Business Administration

Ing. Kateřina Maršíková, Ph.D.

Department of Business Administration

Faculty of Economics
katerina.marsikova@tul.cz
phone: +420 48535 2344
 Literature - sources
 Lectures – ppt presentations
- Multiedu.tul.cz
- Rydvalová, P., Maršíková, K. Small and
Medium Enterprises
- Introduction to Business
 Subject requirements
Semestr –credits
- Semestr project (25 points)

- Activity during the semestr (5 points)

- Attandance

 Exam – written exam 70 points

 Form of the Project
 Written in MS Word – up to 10 pages
 Title list – Name, title of the project, date, country
 Content, pages numbering
 Literature – resources – Harward style of citation
 Theoretical part
 Practical part
 Conclusion
 Business environment
 Geographical
 Social
 Political and legal
 Economic
 Ecological
 Technological
 Ethic
 Cultural
 What means „ECONOMIC“
 Availability and prices of factors of production
(resources, which are used to produce goods
and services)
 Tax burden of enterprises
 Economic growth, monetary conditions
(macroeconomic growth, inflation, exchange rate,
purchasing power of customers)
Customers, suppliers, financial institutions
 Do you know?
 Income tax of your country (PIT, CIT)?
- Natural person x legal entity- body
(companies)
- Inflantion
- Unemployment
- Value Added Tax
- Average gross salary (wage)?
 ECONOMICS

 Economics – a science concerned with law

governing the economic life of siciety.
- To meet human wants and needs with limited
sources.
- How, what and for whom.
 Economy
 Complex of activities and subjects (firms,
companies, state, individuals) concerned with
the production, distribution, exchange and
consumption of goods within a certain area.
 Basic types of economies
 Command economy (centrally planned)

- Economic decision are made by goverment

 Shortage x unsaleable commodities

- It was typical for socialist countries

 (Free market economy)
 Law of supply and demand
 Profitability

P D

Q
 Supply – the goods being sold
 Demand – the interest of the buyers to
purchase the commodities offered
 Market price – a figure determined by the
relation between the supply and the demand
 Equilibrium – point of intersection between
supply and deman
 Competion – creates an inseparable conditions
for the existence of any market
 Mixed economy
 Combines certain featues of pure market and
command economic systems

 Part of the production is governed by market

laws, some firms are publicly owned
 Transition economy
 Economy which are in the phase of transition
from planned economy to an open-market
system
 Government stops interventing in many
spheres of country´s life
 Restitution, privatization, liberalization of
prices etc.
 What is a market?
 An economic area specializing in the exchange
of activities through an exchange of goods.

 Sellers x buyers  interaction (influence of

prices and quantities)
 Market functions
 Gives the answer – what, how and
for whom to produce

 Helps to allocate scare resources

 Types of market
 Market of products and servises.

 Market of factors of production (land,

capital goods and labour markets).

 Financial markets (money and capital

market).
 Competion
 Contest in the market by legal means:
- Lower production costs
- Higher quality
- Sale promotion

- Competion has a positive impact, e.g. Quality

improvements,upgrading of technical
paremeters
 Perfect competition
 - market situation, where there exists a
large numbers of sellers and buyers

 Products are close substitutes and are

replaceable

 No single firm is able to dominate the

market
 Imperfect competition
 At least one competitor is big and strong
enough to influence the market price
- Cost advantage – lower prices
- Barriers to competition – trademark, brand
name
- Insufficient information
- Administrative measuers, government
directives
 Monopoly
 Oposite of perfect competition
 Only one producer with various advantages
from such a position

 Monopoly power – to fix a price above the

marginal costs
 Monopsony
 Market with only one buyer

 The buyer has ability to influence the market

price
 Monopolistic competition
 Market with many producers

 Their product are differentiated – each of them

can set their own prices and their production is
kind of monopoly
 Tender
 Specific form of open competition
 Partners in tender submit proposal for contract
on certain products
 The purpose of tender is to obtain a larger
number of offers and the most suitable is
selected
 Trust and cartels
 Sometimes serious distortion of perfect
competition

 Based on agreement with the aim of gaining

competitive advantage over non-members

 OPEC- cartel dictating oil prices

 Enterprise, its objectives and functions
What is business?
- all the work involved in providing people with goods and
services for a profit

Profit
- is the money left over from all sums received from sales
after expenses, which have been deducted

Enterprise
- an independent subject, founded usually by entrepreneur on
purpose to achieve some profit, which is usually the main
objective of business