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Larger Concepts of books for final exam

Major Types of Businesses

not-for-profit (nonprofit organizations)
Goods producing businesses
Services businesses

Multiple Environments of business

Economic Environment
Market Environment
Legal & Regulatory Environment
Social Environment
Technical Environment

Major Functional Areas of Business Enterprise

a. Research & Development
b. Manufacturing, Production and Operations
c.Marketing, Sales Distribution & Customer Support
d. Finance & Accounting
e. Human Resources
f. Business Services (acct, law, kanking, real estate)

Economy

The sum total of all the economic activity within a given region

Economics

The study of how a society uses its scarce resources to produce and destribute goods.

Factors of Production

Natural resources, Human resources, capital & entrepreneurship & knowledge

Economic Systems

Free-Market systems (capitalism)
Planned Systems (socialism)
Nationalization (gov assums owndership of company Privatization (services once performed by Gov now private)

Frictional unemployment

the natural flow of workers into and out of jobs

Economic Measures & monitors

Leading indicators - suggest change may happen
Lagging indicators - provide confirmation that something occurred. & Price Inceses

BLS

Bureau of Labor Statistics

CPI

Consumer Price Index

Gross National Product

the sum of all goods and services produced in a nation in a year

Gross Domestic Product

the total market value of all final goods and services produced annually in an economy

Macroeconomics

study of the economy as a whole

Microeconomics

the study of the economic behavior and decision making of small units, such as individuals, families, and businesses

Opportunity cost

the value of the most appealing alternative that was not chosen.

Pure competition

situation with so many buyers and sellers that no single buyer or seller can individually influence market prices.

balance of payment

the difference between the amount of money that comes into a country and the amount that goes out of it

Economies of scale

as a company produces larger numbers of a particular product, the cost of each of these products goes down

Top 6 reasons companies trade internationally

1. focus on their strengths (do what they are good at)
2. expand market (grow)
3. pursuing economics of scale
4. acquire materials goods and services (stuff we don't have)
5. keeping up with customers (be where client is)
6. keeinng up with competitors

ITO International Trade Organization

World Trade Organization, International Monetary Fund (IMF), World Bank

World Trade Organization

Prevents discriminatory policies, reduces parriers, makes policies more predictable, helps less developed countries and discourages unfair practices i.e. dumping.

IMF International Monetary Fund

Monitors global financial developments, provides SHORT term loans to countries & provides tech advice and training.

World Bank

addresses poverty, health, education in developing countries. Not directly involved in international trade

NAFTA

North American Free Trade Agreement

EU

Eureopean Union

APEC

Asia-Pacific Econ Cooperative - 21 countries, 40% of world population, 50% of worlds GDP

Factors influencing ethical behaviors

cultural differences, knowledge, organizational behaviors (code of ethics)

CSR - Corporate Social Responsibility

Business obligations beyond money

Four levels of CSR

Minimalist, Defensive, Cynical & Proactive

Cap & Trade

Govn't sets limits on pollutants. Companies can trade, save or sell if they don't use.

CSR Consumerism

consumer needs and interests - the right to be informed, the right to choose which product & the right to be heard

CSR Employees

Equality in employment AA, ADA & OSHA

Trading Blocs

NAFTA, EU & Asia-Pacific Economic Cooperation Council

Effective Leadership Styles

Autocratic, Democratic & Laissez-faire

4 basic functions mgrs perform

organize, lead, control and plan

SWOT

Strength, Weakness, Opportunities, Threats

Value chain

All actives involved in delivering value to customers.

Theory X

All employees dislike work and will avoid it unless threatened, A set of negative assumptions about employees based on the premise that people do not like work and will try to avoid it.

Theory Y

assumes that employees enjoy meaningful work, are naturally committed to goals, capable of creativity and seek out responsibility under right conditions

Herzberg's motivators

achievement, recognition, responsibility, work itself personal growth (pay not one)

Herzberg's Hygiene factors

working conditions, pay, security

Herzberg's two-factor theory

model that divides motivational forces into satisfiers - motivators & dissatisfiers - hygiene

Maslow's Hierarchy

P. S. BE SAfe. Physiological, Safety, Belongingness, Esteem, Self-Actualization.

MBO (Mgt by Objectives)

company wide process that empowers employees and involves them in goal setting planning, implementing and reviewing

McClelland's three-needs theory

need for power, affiliation and achievement

Supply Chain Mgt

connected systems that coordinate the flow of goods from suppliers to final customers

Lean Systems

Max productivity by reducing waste and delays.

Theory Z

Ouchi's approach to motivation based on seven principles, comes from japanese management, and stresses long term employment; collective decision making; individual responsibility; slow evaluation and promotion; implicit; informal control with explict, formalized control; moderately specialized career paths; and a holistic concern for employees [ including family ]

McGregor's Assumption

Theory X emphasize authority and Theory Y emphasizes grown and self direction.

Equity theory

employee satisfaction depends on the perceived ratio of inputs to outpouts. (pay to work)

Influence over hire

seniority takes presidence

Wagner Act

Power to Unions 1st Nat'l Labor Relations Act for union policies and procedures

Taft-Hartley Act

Power to the owners: Amended Wagner Act - employees have right to not participapnte in unions and gives states the freedom to pass right-to-work laws.

Landrum-Griffin Act

Power to the Union members: Amends Taft-Hartley act- to control union corruption- union have to file annual rpts with US Dept of Labor

Collective Bargaining Process

Prepare to meet, meet, reach agreement, vote and ratify, sign contract

Labor attempts to force resolution

strike, boycott, negative publicity

Mgt attempts to force resolution

strikebreakers, lockouts, injunctions

Marketing

Relationships - create value, exchange value, lasting relationships

Four Utilities of Marketing

form, time, place & Possession

Reference groups

people that have a good deal in common

Factors that influence consumer behavior

culture, socioeconomic class, reference groups, situational factors, self-image

Market segments

demographics, psychographics & geographics

undifferentiated marketing

mass marketing

differentiated marketing

A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each (toyota with scion, lexus, etc)

concentrated marketing

narrowest approach - single mkt segment

micromarketing

narrowest strategy - single customer

Marketing Mix

4 P's price, place = distribution, promotion = communication, product

product continuum

relative amounts of tangible and intangible components in a product.

product life cycle

Introduction, Growth, Maturity, Decline

New product development process

Generate ideas, screen ideas, analyse potentioal, develop prototype, test mkt, commercialize product

break even analysis

# of units a company must sell to recoup cost

optimal pricing

computer sofeware generates ideal price

skim pricing

high initial price with intent to drop later

penetration pricing

low initial price builid up laters

participative pricing

pay what you want = car wash

value based pricing

product's potential or perceived value in mktplace

cost based pricing

cost plus mark up

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