Cicero
- difference versus Plato interpretation of Gyges
Plato: Any man would turn bad.
Cicero: An educated man would not
Cicero
- obligations of friendship
Friendship still applies in business and is even necessary
Cicero- fairness doctrines
we don't want to see people fail we want to see them succeed. we want to see people succeed at no one else's expense.
Cicero- expediency principle of Aristides
what is morally right isn't always expedient and what is expedient isn't always morally right
Cicero- conclusions on grain affair
Cicero believes you should come in and sell your grain at any price, but if anyone asks if more grain is coming you must be honest about it.
Cicero- conclusions on house selling affair
if there is something wrong with the house that isn't obvious you must tell the buyer.
Cicero caveat vendor vs. caveat emptor
Seller Beware v. Buyer Beware
Aquinus Product
selling a product is not a sin. However, it is a sin to lie about these three things: substance, quantity, and quality.
Aquinus Promotion
do not inform buyers unless it endangers the buyer. However, ought to inform, but the buyer should inform themselves.
Aquinus Place
manufacturer, wholesaler, retailers, consumer
Aquinus Price
only sin in charging not the correct price--the just price. The materials that went into and the cost (the time).
Darwin/Spencer
Uncontrollable External Variables
1) Competitive
2) Economic
3) Social/ Cultural
4) Regulatory
5) Technological
6) Physical
Veblen women as trophies--historical perspective and motives of the men
You see the chief with a big hut and lot of food, horses. Motivates you to want to do the same.
Veblen definition of pecuniary emulation
You want to be like someone you see is successful, so you do what they do.
Veblen motive that lies at the root of ownership
Emulation: You want what others have. You are going to do it even if you go in debt.
Veblen - what happens when people can't buy goods on emulative basis
They will go in debt.
Veblen - how conspicuous consumption began historically
To be like someone as successful as you want to be. Ex. Chief
Veblen - how conspicuous consumption affects social classeso
Division of social classes. Breaks up social classes. Buying things breaks up society.
Veblen - canons of reputability and expenditure
Canon of reputability: you buy something based on its reputation.
Canon of expenditure: how much something costs
Veblen - conspicuous consumption as habit and what it means to standard of living
You are buying so people see what you have.
Pacioli - three things necessary to carry on a business
1) Cash/ Capital
2) Bookkeeping
3) Arrange transactions in systematic way (Debit, Credit)
Pacioli- explain his system and how it works
Everything in God's name. If he did things in God's Name nothing would be wrong.
Pacioli - explain his religious ideas
Catholic Monk
Saikaku- how does he keep his accounts
Frugality, Keep costs down
Saikaku - what is the purpose of accounting
To get rich.
Saikaku - explain the cakes story
Saikaku ordered rice cakes. Assistant purchased the cake. Pay by weight. Saikaku was upset because after the cake cools down, it would cost less. Do whatever to honestly lower costs.
Saikaku - his attitude toward women in accounting
Women make the BEST accountants. Successful in accounting because of their ability to keep track of details. Far superior than men to compartmentalize.
Defoe- what is the purpose of accounting
To protect your family.
"He that does not keep his books exactly..., had better keep no books at all...
Defoe - what is casting up the books
Balancing the books & making available to see
Defoe- what three things make up a merchant's books
1) Inventory-Goods in Shop
2) Capital-Cash
3) Debts (Abroad
Defoe - how do the illiterate keep their books
Making notches on these sticks that he kept in drawers. Also he counted with spoons in 6's.
Defoe - why should merchants keep the books
Moral obligation to understanding accounting.
Defoe - relationship of accounting to faith
KEYWORD--Tradesmen
Christian conscience=Defoe
widow and children
Maimonides - attitude toward religion as it impacts faith
Jews can only lend with interest to gentiles not other Jews.
Maimonides - what is the difference between usury and interest
Usury: using money to make more money
Interest rate: is merely just a fee before services. More Honest.
Maimonides- rules on borrowing and lending
Double Standard
Borrowing
1) a Jewish person should never borrow from another Jewish person
2) only accept money from the common wealth
DO NOT BORROW OR LEND BETWEEN JEWS
Maimonides- rule for joint ventures
Multiple people go into business, all should gain and lose.
Maimonides- rule for capitalization
Equity capital..not loan. Ex/ If parents give money to start business, if you profit money, your parents profit. Until you pay off, parents will equally benefit.
Maimonides - rule for partnerships
Two people in business, pay and give by percentages invested in the business.
Aquinas on Usury--Finance
- attitude toward religion as it impacts faith
Usury isn't a sin; it is just unjust.
Aquinas on Usury--Finance
- conclusions for articles 1,2,4
1) usury is not a sin. A sin of injustice.
2) tips given for requests before a loan is okay. However, if you ask for money after you pay the loan, that is no okay. The person was not asking for an interest rate. Paying a fee is okay.
4) The borrowers are
Franklin- attitude toward finance as it intersects with faith
Protestant
Making a lot of money is okay = Salvation.
The more you have made, the more you have done for society.
Franklin - rules for borrowing and lending
Nothing wrong with interest. Point of borrowing money is to get rich. Do not borrow it for consumer uses (food, clothes). Borrow money to start business, so you can make money with it. Danger in debt. AGREE WITH EMERSON
Franklin - 4 principles for increasing wealth
1) Productive
2) Good Management-People and Money
3) Frugal
4) Charitable
Franklin what is cost shifting and how it figures in Franklin's work
- the notion of charity�how it figures in the Protestant idea about finance
- issue of frugality--the consequences borrowing money�especially if you can't pay it back
or pay it back in t
...
Mill
- attitude toward religion as it impacts finance
Atheist
Mill- justification for profit
Return on Investment (ROI)
If you advance money for purpose of moving it forward, you deserve a return. Bank deserves a return too
MIll - justification for interest
If you abstain from consumption, you should be receiving some sort of return
Mill - three things return must account for
1) Abstinence
2) Risk
3) Exertion
Mill - all things analysts look for to account for variability of profitability
1) Material costs: things that go into something
2) Labor costs: what does it take to pay a person to assemble
Mill - "Wal-Mart" Principle
What Walmart does in order to be successful, is when they buy inventory, they do not spend their own money. They take a loan for 30 to 60 days. Buy inventory on loan, sell it for the lowest possible price but at the highest velocity. Pay back loan day bef
Mill - three final facts which account for profitability differences in companies
1) Barrier to entry
2) Level of education of employees
3) Risk of investment
Carnegie
- how labor has progressed
labor is no longer afraid of managers. They are educated and know what they want.
Carnegie- 1st suggestion for improved capital/labor relations (the one he cannot implement 1n 1889)
Stock sharing system: better the company does, the better the employees do. Sliding Scale
Carnegie - suggestions for better labor/capital relations
Labor deserves a fair return. Treating your employees well
Carnegie - attitude toward unions
Believed that it was the right of workers to be able to enter into trade unions
Carnegie - sliding scale
Making money plus commission. Make no sale, it is taken out of you
Tawney-the problem of efficiency in 1920
Labor is no longer motivated by fear and managers are still using motivation by fear and it isn't working.
Tawney-motivators in the 19th century
) Training
2) Reward
3) Pride
Tawney-why 19th century motivators don't work in the 20th (and now, 21st, century) century
Labor is educated. Not motivated by fear.
Tawney-what is "esprit de corps" and why is it important
A feeling of fellowship and common loyalty. It is an excellent motivator ex. Working with people we like.
promotions mix
A combination, or blend, of marketing communication channels that a business uses to send its messages to consumers (i.e., advertising, sales promotion, personal selling, and publicity).
new product development
1. Generating Ideas
2. Screening Ideas
3. Business Analysis
4. Development
5. Test Marketing
6. Commercialization
market research
1. Situation analysis/Define problem
2. Collect Primary and secondary data
3. Analyze data
4. Problem
5. Prepare report of recommended solutions,
6. Follow up
portfolio analysis
A collection of projects or programs and other work that are grouped together to facilitate effective management of that work to facilitate strategic business objectives
1. Breadth
2. Depth
3. Length
product life cycle
Intro, Growth, Maturity, Decline
Acquisition
Aquiring a Product through the new product development process
Segmentation
Splitting up the market by:
1. Demographic
ethnicity and gender
2. Geographic
3. Psychographic/Lifestyle
AIO�attitudes/activities, interests, opinions
s*
4. Behavior
heavy user, usage, situation
breakeven pricing
Fixed Cost/Selling Price - Average Variable Cost= Break-Even Price
consumer decision making process
1. Problem recognition
2. Information search
3. Evaluation of alternatives purchase
4. Purchase
5. Purchase Behavior