MIS 111 Lecture Notes - Lecture 8: Switching Barriers, Bargaining Power, Income Statement

• School: University of Arizona
• Department: Management Info Systems Main
• Course: MIS 111
• Professor: Mark Patton, William Neumann

Document Summary

Five competitive forces with potential strategic use of information resources: potential threat of new entrants. Switching costs: access to distribution channels, economies of scale, bargaining power of buyers, buyer selection. Switching costs: differentiation, threat of substitute products, redefine products and services. Selection of supplier: threat of backward integration. Industry competitors: cost-effectiveness, market access, differentiation of product or service. Introduction to financial statements: assets often generate income. Income = when you get paid for a product or service: assets = the value of anything you own. Liabilities often generate expenses: expenses = when you buy something, liabilities = the value of anything you borrow. Accounting principles: accounting items are classified into accounts according to their nature, translated into monetary units, and organized in statements, basic accounting formula, assets = liabilities + equity, assets = what the company owns. Liabilities + equity = how the ownership of assets was financed (by third parties or by the owner)