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BSNS 111 - Exam Prep Questions And Correct Answers. Over 280 Questions And Correct Answers. With Complete Verified Solution Updated 2024.

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BSNS 111 - Exam Prep Questions And Correct Answers. Over 280 Questions And Correct Answers. With Complete Verified Solution Updated 2024. Bullseye (Sustainability Model) 1. Economy 2. Society 3. Environment Friedman Doctrine Maximise profits, but do so within the rules of the game. Rules o...

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BSNS 111 - Exam Prep Questions And Correct
Answers. Over 280 Questions And Correct Answers.
With Complete Verified Solution Updated 2024.
Bullseye (Sustainability Model)
1. Economy
2. Society
3. Environment
Friedman Doctrine
Maximise profits, but do so within the rules of the game.
Rules of the game
Refers to rules which are unwritten, e.g. ethics and attitude, and those laws by govt.
Invisible Hand
Adam Smith - everyone acting in their own self interest will positively effect society.
Cadbury Old vs. New
CSR used to be the main focus, then it was only about being profitable.
Social Contract
A set of understandings that combine business and society.
Globalisation
A shift towards a more integrated and interdependent world economy.
Globalisation of Markets
The globalization of markets means that the expansion and access of businesses to all
over the world to reach the needs of the customers internationally.
Globalisation of Production
Sourcing of goods and services from locations around the globe to take advantage of
national differences in the cost and quality of factors of production like land, labor, and
capital.
Emergence of global institutions
Institutions which have a global purpose, e.g. United Nations.
General Agreement on Tariffs and Trade (GATT)
Treaty commitment to lowering barriers to free flow of goods across national borders.
World Trade Organisation (WTO)
Polices and negotiates world trading system.
Ensures nations adhere to the rules in the treaty.
International Monetary Fund
Maintains order in the international monetary system.
World Bank
Set up to promote economic development.
Asian Infrastructure Bank
Support the building of infrastructure in the Asia-Pacific region.
Drivers of globalisation
Declining trade, and increasing investment barriers.
Technological changes.

,Issues of globalisation
Economic power shifts from national govt.
Gap between rich and poor increases.
Govt. has less influence on their countries social contract.
Macro-environment
Components or factors of which the firm has no control over.
PESTEL
Political
Economic
Socio-cultural
Technological
Environmental
Legal.
Porter's five-forces
Rivals
Substitute Products
New Entrants
Customers
Suppliers
Resource
Is a competitive asset that is owned or controlled by a firm.
Capability
Is the ability to perform an activity competently through the use of resources.
Organisational Capability
Intangible, but observable ability to perform an activity proficiently.
Knowledge-based.
Resource Bundle
A closely integrated set of competitive assets.
VRIN
Valuable
Rare
Inimitable
Non-substituable.
Social Complexity
Company culture, interpersonal relationships among managers or R&D teams, trust-
based relations with customers or suppliers.
Casual Ambiguity
Makes it hard to figure out how a complex resource contributes to competitive
advantage.
Dynamic Capability
Is the ongoing ability to modify existing resources and capabilities, or create new ones.
SWOT
Strengths
Weaknesses
Opportunities
Threats

, Value Price Cost (VPC)
Value to customer
Price it is sold for
Cost to deliver
Agency Theory
Shareholders own the business, and the board (managers) act in their interests as
agents.
Pluralistic Society
Prevents concentrated power.
Maximises freedom of expression and action.
Creates a diversified organisation.
Managerial Approach
Managers deal with social and ethical concerns, as well as operating the business.
Stakeholders
Individuals or groups with which business interacts, and who have a vested interest in
the firm.
Labour theory of value
Economic value of a good or service is determined by the total amount of socially
necessary labor required to produce it.
Psychological Egoism
Motivated by self-interest.
Psychological Hedonism
Experience pleasure and avoid pain.
Utilitarian
Produces greatest good for greatest number.
Impact of each alternative on all parties.
Uses simps economic costs and benefits to help make decisions.
Perfect Competition
Many buyers and sellers.
Perfect information.
Identical products.
Minimal barriers to entry/exit.
Government Interventions
Typically occur with market failure.
- Free up markets, and protect markets.
Gini coefficient
Is a measure of the inequality of income.
Consumer buying behaviour
Decision process, and purchasing activities of people who purchase products for
personal or household use (not business).
Problem Recognition
A buyer becomes aware of a difference between a desired state and an actual
condition.
Information Search
A buyer searches their internal memory for information on a product, or will get external
help.

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