The Economic Environment of Business

by Sloman, John

• ISBN13: 9780273681328
• ISBN10: 027368132X
• Format: Paperback
• Copyright: 2004-12-30
• Publisher: Trans-Atlantic Pubns

Summary

The Economic Environment of Business introduces the essential principles of economics, all from the perspective of business. In addition to covering the traditional principles of economics, the book also has sections which highlight the relationship with other business disciplines, including: globalisation, business strategy, Porter's five forces, the product life cycle, and business ethics. This book is ideal for undergraduate or postgraduate students doing a non-specialist one-semester economics course.

Table of Contents

Preface	xii
Publishers acknowledgements	xvii
Guided tour	xviii
Part A Introduction	1	(28)
Economics and the business environment	3	(26)
Minding The Gap	4	(2)
The business organisation	6	(5)
The external business environment	11	(10)
The biotechnology industry	14	(6)
The changing nature of business	20	(1)
The economist's approach to business	21	(8)
Questions	26	(1)
Part end -- additional case studies and relevant websites	27	(2)
Part B Markets, demand and supply	29	(74)
The workings of competitive markets	31	(28)
Business in a perfectly competitive market	31	(2)
Demand	33	(4)
Supply	37	(4)
Price and output determination	41	(5)
Stock market prices	44	(2)
Elasticity of demand and supply	46	(13)
Shall we put up our price?	51	(3)
Speculation	54	(1)
Questions	55	(4)
Demand and the consumer	59	(20)
Demand and the firm	59	(1)
Understanding consumer behaviour	60	(5)
Problems for unwary insurance companies	64	(1)
Estimating and predicting demand	65	(5)
Stimulating demand	70	(9)
Brands and own-brands	72	(4)
Questions	76	(3)
Supply decisions in a perfectly competitive market	79	(24)
Production and costs: short run	79	(6)
Production and costs: long run	85	(7)
Minimum efficient scale	90	(2)
Revenue	92	(2)
Profit maximisation	94	(9)
E-commerce	98	(2)
Questions	100	(1)
Part end -- additional case studies and relevant websites	101	(2)
Part C The microeconomic environment of business	103	(108)
Pricing and output decisions in imperfectly competitive markets	105	(30)
Monopoly	106	(6)
Windows cleaning	112	(1)
Oligopoly	112	(10)
Supermarket wars	121	(1)
Alternative aims of the firm	122	(4)
Setting price	126	(9)
Questions	131	(4)
Business growth and strategy	135	(28)
Strategic analysis	135	(5)
Strategic choice	140	(5)
Sashimi Theory	142	(3)
Growth strategy	145	(7)
Financing growth and investment	152	(4)
Staying small	156	(7)
The Dyson Dual Cyclone vacuum cleaner	158	(2)
Questions	160	(3)
Labour and employment	163	(22)
The UK labour market	163	(1)
Market-determined wage rates and employment	164	(7)
`Telecommuters'	167	(4)
Power in the labour market	171	(5)
Minimum wages	176	(2)
The flexible firm and the market for labour	178	(7)
The Internet and labour mobility	180	(2)
Questions	182	(3)
Government, the firm and the market	185	(26)
Markets and the role of government	185	(8)
The Body Shop	191	(2)
Environmental policy	193	(4)
Competition policy and business behaviour	197	(7)
The problem of urban traffic congestion	198	(5)
What price for peace of mind?	203	(1)
The regulation of business	204	(7)
Questions	206	(2)
Part end -- additional case studies and relevant websites	208	(3)
Part D The macroeconomic environment of business	211	(60)
The economy and business activity	213	(34)
Business activity and the circular flow of income	213	(4)
The determination of business activity	217	(3)
Doing the sums	220	(1)
The business cycle	220	(6)
Business expectations and their effect on investment	224	(2)
Money, interest rates and business activity	226	(6)
Unemployment	232	(5)
Inflation	237	(10)
Deflation danger	242	(1)
Questions	243	(4)
Government macroeconomic policy	247	(24)
Fiscal policy	248	(7)
Fiscal policy and business	250	(2)
Following the golden rule	252	(3)
Monetary policy	255	(6)
Inflation targets	260	(1)
Supply-side policy	261	(10)
Questions	266	(1)
Part end -- additional case studies and relevant websites	267	(4)
Part E The global business environment	271
The global context of business	273	(30)
International trade	273	(10)
Strategic trade theory	279	(3)
EU trade and the Single Market	282	(1)
International finance	283	(13)
Exchange rate fluctuations and the plight of SMEs	292	(2)
The euro/dollar seesaw	294	(2)
International economic policy: managing the global economy	296	(7)
Questions	299	(4)
Multinational corporations and business strategy in a global economy	303
Multinational corporations	303	(4)
Business strategy in a global economy	307	(8)
The transnationality index	308	(6)
Grocers go global	314	(1)
Problems facing multinationals	315	(3)
Investing in China	316	(2)
Multinationals and the host state	318	(3)
Postscript: is globalisation a `good thing'?	321
Questions	322	(1)
Part end -- additional case studies and relevant websites	323
Web appendix	1	(1)
Key ideas	1	(1)
Glossary	1	(1)
Index	1