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Wiki	Wiki Summary
Preference	In psychology, economics and philosophy, preference is a technical term usually used in relation to choosing between alternatives. For example, someone prefers A over B if they would rather choose A than B. Preferences are central to decision theory because of this relation to behavior.
Revealed preference	Revealed preference theory, pioneered by economist Paul Anthony Samuelson in 1938, is a method of analyzing choices made by individuals, mostly used for comparing the influence of policies on consumer behavior. Revealed preference models assume that the preferences of consumers can be revealed by their purchasing habits.
Monotone preferences	In economics, an agent's preferences are said to be weakly monotonic if, given a consumption bundle \n \n \n \n x\n \n \n {\displaystyle x}\n , the agent prefers all consumption bundles \n \n \n \n y\n \n \n {\displaystyle y}\n that have more of all goods. That is, \n \n \n \n y\n ≫\n x\n \n \n {\displaystyle y\gg x}\n implies \n \n \n \n y\n ≻\n x\n \n \n {\displaystyle y\succ x}\n .
Mating preferences	Mate preferences in humans refers to why one human chooses or chooses not to mate with another human and their reasoning why (see: Evolutionary Psychology, mating). Men and women have been observed having different criteria as what makes a good or ideal mate (gender differences).
Social preferences	Social preferences describe the human tendency to not only care about one's own material payoff, but also the reference group's payoff or/and the intention that leads to the payoff. Social preferences are studied extensively in behavioral and experimental economics and social psychology.
Homothetic preferences	In consumer theory, a consumer's preferences are called homothetic if they can be represented by a utility function which is homogeneous of degree 1.: 146  For example, in an economy with two goods \n \n \n \n x\n ,\n y\n \n \n {\displaystyle x,y}\n , homothetic preferences can be represented by a utility function \n \n \n \n u\n \n \n {\displaystyle u}\n that has the following property: for every \n \n \n \n a\n >\n 0\n \n \n {\displaystyle a>0}\n :\n\n \n \n \n u\n (\n a\n ⋅\n x\n ,\n a\n ⋅\n y\n )\n =\n a\n ⋅\n u\n (\n x\n ,\n y\n )\n \n \n {\displaystyle u(a\cdot x,a\cdot y)=a\cdot u(x,y)}\n In mathematics, a homothetic function is a monotonic transformation of a function which is homogeneous; however, since ordinal utility functions are only defined up to an increasing monotonic transformation, there is a small distinction between the two concepts in consumer theory.: 147 In a model where competitive consumers optimize homothetic utility functions subject to a budget constraint, the ratios of goods demanded by consumers will depend only on relative prices, not on income or scale. This translates to a linear expansion path in income: the slope of indifference curves is constant along rays beginning at the origin.: 482  This is to say, the Engel curve for each good is linear.
Preference utilitarianism	Preference utilitarianism (also known as preferentialism) is a form of utilitarianism in contemporary philosophy. It is distinct from original utilitarianism in that it values actions that fulfill the most personal interests, as opposed to actions that generate the most pleasure.
Preference Pane	A Preference Pane (often abbreviated as prefpane) is a special dynamically loaded plugin in macOS. Introduced in Mac OS X v10.0, the purpose of a Preference Pane is to allow the user to set preferences for a specific application or the system by means of a graphical user interface. Preference Panes are the macOS replacement for control panels in the classic Mac OS. Prior to Mac OS X v10.4, collections of Preference Panes featured a "Show All" button to show all the panes in the collection and a customizable toolbar to which frequently-used preference panes could be dragged.
Trade preference	A trade preference is preference by one country for buying goods from some other country more than from other countries. It grants special support to one country over another.
Porter's five forces analysis	Porter's Five Forces Framework is a method of analysing the operating environment of a competition of a business. It draws from industrial organization (IO) economics to derive five forces that determine the competitive intensity and, therefore, the attractiveness (or lack thereof) of an industry in terms of its profitability.
Company	A company, abbreviated as co., is a legal entity representing an association of people, whether natural, legal or a mixture of both, with a specific objective. Company members share a common purpose and unite to achieve specific, declared goals.
The Walt Disney Company	The Walt Disney Company, commonly known as Disney (), is an American multinational mass media and entertainment conglomerate headquartered at the Walt Disney Studios complex in Burbank, California.\nDisney was originally founded on October 16, 1923, by brothers Walt and Roy O. Disney as the Disney Brothers Cartoon Studio; it also operated under the names the Walt Disney Studio and Walt Disney Productions before changing its name to the Walt Disney Company in 1986.
Holding company	A holding company is a company whose primary business is holding a controlling interest in the securities of other companies. A holding company usually does not produce goods or services itself.
The Pokémon Company	The Pokémon Company (株式会社ポケモン, Kabushiki gaisha Pokémon) is a Japanese company responsible for brand management, production, publishing, marketing and licensing of the Pokémon franchise, which consists of video game software, a trading card game, anime television series, films, manga, home entertainment products, merchandise, and other ventures. It was established through a joint investment by the three businesses holding the copyright of Pokémon: Nintendo, Game Freak, and Creatures.
The Honest Company	The Honest Company, Inc. is an American consumer goods company, founded by actress Jessica Alba.
Profitability index	Profitability index (PI), also known as profit investment ratio (PIR) and value investment ratio (VIR), is the ratio of payoff to investment of a proposed project. It is a useful tool for ranking projects because it allows you to quantify the amount of value created per unit of investment.
Profit (economics)	An economic profit is the difference between the revenue a commercial entity has received from its outputs and the opportunity costs of its inputs. It equals to total revenue minus total cost, including both explicit and implicit costs.
The Initiative (company)	The Initiative is an American video game development company based in Santa Monica, California. As a division of Xbox Game Studios, the company was founded in 2018 to build AAA games for the Xbox consoles and Windows.
Profitability analysis	In cost accounting, profitability analysis is an analysis of the profitability of an organisation's output. Output of an organisation can be grouped into products, customers, locations, channels and/or transactions.
Customer Profitability Analysis	Customer Profitability Analysis (in short CPA) is a management accounting and a credit underwriting method, allowing businesses and lenders to determine the profitability of each customer or segments of customers, by attributing profits and costs to each customer separately. CPA can be applied at the individual customer level (more time consuming, but providing a better understanding of business situation) or at the level of customer aggregates / groups (e.g.
Profitable growth	Profitable Growth is the combination of profitability and growth, more precisely the combination of Economic Profitability and Growth of Free cash flows. Profitable growth is aimed at seducing the financial community; it emerged in the early 80s when shareholder value creation became firms’ main objective.
Customer profitability	Customer profitability (CP) is the profit the firm makes from serving a customer or customer group over a specified period of time, specifically the difference between the revenues earned from and the costs associated with the customer relationship in a specified period. According to Philip Kotler,"a profitable customer is a person, household or a company that overtime, yields a revenue stream that exceeds by an acceptable amount the company's cost stream of attracting, selling and servicing the customer."\nCalculating customer profit is an important step in understanding which customer relationships are better than others.
SAP ERP	SAP ERP is an enterprise resource planning software developed by the German company SAP SE. SAP ERP incorporates the key business functions of an organization. The latest version of SAP ERP (V.6.0) was made available in 2006.
Public company	A public company, publicly traded company, publicly held company, publicly listed company, or public limited company is a company whose ownership is organized via shares of stock which are intended to be freely traded on a stock exchange or in over-the-counter markets. A public (publicly traded) company can be listed on a stock exchange (listed company), which facilitates the trade of shares, or not (unlisted public company).
Privately held company	A privately held company or private company is a company which does not offer or trade its company stock (shares) to the general public on the stock market exchanges, but rather the company's stock is offered, owned and traded or exchanged privately or over-the-counter. In the case of a close corporation, there are a relatively small number of shareholders or company members.
Amazon (company)	Amazon.com, Inc. ( AM-ə-zon) is an American multinational technology company which focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence.
Subsidiary	A subsidiary, subsidiary company or daughter company is a company owned or controlled by another company, which is called the parent company or holding company. Two or more subsidiaries that belong to the same parent company are called sister companies.
Good Company (company)	Good Company is an independent US entertainment production company founded in 2012 by Jonathan Lia, Brian Welsh and Ryan Heiferman in New York City with a second office in Los Angeles. The company has produced content including commercials, music videos, films and experiential.Good Company began 2012 with Kanye West and Jay-Z's "Niggas in Paris" video, which was nominated for two VMA Awards, Best Video and Best Director.
Business	Business is the activity of making one's living or making money by producing or buying and selling products (such as goods and services). It is also "any activity or enterprise entered into for profit."Having a business name does not separate the business entity from the owner, which means that the owner of the business is responsible and liable for debts incurred by the business.
Business-to-business	Business-to-business (B2B or, in some countries, BtoB) is a situation where one business makes a commercial transaction with another. This typically occurs when:\n\nA business is sourcing materials for their production process for output (e.g., a food manufacturer purchasing salt), i.e.
Business administration	Business administration (also known as business management) is the administration of a commercial enterprise. It includes all aspects of overseeing and supervising business operations.
Business Is Business	Business-to-business (B2B or, in some countries, BtoB) is a situation where one business makes a commercial transaction with another. This typically occurs when:\n\nA business is sourcing materials for their production process for output (e.g., a food manufacturer purchasing salt), i.e.
Small business	Small businesses are corporations, partnerships, or sole proprietorships which have fewer employees and/or less annual revenue than a regular-sized business or corporation. Businesses are defined as "small" in terms of being able to apply for government support and qualify for preferential tax policy varies depending on the country and industry.
Family business	A family business is a commercial organization in which decision-making is influenced by multiple generations of a family, related by blood or marriage or adoption, who has both the ability to influence the vision of the business and the willingness to use this ability to pursue distinctive goals. They are closely identified with the firm through leadership or ownership.
Business Proposal	Business Proposal (Korean: 사내 맞선; Hanja: 社內맞선; RR: Sanae Matseon; lit. The Office Blind Date) is a South Korean romantic comedy television series based on the webtoon of the same title written by HaeHwa and illustrated by Narak.
Small and medium-sized enterprises	Small and medium-sized enterprises (SMEs) or small and medium-sized businesses (SMBs) are businesses whose personnel numbers fall below certain limits. The abbreviation "SME" is used by international organizations such as the World Bank, the European Union, the United Nations, and the World Trade Organization (WTO).

Risk Factors
KRAFT FOODS INC Item 1A Risk Factors The following risk factors should be read carefully in connection with evaluating the Companyapstas business and the forward-looking information contained in this Annual Report on Form 10-K Any of the following risks could materially adversely affect the Companyapstas business, operating results, financial condition and the actual outcome of matters as to which forward-looking statements are made in this Annual Report on Form 10-K While the Company believes it has identified and discussed below the key risk factors affecting its business, there may be additional risks and uncertainties that are not presently known or that are not currently believed to be significant that may adversely affect the Companyapstas business, performance or financial condition in the future
The Companyapstas profitability may suffer as a result of competition in its markets
The food industry is intensely competitive
Competition in the Companyapstas product categories is based on price, product innovation, product quality, brand recognition and loyalty, effectiveness of marketing, promotional activity and the ability to identify and satisfy consumer preferences
From time to time, the Company may need to reduce the prices for some of its products to respond to competitive and customer pressures and to maintain market share
Such pressures also may restrict the Companyapstas ability to increase prices, including in response to commodity and other cost increases
The Companyapstas results of operations will suffer if profit margins decrease, either as a result of a reduction in prices or increased costs, and the Company is not able to increase sales volumes to offset those margin decreases
In order to protect existing market share or capture increased market share in this highly competitive environment, the Company may also need to increase its spending on marketing, advertising and new product innovation
The success of marketing, advertising and new product innovation is subject to risks, including uncertainties about trade and consumer acceptance
As a result, increased expenditures by the Company may not maintain or enhance market share and could result in lower profitability
The Company must leverage its brand value propositions to compete against lower-priced private label items and offset economic downturns
Retailers are increasingly offering private label products that compete with the Companyapstas products
The willingness of consumers to purchase the Companyapstas products will depend upon the Companyapstas ability to offer brand value propositions—products providing the right bundle of consumer benefits at the right price
This in turn depends in part on the perception that the Companyapstas products are of a higher quality than less expensive alternatives
If the difference in quality between the Companyapstas products and store brands narrows, or if there is a perception of such a narrowing, consumers may choose not to buy the Companyapstas products
Furthermore, in periods of economic uncertainty, consumers tend to purchase more private label or other economy brands, which could result in a reduction in the volume of sales of the Companyapstas higher margin products or a shift in the Companyapstas product mix to lower margin offerings
The Companyapstas ability to maintain or improve its brand value propositions will impact whether these circumstances will result in decreased market share and profitability of the Company
The consolidation of retail customers may put pressures on the Companyapstas operating margins and profitability
The Companyapstas customers such as supermarkets, warehouse clubs and food distributors, have consolidated in recent years and consolidation is expected to continue throughout the US, the European Union and other major markets
These consolidations have produced large, sophisticated customers with increased buying power who are more capable of operating with reduced inventories, resisting price increases, and demanding lower pricing, increased promotional programs and specifically tailored products
These customers also may use shelf space currently used for the 12 _________________________________________________________________ Companyapstas products for their private label products
If the Company fails to respond to these trends, its volume growth could slow or it may need to lower prices or increase promotional spending for its products, any of which would adversely affect its profitability
Commodity price increases will increase operating costs and may reduce profitability
The Company is a major purchaser of milk, cheese, plastic, nuts, green coffee beans, cocoa, corn products, wheat, rice, pork, poultry, beef, vegetable oil, sugar, other sweeteners and numerous other commodities
Commodities such as these often experience price volatility caused by conditions outside of the Companyapstas control, including fluctuations in commodities markets, currency fluctuations and changes in governmental agricultural programs
Commodity prices impact the Companyapstas business directly through the cost of raw materials used to make the Companyapstas products (such as cheese), the cost of inputs used to manufacture and ship the Companyapstas products (such as oil and energy) and the amount the Company pays to produce or purchase packaging for its products (such as cardboard and plastic)
For 2005, pre-tax aggregate commodity costs increased by approximately dlra800 million versus 2004, following an increase of approximately dlra900 million for 2004 compared with 2003
If, as a result of consumer sensitivity to pricing or otherwise, the Company is unable to increase its prices to offset increased commodities costs, the Company may experience lower profitability
Sales of the Companyapstas products are subject to changing consumer preferences, and the Companyapstas success depends upon its ability to predict, identify and interpret changes in consumer preferences and develop and offer new products rapidly enough to meet those changes
The Companyapstas success depends on its ability to predict, identify and interpret the tastes and dietary habits of consumers and to offer products that appeal to those preferences
Consumer preferences for food products are ever-changing
For example, recently, consumers have been increasingly focused on health and wellness with respect to the food products they buy
As a result, the Companyapstas products have been subject to scrutiny relating to genetically modified organisms and the health implications of obesity and trans-fatty acids
The Company has been and will continue to be impacted by publicity concerning the health implications of its products, which could negatively influence consumer perception and acceptance of the Companyapstas products and marketing programs
Furthermore, if the Company does not succeed in offering products that consumers want to buy, the Companyapstas sales and market share will decrease, resulting in reduced profitability
A significant challenge for the Company is distinguishing among fads, mid-term trends and lasting changes in the Companyapstas consumer environment
If the Company is unable to accurately predict which shifts in consumer preferences will be long-lasting, or to introduce new and improved products to satisfy those preferences, its sales will decline
In addition, given the variety of backgrounds and identities of consumers in the Companyapstas consumer base, the Company must offer a sufficient array of products to satisfy the broad spectrum of consumer preferences
As such, the Company must be successful in developing innovative products across a multitude of product categories
Finally, if the Company fails to rapidly develop products in faster growing and more profitable categories, the Company could experience reduced demand for its products
The Companyapstas foreign operations are subject to additional risks
The Company operates its business and markets its products internationally
In 2005 and 2004, 38prca of the Companyapstas sales were generated in foreign countries
The Companyapstas foreign operations are subject to the risks described in this section, as well as risks related to fluctuations in currency values, foreign currency exchange controls, discriminatory fiscal policies, compliance with foreign laws, enforcement of remedies in foreign jurisdictions and other economic or political uncertainties
In particular, the Companyapstas subsidiaries conduct their businesses in local currency and, for purposes of financial reporting, their results are translated into US dollars based on average exchange rates 13 _________________________________________________________________ prevailing during a reporting period
During times of a strengthening US dollar, the Companyapstas reported net revenues and operating income will be reduced because the local currency will translate into fewer US dollars
Additionally, international sales are subject to risks related to imposition of tariffs, quotas, trade barriers and other similar restrictions
All of these risks could result in increased costs or decreased revenues, either of which could adversely affect the Companyapstas profitability
The Company may not be able to successfully implement its restructuring program
The Companyapstas future success and earnings growth depend in part on its ability to make products efficiently
In January 2004, the Company announced a three-year global restructuring program designed to improve its cost structure and utilization of assets
In January 2006, the Company announced plans to expand its restructuring efforts beyond those originally contemplated
Initiatives in the expanded program include further organizational streamlining and facility closures
If the Company is unable to successfully implement the restructuring program, it may not be able to fully recognize the estimated cost benefits
Conversely, if the implementation of the program has a negative impact on the Companyapstas relationships with employees, major customers or vendors, the Companyapstas profitability could be adversely affected
The Company may not be able to successfully consummate proposed acquisitions or divestitures or integrate acquired businesses
From time to time, the Company evaluates acquiring other businesses that would strategically fit within the Company
If the Company is unable to consummate, successfully integrate and grow these acquisitions and to realize contemplated revenue synergies and cost savings, its financial results could be adversely affected
In addition, the Company may, from time to time, divest businesses that are less of a strategic fit within its portfolio or do not meet its growth or profitability targets, and the Companyapstas profitability may be impacted by either gains or losses on the sales, or lost operating income from, those businesses
The Company may also not be able to divest businesses that are not core businesses or may not be able to do so on terms that are favorable to the Company
In addition, the Company may be required to incur asset impairment charges related to acquired or divested businesses which may reduce the Companyapstas profitability
These potential acquisitions or divestitures present financial, managerial and operational challenges, including diversion of management attention from existing businesses, difficulty with integrating or separating personnel and financial and other systems, increased expenses, assumption of unknown liabilities, indemnities and potential disputes with the buyers or sellers
The Company may experience liabilities or negative effects on its reputation as a result of product recalls, product injuries or other legal claims
The Company sells products for human consumption, which involves a number of legal risks
Product contamination, spoilage or other adulteration, product misbranding or product tampering could require the Company to recall products
The Company may also be subject to liability if its products or operations violate applicable laws or regulations or in the event its products cause injury, illness or death
In addition, the Company advertises its products and could be the target of claims relating to false or deceptive advertising under US federal and state laws as well as foreign laws, including consumer protection statutes of some states
A significant product liability or other legal judgment against the Company or a widespread product recall may negatively impact the Companyapstas profitability
Even if a product liability or consumer fraud claim is unsuccessful or is not merited or fully pursued, the negative publicity surrounding such assertions regarding the Companyapstas products or processes could adversely affect its reputation and brand image
14 _________________________________________________________________ New regulations could adversely affect the Companyapstas business
Food production and marketing are highly regulated by a variety of federal, state, local and foreign agencies, and new regulations and changes to existing regulations are issued regularly
Increased government regulation of the food industry, such as recent requirements regarding the labeling of trans-fat content, could result in increased costs to the Company and adversely affect itapstas profitability
A possible spin-off from Altria may cause short-term volatility in the trading volume and market price of the Companyapstas common stock
At December 31, 2005, Altria held 98dtta3prca of the combined voting power of the Companyapstas outstanding capital stock and owned 87dtta2prca of the outstanding shares of the Companyapstas capital stock
Altria has publicly stated that it is considering a spin-off of the Company, which, if it were to occur, would significantly change the profile of the Companyapstas stockholders
If a number of the Companyapstas new stockholders choose to sell their shares, or if there is a perception that such sales might occur, this may cause short-term volatility in the trading volume and market price of the Companyapstas common stock
Changes in the Companyapstas credit ratings may have a negative impact on the Companyapstas financing costs
The Company maintains revolving credit facilities that have historically been used to support the issuance of commercial paper
A downgrade in the Companyapstas credit ratings, particularly its short-term credit rating, would likely reduce the amount of commercial paper the Company could issue, raise the Companyapstas borrowing costs, or both
Volatility in the equity markets or interest rates could substantially increase the Companyapstas pension costs
The projected benefit obligation and assets of the Companyapstas defined benefit pension plans as of the end of fiscal 2005 were dlra10dtta1 billion and dlra9dtta1 billion, respectively
The difference between plan obligations and assets, or the funded status of the plans, is a significant factor in determining the net periodic benefit costs of the Companyapstas pension plans and the ongoing funding requirements of those plans
Changes in interest rates, mortality rates, early retirement rates, investment returns and the market value of plan assets can impact the funded status of these plans and cause volatility in the net periodic benefit cost and future funding requirements of these plans
In addition, any disposition of certain businesses and the terms of those disposition transactions may impact future contributions to the benefit plans and the related net periodic benefit cost
A significant increase in the Companyapstas funding requirements could have a negative impact on its results of operations