organizational structure
This structure is built around the owner manager and is typical of small
businesses
Entrepreneurial structure
This type of market occurs when a business has many different competitors, but each offers a somewhat differentiated product
Monopolistic competition
Low Power, High Interest
Keep Informed
....in demand as demand rises when the price falls
an expansion in demand
explains the relationship between changes in quantity demanded and changes in price.
Price elasticity of demand PED
the organization is divided into departments based on specialized activities
functional
Trade cycles
1.Boom (Expansion)
2.Recession
3.Slump (Depression)
4.Recovery
4Ps
Product, place, price , promotion
If the shift in the demand curve is outward, to the right, such a shift is called
an increase in demand.
Lower unit costs may arise from
technological innovations/more efficient use of existing factors of production/lower input prices/a reduction or abolition of an indirect tax
split their functions into core (i.e. strategically Important) and non-core activities.
Hollow organisations
•Demand and investment start to fall.
•Production slows down.
•Unemployment begins to rise.
Household incomes and consumption decrease
Recession
4C
cost, customers, competition, corporate objectives
measures the sensitivity of demand for one good to changes in the price of another good.
XED
•XED = 0:
Goods are independent (unrelated).
types of boundaryless organisations
hollow, virtual and modular
Porter’s Five Forces
Competitive rivalry
Threat of entry
Threat of substitute products
Bargaining power of customers
Bargaining power of suppliers
a high price is set to reflect/create an image of high quality
Perceived quality pricing
PED>1 and explain
Relatively elastic A small change in price leads to a larger percentage change in quantity demanded.
PED =1 explain
Demand changes exactly in proportion to price. Example: If price goes up by 10%, demand falls by 10%. Rare in reality, but useful as a theoretical concept in economics
Advantages and disadvantages of functional structure
(+)similar activities are grouped together, leading to:
– lower costs
– standardization of output/systems, etc.
– people with similar skills being grouped together and so not feeling isolated.
there is a career path for employees –
(-)Managers of the functions may try to make decisions to increase their own power or are just in the best interests of their function, rather that working in the best interest of the company overall.
This leads to empire building and conflicts between the functions.
Due to the longer chain of command, decisions will be made more slowly.
This style of structure is not suited to an organisation which is rapidly growing and diversifying
lose your turn
sorry
AIDA sequence
Awareness, interest, desire, action
2-3 examples of situations where the cost of supply increases and the supply curve shifts from S2 to S1 leftward
1.Increase in wages 💵
Increase in raw material costs
Higher taxes
Energy cost increases ⚡
If the government sets a minimum price above the equilibrium price (often called a price floor), there will be...
a surplus of supply