Company Profitability
what is profit
this is the term for the money a company earns after subtracting all its expenses, taxes, and costs from its total revenue.
what does a good working environment look to you?
Positive reinforcements
compassionate team members
open and honest communication
what is the company?
It is all of the departments in a company working together to make it successful
What is Political Factors mean?
Political Factors is influencing factors related to government, political systems, policies, laws, etc., which have an impact on the operation and development of individuals, enterprises, industries, and even countries.
In the demand and supply model, what usually happens to demand when the price increases?
Demand decreases
what are company expenses
these are the payments needed to run the company such as rent, models, materials, and advertisement.
What is the Biggest strength of a company environment?
It is Customer service, brand identity, or technology innovations.
what is the role and importance to the microenvironment?
The company is very important to the microenvironment because it is what the whole microenvironment is based on. Without the company the rest of the actors wouldn’t exist.
What impact do political factors have on business?
It will restrict the company's development and market competitiveness. On the contrary, it will encourage the company to produce and sell in large quantities, reduce the company's costs, increase prices, and enhance market competitiveness.
In a perfectly competitive market, what is the typical level of long-term economic profit for firms?
Zero
advertising
digital promoting, traditional promoting
What are the challenges that the environment faces?
1. Balancing customer desires with product design
2. Advertising environmental sustainability without set standards
what are some impacts on strategies?
The company’s role is to create tactics, broad marketing plans, and strategies to make the company profitable. And to create customer value.
Example of Advantages brought by political factors in China.
New energy vehicles with a purchase date between January 1, 2024 and December 31, 2025 are exempt from vehicle purchase tax, of which the tax exemption for each new energy passenger vehicle does not exceed 30,000 RMB; for new energy vehicles with a purchase date in 2026 The vehicle purchase tax on new energy vehicles from January 1 to December 31, 2027 will be halved, of which the tax reduction for each new energy passenger vehicle shall not exceed 15,000 RMB.
What does the law of diminishing marginal utility state in microeconomics
As a consumers more units of a good, the additional satisfacation (utility) gained from each extra unit decreases.
management
this term means the planning, leading, and organizing
How can they convince customers to see there product and how can the customers see the product?
Can have billboards that go around different environments
make ads for the customers and the environments to see
what are some real-world examples?
-Canadian tire has flyers that advertise their products, they have multiple departments that collaborate to make it.
-Some departments are marketing, sales, products, finance, research.
What impact does it have on the business decisions and strateges?
1. Impact of policies and regulation
2. Impact of government policies
3.The impact of international relations
4.The impact of political stability
What action should a firm take in short run if the market price falls below its average variable cost?
Crease production
company efficiency
how effectively a company uses their resources
What do they value?
They value of what they sell and have good reviews on the product, have pride in the work they do, also advertising what they do to grab the customers attention.
what are some impacts on business decisions?
Some impacts are that all of the departments in the company are working together on the strategies and business decisions, the main people who do this is the marketing department.
How companies should deal with government factors?
1. understand and comply with regulations
2. Conduct lobbying and policy advocacy
3. build relationships with government stakeholders
4. Responding to fiscal and monetary policy changes
How can a monopolist maximize profits through price discrimination?
By charging different prices to different consumers or consumer groups based on their willingness to pay.