Trigger 4: The role of the government in economic growth

1. What are the different types of economies? (case studies)

According to Business Dictionary, economic system is "An organised way in which a state or a nation allocates it's resources and apportions goods and services in the national community"(Business Dictionary, 2017) There are at least four different economy types in the world; traditional economic system, command economic system, market economy system and mixed economy system.  Each an every one works differently. As a case study, I will introduce you to North-Korean economy system which is command economy system.

As North Korea is regarded as an unreformed, isolated, tightly controlled, dictatorial country, it is fairly obvious that they would be using command economy system. The government rather that the free market decides what goods should be produced, how much should be produced and also the price at which the goods are offered to sale. The command economy is a key feature of any communist society.

(Investopedia, Command Economy, Prateek Agarwal / Introduction to economics, The Four Types of Economies)

2. What are government policies for economic growth?

Government policies to increase economic growth are focused on trying to increase aggregate demand or increase aggregate supply/productivity. Demand side policies include fiscal policies which mean cutting taxes/increasing government spending and monetary policies which mean cutting interest rates. Supply side policies include privatisation, deregulation, tax cuts, free trade agreements (free market supply side policies) and improved education and training, improved infrastructure. (interventionist supply side policies.

(Tejvan Pettinger, Plocies for Economic Growth, 2017)

3. What are the methods to make a country attractive to FDI?

Trigger 6: Starting up a new business in Finland

1a. Types of company forms to open a business and their pro's and con's

Proprietorship (toiminimi)

This is the most popular way to start in business to operate as a private entrepreneur using a company name. It is often beneficial to start as a proprietorship for a part-time entrepreneurship since it's speedy and uncomplicated to start a business this way.

Partnership (avoin yhtiö) 

"A partnership is formed when two or more individuals agree to it by signing a partnership agreement." Partners have an equal part in the company's operations and are personally responsible for company decisions, liabilities and debts.

Limited partnership (kommandiittiyhtiö)

"A limited partnership differs from an ordinary partnership in that in addition to one or more accountable partners there is at least one sleeping partner, i.e. a participant in the company who generally acts as an investor."

Limited company (osakeyhtiö)

Limited company requires at least one individual or corporation. Limited company's minimum share capital is 2500€. The share capital is divided to shares and the shareholder's voting power, profit and liability depend on how many shares they own.

Cooperative association (osuuskunta)

"Cooperative association is company owned by its members." In the case of for example debts, The liability of the members for the cooperative association's obligations is limited to their investment of share capital.

http://www.infopankki.fi/en/living-in-finland/work-and-enterprise/starting-a-business/company-forms

1b. The legal quirements of accounting / documentation in different forms of business.

Proprietorship

Does not require a separate set of accounting records, since the owner is considered to be inseparable from the business. It could make sense to start with the most minimal accounting record keeping that is based on the cash flows into and out of a bank account. A single entry system is most suited to a  cash basis accounting system. 

https://www.accountingtools.com/articles/accounting-for-a-sole-proprietorship.html

Partnership

There are several distinct transactions associated with a partnership that are not found in any other type of a company form. These transactions are: Contribution on funds, contribution of other than funds, withdrawal of funds, withdrawal of assets, allocation of profit or loss and tax reporting. 

These transactions may first be recorded in a drawing account which balance is later shifted into the capital account.

https://www.accountingtools.com/articles/2017/5/5/partnership-accounting

Limited partnership

Profits or losses are to be shared among partners and the division should be clearly spelled in the writing of the legal document of a partnership agreement. Regarding taxes, each partner is responsible of his/hers own personal income tax for reporting income from the partnership.

http://smallbusiness.chron.com/accounting-limited-partnership-distribution-23566.html

Limited company

Limited companies have a legal responsibility to keep records about the company itself and financial and accounting records. There should be accounting records that include all money received and spent by the company, details of assets owned by the company, debts the company owes or is owed, stock the company owns at the end of the financial year, the stocktakings one used to work out the stock figure, all goods bought and sold, who you bought and sold them to and from (unless you run a retail business).

https://www.gov.uk/running-a-limited-company/company-and-accounting-records

Tigger 5

Trigger 3: How to create a structure of a growing company?

1. MANAGEMENT

What attributes define a successful manager?

This is a very large subject. The attributes that the manager decides to use are defined by the people (s)he is managing. Many books seem to have the same answers to this question, they're just addressed differently. There are still the main attributes and critical skills all managers should have. A successful manager performs the following skills with an ease:

• Builds effective and receptive interpersonal relationships
• Communicates effectively
• Builds the team
• Understands the financial aspect
• Knows how to create an environment with positive morale and recondition
• Leads by example and sets the pace via her expectations
• Helps people grow and develop
• Integrity
• Motivational skills
• Decision making skills
• Supports open communication

Every manager should know his/her employees, be able to recognise their skills and make them feel welcome and needed. Managers should give constructive feedback and by assigning the employees with a certain amount of authority they can take charge at the task in hand by themselves.

(Susan M. Heathfield, 2017)

(What makes a good manager)

2. STRUCTURE

What are different company structures?

"A business structure is a category of organization that is legally recognized in a given jurisdiction and characterized by the legal definition of that particular category." (Whatis, 2015)

Different businesses have different structures. Here are five common types. 

1. Sole Proprietorship: The most basic and easiest to understand. You are the owner and you're responsible for all that happens in the company.
2. Partnership: Two or more people carry on the business. Shared control and management of the business with the partners.
3. Corporation: An independent legal entity owned by shareholders. The corporation itself is held legally liable for the actions and debts the business incurs.
4. Limited Liability Company (LLC): Hybrid structure from partnership and corporation. "Owners" are referred to as "members" and there can be one or more members.
5. Cooperative: Owned by and operated for the benefits of those who use it. Profits and earnings are distributed among the members. Usually an elected board run the cooperative whileregural members have voting power to control the direction of the cooperative.

3. EMPLOYEES

How do companies motivate their employees? (case studies)

So a lot of companies have a yearly maternal leave, a sick leave or/and vacancies. But what I wanted to find was some unusual perks that would keep the employees of a company motivated and happy. The coolest one I could find was Airbnb. So Airbnb was chosen as "the best place to work in 2016" by the employees.(Forbes, 2015). 

They have a lot of cool and different benefits for their employees. So let's start listing:

1. $2000 for travelling a year. This is as cool as it sounds as Airbnb not only focuses on getting their employees out of the office but out of the city.
2. You can bring your pet to the office. 
3. Sailing together
4. A ping pong table
5. Weekly yoga classes
6. Get to eat organic lunches every day
7. Formal Friday. Dressing up for Formal Fridays and you get a moustache. How cool is that?

(Nancy Messieh, 2012)

Sources

What makes a good manager?: http://www.tsrt.info/id207.html

Susan M. Heathfield, 2017: 7 Tips for Effective Management Success: https://www.thebalance.com/tips-for-effective-management-success-1916728

Whatis, 2015, Business Structure: http://whatis.techtarget.com/definition/business-structure

Partnership, 2017: https://www.business.gov.au/Info/Plan-and-Start/Start-your-business/Business-structure/Business-structures-and-types/Partnership

5 Common Business Structures: Find the right one for your small business: https://smallbiztrends.com/2014/01/5-common-business-structures.html

Forbes, 2015, Best places to work in 2016: https://www.forbes.com/sites/kathryndill/2015/12/14/the-best-places-to-work-in-2016/#672cee01ceee

Nancy Messieh, 2012, 12 tech companies offering the coolest perks: https://thenextweb.com/insider/2012/04/09/12-startups-that-offer-their-employees-the-coolest-perks/#.tnw_RgnvGRZe

Trigger 2: How does a company adapt to market changes?

Market positioning

How does a company adapt to market changes?

As the market it ever changing, it's important to always know where the company position is. The company should understand their positioning to be able to properly compete their share. It's also very important to know what position competitors hold, so the company would be able to know witch fields in the market are free to fill. 

By developing a unique business idea the company should have a bigger chance to succeed in the market. To be able to adapt to market changes the company should know who their target customers are and what do they need. The company should also be able to grow when the market changes. 

Predicting

What methods does a company use to predict market changes?

A company should always be aware of the fact that markets change. How to predict the changes? 

1. Surveys for the customers to measure their interest in different kinds of products

Financial aspect

What is the financial aspect behind the market changes?

Less sales mean more expensive products. Also as the fact that we could 

Diversification

What is the role of diversification in changing markets?

Market positioning strategy guide: https://www.smartling.com/market-positioning-strategy/

Trigger 1: What makes us more employable?

Motivation

How to adapt motivation theories to be more employable.

The Two-Factor Theory of Motivation (motivation-hygiene theory)

Motivation Factors: 'Factors that lead to satisfaction and motivate employees to work harder.'

Hygiene Factors: 'These factors can lead to dissatisfaction and a lack of motivation if they're absent.'

"While motivator factors increased employee satisfaction and motivation, the absence of these factors didn't necessarily cause dissatisfaction. Likewise, the presence of hygiene factors didn't appear to increase satisfaction and motivation but their absence caused an increase in dissatisfaction."

(Contactzilla, 2014)

Social 

How can one manage life, balancing work and studies

To be able to balance work and studies you need to understand the importance of this factor in your life. 

There are many ways to balance work and study. I'll list the most important ones that I found by researching 

Be organised and have a plan

Create a flexible schedule

Prioritise and be realistic

Communicate

Avoid time waisting

Learn to manage stress

Innovation

How can one adapt to a fast paced world

"While a fast-paced environment can feel overwhelming at first, with a little practice, it can transition into an exhilarating and exciting place."(Chron)

Good tips:

Educate yourself

Know your role

Know your co-workers 

Prepare yourself 

Take breathers

Look for shortcuts

Opportunities after school

How important is the theoretical knowledge versus practical

Theoretical knowledge teaches you why. It can lead you to a deeper understanding of a concept through seeing it in context of a greater whole.

Practical knowledge teaches you how. It teaches you the understanding through doing and experiencing.

Contactzilla, 2104: https://contactzilla.com/blog/5-psychological-theories-motivation-increase-productivity/

https://www.kangan.edu.au/students/blog/best-ways-to-balance-work-and-study

Chron: http://work.chron.com/survive-fastpaced-environments-3491.html

http://vanseodesign.com/whatever/theoretical-practical-knowledge/