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Buying and Merchandising ICDC PIs
Terms in this set (236)
Discuss the nature of law and sources of law in the United States
Laws: enforceable rules of society that reflect the culture and circumstances that create them.
May be grouped into a code
Common law, positive law, English common law, equity
US: sources of law à the Constitution, state constitutions, statues, ordinances, administrative regulations, and criminal or civil cases
Describe the United States judicial system
The judicial system was created to balance the powers of the government. They interpret the laws of the constitution and have the power to declare things unconstitutional
describe legal issues affecting businesses
among the legal issues affecting businesses are the following. consumer protection issues include product safety( for everything from toys to furniture), zoning laws to protect real estate value and quality of life, public health (i.e. at restraunts), and liscensing for personal service providers ( such as hairstyles and electricians). employee protection issues include minimum wage standards, equal oppurtunity employment provisions, guidelines for workplaces safety, and Family and Medical Leave Act. Other legal issues bussinesses must be aware of inclue laws prtecting investors and the enviornment as well as maintaing competition in the marketplace. the securities and exchange comission regulates the sale of stocks and bonds and investigates deals among coorporations. businesses must follow various other laws to protect human health and the enviornment in regard to pollution, waste disposal, and recycling. companies are also faced with legal standars that protect against anti competitive mergers and business pratices. laws also exist that regulate the distrubution of producuts such as alchohal and tobacco.
Identify the basic torts relating to business enterprises
Business torts: civil wrongs committed by or against an organization - involve harm done to the organization's intangible assets (business relationships with clients, intellectual property)
Tort of misrepresentation: one party intentionally falsifies a material fact to induce another party to perform/refrain from performing in a certain manner
Embezzling company assets, falsifying financial statements, forging work hours
Fiduciary: party charged with acting in another party's best interests
If an officer engages in insider trading - guilty of breaching fiduciary duties to the corporation's shareholders.
Describe the nature of legally binding contracts
Almost every business activity involves a contract
Contracts that define the relationships and rights and obligations of parties
Contract: mutual binding agreement
Creates enforceable duties or obligations that are legally binding - each party is obligated or refrained from doing certain acts
Consists of: an agreement made between competent parties, based upon the genuine assent of the parties, supported by consideration and made for lawful objective
describe the nature of legal procedure
-defines our role as citizens with rights and obligations
-Three branches of government including executive, legislative, and judiciary
-Legislative creates laws, executive carries out laws, and judiciary interprets laws
-Checks and balances throughout the system to create a balanced government
-Citizens have rights outlined in the constitution and have obligations to carry out laws and serve as jury members
discuss the nature of debtor-creditor relationships
involuntary: arises by operation of law or judicial precedings
Voluntary: majority of debtor-creditor relationships
Loans, credit lines, use of credit cards à when a person purchases a car and finances the cost, the purchaser is voluntarily incurring debt
Explain the nature of agency relationships
Agency relationship is where a principal engages an agent to carry out various duties on his or her behalf. This relationship involves delegating decision making powers to the agent by the principle; hence trust is a fundamental requirement for it to succeed. It simultaneously means the principal is bound (normally) by what the agent does, since the agent is acts as if the principal were there him/herself.It allows the principal the ability, if you will, to be more than one place at a time, thereby expanding their potential business opportunities.Simply stated, the agent acts for the principal as if it were the principal acting-and with the same authority- as if it were the principal.
Discuss the nature of environmental law
US is a world leader in development and implementation of environmental law
Law of tort - important for the resolution of environmental disputes
US Environmental Protection Agency (EPA) is a well-known federal agency with jurisdiction over many of the country's national air, water and waste substance programs
Describes international treaties, statutes, regulations, and common law to regulate the interaction of human activity and the natural environment
discuss the role of administrative law
Encompasses statues and cases which define the extent of the powers and responsibilities held by administrative agencies in the US
California has an extensive body of administrative law
Explain types of business ownership
Sole Proprietorship: Owner fully responsible for all obligations and debts
Partnerships: owners combine financial resources
Corporations: legal entity separate from owners and shareholders
Has the same rights as a person (own land, sue)
General partners: share in management and liability responsibilities
Identify sources that provide relevant, valid written material
Must be reliable, not wikipedia but scholarly books such as encyclopedia, peer reviewed or well known journals and publications
extract relevant information from written materials
apply written directions to achieve tasks
analyze company resources to ascertain policies and procedures
explain communication techniques that support and encourage a speaker
-Make eye contact with different parts of the audience throughout speech
-Utilize rhetorical devices to persuade audience of your points
-Use intonation and hand gestures
-Do not use offensive language and work humor into your speech
follow oral directions
demonstrate active listening skills
-open and inviting nods, non verbal cues
-Arms uncrossed, smiling
-Looking at listener to show that you are aware of what they are saying
explain the nature of effective verbal communications
-Use concrete and clear language that allows only one interpretation. This prevents confusion and misunderstandings.
-Talk loud and clear. Control your breathing, articulate well and smile to sound confident and relaxed.
-Use predominantly visual words and phrases. People think in images.
-Vary your speech melody and rhythm. It's the tone that makes the music.
-Avoid thinking out loud. It can be risky to reveal your thought process.
-Use positive phrases to put those you are speaking to in a good mood
-Adjust your speech to the listener. Mirroring the other person makes them feel relaxed and encourages them to open up.
ask relevant questions
interpret other's nonverbal clues
provide legitimate responses to inquiries
-Don't avoid questions but respond directly, don't beat around the bush
-Responding illegitimately will leave the consumer unsatisfied with unanswered questions, not wanting to come back to ask further questions that could result in a purchase
-Providing answers to consumers will help them learn more about your company or a product and affiliate good customer service with your company and work them towards becoming repeat customers
give verbal directions
-clear and concise, not confusing as listeners must simply commit directions to memory
-break it down
-Explain the importance of directions
-don't give too many at one time
employ communication styles appropriate to target audience
-If target audience is senior citizens utilize direct marketing such as paper mail, telephone calls, and personal selling (a lost art)
-If target audience is moms use e-mail, billboards, radio messages (always driving kids around), advertisements in grocery stores, etc
-If teens utilize social media, text alerts, etc
Defend ideas objectively
Ideas translate to opinions. Opinions are subject to interpretation based on world view. Opinions can be defended. The objective approach is too present evidence which supports the underlying cause of your belief. In order to be taken seriously you must also be willing to give weight to the merits of the opinion of others based on the same criteria. Avoid trying to denigrate others even when you don't agree with their position. if you must discredit the opinion of others do it with facts.
handle telephone calls in a businesslike manner
A businesslike greeting includes a "good morning" or "good afternoon" followed by the name of the business and the name of the department or the person answering the call. For example, "Good morning, Business Communication Central, Susan Martin speaking. How may I direct your call?" Callers don't like to wait too long for the phone to be answered, otherwise they may assume your company is closed for the day or that you're too busy to tend to customers' needs. As you set guidelines for answering calls, make it your company's goal to answer telephone calls by the third ring. If you must, have an automated call system put the caller on hold. However, don't let callers linger on hold forever. Do not eat any foods or drinks while answering calls. A complete phone message should include the caller's name, the person he is calling, a briefly stated reason for the call and a number where the caller can be reached.
participate in group discussions
make oral presentations
Utilize note-taking strategies
Select and use appropriate graphic aids
Explain the nature of effective written communications
Concise: efficient manner
Conversational: present information in a tone that invites interaction à but be professional
Considerate: open conversation to questions and clarifications
Check: review, proofread
Write business letters
Business Letter Template Fields:
Date: Use month, day, year format, e.g., March 3, 2012 or 3 March 2012
Sender's Address: It is a good idea to include sender's email and url, if available. Don't include this information if it's already incorporated into the letterhead design. This will allow customers to find your small business more quickly.
Inside Address: Use full name. Mr./Ms. is optional
Salutation: Be sure to use a colon at the end of the name, not a comma as in personal letters
Body Text: State why you are writing. Establish any connection/mutual relationship up front. Outline the solution, providing proof in the way of examples and expert opinions. Group related information into paragraphs
Closing "Call to Action": State what the reader needs to do and what you will do to follow up
Signature Block: Sign your letter in blue or black ink
Enclosures: Use if you have an enclosure
Carbon Copy: Use if you are sending a copy to additional person(s)
Be clear, concise and persuasive
Prepare simple written reports
Main body (findings)
Select and utilize appropriate formats for professional writing
Edit and revise written work consistent with professional standards
Write professional emails
-Greeting-To whom it may concern or Dear whoever
-Thank recipient "thank you for contacting ABC company" or start of with "I am writing to enquire about"
-main text of e-mail
-"Best regards" or "sincerely"
-no spelling or grammar errors
Write informational messages
The letter of inquiry should be brief—no more than three pages—and must be a succinct but thorough presentation of the need or problem you have identified, the proposed solution, and your organization's qualifications for implementing that solution. The letter of inquiry should be addressed to the appropriate contact person at a foundation or to its CEO and should be sent by regular mail.
Includes sections of intro (serving as executive summary), organization description, statement of need, the methodology ( Describe the project briefly, including major activities, names and titles of key project staff, and your desired objectives), other funding sources, final summary
Write persuasive messages
-slogans, benefits, pros of items, rhetorical devices
write executive summaries
The Mission Statement - This explains what your business is all about. It should be between several sentences and a paragraph.
Company Information - Include a short statement that covers when your business was formed, the names of the founders and their roles, your number of employees, and your business location(s).
Growth Highlights - Include examples of company growth, such as financial or market highlights (for example, "XYZ Firm increased profit margins and market share year-over-year since its foundation). Graphs and charts can be helpful in this section.
Your Products/Services -- Briefly describe the products or services you provide.
Financial Information - If you are seeking financing, include any information about your current bank and investors.
Summarize future plans - Explain where you would like to take your business.
Explain the nature of staff communication
Within a business, there are two types of internal communication, formal and informal. Formal communication spreads through newsletters, manuals, emails, memos, staff meetings, conferences and official notices. Informal communication occurs through the grapevine, which is generally word-of-mouth communication. Internal business communication that moves through the grapevine spreads throughout the organization in a random, undocumented manner and is open to constant change with individual interpretation. Although unstable, the grapevine carries some importance to internal business communication.
Choose appropriate channel for workplace communication
Grapevine communication can be unstable and not always completely true but can be beneficial in spreading word from upper management to lower management to help employees understand company problems. Formal communications happens in emails, memos, staff meetings etc and is accurate information however grapevine info can be more relatable
Participate in staff meetings
Explain the nature of positive customer relations
Believing that your customers deserve the best - focused attention, expectations, have important problems and complaints
Consider and attempt to meet their needs, give them your attention, and follow through on what is being said, and being efficient in handling issues
Demonstrated when communicating with customers, while handling complaints, inquiries, and requests
Demonstrate a customer service mindset
Perfect example is Nordstroms. They offer you sparkling water as you try on shoes, take back items that you yourself have ruined because replacing a pair of UGGS your dog chewed up will wow your customer and turn them into a life long customer that will easily be worth the money it cost to replace their shoes. Employees on the floor spend the time to help you find exactly what you're looking for and more, questioning you on your style and coming back to the dressing room with tons of items for you to fall in love with. Their return policy has no expiration date and you never have to worry about tags or receipts with their flexible staff. All the workers are warm and welcoming and focused on helping you. Plenty of employees so you're not kept waiting. My parents always find it worth spending the extra money to go to nordstroms because of all the ethos they have built up for themselves. Model this mindset in your role-play
Reinforce service orientation through communication
a. Define the term service orientation.
Listening to and understanding the customer is the focus.
Customer satisfaction is high priority.
b. Explain the relationship between communication and service.
Clear communications from sales personnel will ensure customer buys the product that best suits his needs.
If there is a problem, then clear communication is imperative so that the employee can act precisely and quickly to clear up the problem for the customer.
Clear communication is again necessary in record keeping so that the data can be used to influence future business decisions.
Clear communications to receive feedback from customers and employees on satisfaction levels.
c. Identify ways in which employees in business and marketing can demonstrate a service orientation.
Greets the person promptly and courteously.
Pays attention to the person.
Asks questions to determine the person's needs.
Listens carefully and empathizes with the person's concerns.
Offers relevant information.
Summarizes to check for understanding.
Acts or agrees on a clear course of action.
Tries to do better than expected.
Asks questions to check for satisfaction.
Thanks the individual.
Takes surveys to determine people's needs.
Is courteous to citizens, clients, patients, etc.
Does not "pass the buck."
d. Demonstrate procedures for reinforcing a service orientation through communication.
Use customer surveys to pinpoint areas for improvement.
Use employee surveys to pinpoint areas for improvement.
Develop a follow up procedure to determine levels of customer satisfaction after the sale.
Use signage for employees and customers reinforcing customer services.
Adapt communication to the cultural and social differences among clients
a. Discuss the purpose of adapting communication to a client's cultural or social community.
To avoid offending clients with your lack of sensitivity to there needs.
To better assist clients to make the right purchase for their needs.
b. Explain the importance of context in communication.
Context is the surrounding story or thought process of a communicated idea. It is what helps get the point across. The wrong context can completely skew the meaning.
c. Discuss reasons for adapting communication to the cultural or social differences among clients.
Our market is very global and therefore impacts many different cultures socially and geographically.
The success of all companies depends on their abilities to understand cultural differences and work with them to keep all customers happy and well informed to make the best buying decisions.
It is impossible to achieve customer satisfaction without clearly communicating product features and benefits.
Clients could be offended by your lack of understanding of their culture's typical use of a product.
d. Explain skills associated with adapting communication (e.g., empathy, risk taking, problem solving, etc.).
1 patient, flexible, and empathetic are key personality traits when dealing with communication barriers.
e. Describe ways to adapt communication to the cultural or social environment of clients.
1. Language and symbols
2. Material culture (understand the way a country makes products and you will understand how they value the products)
3. Aesthetics (what a culture considers valuable or beautiful)
4. Social and business etiquette (what is acceptable in a culture)
5. Religious beliefs, Holidays, attitudes, values, space and time
f. Demonstrate how to adapt communication to the cultural or social differences among clients.
Stereotypes are oversimplified views of a group of people.
Cultural bias is the belief that a person's own culture or ethnic group is the best.
Prejudice is hostility toward a group of people.
Discrimination is the unfair treatment of individuals based on prejudice.
Interpret business policies to customers/clients
a. Define the term business policy.
A general rule that personnel should follow in order to avoid misunderstandings and apply fair and consistent treatment to all situations.
b. Identify characteristics of effective business policies.
1 goal should be customer satisfaction
2 policy should be used consistently
3 policy should be flexible
4 policies should be well understood by employees
c. Describe reasons for having business policies.
The policies create a business image and help you to consistently maintain that image.
d. Explain types of business policies that affect customers.
1 purchase policies
2 return and exchange policies
e. Discuss the role of employees in interpreting business policies.
1 Employees are the ones dealing with customer inquiries and must learn how to apply business policies to each situation
2 Clear policies must be communicated to employees so they will understand how to implement.
f. Explain when business policies should be interpreted.
Every situation is unique and different Policies must sometimes be adjusted to fit the occasion while maintaining their initial integrity.
g. Explain guidelines for interpreting business policies to customers.
1 State the policy and explain how it applies to the situation.
2 Stress the desire to maintain fairness through the use of the policy
3 Remain calm.
4 Answer any questions on store policy
h. Demonstrate procedures for interpreting business policies to customers.
Respond to customer inquiries
. Explain the nature of customer inquiries.
1 Inquiries can be sincere or hidden
(Sometimes price is the hidden problem and the customer will complain about color)
b. Identify the types of customer inquiries.
1 merchandise (defective, wrong size or color, damaged, improper labeling, not meeting customer needs, customer purchased the wrong product)
2 store personnel (high pressure sales, rudeness, providing insufficient product information, being inaccurate)
3 business (unhappy with the number and types of services offered, unhappy with business policies)
c. Discuss the importance of possessing knowledge of the company (e.g., policies, history, capabilities, etc.).
1 You must understand how to apply company policies to each situation in order to remain fair.
2 You must know the company capabilities in order to handle the customer inquiry rapidly and satisfactorily
d. Discuss the importance of possessing adequate product knowledge.
1 Product knowledge is a necessity in order to respond to the customer situation in the best manner.
2 Product knowledge is needed to understand the customer's problem with a product
3 Understanding of the product makes it easier to understand the company policy in respect to the product
e. Describe guidelines for handling customer inquiries.
Listen to determine reason for complaint (shows a concerned attitude)
Restate the complaint (show your understanding of the problem)
Investigate the problem (determine how to handle)
Explain the store policy (desire to maintain fairness by following store policy)
Take action (quick action makes the customer feel important)
f. Demonstrate use of proper procedure for solving a customer inquiry in a marketing situation.
Handle difficult customers
Be patient and put the customer first. Listen first to the customer and empathize with their position/complaint, restate their problem and go about solving the issue or providing the customer with someone who can solve the issue
Handle customer/client complaints
1. Listen carefully to what the customer has to say, and let them finish. Don't get defensive. The customer is not attacking you personally; he or she has a problem and is upset. Repeat back what you are hearing to show that you have listened.
2. Ask questions in a caring and concerned manner.
The more information you can get from the customer, the better you will understand his or her perspective. I've learned it's easier to ask questions than to jump to conclusions.
3. Put yourself in their shoes.
As a business owner, your goal is to solve the problem, not argue. The customer needs to feel like you're on his or her side and that you empathize with the situation.
4. Apologize without blaming.
When a customer senses that you are sincerely sorry, it usually diffuses the situation. Don't blame another person or department. Just say, "I'm sorry about that."
5. Ask the customer, "What would be an acceptable solution to you?"
Whether or not the customer knows what a good solution would be, I've found it's best to propose one or more solutions to alleviate his or her pain. Become a partner with the customer in solving the problem.
6. Solve the problem, or find someone who can solve it— quickly!
Research indicates that customers prefer the person they are speaking with to instantly solve their problem. When complaints are moved up the chain of command, they become more expensive to handle and only add to the customer's frustration.
Identify company's brand promise
A brand promise is the statement that you make to customers that identifies what they should expect for all interactions with your people, products, services and company. It is often associated with the company name and/or logo.
For example: ABC Heating and Air -- "We're not comfortable until you are."
Brand promise - extension of a company's positioning an expected tangible benefit that creates desire for a product or service and differentiates from other competitors
Can be explicitly articulated, or manifested more subtly in the experience of the brand
Must convey a compelling benefit to a ratget customer
Must be authentic and credible
Promise must be kept
Determine ways of reinforcing the company's image through employee performance
Customer communication is very important. Good employees are the key to a good business and you must be able to create a positive competent workforce to help company problems. Enthusiastic employees will help your company's image.
Discuss the nature of customer relationship management
involves finding customers and keeping them satisfied. It is useful for developing and maintaining customer relationships.-more on this
Explain the role of ethics in customer relationship management
Ethical businesses can form tight relationships with their customers due to their strong principles and trust in their partners. Business ethics can be directly related as the values of businesses color the relations with their customers. Companies with great integrity and truthfulness will tighten the bonds with customers.
Read more: http://www.ehow.com/info_8348061_business-ethics-customer-relations.html#ixzz2wwvzjNxQ
Describe the use of technology in customer relationship management
There are a few major areas in which technology now is able to help provide key advantages to businesses in engendering customer loyalty by improving customer service:
Websites. Providing areas on your website where customers can answer their own questions or seek answers from others.
E-mail. Using e-mail as a way to improve customer service and more quickly respond to certain needs or help requests.
Communications. Unifying communications so that you know that the customer who left a voice mail also sent an e-mail with the same request a few days ago.
Software. Better managing customer relationships with more sophisticated data-gathering tools, such as customer relationship management software.
Giving Customers What They Want, When They Want It
The goal of your business in terms of its customer interactions is the generate loyalty. There's no better way to do that than to offer quality products and services and to be responsive to your customers. But as new technologies have come to market to make it easier for businesses to provide customer service, they may also be increasing the number of channels through which you interact with customers and the complexity of those interactions. Accenture, the technology consulting firm, suggests that businesses that want to use technology to raise the quality of their customer service focus on the following:
Data management and analytics. Using data collected from customer to analyze their preferences.
Insight-driven marketing. Gaining insights into your business from customer data so you can more effectively target marketing.
Marketing automation. Streamlining and automating business processes to improve efficiency and keep costs low.
Self-service optimization. Finding ways for customers to interact with your business when they want.
Workforce effectiveness. Encouraging your staff to embrace new ways improving customer treatment by providing tools and training to deliver better service.
distinguish between economic goods and services
explain the concept of economic resources
Also known as Factors of Production: 1. Land: ground used to build structure and also resources that come from the land. Eg, water wind, farmland, fossil fuels, minerals... 2. Labour (human resources) General category of human effort, physical or mental. The work force 3. Capital: goods used to create other goods and services Fixed Capital: machinery, buildings, plants & equipment, new technology... Working Capital: finished/semi-finished goods that will be consumed or made into consumer goods Infrastructure: highway, trains, satellite/cable, airports & docks... 4. Entrepreneurs: Specialized part of Labour; invests own financial capital into business for possible profit. AKA Innovation
Describe the concepts of economics and economic activities
Actions that involve the production, distribution and consumption of goods and services at all levels within a society. Gross domestic product or GDP is one way of assessing economic activity, and the degree of current economic activity and forecasts for its future level can significantly impact business activity and profits, as well as inflation and interest rates.
determine economic utilities created by business activities
Economic Utility: The ability of a good or service to satisfy a customer's needs or wants; the five kinds of economic utility are form utility, time utility, place utility, information utility and possession utility.
Explain the principles of supply and demand
The market forces of supply and demand are the most fundamental elements in economics. They help determine the cost of goods, and they're crucial in helping businesses formulate long term strategies. Sometimes artificial elements can interfere with the law of supply and demand, and when this happens, disruptions in the economic balance are possible.
Supply is defined as the availability of a product or service. Some things are very rare, while others are abundant. For example, gold is generally considered a rare commodity, while iron is much more common. In many markets, the amount of supply will constantly shift based on the decisions that businesses make, competitive forces, and changes in public opinion.
Demand is a measure of the public's desire to purchase a product or service. If something is very popular, or very necessary, it will generally be in high demand. Sometimes this can change in the blink of an eye. Another product may come on the market that replaces the previous item, or something may happen that causes people to change their opinion of a product. Businesses are constantly adjusting their strategies to increase the demand for products.
Sometimes governments or companies may place artificially low ceilings on price for various reasons. When this happens, demand will exceed supply, and eventually a product shortage will develop. A good example would be the Nintendo Wii video game system. When it was released, demand was huge, but Nintendo wanted the game system to be in a price-range that the average family could afford, so they didn't raise the price. A shortage developed immediately, and more than a year after its release, it was still very difficult to find one.
Describe the functions of prices in markets
Distributive function: for whom to produce, where to produce. Goods and resources are limited, but needs and wants are unlimited; so price will determine affordability and those with the buying power will have the limited
Allocative function: what, when, for whom to produce.
Signalling function: Prices signal the demand and supply situations .Shortages are reflected in high prices, and surpluses are reflected in lower prices.
Equilibrating function: prices facilitate matching of demand and supply therefore clearing the market.
Rationing function: Again a question of limited resources vs. unlimited wants.
Transmission function: Prices transmit information to various actors in the market thus enabling them to make informed decision on what and when to buy and sell.
Provision of incentive: prices act as incentives/disincentives to consumers and producers.
Enhancing marketing efficiency and performance: correct price signals will oil the marketing machine. However wrong signals on price will hinder smooth functioning of the market thus resulting in poor performance.
Determining decision making with respect to the following aspects:
Production system: what to produce, by whom, and where to produce.
Product market areas and market boundaries (ISOTIMS and the Law of market Areas).
Arbitrage and patterns of trade (Spatial trade patterns)
Temporal arbitrage (STORAGE) transportation and processing. However facilitating functions are composed of standardization, financing, risk bearing and market intelligence.
As the supply of oil diminishes, but demand remains strong, this pushes up the price.
As the price of oil rises it starts to change behaviour.
Consumers look for more fuel efficient engines. People keener to buy cars which have a better fuel efficiency.
People may start cycling rather than driving.
Firms have incentives to develop cars which don't run on petrol. (hydrogen powered cars, solar cars e.t.c)
The higher price of petrol may create incentives to look for more oil reserves in previously untapped areas (e.g. Antarctic where it is expensive to extract oil). Therefore, in response to the higher price, supply may increase over time.
Explain the role of business in society
Supplying goods & services that consumers cannot obtain themselves Creating jobs for consumers Continually developing goods and services Investing in new technologies & employee's skills Building up and spreading international standards Spreading good practice such as workplace safety Contributing back towards the community
describe types of business activities
Primary businesses and industries are those which extract (i.e. mine, quarry, farm, fish or drill) things normally provided by nature, e.g.
~ fish from the sea;
~ metal from the earth;
~ food from the land.
They produce raw materials in the form of oil, iron, coal or limestone, which are used to make other products. Also, they may also produce final products such as fish or fruit.
Secondary businesses and industries are those involved in manufacturing products. That is, they turn the raw materials produced by the primary industries into things that can be sold and used. e.g.
~ metal into cars
~ wood into furniture
~ wheat into bread
Tertiary businesses and industries are those involved in selling goods and services. For example, banks, window cleaners, hairdressers and lawyers do not make things but instead sell a service or their expertise. Other examples include transport, insurance and places of entertainment such as leisure centres and cinemas.
Chain of Production
Primary, Secondary and Tertiary businesses and industries all depend upon each other; one cannot exist without the other. There is a chain of production which links all 3 kinds of activity. For example, the chain of production for a wooden chair might be:
Forester .>>>> Furniture Manufacturer >>>> Furniture Shop
and the chain of production for a woolen sweater might be:
Sheep Farmer >>>> Knitter >>>> Market Stall
explain the organization design of business
The manner in which a management achieves the right combination of differentiation and integration of the organization's operations, in response to the level of uncertainty in its external environment.
Differentiation refers to the subdivision of functional or departmental units, each concentrating on a particular aspect of the organization's operations. Integration refers to the linking of differentiated units to achieve unity of effort in working toward organization's goals. In times of high uncertainty, greater organizational effectiveness is achieved through high differentiation coupled with high integration. In times of low uncertainty, low differentiation and low integration are more effective. See also organizational structure.
discuss the global environment in which businesses operate
The global business environment can be defined as the environment in different sovereign countries, with factors exogenous to the home environment of the organization, influencing decision making on resource use and capabilities. The global business environment can be classified into the external environment and the internal environment (This book will focus primarily on the external environment.) The external environment includes the social, political, economic, regulatory, tax, cultural, legal, and technological environments.
To function effectively and efficiently, companies operating internationally must understand the social environment of the host country they are operating in. Today there are thousands of MNCs which operate in many parts of the globe. Such companies should acquaint themselves with the language and culture of the country in which they are operating.
describe factors that affect the business environment
The internal business environment includes factors within the organization that impact the approach and success of your operations. The external environment consists of a variety of factors outside your company doors that you typically don't have much control over. Managing the strengths of your internal operations and recognizing potential opportunities and threats outside of your operations are keys to business success.
explain the nature of business ethics
Defective, addictive and inherently dangerous products and services (e.g. Tobacco, alcohol, weapons, motor vehicles, chemical manufacturing, bungee jumping). Ethical relations between the company and the environment: pollution, environmental ethics, carbon emissions trading Ethical problems arising out of new technologies: genetically modified food, mobile phone radiation and health. Product testing ethics: animal rights and animal testing, use of economically disadvantaged groups (such as students) as test objects. To help you determine if your actions are ethical, compare them to these six basic guidelines for ethical business operations. • Laws • Rules & Procedures • Values • Conscience • Promises • Heroes Rule of thumb is, if you're trying to find a loophole in the law, it's unethical.
explain how organizations adapt to today's markets
Develop greater agility. SAP, the business management software company explains how companies can become agile, adaptive organizations in a white paper, Responding Quickly To Changing Markets. SAP suggests that agile organizations have four characteristics: visibility, speed, flexibility and scalability. Visibility enables the organization to anticipate change. Speed is essential to develop and deliver innovative products and services, and strengthen market position. Flexibility means the organization can make rapid adjustments in response to changes in market demand. Scalability makes it possible to align people, resources and capacity with a changing environment.
Modify the strategy based on insight into the marketplace. Set up a process to monitor changes in the market and identify trends that might impact the organization. Analysts' reports and forecasts provide a useful starting point. Combine research information with company data to build a more specific picture. Ask the sales and customer service teams to report any significant changes in customer requirements. Arrange review meetings with major customers to discuss their changing needs and challenges.
Social Recruiting Guide
The Essential Guide To Developing A Social Recruiting Strategy. Free!
Demonstrate strong leadership. Harvard Business Publishing states that strong leadership is essential to market adaptation. Business leaders need the right tools and tactics so that they can align the business with current corporate strategy, adapt quickly to changing market conditions and motivate their people.
Create a more flexible workforce. Market change may require people with different skills or more people with the same skills. To bypass the standard recruitment, training and induction process, organizations can use a variety of temporary solutions. Hiring contractors for fixed terms or using a resourcing service on a more flexible basis can provide high-caliber staff to meet short- or medium-term needs. Technology marketing agency Wilson Miller describes the benefits of a managed resourcing service where the resourcing company select, train and support specialists who work on the client's team for the duration of a project.
Utilize cloud computing to scale information technology resources. Market change may require a significant increase in computing resources to deal with increased demand. To avoid the time lag associated with internal investment, an organization can utilize cloud computing -- renting additional capacity on massive servers based in data centers run by external service providers. This provides immediate access to essential resources and reduces time to market for new business opportunities.
Build a network of trusted partners. If an organization cannot meet changing market demand from its own resources, it can work with partners who offer suitable products, technology or manufacturing capacity. Identify each partner's strengths and set up contingency plans to identify the fastest route to market through collaboration.
explain types of economic systems
Economic systems help keep the world economy balanced and controlled. There are many types of economic systems but there are 4 basic classes. In the market economy, persons own and operate different factions of production. Next, we have the command economy which is when the government owns and operates all of the factions of production. Third is the traditional economy whose basis is culture and tradition based on agriculture and hunting. Then, we have the mixed economy which is a system where both market and command economy systems are used or featured.
explain the concept of private enterprise
Basis of a free market capitalist system, it is a business unit established, owned, and operated by private individuals for profit, instead of by or for any government or its agencies.
identify factors affecting a business's profit
1. The degree of competition a firm faces is important. If a firm has monopoly power then it has little competition, therefore demand will be more inelastic. This enables the firm to increase profits by increasing the price. However govt regulation may prevent monopolies abusing their power e.g. the OFT can stop firms colluding (to increase price)Regulators like OFGEM can limit the prices of Gas and Electricity firm
2. If the market is very competitive then profit will be low. This is because consumers would only buy from the cheapest firms. Also important is the idea of contestability. Market contestability is how easy it is for new firms to enter the market. If entry is easy then firms will always face threat of competition, even if it is just "hit and run competition" This will reduce profits.
3. The strength of demand is very important. For example demand will be high if the product is fashionable, e.g. mobile phone companies have been very profitable. However in recent months profits for mobile phone companies have fallen because the high profit encouraged over supply. Products which have falling demand like Spam (tinned meat) will lead to low profit for the company
4. The State of the economy. If there is economic growth then there will be increased demand for most products especially luxury products with a high YED. For example manufacturers of luxury sports cars will benefit from economic growth but will suffer in times of recession.
5. A successful advertising campaign can increase demand and make the product more inelastic, however the increased revenue will need to cover the costs of the advertising. Sometimes the best methods are word of mouth. For example it was not necessary for YouTube to do much advertising.
6. Substitutes, if there are many substitutes or substitutes are expensive then demand for the product will be higher. Similarly complementary goods will be important for the profits of a company.
7. The other aspect of profitability is the degree of costs. An increase in costs will decrease profits, this could include labour costs, raw material costs and cost of rent. For example a devaluation of the exchange rate would increase cost of imports therefore companies who imported raw materials would face an increase in costs. Alternatively if the firm is able to increase productivity by improving technology then profits should increase. If a firm imports raw materials the exchange rate will be important. An depreciation making imports more expensive. However depreciation of the exchange rate is good for exporters who will become more competitive.
8. A firm with high fixed costs will need to produce a lot to benefit from economies of scale and produce on the minimum efficient scale, otherwise average costs will be too high. For example in the steel industry we have seen a lot of rationalisation where medium sized firms have lost their competitiveness and had to merger with others.
9. If a firm is not dynamically efficient then over time costs will increase. For example state monopolies often had little incentive to cut costs, e.g. get rid of surplus labour. Therefore before privatisation they made little profit, however with the workings of the market they became more efficient.
10. If the firm can price discriminate it will be more efficient. This involves charging different prices for the same good, so the firm can charge higher prices to those with inelastic demand. This is important for airline firms.
determine factors affecting a business's risk
Businesses can face a variety of financial risks. Some of these risks include the ability to get loans from the bank, which depends on credit history, or funding from other sources, such as joint venture capitalists and private equities; foreign currency exchange rates for business involved in international markets and, most importantly, the financial risk of making enough money to keep the proverbial lights on. Additionally, established businesses that trade publicly incur a lot of additional financial risk by putting themselves at the mercy of the stock market, as the value of their company can move wildly from day to day. Liquidity also is a financial risk. A company may be insolvent, though it has enough money to cover its debts and operations if it cannot transform its assets into cash.
Technology risk exists in businesses that develop new products or otherwise rely on technology for their central operations. New products often require new, unproven technologies, and in order to be a first mover in this field, businesses must take on this risk. Similarly, if your business relies on certain technologies, there is the risk that the technology particular to you will become outdated. Many outside investors will take on companies with financial risk, but it is hard to attract outside investors if your company is exposed to significant technological risk.
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A good management team can make money with a bad product, where a poor management team can lose money with a good product. Having the right people in charge of a company makes all the difference. This is part of the reason why larger companies invest so much money in human resources. Many successful investors, such as Warren Buffet, look at the management team almost exclusively when considering various investments.
Businesses incur government risk in one of two ways. First, if the business has operations in a foreign country, it runs the risk of political instability where the government could kick them out of its country and take the business's assets or more. Secondly, domestic companies face the risk of varying regulatory environments. For example, the Gulf of Mexico drilling moratorium is a governmental risk that has recently affected oil companies involved in that area.
explain the concept of competition
Economics: Rivalry in which every seller tries to get what other sellers are seeking at the same time: sales, profit, and market share by offering the best practicable combination of price, quality, and service. Where the market information flows freely, competition plays a regulatory function in balancing demand and supply.
determine the relationship between government and business
Businesses are completely reliant on government to protect not just the legal fiction of corporate personhood, but also corporate property, and contracts. Our system of courts and police are well designed to adjudicate contract disputes and property rights, and less well designed to protect people or determine where justice lies. Corporations rely on civil order, the police, courts and military to protect their property
Anti-trust policy: originally intended as a consumer protection measure, has become cover for consumer rip-offs.
describe the nature of taxes
A fee charged ("levied") by a government on a product, income, or activity. If tax is levied directly on personal or corporate income, then it is a direct tax. If tax is levied on the price of a good or service, then it is called an indirect tax. The purpose of taxation is to finance government expenditure. One of the most important uses of taxes is to finance public goods and services, such as street lighting and street cleaning. Since public goods and services do not allow a non-payer to be excluded, or allow exclusion by a consumer, there cannot be a market in the good or service, and so they need to be provided by the government or a quasi-government agency, which tend to finance themselves largely through taxes.
explain the concept of productivity
A measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.
Productivity is computed by dividing average output per period by the total costs incurred or resources (capital, energy, material, personnel) consumed in that period. Productivity is a critical determinant of cost efficiency.
analyze impact of specialization/division of labor on productivity
Productivity is a measure of economic output relative to the amount of labor involved. For example, if a factory can make 100 cars every day and then finds a way to increase production to 110 cars per hour without needing more workers or longer shifts, it has increased its productivity. By the same token, if the factory only makes 90 cars in one week, its productivity has decreased for that week.
Labor Specialization and Productivity
Having workers perform specialized labor tasks is one of the factors that can lead to increased productivity. Division of labor can lead to a large increase in efficiency for two key reasons. Allocational efficiency makes the best use of a particular worker's skill. For example, a worker who is good with numbers can do a better job on inventory control than one who is not. Technical efficiency arises from a division of labor by reducing the transition time between tasks. A worker who completes painting a car, for example, does not then have to put down his painting tools and pick up the tools needed to assemble the car, as that job goes to a different worker.
explain the concept of organized labor and business
An association of workers united as a single, representative entity for the purpose of improving the workers' economic status and working conditions through collective bargaining with employers. Also known as "unions". There are two types: the horizontal union, in which all members share a common skill, and the vertical union, composed of workers from across the same industry.
The union formation process in most countries is regulated by a government agency, such as the National Labor Relations Board in the United States. The group of employees wanting to form a union usually need a set amount of signatures, this amount is dependent on the jurisdiction it wants to form in. If enough signatures are obtained there is a vote by all employees and if passed the union will negotiate on their behalf with the employers.
explain the impact of the law on diminishing returns
A law of economics stating that, as the number of new employees increases, the marginal product of an additional employee will at some point be less than the marginal product of the previous employee.
Consider a factory that employs laborers to produce its product. If all other factors of production remain constant, at some point each additional laborer will provide less output than the previous laborer. At this point, each additional employee provides less and less return. If new employees are constantly added, the plant will eventually become so crowded that additional workers actually decrease the efficiency of the other workers, decreasing the production of the factory.
discuss the measure of consumer spending as an economic indicator
The amount of money spent by households in an economy. The spending includes durables, such as washing machines, and nondurables, such as food. It is also known as consumption, and is measured monthly. John Maynard Keynes considered consumer spending to be the most important determinant of short-term demand in an economy.
Often these monthly numbers are compared to the previous month or the same month of the previous year. When the government wants to stimulate the economy it will attempt to increase consumer spending. This can be done by tax cuts or even through giving out a lump sum or money. The increased income is expected to cause individuals to buy more, which means companies will experience higher revenues and can potentially hire more workers.
explain the concept of Gross Domestic Product (GDP)
The gross domestic product (GDP) is one the primary indicators used to gauge the health of a country's economy. It represents the total dollar value of all goods and services produced over a specific time period - you can think of it as the size of the economy. Usually, GDP is expressed as a comparison to the previous quarter or year. For example, if the year-to-year GDP is up 3%, this is thought to mean that the economy has grown by 3% over the last year.
Measuring GDP is complicated (which is why we leave it to the economists), but at its most basic, the calculation can be done in one of two ways: either by adding up what everyone earned in a year (income approach), or by adding up what everyone spent (expenditure method). Logically, both measures should arrive at roughly the same total.
The income approach, which is sometimes referred to as GDP(I), is calculated by adding up total compensation to employees, gross profits for incorporated and non incorporated firms, and taxes less any subsidies. The expenditure method is the more common approach and is calculated by adding total consumption, investment, government spending and net exports.
As one can imagine, economic production and growth, what GDP represents, has a large impact on nearly everyone within that economy. For example, when the economy is healthy, you will typically see low unemployment and wage increases as businesses demand labor to meet the growing economy. A significant change in GDP, whether up or down, usually has a significant effect on the stock market. It's not hard to understand why: a bad economy usually means lower profits for companies, which in turn means lower stock prices. Investors really worry about negative GDP growth, which is one of the factors economists use to determine whether an economy is i
discuss the impact of a nation's unemployment rates
-limits market, less people willing and able to buy
-affects businesses total revenues because they can't get as many people buying their products and will most likely have to lower the prices of their products (showing flexibility an adaptability to the consumer's needs)
describe the economic impact of inflation on business
The business will be affected as the value of all required raw materials like oil, steel and copper increases. This will also have impact on turnover as there will be a fall in business due to increased prices. Inflation in the UK affects the businesses that try and sell abroad. Inflation makes it harder for businesses to sell goods and services because they are less competitive due to their high prices.
explain the economic impact of interest-rate fluctuations
-Merchandise trade: This refers to a nation's international trade, or its exports and imports. In general terms, a weaker currency will stimulate exports and make imports more expensive, thereby decreasing a nation's trade deficit (or increasing surplus) over time.
-Capital flows: Foreign capital will tend to flow into countries that have strong governments, dynamic economies and stable currencies. A nation needs to have a relatively stable currency to attract investment capital from foreign investors. Otherwise, the prospect of exchange losses inflicted by currency depreciation may deter overseas investors.
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determine the impact of business cycles on business activities
The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (GDP) and other macroeconomic variables. A business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. Economists note, however, that complete business cycles vary in length. The duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. Some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. But the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.
explain the nature of global trade
International trade is the exchange of goods and services between countries. This type of trade gives rise to a world economy, in which prices, or supply and demand, affect and are affected by global events. Political change in Asia, for example, could result in an increase in the cost of labor, thereby increasing the manufacturing costs for an American sneaker company based in Malaysia, which would then result in an increase in the price that you have to pay to buy the tennis shoes at your local mall. A decrease in the cost of labor, on the other hand, would result in you having to pay less for your new shoes.
Trading globally gives consumers and countries the opportunity to be exposed to goods and services not available in their own countries. Almost every kind of product can be found on the international market: food, clothes, spare parts, oil, jewelry, wine, stocks, currencies and water. Services are also traded: tourism, banking, consulting and transportation. A product that is sold to the global market is an export, and a product that is bought from the global market is an import. Imports and exports are accounted for in a country's current account in the balance of payments.
describe the determinants of exchange rates and their effects on the domestic economy
1. Differentials in Inflation
As a general rule, a country with a consistently lower inflation rate exhibits a rising currency value, as its purchasing power increases relative to other currencies. During the last half of the twentieth century, the countries with low inflation included Japan, Germany and Switzerland, while the U.S. and Canada achieved low inflation only later. Those countries with higher inflation typically see depreciation in their currency in relation to the currencies of their trading partners. This is also usually accompanied by higher interest rates. (To learn more, see Cost-Push Inflation Versus Demand-Pull Inflation.)
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2. Differentials in Interest Rates
Interest rates, inflation and exchange rates are all highly correlated. By manipulating interest rates, central banks exert influence over both inflation and exchange rates, and changing interest rates impact inflation and currency values. Higher interest rates offer lenders in an economy a higher return relative to other countries. Therefore, higher interest rates attract foreign capital and cause the exchange rate to rise. The impact of higher interest rates is mitigated, however, if inflation in the country is much higher than in others, or if additional factors serve to drive the currency down. The opposite relationship exists for decreasing interest rates - that is, lower interest rates tend to decrease exchange rates. (For further reading, see What Is Fiscal Policy?)
3. Current-Account Deficits
The current account is the balance of trade between a country and its trading partners, reflecting all payments between countries for goods, services, interest and dividends. A deficit in the current account shows the country is spending more on foreign trade than it is earning, and that it is borrowing capital from foreign sources to make up the deficit. In other words, the country requires more foreign currency than it receives through sales of exports, and it supplies more of its own currency than foreigners demand for its products. The excess demand for foreign currency lowers the country's exchange rate until domestic goods and services are cheap enough for foreigners, and foreign assets are too expensive to generate sales for domestic interests. (For more, see Understanding The Current Account In The Balance Of Payments.)
4. Public Debt
Countries will engage in large-scale deficit financing to pay for public sector projects and governmental funding. While such activity stimulates the domestic economy, nations with large public deficits and debts are less attractive to foreign investors. The reason? A large debt encourages inflation, and if inflation is high, the debt will be serviced and ultimately paid off with cheaper real dollars in the future.
In the worst case scenario, a government may print money to pay part of a large debt, but increasing the money supply inevitably causes inflation. Moreover, if a government is not able to service its deficit through domestic means (selling domestic bonds, increasing the money supply), then it must increase the supply of securities for sale to foreigners, thereby lowering their prices. Finally, a large debt may prove worrisome to foreigners if they believe the country risks defaulting on its obligations. Foreigners will be less willing to own securities denominated in that currency if the risk of default is great. For this reason, the country's debt rating (as determined by Moody's or Standard & Poor's, for example) is a crucial determinant of its exchange rate.
5. Terms of Trade
A ratio comparing export prices to import prices, the terms of trade is related to current accounts and the balance of payments. If the price of a country's exports rises by a greater rate than that of its imports, its terms of trade have favorably improved. Increasing terms of trade shows greater demand for the country's exports. This, in turn, results in rising revenues from exports, which provides increased demand for the country's currency (and an increase in the currency's value). If the price of exports rises by a smaller rate than that of its imports, the currency's value will decrease in relation to its trading partners.
6. Political Stability and Economic Performance
Foreign investors inevitably seek out stable countries with strong economic performance in which to invest their capital. A country with such positive attributes will draw investment funds away from other countries perceived to have more political and economic risk. Political turmoil, for example, can cause a loss of confidence in a currency and a movement of capital to the currencies of more stable countries.
The exchange rate of the currency in which a portfolio holds the bulk of its investments determines that portfolio's real return. A declining exchange rate obviously decreases the purchasing power of income and capital gains derived from any returns. Moreover, the exchange rate influences other income factors such as interest rates, inflation and even capital gains from domestic securities. While exchange rates are determined by numerous complex factors that often leave even the most experienced economists flummoxed, investors should still have some understanding of how currency values and exchange rates play an important role in the rate of return on their investments.
discuss the impact of cultural and social environments on global trade
-cultural differences, have to make sure you respect them and don't offend buyer/seller
describe the nature of emotional intelligence
Emotional intelligence is the ability to identify, assess, and control the emotions of oneself, of others, and of groups. It can be divided into ability EI and trait EI.
explain the concept of self esteem
overall emotional evaluation of self worth
recognize personal baises and stereotypes
assess personal strengths and weaknesses
identify desirable personality traits important to business
Attitude - The capacity to stay optimistic and positive. The #1 quality for career success is "Championship Thinking."
Enthusiastic - The possession of intense and eager interest in a subject or cause. It is an energy that often inspires others.
Ethical - The quality of having and living by a code of sound moral principles.
Goal Focused - The ability to have clarity on the objectives that you strive for in your personal and professional life.
Listener - The capacity to suspend your own agenda and deliberately and empathically allow others to be heard.
Networked - A well developed circle of influence of interconnected positive relationships.
Persistent - The ability to endure in the face of adversity. It is a patient and relenting effort to achieve despite difficulties.
Self-Aware - The understanding and knowledge of who you are including your skills, values, interests, behaviors and character.
Self-Confident - The firm belief in your abilities. Seek professional help if this is an area of weakness - it will be worth it.
Self-Discipline - The ability to control and restrain impulses. Energy then can be focused and channeled toward your ambitions.
It is impossible to limit the list to just 10, and so here are 25 more that represent my second tier: Adaptive, Analytical Mind, Articulate, Balanced, Collaborative, Committed, Courageous, Creative, Decisive, Detail-Oriented, Emotionally Competent, Friendly, Hard Working, Humorous, Intelligent, Organized, prepared, Productive, Relationship Oriented, Responsible, Sincere, Self-Sacrificing, Trustworthy, Visionary, Wise
exhibit self confidence
demonstrate interest and enthusiasm
demonstrate responsible behavior
demonstrate honesty and integrity
demonstrate ethical work habits
exhibit positive attitude
demonstrate self control
explain the use of feedback for personal growth
adjust to change
respect the privacy of others
show empathy for others
exhibit cultural sensitivity
-understand what is culturally acceptable to client, boss, buyer, etc and show respect for their culture by not doing anything that would offend them
explain ethical considerations in providing information
-providing accurate information on product/service
-not lying about return/guarantee policies, what the product can do, what it promises you etc
demonstrate negotiation skills
use appropriate assertiveness
use conflict-resolution skills
Listen, Then Speak Out
Believe it or not, just listening to an employee's issue is the first and most important step in resolving conflict. You should simply listen to all parties involved to completely understand the nature of conflict, and then start troubleshooting solutions.
Gather the Group
As a leader, you'll need to arrange a meeting with all involved parties to discuss the issue. Give everyone a chance to speak; this is a good opportunity to hear all sides and gain a full understanding of the conflict. Having a group meeting may also expedite a resolution that will satisfy everyone.
Don't take sides! In a leadership position, you shouldn't display any sort of opinion that favors one person over another. If you are partial towards one person, try to access the situation from all sides to come up with a fair and reasonable solution.
Do Not Postpone Conflict Resolution
Address the conflict immediately. Otherwise, the situation could escalate and could affect employee performance. Just make sure not to address the situation too quickly or without careful consideration, as your decision will directly affect the demeanor and performance of your staff.
Encouragement and motivation are powerful. Remind your staff of successful projects that required teamwork to complete. This is one of the most effective conflict resolution techniques and will really make the employees think about the importance of working in a team.
As stated above, the power of encouragement and motivation can be multiplied when it is spread to recognize those who are modeling the teamwork and cooperation that is desired within any conflict. Try to give suitable models in these instances because behavior modeling can be risky if there are elements in the model that are undesireable.
explain the nature of stress management
participate as a team member
use consensus-building skills
The process allows various stakeholders (parties with an interest in the problem or issue) to work together to develop a mutually acceptable solution.
Like a town meeting, consensus building is based on the principles of local participation and ownership of decisions. Ideally, the consensus reached will meet all of the relevant interests of stakeholders, who thereby come to a unanimous agreement. While everyone may not get everything they initially wanted, "consensus has been reached when everyone agrees they can live with whatever is proposed after every effort has been made to meet the interests of all stake holding parties."
motivate team members
explain the concept of leadership
determine personal vision
A Personal Vision Statement is a document that describes an individual's various aspects of life. The document gives details about a person's future plans and views. A Personal Vision Statement can act as a guideline to everyday activity.
develop an achievement orientation
Achievement Orientation refers to one's disposition regarding the cultivation and/or demonstration of ability. Most studies identify four distinct achievement profiles: learning oriented, work-avoidance oriented, performance and learning oriented, and performance and work-avoidance oriented. A learning-oriented individual is primarily concerned with improving his or her ability, and is generally inclined to apply great effort to do so. In contrast, a work-avoidant learner values that achievement that can be obtained with minimal effort, and does not consider achievement gained through hard work to be indicative of a person's intellectual worth. A performance- and learning-oriented person is more concerned with being positively evaluated than an individual who is learning-oriented. A performance-avoidance-oriented individual is concerned with cultivating an appearance of effortless achievement. A student's achievement orientation directly influences performance in the classroom. Learning-oriented students tend to appreciate most strongly the correlation between effort and success, and thus apply the greatest effort. There is evidence that as early as the first grade, students who attribute success to effort have higher literacy achievement scores. Performance-oriented students are more likely to employ superficial learning strategies and to seek help less frequently, and therefore such an orientation can hinder success. These students are also the most likely to engage in procrastination. An individual's achievement orientation has a significant impact on his or her cultivation of new skills, and thus has important implications for educators
enlist others in working toward a shared vision
treat others fairly at work
foster positive working relationships
maintain collaborative partnerships with colleagues
explain the impact of political relationships within an organization
Employees who do not believe in working hard depend on nasty politics to make their position secure at the workplace.
Employees play politics simply to come in the limelight and gain undue attention and appreciation from the seniors.
Politics refers to irrational behavior of the individuals at the workplace to obtain advantages which are beyond their control.
No body has ever gained anything out of politics; instead it leads to a negative ambience at the workplace.
Effects of politics on organization and employees:
Decrease in overall productivity
Politics lowers the output of an individual and eventually affects the productivity of the organization.
Common observation says that individuals who play politics at the workplace pay less attention to their work.
They are more interested in leg pulling and back biting. They spend most of their times criticizing their fellow workers.
As a result of politics at the workplace, employees fail to achieve targets within the stipulated time frame. Work gets delayed in such an organization.
Individuals find it difficult to concentrate on their work. They are more interested in spoiling the other person's image in front of the superiors.
An individual involved in politics is bound to make more mistakes as his focus is somewhere else.
Spoils the Ambience
Politics leads to a negative environment at the workplace.
It spoils the relationships amongst individuals. An individual playing politics at the organization is disliked by all.
Changes the Attitude of employees
Politics changes the attitude of the employees.
Even the serious employees lose interest in work and attend office just for the sake of it.
Internal politics do not allow employees to give their hundred percent at work.
No matter how much hard work an employee puts in, it goes unnoticed in a politically driven organization.
A non performer can be the apple of his boss's eye simply due to politics, thus demotivating the performers.
Discussions are essential at the workplace to extract the best out of employees. Evaluating the pros and cons of an idea always helps in the long run. Employees playing politics always look for an opportunity to tarnish the image of the fellow workers.
Employees feel demotivated when they are not rewarded suitably or someone who has not worked hard gets the benefits due to mere politics.
It is rightly said that problems evaporate if discussed. Individuals find it difficult to confide in any of their fellow workers due to the fear of secrets getting leaked.
Politics increases the stress level of the employees. Individuals are not machines who can work continuously for 8-9 hours without talking to others. It is important to have friends at the workplace who help you when needed.
Individuals fail to trust each other.
Employees indulged in politics manipulate information and it is never passed on in its desired form.
Superiors get a wrong picture of what is actually happening in the organization.
A wrong person walks away with the credit in an organization where employees are indulged in politics.
explain forms of financial exchange
cash, credit, debit, electronic funds transfer, etc
identify types of currency
paper money, coins, banknotes, government bonds, treasury notes
describe functions of money
medium of exchange, unit of measure, store of value
describe sources of income
wages/salaries, interest, rent, dividends, transfer payments, etc
explain the time value of money
The idea that money available at the present time is worth more than the same amount in the future due to its potential earning capacity. This core principle of finance holds that, provided money can earn interest, any amount of money is worth more the sooner it is received.
Also referred to as "present discounted value".
Everyone knows that money deposited in a savings account will earn interest. Because of this universal fact, we would prefer to receive money today rather than the same amount in the future.
For example, assuming a 5% interest rate, $100 invested today will be worth $105 in one year ($100 multiplied by 1.05). Conversely, $100 received one year from now is only worth $95.24 today ($100 divided by 1.05), assuming a 5% interest rate.
explain the purposes and importance of credit
The purpose and importance of credit is that it shows how financially responsible you are. For loans credit history is important.
explain legal responsibilities associated with financial exchange
A law which requires an individual to prove that he or she is able to pay for damages resulting from an accident. A financial responsibility law does not specifically require the individual to have insurance coverage; instead, the law requires the individual to be able to demonstrate the financial capacity to pay, even if the individual is not at fault. This type of law is commonly associated with automobiles.
Financial responsibility laws exist because not all states have a compulsory insurance law. However, many states consider an individual with an insurance policy to be compliant with a financial responsibility law, since most insurance policies have a minimum coverage that meets the state standard.
explain the nature of financial needs
college, retirement, wills, insurance
set financial goals
Financial goals are not "hopes" but goals that are planned for thoroughly Financial goals state: What to plan to accomplish? Should be concise and realistic What resources are required? Step-by-step instructions on how to achieve gals How much time is required? Financial planning is critical to businesses Provide adequate and reasonable time to complete Planning how to fit the goal into your overall budget Maximize profits Determine : assets & liabilities ( ex. Loans) Break-even point Reduce existing costs Develop personal budget
develop personal budget
explain the nature of tax liabilities
The total amount of tax that an entity is legally obligated to pay to an authority as the result of the occurrence of a taxable event. Tax liability can be calculated by applying the appropriate tax rate to the taxable event's tax base. Taxable events include, but are not limited to, annual income, the sale of an asset, a fiscal year-end or an inheritance.
Investopedia explains 'Tax Liability'
A tax liability is a legal claim on assets. Should an entity default on paying its taxes, the governing authority may foreclose on the delinquent account, or take out a lien or encumbrance on an asset.
interpret a pay stub
1. Look at the header of your pay check stub. This will show your place of employment and its address, as well as information regarding the company that processes your place of employment's payroll. If something goes wrong with the deposit of your check, it is likely caused by the payroll company. Normally, the check number will also be listed prominently. This is extremely important for your own personal records and when balancing your checkbook.
2. Check your earnings. Perhaps the most important figure on your stub is the amount of the check. This is called the "net" pay, because it is the amount you receive after taxes and other deductions are made. The "gross" pay is the amount you actually earned from your employer before the aforementioned deductions.
3. Examine the federal taxes withheld. The first of these deductions are for taxes from the federal government, often abbreviated to "Fed Tax," "FT" or "FWT." The first column will be the federal taxes withheld for that particular pay period. The column next to it-usually labeled as "year" or "year to date" will be the amount of federal taxes withheld over the course of the entire financial year. These figures are appropriated based on the W-4 form you filled out when you were hired.
4. Note all other government withholdings. State and local taxes are listed similarly and are labeled as "St Tax," "ST" or "SWT." These taxes are appropriated based on the municipality, county and state where you live. Again, both the amount withheld on that particular paycheck and the amount withheld over the fiscal year will be shown.
5. See what your Social Security and Medicare withholdings are. The last of the standard government deductions listed on your paycheck is for Social Security and Medicare. Social Security taxes are usually labeled as "FICA," "SS," "SSWT" or "OASDI." Medicare, on the other hand, is labeled as "MWT" or "Med." These taxes actually accumulate over the course of your entire employment history and will be reciprocated once you become eligible to receive Social Security and/or Medicare benefits.
6. Track your benefits. If you receive health or life insurance from your employer, this may also appear on your paycheck stub. If you have a retirement plan with your company, such as a 401k, this will likely be shown on your paycheck stub as well.
prepare bank account documents
checks, deposit/withdrawal slips, endorsements, etc
maintain financial records
Maintaining financial records is very important for the effective planning and management of your micro-business, as well as making sound business decisions. You may also be required to present financial and performance records to banks, financial institutions and other potential investors, in order to provide a snapshot of the business. There are also legal requirements that relate to record keeping. Therefore, keeping and maintaining up-to-date records in an orderly manner is very essential to managing your micro-business.
It is required by the Australian Taxation Office that business records and documents that explain all transactions are kept and retained for at least five years. These records are required to be in English or in a form that tax officers can understand in order to determine your tax liability.
The records that you are required to keep include:
Sales and expense invoices
Sales and expense receipts
Cash register tapes
Credit card statements
Bank account statements
Employee records such as copies of tax file number declarations, wages books, time sheets and superannuation records
You may also need to keep the following specific income tax records for each financial year:
Motor vehicle expenses, including logbooks
Debtors and creditors lists
Records of depreciating assets
Records of any use of any business purchases or assets for private purposes
Records of assets for capital gains tax purposes[1
read and reconcile bank statements
To reconcile a bank account means the task or process of tracking or looking for money spent from a certain account and then making sure it is all accounted for.
demonstrate wise use of credit
-make sure you can afford what you are buying
-start with buying small purchases that you can definitely pay off and put the money aside so you don't spend it before your bill comes
-practice self discipline, learn how to say no
validate credit history
not gonna have this
protect against identity theft
not gonna have this
prepare personal income tax forms
Income tax forms are the official government documents you're required to fill out when you pay your taxes. Generally, the more complex your finances are the more tax forms you may need to fill out. The most common tax forms used are the IRS Form 1040, 1040A and 1040EZ for reporting and paying federal income taxes. Each state and city also creates their own tax forms, but oftentimes they are modeled after the federal ones.
describe types of financial-services providers
Investment advisors: gives advice about securities Broker: sells and buys securities Financial Planners: Provides comprehensive financial plans ATM Bank: Owned by stockholders, for profit Check Cashing: Provides checks for free Credit union: not-for-profit Insurance company Investment bank
discuss considerations in selecting financial-services provider
explain types of investments
-ownership investments (stocks, business, real estate, precious objects (products bought with the intention of reselling))
-lending investments (savings account, bonds)
-cash equivalents (investments that are easy to convert back to cash, as good as cash)
describe the concept of insurance
A promise of compensation for specific potential future losses in exchange for a periodic payment. Insurance is designed to protect the financial well-being of an individual, company or other entity in the case of unexpected loss. Some forms of insurance are required by law, while others are optional. Agreeing to the terms of an insurance policy creates a contract between the insured and the insurer. In exchange for payments from the insured (called premiums), the insurer agrees to pay the policy holder a sum of money upon the occurrence of a specific event. In most cases, the policy holder pays part of the loss (called the deductible), and the insurer pays the rest. Examples include car insurance, health insurance, disability insurance, life insurance, and business insurance.
explain the nature of risk management
The process of identification, analysis and either acceptance or mitigation of uncertainty in investment decision-making. Essentially, risk management occurs anytime an investor or fund manager analyzes and attempts to quantify the potential for losses in an investment and then takes the appropriate action (or inaction) given their investment objectives and risk tolerance. Inadequate risk management can result in severe consequences for companies as well as individuals. For example, the recession that began in 2008 was largely caused by the loose credit risk management of financial firms.
Simply put, risk management is a two-step process - determining what risks exist in an investment and then handling those risks in a way best-suited to your investment objectives. Risk management occurs everywhere in the financial world. It occurs when an investor buys low-risk government bonds over more risky corporate debt, when a fund manager hedges their currency exposure with currency derivatives and when a bank performs a credit check on an individual before issuing them a personal line of credit.
describe the need for financial information
Financial information is very important in any field of operation where decisions are made. It is almost impossible to run a business with no prior knowledge of financial management. Even the local grocer needs to understand, analyze and make financial statements and accounting reports.
explain the concept of accounting
Rules of accounting that should be followed in preparation of all accounts and financial statements. The four fundamental concepts are
(1) Accruals concept: revenue and expenses are recorded when they occur and not when the cash is received or paid out;
(2) Consistency concept: once an accounting method has been chosen, that method should be used unless there is a sound reason to do otherwise;
(3) Going concern: the business entity for which accounts are being prepared is in good condition and will continue to be in business in the foreseeable future;
(4) Prudence concept (also conservation concept): revenue and profits are included in the balance sheet only when they are realized (or there is reasonable 'certainty' of realizing them) but liabilities are included when there is reasonable 'possibility' of incurring them.
Other concepts include
(5) Accounting equation: total assets equal total liabilities plus owners' equity;
(6) Accounting period: financial records pertaining only to a specific period are to be considered in preparing accounts for that period;
(7) Cost basis: asset value recorded in the account books should be the actual cost paid, and not the asset's current market value;
(8) Entity: accounting records reflect the financial activities of a specific business or organization, not of its owners or employees;
(9) Full disclosure: financial statements and their notes should contain all relevant data;
(10) Lower of cost or market value: inventory is valued either at cost or the market value (whichever is lower);
(11) Maintenance of capital: profit can be realized only after capital of the firm has been restored to its original level, or is maintained at a predetermined level;
(12) Matching: transactions affecting both revenues and expenses should be recognized in the same accounting period;
(13) Materiality: minor events may be ignored, but the major ones should be fully disclosed;
(14) Money measurement: the accounting process records only activities that can be expressed in monetary terms (with some exceptions);
(15) Objectivity: financial statements should be based only on verifiable evidence, including an audit trail;
(16) Realization: any change in the market value of an asset or liability is not recognized as a profit or loss until the asset is sold or the liability is paid off;
(17) Unit of measurement: financial data should be recorded with a common unit of measure (dollar, pound sterling, yen, etc.).
Also called accounting conventions, accounting postulates, or accounting principles.
explain the need for accounting standards
Accounting Standards are exceedingly useful because they attempt to standardize and regulate accounting definitions, assumptions, and methods. The accounting standards enable us to assume that there is consistency from year to year in the methods used to prepare a company's financial statements. Although variations may exist, we can make reasonably confident conclusions when comparing one company to another, or comparing one company's financial statistics to the statistics for its industry, thanks to accounting standards. Without the standards, users of financial statements such as the public, commercial banks and other statutory institutions would need to learn the accounting rules of each and every client or company they deal with and comparisons between these companies would be very difficult.
discuss the role of ethics in accounting
Accounting is the process of describing business processes in numbers. For a company's accounting to truly represent what is going on in its financial arena, its bookkeeping numbers must be honest and accurate. Honesty and accuracy in accounting are ethical as well as financial issues. Bookkeepers and accountants have a responsibility to represent information in ways that genuinely represent what is going on in the business. Failure to do so can have consequences for business owners, stakeholders and tax reporting agencies.
explain the use of technology in accounting
The advent of the mainframe computer and now the personal computer have greatly increased the ability for automation in gathering, maintaining, analyzing and reporting accounting data. Initial programs gathered data into one place. This removed some of the risk of bad information being recorded and allowed accountants to utilize better data, trading the day-to-day recording processes for additional duties each month, a prime example of technology reducing the necessary workforce.
Then the miracle that is the spreadsheet came into being. All of a sudden, accountants and managers were able to manipulate data in a multitude of ways to present information much more quickly than ever before. Mathematics and statistical analysis were now much easier to incorporate in reporting on financial results. Most companies now use some sort of spreadsheet technology within their accounting functions. Virtually all new personal computers come with a pre-installed spreadsheet program.
explain the legal considerations for accounting
i doubt we need this
describe the nature of cash flow statements
The purpose of the cash flow statement or statement of cash flows is to provide information about a company's gross receipts and gross payments for a specified period of time.
The gross receipts and gross payments will be reported in the cash flow statement according to one of the following classifications: operating activities, investing activities, and financing activities. The net change from these three classifications should equal the change in a company's cash and cash equivalents during the reporting period. For instance, the cash flow statement for the calendar year 2013 will report the causes of the change in a company's cash and cash equivalents between its balance sheets of December 31, 2012 and December 31, 2013.
In addition to the cash amounts being reported as operating, investing, and financing activities, the cash flow statement must disclose other information, including the amount of interest paid, the amount of income taxes paid, and any significant investing and financing activities which did not require the use of cash.
The statement of cash flows is to be distributed along with a company's income statement and balance sheet.
explain the nature of balance sheets
The balance sheet lists a company's financial resources and business obligations. Elements of a balance sheet include assets, liabilities and shareholders' equity. A firm's liabilities and shareholders' equity are thought of as the elements needed to acquire assets. The balance sheet is run for a specific date, not a period of time. When a balance sheet is produced, it will show in real time all of a company's assets, liabilities and equity up to that date. Assets are listed on one side of the balance sheet and normally have a debit balance. Under assets are accounts known as contra assets, which have a credit balance. Contra assets include allowance for doubtful accounts and accumulated depreciation. Liabilities and shareholders' equity is listed on the other side of the balance sheet. Liabilities normally have credit balances; contra liabilities have debit balances. Contra liabilities include discounts on notes payable and discounts on bonds payable.
describe the nature of income statements
A summary of a management's performance as reflected in the profitability (or lack of it) of an organization over a certain period. It itemizes the revenues and expenses of past that led to the current profit or loss, and indicates what may be done to improve the results.
In contrast to a balance sheet, an income statement depicts what happened over a month, quarter, or year. It is based on a fundamental accounting equation (Income = Revenue - Expenses) and shows the rate at which the owners equity is changing for better or worse. Along with balance sheet and cash flow statement it forms the basic set of financial information required to manage an organization. Also called earnings report, operating statement, or profit and loss account.
explain the role of finance in business
The goal of any finance function is to achieve three benefits: business support service, lowest costs and effective control of the environment. Money is the lifeblood of a business and finance is the nerve center. Finance is required to promote or create a business, gain assets, develop products, run market surveys, advertise. The conventional view of finances focuses on being reactive, efficient, quantitative and risk averse. New innovative views focus on being vision-oriented, opportunity and growth focused, intuitive and risk-taking.
discuss the role of ethics in finance
Creative accounting, earnings management, misleading financial analysis. Insider trading, securities fraud, bucket shops, forex scams: concerns (criminal) manipulation of the financial markets. Executive compensation: concerns excessive payments made to corporate CEO's and top management. Bribery, kickbacks, facilitation payments: while these may be in the (short-term) interests of the company and its shareholders, these practices may be anti-competitive or offend against the values of society Enron
explain the legal considerations for finance
Some laws are specifically designed to address unethical actions of finance managers. For example, if a finance manager is aware of business activity that will affect a stock price and uses that information to buy or sell stocks for financial again, he has has broken a trust with his employer and broken laws established by the Securities and Exchange Commission (SEC). A finance manager who is aware that his company may be breaking the law may be held legally responsible for a crime.
describe the nature of budgets
discuss the nature of human resources management
The process of hiring and developing employees so that they become more valuable to the organization.
Human Resource Management includes conducting job analyses, planning personnel needs, recruiting the right people for the job, orienting and training, managing wages and salaries, providing benefits and incentives, evaluating performance, resolving disputes, and communicating with all employees at all levels. Examples of core qualities of HR management are extensive knowledge of the industry, leadership, and effective negotiation skills. Formerly called personnel management.
explain the role of ethics in human resources management
Discrimination issues include discrimination on the bases of age (ageism), gender, race, religion, disabilities, weight and attractiveness. See also: affirmative action, sexual harassment. Issues arising from the traditional view of relationships between employers and employees, also known as Atwill employment. Issues surrounding the representation of employees and the democratization of the workplace: union busting, strike breaking. Issues affecting the privacy of the employee: workplace surveillance, drug testing. Issues affecting the privacy of the employer: whistle-blowing. Issues relating to the fairness of the employment contract and the balance of power between employer and employee: slavery, indentured servitude, employment law. Occupational safety and health.
describe the use of technology in HRM
Technology in Human Resource (HR) management is another application of companies using hardware and software to aid human activities. Companies use all types of technology in human resource management. A few different roles for the technology can be hiring and selecting employees for interviews, managing employee paperwork or benefits, and securing sensitive employee files. Many different types of hardware or software are available for this purpose. Companies can either use an external software package or create their own, depending on their needs.
Many companies now use Internet-based employee applications or other technology in human resource management for finding new employees. A significant benefit for online applications is the existence of knockout questions. These questions prevent unqualified individuals from making it too far through the employee application process. For example, if a company desires a certain level of education, an answer about earned college degrees may appear on employee applications. Those who answer "no" to the question will not be included on the list of potential interviews for a company's open job position.
orient new employees
Reduce Startup Costs: Proper orientation can help the employee get up to speed much more quickly, thereby reducing the costs associated with learning the job.
Reduce Anxiety: Any employee, when put into a new, strange situation, will experience anxiety that can impede his or her ability to learn to do the job. Proper orientation helps to reduce anxiety that results from entering into an unknown situation.
Reduce Employee Turnover: Employee turnover increases as employees feel they are not valued, or are put in positions where they can't possibly do their jobs. Orientation shows that the organization values the employee, and helps provide the tools necessary for succeeding in the job.
Save Time for the Manager: The better the initial orientation, the less likely supervisors and co-workers will have to spend time teaching the employee.
Develop Realistic Job Expectations: It is important that employees learn as soon as possible what is expected of them, and what to expect from others, in addition to learning about the values and attitudes of the organization.
Well thought-out orientations celebrate the arrival of the new hire, integrate her into the team, and provide a comfortable forum for answering questions that extends beyond the first day.
Orientation Best Practices
Like the hiring process, the orientation process is one that should begin well before the new hire arrives for his first day. Here are several issues to keep in mind as you prepare to officially welcome your new employee.
Own the Process: Typically, new hire orientations are managed by junior level human resources staff, but these are not the people who should be responsible for assimilating a new employee. Orientations should be designed and run by you, the new hire's manager, because who better understands exactly what needs to be done to get this person up to speed? HR can have a standard one or two hour session to sign paperwork and go over corporate policies and benefits, but beyond that, your department should be running the show.
Involve High-Level Execs: Encourage the CEO or general manager to stop by your new employee's office, send a personal e-mail, or make a phone call welcoming the employee to the organization.
Plan a Special Outing: Take the team out to lunch on the new hire's first day, organize a dinner with other new employees and their spouses, or engage in a team building activity with current employees.
Make an Announcement: Place a welcome note and picture on the company Intranet, and if anyone reads the local paper or company e-newsletter, put a notice in to let everyone know about your new team member.
Get Creative with Their Office Space: Have your administrative assistant create a banner signed by the team, or hang a team picture on the wall.
Gift Them Little Extras: Send the new hire's spouse and kids first day welcome gifts, corporate products or cards to make them feel they are part of the team and to build support for the new company.
Set Up a Series of Peer-to-Peer Training Sessions: In addition to any official job training your new hire may need to complete, organize a series of meetings with team members who excel in particular areas. Encourage your new hire to seek out these team members to answer questions about their job duties.
Put a Standing Check-in On the Calendar: Ensuring that you meet with your new report at least once a week during the duration of her first three months of employment will positively direct her activities and catch potential issues early.
Assess information needs
obtain needed information efficiently
evaluate quality and source of info
apply information to accomplish a task
store information for future use
keeping information organized on a data base or on spreadsheets
discuss the nature of information management
explain the role of info. systems
Management Information Systems (MIS) is the name given to the area directed to the integration of computer systems with the goals and purposes of an organisation.
The growth and management of information technology gear helps the workforce in performing any jobs associated with the handling of information. MIS systems are mainly valuable in the spread of business data and the production of reports to be used as apparatus for decision making.
MIS is an integrated system of information plans intended to improve decision-making efficiency.
1. A good MIS is precise, well-timed, comprehensive, significant both in structure and content and accessible when required.
2. The mechanisms of a MIS are managers, their information requirements, data origins, the data pool, information and decision.
3. Benefits of MIS are: it saves time, money and labour; there is improvement in production and marketing practices; it also improves competitiveness and profit margins.
explain the role of ethics in information management
who is allowed to access what information could cause ethical issues to arise
explain legal issues associated with info management
releasing private information could arise issues with hippa rights
ID ways tech. impacts business
discuss principles of computer systems
use basic operating systems
describe scope of internet
demonstrate basic e-mail functions
demonstrate personal info management/productivity applications
demonstrate basic web-search skills
demonstrate basic word processing skills
demonstrate basic presentation applications
demonstrate basic database app.
demonstrate basic spread sheet app.
use an integrated business software app.
demonstrate collaborative/groupware app.
create and post basic web page
describe the nature of business records
A business record is any piece of information related to a company's commercial activities. It contains data regarding some type of transaction or occurrence related to the business that either the company owner or another party needs for reference purposes. A business record is commonly printed on a piece of paper in hard copy format then stored in a physical file or generated on the computer and filed in an electronic format.
maintain customer records
Accurate records are an important part of good customer service. All organisations will keep records of dealings with their customers.
Customer records can provide information about how best to market it's services and also help to ensure that the museum runs smoothly. Most records will be stored electronically on a database.
Contact with customers is often necessary to gather the information e.g. Customer service situations.
Contact can be face to face, written, electronic e.g email or fax or over the telephone.
Examples of the records kept at Armley Mills Industrial Museum are listed on the left hand side and can be downloaded by clicking on each link and identifying the appropriate pdf link.
describe current business trends
monitor internal records for business information
Internal company records are internal reports derived mainly from the accounting system of a business. These broadly include information related to a business' current and potential clients, sales proceeds and relevant databases maintained by a business as summarized below:
conduct an environmental scan to obtain business information
Environmental scanning is a data collection practice. It is aimed at collecting information about an environment such as an office or institution that can be used in planning, development, and ongoing monitoring by managers and supervisors. Once data has been collected with scanning it can be processed and analyzed to create a brief to be used in decision making.
Some environmental scanning is performed on an ad-hoc basis, as needed. This scanning is done in response to a specific issue or concern such as the need to plan for a new product launch. Regular scanning is conducted on a regular basis; an example might be an annual review of a working environment conducted with surveys, observation, and other study methods. In continuous scanning, an environment is constantly being scanned and analyzed. While a continuous process is time consuming and costly, it allows for rapid adaptations to changing situations.
One reason to use environmental scanning is in preparation for a major change such as a new facility, a big shift in policy, or a product launch. Scanning and gathering data before entering the planning stage is a useful tool to help identify weaknesses, opportunities, threats, and strengths. These can be built upon in the planning stage to create a strong and effective plan to address issues identified during environmental scanning. Failure to collect information before starting plans can result in costly mistakes and missed opportunities.
interpret statistical findings
SE, such as collecting demo/geo graphics or surveys and determining what conclusions you can draw from this information
explain marketing and its importance in global economy
Marketing is a process of finding out what the customer wants and meeting those requirements. Within the company, the marketing group has to consider customer values and customer satisfaction, In today's interconnected global economy, the question of whether or not to export seems academic. It nevertheless demands asking due to the substantial risk and resources called for in expanding sales internationally.
describe marketing functions and related activities
6 marketing functions:
develops new products, changing existing products to extend their life, phasing out products that are no longer popular, deciding which products to carry to attract the target customer, helps businesses determine their image and what type of image they want
-Marketing information management
businesses need information to make good marketing decisions. This function gathers info from customers through surveys, questionnaires, and observations. after info is gathered it is transformed into more understandable marketing information, distributed to company decision makers
affects how well a product will sell and how much profit business will make. Business need to set a price customers will pay, must decide whether they need to change products because of the market. Businesses often look at their competitors to determine if they should lower prices or raise the price because of an increase in demand
-Channel Management (place)
gets products from producers to customers so they are available when and where customers want to buy. (Fireworks provided at New Year's Eve and July 4th). Determines which channel members are responsible and best suited for shipping, promoting, and selling the product to customers
creates an increase demand for products, promotion uses magazine ads, direct mail coupons, etc. Helps to create an image or impression to a business to attract a different or expanded target market or get a certain message across
involves contact with customers. Customers must be satisfied with sales experiences, al businesses have something to sell. Everyone benefits from selling, businesses, customers, and society
All functions must work together
explain customer/client/business buying behavior
There are many models of consumer buying behaviour, but the steps below are fairly common to most of them.
The customer identifies a need This is often initiated by PR coverage, including word of mouth. The customer may have seen a friend or celebrity using a product or service, or awareness may have been sparked off by advertising.
Looking for information At this stage the customer wants to know more and is actively seeking information. Advertising and PR are still important but product demonstrations, packaging and product displays play a role. This is the time to deploy your sales personnel, and customers find videos and brochures are useful. Word of mouth is still very important.
Checking out alternative products and suppliers The customer is now trying to choose between products, or firm up on the purchase decision. This is a place for promoting product guarantees and warranties, and maximising packaging and product displays. Sales personnel can greatly influence the customer at this stage and sales promotion offers become of interest. Independent sources of information are still of interest, including product test reviews.
Purchase decision This is the time to 'tip the balance'. Sales promotion offers come into their own, and if appropriate, sales force incentives need to ensure that your sales personnel are incentivised to close the deal.
Using the product Expensive purchases can lead to what is known as cognitive dissonance - a fear that the customer has not made the right decision. Your job is to reassure the customer by offering good customer care, simple instruction manuals and loyalty schemes. They should still be exposed to testimonial advertising to reassure them that they have made the right decision.
discuss actions employees can take to achieve the company's desired results
-work efficiently and productively
-implement good customer service and personal selling
-work well with others
-work towards company goals
demonstrate connections between company actions and results
-Company implements a new product at a cheaper price, such as the whole idea behind the iphone 5c, if profits go up they can draw the connection that the consumers liked the product and the flexibility on pricing that fit with their needs
-lots of advertisements and promotions, such as in the growth stage of the product lifecycle which results in more sales
Explain the nature of operations
There are 4 types of Nature of Operations for businesses. They are:
- Mixed business
Discuss the role of ethics in operations
Ethics, with regard to corporations, generally concerns dealing honorably with the firm's customers and vendors and with examining the impact of the company's operations on third parties. Economists often refer to effects of a transaction on those not directly involved as "externalities". Externalities can be positive or negative. Examples of negative externalities might be pollution or unemployment caused by a company's actions. Positive externalities might be increase in land values relating indirectly to a venture or businesses being established to provide for the needs of the company's staff.
Describe the use of technology in operations
The scope of Technology and operation management has evolved over a period of time and has moved from development of products into design, management and improvement of operating system and processes.
Usage of technology in operation management has ensured that organizations are able to reduce the cost, improve the delivery process, standardize and improve quality and focus on customization, thereby creating value for customers.
Describe health and safety regulations in business
this is soooooooo broad
As a small business owner, providing workers with a safe and healthy workplace is critical to the wellbeing of your employees and the success of your business - but it is also the law.
Under the Occupational Safety and Health Act (OSHA), employers must provide a workplace free from recognized hazards that cause, or are likely to cause, death or serious physical harm to your employees.
The following workplace safety and health resources from the U.S. Department of Labor's Occupational Safety and Health Administration will help you understand requirements that apply to your business and how to comply.
• Find the Workplace Health and Safety Requirements that Apply to You - Follow this step-by-step guide to pinpoint which OSHA requirements apply to your workplace and how you can comply.
• Request an On-Site Consultation Service - Get free advice from trained state government staff at your place of work.
• State-Specific Requirements - Some states do operate their own job safety and health programs. Check here to see which states have OSHA-approved plans and the standards they mandate.
• Training and Educational Programs - Take advantage of a wide selection of training courses and educational programs offered by the Occupational Safety and Health Administration for employers.
Report noncompliance with business health and safety regulations
Follow instructions for use of equipment, tools, and machinery
Follow safety precautions
Maintain a safe work environment
What an unsafe environment looks like:
violence committed by disgruntled co-workers or former co-workers; domestic violence that spills over into the workplace; or acts of violence initiated by agitated or confused patients or visitors to the campus. Violence includes oral or written statements, gestures, or other behaviors that communicate a direct or indirect threat. All of these behaviors are unacceptable in the workplace, and should be dealt with swiftly and firmly.
just have workers report this stuff
Explain procedures for handling accidents
highly important that the business investigates how the accident happened and under what circumstances it took place. This is important so that preventative measures can be put in place to reduce the risk of the accident happening again.
If you have been involved in an accident at work and you think your employer is at fault then you may wish to make a claim for compensation. Any claims that you make must be made within three years of the date of the accident and you will need to enlist the help of a lawyer who will work on your behalf to ensure that your claim becomes a success.
If you are hoping to put in a claim for compensation after an accident that wasn't your fault then it is important that you keep a record of everything that not only happened on the day of the accident but also what has happened since the accident. Details such as the names and addresses and phone numbers of any witnesses, a diary of your symptoms and medical treatment as well as detailed notes of what happened on the day of your accident; all of these will benefit you with your claim for compensation.
Handle and report emergency situations
Not gonna get
Explain routine security precautions
Not gonna get
Follow established security procedures/policies
Protect company information and intangibles
Explain the nature of project management
Explain the nature and scope of purchasing
The activity of acquiring goods or services to accomplish the goals of an organization.
The major objectives of purchasing are to (1) maintain the quality and value of a company's products, (2) minimize cash tied-up in inventory, (3) maintain the flow of inputs to maintain the flow of outputs, and (4) strengthen the organization's competitive position. Purchasing may also involve (a) development and review of the product specifications, (b) receipt and processing of requisitions, (c) advertising for bids, (d) bid evaluation, (e) award of supply contracts, (f) inspection of good received, and (g) their appropriate storage and release.
explain the nature and scope of channel management
The process of balancing allocation of product inventory and pricing across distribution channels.
Channel members are anyone involved in the channel management process
channel market tasks
Group 1 - Manufacturer
Group 2 - Wholesaler
Group 3 - Retailer
explain the relationship between customer service and channel management
Ensures timely delivery of products
Effective communication is important
Correct shipping information
Reducing the probability of complaints
Nice and friendly people
explain the nature of channels of distribution
Intermediaries provide value to producers because they often have expertise in certain areas that producers do not have.
Intermediaries are experts in displaying, merchandising, and providing convenient shopping locations and hours for customers.
describe the use of technology in the channel management function
Some businesses have the capacity to distribute most or all of their products through the internet
e-commerce: Products are sold to customers and industrial buyers through the Internet.
Satellite tracking = a dispatcher has current knowledge of a delivery truck's location and destination
Tracking of package
Bar coding on package
Package scanned at transition points in distribution chain
Customer uses internet to follow package along distribution chain; e-mail may be used
Global distribution: in some countries the postal service is not reliable; package tracking facilitates global trade
Describe the regulation of marketing information management
the process and methods used to gather information, analyze it, and report findings related to marketing goods and services.
explain the nature of marketing research briefs
In writing a research brief, it should be kept short and should focus on the information that the researcher or research company are going to need. You should determine why the research is taking place and identify the information needed for the research. The next step would be to explain the research methods that will be used, the cost of the research and then conclude the market research proposal with a summary and recommendation. Finally you could edit for structure.
explain the nature and scope of the product/service management function
Product and service management is different businesses trying to meet the needs, wants, and desires or consumers.
product life cycle
Introduction Stage - This stage of the cycle could be the most expensive for a company launching a new product. The size of the market for the product is small, which means sales are low, although they will be increasing. On the other hand, the cost of things like research and development, consumer testing, and the marketing needed to launch the product can be very high, especially if it's a competitive sector.
Growth Stage - The growth stage is typically characterized by a strong growth in sales and profits, and because the company can start to benefit from economies of scale in production, the profit margins, as well as the overall amount of profit, will increase. This makes it possible for businesses to invest more money in the promotional activity to maximize the potential of this growth stage.
Maturity Stage - During the maturity stage, the product is established and the aim for the manufacturer is now to maintain the market share they have built up. This is probably the most competitive time for most products and businesses need to invest wisely in any marketing they undertake. They also need to consider any product modifications or improvements to the production process which might give them a competitive advantage.
Decline Stage - Eventually, the market for a product will start to shrink, and this is what's known as the decline stage. This shrinkage could be due to the market becoming saturated (i.e. all the customers who will buy the product have already purchased it), or because the consumers are switching to a different type of product. While this decline may be inevitable, it may still be possible for companies to make some profit by switching to less-expensive production methods and cheaper markets.
describe the uses of grades and standards in marketing
Grades and standards (G&S) are defined parameters that segregate similar products into categories and describe them with consistent terminology that can be commonly understood by market participants. In particular, standards are 'rules of measurement established by regulation or authority' and the grades thereof, 'a system of classifications based on quantifiable attributes'
identify consumer protection provisions of appropriate agencies
group of laws and organizations designed to ensure the rights of consumers as well as fair trade competition and the free flow of truthful information in the marketplace. The laws are designed to prevent businesses that engage in fraud or specified unfair practices from gaining an advantage over competitors; they may also provide additional protection for the weak and those unable to take care of themselves. Consumer protection laws are a form of government regulation, which aim to protect the rights of consumers. For example, a government may require businesses to disclose detailed information about products—particularly in areas where safety or public health is an issue, such as food. Consumer protection is linked to the idea of consumer rights, and to the formation of consumer organizations, which help consumers make better choices in the marketplace and get help with consumer complaints.
Other organizations that promote consumer protection include government organizations and self-regulating business organizations such as consumer protection agencies and organizations, the Federal Trade Commission, ombudsmen, Better Business Bureaus, etc.
A consumer is defined as someone who acquires goods or services for direct use or ownership rather than for resale or use in production and manufacturing.
Consumer interests can also be protected by promoting competition in the markets which directly and indirectly serve consumers, consistent with economic efficiency, but this topic is treated in competition law.
Consumer protection can also be asserted via non-government organizations and individuals as consumer activism.
explain the concept of the product mix
the complete range of products produced by a company. When managing a large range of products serving several markets, firms must develop ways of analyzing the performance of these products.
describe factors used by marketers to position products/services
Product positioning is the process of conveying to your target market the qualities and attributes of your brand that make it superior to competitor offerings. Effective positioning typically involves communicating a value proposition that the benefits of your product relative to the price are unrivaled, and is a key responsibility of a marketing department.
explain the nature of product/service branding
developing your brand, what you want to be known for, your company's identity
explain the evolution of retailing
Now, that balance of power has shifted squarely to the consumer. This new consumer is empowered - primarily through online and social channels - with nearly limitless options on their path to purchase. They can stroll the aisles of the 'brick and mortar' stores, vet their options with their friends through social media and then go online to find the best price. The internet retail format is a disruptive innovation which has created consumers who are educated, socially engaged, and demanding. The industry is coming to recognize that the experience they offer, whether in stores or online, must be centered on this new consumer reality. Inevitably, everything upstream will change.
discuss the use of electronic data interchange
an electronic communication system that provides standards for exchanging data via any electronic means. By adhering to the same standard, two different companies, even in two different countries, can electronically exchange documents (such as purchase orders, invoices, shipping notices, and many others). EDI has existed for more than 30 years, and there are many EDI standards (including X12, EDIFACT, ODETTE, etc.), some of which address the needs of specific industries or regions. It also refers specifically to a family of standards.
explain types of promotion
-Personal Selling: Involved personal contact between company rep and those who make purchase decisions (e.g. consumers, manager or company buyer). Selling occurs face-to-face or via telephone and also now online via video conferencing or text chat.
-Direct Marketing: Involves sending mail direct to the customer, Direct mail can be cheaper than traditional advertising; you can tailor your message, add more information and better target your market. Typically Direct mail advertising should be; personal, creative, informal and selectively directed (not sent to everyone in a database).
-Advertising: Non personal, mostly paid promotions often using mass media to deliver the message. The variations of advertising include; TV, Newspaper, Magazine, Internet and Outdoor advertising (E.g. billboard, posters, buses, etc.)
-Public Relations: This type of promotion uses third-party sources and particularly the news media, to offer a favorable mention of the marketer's company or product without direct payment to the publisher of the information.
-Sponsorship: Supporting an event, activity or organization by providing money or other resources that is of value to the sponsored event. This is usually in return for advertising space at the event or as apart of the publicity for the event. (E.g. TV/ Radio, Sports, Arts, Events, Charity/Causes.)
-Sales Promotion: Involves the use of special short-term techniques, often in the form of incentives, to encourage customers to respond or undertake some activity. (E.g. Sales flyers/ price discounts, Coupons, Samples/giveaways, special events and point of sale)
-Digital Communications: Any promotion made for web, cell phone or digital device (E.g. tablets, game systems etc.) These include; Online advertising, mobile communications, advergaming, social media, consumer-generated content and viral strategies.
identify the elements of the promotional mix
There are five main aspects of a promotional mix. These are:
Advertising - Presentation and promotion of ideas, goods, or services by an identified sponsor. Examples: Print ads, radio, television, billboard, direct mail, brochures and catalogs, signs, in-store displays, posters, motion pictures, Web pages, banner ads, and emails.
Personal selling - A process of helping and persuading one or more prospects to purchase a good or service or to act on any idea through the use of an oral presentation. Examples: Sales presentations, sales meetings, sales training and incentive programs for intermediary salespeople, samples, and telemarketing. Can be face-to-face selling or via telephone.
Sales Promotion - Media and non-media marketing communication are employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability. Examples: Coupons, sweepstakes, contests, product samples, rebates, tie-ins, self-liquidating premiums, trade shows, trade-ins, and exhibitions.
Public relations - Paid intimate stimulation of supply for a product, service, or business unit by planting significant news about it or a favorable presentation of it in the media. Examples: Newspaper and magazine articles/reports, TVs and radio presentations, charitable contributions, speeches, issue advertising, and seminars.
Direct Marketing is a channel-agnostic form of advertising that allows businesses and nonprofits to communicate straight to the customer, with advertising techniques such as mobile messaging, email, interactive consumer websites, online display ads, fliers, catalog distribution, promotional letters, and outdoor advertising.
explain types of advertising media
-topical ad-call to action
-image ad-builds brand by highlighting good qualities
-Proof of performance
-Jump on bandwagon
describe word of mouth channels used to communicated with targeted audiences
-personal communication channels
-people to people oral or written or electonric communications
-buzz-form of hype amoung consumers
-EWOMM anything shared via internet
explain the nature of direct marketing channels
-see who has been on websites
explain the nature and scope of the selling function
Selling is responding to consumer needs and wants through planned, personalized communication in order to influence purchase decisions and ensure satisfaction.
Influences purchase decisions
Should ensure customer satisfaction
Businesses buy resources (natural, human, capital) to be used in the production of goods and services and sell to the market that wants them
Individuals and households
identify ways to segment markets for marketing communications
For example, an airline is looking forward to providing no frills' connectivity between metro cities on US east coast compare. This segment is within airline industry but needs of customer is different. T target audience is low budget travelers. However, customers within the segment look for different attributes, for example, lunch or beverages as part of travel. Here companies can offer this by charging the customer.
explain the marketing communications development process
describe considerations in developing customer evangelists
When customers are truly thrilled about their experience with your product or service, they can become outspoken "evangelists" for your company. This group of satisfied believers can be converted into a potent marketing force to grow your universe of customers.
Explain the use of RSS feeds
RSS (Rich Site Summary); originally RDF Site Summary; often dubbed Really Simple Syndication, uses a family of standard web feed formats to publish frequently updated information: blog entries, news headlines, audio, video. An RSS document (called "feed", "web feed", or "channel") includes full or summarized text, and metadata, like publishing date and author's name.
RSS feeds enable publishers to syndicate data automatically. A standard XML file format ensures compatibility with many different machines/programs. RSS feeds also benefit users who want to receive timely updates from favourite websites or to aggregate data from many sites.
Subscribing to a website RSS removes the need for the user to manually check the web site for new content. Instead, their browser constantly monitors the site and informs the user of any updates. The browser can also be commanded to automatically download the new data for the user.
describe the use of advergaming
A video game which in some way contains an advertisement for a product, service, or company. Some advergames are created by a company with the sole purpose of promoting the company itself or one of its products, and the game may be distributed freely as a marketing tool. Other times, an advergame can be a regular popular video game, which may be sponsored by a company, and include advertisements within the game for the sponsoring company; for example you might see a character drink a particular brand of soft drink, or a race car might drive past a billboard advertising a certain snack food. Advergames have become more popular with the rise of the internet.
distinguish between retailing and marketing
The definition of marketing is the "management process through which goods and services move from concept to the customer," according to the Business Dictionary. It includes the commonly referenced "Four P's of Marketing", or the marketing mix, which consists of integration of product, place (or distribution), price, and promotion factors. London South Bank University notes in its "Retail Marketing Unit Guide" that retail marketing is simply applying marketing principles in a retail business.
explain the importance of merchandising to retailers
On the most basic level, the importance of merchandising is reflected in sales. Retail stores must make a certain amount of money each day, week, month and year in order to stay in business. The sale of products generates this revenue. Merchandising concerns selling merchandise to generate profit. Poor merchandising does not drive up sales, while successful marketing does. According to R. Srinivasan, author of "Case Studies In Marketing," merchandising directly influences approximately two-thirds of all sales.
Merchandising impacts a business and, thereby, its employees. Poor merchandising means poor sales, which impacts retailers and manufacturers. This changes the nature of the economy through potential job loss.
explain the impact of sales cycles
1. Prospect for Leads
You can't prospect effectively without knowing all about your product(s). If you don't understand the product, how could you know who will want to buy it?
2. Set an Appointment
It's time to use those leads you collected in stage 1. Many salespeople prefer to cold call over the phone, but you can also call in person, send email or even mail out sales letters.
3. Qualify the Prospect
The qualification stage usually takes place at the appointment itself, although you can also qualify briefly during your initial contact. The idea is to confirm that your prospect is both able and potentially willing to buy your product.
4. Make Your Presentation
The presentation is the core of every sales cycle, and it's probably where you'll invest the most preparation time. Keep in mind that you're not just selling your product... you are also selling yourself! You represent your company, so appearance counts.
5. Address the Prospect's Objections
Here's where you get to deal with your prospect's concerns. The one you'll hear most often? "I have to think about it."
6. Close the Sale
Once you've made your presentation and answered your prospect's questions and objections, it's time to ask for the sale. This is the second-most neglected stage of the sales cycle... which is especially sad given that it's probably the most critical one.
7. Ask for Referrals
This is hands down the most commonly neglected step. Too many salespeople are so relieved to get a sale that they grab their things and race out the door the second they get the chance, for fear the prospect will change their mind!
differentiate between consumer and organizational buying behavior
The main difference between consumer buyer behaviour and organisational buyer behaviour is that consumer buying consists of activates involved in buying and using of products for personal and household use, where organisational buyers purchase primarily for organisational purpose. Consumer behaviour is complex and a company has to fit their product more closely and satisfy their customer needs more fully than the competitors. Marketers will also need to know whether their controllable variables, e.g. marketing mix variables, will affect buying behaviour.
prepare sales reports
Start the sales report with the date. Include the dates the report covers, the specific department and other pertinent information, such as the sales region cover or specific product.
Lead with the main accomplishment or most significant number of the week. For example, if you exceeded sales goals for the week, start with a sentence describing how much you exceeded the goals. If you increased sales 10 percent over the previous week, share that information.
Give the week's sales numbers, then compare them. After giving the week's biggest accomplishment, break down the sales numbers for the week. This could be broken down by product or salesperson, or whatever makes sense for the product or service you're selling. Then, include a summary of how this week's numbers compare to this time last year, to last week's numbers or how much closer you are to your quarterly sales goal.
Add other relevant statistics, such as the number of cold calls made versus the number of resulting sales. Discuss any challenges that hindered sales for the week, such as rainy weather keeping your staff from selling outdoor equipment.
explain the nature of key account management
Key account management is a simple concept. It is based on the premise that each and every organization has a limited number of resources that can be directed towards customer sales activities. It presupposes that activities need to be prioritized and directed at those clients which are more likely to develop into long term symbiotic and highly profitable relationships.
Key account management is a planning approach to identify and manage strategic business relationships; an approach that goes way beyond the simple day to day task of selling products and services to any client who has an interest in your offering. Effective key account management involves managing, planning and controlling resources to realize customer/supplier synergies that build strong and sustainable business relationships.
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