Economics for business

Preface
Contents
Detailed contents
How to use this book
Online Resources
Acknowledgements
Business insight features
1 What is a business?
	Business case
	Managing a business
	What are your employees busy doing?
	Legal forms of business
	Managing the transformation process
	What do managers do?
	The economy and the transformation process
	The roles of a manager
	Why managers and economists have a lot in common
	Summary
	Key learning points
	Business case extension questions
	Quick questions
2 Mission and objectives
	Business case
	Mission
	Objectives
	Profit as an objective
	Other objectives
	Will managers really maximize profits?
	Ownership and objectives
	Corporate social responsibility
	Summary
	Key learning points
	Business case extension questions
	Quick questions
3 Managing demand
	Business case
	What is demand?
	A demand curve
	The price elasticity of demand and pricing
	What determines the price elasticity of demand?
	Shifts in demand
	The marketing mix
	Summary
	Key learning points
	Business case extension questions
	Quick questions
4 Managing costs
	Business case
	Introduction
	Fixed and variable costs
	Labour productivity
	Total, marginal, and average costs
	Controlling costs in a business
	Economies of scale
	Summary
	Key learning points
	Business case extension questions
	Quick questions
5 How markets work
	Business case
	Introduction
	Market forces
	A demand curve
	A supply curve
	Changes in market conditions
	How much will the equilibrium price and quantity change with a change in market conditions?
	Does the price mechanism work?
	Secondary markets
	Summary
	Key learning points
	Business case extension questions
	Quick questions
6 Labour market
	Business case
	Labour
	How much should you pay your employees?
	The demand for labour
	Employment decisions
	Productivity and pay
	How to increase labour productivity
	The supply of labour
	The reservation wage
	Market forces
	Changes in market conditions
	Monopoly and monopsony
	Why do labour costs matter?
	Employment and costs
	Why does productivity matter?
	Trade unions
	Gender equality
	The earnings of senior staff
	Minimum wage
	The effect of a minimum wage
	Government influences on pay
	Summary
	Key learning points
	Business case extension questions
	Quick questions
7 Do markets work?
	Business case
	Competitive markets
	Can markets be trusted?
	Buffer stocks
	Externalities
	The effect of externalities
	Public goods
	Asymmetric information
	Too big to fail
	What actions can governments take to intervene in markets?
	How might government intervention affect your business?
	Should the government intervene in markets?
	Summary
	Key learning points
	Business case extension questions
	Quick questions
8 Different market forms
	Business case
	Understanding markets
	Competitive markets
	Who is your competition?
	Business case
	Perfect competition
	Short-run and long-run equilibrium in perfectly competitive markets
	How to prevent entry into a market
	Monopoly
	Oligopoly
	Monopolistic competition
	Contestable markets
	Niche markets
	Pricing strategies
	Summary
	Key learning points
	Business case extension questions
	Quick questions
9 Strategic planning andthe economy
	Business case
	What is meant by strategy?
	Features of strategic decisions
	Forms of strategy
	Strategies and risk
	How you might choose a strategy
	Strategic planning
	The economy and the macro-economic environment
	SWOT analysis
	Strategic positioning
	Strategic decision makers
	Why does the strategy of a business matter?
	Strategic planning and economic forecasting
	Emergent strategy vs. planned
	Summary
	Key learning points
	Business case extension questions
	Quick questions
10 Strategies for growth
	Business case
	How do we measure the growth of a business?
	Why do businesses want to grow?
	Forms of business growth
	Franchising
	Taking over another business
	External vs. internal growth
	Growth and profit
	Stages of growth
	Summary
	Key learning points
	Business case extension questions
	Quick questions
11 Analysing the macro-economic environment
	Business case
	Introduction to the macro-economic environment
	Gross domestic product (GDP)
	Inflation
	Interest rates
	Unemployment
	Exchange rate
	Summary
	Key learning points
	Business case extension questions
	Quick questions
12 Government macro-economic policy and business
	Business case
	Government objectives and policies
	Government fiscal policy
	The government’s budget position
	The multiplier
	Taxation
	Paying benefits
	Deficit and debt
	Government policy and business
	What can businesses do to influence government policy?
	What is meant by monetary policy?
	What determines the actions the Bank of England will take?
	Quantitative easing
	Exchange rate policy
	Supply side policies
	What determines how the government intervenes?
	Summary
	Key learning points
	Business case extension questions
	Quick questions
13 Global business
	Business case
	Global business
	Entering overseas markets
	Managing global supply chains
	The benefits of trade to your business
	UK trade
	The exchange rate and your business
	What is protectionism?
	Why do some countries restrict trade?
	What is the impact on a business facing protectionist measures?
	Why do countries join trade agreements?
	Brexit
	Summary
	Key learning points
	Business case extension questions
	Quick questions
Answers to questions
Data sources
Index