l9.
LOGISTICS
1. Pull and Push strategies
Pull
FOCUS - creating consumer demand
and pulling customer towards
the product or brand
CUSTOMER - generate consumer interest
INFLUENCE through marketing, ads,…
DISTRIBUTI - fulfill demand created by
ON customer
CHANNEL
EXAMPLE
Nike (Apple)
- pull mar strategy to create
strong consumer demand,
invest heavily for ads and mar
campaigns, build strong brand
image
- introduce new features,
designs => attract consumers
- various mar channels: tele,
digital platforms to reach wide
audience and engage with
consumers
- inspire brand loyalty, create
desire for its products
Push
- punishing product through
distribution channel
- influence behavior indirectly by
making product available
- make products visible and
available
P&G
- work closely with distributor
and retailer to push its product
into the market, ensure prominent
product placement in stores
- offering discounts, bulk
purchase deals
- attractive displays, product
demonstrations, promotional
materials to grab consumer
attention
- continuous product innovation,
provide incentives for retailer and
to stock
2. Supply chain workflow
- generate new request
- despatch raw materials and components
- place new order
- collect consignment
- awaiting orders
- finished goods
- implement manufacturing process

10. QUALITY
quality is not free but a bountiful source of profit
safety doesn’t sell
- attitude and corporate culture
- search for continuously improving quality
- accommodate the needs of buyers
1. TQM (Total Quality Management)
 - developed by W.Edwards Deming (American), 1st taken up by Japanese who
adopted it to revive post-war industry
- dedicate to provide customers with products and services that satisfy their
needs, have no defects, close to perfect as possible
- do the right things, do them right, the 1st time and every time which should
eliminate waste from its operation
- focus on continuous improvement, customer satisfaction (primary driver of
quality improvement) and the involvement of all employees aims to enhance
the quality

12. MARKETING
1. A product life cycle
- Introduction stage
- Growth Stage
- Maturity Stage
- Decline Stage
2. Role of marketing
- integrate customer into the design of the product
- own the market - not just to make or sell products - defining the whole pie as
yours
- promote the exchange of goods and services to attract more customers
- involves conducting market research to identify customer’s needs, behaviors
and preferences -> develop effective marketing strategies
-> translate them into new or improved products and services
- differentiate a company’s offerings from competitors -> create brand identities,
develop brand message, establish unique brand positioning in the minds of
customers
3. Pricing and distribution strategies

13. ADVERTISING
 - viral marketing: trying to get customer to forward an online marketing message
to other people
- word-of-mouth advertising
- comparative-parity method: spend as much as their competitors
- peer-to-peer (P2P) networks
- ads agencies
- brief: statement of objective

1. Different kinds of sales promotions

- free sample
- price reductions and competitions
- advertising
- discount/ coupons
2. Conditions to make a successful advertising campaign
- clear objectives
- target customer
- appropriate media plan: which media will be used and in which proportion
- consider ads budget and resource allocation
- Unique Selling Proposition: distinctive feature or benefit that sets your
products apart from others

14. BANKING
- commercial bank: individual and small companies
- private bank: wealthy individual
- investment bank: big companies
- hedge funds
- stockbroker
- deposit: money placed in a bank
- capital: the money invest in a business
- merger: when company combines with another one
- takeover bids: when company offers to buy one or acquire another one
 - portfolio: all investment owned by an organization or individual
- returns: profits made on investment
- mortgage-backed securities (MBS)
- collateralized debt obligations (CDO)
- credit crunch: credit crisis
1. Banking products and services
- make loan
- receive deposit
- a debit/ credit card
- investment advice
- a mortgage
- internet banking
- an overdraft: the possibility to borrow money by spending more than you have
in your account
- buying or selling foreign currency for traveling
2. Microfinance
Vocabulary
- microcredit
- low-income households
- microfinance portfolio
- creditworthy
- microfinance institutions
- bottom line
- welfare benefits
- physical assets
- liquid assets
- loan repayment
- checking accounts
- payroll

19. ACCOUNTING AND FINANCIAL STATEMENT

 - financial operating plan
- liabilities
- accrued: describing a liability which has been incurred but not yet invoiced to
the company
- deferred: postponed or delayed
- balance sheet: a statement showing business’s assets, its liabilities and its
capital or shareholder’s equity
- cash flow statement: a statement giving details of money coming into and
leaving the business, divided into day-to-day operations, investing & financing
- income statement: a statement showing difference btw the revenues and
expenses of a period
1. Types of financial statement
- balance sheet
- cash flow statement
- income statement
- statement of shareholder’s equity (optional)

23. THE BUSINESS CYCLE

- equilibrium: a state of balance, for example when supply is the same as demand
- deficit: an amount of money that is smaller than needed
- surplus: an excess: a quantity that is larger than needed
- fiscal policy: government actions concerning taxation and public expenditure
- monetary policy: government or central bank actions concerning the rate of
growth of the money in circulation
- money supply: the total amount of money available in an economy at a
particular time
- Keynesianism: a theory that government monetary and fiscal policy should
stimulate business activity and increase employment in a recession

1. Business cycle: Causes

- Consumer spending (based on expectations):
 + a country’s output, investment, GDP,... depend on millions of decisions
whether to spend, borrow or save
+ when the economy is good and people feel confident about the future,
they tend to spend more and run up debts
+ at certain points, debts need to be pay and spending has to slow down
+ pay more than they anticipated on mortgage or rent -> consume less,
save more -> fall in demand, production and employment
+ investment closely correlates with demand and occurs exclusively
during periods of demand growth
+ demand stops growing -> investment in factories, machines… fall ->
downturn
+ supply exceeds demand -> price fall -> stimulate pp to buy again ->
recovery
- fiscal and monetary policy: influence the business cycle
+ reduction in interest rate and taxation can stimulate economic growth
+ on the contrary: central banks adjust higher interest rate and less public
expenditure can dampen the economic activity
- external factors:
+ natural disasters
+ technological, scientific advances
+ political shocks
-> disrupt economic activities, contribute to fluctuation in business cycle
2. Keynesianism and monetarism

Keynesianism Monetarism (notably Friedman)

recommend governmental intervention government should abandon the attempt

- in inflationary boom: to manage the level of demand, money is
+ increase tax neutral
+ decrease spending - increase money supply -> increase
- in economic downturn price level -> inflation
 + increase public expenditure,
money supply
+ decrease tax, interest rate
=> increase output, investment,
consumption and employment
- need to make sure the constancy and
non-inflationary growth in the money
supply
- fiscal policy only begin to take effect
too late, when an upturn is already
beginning

24. CORPORATE SOCIAL RESPONSIBILITY

- business executive
- avoid pollution/ eliminate discrimination/ provide employment
- conform to rules
- conduct business
- undermine the basis of a free society
- corporate action
- unbusinesslike
- in accordance with
- insofar as: to the degree or extent that
Example: In terms of environmental sustainability, Microsoft has set ambitious goals
to become carbon negative by 2030 and remove all the carbon emissions it has ever
produced by 2050. The company is investing in renewable energy, implementing
energy-efficient technologies, and using its data centers to drive innovation in
sustainable practices. Microsoft also focuses on social impact through initiatives such
as the Microsoft Philanthropies program. Through this program, the company supports
various social causes, including education, digital inclusion, and access to technology.
They have donated billions of dollars in software, services, and financial support to
nonprofits and educational institutions globally. Moreover, Microsoft has taken steps
to ensure ethical business practices throughout its operations. The company has
implemented strong policies against corruption, bribery, and discrimination. They
have established a responsible AI initiative, emphasizing the ethical development and
use of artificial intelligence technologies. Additionally, Microsoft has emphasized
diversity and inclusion within its workforce. They are actively working towards
increasing the representation of women and underrepresented minorities in their
workforce and leadership positions. Through these efforts, Microsoft demonstrates its
commitment to corporate social responsibility by addressing environmental
sustainability, social impact, ethical business practices, and diversity and inclusion.
1. Responsibilities of businesses
- ethical rights:
+ conduct operations business dealings ethically and with integrity,
involving fair treatment with all stakeholders, customers, employees,
investors, suppliers
+ respect human rights: avoid child labor, discrimination, unsafe working
conditions,...
+ provide quality, safe products: be safe for intended uses, business should
stand by their products and provide redressal for defects
- environmental responsibilities
+ comply with environmental regulations: conforming to rules, understand
and follow all applicable laws that the government has established
regarding waste disposal, pollution control,...
+ implement sustainable practices: incorporate sustainability into
operations through eco-friendly initiatives like waste reduction, energy
efficiency, renewable energy usage
2. Illegal acts (non-ethics business practices)
- tax evasion
- money laundering
- intellectual property theft
- employment laws violation
- environmental violation

27. INTERNATIONAL TRADE

- free trade
 - protectionism
- trade barriers
- tariff
- quota
- absolute advantage: produce goods at lower cost than any other country
- comparative advantage: produce particular goods more efficiently than some
other countries
- infant industry
- strategic industry
- copyright: the legal right to control the production and selling of a book, play,
film, etc.
- dumping: selling unwanted goods very cheaply (usually in other countries)
- trademark
- generic: a cheaper copy of a product that is not marked with producer’s name
- subsidize: to pay part of the cost of sth

1. Theory of free trade => the opposite of protectionism

total absence of government policies restricting the export and import of goods and
services. Two predominant theories of free trade:
- mercantilism:
+ maximize revenue through exporting goods and services
+ goal: favorable balance of trade -> value of goods a country exports
exceeds the value of goods its imports
+ high tariffs on imported manufactured goods
- comparative advantage:
+ refers to a country’s ability to produce goods and provide services at a
lower cost than other countries
+ shares many of the characteristics of globalization
+ worldwide openness in trade will improve the standard of living in all
countries.
2. Advantages and disadvantages of free trade.
Advantages Disadvantages

- help consumers: - job loss/ unemployment due to

+ they have more access to lower outsourcing:
prices since more products
imported from countries with
lower labor costs become
available at local level =>
standard of living goes up
+ higher quality but cheaper goods
and services

- promote foreign investment and - harm the environment

corporate relationships among countries:
+ when not faced restrictions,
foreign investors can pour money
in local businesses and industries
+ when countries depend on each
other for trade, they are much less
likely to go war with one another

- encourage technology transfer: - encourage theft of intellectual property

domestic businesses gain access to the
most cutting-edge technologies
developed by their multinational partners

- stimulate economic growth: all - allows poor working conditions

countries involved tend to realize greater
economic growth
E.g: the Office of the US Trade
Representative estimates that being a
signatory of NAFTA (the North
American Free Trade Agreement)
increased the United States’ economic
growth by 5% annually.

- reduce revenues

3. Methods of payment
a. cash in advance
- pay before receive shipment
- most desired by exporters, less desired by customers
- can harm cash flow and the buyers may be concerned that they may not receive
the shipment
- risk losing business to competitors willing to offer less stringent payment terms
b. open account
- pay in 30 to 90 days after shipping
- maximize potential sales volume (most dangerous & convenient for customers)
- highest risk type of payment in international trade for exporters -> conduct
credit checks and take steps to manage risks
c. consignment (agreement that buyers will pay after they sell goods)
- similar to open account
d. letter of credit
- agreement between your bank and your buyer’s bank that specifies the terms of
the export transaction and triggers payment based on receipt of documents or
on a specific date
- documents should be prepared by trained professionals or outsourced
e. documentary collection
- having a bank collect payment on the exporter’s behalf once the buyer has
receive goods ordered
- does not verify shipment or receipt of the goods involved