Economics & Business 1

Pramela Nair – pramela.nair@fhrinstitute.sr

Doctoral candidate (Info. Sys. & Tech.)
MBA (Finance) & B. E. (Computer Science)
 Agenda
• Lesson Plan
• Knowledge Quiz’s
• Interactive exercises
• Planning for class 3
 Learninggoals Class 2
- Explain organizational behavior Chapter 1
on the basis of the market -Cover economic activity and
structure. economics
- Describe and classify various -Understand Business environment
markets. -Cover absolute and relative data
- explain the role of economics Chapter 2
within the business environment. -Cover importance of market, product
and the business sector
 Knowledge - Quiz

Project groups split in two.

30 seconds per question

Read, Talk, Answer!

 Question 1
• What is scarcity?
• What is the business environment?
• How does the direct environment differ form the indirect
environment?
• Chapter 1 Economics and the business
environment
Needs
Resources

Prosperity

Time
 Fields of Economics

A distinction needs to be made between the

following:
• Industry analysis
• Macroeconomics
• Monetary economics
• International economic relations.
Business Environment
 Case study – The
Asccell Group
Profile of the Asccell Group
•Focusses internationally on the mid-range and higher
segments of market for bicycles, bicycle parts and accessories
and fitness equipment.

•Has a leading position in the Netherlands, Belgium, Germany,

Italy, France, Finland, Turkey, U.K. and the U.S.

•In Europe, market leader in the bicycle market in terms of

revenue.

•Employees – 2,776; Presence – 18 countries.

•Profitable revenue in 2012 – 772.5 million euros.

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 Case study – The
Asccell Group
• Revenue of the Accell Group geographically 2012:
The Netherlands (27%)
Germany (25%)
Other European countries (30%)
North America (14%)
Other countries (4%)

• Revenue of the Accell Group by product family 2012:

Bicycles (71%)
Parts (26%)
Fitness (3%)

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 Young Entrepreneurs
A group of young entrepreneur wants to change the world with their new clothing-line.

They think it is very likely to be a success since they all graduated from a design school.

Their thesis and final project ended up in several media sources. ​

The bank employee that helps them with their business plan, explains them that their insights and thoughts might not
be well received by the consumers on the market. Of course this is a prerequisite to sell the clothes.

The entrepreneurs have to answer the following questions:

- Do our products take a large or small share of the customers total budget?

- Is the buying decision made conscious or unconsciously?

- Are the products we're about to sell easy or not easy to substitute?

- How will sales (quantity) of our product be affected in case income levels of consumers change?

- Are the products we're about to sell sensitive to changing trends, fashion or consumer preferences?

Answers to these questions will give insight in consumer behavior