartel dictating oil prices
Enterprise, its objectives and functions
What is business?
- all the work involved in providing people with goods and
services for a profit
is the money left over from all sums received from sales
after expenses, which have been deducted
- an independent subject, founded usually by entrepreneur on
purpose to achieve some profit, which is usually the main
objective of business