[COMM 295] - Midterm Exam Guide - Everything you need to know! (19 pages long)
Document Summary
Firm"s manager has to allocate limited resources available to them to achieve rm"s objectives. Each task is constrained by resource scarcity: pro t. Most private sectors rms seek to maximize pro ts (r-c) Job is delegated to the ceo who is focusing on the bottom line which is to maximize pro t. Ceo tells production manager to minis cost of producing, market research manager determines how many units can be sold at a given price. Ceo concerned on how a rm is positioned in a market relative to it"s rivals: trade-offs. Since rms can"t have everything, there is trade-offs that can affect pro t: How to produce: produce x and use less y or produce z and use more y. What prices to change : product price: other decision makers. Important for managers to understands how decisions are made. Managers must understand how others make decisions: strategy.
