78 terms

Business In Action - full book exam

Larger Concepts of books for final exam
Major Types of Businesses
not-for-profit (nonprofit organizations)
Goods producing businesses
Services businesses
Multiple Environments of business
Economic Environment
Market Environment
Legal & Regulatory Environment
Social Environment
Technical Environment
Major Functional Areas of Business Enterprise
a. Research & Development
b. Manufacturing, Production and Operations
c.Marketing, Sales Distribution & Customer Support
d. Finance & Accounting
e. Human Resources
f. Business Services (acct, law, kanking, real estate)
The sum total of all the economic activity within a given region
The study of how a society uses its scarce resources to produce and destribute goods.
Factors of Production
Natural resources, Human resources, capital & entrepreneurship & knowledge
Economic Systems
Free-Market systems (capitalism)
Planned Systems (socialism)
Nationalization (gov assums owndership of company Privatization (services once performed by Gov now private)
Frictional unemployment
the natural flow of workers into and out of jobs
Economic Measures & monitors
Leading indicators - suggest change may happen
Lagging indicators - provide confirmation that something occurred. & Price Inceses
Bureau of Labor Statistics
Consumer Price Index
Gross National Product
the sum of all goods and services produced in a nation in a year
Gross Domestic Product
the total market value of all final goods and services produced annually in an economy
study of the economy as a whole
the study of the economic behavior and decision making of small units, such as individuals, families, and businesses
Opportunity cost
the value of the most appealing alternative that was not chosen.
Pure competition
situation with so many buyers and sellers that no single buyer or seller can individually influence market prices.
balance of payment
the difference between the amount of money that comes into a country and the amount that goes out of it
Economies of scale
as a company produces larger numbers of a particular product, the cost of each of these products goes down
Top 6 reasons companies trade internationally
1. focus on their strengths (do what they are good at)
2. expand market (grow)
3. pursuing economics of scale
4. acquire materials goods and services (stuff we don't have)
5. keeping up with customers (be where client is)
6. keeinng up with competitors
ITO International Trade Organization
World Trade Organization, International Monetary Fund (IMF), World Bank
World Trade Organization
Prevents discriminatory policies, reduces parriers, makes policies more predictable, helps less developed countries and discourages unfair practices i.e. dumping.
IMF International Monetary Fund
Monitors global financial developments, provides SHORT term loans to countries & provides tech advice and training.
World Bank
addresses poverty, health, education in developing countries. Not directly involved in international trade
North American Free Trade Agreement
Eureopean Union
Asia-Pacific Econ Cooperative - 21 countries, 40% of world population, 50% of worlds GDP
Factors influencing ethical behaviors
cultural differences, knowledge, organizational behaviors (code of ethics)
CSR - Corporate Social Responsibility
Business obligations beyond money
Four levels of CSR
Minimalist, Defensive, Cynical & Proactive
Cap & Trade
Govn't sets limits on pollutants. Companies can trade, save or sell if they don't use.
CSR Consumerism
consumer needs and interests - the right to be informed, the right to choose which product & the right to be heard
CSR Employees
Equality in employment AA, ADA & OSHA
Trading Blocs
NAFTA, EU & Asia-Pacific Economic Cooperation Council
Effective Leadership Styles
Autocratic, Democratic & Laissez-faire
4 basic functions mgrs perform
organize, lead, control and plan
Strength, Weakness, Opportunities, Threats
Value chain
All actives involved in delivering value to customers.
Theory X
All employees dislike work and will avoid it unless threatened, A set of negative assumptions about employees based on the premise that people do not like work and will try to avoid it.
Theory Y
assumes that employees enjoy meaningful work, are naturally committed to goals, capable of creativity and seek out responsibility under right conditions
Herzberg's motivators
achievement, recognition, responsibility, work itself personal growth (pay not one)
Herzberg's Hygiene factors
working conditions, pay, security
Herzberg's two-factor theory
model that divides motivational forces into satisfiers - motivators & dissatisfiers - hygiene
Maslow's Hierarchy
P. S. BE SAfe. Physiological, Safety, Belongingness, Esteem, Self-Actualization.
MBO (Mgt by Objectives)
company wide process that empowers employees and involves them in goal setting planning, implementing and reviewing
McClelland's three-needs theory
need for power, affiliation and achievement
Supply Chain Mgt
connected systems that coordinate the flow of goods from suppliers to final customers
Lean Systems
Max productivity by reducing waste and delays.
Theory Z
Ouchi's approach to motivation based on seven principles, comes from japanese management, and stresses long term employment; collective decision making; individual responsibility; slow evaluation and promotion; implicit; informal control with explict, formalized control; moderately specialized career paths; and a holistic concern for employees [ including family ]
McGregor's Assumption
Theory X emphasize authority and Theory Y emphasizes grown and self direction.
Equity theory
employee satisfaction depends on the perceived ratio of inputs to outpouts. (pay to work)
Influence over hire
seniority takes presidence
Wagner Act
Power to Unions 1st Nat'l Labor Relations Act for union policies and procedures
Taft-Hartley Act
Power to the owners: Amended Wagner Act - employees have right to not participapnte in unions and gives states the freedom to pass right-to-work laws.
Landrum-Griffin Act
Power to the Union members: Amends Taft-Hartley act- to control union corruption- union have to file annual rpts with US Dept of Labor
Collective Bargaining Process
Prepare to meet, meet, reach agreement, vote and ratify, sign contract
Labor attempts to force resolution
strike, boycott, negative publicity
Mgt attempts to force resolution
strikebreakers, lockouts, injunctions
Relationships - create value, exchange value, lasting relationships
Four Utilities of Marketing
form, time, place & Possession
Reference groups
people that have a good deal in common
Factors that influence consumer behavior
culture, socioeconomic class, reference groups, situational factors, self-image
Market segments
demographics, psychographics & geographics
undifferentiated marketing
mass marketing
differentiated marketing
A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each (toyota with scion, lexus, etc)
concentrated marketing
narrowest approach - single mkt segment
narrowest strategy - single customer
Marketing Mix
4 P's price, place = distribution, promotion = communication, product
product continuum
relative amounts of tangible and intangible components in a product.
product life cycle
Introduction, Growth, Maturity, Decline
New product development process
Generate ideas, screen ideas, analyse potentioal, develop prototype, test mkt, commercialize product
break even analysis
# of units a company must sell to recoup cost
optimal pricing
computer sofeware generates ideal price
skim pricing
high initial price with intent to drop later
penetration pricing
low initial price builid up laters
participative pricing
pay what you want = car wash
value based pricing
product's potential or perceived value in mktplace
cost based pricing
cost plus mark up