Business

Entrepreneurship involves the development of a business around an innovative idea, with the aim of regional or international growth. The entrepreneur in this case will need to find avenues to...

If both supply and demand increase at the same time, we’ll get a new market equilibrium point. In a free market, demand, or the willingness of customers to purchase a particular product, depends on...

A positioning map should not be confused with a perceptual map. The first is the actual positioning of a brand within a competitive marketplace, while the second is the consumer perception of a...

The average cost curve is u-shaped because costs reduce as you increase the output, up to a certain optimal point. From there, the costs begin rising as you increase the output. To understand why...

One advantage is that Nike is an internationally known brand and can thus sell shoes all over the world. Nike also can keep labor costs down by using laborers in the developing world—this allows...

Direct materials are those that are used directly in the production process and are reflected in the final product. For example, timber would be a direct material in the production of furniture. In...

This definition of management does not integrate the growing role of technology in business processes and therefore in the management process. A better definition to convey the present-day concept...

Globalization is the transfer of goods, services, and technology from one country to another. Countries sign treaties to ease the process of doing business for foreign firms. For example, the US...

Almost no one has unlimited economic resources. Most people, most families, and certainly all countries experience shortages in funds. In other words, they want (or perhaps need) more than they can...

There are a number of advantages and limitations to using graphs and charts. To start with the advantages, graphs and charts enable data to be summed up and understood in an instant, without...

Major branded hotel chains have the choice of standardizing their offerings across the brand or of letting individual properties customize their offerings to meet the needs of local markets. The...

A project is defined as a temporary activity aimed at achieving specific/narrow organization objectives. Programs, on the other hand, are organization activities aimed at achieving broader...

In business, authority and responsibility need to be aligned appropriately, with the person responsible for certain outcomes having the authority to make them happen. Authority refers to the...

The four main functions of management are planning, organizing, leading, and controlling. Planning involves the creation of strategies to achieve company objectives. Organizing is whereby the...

There are five dimensions of the business environment that influence many firms. These dimensions include the economic environment, the social environment, the political environment, the legal...

A free market economy has two key advantages. First, it allows for individuals to innovate. Individuals have the freedom to create new ideas, new products, and new services to sell for profit. They...

The four main functions of a supervisor are planning, organizing, leading, controlling. To understand the role of supervisor, it is first critical to understand that supervisor duties are...

In its most basic terms, the Dunlop Systems Theory in Industrial Relations is about the structure and development of relationships among the three integral members of labor relations (labor,...

The main factors affecting tourism demand include the economy, the number of sights and sites of potential interest to tourists, such as historical locations or natural wonders that cannot be seen...

Efficiency involves using the least amount of resources in order to achieve the greatest results. Scheduling tools that measure the number of people needed to service the customers in a store is...

When establishing a product mix, a business must decide where it places itself in terms of its target market. Does it want to compete to be the best-priced product, or the most luxurious, for...

In an ideal world, there’s clear differences between business administration and public administration. The former’s main concern is the business itself. When it comes to business administration,...

This phrase means that a person is either born with leadership skills or without them. Those that support this theory are of the opinion that you cannot teach a person to be a leader. Before we go...

Environmental uncertainty is when conditions are constantly changing within a business environment. As a result, management has little influence over factors that are outside of the company’s...

There is a difference between opened and closed environments in a management information system. In an open environment, the various components of an organization will communicate and share...

We'll begin with two scenarios to illustrate price elasticity of demand. First, there is a particular movie you want to buy on DVD, but the price is rather high when the movie is first released, so...

In business, regionalization is a business strategy frequently employed by globalized companies to compensate for some of the problems raised by globalization. Globalization means the...

While “productivity” is not exclusive of “quality,” as “productivity” can, indeed, refer to the quality of output as well as the quantity of items produced or services performed, for purposes of...

In accounting, a transaction is an agreement between a buyer and a seller to exchange or transfer goods, services, or assets. Transactions are recorded in journals, also known as Books of Original...

Line managers, also known as direct managers, are in charge of overseeing business operations and employees as well as connecting with higher-level managers. They are the go-betweens of the...

Process strategies refer to the method by which a company creates its consumer goods. The four most commonly accepted strategies are defined by how they relate to levels of both volume and...

First and foremost, marketing is concerned with maximizing sales to boost business earnings. The concept of marketing sheds light on marketing as a discipline and how it has influenced businesses...

A capitalist democracy system denotes a system based on economic incentives and free markets to boost businesses. It also supports a social system based on diversity with regards to views,...

Though the phrases are very similar in their external appearance, they hold different meanings. A change in quantity supplied is a simple phrase meaning the number of items you ordered has...

The best way to think of the difference between travel and tourism is one is part of the other but this did does not mean that they are the same. In short, tourism is a part of travel, but not all...

Let's begin by defining our terms. A plan sets the course for an organization's actions over time, setting goals and defining objectives (tasks that help to meet goals). Plans can be either...

A business entrepreneur is any individual who starts and operates a business while assuming the risks associated with any such venture (e.g., using one's own collateral in exchange for start-up...

The Economic cost is the monetary value of all resources employed in the course of business. It also refers to the opportunity cost of the inputs used in the enterprise. For example, a business...

Someone with good listening habits pays full attention to the speaker and asks follow-up questions to indicate that she is listening. In addition, the listener does not interrupt and resists the...

What, indeed, is the importance of middlemen in the world of business? Middlemen, by definition, are an added layer within a commercial process that may or may not facilitate a transaction at the...

The role of a consumer is not just important in an economic system—it is essential. Without the consumer, the economic system could not function, since the entire process of production takes place...

Proponents of privatization argue that it facilitates economic growth and should be prioritized by governments. However, detractors maintain that little has been done to mitigate the negative...

One very critical reason that business is important to the overall economy is that the business sector provides goods and services to consumers that the government either does not provide or feels...

There are a number of different pricing strategies which account for different competitive landscapes. Pricing strategy is an incredibly important aspect of the marketing mix. Cost-plus pricing is...

In general, capital means the money, wealth, or financial assets of a business. These assets are held in various forms, used for expenditures, and represent a portion of a company's net worth. The...

Operations management involves managing business processes that occur during the conversion of inputs, which include raw materials and labor, into outputs in the form of goods and/or services. From...