Future growth papers

1. Future growth papers

3. Writing style The lede (first sentence or graf) is the most important thing you will write. Grab the reader into your essay, make them want to read what follows. Get this right and the rest will flow.

4. Writing style Companies are always an “it,” not a “they.” “Starbucks has increased its sales by 29 percent thanks to customers such as Sophie.”

5. Writing style Two adjectives before a noun get a hyphen: “The triple-mint Fender guitar is a bargain at $149,999.”

6. Writing style Two adjectives before a noun get a hyphen: “The triple-mint Fender guitar is a bargain at $149,999.” Use of numerals, a general rule: one through nine, spell out. 10and above, use numbers. “The five dogs coughed up 32 hairballs.” Does not apply to money!!!

7. Writing style How to properly write about money: $3.5 billion… not three billion five hundred million dollars or some combo $27 $144 million $.50

8. Writing style Sales: all revenues from sale of product and services Profits: that which remains after the cost of the products and other expenses are deducted. Profits are also often expressed as “income” in business writing

9. Few more style things Etc. Generally, don’t use in your papers.

10. Few more style things Etc. Generally, don’t use in your papers. “More than” vs “over” Proper to use “more than” when you mean greater. “She has more than 240 posters of One Direction.”

11. And one last style thingie Like vs such as They are not the same! It’s proper to say: “Spencer own several exotic cars such as the Ferrari Enzo and the Lamborghini Aventador.”

13. Big Business and Government

14. Corporations An organization with limited legal liability so that individual owners are not personally liable for its financial obligations

15. Corporations An organization with limited legal liability so that individual owners are not personally liable for its financial obligations Johnson & Johnson has 2.77 billion shares. Mr. and Mrs. G are proud owners!

16. Corporations An organization with limited legal liability so that individual owners are not personally liable for its financial obligations Johnson & Johnson has 2.77 billion shares. Mr. and Mrs. G are proud owners! What is important that corporations can do big things that individuals couldn’t handle… and economy benefits from efficiencies… economies of scale

17. Who runs corporations?

18. And they report to a board

19. What do they make? CEOs of 500 largest companies averaged $10.5 million in 2012 Includes salary (small), bonus (big) and stock options (bigger)

20. What do they make? CEOs of 500 largest companies averaged $10.5 million in 2012 Includes salary (small), bonus (big) and stock options (bigger) Starbucks’ Schultz made $28.9 million… that’s a latte

22. Key point to remember Not all, or maybe even most, big business are proponents of free markets Adam Smith excoriated big business because he know its propensity to limit competition

23. Non-profit organizations We have thousands of non-for-profit organizations in the U.S. Ranges from local churches to National Geographic

24. Non-profit organizations We have thousands of non-for-profit organizations in the U.S. Ranges from local churches to National Geographic Doesn’t mean they don’t make a profit or pay well: prez of University of Chicago makes $3.4 million

25. Non-profit organizations We have thousands of non-for-profit organizations in the U.S. Ranges from local churches to National Geographic Doesn’t mean they don’t make a profit or pay well: prez of University of Chicago makes $3.4 million They compete with private businesses: YMCA vs local fitness clubs

26. What is a monopoly?

27. What is a monopoly? • Monopoly: one seller. Examples, old regional phone companies, Alcoa in old days, railroads in old days. Could even by a tiny store if it’s the only one around... i.e., daboyz ‘nade stand (for a fleeting moment)

28. Monopolies Monopoly causes harm not just by charging prices higher than they would be with competition, it also affects the total wealth of an economy

29. Monopolies Monopoly causes harm not just by charging prices higher than they would be with competition, it also affects the total wealth of an economy Monopolies cause consumers to buy less at the higher price and cause inefficient use of scare resources that have alternative uses

30. Monopolies Monopoly causes harm not just by charging prices higher than they would be with competition, it also affects the total wealth of an economy Monopolies cause consumers to buy less at the higher price and cause inefficient use of scare resources that have alternative uses Luckily, monopolies are almost impossible to maintain without government protection

31. More on Monopolies But they do exist: just take a taxi in New York… or try to, especially in the theater district on a rainy night at 11 p.m.

32. More on Monopolies But they do exist: just take a taxi in New York… or try to, especially in the theater district on a rainy night at 11 p.m. If cabs and drivers were freely allowed to compete, fares would come down and there would be more prosperity

33. Monopolies “Most big businesses are not monopolies and not all monopolies are big businesses.”

34. What’s an oligopoly?

35. What’s an oligopoly? Oligopoly: a small number of sellers who may cooperate with one another in setting prices; can produce results similar to a monopoly

36. What’s an oligopoly? Oligopoly: a small number of sellers who may cooperate with one another in setting prices; can produce results similar to a monopoly Examples: Four companies have 94% of U.S. wireless market (AT&T, Verizon, Sprint, T-Mobile)… although no evidence they collude

37. What’s an oligopoly? Oligopoly: a small number of sellers who may cooperate with one another in setting prices; can produce results similar to a monopoly Examples: Four companies have 94% of U.S. wireless market (AT&T, Verizon, Sprint, T-Mobile)… although no evidence they collude Usually defined by having xx% of market share

40. What’s a cartel?

41. What’s a cartel? Cartel: an international syndicate, combine or trust formed specifically to regulate prices and output in some field of business

42. What’s a cartel? Cartel: an international syndicate, combine or trust formed specifically to regulate prices and output in some field of business OPEC (Organization of Petroleum Exporting Countries) is the classic cartel

43. What’s a cartel? Cartel: an international syndicate, combine or trust formed specifically to regulate prices and output in some field of business OPEC (Organization of Petroleum Exporting Countries) is the classic cartel But even OPEC cannot control oil prices... consumers respond to higher prices, OPEC members cheat, alternate fuels, technology such as fracking and the Prius

44. Anti-Trust Laws

45. Anti-Trust Laws Some huge biz organizations were known as trusts, hence “anti-trust” laws passed by governments

46. Anti-Trust Laws Some huge biz organizations were known as trusts, hence “anti-trust” laws passed by governments Intent was to prevent monopolies and cartels from artificially raising prices

47. Anti-Trust Laws Some huge biz organizations were known as trusts, hence “anti-trust” laws passed by governments Intent was to prevent monopolies and cartels from artificially raising prices Sherman Anti-Trust Act of 1890:

48. Sherman Anti-Trust Sherman: Not specifically intended to prevent the dominance of an industry by a specific company. Any company that "got the whole business because nobody could do it as well as he could" would not be in violation of the act.

49. Sherman Anti-Trust The law attempts to prevent the artificial raising of prices by restriction of trade or supply. In other words, innocent monopoly is perfectly legal, but acts by a monopolist to artificially preserve its status, or nefarious dealings to create a monopoly, are not.

50. Anti-Trust Laws, Take 2 However, we always look at ________ not intent