Terms in this set (61)
Describe the five most commonly used tools for TQM.
Value Added Analysis
Quality Improvement Teams
Getting Closer to the Customer
The ISO Series
Business Process Reengineering
Value Added Analysis:
Refers to evaluation of all work activities, materials flows, and paperwork to determine the value that they add for customers. It often reveals wasteful of unnecessary activities that can be eliminated without jeopardizing customer service.
Quality Improvement Teams:
Companies throughout the world have adopted quality improvement teams patterend after the successful Japanese concept of quality circles: collaborative groups of employees form various work areas wo meet regularly to define, analyze and solve common production problems. Their goal is to improve both their own work methods and the products they make. Quality improvements teams organize their work, select leaders, and address problems in the workplace.
Getting Closer to the Customer:
Successful businesses take steps to know what their customers want in the products they consume. On the other hand, struggling companies have often lost sight of customers as the driving force behind all business activity. Such companies waste resources by designing products that customers do not want. Sometimes they ignore reactions to existing products or fail to keep up with changing tastes. (Internal and external)
The ISO Series:
A mark of quality achievement that is respected throughout the world and in some countries is a requirement for doing business. Has gone through rigorous quality management test and requirements.
Business Process Reengineering:
Focuses improving a business process - rethinking each of its steps by starting from scratch. Reengineering is the fundamental rethinking and radical redesign of a business processes to achieve dramatic improvements as measured by cost, quality, service and speed.
Describe the role of information systems:
A system that uses IT resources to convert date into information and to collect, process and transmit that information for use in decision making.
Describe the different types of information systems:
Information systems for knowledge workers
Information Systems for Managers (MIS - Management Information Systems & Decision Support Systems)
Information systems for knowledge workers:
Knowledge workers are employees for whom information and knowledge are the raw materials of their work such as engineers, scientists, and IT specialist who rely on IT to design new products or create new processes. Knowledge information systems provide resources to create, store, use and transmit new knowledge for useful applications (CAD)
Information Systems for Managers
Vary according to employees' functional area and management level. Here are a few type (Management Information Systems (MIS) & Decision Support Systems)
Management Information Systems (MIS)
Provides reports, schedules, plans and budgets that can then be used for making decision, both short and long term.
Decision Support Systems
Interactive systems that create virtual business models and test them with different data to see how they respond
Explain the key standards and principles for reporting financial statements.
Accountants follow standard reporting practices and principles when they prepare external reports. GAAP Revenue recognition: the formal recording and reporting of revenues at the appropriate time. Report when the earning cycle is complete (the sale is compete and product delivered and the sale prices has been collected or is collectible (accounts receivable). Full Disclosure: Guideline that financial statements should not include just numbers but should also furnish management's interpretations and explanations of those numbers.
Supply detailed information the accounting equation factors, assets, liabilities and owners' equity. Owners Equity- broken into paid-in capital (money invested by owners) and retained earnings net profits kept by a firm rather than paid to stock holders). Shows a specific point in time
aka profit and loss statement (revenues - expenses = profit (or loss)) Divided into four major categories: revenues, cost of revenues, operating expenses and net income. Shows the financial results during a period of time.
Funds that flow into a business
Cost of goods Sold / Cost of revenues:
costs of obtaining revenue or materials to make products sold during the year.
Preliminary, quick to calculate figure that considers revenues and cost of revenues
Costs, other than th cost of revenues, incurred in producing a good or service. Salary, supplies, etc.
Operating and Net Income:
Compares the gross profit from operations against operating expenses.
Statement of Cash Flows:
SEC requires all firms whose stock is publicly traded to issue. Financial statement describing a firms yearly cash receipts and cash payments. Shows the effects on cash of three aspects of a business:
• Operating activities: Cash transactions involved in buying and selling goods and services.
• Investing activities: Reports net cash used in or provided by investing. Cash receipts and payments from buying and selling stocks, bonds property, equipment etc. Not a firms main line of business.
• Financial activities: reports net cash from all financing activites. Cash inflows from borrowing or issuing stock as well as outflows for payment or dividends and repayment of borrowed money.
The external environment consists of everything inside an organizations boundaries that might affect it.
False, an businesses' external environment consists of everything outside of an organization's boundaries that might affect it.
Business Ethics refers to ethical or unethical behaviors by employees in the context of their personal lives.
. False... Business Ethics refers to ethical or unethical behaviors by employees in the context of their jobs.
People who assume the risk of business ownership with a primary goal of growth and expansion are called entrepreneurs
False, entrepreneurs do not necessary aspire to grow their business beyond their capabilities to run them. Many are driven by gaining independence.
When a countryʹs imports exceed its exports, that country experiences a trade surplus.
False, that is a trade deficit. A trade surplus is: a situation in which a country's exports exceed its imports creating a positive balance of trade.
Middle managers are responsible for implementing the strategies, policies, and decisions made by top managers.
Departmentalization refers to the process of grouping jobs into logical units.
Getting a haircut and having your lawn mowed are both examples of low-contact services.
False, that is a high contact service - to receive the service the customer must be part of the system. Low -Contact example: banks sorting checks, gas and electric, etc
A psychological contract is a personʹs set of expectations regarding what he or she will contribute to the organization and what the organization will provide in return.
Both transactional and charismatic leadership are approaches to leadership as seen through the eyes of followers.
Focuses on the importance of leading for a change. Comparable to management, it involves routine regimented activities.
type of influence based on the leader's charisma, a form of personal attraction that inspires support and acceptance.
A replacement chart is used to encourage employees to retire.
False, the chart lists each important managerial position, who occupies it, how long that person will probably stay in it before moving on an who is now qualified or soon will be qualified to move into it. Allows ample time to plan development experiences for people identified as potential successors for critical managerial jobs.
How would you select a random sample (N=50) from the list of countries (N=228)?
o Since the population is finite, we could use simple random sampling which would give each possible sample the same probability of getting selected.
o Can assign each country a number (1-228) and will use a random number table selecting 3 digits at a time. I would discard any that went over 228
o I would not choose the same country twice and therefore would be using the method "sampling without replacement"
o Other random sampling methods include: Stratified Random Sampling & Cluster Sampling
Stratified random Sampling: The elements in the population are divided into groups called strata. In this case you could divide into countries. Years would skew the data and each cluster would not be a good estimate.
Cluster Sampling: Works best when each cluster provides a small-scale representation of the population.
How would you evaluate the change in internet penetration over time?
Since both time and internet penetration are both quantitative variable I would create a scatter diagram and then calculate a "trend line." The trend line would provide an approximation of the relationship and would allow me to determine if the relationship is positive, negative or no apparent relationship. The slope of the trendline would provide me with the degree of change in which internet penetration increased or decreased per year.
How would you compare groups (here: countries) for statistical differences related to internet penetration?
o I would do an ANOVA test or an Analysis of Variance test - this test tests two or more group means (in this case 228 countries) on a continuos dependent variable (time). An ANOVA controls the overall error by testing all group means against each other at once, so your alpha remains at, for instance .05.
The populations from which the samples were obtained must be normally or approximately normally distributed.
The samples must be independent
The variances of the populations must be equal.
o The test separates the total variance in the continuous dependent variable into two components; variability between the groups and variability within the groups
o 1. Hypothesis: There is no significant difference among countries.n U1 = U2 = U3 etc
o Alternative Hypothesis: There is a significant difference between at least two of the countries...at least one mean would significantly differ.
o Would either
Fail to reject the null hypothesis and conclude that there is no significant different between countries ...
Reject the null hypothesis and conclude that there is a significant difference among the countries. reject Ho if P-value <= alpha
o The p-value is the probability of obtaining a test statistic result at least as extreme as the one that was actually observed, assuming that the null hypothesis is true.
In hypotheses testing we begin by making a tentative assumption about a population parameter. This tentative assumption is called the null hypotheses (Ho).
opposite of what is stated in the null hypothesis. (Ha)
The hypothesis testing procedures uses data from a sample to test the two competing statements. Often used in testing research hypotheses, testing the validity of a claim, and testing in decision-making situations.
Labels or names to identify and attribute of each element. Use either the nominal or ordinal scale of measurement and may be nonnumeric or numeric.
Numeric values that indicate how much or how many of something. Is obtained using either the interval or ratio scale of measurement.
The average value for a variable. Provides a measure of central location for the date.
Another measure of central location. The value in the middle when the date are arranged in ascending order. With an odd number of values the median is the middle value. For an even number we define the median as the average of the tow middle two observations.
The value that occurs with greatest frequency.
The variance is a measure of variability that utilizes all data. Based on the difference between the value of each observation and the mean. Assuming this is a sample, I would first calculate the mean (176).
Most of the statistical information in newspapers, magazines, company reports, etc consist of data that are summarized and presented in a form that is easy for the reader to understand. Such summaries include tabular, graphical or numerical. Bar graph, histogram etc
Because of time cost and money it is difficult to obtain data from an entire population; therefore, a sample must be taken. Statistical inference occurs when you make estimates and test hypotheses based on the characteristics of a population through a sample.
Skewed to the Left
Negative Skew - Elongated tail at the left.
Skewed to the Right
Positive Skew - Elongated Tail at the right.
"the number of standard deviations from the mean"
Using the empirical rule, I assume that 99.7% of the data is within 3 standard deviations away from the mean. Anything greater than that is an outlier. Therefore, a z-score greater than 3 can be considered an outlier.
How would you define service loyalty?
Loyalty is a deeply held commitment to rebuy or re patronize a preferred product or service in the future despite situational influences and marketing efforts having the potential to cause switching behavior.
What factors tend to influence the development of a customer's loyalty to service firms?
The service company offers a value proposition (cluster of benefits the company promises to deliver) and when expectations are met, satisfaction occurs. LOYALTY OCCURS WHEN YOU DELIVER HIGH CUSTOMER VALUE
Customer perceived value:
the difference between the prospective customers evaluation of the benefits and all the costs of an offering and perceived alternatives.
Total customer benefit
total customer cost = customer perceived value
Describe the decision process for impulse purchases.
Impulse goods are purchased without any planning or efforts, like chocolates or and potato chops. Manufactures of impulse and emergency goods will place them where customers are likely to experience an uge or compelling need to purchase.
o Occurs when consumers suddenly decide to purchase something they had not planned on buying. Characterized by:
An intense or overwhelming feeling of having to buy the product immediately
A disregard for potentially negative purchase consequences
Feelings of euphoria and excitement
A conflict between control and indulgence
Explain the elements that comprise the marketing environment?
Political Legal Environment
Political Legal Environment:
Political activities both global and domestic impact marketing environment. Some companies contribute to political candidates or support political action committees.
Changing social values force companies to develop and promote new products for both individual consumers and industrial customers. Ex: organic foods
New technologies create new goods and sevices and make existing products obsolete. Many products change values and lifestyles.
Because they determine spending patterns by consumers, businesses, and governments, economic conditions influence marketing plans for product offerings, pricing and promotional strategies.
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