INTRODUCTION TO MANAGEMENT TOPIC 1. THE FIRM

Apuntes

INTRODUCTION TO MANAGEMENT TOPIC 1. THE FIRM 1.1. The nature of the firm 1.2. Types of firms 1.3. Ownership and management 1.4. Entrepreneurship 1.1. THE NATURE OF THE FIRM • Organization: a deliberate arrangement of people to accomplish some specific purpose (Robbins & Coulter 2021: p. 35). • Organizations have three common characteristics (Daft et al. 2020: p. 9; Robbins & Coulter 2021: p. 36): • Distinct purpose: An organization seeks to accomplish certain goals. • People: An organization is a social entity composed of people. • Deliberate structure: Tasks are divided and responsibility for their performance is assigned to organization members. • A firm is a profit-seeking organization that provides goods or services designed to satisfy customers’ needs by transforming lower-value inputs into higher-value outputs (Bovee & Thill 2020: p. 49): • Firms are affected by the environment, in which they operate. 2 1.1. THE NATURE OF THE FIRM • The functions of the firm (Montoro et al. 2020: 1.1.1): • The firm as an economic reality: Its function is to create value by transforming inputs (raw materials, resources) into higher-value outputs (products: goods and services). • The firms...