Stakeholder Groups
These are the staff of an organization. They are concerned about working conditions and pay.
Who are employees?
This is an ideal situation that occurs as a business grows, it becomes more efficient and the average cost per unit decreases.
What is Economies of Scale?
This take place when two or more firms agree to create a new company with its legal entity.
What is a merger?
What is the calculation for revenue
Price x # of units sold
Tariffs, restrictive trade practices (such as more stringent safety standards on foreign products), embargoes are all examples of...
Protectionist policies
This stakeholder group is concerned about receiving value for their money, in the form of quality.
This type of growth is considered less risky, as referred to as organic.
What is Internal Growth?
A method of external growth whereby an individual buys a license to trade using another company's products, name or logos.
What is franchising?
These type of business costs do not vary with the number of products (or units of service) made or sold.
What are fixed costs?
This is a tax on foreign products intended to make imports less price competitive.
This group are responsible for overseeing the daily operations and / or setting strategic direction.
Who are the managers / directors?
This type of growth occurs when a company purchases a controlling stake in another company without permission and agreement of its Board of Directors.
What is a takeover? (or hostile takeover)
A type of merger that occurs when two businesses in the same stage of production agree to combine and assume the identity of one of the firs.
What is horizontal integration?
Tarek sells 250 custom t-shirts a month at an average price of $35.00 each. He pays rent of $500 and pay himself a salary of $1000 per month. The variable costs per shirt are $10. What is his profit or loss?
Profit of $4750
This is any nation that allows a MNC to set up in its country.
What is a host country?
The group represents a ruling authority who may be interested in how the business conducts its activities and that it pays taxation.
Who is the Government?
This occurs when two or more businesses set up a new legal entity in order to split the costs/benefits of a specific project.
What is a joint venture?
This occurs when a business mergers or acquires another business earlier in its production chain, usually to get access to better quality raw materials or processing.
What is backwards vertical integration?
Publix's revenue for 2019 was $53billion total, the United States grocery chain industry reported total sales of $331billion. What is Publix's market share?
16%
This is an important economic indicator and represent the total value of all goods and services produced within a country's boundaries
What is GDP?
This stakeholder group provides stocks of raw materials and component parts.
Who are Suppliers?
This occurs when a two or more businesses pool resources in a business venture for mutual benefit, entry/exit into the venture is fluid, without ending the venture.
What is a strategic alliance?
This occurs when a firm or parent company acquires several disparate businesses that operate in very different markets / industries.
What is a conglomerate?
Tarek sells 250 custom t-shirts a month at an average price of $35.00 each. He pays rent of $500 and pay himself a salary of $1000 per month. The variable costs per shirt are $10. What is the average cost per unit?
$4000 / 250 = $16
These are for-profit social enterprises that are run by a government agency, yet appear to be a traditional, independent for-profit business.
What are Public Sector companies?