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11 Cards in this Set
- Front
- Back
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Vertical integration
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The extension of a firms activities into adjacent stages of production. That is those providing the firms inputs or those adding value to the firms outputs.
Vertical integration may achieve lower costs, protect product technology and ease the scheduling of adjacent processes. |
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Concentrated retail system
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Few retailers supply to most of the market (Australia)
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Fragmented retail system
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One in which many retailers supply a market, no one retailer holds a major share of the market
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Channel Length
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The number of intermediaries between the producer (or manufacturer) and the consumer.
If producer sells directly to the consumer the channel length is very short. If the producer sells through an import agent, wholesaler etc the channel is longer. |
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HDI
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Human Development Index
Attempt by the United Nations to measure the impact of a number of factors on peoples lives in countries around the world. |
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The Friedman Doctrine
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Milton Friedmans proposition is that the only social responsibility of firms is to increase profits, so long as the country stays within the rules of the law.
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Cultural relativism
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The belief that ethics are nothing more than a reflection of a culture and that firms should simply adopt the ethics of cultures in which they operate
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Righteous Moralism
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The belief that a home countries standards of ethics are the appropriate ones for companies to follow in foreign counties.
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Naive Immoralism
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The belief that if a manager or multi national sees that firms from other nations are not following ethical norms in a host nation, that firm should not follow them either.
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Centralized organizational structure
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Businesses that have a centralised structure keep decision-making firmly at the top of the hierarchy (amongst the most senior management). E.g. fast food companies
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De-centralized organizational structure
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In a decentralised structure, decision-making is spread out to include more junior managers in the hierarchy, as well as individual business units or trading locations.
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