Some commonly mentioned soft skills would include, among others: creativity, teamwork, written and verbal communication, management and leadership, flexibility, and organization.  

Written by: Prof. Temmy 

Soft Skills (Human Resources (HR)) When thinking about careers, professional advancement, or even job-hunting, we usually emphasize so-called “hard skills,” meaning skills that are directly connected to our ability to perform a particular task or do a certain job. These skills can be evaluated or measured, as they are the result of degrees, certificates, specialized knowledge, seminars, continuing education, vocational training, and so on. 

“Soft skills,” on the other hand, are more difficult to measure or quantify, as they usually do not come from a degree or specialized training, but from life experience, personality, and attitude. They are often called “people skills,” as they typically relate, in some form, to how we deal with or interact with other people. For example: Are we able to motivate and lead people? Can we communicate well with others? 

Some commonly mentioned soft skills would include, among others: creativity, teamwork, written and verbal communication, management and leadership, flexibility, and organization. These types of skills are important, as they help to form a well-rounded person and employee. They can provide a competitive edge in a job search. Soft skills are relevant to just about every industry or job, because people are always key, in one way or another.  

For both a job seeker and an employer, these are so-called “transferable skills,” and are highly sought after. The employee can utilize these soft skills across various jobs or settings, and this is a plus for employers, which look favourably at adaptability and strong interpersonal skills.  

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The United States, for example has the largest GDP in the world, thanks to its free-market and large population. 

Written by: Prof. Temmy  

Gross Domestic Product (GDP), or the measure of all the products made, services offered, and business conducted in a country over a set period, is another one of those business terms that’s frequently referenced but seldom understood. Once again, GDP is simply a calculation of the business that’s taken place in a country annually. The United States, for example, has the largest GDP in the world, thanks to its free-market and large population; other nations have solid GDPs as well, and the exact number usually corresponds to its country’s economic system, development, natural resources, education, and more. 

Similarly, the process of calculating GDP is simple and straightforward. GDP is comprised of “private consumption total investments government investments government spending the value of exports minus imports.” In other words, gross domestic product, which is once again the measure of all the business that’s taken place in a country over a while, is determined by adding together money spent on private consumption, personal investments, government investments, government spending, and the value of exports (minus imports, so that the total reflects the trade agreements that give money to the country at-hand). 

Lastly, nominal GDP refers to a specific year’s gross domestic product purely in terms of production, while real GDP accounts for inflation, and is typically consulted by economists attempting to contrast a country’s current output with those of the past. 

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Utility, or the state of being useful, falls under this category; many highly intelligent business students understand that market trends result directly from supply and demand, but other wonders why exactly there is demand in the first place. 

Written by: Prof. Temmy  

In today’s information-driven settings, it’s not difficult for students of business and economics to become experts, while not fully understanding more basic matters; and when they try to learn these basics, students are often embarrassed because they aren’t already familiar with them. 

Utility, or the state of being useful, falls under this category; many highly intelligent business students understand that market trends result directly from supply and demand, but other wonders why exactly there is demand in the first place. 

The explanation is straightforward: demand, or the desire of consumers to own a certain product or receive a certain service, exists because these goods and services provide customers with advantages or other fulfilment. 

In short, demand exists because people naturally want to buy things that improve their quality of life! Demand has existed and will always exist; even if everyone gave up their hobbies, made their food, and lived simply, they would still “demand” sharp axes to cut wood, big stoves to cook with, strong materials to build with, and so on. 

     In conclusion, demand exists because of the universal human desire to be comfortable, well-off, and content. This is the utility of goods and services, and this is why the overall business cycle will never be completely reinvented; its origin is rooted in human interest.  

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“As the world, the population has grown, central banks, or the institutions tasked with managing countries’ economies, have responded to this growth by minting, or officially creating and releasing, more money”. 

Written by: Prof. Temmy 

 Anyone who has ever wondered why today’s prices are so much higher than those of 100, 50, and even 25 years ago has considered the effects of inflation, or the decrease in value relative to overall quantity and production. 

To explain this definition, let’s consider why today’s prices are higher than those of the past. As the world, the population has grown, central banks, or the institutions tasked with managing countries’ economies, have responded to this growth by minting, or officially creating and releasing, more money. Their reasoning for this course of action is that not having enough money in circulation could lead to panic or economic downturns that are usually accompanied by anxiety over the currency. 

So, to reduce the chances of panic and assure that today’s citizens have access to physical money, central banks release more dollar bills and coins regularly, based on a pre-planned schedule. As the additional currency comes into circulation, its value has decreased; this is the process of inflation. 

To better understand the idea of inflation, consider the following example: if children that enjoy trading marbles implement a value system where red marbles are fairly common, grey marbles are rarer, and green marbles are the rarest because there are more and of the first type, fewer of the second type, and fewer of the third type, the system will be stable until more marbles enter into circulation. Thus, by tripling the number of marbles in circulation they will all become significantly less valuable. 

    What this means for consumers is that the money that they earn is worthless over time, and essentially, even though their wages might increase in amount, they will have a lesser purchasing power or a measure of how many goods and/or services they can be exchanged for. 

Lastly, deflation is the process of a currency becoming more valuable due to a tight production schedule. If there was less currency around today, each dollar would be worth more—just as was the case many years ago, when some products could be purchased for pennies! 

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Like many business ideas, competition is best explained through an example. Imagine that a company opens a profitable retail location and sells bread at an enormous profit. 

Written by: Prof. Temmy   

   Customers might not think about competition when they’re walking through the grocery store or making an online purchase, but it happens to be a cornerstone of a business and the free economy that impacts every single thing that’s bought and sold. Technically, the competition consists of the cumulative force of actions taken by companies that are designed to improve their market standing, sales, and ultimately, profits. But really, competition is simply what allows businesses to try and get ahead of each other, and consumers to get the best possible value. 

Like many business ideas, competition is best explained through an example. Imagine that a company opens a profitable retail location and sells bread at an enormous profit. After another company notices all the profits that are being made through bread sales in this neighbourhood, they may open a store of their own and undercut the competition, or sell similar items or services for lower prices. The first company may respond by lowering their prices (so they sell more bread to their former customers, who’re presumably buying the cheaper bread), and the result is much cheaper bread for consumers. In this way, businesses going head-to-head benefit customers. 

         Reverse competition, or the tendency of some businesses to purchase items that are being sold below market value (or the price that an item can reasonably be expected to sell for) and reprice them, is also a business practice that’s worth considering. Imagine that a bread company, to limit the success of other businesses, sells their bread that’s worth five dollars per loaf elsewhere for one dollar per loaf. Instead of being pushed out of the market, a competing business could recognize the discrepancy between the bread’s value and its sale price, and then proceed to purchase all the first company’s bread for one dollar and resell it for two dollars with their label. 

     The effects of not having competition, in a particular professional sphere or an entire economy, are devastating to consumers and the well-being of citizens generally. Consider the example of railroad companies in Europe and America a couple of centuries back that owned a multitude of tracks and land; essentially no other companies existed to create competition (because the major railroad companies bought all the land and kept others from doing so), and they were able to charge whatever high prices they wanted. This described scenario is an example of a monopoly, or a situation when one company has complete control over the industry and its prices due to a lack of competition. 

     Lastly, an oligopoly is a style of competition wherein businesses are small in number and coordinate with each other to raise prices—thus making goods and services more expensive for consumers. Modern-day examples of oligopolies are satellite television and internet services, which, although they cost companies very little to provide, are billed to consumers for sizable sums. Thus, something of a general understanding has been reached by leading internet and television companies, as they would make far less money if they competed vigorously. 

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In short, supply and demand refer to the force of consumers (or how much customers want or need to buy something) concerning the available supply (or how much of something companies can sell).  

Written by: Prof. Temmy  

In the business world, it’s common to hear and see references to supply and demand. With that said, few individuals possess a thorough understanding of the idea and its wide-ranging impact on markets, prices, and consumers. In short, supply and demand refer to the force of consumers (or how much customers want or need to buy something) concerning the available supply (or how much of something companies can sell). Generally speaking, high demand results in limited supply and increased prices, and low demand results in ample supply and decreased prices.  

 This latter phenomenon – the correlation between supply and demand and prices -might sound confusing at first, but it’s rather simple. When there isn’t enough of something available for sale to satisfy demand (or so that everyone who wants this “something” can simply purchase it), manufacturers, or businesses that produce a product or products, charge more; they can do so because they aren’t faced with competition (as whatever they’re selling is in demand and presumably not offered by many other businesses), and customers are willing to pay more to secure said product. Inversely, if something is available in abundance, companies will have to contend with competition or actions taken by a company that are designed to improve its market standing, sales, and ultimately, profits. 

     An example will make the concept of supply and demand entirely clear. Imagine that a company creates a fantastic video game system that many customers want to buy. Demand will build both naturally and as the product isn’t available to buy (this marketing technique is utilized by many companies today; not being able to purchase something seems to create consumer buzz), and if the supply doesn’t increase to give every willing customer a system, prices will rise. In other words, if customers have no other way to buy the system than through its manufacturer, and are having a hard time finding the system to buy, they’ll be willing to pay more to buy it. 

     On the other side of the coin, a product that’s not proprietary is widely accessible, and can be sold by any company – pasta, for instance – will be manufactured, marketed, and sold by some businesses. One company might sell a box of pasta for $10, and another company could respond to this price by selling their pasta for six dollars, and another company could sell their pasta for four dollars, and so forth until the price has been driven down to a very affordable rate. Demand won’t be particularly high in this scenario, as there will be plenty of the product at hand to go around. Moreover, demand comes before the competition; if demand is relatively low because supply is high, prices will fall and some degree of competition will occur. 

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RESPONDING TO SERIOUS CUSTOMER COMPLAINTS
Written by: Prof. Temmy 

It’s been explained in previous lessons that responding to customer complaints, or specific issues voiced by clients concerning a transaction is far from easy, and is widely believed to be one of the most exhausting parts of the business process. The difficulty doesn’t end there, however, as serious customer complaints, or complaints that require ample effort and careful manoeuvring to successfully resolve, are somewhat common. 

Generally, serious customer complaints refer to issues that cannot quickly be fixed—or even gauged. For example, if a customer’s order is damaged in the mail, his or her complaint is likely to be straightforward; a replacement item, discount, refund, or some combination of these things can be provided. But, if a customer complains about a product being “not good,” and about customer support being “really bad,” a resolution becomes much harder to achieve. 

As most serious customer complaints take place over the phone, let’s review some business call dialogue that’s indicative of similar real-life conversations:  

Customer support: This is Lotter Video Games; how can I help you? 

Customer: Whom am I talking to? 

Customer support: My name is Michael and you’ve contacted Lotter Video Games. I’d be happy to assist you. 

Customer: Great. Let’s hope you can help. I’ve called here ten times and nobody’s been any help at all. 

Customer support: I’m sorry to hear that; we take pride in our customer service here at Lotter Video Games. Would you mind providing the names of the support representatives you spoke with? I’d like to look into the situation for you. 

Customer: Never mind it. I emailed too and had the same problem. It’s all your representatives—they’re all bad. Your customer support is terrible. Anyway, I’m calling about a game I bought from you. It sucks and I want my money back. 

Customer support: I’m sorry to hear that. Do you have your receipt? We accept returns on used items up to thirty days after— 

Customer: I bought it new and I want my money back. 

Customer support: I’m sorry sir, but we don’t accept returns on new games if they’ve been opened. 

Customer: That’s some way to treat your customers! I want a refund! 

Customer support: I’m sorry sir, but I cannot offer you a refund. What I can offer you is a coupon for a used game, so you can find a title that better suits your needs, pay less, and can return the game if you don’t like it. Additionally, I should mention that we do accept trade-ins, and you can 

receive some money for the game you purchased. 

Customer: You do? Why didn’t you tell me that? And what’s this coupon? 

Customer support: The coupon is good for five dollars off any used game priced nine dollars or higher (more). 

Customer: All right, I guess that’ll work. Email it to me, all right? 

Customer support: I’d be happy to. 

The trick to resolving serious customer complaints is to remain calm and respectful in the face of likely ridiculous demands. Additionally, one must find a way to work around these complaints, as their solutions aren’t as clear-cut as those of traditional order issues. Resolving serious customer complaints is challenging, but true business aficionados can pull it off. 

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Business cycles refer to the periods of various success, struggle, and medium-quality profits encountered by companies in the normal course of the economy. 

Written by: Prof. Temmy  

     It might seem somewhat random when the economy encounters a downturn, companies struggle and prices rise, but the process is the direct result of some specific factors, including business cycles. Business cycles refer to the periods of various success, struggle, and medium-quality profits encountered by companies in the normal course of the economy; these periods affect every individual. In other words, businesses may offer a service at an affordable price at one point in time and fail to become profitable, but may then see this same service bring in tons of cash at a later point; the difference is not the business, but the economy. 

        When the economy is ‘‘good” – something that’s characterized by low unemployment, low inflation, rising wages, and more – most businesses experience a boom or an increase in profits and success. There are once again a variety of factors that contribute to booms (some of which are uncontrollable), but the short explanation of the occurrences is that when people have more money to spend, businesses have more money to make.  

Similarly, businesses experience a bust, or a decrease in profits and success, when the economy falters. For most people, a sagging economy means it might be hard to find work and pay bills; for businesses, a sagging economy means it might be difficult to stay in operation.  

        Business contractions, or normal periods of reduction in business after prolonged growth, occur regularly and vary in severity. Eventually, employers will require a smaller amount of help because consumers are purchasing less (after all, almost nobody buys new and expensive things all the time), unemployment will accordingly increase; wages will fall, and so forth.   

    Recessions, or multi-month-long declines in wages, general economic activity, and most importantly, GDP, are more serious than business contractions. Recessions last longer than business contractions, can be more severe, and can signal larger problems in the economy. 

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Personal loans are loans issued and approved by financial experts that have been designed to be used by customers for specific purposes. 

Written by: Prof. Temmy  

Banks are financial institutions that provide customers with a variety of valuable services, including the ability to wire money to a person or company, the ability to store money in a checking or savings account, the ability to collect interest on investments, the ability to receive loans, and much more. 

Banks are most commonly used by customers who wish to store their money and access it as needed, with a debit card (a card that is simply attached to the funds in one’s account), or checks (individually numbered paper slips that can be used to designate a transfer of funds). Checking and savings accounts are the primary means of storing money in a bank; a checking account is designed to house money that will be spent, while a savings account is designed to house money that will be saved. Banks usually pay a small amount of interest, or a payment in the form of a percentage of a customer’s deposited balance, to customers. This is their way of showing support for clients who entrust them with their money. 

These funds are then used by banks, along with their credit, to perform 

other functions and offer additional services. For example, many customers use banks to secure home mortgages or multiyear loans through which home ownership (or equity) is achieved.  

Customers demonstrate that they’re able to pay a mortgage back (usually by providing proof of income and investments, in addition to a down payment, or a lump sum paid upfront), and select a period for this mortgage; short mortgage payment periods require larger monthly payments, but customers are charged less interest, while longer mortgage payment periods require smaller monthly payments, but customers are charged more interest. 

     Lastly, many banking customers request a personal loan. Personal loans are loans issued and approved by financial experts that have been designed to be used by customers for specific purposes. For example, one may secure a personal loan for a business plan or an automobile. Personal loans, like home mortgages, are issued based on a customer’s ability to repay the borrowed sum; banks also charge a small amount of interest, meaning, in this case, a percentage of the borrowed money, besides its core balance. 

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