COMM 103 Study Guide - Midterm Guide: Bet Her, Retained Earnings, Pest Analysis
4 Nov 2016
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Document Summary
To understand and drive a full business model, managers conduct both a company-centric and market- centric analysis: Properly identify solutions to needs in the market. Create a mechanism that delivers those solutions to the right customer for the right price. Fundamental objectives of business owners: short term profit, long term profit and growth, social and environmental responsibility. Companies recognize these objectives through executing the business planning cycle over multiple time periods. The business planning cycle strategizes both short-term and long-term strategies to recognize continuous growth. Other factors affecting economic growth: political stability, established factors of production, manageable levels of debt, national monetary policy, low inflation, sufficient levels of investment, absence of corruption, comparative advantage. Requires more comprehensive analysis of market factors. Consider how global competitors affect their business. Strategy: plans and decisions guiding direction of firm and determines long-term performance. Tactics: immediate actions executed to meet short-term objectives set forth by current business planning cycle.
