1. (Sun-Tzu) What is basis of all warfare? Why is this tactic pervasive in marketing?
Deception. Everything has a risk, marketing tries to hide that risk
2. (Sun-Tzu) What are the two military "virtues" which are not appropriate for governing a state? How are these virtues relevant to marketing?
Hobbling - Making an order without knowing the circumstances. Making direct orders.
Being to close to the army to make rational decisions.
3. Sun-Tzu discusses the use of both direct and indirect methods in warfare. Give examples of direct and indirect methods used in marketing.
Indirect is like products shown in movies, direct is a commercial
4. What are the marketing two stories which Cicero tells?
The story of the grain sells man going to the island selling his grain at a higher price when he knows there is more boats of grain on their way to the island. And the selling of the house not telling the defects of it.
5. (Cicero) What are the opposing arguments?
Cicero says "buyer beware" while his opponent Diogenes says that there should be complete honesty in the market place.
6. In each case, which side does Cicero take and why?
He is always on the marketing side. "buyer beware" claiming it is okay to not reveal up front, but let the customer inspect and my their own decision.
7. (Cicero) What makes these two cases fundamentally the same?
Both are asking a moral question. About an obligation to tell other people the defects.
8. (Cicero) In what important way are these two cases different?
If the house collapse, then it will hurt the people inside. Therefore the house example is more morally wrong. Where as in the grain example there is more grain on the way and no one is going starve.
9. What are the questions which Aquinas asks? What is the logic behind each of his positions?
Whether it is lawful to sell a product for more then it's worth?
Whether a sale is rendered unlawful through a fault in the thing sold?
Whether the seller is obligated to state the defects of a thing sold?
Whether in trading, it is lawful to sell a thing at a higher price then what was paid for it?
10. What view does Aquinas have of the worth of things which is significantly different from the modern view? How does he equivocate on his view?
Extrinsic value- Modern view of the market setting the price of a product.
Intrinsic value- is a fixed price, where the price is based off of law or God.
11. Where does Aquinas refer to Cicero? How does Aquinas? view differ from Cicero?s?
Aquinas refers to Cicero's grain example, He says that they must give the grain at a lower price or they are cheating.
12. What justifications does Aquinas provide in Article Four for selling a thing for a higher price than was paid for it?
Yes it is okay to sell retail as long as your selling at a higher price to provide for yourself and your family. Not to make excess profit.
13. How does Aquinas justify the profits of the trader?
It is the traders lively hood trading is lawful as long as he is not taking advantage of it. only making enough to sustain himself and his family.
14. Article Four, Objection 2, uses Aquinas? own conclusion from Article One as its basis. How does Aquinas respond to this? Is his response complete? What possible flaw does this reveal in his conclusion in Article One?
The difference between civil (buying for personal gain) and trading in that trading is necessary.
15. (Veblen) Explain pecuniary emulation and conspicuous consumption.
Pecuniary emulation is possession of things that make men superior to other men.
Conspicuous consumption is spending money lavishly.
16. What does Veblen believe is the origin of our acquisitive nature?
Ancient times, men having the best women.
17. In what way does Veblen's view of pecuniary emulation relate to Thoreau?
Men living lives of quite desperation by trying to keep up with each other.
18. (Veblen) How does conspicuous consumption differ from pecuniary emulation? How does conspicuous consumption impact the middle class?
Conspicuous consumption is spending money in excess, Where as pecuniary emulation is just pretending to have the money to spend. "Keeping up with the Jones" It sets the bar for the middle class.
19. What conditions/behaviors were noted in the movie "Titanic" which reflected Veblen's views on the leisure class?
Old and new money. Old money is like inheritance, power of a family name. New money is where people are getting rich by discovery and such.
20. What impact did Atwood think the middleman was having on the price of goods?
Distribution cost raises the price of goods.
21. (Atwood) What did he think was the solution to the problem?
He said there should be regulation of distribution so goods are moved shorter distances to make it more efficient. Therefore lowering prices.
22. (Atwood) Why was this solution not implemented?
Because that could create a monopoly over distribution.
23. Toward whom was Galbraith directing his comments?
24. What alternative perspective did Galbraith present?
Through marketing: supply creates demand. ----exogenous.
25. (Galbraith) In what two ways do producers work to get us to buy their products?
Refers to Veblen: Direct and indirect marketing.
26. For Galbraith, what is the benefit (if any) of product promotion?
Modern want creation.
27. (Galbraith) What does he mean by The Dependence Effect?
Producers convince us to want it, so we think we need it, so we buy it.
28. (Littleton) What were the conditions which led to the evolution of double-entry bookkeeping?
the art of writing private property money credit commerce capital
29. How did Littleton define credit? What did he mean by this?
an incomplete transaction. The customer has not paid in full. They owe you--- Credit.
30. (Littleton) Explain how changes in supply and demand were critical to the need for a system like double-entry.
supply and demand increased the size and extent of commerce when credit was used. There also needed to be a more flexible way of payment as commerce increased. Double- entry is a way to keep track of that flexibility.
31. According to Pacioli, what three criteria were essential to success in business?
Inventory, Disposition, and Bookkeeping
32. (Pacioli) What were the two principal parts of the treatise?
Inventory and Disposition
33. (Pacioli) What should be placed on the front of each book and what should be the first line in each book? Why were these things important?
the books title and year, they are important to be able to know what you owe and who owes you, and what was traded in the transaction
34. (Pacioli) What was the purpose of the Inventory?
to be able to know what you have, know your assets.
35. (Pacioli) What were the three books of the Disposition?
Memorandum, Journal, and Ledger (but memorandum and journal can be combined) Then you post things to the ledger.
36. (Pacioli) What was the purpose of the Memorandum?
Its an hour by hour log with full details of who, what, when, where of every transaction.
37. Why did Pacioli believe it was important to have the pages of each book numbered?
to prevent fraud, so people couldn't rip out a page of the book.
38. (Pacioli) What is the purpose of the journal?
39. (Pacioli) What is the purpose of the ledger?
Keeps track of all transactions of an individual account. Keeps account balances upto date.
40. (Pacioli) What is the Accounting Equation?
Assets + Liabilities = Equity or E= A--L
41. (Pacioli) Explain the relationship between the Accounting Equation and debits and credits.
Debits subtract from liabilities and equity but increase assets Credits increase equity and liabilities but decrease assets
42. (Pacioli) Why are there no negative numbers in the Journal?
because you are balancing your credits and debits not subtracting. ending in zero.
43. (Pacioli) What is the purpose of accounting in the modern business world?
To provide useful information to people who make decisions
44. (Pacioli) Explain the trade-off between relevance and reliability.
Information can be reliable but irrelevant to what you are trying to accomplish
45. (Defoe) What is the purpose of "casting up shop" What is this process known as today?
Closing the books, to see you balance at the end of the year.
46. (Defoe) What are two basic principles given by Defoe regarding the tradesman's books?
Everything done must be written down as soon as it happens neatly and organized, Don't ever sit down satisfied with an error.
47. (Defoe) What is the purpose of the story about the tradesman who could not read or write?
he was scallywagged because he couldnt keep track of his transactions
48. What example did Defoe give about the tradesman who only partially completed his books? What was the possible consequence of that tradesman's incomplete bookkeeping?
the shopkeeper didnt keep an updated ledger, he was scallywagged as well because he didnt know exactly what was owed to him.
49. What cautions did Defoe provide about accounting for cash?
keep track of it and tell you family so that they know where to find it if you die.
50. Why did Defoe believe it was so important to pay attention to the books even when the business was doing badly?
it keeps them in full knowledge of what they are doing and how things stand, can help them figure out where they are doing badly.
51. Why do you think Defoe compared good bookkeeping to good living?
it is the 2nd highest priority, if your books are in order then you dont have to worry about death.
52. What generally determines the value of money? Why was Polo surprised and amazed at the discovery of paper money in 13th China?
the reputation of the man/king producing money. There was nothing like paper money in europe.
53. (Maimonides) Why was usury considered "nesek"
Because your are inflicting pain or harm by charging interest. "nesek" means biting.
54. (Maimonides) Why it is forbidden to charge interest to your brother? To lend with interest? To act as an intermediary?
its a sin according to Deut. 23:20, you break six commandments when you commit usury. Jews are affirmatively commanded to lend with interest to a heathen.
55. Why did Maimonides create such complex rules?
because he has to follow the commandments while trying to control usury.
56. (Maimonides) Under what conditions is it acceptable to receive more in return than the amount loaned?
if its a gift.
57. Why does Maimonides require Israelites to charge interest to non-Israelites (i.e., heathens)?
they are affirmitively commanded to in Deut. 23:21
58. What restrictions does Maimonides place on Israelites lending to heathens?
not to over-charge usury
59. What issues does Maimonides raise regarding joint ventures?
profit shares and labor shares
60. (Maimonides) What is the ultimate objective of all these rules?
how to deal with usury in a godly manner.
61. (Aquinas) What is the primary objection to lending with usury (Reply Obj. 2)?
That everyone is your brother and you cannot inflict pain an anyone.
62. What further argument does Aquinas develop to make usury a sin? Why?
Money has a consumption use and you dont charge usury on things with a consumption use, for example bread and milk.
63. (Aquinas) What lawful form can usury take?
You can take things that can cannot be measured in money like love and emotion.
64. (Aquinas) Under what conditions must a man return profits made from money gotten by usury?
When the usury is used to make a profit, the profit must go back to the payer of the usury as well as the usury given back to the payer.
65. (Aquinas) Under what conditions is it acceptable to borrow under a condition of usury? What was the effect of this practice on economic behavior in medieval Europe?
you may borrow for a good end with a good reason. The two religous philosophies of jews and christians come together. Jews are the bankers who can led with interest to those who are willing to pay interest but only if it leads to a good end and reason.
66. What was Bacon's attitude towards usury? What did he believe was the best way to deal with it?
It is a necesary evil. There must be lending and borrowing for distrobution of wealth for the economy, there must be laws to regulate usury so people dont rage out of control.
67. (Bacon) What did he identify as the primary advantages and disadvantages of usury?
Circulates wealth, but slows down business expansion.
68. (Mackey) What is the story of Tulipomania?
There was an amazing demand for tulip bulbs in the 17th century.
69. (Mackey) Who were the stock-jobbers and what part did they play in the mania?
They caused a stock fluctuation of tulip bulbs and made it possible to make money off the tulip bulbs by inflating mania.
70. (Mackey) What the result of the tulipomania?
The tulip bulb market crashed and people lost confidence in the market resulting in the prices dropping further. (being even further driven down)
71. (Mackey) Name similar examples of "bubbles" in more recent times.
The housing market, and the Internet bubble.
72. What are the three elements of profit according to Mill? At a given point in time and place, which element is certain and which are variable?
Interest, Insurance, Wage. Wage is variable, interest and insurance fixed.
73. (Mill) What would happen if ventures with equivalent risk and effort offered different expectations of profit?
Eliminate compitition because people are greedy, so everyone would choose the one that is expected to make more profit.
74. What determines the amount of profit according to Mill?
The amount of risk.
75. (Mill) What do prices have to do with profit?
higher price = more profit. recieving part of profit for contribution = work
76. Why does Mill state that even if there were no division of employment, there would still be profit? What does division of employment mean?
_______division of employment means breaking up the production line into specific jobs.
77. What is the nature of the struggle which Carnegie addresses? What does he think the parties are fighting about?
______the parties are fighting over money
78. (Carnegie) Under what circumstances does the struggle generally occur?
79. (Carnegie) What is his "first place" solution? Why won't it work?
The ideal solution is Co-Operation, a plan where workers become part owners. it won't work because people are not all born equal nor do they have equal abilities, some are more capable than others.
80. (Carnegie) What is the next best alternative? Why won't it work?
Arbitration, this won't work because there are no qualified people to be arbitrators becase they will be bias to one side.
81. What does Carnegie state is the real essence of the trouble? What is his solution? What does this solution really do?
The essence of trouble is that they are fighting over money, the solution is that we should pay on a sliding scale in proportion to the net revenue. this really ends up fixing the profit and giving the risk to the workers and the workers dont want risk.
82. (Tawney) What management techniques were historically used to get things done? How well they work?
We motivated people through fear, it got the job done but was not the most efficient motivator.
83. (Tawney) What was the problem in the coal industry which prompted Tawney to write his critique? Who was adversely affected by this problem?
Failure to organize industry, creating a restriction of the output.
84. (Tawney) What changes were taking place which forced capitalists to change their management techniques?
Managers feared that employees would take over.
85. According to Tawney, where should managers focus to increase efficiency? To what natural phenomenon does Tawney draw an analogy?
To focus on satisfying people physiological and safety needs to motivate them to work harder and be more efficient.
86. (Tawney) What role do monetary incentives play in motivation?
Money only goes so far before they have to fill the rest of the needs in the triangle of needs. (Maslow's hierarchy of needs)
87. (McGregor) What is Theory X? Why does he use the "X" to designate this theory? What is management's job under Theory X?
Theory "X" is management by control. Also known as getting things done through other people. Management's, under this theory, is responsible for organizing people and keeping efficiency. He uses the term X so that there are no other words that can be related to a name.
88. (McGregor) Why do people behave as Theory X predicts?
Theory "x" says people are inherently lazy and lack ambition and responsibility. He claims people are not naturally this way, they are this way as a result of our industrial organization. Workers do what they are told because that is their job, it is managements policy's and practices that condition people to stay in their place.
89. (McGregor) Explain Maslow's hierarchy of needs. What perspective does McGregor provide regarding motivational techniques based on the hierarchy?
The Hierarchy of is the triangle of the order on which we fulfill our needs, starting at Physiological ^ Safety ^ Social ^ Ego ^ and Self realization. There needs to be opportunities at work to fulfill the higher needs, that motivates people after their lower needs are satisfied. Keeping up efficiency.
90. (McGregor) What is Theory Y? How does it differ from Theory X? What is management?s job under Theory Y?
Theory "Y" is management by objectives. Where people are not assumed to be lazy. Management's job under theory Y is to organize people to provide resources to give responsibility to workers, this motivates their social and ego needs.
91. (McGregor) What is the difference between centralization and decentralization? Which corresponds to Theory X? Theory Y?
Centralization is controlling the work environment corresponding to Theory X, While Decentralization gives workers freedom to fulfill social and ego needs corresponding with Theory Y.
92. (Taylor) What is the fundamental idea of scientific management? In what ways did Henry Ford use the principles of scientific management?
It is a mental revolution, Increase efficiency to make more surplus profit, by using labor saving devices.
93. (Taylor) Why were the principles of scientific management effective at the time they were introduced but not as effective today?
People will fight over the excess surplus.
94. What kind of mass production systems did Polo find in 13th century China?
95. (Polo) Contrast production in 13th century China with production in 13th century Europe?
In Europe only the upper class had craftsmen, everyone provided most things for themselves with little to no trade, While in China they had a mass production system, in which each city to specialize in producing a commodity, allowing for trade to be huge.
96. (Polo) What are the four factors necessary for an effective mass production system
1. Specialization 2. Division of labor 3. Education 4. Long term planning
97. (Polo) What are the positive consequences of mass production?
More trade, More product, Cheaper prices.
98. (Hamilton) What was the purpose of Hamilton's essay? Who asked him to write it?
He wrote it for the House of Representatives, To provide an economic assesment of manufacturing in the U.S., how to free the U.S of dependency of production of foreign nations.
99. (Hamilton) What were the basic economic arguments against manufacturing in the United States in 1790? What was the non-economic argument made by people like Thomas Jefferson?
U.S. has plenty of fertile land and a natural advantage in agriculture. If we were 50% farmers and 50% manufacturers we are only 50% virtuous. Hamilton is for manufacturing, Jefferson is for agriculture.
100. What arguments were made to suggest that agriculture was superior to manufacturing in its productiveness? How did Hamilton Respond to these Arguments?
Agriculture was said to be more productive because it's overall revenue was higher, but what they didn't take into account for the productiveness in manufacturing was bank loans, then they come out equal. Agriculture takes less upfront capital, but manufacturing needs bank loans and interest, so they are equally productive.
101. What did Hamilton believe about the relative productiveness of agriculture and manufacturing?
Because man and nature are working together. Nature doesn't always cooperate with man.
102. (Tocqueville)Why does democracy lead to the existence of mass production systems?
It assist in production by allowing business to do whatever it wants to do.
103. (Tocqueville) What characteristic of mass production leads to a separation into classes?
Production creates a middle class, creating a greater separation between rich and poor, there are more diverse social classes.
104. (Tocqueville) What is the nature of the people in the two classes?
workman, brute strength and no intelligence
master, science and almost genius
105. Why does de Tocqueville describe the owners of manufacturing firms as a new aristocracy?
Because owners of manufacturing firms now have enough power to influence the government.
106. (Tocqueville) In what ways is this manufacturing aristocracy different from the aristocracy of old
employees dont protect employers and dont recieve protection, employees can choose to quite and find another job, they dont live together, employees are independent. ----Diversity, Separation, Independence.
107. What is Tocqueville's final opinion regarding the consequence of the emergence of this new aristocracy?
it is harsh because things can change quickly but benificial because employees have option and can do what is best for them.
108. What is the focus of Ford's business philosophy?
109. What does Ford think of the average man?
Incompitant and incapable of surviving on their own
110. How does Ford change the workplace, particularly regarding the use of skilled labor?
He turns people into efficient little robots. They dont need skilled labor, they just teach people the movement. The machines do the work, they just do enough to pay the overhead.
111. What are Ford's basic production principles?
1. Trim distance of movement.
2. use gravity and keep things confined.
3. Use of sliding assembly line.
112. Explain how Ford used scientific management.What did he say about the tradeoff between quality and efficiency.
By trial and error he found the perfect speed and hight for an assembly line. To fast you gain quantity but loose quality to slow you loose quantity but gain quality. Finding the equilibrium between quality and efficiency.
113. What did Ford think about “experts”
there is no need for them, they aren't willing to try new things because they already know everything. They end up setting limitations.
What does Kris Kringle do that creates such an uproar?
Sends people to other stores
What is the publics response to Kris's behavior?
They love him and think Macy's is an honest store.
How does Mr. Macy respond?
He loves the new public relations and creates a new store policy of honesty and finding what people what even if they have to send them to another store.
Modern Times: What management styles were observed in the president? line of supervisors?
Theory X- controlling
Modern Times: What was the consequence of increasing the speed of the assembly line?
Modern Times: What didi the other workers do when Charlie kept restarting the line?
They went back to work.
Modern Times: What was the nature of the work at the factory? Which authors would seem to be supportive of the conditions? Which would be opposed? Why?
Robotic working conditions. Supportive: Ford, Hamilton
Aquinas wrote ....?
1. Of Cheating, Which is Committed in Buying and Selling.
2. Of the Sins of Usury
The Theory of the Leisure Class
Atwood wrote ..?
The Dependence Effect
The Antecedents of Double entry Bookkeeping
Ancient Double Entry Bookkeeping
Danile Defoe wrote...?
The Compleat English Tradesman
Polo wrote ..?
From the Travels of Macro Polo
Maimonides wrote ....?
The Book of Civil Laws
Bacon wrote ...?
Mackey wrote ... ?
Carnegie wrote ...?
An Employers View of the Labor Question
The Condition of Efficiency from the Acquisitive Society
The Human Side of Enterprise
Principals of Scientific Managements
De Tocqueville wrote...?
That Aristocracy May Be Engendered By Manufactures
My Life and Work
The basis of all warfare.
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