Jim Horning

1

2

Course outcome:
y Apply the theory of supply and demand to the

hospitality industry

y Analyze how changes in the industry and the

economy may effect the demand and supply of hotel products apply to hotels

y Evaluate what sort of competitive pressures y Evaluate how a hotel can react to competition

in the industry

3

Course details: y Understand a range f ec nomic terms sed in t e media and ow t ese factors relate to t e otel industry y Predict ow t e demand for otel and airline roducts by different groups of consumers will be effected by price c anges for t ese products 4 .

Reading Harris N .(2001) Business conomics. Butterwort Heinemann. Oxford 5 .

don t ark a sign y 6 .Quizzes y Starts at 9 o'clock y Students who are late can t take it later o papers or ooks on the ta le y Writi with pe ly y No cellular phones on the ta le y No exchanging calculators y No translators on the ta le y At a multiple choice exam. circle the right answer .

Late papers will not be received! y 7 .W.H. y Will be done alone! Joined wor will reduce t e grade nswer t e questions being as ed y Printed y References when needed y Will be delivered at the beginning of the first hour.

Evaluation : (Weighting %) y Assignments y Group presentation y Quizzes y Final xam 20% 20% 20% 40% 100% 8 .

couses and effects. y xplain what happened . y Personal opinion 9 . Presentation: y 5 .Economy in News y Students who wishes to present what happened in the last wee news will gain 5 extra points to their final grade.10 minutes.

) 5. monopoly . What are the business resources 3. products. Where can the business expand Analyze strategic the mar et using: 6. 4.Group presentation WEEK 5 y Choose an international company. Bac ground of the business ( Founders. In which ind of mar et the company operates?( perfect competition. 1. SWOT analysis 10 . headquarters etc. ) 2. Who are the business competitors. Porter's five forces model ( xplain each force and conclusion) 7.

G.C.( in g t its s l s d t nd its m r t s sourc ) y Explain shortly about the product. portfolio matrix ( using s l s d t nd m r t s r ) 10.Group Presentation y Choose one product from this firm. In which stage your product in the life cycle. 8. Why is it? (Us s l d t ) 11. What are the complementary and the substitute goods for your product? 11 ic ou c n r from r li bl . What are the 4P's of the product? . B.

do not romot t com n 6. Criticiz .tinyurl. including body language.Group Presentation .Assessment y Before you will present you will print one copy for me with the full name of the member of the group y You will be graded on: 1. Presenting. Answering questions References in Tiny Url www. Logical presentation 3. Power point as help tool only 4. eye contact and nowledge of overall content (not dependent on notes) 5. Clarity of the language 2.com 12 . Presentation Technique and Delivery. enthusiasm.

Emails: y bhmsteach@gmail.com Password: bhmsbhms Students em ils Before printing the presentation please think of the environment! Avoid riting m ils from t e students m il ccount 13 .com Lecturer em il y 200 bhms@gmail.

Today's objectives y Introduction to the course y Know each other y Understand the learning outcomes and the content of the course 14 .

y Understand what business economics is and why it is needed y Identify the difference between micro and macro economics y Identify the different types of resources y Describe the different types of business organizations 15 .

Issues fundamental to business economics A business must use its resources efficientl Capital Labor Land Resources Entrepreneurs 16 .

17 .Issues fundamental to business economics Investing money in new c it l.

18 .Issues fundamental to business economics Long term l ns to c ieve its objectives.

19 .Issues fundamental to business economics Growth across national.

m r eted effectively nd distributed s efficiently s ossible. 20 .Issues fundamental to business economics Products must be   ricedcom etitively .qu lity.

21 .

Economic concepts ‡ How does it works? 22 .

The Economy Sell goods & services Pay for services of factors of production Provide factors of production Demand goods & services 23 .

capital and enterprise are use or allocated by the country to meet its demands for goods . labor. services and ideas. 24 .Economics: The study of how the resources land. now and in the future.

non physical items. y Externalities ± cost or benefit that occurs as a consequence of either production by business or consumption by individual or household.Business outputs y Goods ( customer / producer ) y Services . 25 . y Ideas ± intellectual property which can also be bought and sold.

Externalities laptop. train . commercial slogan. 26 . glasses. patent. printing machine . medicine. inventing a math algorithm. Services . Boeing airplane. education. book. planting trees. jeans. formula 1 car. over fishing. broadcast. T. insurance. opera.V. McDonald s meal. resistor . movie. Ideas .Sort the business outputs: Goods (customers /producers). bulldozer.

Scarcity of resources y Resources are limited y Must be used as efficiently as possible y Allocative efficiency 27 .

Resources y Land includes also what is found on and in it. (forests. y Enterprise expertise that provide to combine the other resources most efficiently to produce the output of goods or services. minerals. computers etc. ( Business have to set money a side to replace capital as it wears out or becomes obsolete ). 28 . Employing the land called rent. y Capital machinery. fish in the sea). y Labor the part of the population who work and receive wages. factories.

The Entrepreneur Would you like to hear a story from a TOP guys who was really totally WRONG?.. 29 ....

.Who said it?. y Thomas Watson.. Ithink there is a world market for maybe five computers. 1 43 30 . chairman of IBM .

( 1 77 ) y Kennet Harry Olsen co-founded Digital Equipment Corporation (DEC) Digital Equipment Corporation was a pioneering American company in the computer industry 31 .y "there is no reason for any individual to have a computer in his home.

top manager in 32 .y Who would ever need such a silver disc?. y Jan Timmer..

y 640 Kilobyte should be enough memory for anybody ( 1 81 ) y Bill Gates 33 .

Case study 34 .

35 .

y Apple was established on 1 76 by Steve Jobs . Steve Wozniak and Ronald Wayne. y The company manufactures in the early 80 s the Apple || computer.The story of apple y Apple Inc. 36 . was going public and became a huge success. is an American multinational corporation which designs and manufactures consumers electronics and software products.

y Scully divided the company to many many divisions. with a variety of computers for each market. and slowly decreasing the development division. John Scully became CEO of apple.The apple case study y April 1 83. 37 .

and after 5 month nominate as CEO.y From a successful company at the 80 s the company almost bank robed at the mid 0 s. and he began restructuring the company s product line and reduction of many apple s products 38 . y At 1 7 Steve Jobs join apple as an advisor.

y Today the company consider as on of America s

Most Admired companies with unique products such as the Mac, iPOd, iPhone

y The Market cap is 43 billion US dollars with 35,000

employees. ( 200 )

39

Further reading:
How big Can apple get? http://money.cnn.com/magazines/fortune/fortune_ar chive/2005/02/21/8251769/index.htm W y Steve Jobs is Apple s Most Important Product http://www.fastcompany.com/blog/brendancollins/keeping-it-clean/why-steve-jobs-apples-mostimportant-product

40

Apple case study
y What do you were Apple mistakes? y Do you know on another company that did the same

mistake?

41

The cost of using resources y Historic cost = the cost of using resources y The opportunity cost = cost of using the alternative resource y Total cost = historic cost + The opportunity cost 42 .

What is Historic cost . 43 . Every Monday evening I am going to the cinema to see a movie at the cost of 12 CHF.. At the same time I could go to the Roadhouse and have a glass of wine at the cost of 25 CHF....In that case... The opportunity cost and the Total cost?.

y Historic cost is 12 SFR y The opportunity cost a 25 SFR y Total cost 37 SFR 44 .

What is the difference between Micro and Macro economics? 45 .

analyses the economy as a whole. microeconomics looks at an individual business and how it behaves. y Macroeconomics large. both nationally.Microeconomics and Macroeconomics y Microeconomics small. 46 . and internationally.

y A Plc has the advantage of being able to issue new 47 . y A Plc could be taken over. y The companies could be private or public limited liability ( Plc ).Business organizations y Limited liability companies business owned by shareholders who have limited legal liability.( 51% shares ) shares.

558 176.190 118.468 159.732 11.229 119.824 210.799 372.723 3.610 18.95148 .891 22.617 14. Profits 12.928.347 178.208 -2.The top ten 2008 ( in America ) Rank 1 2 3 4 5 6 7 8 9 10 Company Wal Mart Stores Exxon Mobil Chevron General Motors ConocoPhollips General Electric Ford Motor Citigroup Bank of America AT&T Revenues 378.688 -38.982 11.783 182.731 40.656 172.

207.0 118.723 3.764.891 22.0 Profits 12.208 -2.731 40.95149 .0 230.277.0 263.028.364.0 118.617 14.0 183.The top ten 2009 ( in America ) Rank 1 2 3 4 5 6 7 8 9 10 Company Exxon Mobil Wal-Mart Stores Chevron ConocoPhillips General Electric General Motors Ford Motor AT&T Hewlett-Packard Valero Energy Revenues 442.0 146.0 148.159.732 11.0 124.688 -38.851.979.607.610 18.298.982 11.0 405.

BP 5. Chevron 50 . Wal-Mart Stores 4. Royal Dutch Shell 2.The top ten 2009 ( in the world) Company 1. Exxon Mobil 3.

Smith decided to open his own business and sells shoes.A case study Mr. 51 .000$ per year. In order to raise money he decided to go public and to become a company with limited liability. After two years of loses the business begin to profit 1. Smith decided that he want to develop his company.000. Mr.

y Since he was proud with himself he decided to call the new company Mr. Smith inc y As a respected CEO the company bought him a Mercedes so he would be able to come to work every day y Mr. 52 . smith decided to buy his wife a nice small sport car ( Ferrari ) and a new house on the beach as a thank you gift.

y Unfortunately Mr. smith did not know how to run a big company . 53 . and after loses of 3 million dollars the company bankrupted . What will happen with his House .. Ferrari and Mercedes WHY?..

forestry. Covers industries as agriculture. fishing. 54 . Primary industry is a large sector in developing countries. tin ect.Industrial sectors The economy of a country and its businesses are classified into three main categories: y Primary sector changing natural resources into primary products. mining for coal .

55 .

Divisions of this sector include: Automobile. 56 . Textile. Process the output of the primary sector. Chemical . Many of these industries consume large quantities of energy and require factories and machinery to convert the raw materials into goods and products. Brewing.Industrial sectors y Secondary sector create a finished. usable product. Metal work Tobacco and ect.

57 .

social services. service sectors: Insurance. government. education. 58 .Industrial sectors y Tertiary sector provision of services to businesses as well as final consumers. banking . tourism. retail.

59 .

Summary y Issues fundamental to business economics y Basic economic concepts y Business outputs y The cost of using resources y Microeconomics and macroeconomics y Business organizations y Industrial sectors 60 .

3.cnn. l i ic i rc tri l tr j r i ct r t r  ci i 61 .com/magazines/fortune/ 2. . ( not more than half a page) . Analyisthe usiness resources of the company that you chose. ind a charismatic CE that you admire and write what did he/she do that made the company a success story.Next week assignment 1. ive an example for micro and macro economics influences at the tourism industry.You can get ideas from ortune magazine http://money.

Sign up to vote on this title
UsefulNot useful