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
- Multiedu.tul.cz
- Rydvalová, P., Maršíková, K. Small and
Medium Enterprises
- Introduction to Business
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Subject requirements
Semestr –credits
- Semestr project (25 points)
- Activity during the semestr (5 points)
- Attandance
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Exam – written exam 70 points
Form of the Project
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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
Conclusion
Business environment
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Geographical
Social
Political and legal
Economic
Ecological
Technological
Ethic
Cultural
What means „ECONOMIC“
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Availability and prices of factors of production
(resources, which are used to produce goods
and services)
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Tax burden of enterprises
Economic growth, monetary conditions
(macroeconomic growth, inflation, exchange rate,
purchasing power of customers)
Customers, suppliers, financial institutions
Do you know?
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Income tax of your country (PIT, CIT)?
Natural person x legal entity- body
(companies)
Inflantion
Unemployment
Value Added Tax
Average gross salary (wage)?
ECONOMICS
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Economics – a science concerned with law
governing the economic life of siciety.
To meet human wants and needs with limited
sources.
How, what and for whom.
Economy
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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
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Command economy (centrally planned)
- Economic decision are made by goverment
 Shortage x unsaleable commodities
- It was typical for socialist countries
(Free market economy)
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Law of supply and demand
Profitability
P
D
S
E
Q
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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
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Combines certain featues of pure market and
command economic systems
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Part of the production is governed by market
laws, some firms are publicly owned
Transition economy
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Economy which are in the phase of transition
from planned economy to an open-market
system
Government stops interventing in many
spheres of country´s life
Restitution, privatization, liberalization of
prices etc.
What is a market?
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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
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Gives the answer – what, how and
for whom to produce
Helps to allocate scare resources
Types of market
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Market of products and servises.
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Market of factors of production (land,
capital goods and labour markets).
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Financial markets (money and capital
market).
Competion
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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
paremeters
Perfect competition
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- market situation, where there exists a
large numbers of sellers and buyers
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Products are close substitutes and are
replaceable
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No single firm is able to dominate the
market
Imperfect competition
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At least one competitor is big and strong
enough to influence the market price
Cost advantage – lower prices
Barriers to competition – trademark, brand
name
Insufficient information
Administrative measuers, government
directives
Monopoly
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Oposite of perfect competition
Only one producer with various advantages
from such a position
Monopoly power – to fix a price above the
marginal costs
Monopsony
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Market with only one buyer
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The buyer has ability to influence the market
price
Monopolistic competition
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Market with many producers
Their product are differentiated – each of them
can set their own prices and their production is
kind of monopoly
Tender
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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
selected
Trust and cartels
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Sometimes serious distortion of perfect
competition
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Based on agreement with the aim of gaining
competitive advantage over non-members
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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
Profit
is the money left over from all sums received from sales
after expenses, which have been deducted
Enterprise
- an independent subject, founded usually by entrepreneur on
purpose to achieve some profit, which is usually the main
objective of business