1_What is the Firm

The internal environment (business organization): components

Try to formulate any factors of the internal business environment

The internal environment (business organization): components

People within the organization (personnel)

The system of business operates

Structure and culture of the firm

Financial and informational recourses

What is the Firm?

The external environment: components

Direct influence

Government

Customers

Suppliers

Competitors, etc.

Indirect influence

Political influences

Economical influences

Sociological influences

Technological influences, etc.

What is the Firm?

Why does a firm exist?

Try to set the most important objectives of the business activity

What is the Firm?

The firm: business objectives

To stay in business (the prime objective)

To make a profit

To satisfy public needs

What is the Firm?

The firm: business objectives

Suggest what you consider to be

A. the most important objectives

B. additional goals

for the following organizations

1.Chelsea Football Club

2.The Church

3.Nissan Motor Manufacturing

4.Plekhanov - IBS

Economics of the Firm: Activity

Theodore Herman Albert Dreiser

(1871–1945)

American novelist and

journalist who pioneered the

naturalist school and is known for portraying

characters whose value lies not in their moral code, but in their persistence against all obstacles…

What is the Firm?

Novel by Theodor Dreiser, published in 1912

The first volume of the Trilogy of

Desire, which includes The Titan

(1914) and The

Stoic (1947).

What is the Firm?

The Financier, by T. Dreiser: read the fragment, upon which think of…

Social Darwinism: only strong man

(=“timeservers”) survives. Do you agree?

Why?

Lobster and squid:“things lived on each other”. Is this a logic for business activity?

Why?

Seeing his father count money Frank admires banking. Could you share his feelings? Why?

What is the Firm?

Business activity: entrepreneurial characteristics

 To have a vision

To set goals for yourself and your



employees

To assume risks

To be a generalist

To pay attention to details

What is the Firm?