...Business Theory The foundation of business theory has been, and always will be, a consistently evolving process for as long as the exchange process is around. Since the early stages of mercantilism, in the seventeenth century, business theories began to shape the daily operations of ventures. However, it should be clearly understood that a theory does not provide a definite solution to success. Instead, theories are merely “a set of assumptions, propositions, or accepted facts that attempts to provide a plausible or rational explanation of cause-and-effect relationship among a group of observed phenomenon.” These ‘acceptable facts’ will in turn shape a business’s goals to obtain success within their respective industry. Writer, and business theorist himself, Riad Ajami explains, “Theories of trade have evolved over time, beginning with the emergence of strong nation-states and the organization for systematic exchanges of goods among these nations”. (Ajami, 48) Throughout this document, six business environments (domestic, global, technological, political-legal, sociocultural, and economic) will be explored, in regards to how these environments affect the ongoing evolution of future business theories. Business theorists have changed the way people do business, not only from a domestic standpoint, but on a global level as well. The domestic and global environments are primarily based on demand conditions. ‘Conditions’ of a business theory can in turn be used in a business’s...
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...RESEARCH & IDEAS Applying Business Theories to Your Life Published: June 4, 2012 Author: Carmen Nobel Scholarly economic theory applies to more than just business. The same causal mechanisms that drive big corporations to success can be just as effective in driving our personal lives, says Professor Clayton M. Christensen. Key concepts include: • In evaluating major life decisions, it's helpful to employ a tool called discovery-driven planning, which essentially boils down to a single question: What assumptions must prove true for this plan to work? • Incentives are not the same things as motivators. • Marginal thinking can be dangerous. It's safer to decide early on that you'll stay true to your commitments 100 percent the time, rather than assess the risk of every "just this once" possibility that comes along. Intel Corp. and the Pentagon, for example. In 2011, Thinkers50 named him the world's most influential business thinker. At the same time, he has held major leadership positions in his church, and he's never taken a business meeting on a Sunday because his faith encourages its members to keep the Sabbath Day holy. He sees no dichotomy. "You know, it's a travesty that somehow our society has gotten to a point where people have the view that science and academia are inconsistent with a spiritual life, and the belief that there we've been put here for a purpose," he says. "The reality is that the only reason you're interested in either of these things is that you're interested...
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...The Application of Equity Theory in Business Today Research Paper Marcy Adams Organizational Behavior and Theory, Bus 7000 Professor Bryan Forsythe October 15, 2012 “That’s why you get paid the big bucks!” A phrase often head in all levels of management may actually hold theoretical meaning as opposed to what was often thought as simply an excuse to get out of performing a task. Unfortunately, implications of such could be the demonstration of a much deeper feeling in inequity that could ultimately damage the motivation of an entire organization. As defined, an organization is a collection of people who work together to achieve a variety of goals (Understanding & Managing Organizational Behavior, p 1). Organizational behavior is the actions and attitudes of those people within the organization (Understanding & Managing Organizational Behavior, p 1). The attitude of an individual determines the job satisfaction or dissatisfaction, commitment to the organization and overall involvement. Attitude can be influenced by internal factors, external factors and perception. First developed by John Stacey Adams in 1963, Equity theory attempts to explain the relationship between how fairness and unfairness correspond to a persons satisfaction. It asserts that employees seek a need to maintain balance between their inputs and outputs, all in comparison to that of a “referent” other (McShane & Von Gilnow p.151)...
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...Game Theory in Business Decision | | | Content 1. Introduction -------------------------------------------------------------------- P.2 2. Main Models of Game Theory ---------------------------------------------- p.3-4 3. Nash Equilibrium ------------------------------------------------------------- p.5 4. Dominant Strategy ----------------------------------------------------------- p.5 5. Prisoners’ Dilemma ---------------------------------------------------------- p.5-6 6. Daily Example of Competition of Supermarkets ------------------------ p.7-8 7. Daily Example of Competition of Mobile Market ---------------------- p.9-10 8. Daily Example of Penalty Kick in Football Match --------------------- p.11-12 9. Conclusion ------------------------------------------------------------------- p.13 10. Reference -------------------------------------------------------------------- p.14-15 Introduction Game theory is the study of how people behave in strategic situations. Game theory concerns situations in which multiple players make strategically interdependent decisions. The term interdependent means that one person’s behavior affects another person’s well-being. We can make use of game theory on different aspects such as economics, political science and even our daily life. For example, whether TV stations leads to enlarge the market shares on program production usually depends on the subsequent moves...
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...Theories of Systems Analysis and Design for Integrated Business Solutions Xin Tian Herzing University Theories of Systems Analysis and Design for Integrated Business Solutions Introduction The word system comes from the Greek work “systema” defined as an organized relationship among functioning components or units. Business system analysis and design breaks down the entity’s components into its basic constituents for the purpose of studying how each component works with other components in the fulfillment of the business purpose (Grady, 2007). Business system analysis and design entails identifying the goals of an enterprise. Next, the analyst develops systems that will fulfill these goals through studying the basic components of the system with the aim of fulfilling the business’ goals in an efficient way. The analysis aspect of the system deals with what the systems should do while the design part outlines how the system will fulfill its purpose. A basic system will consists of two or several interrelated constituents. Each element of the system will consist of three properties. 1) Each component affects the functioning of the entire system. 2. Each component is affected by at least one other component in the system. 3. All subsystems of the components have the first two properties. Systems analysis and design for integrated business solutions entail three levels. The first level is the...
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...University of Frankfurt am Main Bachelor Seminar Business Cycle: Theory and Empirical Applications Country of interest: Netherlands Teacher: Prof. Ctirad Slavik Summer Semester 2013 Yisong Dong Student ID: 3903447 June 17.2013 Contents 1. Introduction……………………………………………………………………3 2. Data Work………………………...…………………………………………...3 2.1 2.2 2.3 2.4 2.5 Data……………………………………………………………………3 Detrending the data with Hodrick-Prescott Filter………………..……4 Basic Statistics for the detrended data………………………………...7 Construct the Solow residual without labor……………………...…..11 Construct the Solow residual with labor…………….………………12 3. Calibrating and simulating a simple stochastic RBC model…………………13 3.1 3.2 Two procedure for calibrating θ and calculating the I/K, K/Y and I/Y ratios……….…………………………………………………………13 Stimulation…………………………………………………………...16 4. Conclusion……………………………………………….………………...…21 References………………………………………………………………………..22 2 1. Introduction Business cycle refers to economy-wide fluctuations in production, trade and economic activity in general over several months or years in an economy organized on freeenterprise principles.1 It has been a well-documented feature of economic life for two centuries or more. Business cycle is the upward and downward movements of levels of GDP2 and refers to the period of expansions and contractions in the level of economic activities (business fluctuations) around its long-term growth trend.3 These fluctuations occur around...
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...1. Reflect on what you have learned about the Milgram Studies. Many people have criticized these studies on ethical grounds. Assuming that some socially useful information was gained from the studies, do you believe this experiment could or should be replicated today? If it was, do you feel that the results would be different? The Milgram study which was conducted in the 1960’s to determine how far a group of individuals would go in punish the accomplice when they provide a wrong answer to a question that was asked. The results were that 65% of the participants actually gave the maximum “danger” shock which I found to be extremely alarming. The study today may not have a significant increase on the percentage of people that would give the maximum “danger” shock but if we were to perform the study again in about 10 to 20 years, I honestly think that the percentage would be much higher. Video games, music, movies are all teaching “harm” to today’s youth and unfortunately people are becoming more and more desensitized and don’t feel sympathy for wrong doing. I found the YouTube video extremely alarming and chose not to watch it all. Moving away from the extreme, I do think that certain individuals will take lead and do what they are ask to do from their authority even if it is something that they are not comfortable with. This of course all depends on the individual. The younger adults may more vulnerable and feel that they are required to do what they are asked...
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...To what extent are ethical theories helpful when considering ethical business practice? Generally, the term business ethics consists of ensuring businesses, whether they are in the private or in the public sector, adhere to ethical guidelines. Not all businesses are the same although have similar objectives which result in business ethics being diverse. These ethics do not only just relate to how businesses relate to the world, but moreover with the relationship between them and their customers. In order for a business to become a good business, they must be ethical, however there are several aspects to consider. There are many global businesses in which ethics are not seen to be important as their main goal is to ensure profit is made. Some have been fined millions for breaking ethical business laws, e.g. Child labour, however the incentives coming into the business (billions) outweighs their fines. Ethical theories can be a way in which businesses can take on board the whole concept of ethics and put it into practice. Natural Law emphasises on the purpose of the person. Aquinas looks at what is good for humans, saying that humans share part of their nature with all natural things, parts with animals, and part of our man nature is particular to us. This means Aquinas would not accept exploitation of humans, animals and nature. Business is instrumental and most serve the common good. For Aquinas economic transactions, as human interaction, cannot be separated from ethics...
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..."AFT" The New Business Theory by Joseph Barnhardt Strayer University, Professor Lind Contemporary Business Bus 508 Summer Term 2 Many successful business tycoons have created great business theories and or philosophies that been implemented and with stood the test of time in which their business are the model for many to follow today. So in thinking of a new business theory one comes to mind of ” AFT” which stands for Attention, Focus, and Thinking. Steve Case CEO of AOL.com used his own theory when he started his businesses in the early 1990‘s towards his success which were People, Passion and Perseverance. This logic of think has made his company what it is today a fortune 500 company and a major player in todays internet business market. In todays entrepreneurial leadership processing, new theories can be tried and proven effective or not. So beginning with the first word of AFT being attention, can be implemented in every business decision and planning you can become successful. Attention begins the fa major step in planning strategies or creating a plan of attack with the goals for leading your project from beginning to end. Webster defines attention as condition of readiness for such attention involving especially a selective narrowing or focusing of consciousness and receptivity (Webster, 2011). Attention is a very important piece of planing and decision making for any project to begin to come to fruition. The next piece of “AFT” is Focus, focus...
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...Different theories of international business provide insights about favorable locates for exports as well as potentially successful export products. These theories also helps companies determine where to locates their production facilities because in the absence of trade restrictions export of given products will move from lower-cost to higher-cost production location. The theories also increase understanding about government trade policies and predict how these policies might affect companies’ competitiveness. Some important theories of international business are stated & discussed below:- 1. Mercantilism: Mercantilism is a trade theory that formed the foundation of economic thought from about 1500 to 1800. Mercantilism held that a country’s wealth was measured by its holdings of treasure which usually meant its gold. According theory, countries should export more than they import and receive gold from countries than run deficits To export more than they imported government imposed restrictions on most imports and they subsidized production of many products that could otherwise not compete in domestic or export markets. Some countries use their colonial possessions to support this trade objective. Colonial supplied many commodities that the colonizing country might otherwise have had to purchase from a non associated country. The colonies had to export less highly valued raw materials from engaging and import more highly valued manufactured products. Mercantilist theory was...
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...Number 2 (Ciafone, A., 2012) What happened: misused of water, caused problems such as skin irritation and shortage of water to the residents, determined to garner global attention which resulted in the ending of contracts with coca cola in campuses ( united states, Canada, Ireland, the uk, Italy, and india), indian parliament prohibited the sale of soft drinks What did they do: initiated water specific projects such as reducing and recycling water and such, but people were still skeptical about the sustainability of the pledge. In addition, plant workers were against the idea as they view it as a threat to their jobs Fritz Kaestner and Bergmann (2010) What happened: Frontline employees are crucial to every company’s success and should be trained in order to provide value for their companies. What did they do: * CCE understands that decreasing turnover costs and increasing frontline employees’ ability to execute the company’s strategy will lead to an increase in shareholder value * Effective learning requires structure, which iswhy CCE and BTS developed the new Pathway program to structure every day of the first two to four weeks of the new frontline employee’s on-boarding process. * In short, every new employee has a clear roadmap of what to learn, how, and from whom they can learn in order to be successful. * Everyone is equally responsible for success: the peer coach supports the new employee; the manager assesses the training; and the employee owns the training...
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...Marx’s Alienation Theory Introduction To discuss the question whether Marx’s Alienation Theory is still relevant in the modern workplace, it is necessary to identify what Marx’s Alienation Theory is and how the theory changed in the past decades. Then I will discuss about the characteristics of modern workplace and try to analysis the situation from the alienation theory perspective. As conclusion, I will try to evaluate the relevance between the theory and the workplace. Definition of Alienation Alienation is the process whereby people become foreign to the world they are living in. more The concept of alienation is deeply embedded in all the great religions and social and political theories of the civilised epoch, namely, the idea that some time in the past people lived in harmony, and then there was some kind of rupture which left people feeling like foreigners in the world, but some time in the future this alienation would be overcome and humanity would again live in harmony with itself and Nature. Marx had a specific understanding of the very sharp experience of alienation which is found in modern bourgeois society. Marx developed this understanding through his critique of Hegel. According to Hegel, through their activity, people created a culture which then confronted them as an alien force. But for Hegel human activity was itself but the expression of the Spirit (or Zeitgeist) which acted through people. In the first place, Marx insisted that it was...
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...An Ethical Theory Applied to Business Organizations The object of this essay is to establish whether there is an ethical theory that can be successfully applied to business organizations. In order to answer this question, it is necessary first to define the major ethical theories, which are utilitarianism, deontology and virtue ethics, before determining whether there are any other options. After that, the ethical needs, problems and limitations of work organizations will have to be examined so that the different theories can be evaluated in this context. It will also be important to draw a distinction between the terms “accurate” and “useful” as these actually result in two different questions the answer to which need not necessarily be the same. Another essential part of this discussion is the more general question why there should be ethics in work organizations in the first place, and to what extent ethical behavior is feasible in the business world. Hopefully this will provide a framework within which the answer to the essay question can be included. To begin with, the “traditional” approaches to solving moral problems will be defined, namely those of act-utilitarianism and deontology. These are traditional not because they have existed longer than virtue ethics, but because for a long time they have been the approaches most commonly used as a basis for trying to solve ethical problems. After looking at these two moral theories, the approach of virtue ethics regarding...
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...Week 2: This week talked about the accounting environment in Australia. At the beginning of the lecture, we were asked to complete a questionnaire. The questionnaire contained the definitions of accounting terms. Introduction to course outline, trying to understand how it relates to accounting degree as a whole. The way to develop an understanding is to focus on the suitability of current accounting practices and how to develop improved accounting practices where current practices are unsuitable for changing business circumstances. This allows me to look at the course as a whole. Team formation with group of 4 led to some problems as two members had a personality clash and had a fight about the first task which included choosing photos out of a magazine that represented accounting. The group worked the problem out however it just shows the pros and cons of team work as sometimes personalities that clash each other may erase any benefits of team work. The vital issue this week is why regulation is needed and I hope to reflect about this in the weeks to come Other issues is who regulates and why one framework has begun to dominate world wide Why were certain regulations introduced such as “Intangible assets” Not reliable or timely, can’t be measured accurately. Problem is it undervalues organisation. Found the topic beneficial as a whole Week 3: Watched the movie “Company Men”, which reflects the operation of a financial company during the global financial crisis...
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...FORMULATION OF ACCOUNTING THEORY: PURPOSE AND APPROACHES A TERM PAPER (2) ON ADVANCED ACCOUNTING THEORY (ACC 821) PRESENTED BY EKERIA, Victor IKYUME, Chiahemba James OGBOLE, Philip Osemudiamen SUBMITTED TO PROFESSOR A.E. OKOYE DEPARTMENT OF ACCOUNTING COLLEGE OF BUSINESS AND MANAGEMEN SUDIES IGBINEDION UNIVERSITY, OKADA MARCH, 2015 Abstract As tasks of accounting became more difficult and focus shifted to users’ needs, a theory became necessary. Existence of a need for information for decision making (decision usefulness) in face of information asymmetry led to development of means, tools and techniques for satisfying decision making needs (formulation of accounting theories) This paper briefly discusses the purpose/importance for accounting theory and various approaches to the formulation of an accounting theory under two headings, namely: (1) traditional approaches, and (2) new approaches. The paper finally highlights the critiques of the accounting theory approaches Table of Content 1.0.0. Introduction……………………………………………………………………………… 1 2.0.0. Meaning of Accounting Theory………………………………………………………… 2 2.1.0. Needs and Purpose for Accounting Theory…………………………………………….. 3 3.0.0. Early Attempts at Accounting Theory……………………………………………………...3 4.0.0. Approaches to the for Formulation of Accounting Theory……………………………….5 4.1.0. 4.1.0. The Traditional Approaches………………………………………………………..5 4.1.1. Non – Theoretical, Practical, or Pragmatic (Informal) Approaches……...
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