Network and Positive Feedback Introduction The industrial economy was populated by oligopoly industries in which a few large firms dominate markets. Examples of oligopolies include: Automobiles industry Steel industry Aluminum industry Various chemical markets The difference is that the old industrial economy was driven by economics of scale while the new […]
Chapter 6: Market Strategies: Switching costs and Lock-in
Recognizing Lock-In When the costs of switching from one brand of technology to another are substantial, users face lock-in. Situation when user is compelled to stick to current brand or product Switching costs and lock-in are ubiquitous in information systems, and managing these costs is very tricky for both buyers and sellers. Examples of lock-in […]
Chapter 4: Strategies for Pricing Information
Pricing Information Goods Encyclopedia Britannica sold 32 volume of hard cover book for $1,600 but Microsoft sold the similar information goods in CD at $49.95. then Britannica started providing online subscription at $ 2000 per year large libraries took the subscription but market share started eroding. In 1990, Britannica, started selling CD to home market […]
Chapter 10: Contemporary Issues
Very Short Question Answer of Contemporary Issues 1.Define the meaning of privatization. Privatization means the transfer of government assets and activities to the private sector. In other words, it is the involvement of private sector in the management of the public enterprise, or to sell, or lease it, or transfer government ownership to private ownership. […]
Chapter 9: Bond Valuation
Very Short Question Answer 1. What do you mean by yield to call? An yield to call is the annualized rate of return that bondholders will realize if the bond is called at the stated date before the maturity. 2. What does bond’s duration indicate? Bond’s duration indicates the weighted average number of years that […]
MGT 220: Entrepreneurship and Enterprise Development
Entrepreneurship and Enterprise Development BBS 4th Year Notes Also Read: Fundamental of Investment[BBS 4th Year]-Notes and Solution
Chapter 12: Strategic Options
Very Short Questions Answer 1. What do you mean by corporate strategy? Corporate strategy is the master strategy for an organization. It follows the vision and mission of an organization. A corporate strategy involves selecting and managing a group of different businesses which are competing in different product markets to gain competitive advantage. 2. Enlist […]
Unit 1: Managerial Economics Basic
INFORMATION REVOLUTION VS. INDUSTRIAL REVOLUTION As e-commerce became all the rage in the late 1990s and as the Internet, World Wide Web, and other information technologies rapidly transformed the economic and social environment, many analysts, journalists, and scholars took the time to reflect upon the current transformations and breakthroughs and situate them in a broad, […]
Chapter 7: Cost of Capital
Short Question Answer 1. What is the significance of marginal cost of capital in decision making? Explain. Marginal cost of capital is the cost of raising an additional rupee of capital. In other words, it is the cost incurred for raising incremental funds. Thus, the weighted average cost of incremental capital is known as the […]