bluuebunny/crossref_metadata_2025 huggingface dataset:
Organizational Behaviour and Work
Authors: Wilson Fiona M.
Published: September 2023

Organizational Behaviour and Work starts by presenting critical approaches to management. It looks at views of work from the perspectives of employees and managers. It also looks at the rationality of management. Finally, this part considers sexuality, sex typing, and gender. The second part of the book examines classic organizational behaviour. It considers motivation, leadership, perception, personality, organizational learning, culture, teams, structure, and change. The last part of the book contains chapters on critical approaches. This part considers managerial power and control, organizational misbehaviour, health, emotion, and stress.
Setting the scene
Authors: Wilson Fiona M.
Published: September 2023

This chapter provides a context for understanding work and behaviour in organizations, describing some key facts about trends, topical issues, people, and work. It highlights the context in which managers make decisions that affect people and their work. It describes how managers could make decisions that might change how work is experienced. It also provides scene-setting information for managers according to the kind of organization they are employed. The chapter talks about globalization, which is an area in which management has had a large part to play. It explains why many people work in globalized companies or for companies that source their goods or services globally, including how organizations are affected in the global context.
Employees’ views of work
Authors: Wilson Fiona M.
Published: September 2023

This chapter examines research that discusses what employees, particularly those at the bottom of the hierarchy, feel about work, how they view their jobs, and what work means to people. The chapter talks about esteem and disrespect, status and subordination, opportunity and cost, and commitment and alienation in the workplace. It also highlights the management of people that requires an understanding of how they think about their jobs and how those from different social groups experience work, drawing on the sociology of work, developed to provide a critical understanding of the world of work. The chapter explores how work for those with less satisfying jobs has been described and researched, and what has been learned about what these jobs mean to those who do them. It recounts attempts that have been made to improve the meaning of work by redesigning jobs.
The rationality of management
Authors: Wilson Fiona M.
Published: September 2023

This chapter discusses how a manager’s work appears to have a rationality, as the manager makes choices to achieve specific end results. It defines ‘rationality’ as an intentional, reasoned, and goal-directed behaviour, citing managers that seek to recruit the best employees and then extract the best performance from them. It also describes how managers find the best way in which to manage the human resource through scientific and mechanical means and seek to devise methods that ensure that individuals act in the organization’s interest. It determines what the rationale in today’s job design is and whether rationality within organizations is all about better fitting workers to existing jobs within an organization.
Sexuality, sex typing, and gender
Authors: Wilson Fiona M.
Published: September 2023

This chapter delves into aspects of organization that might not appear to contribute to rationality, but instead offer insights that might be gained by looking at issues such as sexuality. It highlights issues that are normally treated in management and organizational behaviour as though they were external to organizations, such as sexuality, emotions, and feelings. It also explores how issues on sexuality, emotions, and feelings play an important role in the everyday experience of behaviour in organizations. The chapter investigates how sex and sexuality are relevant to an understanding of behaviour in organizations, focusing on how jobs are often seen as being ‘for women’ or ‘for men’, how labour can be sexualized, and how gender affects the expectations and requirements of employees in terms of how they should look, act, and talk. It considers whether romance and sexual harassment need to be managed within a work context.
Motivation
Authors: Wilson Fiona M.
Published: September 2023

This chapter deals with how managers should motivate employees and ascertain whether motivating employees is all about using common sense as a manager, or if there is more to it than that. It examines different theories of motivation, considering why and how they arose, and what attempts have been made to influence motivation or improve the quality of working life for employees. It also talks about the theory underlying motivation on improving the motivation of employees. This improves output and other factors, as managers are interested in motivating and creating sufficient job satisfaction, so work will be done adequately and in fact will be continually improved. The chapter covers both content and process theories of motivation. It points out that content theories describe the individual’s needs, drives, and goals, while process theories focus on the individual’s interactions with the environment and judgements about rewards, costs, and preferences.
Perception
Authors: Wilson Fiona M.
Published: September 2023

This chapter refers to how people in organizations are perceived, arguing that all management starts from perception as people manage what they perceive to be happening. It explores how we can perceive people and how we may have reason to doubt the accuracy of our own perceptual process, including how we are also perceived by others. It also stresses the importance of seeing how class and other factors may influence or determine what people think they perceive. The chapter explains that the study of perception is a study that includes how we make sense of the information that we receive through the sense organs of the body. It points out that perception is not necessarily truthful as it may not coincide with realities, noting that an individual’s perceptions may be influenced by many factors, such as needs, wishes, and expectations.
Personality
Authors: Wilson Fiona M.
Published: September 2023

This chapter describes how personality can be influential for people when considering with whom they want to work, their team or leader preferences, or whom they want to employ or not employ. It looks at the theories, research, and practices that have been influential in organizations and management, providing further understanding on behaviour at work. It also discusses the significance of personality in understanding how people behave, think, and feel as they do, and how it may affect what they choose to do, as well as how they perform at work. The chapter examines the limitations of personality theories, the tests, and their measurement, including some of the weaknesses inherent in the testing and measurement of personality. It clarifies that a theory of personality is a set of concepts for understanding the actions and experiences of individuals.
Culture
Authors: Wilson Fiona M.
Published: September 2023

This chapter looks at what culture means in the context of behaviour in organizations, questioning whether it is possible to assume that everyone means the same thing when talking about culture. It determines whether it makes sense to talk about different cultures in an age of globalization and if it is viable to consider changing culture. It also traces how the concept of organizational culture is defined and discussed, assessing the theory and evidence that have insight into a wide range of aspects of culture within organizations. The chapter highlights culture as a popular explanatory concept frequently used to describe a company, a rationale for people’s behaviour, a guideline for action, a cause for condemnation or praise, or a quality that makes a company ‘what it is’. The chapter examines the concept and definition of organizational culture that led to many debates.
Teams and teamworking
Authors: Wilson Fiona M.
Published: September 2023

This chapter talks about the style of teamwork that has emerged in recent years as one of the most important ways in which work is being reorganized, noting the growing interest in teams as a topic of research. It cites claims that the vast majority of ventures are founded and led by teams rather than by individuals. It also elaborates how organization teams offer empowerment, job enrichment, and a vehicle for delivering better results, suggesting links between teamworking and organizational performance. The chapter looks at what teams and teamworking potentially offer and clarifies why the potential benefits may not always be realized, providing a critique of prescriptive unitarist views of the topic. It cites the generally accepted definition of ‘teamwork’, which typically refers to a group of two or more people who act interdependently toward some common objectives or goals.
Structure
Authors: Wilson Fiona M.
Published: September 2023

This chapter deals with organizational structure. It covers the form of an organization, the framework of the organization, how the purpose and work of the organization is carried out, the hierarchy and division of labour, and the most effective ways of organizing. It also looks at bureaucracy, which represents a continuous drive towards rationalization and efficiency in organizations. The chapter describes bureaucracy as a distinctive form of organization marked by a clear hierarchy of authority, and staffed by full-time, salaried officials functioning under impersonal, uniform written rules and procedures. It stresses that bureaucracy is designed to install rationality and eliminate emotionality, noting that the creation of an efficient organizational structure involves dealing with task and job division, performance, and control.
Managerial power and control
Authors: Wilson Fiona M.
Published: September 2023

This chapter examines the issue of how much power and control managers actually have, and to what extent employees resist managerial power and control. It begins by looking at how power is defined and from where power comes. It also describes the limits of managerial power, and the issues of sharing power and of individual empowerment. The chapter tackles the thorny issues of control, technology, and surveillance, noting that managers can gain greater control through the use of technology and surveillance, but excessive use may invite resistance. It mentions bureaucracy as the dominant form of modern control and illustrates power that is structured into the organization design in such a way that some will have more power than others.
What is a business?
Authors: Gillespie Andrew
Published: September 2023

This chapter examines the different forms of business and considers the role of managers within organizations. It looks at several different legal forms of business which have their own characteristics and features such as sole proprietorship, partnership, or company. A company provides limited liability, which makes it more attractive to investors. Managers are allowed to specialize in running the business as investors finance it. Managers have several roles including informational, interpersonal, and decision-making activities. Managers, like economists, have to understand how best to use limited resources to achieve their objectives.
Mission and objectives
Authors: Gillespie Andrew
Published: September 2023

This chapter aims to explain what a mission is and how it is different from objectives. The role of a mission and objectives is to clarify for everyone what the targets are. A mission defines why an organization exists. On the other hand, objectives are specific targets that have to be achieved in a given time period. The chapter also shows that objectives include growth and revenue maximization. Corporate social responsibility (CSR) and how managers may seek to meet stakeholder needs are also discussed.
Managing demand
Authors: Gillespie Andrew
Published: September 2023

This chapter looks at how managers want to understand the factors that determines the demand for their products and how they can influence it, because this determines their sales and revenue. It delves into how managers will want to anticipate how changes in different factors will affect demand because this affects other plans, such as staffing, production scheduling, and stock levels. Managers will attempt to achieve target levels of demand through their pricing and marketing activities. The elasticity of demand measures how sensitive demand is to changes in variables such as the price, the price of other factors, promotional spending, and income. Managers will want to understand this to help them prepare for changes in sales.
Managing costs
Authors: Gillespie Andrew
Published: September 2023

This chapter considers the different types of costs and how to manage them. It differentiates costs and cash outflow. Managing costs is a key aspect of management because of its impact on profits. Reducing costs within a given quality target will increase profits and potentially allow the business to be more price-competitive. The chapter shows how to reduce cost in a number of ways such as improving labour productivity, managing supplies effectively, being leaner generally, and looking at the scale of production. In addition, it also introduces the concept of contribution to business and the importance of productivity.
Labour market
Authors: Gillespie Andrew
Published: September 2023

This chapter studies the factors that determine the price of labour, and what factors can influence its productivity and value. It begins with the evaluation of the concept of labour and its importance as a factor of production. Then it moves on to discuss the demand for labour and how and when to decide the employment of additional people. The chapter also looks at the supply of labour and the factors affecting it. Employee remunerations and the costs associated with it are addressed. Lastly, topics on trade unions, gender equality, and the government's influences on pay are also discussed.
Different market forms
Authors: Gillespie Andrew
Published: September 2023

This chapter surveys the models of different forms of markets. It begins by looking at the factors for considering understanding a market such as market size, market growth, and market share. It then glosses over the meaning of a competitive market as well as the desirability, dangers and consequences of competition. Market structures: monopoly, oligopoly, and niche markets are also evaluated. Finally, the chapter tackles the possible effects of a monopoly on consumers, the implications of monopolistic competition, and how oligopoly affects the decisions of businesses.
Analysing the macro-economic environment
Authors: Gillespie Andrew
Published: September 2023

This chapter analyses some key features in the macroeconomic environment and how these features may affect a business. The chapter begins with an introduction to the macroeconomic environment. It considers the elements of the macroeconomic environment such as Gross Domestic Product (GDP), unemployment, exchange rates, and inflation and how they can have a profound impact on a business' costs and revenues. The chapter emphasizes how changes in this environment can affect a business' staffing decisions, inventory levels, product development, marketing strategy, and financial planning. Methods to use in mitigating challenges posed in changes in the macroeconomic environment is also extensively discussed.
Global business
Authors: Gillespie Andrew
Published: September 2023

This chapter explores the intricacies of global business. It begins by giving an overview of the global economy and how to enter overseas markets. It also demonstrates how globalization can benefit a business as well as present challenges. Then the chapter moves on to the concept of protectionism and asks why a country's government might implement it. The chapter closes with a discussion on Brexit.
Summary: A Short History of Macroeconomic Policy
Authors: Hayley Simon , Chrystal Alec
Published: September 2023

This chapter examines macroeconomic policies of the past. Fiscal policy is used to solve the problem of prolonged unemployment, where the government must intervene in stabilizing the economy. Other policies such as quantitative easing, and a combination of fiscal and monetary policies have been used successfully to mitigate the impacts of the 2008 financial crisis. The chapter ends with the enumeration of key challenges that macroeconomics must address in the future.
Demand and Supply
Authors: Hayley Simon , Chrystal Alec
Published: September 2023

This chapter analyses the behaviour of consumers and suppliers. The first group is composed of people with money, who demand goods and services. The second group is formed by firms and individuals, who supply products and services in return for money. The chapter looks at what determines the demand for a particular product. The corresponding factors that affect supply is also considered. Finally, the chapter explores what happens when consumers and suppliers come together in a market.
Consumer and Producer Decision-Making
Authors: Hayley Simon , Chrystal Alec
Published: September 2023

This chapter shows that consumer and producer behaviour is surprisingly similar since both make decisions at the margin. The chapter examines consumer behaviour and provides an analysis of the decision-making processes made by firms. It also introduces the concepts of perfect competition and monopoly and shows how firms react to the degree of competition in the industry. Lastly, the chapter identifies some types of behaviour that governments generally aim to prevent.
Market Failures
Authors: Hayley Simon , Chrystal Alec
Published: September 2023

This chapter identifies four types of market failures: natural monopolies abusing their power, consumers lacking the information required to make sensible decisions, decisions which ignore the externalities imposed on other people, and public goods. In each case, the chapter examines the extent to which appropriate government policies can correct market failures. Finally, it introduces game theory through the prisoner–s dilemma, which helps explain why people may behave uncooperatively even if they are aware that they would all be better off if they cooperated.
Labour Markets, Finance, and Behavioural Economics
Authors: Hayley Simon , Chrystal Alec
Published: September 2023

This chapter considers psychological effects that may lead to systematically bad decision-making. The chapter looks at circumstances where the government may wish to intervene to influence individuals to make better decisions. It also examines labour and financial markets, where information and incentive problems are particularly severe. Lastly, it introduces behavioural economics, which uses insights from psychology to explore the ways in which consumer behaviour is often less rational.
Microeconomics Summary
Authors: Hayley Simon , Chrystal Alec
Published: September 2023

This chapter provides a synopsis of the first half of the book, which presented microeconomic insights that can be used for business purposes (such as elasticities, monopoly, and price discrimination), for policy purposes (how to respond to market failures), or simply to give us a better understanding of the behaviour we see in the world around us (the prisoner–s dilemma, behavioural economics). The chapter also gives a brief introduction to the second half: Macroeconomics, where economic problems such as inflation and unemployment are tackled, and policies that can be used to combat them are identified..
Explaining Unemployment
Authors: Hayley Simon , Chrystal Alec
Published: September 2023

This chapter discusses the concept of unemployment. Unemployment by definition occurs when the supply of labour is greater than demand. The chapter exposes how classical economics can be misleading in explaining unemployment. Classical economics suggests that unemployment is only temporary and will disappear as wages fall. To counteract this view, John Maynard Keynes, the father of Keynesian economics, suggests that the main force driving the aggregate labour market is the feedback from consumer spending onto firms’ demand for labour. The Keynesian model explains persistent unemployment. Every expenditure on final goods and services ultimately becomes someone–s income. This explains how the economy can get stuck in a vicious circle of low employment and low expenditure. The chapter also shows that fiscal and monetary policies can be used to try to boost the economy out of such a recession.
Inflation
Authors: Hayley Simon , Chrystal Alec
Published: September 2023

This chapter examines inflation. First, it considers the different possible causes of inflation. Then, it illustrates that controlling money supply to curb inflation can create more problems than solutions. The chapter also presents how to derive aggregate supply and aggregate demand curves, which help explain how the economy reacts to shocks such as jumps in oil prices or the financial crisis of 2008. Finally, it explores whether increased demand can likely lead to higher inflation rather than lower unemployment, and the many different policies governments have used—often with little success—to try to reduce inflation.
International Economics
Authors: Hayley Simon , Chrystal Alec
Published: September 2023

This chapter presents the importance of global trade. It begins by illustrating the benefits of international trade, particularly in allowing for specialization, where one country produces some things better than others. It then investigates the intricacies of exchange rates, which represent the amount of one currency that must be paid in order to buy a given amount of another. In addition, the chapter discusses the complications international trade brings such as exchange rate movements being a source of economic volatility; indirect effects in a country–s economy due to a reduction of demand in another country; and the need to fund current account deficits leading to increased amounts being borrowed/lent between countries.
Growth and Welfare
Authors: Hayley Simon , Chrystal Alec
Published: September 2023

This chapter deals with topics concerning growth and welfare. Itconsiders the effect technology has in the long term on growth in GDP per person, and how it has so far changed material living standards. Then, it presents an analysis of the reasons why some countries fail to grow economically and remain impoverished. The chapter also notes that, even if we are still facing the challenge of neglecting and overusing shared resources, there has been a dramatic improvement in agricultural yields, allowing population growth without the global starvation that has been forecast. Finally, it discusses the factors which make us happy as individuals, and policies which might contribute to a happy society.
Conclusion
Authors: Hayley Simon , Chrystal Alec
Published: September 2023

This chapter ties up the concepts and ideas presented in the book. It starts by examining the common misconceptions in economics. Then, it compares economics with other sciences. Lastly, it emphasizes how economics can help identify the underlying sources of political disagreements and encourage more evidence-based policies.
How corporate social responsibility is managed
Authors: Blowfield Michael , Murray Alan
Published: September 2023

This chapter considers the way in which corporate social responsibility (CSR) is being managed within companies, and whether or not businesses need to adopt CSR. It begins with a discussion of the different goals that companies are trying to achieve. Then it identifies the types and levels of CSR that companies exhibit. The shared lessons and common elements of CSR management are evaluated. The chapter also examines how CSR is managed inside companies. Finally, it presents evidence of a business case for CSR.
Corporate social responsibility reporting
Authors: Blowfield Michael , Murray Alan
Published: September 2023

This chapter explores the development of corporate social responsibility (CSR) reporting through an examination of social reporting practice dating back to the 1980s and before. It examines some of the enduring issues that have created difficulties for companies who take the decision to make such reports. The chapter also tracks down the emergence and development of CSR (social) reporting. It delves into the voluntary nature of the reports and the issues that surround this feature. The theories which might help explain the practice of CSR and CSR reporting are examined. It also investigates surveys of CSR reporting and discusses their findings. Lastly, the chapter discusses the new forms of reporting in the coming decade.
Socially responsible investment
Authors: Blowfield Michael , Murray Alan
Published: September 2023

This chapter examines socially responsible investment (SRI). It outlines why the need for SRI exists, the origins and development of SRI and recent developments such as impact investing and blended value. It addresses the impact that these investment strategies can have. It considers the crisis of mainstream investment. The chapter presents the evolution of SRI and describes the main approaches used in SRI decision-making. The performance of SRI funds is analysed, as well as an overview of the international market for SRI and its development in different regional contexts. Finally, it looks at the emerging trends in SRI.
The impact of corporate social responsibility
Authors: Blowfield Michael , Murray Alan
Published: September 2023

This chapter presents the impact that the practice of corporate social responsibility (CSR) has had. It considers the importance of understanding that impact. It looks at the ways we learn about impact and the ways it is assessed. Then, the chapter establishes a framework for understanding the different dimensions to that impact. An overview of the impact of CSR to date is provided. Finally, the chapter discusses the challenges of assessing the impact.
Criticisms of corporate social responsibility
Authors: Blowfield Michael , Murray Alan
Published: September 2023

This chapter tackles the most fundamental criticisms of corporate social responsibility (CSR). It considers why some see CSR as being anti-business or anti-free markets. It studies how some regard CSR as being too pro-business. Why CSR has been criticized for failing to deal with major areas of the interaction of business with society is evaluated. Lastly, it looks at why some feel that CSR needs to become more rigorous and tough in its approach.
Cultural Meaning Systems and Brands
Authors: Rosenbaum-Elliott Richard , Percy Larry , Pervan Simon
Published: September 2023

This chapter studies how brands can be used as signaling systems to create and send meanings of social differentiation and social integration. It begins by presenting the basic analytical tools of semiotics. Then it discusses how products and consumption practices can be used in order to differentiate between social groups within a culture. The chapter also delves into neo-tribes and sub-cultures, which may use the consumption of symbolic brands to develop and communicate their identity. How sub-cultures may adopt and then hijack a famous brand image for their own purposes is also explored. Finally, the chapter introduces Aikido brands, which use the fame and image of a brand against itself.
Brand Innovation and Digital Media
Authors: Rosenbaum-Elliott Richard , Percy Larry , Pervan Simon
Published: September 2023

This chapter focuses on brand innovation and digital media. It discusses the relationship between brands and innovation. First, it explores how the use of digital, social media, and mobile marketing is influencing strategic brand management. It then highlights the importance of branding innovations before exploring how individual, personal, and sociocultural factors impact on the adoption of new offerings. Finally, it delves into the strategic brand management implications for a particularly dynamic innovation environment, the high-tech market.
Brand Portfolio Management
Authors: Rosenbaum-Elliott Richard , Percy Larry , Pervan Simon
Published: September 2023

This chapter looks into the broad framework of product and brand portfolio management. It addresses the fundamental questions that must be asked when considering a change in branding strategy. It explores brand stretching and how an evaluation of both category and brand development can help suggest how a manager makes brand stretching decisions. The chapter also introduces the concept of brand retrenching. What is involved in brand extensions and the different ways of dealing with a brand extension strategy is discussed. Various advantages and disadvantages associated with brand stretching and retrenching are presented. Finally, the chapter scrutinizes branding strategy in light of postmodern thinking and the emergence of metamodernism, and the role of nostalgia in retro-marketing.
The International Business Environment
Authors: Hamilton Leslie , Webster Philip
Published: September 2023

The International Business Environment integrates global examples and a wide range of case studies to explore the challenges that organizations face globally. The first of its two parts is about the global context and looks at globalization, the global economy, and global industries. It also examines the global business environment, corporate social responsibility, and country attractiveness. The second part, Global Issues, considers the social-cultural framework before considering the technological framework. It then moves on to the political and legal environments. The financial framework is also given consideration. Finally, the ecological environment is examined.
Analysing Global Industries
Authors: Hamilton Leslie , Webster Philip
Published: September 2023

This chapter discusses the concepts and tools used to analyse global industry. It acknowledges that a specified set of products and geographical boundaries are needed to achieve a satisfactory market. It explains how a more highly concentrated market is correlated to the concentrated power in the hands of a few firms to manipulate prices, the quantity and quality of goods and services, and the terms and conditions of the sale. The chapter also looks at the Porter Five Forces model as a means to analyse industries. It highlights that firms sometimes make strenuous efforts to avoid price competition through the establishment of cartels and systems of price leadership. Moreover, the chapter cites the significance of product differentiation as a major element of competitive strategy and entry barriers in other industries. It adds how complementary products are included as the sixth force of the Porter model.
The Global Business Environment
Authors: Hamilton Leslie , Webster Philip
Published: September 2023

This chapter explores the global external business environment. It notes that the factors in this environment are highly interdependent but can be analysed using the PESTLE model. The elements of the PESTLE model are political, economic and financial, socio-cultural, technological, legal, and ecological. The model regards the business environment as increasingly complex, dynamic, uncertain, and hostile. The chapter notes that firms need to scan the environment in order to identify opportunities for new markets, cost reductions, and sources of supply. Moreover, the chapter shows how firms need to avoid threats posed by competitors, economic and financial volatility, political instability, new technology, and natural disasters. The chapter explains how organizations assess the impact of external issues by looking into their effect on the industry structure and the organization’s stakeholders.
Assessing Country Attractiveness
Authors: Hamilton Leslie , Webster Philip
Published: September 2023

This chapter focuses on the process of assessing the attractiveness of countries. It starts with an explanation of how firms tend to follow the process of internationalization through exporting and the establishment of overseas subsidiaries. The chapter lists the reasons for foreign indirect investment (FDI) such as market access, lower production cost, and access to resources. It recognizes China as the leader in scouring raw materials in the world. The chapter explains how firms screen other countries for export and import via their attractiveness of new markets and production locations. It mentions numerous commercial organizations specializing in country and marketing analysis.
The Socio-cultural Framework
Authors: Hamilton Leslie , Webster Philip
Published: September 2023

This chapter looks at the impact of the social and cultural environment on businesses. It lists the five dimensions of culture that Geert Hofstede identified: individualism, uncertainty avoidance, masculinity, power distance, and long-term or short-term perspectives. The chapter explains that centralized corporate control is more feasible in societies with large power distance cultures while decentralization is a better fit for small power distance cultures. It explores cultural and social elements that could impact business such as religion, language, time, demography, and youth employment. The chapter discusses the liberal social model and social democratic model using Asia and Latin America as references.
The Political Environment
Authors: Hamilton Leslie , Webster Philip
Published: September 2023

This chapter explores the impact of politics on businesses. First, it looks at the political environment and explains various political systems—including liberal democratic, authoritarian, absolutist, communist, theocratic, unitary, and federal systems—in relation to business. The chapter considers the legislative, executive, and judicial branches of the state and how the state could enable an environment for business. It lists the functions of the state and their importance for business, such as negotiator, regulator, deregulator, arbitrator, and financial guarantor. The chapter also examines the size of the state relative to the economy in line with spending, taxation, borrowing, and public expenditure. It notes the political power of business in terms of pressure, lobbying, and influence.
The Financial Framework
Authors: Hamilton Leslie , Webster Philip
Published: September 2023

This chapter looks at the impact of the financial environment on businesses. It highlights that the financial environment plays a significant role through the provision of money and credit; the operation of system payment; and monetary phenomena like inflation, interest rates, or exchange rates. The chapter references financial markets and large institutions in London, New York, and Tokyo to emphasize their importance in the effective functioning of businesses and economies. It acknowledges the difficulties of accessing finance for international businesses. The chapter considers the businesses industry’s size, diversification, and internationalization, which continue to pose great challenges to regulatory authorities. The chapter notes the argument that the improvements in regulation seem inadequate. It also states that the international finance system’s stability should not be taken for granted.
The production possibility frontier (PPF)
Authors: Gillespie Andrew
Published: September 2023

This chapter examines the production possibility frontier (PPF), which shows the maximum output that can be produced in an economy at any given moment, given the resources and technology available. It looks at the factors that determine how much an economy can produce and the implications of different output decisions. It then considers the different economic systems and how they solve the questions of what to produce, how to produce, and for whom to produce. In addition, it explains the concept of productive efficiency and demonstrates economic growth using a PPF. Finally, it shows how trade allows an economy to consume outside of its PPF.
Demand
Authors: Gillespie Andrew
Published: September 2023

This chapter analyses demand conditions. It examines supply and brings demand and supply together to analyse how markets work. The chapter introduces the concept of effective demand and explains what is shown by a demand curve. Then, it demonstrates the difference between a change in the quantity demanded and a change in demand on a demand curve. It goes on to explain the possible causes of a shift in a demand curve. It concludes with the introduction of marginal and total utility and explains the law of diminishing marginal utility.
Behavioural economics
Authors: Gillespie Andrew
Published: September 2023

This chapter discusses behavioural economics, which is the study of the various factors that influence economic decision making. It examines the assumptions of the rational consumer and producer. The chapter starts by first defining behavioural economics. It then explains why an understanding of behavioural economics is beneficial to managers and government decision makers. Insights into consumer behaviour provided by behavioural economics are also discussed.
Supply
Authors: Gillespie Andrew
Published: September 2023

This chapter examines the factors that influence the supply of a product. That is, what suppliers are willing and able to produce at different prices. The supply curve tells us about the sellers. Supply depends on factors such as the price, costs, the number of producers, and the resources available. The supply curve is usually upward-sloping, this assumes that to produce more, the extra costs will increase, which means that a higher price is needed by producers to be able to produce. The price elasticity of supply measures how sensitive the quantity supplied is to changes in price.
Market equilibrium
Authors: Gillespie Andrew
Published: September 2023

This chapter investigates how the price mechanism brings about equilibrium and the effects of changes in supply and demand on the market price and quantity. This enables the evaluation of how the free market solves the basic economic problems. A market occurs when buyers and sellers interact to exchange goods and services. Equilibrium occurs in a market when, at the given price, the quantity supplied equals the quantity demanded and there is no incentive for this position to change. A change in supply and demand conditions will lead to a new equilibrium price and output. The effect on the equilibrium price relative to the equilibrium quantity of a change in supply or demand depends on how much supply and demand has changed and the price elasticity of supply and demand.
The free market system
Authors: Gillespie Andrew
Published: September 2023

This chapter explores how the free-market system may maximize social welfare. It then considers the failures and imperfections of the market system and why governments may need to intervene. Under perfect market conditions the free market can provide an optimal allocation of resources. The price mechanism brings about equilibrium in the market and maximizes community surplus. However, there are various market failures and imperfections that move the free market away from its optimal position. These failures include public goods, merit goods, externalities, and monopolies.
Revenues, costs, and profits
Authors: Gillespie Andrew
Published: September 2023

This chapter examines the determinants of a firm's revenue and its costs. It also analyses the price and output decisions that will maximize profits. The chapter considers how low the price level must fall before firms will shut down in the short run and in the long run. An understanding of all these issues can predict how firms will behave in a particular market situation. The chapter demonstrates that in the short run firms will produce provided revenue can at least cover the variable costs (because fixed costs have to be paid anyway even if the firm shuts down). In the long run, firms will produce provided revenue at least covers costs, i.e. it makes at least normal profits.
Monopoly
Authors: Gillespie Andrew
Published: September 2023

This chapter considers the nature of a monopoly, and examines the price, output, and efficiency outcomes in this type of market. It notes how governments are often concerned about the effects of monopoly power; then, it outlines the arguments for and against this power. A monopoly is a single seller in a market. It sets the price in a market. It is assumed a monopolist wants profit to be maximized. Given the same demand and cost conditions, a monopolist will charge a higher price and produce a lower output than a perfectly competitive industry. However, it is possible that a monopolist's costs will be higher than a perfectly competitive industry due to inefficiency and lack of incentive, or lower due to internal economies of scale. Governments typically monitor monopoly behaviour to ensure that they do not exploit consumers.
Monopolistic competition and non-price competition
Authors: Gillespie Andrew
Published: September 2023

This chapter investigates the features of monopolistic competition, and the implications of this market structure for customers and firms. It describes the short-run price and output decisions of a monopolistically competitive firm and the efficiency of monopolistic competition using diagrams. Then, it examines the non-price competition which are experienced in many markets. The chapter introduces Porter's five forces analysis and shows how firms try to influence these forces. Finally, the meaning and significance of contestable markets are tackled.
The labour market
Authors: Gillespie Andrew
Published: September 2023

The chapter studies the determinants of supply and demand for labour and examines how changes in wages bring about equilibrium in the market. It explains that labour is a derived demand and that certain factors affect the demand for labour and supply of labour. In addition, it demonstrates how wages are determined in the labour market and why wages vary between markets. Market forces are not always allowed to work in labour markets. There might be intervention in the form of minimum wages and trade union power. Finally, the role of a trade union and factors influencing the powers of trade unions are considered.
Introduction to macroeconomics
Authors: Gillespie Andrew
Published: September 2023

This chapter introduces some of the key issues and concepts in macroeconomics. It then analyses how the government might try to control the economy. It also identifies government objectives such as economic growth, stable prices, and low levels of unemployment. Then, it introduces government policies, which usually include monetary and fiscal policies. However, developing policies to influence something as complex and ever changing as the economy is by no means easy. This is especially true when achieving some of the objectives may conflict with achieving some of the others.
National income and the standard of living
Authors: Gillespie Andrew
Published: September 2023

This chapter discusses how national income is actually measured and whether it can be used as a good indicator of a country's standard of living. It considers whether or not the government's objective to increase the income per person in their economies is useful. The standard of living in an economy is often measured by the real Gross Domestic Product (GDP) per capita. The Lorenz curve shows the distribution of income within an economy, while the Gini coefficient measures how equally income is distributed in an economy. The more unequal the distribution of income, the larger the Gini coefficient. The standard of living will depend on many factors apart from income, such as the quality of goods and environmental issues.
Demand side and supply side policies
Authors: Gillespie Andrew
Published: September 2023

This chapter reviews the interrelationship of aggregate supply and aggregate demand in the economy. Using supply and demand analysis, it examines the impact of changes in the aggregate demand and the aggregate supply, and it considers the consequences of this in terms of the equilibrium price and output, and employment. An increase in the aggregate demand will usually lead to an increase in price and output. The relative impact on price compared to output depends on the price elasticity of the aggregate supply. The government will try to influence both aggregate demand and aggregate supply with various policies such as fiscal, monetary, and exchange rate policies.
Influences on aggregate demand: Investment
Authors: Gillespie Andrew
Published: September 2023

This chapter tackles the influences of the level of investment in an economy, and the consequences of it changing the equilibrium price and output, and employment. Investment is an important element of aggregate demand. Investment spending is an injection into the economy. It is a particularly volatile element of aggregate demand, as well as an influence on aggregate supply. Understanding it is vital if a government is to be able to influence the level of aggregate demand effectively and influence the growth path of the economy.
Influences on aggregate demand: International trade, globalization, and exchange rates
Authors: Gillespie Andrew
Published: September 2023

This chapter explores the reasons why international trade occurs and the benefits that can be gained from it. It also considers what factors determine the exchange rate and the significance of exchange rate changes. It introduces the theory of international trade and absolute and comparative advantage. The chapter expounds on what an exchange rate is and how it is determined by the use of supply and demand diagrams. It also differentiates a floating and fixed exchange rate. Lastly, it reviews the impact of changes in the exchange rate on exports and imports.
Government objectives: Economic growth and the economic cycle
Authors: Gillespie Andrew
Published: September 2023

This chapter looks into the causes of economic growth, including productivity, research and development, and entrepreneurship. It studies patterns of economic growth over time, which is known as the economic cycle. Economic growth can be measured by an increase in the real output or income of an economy over time. The chapter distinguishes between actual economic growth, the rate at which the economy is actually growing over a given period, and potential growth, which indicates how much the economy could grow if all of its resources are to be fully employed. Economic growth is a common macro-objective of governments. It can occur when the economy becomes more efficient (and moves on to the production possibility frontier) and when with more or better quality resources the production possibility shifts outwards.
Unemployment
Authors: Gillespie Andrew
Published: September 2023

This chapter examines the causes and problems of unemployment and considers how it can be reduced. One of the major economic objectives of governments is the reduction of unemployment. There are several causes of unemployment which can be cyclical (or demand-deficient) unemployment, structural unemployment, and seasonal unemployment. The equilibrium, or natural rate of unemployment, measures those unemployed when the labour market is in equilibrium. Unemployment represents a waste of resources and means the economy is not producing as much as it could. Governments will use different policies to reduce unemployment depending on the cause.
Money
Authors: Gillespie Andrew
Published: September 2023

This chapter discusses the meaning of money and the functions that it performs. It considers the market for money and looks at the consequences of an increase in the amount of money in the economy. Money has a number of functions such as to be a unit of account, a store of value and a medium of exchange. The Bank of England is the UK's central bank and plays a critical role in determining how much money there is in the economy. Monetary policy uses the money supply and interest rates to control the economy.