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6
 
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ë Introduction to the course

ë Know each other

ë Understand the learning outcomes and the

content of the course

ë Understand how you will be assessed and

why
ë Understand what business economics is and
why it is needed

ë Identify the difference between micro and

macro economics

ë Identify the different types of resources

ë Describe the different types of business

organizations
 Π 
 

x Jpply the theory of supply and demand to the

hospitality industry

x Jnalyze how changes in the industry and the

economy may effect the demand for and
supply of hotel products

x Evaluate what sort of competitive pressures

apply to hotels

x Evaluate how a hotel can react to competition

in the industry
º
Marris N
 Business Economics
Butterworth Meinemann, Oxford
Π


x Understand a range of economic terms

used in the media and how these
factors relate to the hotel industry

x Predict how the demand for hotel and

airline products by different groups of
consumers will be effected by price
changes for these products
 
ë ·tarts at 9 o'clock
ë ·tudents who are late can¶t take it later
ë No papers or books on the table
ë     
ë Jfter checking the exams , bring them back
ë No cellular phones on the table
ë No exchanging calculators
ë No translators on the table
ë Jt a multiple choice exam, circle the right
answer , ©
a v sign
M

ë ill be done alone!
ë Jnswer only to the question asked and
without additional information
ë Printed
ë References if needed
ë ill be delivered until the end of the first hour
Late papers will not be received!

   



ë Jssignments 
ë roup presentation 
ë id Term Quiz's
3  
ë inal Exam 4

† 



 

ë Œhoose an international company
ë Background of the business
age, products 
ë Define in your own words what is the company
strategy
beside maximizing profits 
ë hat are the business resources
ë ho are the business competitors
ë which markets the company addressing
who are
the clients 
ë hat are the business advantages
ë here could the business expand
† 


 
Jnalyze strategic the market using:
ë Porter's five forces model
ë 4P
ë B Œ  portfolio matrix
ë·OT
† 


 
ë Œhoose a product from your firma
ë Explain about the product
ë In which stage your product in the life cycle
hy is it?
ë hat are the complementary and the
substitute goods for your product?
† 


  à
à
ë Before you will present ± you will print one
copy for me with the full name of the member
of the group
ë You will be graded on:
 Œlarity of the language
 Logical presentation
3 Presenting Power point as help tool only
4 Quality of the presentation
5 Jnswering questions!
 
ë bhmsteach@gmail com
×
 
 

ë 9bhms@gmail com
Œode: `

·© 



Before printing the presentation please think of

the environment!
! 


  
ë J business must use its resources efficiently

 
× ×©

Resources

   

! 



  
ë Investing money in new capital
ë Long term plans to achieve its objectives
ë rowth across national
ë Products must be priced competitively
,quality, marketed effectively and distributed
as efficiently as possible




 a


· ©








©
 

 © 

©
 

©©



  

The study of how the resources

land, labor, capital and enterprise
are uses or allocated by the
country to meet its demands for
goods , services and ideas, now
and in the future
 







©

©




©

©



 



ë oods
costumer / producer 
ë ·ervices - non physical items
ë Ideas ± intellectual property which can also
be bought and sold
ë Externalities ± cost or benefit that occurs as a
consequence of either production by
business or consumption by individual or
household
 · 

 




†
 



 

  D
 D
 
laptop, movie, bulldozer, education, medicine,
opera, book, over fishing, inventing an math
algorithm, glasses, planting trees, printing
machine , resistor , T
broadcast, train ,
commercial slogan, formula  car, Boeing
airplane, jeans, cDonalald¶s meal, patent,
plastic bottle, insurance
º 
ë Land ± includes also what is found on and in it

forests, minerals, fish in the sea Employing the
land called rent
ë Labor ± the part of the population who work and
receive wages
ë Œapital ± machinery, factories, computers etc

Business have to set money a side to replace
capital as it wears out or becomes obsolete 
ë Enterprise ± expertise that provide to combine the
other resources


  to produce the output

of goods or services
a


ould you like to hear a story from a
TOP guys who was really
totally
RON?

 
"
V I think there is a world market for maybe five
computers 

ë Thomas atson, chairman of IB , 943

ë |there is no reason for any individual to have
a computer in his home V
977 

ë   
co-founded Digital
Equipment Œorporation
DEŒ
Digital Equipment Œorporation was a pioneering
Jmerican company in the computer industry
ë V 64 Kilobyte should be enough memory for
anybody V
98 

ë Bill ates
ë V ho would ever need such a silver disc? 

ë 6

!
  
a
 !


ë Jpple Inc is an Jmerican multinational
corporation which designs and manufactures
consumers electronics and software
products
ë Jpple was established on 976 by ·teve
Jobs , ·teve ozniak and Ronald ayne
ë The company manufactures in the early 8¶s
the Jpple || computer, was going public and
became a huge success
ë Jpril 983, John ·cully became ŒEO of
apple
ë ·cully divided the company to many divisions,
with a variety of computers for each market,
and slowly decreasing the development
division
ë rom a successful company at the 8¶s the
company almost bank robed at the mid 9¶s
ë Jt 997 ·teve Jobs join apple as an advisor,
and after 5 month nominate as ŒEO, and he
began restructuring the company¶s product
line and reduction of many apple¶s products
ë Today the company consider as on of
Jmerica¶s ost Jdmired companies with
unique products such as the ac, iPOd,
iPhone«
ë The arket cap is 8 billion U· dollars with
35, employees
8 
 ´

V    ·  6
"

http://money cnn com/8/3//news/copmpanies/elk

ind_jobs fortune/index htm

V·  6

  
#
$

©
"

http://www fastcompany com/blog/brendan-

collins/keeping-it-clean/why-steve-jobs-apples-most-
important-product
a 
 ! 
ë M £ the cost of using resources

ë a   £ cost of using the alternative

resource
ë Total cost £ historic cost + The opportunity cost



Every onday evening I am going to the
cinema to see a movie at the cost of  · R

Jt the same time I could go to the Rod Mouse

and have a glass of wine at the cost of 5
· R

hat is Mistoric cost , The opportunity cost and

the Total cost?
ë Mistoric cost is  · R

ë The opportunity cost a 5 · R

ë Total cost 37 · R
{   {   

ë #




± small, microeconomics
looks at an individual business and how it
behaves

ë #




± large, analyses the
economy as a whole, both nationally, and
internationally
 
 
ë Limited liability companies ± business owned
by shareholders who have limited legal
liability
ë The companies could be private or public
limited liability
Plc 
ë J Plc could be taken over
5 shares 
ë J Plc has the advantage of being able to
issue new shares
 The top ten 8
in Jmerica -
Rank Œompany Revenues Profits
 al art ·tores 378,799 ,73
 Exxon obil 37,84 4,6
3 Œhevron ,783 8,688
4 eneral otors 8,347 -38,73
5 ŒonocoPhollips 78,558 ,89
6 eneral Electric 76,656 ,8
7 ord otor 7,468 -,73
8 Œitigroup 59,9 3,67
9 Bank of Jmerica 9,9 4,98
 JT&T 8,98, ,95
 
 
ë ·E ± J business employing 5 employees
or fewer
small / medium sized enterprise 
ay be a private or public limited company

ë ·ole trader ± J business run by one person,

although more than one person might be
employed
Mas an unlimited liability
 
 
ë The partnership ± Typically found in the
professions such as laws, accountancy, and
architecture ·ome partnerships have limited
liability , most unlimited
The least common type of business
J
#
r ·mith decided to open his own business
Jnd sell shoes
Jfter a year the business begin to profit

ith his profits he bought himself a nice small

errari and a new hause
ë r ·mith decided that he want to increase
his company, and in order to raise money he
decided to go public and to with limit limited
liability

ë Mis company new name was r ·mith inc

ë ·ince he wanted to drive with his errari only

at the week end , the company gave him a
new ercedes
ë Unfortunately r smith did not know how to
run a big company , and after loses of 3
million dollars the company
bankrupted«

hat will happen with his

Mouse , errari and ercedes
and MY?



The economy of a country and its businesses
are classified into three main categories:

ë 


 ± changing natural resources
into primary products Œovers industries as
agriculture, forestry, fishing, mining for coal ,
tin ect Primary industry is a large sector in
developing countries



ë ·
©

 ±create a finished, usable
product Process the output of the primary
sector
any of these industries consume large
quantities of energy and require factories and
machinery to convert the raw materials into
goods and products
Divisions of this sector include: Jutomobile,
Brewing, Œhemical , Textile, etal work
Tobacco and ect



ë Tertiary sector ± provision of services to
businesses as well as final consumers
service sectors:
Insurance, government, tourism, banking ,
retail, education, social services
· #
ë Issues fundamental to business economics
ë Basic economic concepts
ë Business outputs
ë The cost of using resources
ë icroeconomics and macroeconomics
ë Business organizations
ë Industrial sectors
 p$
 % 

ë ind a charismatic ŒEO and write what did
he/she do that made the company a success

not more than half a page 

ë hat are the business outputs in the tourism

industry
Example 

ë ive  examples for microeconomics

influences at the tourism industry

ë ive  examples for macroeconomics

influences at the tourism industry