BUS 200 Post Midterm

Why is the labelling of products important?

- LABEL That part of a product's packaging that identifies the product's name and contents and sometimes its benefits. - Consumer Packaging and Labelling Act has two main purposes: first, to provide a comprehensive set of rules for packaging and labelling of consumer products; second, to ensure that manufacturers provide full and factual information on labels.

What is marketing? What is the marketing concept?

- MARKETING An organizational function and a set of processes, activity, set of institutions for creating, communicating, and delivering value to customers, clients, partners, and society at large, and for managing customer relationships in ways that benefit the organization and its stakeholders. - MARKETING CONCEPT The idea that the whole firm is directed toward serving present and potential customers at a profit. o firm must get to know what customers really want and closely follow evolving tastes

What are marketing objectives?

- MARKETING OBJECTIVES the things marketing intends to accomplish in its marketing plan

How do you extend product life?

- 1) In product extension, an existing product is marketed globally - 2) With product adaptation, the product is modified for greater appeal in different countries. - 3) Reintroduction means reviving, for new markets, products that are becoming obsolete in older ones.

What is the consumer buying process?

- 1) Problem/Need Recognition o consumer recognizes a problem or need o chance to change your buying habits. - 2) Information Seeking o Having recognized a need, consumers often seek information. o before making major purchases, most people seek information from personal sources, public sources, and experience. - 3) Evaluation of Alternatives o analyzing product attributes (price, prestige, quality) of the consideration set (the group of brands they will consider buying), consumers compare products before deciding which one best meets their needs. - 4) Purchase Decision o consumers make purchase decisions o "Buy" decisions are based on rational motives, emotional motives, or both o Rational motives involve the logical evaluation of product attributes: cost, quality, and usefulness. o Emotional motives involve non-objective factors and include sociability, imitation of others, and aesthetics. - 5) Post Purchase Evaluation o Marketers want consumers to be happy after buying products so that they are more likely to buy them again.

What is Identifying Alternatives?

- 2nd step - identify possible alternative courses of effective action - the more important the decision, the more attention is directed to developing alternatives - legal restrictions, moral and ethical norms, and available technology can limit their alternatives

What is advertising media?

- ADVERTISING MEDIA The specific communication device—televi- sion, radio, online, newspapers, direct mail, magazines, outdoor, mobile—used to carry a firm's advertising message to potential customers.

What is advertising? What are the objectives and purpose?

- ADVERTISING Paid, non-personal communication by which an identified sponsor informs an audience about a product. - Advertising can convince customers to try a company's product or service, but it has limits. It is the customers' experience with the product or service that determines whether they will make repeat purchases. - Use mass media (TV, radio...) - Product advertisements: focus on selling a good or service - Institutional advertisements: build goodwill or an image for an organization rather than promote a specific good or service - Objective: specific communication task to be accomplished with a specific target audience during a specific period of time... - Purpose: to inform, to persuade, to remind

What is the bank of canada? What is the bank rate?

- BANK OF CANADA Canada's central bank; formed in 1935. - crucial role in managing the Canadian economy and in regulating certain aspects of chartered bank operations - BANK RATE (REDISCOUNT RATE) The rate at which chartered banks can borrow from the Bank of Canada. - serves as the basis for establishing the chartered banks' prime interest rates.

How does the bank of canada control the money supply?

- Bank of Canada plays an important role in managing the money supply in Canada (see Figure 14.3). If it wants to increase the money sup- ply, it can buy government securities. - Bank can also lower the bank rate; this action will cause increased demand for loans from businesses and households, because these customers borrow more money when interest rates drop. - Bank of Canada wants to decrease the money supply, it can sell government securities - bank of Canada can also raise the bank rate; this action will cause decreased demand for loans from businesses and households because these customers borrow less money when interest rates rise.

How can a company meet the quality challenge?

- It is not enough for a company to be highly productive. It must also create products and services that have the level of quality consumers want.

Which is more productive, Manufacturing Versus Service Productivity?

- Manufacturing productivity is higher than service productivity

What is the market research process?

- Market research can occur at almost any point in a product's existence, but it is most frequently used when a new or altered product is being considered. - five steps to performing market research: o 1) Study the current situation. What is the need and what is currently being done to meet it? o 2) Select a research method. In choosing a method, marketers must bear in mind the effectiveness and costs of different methods. o 3) Collect secondary data. Secondary data refers to information already available as a result of previous research by the firm or other organizations. • in some cases, secondary data is unavailable or inadequate, so primary data—new research by the firm or its agents—must be obtained. o 4) Analyze the data. Data is not useful until it has been organized into clear information. o 5) Prepare a report. This report normally includes a summary of the study's methodology and findings, various alternative solutions (where appropriate), and recommendations for an appropriate course of action.

What is the first step in strategy formulation?

- Matching company strengths to environmental opportunities - Minimizing the impact of threats and company weaknesses

What are the behavioural aspects in decision making?

- Organizational Politics - Intuition - Escalation of Commitment - Risk Propensity

What is promotion?

- PROMOTION Aspect of the marketing mix concerned with the most effective techniques for communicating information about and selling a product. - objective of promotion is to increase sales. - increase consumer awareness of their products, to make consumers more knowledgeable about product fea- tures, and to persuade consumers to prefer their brand over others. - increasing their promotional activities in slow periods, they can achieve a more stable sales volume throughout the year - all about communication: product information, price information, place information

What is promotion?

- PROMOTION The aspect of the marketing mix concerned with the most effective techniques for communicating information about products. - advertising, personal selling, sales promotions, publicity/public relations, and direct or interactive marketing

What is the promotional mix?

- PROMOTIONAL MIX the combination of tools used to promote a product. - In establishing a promotional mix, marketers match promotional tools

What is public relations?

- PUBLIC RELATIONS Company-influenced information directed at building goodwill with the public or dealing with unfavourable events. o public-service announcements that enhance the company's image o press releases, sponsorships, special events, mass media o company has control

What is publicity?

- PUBLICITY Information about a company, a product, or an event transmitted by the general mass media (with no direct cost to the company). o consumers see publicity as objective and believable o company has no control over it, free.

What is risk management? What are the two types of risk?

- RISK Uncertainty about future events. - factor in every manager's job because nearly every managerial action raises the possibility for either positive or negative outcomes. Coping with Risk - SPECULATIVE RISK An event that offers the chance for either a gain or a loss. - - PURE RISK An event that offers no possibility of gain; it offers only the chance of a loss or no loss. - RISK MANAGEMENT Conserving a firm's (or an individual's) finan- cial power or assets by minimizing the financial effect of accidental losses.

What are the steps in decision making?

- Recognize and define the decision situation - Identify alternatives - Evaluate the alternatives - Select the best alternative - Implement the chosen alternative - Follow up and evaluate the results

What is sales promotion?

- SALES PROMOTIONS Short-term promotional activities designed to stimulate consumer buying or cooperation from distributors and other members of the trade. - increase the likelihood that buyers will try products - enhance product recognition and can increase purchase size and amount - must be convenient and accessible when the decision to purchase occurs - incentive to encourage purchasing - discounts, rebates, coupons, contests, displays, and demonstrations, etc.

What may companies do to keep customers satisfied?

- To satisfy customers, a company may do any of the following: o develop an entirely new product that performs better (provides greater performance benefits) than existing products o keep a store open longer hours during a busy season (adding the benefit of greater shopping convenience) o offer price reductions (the benefit of lower costs) o offer information that explains how a product can be used in new ways (the benefit of new uses at no added cost)

What is utility? What are the 4 different types?

- UTILITY The ability of a product to satisfy a human want or need. - Marketing strives to provide four kinds of utility in the following ways: o • Form utility. Marketing has a voice in designing products with fea- tures that customers want. o Time utility. Marketing creates a time utility by providing products when customers will want them. o • Place utility. Marketing creates a place utility by providing products where customers will want them. o • Possession utility. Marketing creates a possession utility by transfer- ring product ownership to customers by setting selling prices, set- ting terms for customer credit payments, if needed, and providing ownership documents.

What is warehousing?

- WAREHOUSING A physical distribution operation concerned with the storage of goods.

For goods producing services, what are the types of processes, analytic vs. synthetic?

- analytic process breaks down basic resources into their component parts - extracting minerals from ore - synthetic process - combines a number of raw materials to produce a finished product - paint production

What is B2B buying behaviour?

- bears little resemblance to consumer buying practices - often involve frequent and long-term buyer-seller relationships - organizational buyers purchase in large quantities and are professional, specialized, and well informed - make decisions based on rational motives such as relative performance, cost, efficiency, and maintenance costs.

What are the differences between service and manufacturing operations?

- both transform raw materials into finished products - output of service is not physical products, but people with needs met and possessions serviced - Service operations more complicated in 4 ways: o The interaction with consumers o The intangible and unstorable nature of some services o The customers presence in the process o Service quality considerations

What does operations planning involve?

- business plan and forecasts developed by top managers guide operations planning - business plan outlines goals and objectives, including specific goods and services that the firm will offer - managers also develop long-range production plans through forecasts of future demand for both new and existing products (capacity, location, layout, quality, methods) - production plan - covers 2-5 years, specifies the number of plants or service facilities and the amount of labour, equipment, transportation, and storage that will be needed to meet demand. Specifies how resources will be obtained - operations schedule - master schedule, detailed schedule, staff schedule - operations control - quality control, materials management - Business plan and forecasts -> long range operations plan -> operations schedule -> operations control

How can services be intangible and unstorable?

- can be touched, tasted, smelled, seen - important satisfier for customers is the intangible value they receive in the form of pleasure, gratification, safety - if service isn't used when available, usually wasted (unstorable)

What is behavioural segmentation?

- dividing a market into groups based on consumer knowledge, use, or response to a product. - BEHAVIOURAL VARIABLES Behavioural considerations, such as benefits sought, loyalty status, usage rate, user status, and occasion for use that may be used in developing a segmentation strategy.

What are financial institutions? What are the four financial pillars?

- facilitate the flow of money from sectors with surpluses to those with deficits, by attracting funds into chequing and savings accounts. - These "four finan- cial pillars" are (1) chartered banks, (2) alternate banks (e.g., trust companies and credit unions/caisses populaires), (3) life insurance companies and other specialized lending and saving intermediaries (e.g., factors, finance companies, venture capital firms, mutual funds, and pension funds), and (4) investment dealers.

What is Recognizing and Defining the Decision Situation?

- first step - recognizing that a decision is necessary, some stimulus to initiate the process - stimulus may be either problem or opportunity - careful analysis and thoughtful consideration to understand precisely

What is the difference between Fixed Versus Dynamic Pricing for Online Business?

- fixed pricing is still the most common option for cyber shoppers - dynamic pricing - uses flexibility between buyers and sellers in setting a price and uses the web to instantly notify millions of buyers of product availability and price changes - Another kind of dynamic pricing—the reverse auction—allows sellers to alter prices privately on an individual basis.

What are the types of sales promotion?

- free samples (giveaways), which let customers try products without risk - COUPON A method of sales promotion featuring a certificate that entitles the bearer to stated savings off a product's regular price - PREMIUM A method of sales promotion in which some item is offered free or at a bargain price to customers in return for buying a specified product. - Contests can boost sales by rewarding high- producing distributors and sales representatives. Other companies can capture information - POINT-OF-PURCHASE (OR SALE) A method of sales promo- tion in which a product display is located in a retail store in order to encourage consumers to buy the product. - TRADE SHOW A method of sales promotion in which members of a particular industry gather for displays and product demonstrations designed to sell products to customers. - DIRECT (OR INTERACTIVE) MARKETING One-on-one non- personal selling by non-store retailers and B2B sellers using direct contact with prospective customers, especially via the internet. - Direct connections with individual consumers - Many forms of direct marketing exist, but all forms are less public, customized, and interactive - Catalogues, direct mail - advantage of direct marketing is that you can target the message to the individual and you can measure the results. - Internet/Digital Marketing - the use of interactive and digital media to have tow-way conversations with consumers, the general public - Includes social media, mobile marketing, internet marketing, viral marketing, etc.

Why operations?

- help implement strategies - operations create or produce everything you buy, sit on, wear, eat, throw at people, and throw away

What are The Pros and Cons of Non-direct Distribution?

- higher prices - more members there are in the channel—the more intermediaries making a profit by charging a markup or commission—the higher the final price - Intermediaries can provide added value by providing time-saving information and making the right quantities of products available where and when consumers need them - intermediaries exist because they provide necessary services that get products efficiently from producers to users

For operations management, how are inputs turned into outputs?

- input transformed resources: raw material, information, customers - input transforming resources: staff, facilities - input -> transformation process-> output -> goods and services

What is the importance of advertising?

- involves huge amount of money - work is done by relatively few people - major expense is for media time/space - companies spend only a small percentage of sales on advertising

What is operations scheduling? What are the 4 types?

- scheduling - once plans have been developed, operations managers must develop timetables for implementing the plans - 4 kinds: o (1) the master operations schedule (the "game plan" for deciding the volume of upcoming activities over a period of months) o 2) detailed schedules (which show day-to-day activities of production), o (3) staff schedules (which identify how many employees will be working and when) o 4) project schedules (which provide coordination for completing large-scale projects)

Explain the communication process?

- source/sender - an organization or individual that sends a message - receiver: an organization or individual that receives a message - encoding - process by which a source translate an idea into a from of communication that conveys the desired meaning - decoding - process by which a receiver assigns meaning to the message - message - the communication in physical form that goes from a sender to a receiver - medium - communication vehicle (ex. Tv, radio..) through which a message is transmitted to a target audience - noise: anything that interferes with effective communication - feedback: the receivers reactions to the decoded message

What is the communication model?

- source: individual person or company -> encoding -> message: advertising public relations promotion, -> medium: ex. Newspapers -> decoding -> receiver" individual consumer or company -> feedback: customer reviews -> back to source - noise: competing message (happens all around whole process)

Why are credit cards different then cash?

- spending with a credit card creates a debt, but does not move money until later when the debt is paid by cash or cheque. - Credit cards are a money sub- stitute; they serve as a temporary medium of exchange, but are not a store of value.

What are staff schedules and computer based scheduling?

- staff schedules, in general, specify assigned working times in upcoming days, per- haps for as many as 30 days or more, for each employee on each work shift. Staff schedules consider employees' needs and the company's efficiency and costs, including the ebb and flow of demand for production. - Computer-based scheduling - can easily handle multi-shift activities for many employees, both full- and part-time. It accommodates vacation times, holiday adjustments, and daily adjustments in staffing for unplanned absences and changes in production schedules.

What is Distribution through supply chain as a Marketing Strategy?

- supply chains that depend on distribution as a cornerstone of business strategy - assessing, improving, and integrating the entire stream of activities—upstream suppliers, wholesaling, warehousing, transporta- tion, delivery, and follow-up services—involved in getting products to customers.

What are the three types of planning?

1) Strategic Plans - setting strategy, making decision to pursue strategy. typically long-term ex. Appl - broad differentiation, set apart by key features 2) tactical Plans - short term - 15 months or less, current operations what need to do. Ex. Apple - releasing new iphone every 12 months 3) Operational plans - ex. Apple - need to develop operational plans for R&D, need design plans to release every 12 months

What are 3 behavioural theories?

1) The Human Resources Model; Theories X and Y 2) Maslows Hierarchy of Human Needs Model 3) Two-Factor (Motivator-hygiene) Theory

For production process control, what is worker training?

1) Worker Training - human relations skills are vital for anyone who has contact with the public

What are the 4 components of production process control?

1) Worker training 2) Just in time Production Systems 3) Material Requirements Planning (MRP) 4) Quality Control

What are the 5 categories of long range operations planning?

1) capacity 2) quality 3) location 4) layout 5) methods planning

What are the 3 options to pricing an existing product?

A firm has three options for pricing existing products: 1. Pricing above prevailing market prices for similar products to take advantage of the common assumption that higher price means higher quality 2. Pricing below market prices while offering a product of comparable quality to higher-priced competitors 3. Pricing at or near market prices

What is quality?

A product's fitness for use in terms of offering the features that consumers want o Offering the features that consumer want o Modern quality management (such as ISO) recognizes the importance of; customer satisfaction, prevention over inspection, management responsibilities, continuous improvement • Customer satisfaction - need to understand customer expectations, must conform to requirement (produces what is said it would produce), must conform to fitness of use (functional), need to measure customer satisfaction • Prevention over inspection - cost of preventing mistakes much less then correct, an ounce of prevention is worth...

What are technical skills?

Allow managers to perform specialized tasks - ex. financial manager - specific knowledge around regulations regarding taxes..extc. - skills associated with performing specialized tasks within a firm - developed through education and experience - especially important for first line managers

What is important for becoming a manager?

Becoming a Manager - education and experience allow you to acquire necessary blend of science and art - many managers periodically return to campus to participate in executive or management development programs - advantage of education as a source of management skills is that you can follow a well-developed program of study and become familiar with current research and thinking on management - day to day experiences that managers have as they try to achieve company goals and keep their subordinates productive and happy are crucial in improving their effectiveness

What are business level strategies?

Business-Level (Competitive) Strategies - plan to establish profitable and sustainable competitive position - when firm decides on corporate level strategy, must have competitive advantage - competitive strategy - a plan to establish a profitable and sustainable competitive position - Michael porter 3 competitive strategies: o Cost leadership - becoming the low-cost leader in an industry o Differentiation strategy - tries to be unique in its industry along some dimension that is valued by buyers o Focus strategy - selecting a market segment and serving the customers in that market niche better than competitors

What is direct distribution?

Channel 1: Direct Distribution - DIRECT CHANNEL A distribution channel in which a product travels from producer to consumer without intermediaries. - producer to consumer - advantages: more cost effective (no other partners in middle), stronger consumer relationship, more control over quality & service - fewer parties involved in the distribution process - manufacturer holds more control over product/service delivery and thus quality - direct interaction with consumers - can lead to savings/higher quality - less coordination with channel partners

What are the characteristics and functions of money?

Characteristics of Money - Money - Any object generally accepted by people as payment for goods and services. - anything portable, divisible, durable, and stable can serve as money Functions of Money - barter economy—one in which goods are exchanged directly for one another - money economy - sell, receive money, and exchange the money for goods, - three functions of money: o It is a medium of exchange. o It is a store of value o It is a unit of account. - money adds convenience and simplicity to our everyday lives, for consumers and businesses alike

What is charismatic leadership?

Charismatic Leadership - Type of influence based on the leaders personal charisma - inspire others to do things or to do things better; done by conjuring up enthusiasm in others for a stated vision or goal; and enabling others to achieve this vision - high level self-confidence and strong need to influence others - communicate high expectations about follower performance and express confidence in their followers

What is the classical theory of motivation?

Classical Theory of Motivation - A theory of motivation that presumes workers are motivated almost solely by money - if money motivates, then paying employees results in higher levels of motivation - which leads to higher levels of production - also known as scientific management

What is the competitive environment of the marketing environment? What are the 3 types of competition?

Competitive Environment - marketers must convince buyers that they should purchase one company's products rather than those of some other seller - seeks to make its product the most attractive - three types of competition: o Substitute products may not look alike or they may seem very different from one another, but they can fulfill the same need o Brand competition occurs between similar products and is based on buyers' perceptions of the benefits of products offered by particular companies. Brand competition is based on users' perceptions of the benefits offered by each product. o International competition matches the products of domestic market- ers against those of foreign competitors

What are competitive and performance factors?

Competitive factors - low price, high quality, fast delivery, reliable delivery, wide range of products/services, ability to change timing or volume of service/good Performance factors - cost, quality, speed, dependency, flexibility (mix), flexibility (volume and/or delivery)

What is contingency planning?

Contingency Planning " identify in advance changes that might occur " identify ways the company can respond to changes

What is controlling?

Controlling - The portion of a manager's job concerned with monitoring the firm's performance and, if necessary, acting to bring it in line with the firm's goals - Control process: beings when managers establish standards o Managers then measure actual performance each year against standards o If two amounts agree, organization continues on its present course o If vary significantly, one of the other needs adjustment - Can also show where performance is better (or worse) than expected and can serve as a basis for providing rewards or reducing costs

What is crisis management?

Crisis Management " methods for dealing with emergencies

What is de-regulation?

DEREGULATION - Deregulation has allowed banks to alter their historical role as inter- mediaries between depositors and borrowers.

What are detailed schedules?*

Detailed Schedules - show daily work assignments with start and stop times for assigned jobs at each workstation - weekly or daily - what tasks? When? Who? - Detailed short-term schedules allow managers to use customer orders and information about equipment status to update sizes and the variety

What is employee behaviour? What are the 3 types?

Employee Behaviour - the pattern of actions by the members of an organization that directly influences the organization's effectiveness - 3 types: 1) performance behaviours are those that are directly involved in performing a job o Does the employee behaviour meet the requirements of the job description? o Concerns what? (what is the employee actually doing, specific tasks fo job description) and the How? (how is it being done, behaviour exhibiting toward coworkers and management, method and means to perform) 2) organizational citizenship - provide positive benefits to the organization in more indirect ways o go above and beyond the job requirements o Ex. Trent community outreach 3) Counterproductive behaviours - Behaviours that detract from organizational performance - ex. Absenteeism, tardiness, theft, sabotage, aggression, violence

What is the equity theory?

Equity Theory - The theory that people compare 1) what they contribute to their job with that they get in return and 2) their input/output ratio with that of other employees - compare own ratios to other employees - when people think they are being inequitably treated, they might do various things to restore fairness

What is evaluating alternatives?

Evaluating Alternatives - increase chance that the alternative finally chosen will be successful

What is the expectancy theory?

Expectancy Theory - the theory that people are motivated to work towards rewards that they want and that they believe they have a reasonable chance of obtaining - work harder if there is some kind of incentive - or don't work as hard if hard work leads to undesirable outcome (ex. Promotion with more travel)

Who are first-line managers?

First-Line Managers - those managers responsible for supervising the work of employees - supervisor, office manager, group leader

What is Following Up and Evaluating the Results?

Following Up and Evaluating the Results - make sure the alternative has served its original purpose - if not working could implement another identified alternative, recognize situation not correctly defined to begin with and start the process all over again, or decide original alternative appropriate

What are the steps to formulating a strategy?

Formulating Strategy - strategy is wider in scope and is a broad program that describes how a business intends to meet its goals, how it will respond to new challenges, and how it will meet new demands - strategy formulation - creation of a broad program for defining and meeting an organization's goals - 3 steps: o 1) Setting strategic goals- long-term goals derived directly from the firm's mission statement o 2) Analyzing the organization and its environment • SWOT analysis - identification and analysis of organizational strengths and weaknesses and environmental opportunities and threats as part of strategy formulation • Strengths and weaknesses are internal and assessed using organizational analysis • Opportunities and threats are external and assessed using environmental analysis o 3) Matching the organization and its environment • matching environmental threats and opportunities with corporate strengths and weaknesses • firm should attempt to leverage its strengths to capitalize on opportunities and counteract threats • should attempt to shield weaknesses

What are decision-making skills?

Help managers define problems or opportunities and select best course of action -decisions with limited knowldge - Skills in defining problems and selecting the best course of action - 3 basic decision characteristics: o managers must make both problem decisions and opportunity decisions o decisions managers make are either programmed decisions (frequent, high structured) or non-programmed decisions o decisions under several different risk conditions • certainty - manager knows what alternatives are available and what conditions are associated with each alternative • risk - alternative may be known, but their costs are simply probabilities rather then certainties • uncertainty - does not know all of the possible alternatives or the outcomes associated with each alternative

What are the different areas of management?

Human Resource Managers - hire employees, train them, evaluate their performance, decide how they should be compensated, deal with labour unions Operations Managers - responsible for a company's system for creating goods and services - production control, inventory control, quality control Information Managers - responsible for designing and implementing various systems to gather, process, and disseminate information Marketing Managers - development, pricing, promotion, distribution of products and services - responsible for getting these products and services to buyers Financial Managers - plan and oversee financial resources Other Managers

What are two types of collateral?

INVENTORY AS COLLATERAL - lender lends the borrower some portion of the stated value of the inventory ACCOUNTS RECEIVABLE AS COLLATERAL - pledging accounts receivable. In the event of non-payment, the lender may seize the receivables (funds owed the borrower by its customers). If these assets are not enough to cover the loan, the borrower must make up the difference

What is the financial pillar #4?

INVESTMENT DEALERS - Investment dealers (stockbrokers or underwriters) are the primary dis- tributors of new stock and bond issues (the underwriting function) - also facilitate secondary trading of stocks and bonds, both on stock exchanges and on over-the-counter stock and bond markets (the bro- kerage function).

What is implementing the chosen alternative?

Implementing the Chosen Alternative - managers have to implement the chosen alternative - employee resistance to change needs to be considered (insecurity, inconvenience, fear) - unanticipated consequences are still likely

What is meant by improving process flows?

Improving Process Flows - Improving process flows at goods-producing operations begins by documenting current production practices. - process flowchart - identifies the sequence of production activities, movement of materials, and work performed at each stage of the process. - analyzed to isolate wasteful activities, sources of delays, and other inefficiencies. The final step is implementing improvements.

What are individual differences? What are the 2 main types?

Individual Differences - Personal attributes that vary from one person to another, make that person unique - 2 main categories: Personality, emotional intelligence

What is integrated marketing communications?

Integrated Marketing Communications - consumers get messages from multiple media sources o need to integrate communication channels to deliver a consistent message o IMC = carefully integrating and coordinating a company's communications to deliver a clear, consistent message

Describe the SWOT analysis?

Internal strength - within organization, what we are good at doing, better than competition ex. coca cola - strength is strong brand Internal weaknesses - where firms can improve ex. focus on limited number products External opportunities - trends, technological changes ex. coke - increased consumer demand for healthier beverages External Threats - obstacles facing, what competitors doing ex. coke - issue with raw material sourcing, threatened by indirect competitors like starbucks

What is intuition?

Intuition - feels right, hunch - based on years of experience and practice in making decisions in similar situations what feels right. experience knowldege

What is Marketing Management? What are the tasks?

Is the art and science of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior customer value vDevelop market strategies and plans vCollect market insights vConnect with customers vBuild strong brands vDeliver and communicate value vEstablish and maintain long-term relationships vShape offerings to deliver value vCreate long term growth

What is job satisfaction?

Job Satisfaction - the extent to which people have positive attitudes towards their jobs - absent less often, good organizational citizens, stay with the organization

What is job enrichment?

Job enrichment - a method of increasing employees' job satisfaction by extending or adding motivating factors such as responsibility or growth • Accomplished by job redesign which involves combining tasks to increase job variety, forming natural work groups, establishing client relationships • Combining tasks - enlarging jobs and increasing their variety to make employees fell that their work is more meaningful • Forming natural workgroups - workers can exchange jobs and plan their work schedules to see themselves as part of a team not just individual tasks • Establishing Client Relationships - let employees interact with customers. Gives workers greater feelings of control over their jobs and more feedback about their performance

For production process control, what is just in time production systems?

Just in time Production Systems - A method of inventory control in which materials are acquired and put into production just as they are needed. - resource continually flow from raw materials to the finished product - Advantages: inventory management, reducing cost by not having money tied up in warehousing - disadvantages: needs to have fallback plan incase supplier cant meet required schedule

What is leadership?

Leadership - the process of motivating others to work to meet specific objectives - managers motivate, inspire, influence subordinates to work toward certain goals - being a manager does not ensure the person Is a leader

What is leading?

Leading (or directing) - the portion of a manager's job concerned with guiding and motivating employees to meet the firm's objectives - must have ability to motivate their employees to set challenging goals and to work hard to achieve them - employees will respect their leaders, trust them, believe that by working together both company and employees will benefit " guiding and motivating subordinates to meet objectives " managers have various responsibilities with regard to their employees - authority to give orders (direct people) - ability to guide employees - power to motivate subordinates

What are the levels of management?

Levels of Management - top, middle, first-line - in most firms, more middle managers then top managers and more-first line managers then middle managers - authority and complexity of duties increase as move up pyramid

What is locus of control?

Locus of control - extent to which a person believes that their behaviour has a real effect on what happens to them - internal locus of control - believe they control what happens to them - external locus of control - believe that fate or luck controls what happens to them

What is machiavellainiasm?

Machiavelliasnism - refers to behaviour designed to gain power and control

What are management roles and the different types?

Management Roles - worked at unrelenting pace, their activities were characterized by brevity, variety and fragmentation, preferred 'live' action and emphasized work activities that were current, specific, and well defined, attracted to verbal media - Interpersonal roles: 1)figurehead 2) leader 3) liason - Informational roles: 1) monitor 2) disseminator 3) spokesperson - Decision making roles: 1) entrepreneur 2) disturbance handler 3) resource allocator 4) negotiator

How does management manage change?

Managing Change " Cultural change process " management formulates vision of new company " new systems of appraisal and compensation - difficult - might not actual change because people scared of change

What is total quality management?

Managing for Quality - Total Quality Management (TQM) - A concept that emphasizes that no defects are tolerable and that all employees are responsible for maintaining quality standards. o customer focus is the starting point for TQM - includes using methods for determining what customers want and then making sure that all the company's activities and people are focused on fulfilling those needs o total participation is critical; if all employees are not working toward improved quality, the firm is wasting potential contributions from its human resources and is missing a chance to become a stronger competitor in the marketplace o TQM in today's competitive markets demands continuous improvement of products; after-sales service; and all of the company's internal processes, such as accounting, delivery, billing, and information flow. o Leadership and customer focus are key o Requires highest level of commitment (no defects are tolerable) o Highlights continuous improvement o All employees are responsible for maintaining quality standards

What is manufacturing resource planning?

Manufacturing resource Planning (MRP II) - an advanced version of MRP that ties together all parts of the organization into the company's production activities. - production, inventory, human resources, marketing, finance

What is Maslows Hierarchy of Human Needs Model?

Maslows Hierarchy of Human Needs Model - Theory of motivation describing five levels of human needs and arguing that basic needs must be fulfilled before people work to satisfy higher-level needs. - lower end needs must be met first: o Physiological Needs - concerned with survival (food, water, shelter, sleep) • A job, income o Security needs - stability and protection from the unknown • Ex. No physical harm • Ex. Job security, safe working conditions o Social Needs - needs for friendship and companionship • Ex. Friendship • Ex. Nice coworkers, sense of belonging o Esteem needs - needs for status, recognition, self-respect • Ex. Respect, sense of achievement o Self-actualization - needs for self-fulfillment • Ex. Doing something good o Once needs at one level have been satisfied, they cease to motivate behaviour - lower level needs need to be satisfied first

What are human relations skills?

People skills". Allow managers to lead, motivate and coordinate with their subordinates - connect with employees and managers. Resovling conflicts mentoring people - Skills in understanding and getting along with people - Lead, motivate, communicate, get along with subordinates - Important at all levels of management - All managers in the hierarchy act as bridges between their bosses, their subordinates, and other managers at the same level in the hierarchy

What is performance quality?

Performance Quality - The overall degree of quality; how well the features of a product meet consumers' needs and how well the product performs.

What is pricing variance?

Pricing Variance - based on different perspectives (commodity, branded good, service, experience)

What are pricing objectives?

Pricing objectives - are the goals that sellers hope to achieve in pricing products for sale. - profit, sales/market share, survival, status quo - Pricing decisions are also influenced by the need to compete in the marketplace, by social and ethical concerns, and even by corporate image. - Generate interest and excitement in the product - Discourage competitors from cutting price - Social, ethical or ideological...

What is pricing?

Pricing — determining what the customer pays and the seller receives in exchange for a product. Setting prices involves understanding how they contribute to achieving the firm's sales objectives. - pricing decisions have important implications for a firm's net income/profit

What is the product mix? What is the product line?

Product mix - the group of products a company has for sale Product line - a group of similar products intended for a similar group of buyers

What is psychographic segmentation?

Psychographic Segmentation - PSYCHOGRAPHIC VARIABLES Consumer characteristics, such as lifestyles, opinions, interests, and attitudes that may be considered in developing a segmentation strategy. - help us understand why two demographically identical people may make totally different purchases

What is the purpose of goal setting?

The purposes of Goal Setting 1) goal setting provides direction, guidance, and motivation for all managers 2) goal setting helps firms allocate resources 3) goal setting helps to define corporate culture 4) goal setting helps managers assess performance

Who are managers? What do good managers do?

Who are Managers? - the people who plan, organize lead, and control the operations of an organization - important for all kinds of organizations - regardless of the nature and size of an organization, managers are among its most important resources Good Managers • Responsible for business performance ! Effective—do the right things; achieve goals ! Efficient—do things right; lower costs • Accountable to all key stakeholders ! Develop strategic and tactical plans ! Analyze competitive environments and plan, organize, direct, and control operations - make sure resources are used efficiently and effectively

What is marketed?

consumer goods: tangible products purchased by individuals for their use. Ex: vehicles, clothing, phones, etc. industrial goods: products purchased by companies to use directly or indirectly to produce other products or services. Ex: Airplanes, machinery, etc. services: intangible products to serve individual users' needs. Ex: legal advice, bus ride, student advisor, etc. ideas: thoughts or philosophies Ex: political ideas, copyright information

What is mobile and other advertising media?

• Mobile phone ads advantages of this medium include accessibility (always handy), cost (a fraction of TV), timeliness (great to push out mes- sages about current sales for example), and the ability to personalize messages • format can be difficult to read or appreciate (small size), and it suffers from a lack of standardization of mobile device technology and privacy issues • combination of many additional media—including catalogues, sidewalk handouts, Yellow Pages, skywriting, special events, and door- to-door communications

What is soft manufacturing?

• Soft Manufacturing - Emphasizes computer software and computer networks instead of production machines. • Ex. Emphasizes computer software and networks instead of manually controlled manufacturing • Movable factory - some developing countries with lots of labour, but little capital, are buying up equipment from industrialized countries that is still relatively modern and then using it to produce new and untested products in their own country.

What is outdoor advertising?

• billboards, signs, and advertisements on buses, taxis, and subways—is relatively inexpensive, faces little competition for customers' attention, and is subject to high repeat exposure • outdoor ads can present only limited information, and sellers have little control over who sees their advertisements.

What are the quality assurance tools?

• competitive product analysis • value-added analysis • statistical process control • quality/cost studies • quality-improvement teams • benchmarking • getting closer to the customer • ISO 9000:2000 and ISO 14000 • re-engineering • adding value through supply chains

What is online consumer engagement?

• engagement is now more likely to be two-way as more companies ask consumers to get involved with the brand and actually influence marketing decisions. • Advertisers are observing consumer behaviour and as a result they are spending more online

What is radio advertising?

• more than 90 percent of Canadians aged 12 years and over listen to the radio more than 19 hours a week • fairly inexpensive and, since most radio is programmed locally, this medium gives advertisers a high degree of customer selectivity. • radio stations are already segmented into listening categories • radio only permits an audio presen- tation and ads are over quickly • pay little attention to advertisements

What are attitudes? What are the 3 components?

Attitudes - A persons beliefs and feelings about specific ideas, situations, or people - formed by variety of forces: personal values, experiences, personalities - contain 3 components: cognition, affect, intention - cognition - knowledge a person has about someone or something o cognitive dissonance - when two sets of cognitions or perceptions are contradictory, or incongruent o people behave in a way that is inconsistent with their attitudes - affect - persons feelings toward someone or something - intention - guides a persons behaviour

What is authoritarianism?

Authoritarianism - extent to which a person believes that power and status differences are appropriate within social systems such as organizations

What is financial pillar #2?

ALTERNATE BANKS Trust Companies - TRUST COMPANY Safeguards funds and estates entrusted to it; may also serve as trustee, transfer agent, and registrar for corporations. - trustee, usually a trust company, to protect the bondholders' interests. - transfer agent records changes in ownership of a corporation's shares of stock, - registrar certifies to the investing public that stock issues are correctly stated and comply with the corporate charter - Other ser- vices include preparing and issuing dividend cheques to stockholders and serving as trustee for employee profit-sharing funds Credit Unions/Caisses Populaires - CREDIT UNIONS (CAISSES POPULAIRES) Cooperative savings and lending association formed by a group with common interests. - Members (owners) can add to their savings accounts by authorizing deductions from their paycheques or by making direct deposits. They can borrow short-term, long-term, or mortgage funds from the credit union. - offer many services available at banks and tend to pay dividends to members when they make profits.

What are conceptual skills?

Ability to think in abstract, analyze situations and see beyond the obvious ex. ability to look beyond current business and asss how ecommerce impact bsuiness in 5 years - Abilities to think in the abstract, diagnose and analyze various situations, and see beyond the present situation - Help managers recognize new market opportunities and threats - Important for top managers

What are time-management skills?

Allow managers to productively use their time - set priorities, prodcutviely use time. - Skills associated with the productive use of time - Important for highly paid top managers - For leading causes of wasted time: o Paperwork o Telephone o Meetings o Email

What are the different kinds of goals?

Kinds of Goals - vision (purpose) - a statement indicating why an organization exists and what kind of organization it wants to be - mission statement - an organizations statement of how it will achieve its purpose in the environment in which it conducts its business o often include core values and commitment to ethical behaviour - long-term goals - extended periods of time, 5 years or more into the future - intermediate goals - set for a period of one to five years into the future - short-term goals - set for one year or less - SMART goals - goals that are specific, measureable, acheiveable, relevant, time-framed o Managers who set these goals have higher performance

For long-range operations planning, what is layout planning? What are the 3 widely used?

Layout Planning - • Layout of machinery, equipment, and supplies determines whether a company can respond quickly and efficiently to customer requests for more and different products and services, or whether it will find itself unable to match competitors' production speed or convenience of service • 3 widely used: •** Process layout (custom-product layout) - A way of organizing production activities such that **equipment and people are grouped together according to their function. o main advantage of process layouts is flexibility o At any time, the shop can process individual customer orders, each requiring a different kind of work. o Ex. FedEx - different areas where can ship packages, take care of printing needs •** Product Layout (assembly line) - A type of product layout in which a partially finished product moves through a plant on a conveyor belt or other equipment. o** Organizing equipment and people to produce one type of product or service o** assembly lines, industrial robotics, lean manufacturing o efficient for large-volume make-to-stock operations that mass produce many units of a product - **Fixed Position Layout - A way of organizing production activities in which labour, equipment, materials, and other resources are brought to the geographic location where all operations work is done. - **products cannot be moved around. Labour, equipment, materials are brought to the location where production takes place • both goods-producing and service-producing organizations may use robots to perform repetitive operations quickly and accurately

Who are middle managers?

Middle Managers - Those managers responsible for implementing the decisions made by top managers (strategies, policies, decisions) - Plant manager, operations manager, division manager

What are operations?

Operation - all of the activities involved in making goods and providing services for customers - all businesses are service operations to some extent

What is operations (production) management?

Operations (or production) management - A set of methods and technologies used in the production of a good or a service - operations managers must bring raw materials, equipment, and labour together under a production plan that effectively uses all of the resources available in the production facility - must control costs, quality levels, inventory, and plant and equipment

What is operations control?

Operations Control - Managers monitor production performance by comparing results with plans and schedules. - quality control - materials management -> production-process control - Follow-up—checking to ensure that production decisions are being implemented—is an essential and ongoing facet of operations control - involves materials management and production process control. Both activities ensure that schedules are met and that production goals are fulfilled, both in quantity and in quality.

What is the operations process?

Operations process - activities, methods and technologies used in the production of a good or service

What is organizational commitment?

Organizational Commitment - An individuals identification with the organization and its mission - can be increased by giving employees a voice

What is organizational Politics?

Organizational Politics - the actions that people take as they try to get what they want - may or may not be beneficial to the organization, but they do influence decisions making, particularly if the person taking the action is a powerful manager -people in organization take action to get what want. might not align with organizaton. ex. passing chain of command get approval for project

What is organizing?

Organizing - that portion of a manager's job concerned with mobilizing the necessary resources to complete a particular task " determining how to use and structure existing resources to implement the plan " arranging jobs in a structure to create an efficient task system

What is output? What are pure goods and pure services? Give some examples.

Output - a mixture of goods and services - pure goods - tangible, can be stored, production precedes consumption, low customer contact, can be transported, quality is evident - ex. Crude oil production - pure services - intangible, cannot be stored, production and consumption are simultaneous, high customer contact, cannot be transported, quality difficult to judge - ex. Psychotherapy clinic - ex. Restaurant would be 50/50 of each

What is penetration pricing?

PENETRATION PRICING Setting an initially low price to establish a new product in the market. - best strategy when introducing a product which has or expects to have competitors very quickly.

What are 5 services offered by the bank?

PENSION SERVICES - Most banks help customers establish savings plans for retirement TRUST SERVICES -Many banks offer trust services—the management of funds left "in the bank's trust. INTERNATIONAL SERVICES - The three main international services offered by banks are currency exchange, letters of credit, and banker's acceptances FINANCIAL ADVICE - Many banks, both large and small, help their customers manage their money. ELECTRONIC FUNDS TRANSFER - Electronic funds transfer (EFT) provides for payments and collections by transferring financial information electronically - Automated banking machines/automated teller machines (ABMs/ ATMs). - Direct deposits and withdrawals. - DEBIT CARD Plastic card that allows an individual to transfer money between accounts. - SMART CARD Credit-card-sized plastic card with an embedded computer chip that can be loaded with "electronic money." - Mobile (digital) wallet.

What is price skimming?

PRICE SKIMMING Setting an initially high price to cover new product costs and generate a profit. - works only if marketers can convince customers that a new product is truly different from existing products and there is no foreseeable major competition on the horizon

What is personality? What are the big 5 personality traits?

Personality - the relatively stable set of psychological attributes that distinguish one person from another Big Five Personality Traits: • Agreeableness - persons ability to get along with others (gentle, cooperative, forgiving, understanding, good-natured) • Conscientiousness - number of things a person tries to accomplish (organized, systematic, careful, thorough, responsible, self-disciplined) • Emotionality - degree to which people tend to be positive or negative In their outlook and behaviours toward others (poised, calm, resilient, secure) • Extroversion - persons comfort level with relationships (sociable, talkative, assertive, open to establishing new relationships) • Openness - reflects how open or rigid a person is in terms of his or her beliefs (curious and willing to listen to new ideas and the change their own ideas, beliefs, and attitudes in response to new information)

What does planning involve?

Planning - The portion of a manager's job concerned with determining what business needs to do and the best way to acheive it. - activities of determining the firm's goals and developing an action plan o achieve these goals - 5 steps: o 1) goals are established for the organization ex. redeuce defect product by 0.01% o 2) identify whether gaps exists between the company's desired and actual position ex. how much defect currently produce o 3) develop plans to achieve the desired objectives ex. whats casuing defects. develop plan o 4) plans that have been decided upon are implemented o 5) effectiveness of the plan is assessed ex. measruing defect rate months after to see if acheving goal. if yeas then good, if no go back and develop new action plan

What is the political legal side of the marketing environment?

Political Legal Environment - Political activities, both global and domestic, have a major influence on marketing - gain public support for products and activities - raise public awareness of important issues, and companies contribute to political candidates. - legislation and government programs can be favourable or not - marketing managers try to maintain favour by: gaining public support for products, advertising for public awareness of important issues, lobbying and contributing to political parties (within restrictions)

What are the different types of pricing strategies?

Pricing Strategies - economy pricing, penetration pricing, premium pricing, price skimming Economy pricing - valuation technique which assigns a low..... Premium pricing - valuation technique which assigns a higher price to products than competitors Penetration pricing - setting an initially low price to establish a new product in a market

What is the importance of pricing?

Pricings role in the marketing mix is to tap in to the value created by the other P's and generate revenue 1) to fund the firms current value creation activities 2) to support research that will lead to future value creation 3) to generate a profit from the firms activities

What is the evolution of marketing concepts?

Product Era • 1900-1960's • Informing people about products Consumer era - 1960's-2000's - persuading people to buy Relationship Era - 2000-now - fostering sustainable relationships

What is self-esteem?

Self-esteem - extent to which a person believes that he or she is a worthwhile and deserving individual

What are service operations?

Service Operations - Productions activities that yield tangible and intangible service products - ex. Entertainment, transportation, education, food preparation

What are service producing processes? What are the two levels of contact?

Service-producing Processes - customers are involved in and can affect the transformation process - high-contact systems - the customer is part of the process o ex. Doctors visit - low-contact systems - the customer is not physically present o ex. Drop off car for oil change

What is important in setting business goals?

Setting Business Goals - performance targets to measure success or failure at every level - what results are desired, how these results are to be achieved

What is the social-cultural side of the marketing environment?

Socio-cultural Environment - Changing social values force companies to develop and promote new products - values, beliefs, and ideas of consumers changing preferences, wants and needs

What is a vision?

Vision (or Purpose) " Clear 'photograph' of organization at some point in the future " Long-term, outlines what the organization wants to be in the future " Examples " Microsoft: "Empower people through great software anytime, anyplace, and on any device." " Walmart: To be the best retailer in the hearts and minds of consumers and employees." Why a vision? " "If you don't know where you are going you are probably not going to get there" - provides direction on what thte organizaton wants or needs to be like in the future to be successful

Are vision and mission different?

Vision and Mission are different • Mission is what the enterprise is about • Vision is what the enterprise wants to become • Strategy maps out how the organization should get from where it is today to where it wants to go • Goals are indicators of how well the strategy is working

What is wholesaling?

Wholesaling - most wholesalers are independent operations that buy products from manufacturers and sell them to various consumers or other businesses - usually provide storage, delivery, and addi- tional value-adding services, including credit, marketing advice, and mer- chandising services, such as marking prices and setting up displays. - Merchant wholesalers take title to merchandise; that is, they buy and own the goods they resell to other businesses.

What is goods production?

Goods Production - Production activities that yield tangible products - ex. Radios, newspapers, buses, textbooks

What do managers actually do?

! Mintzberg (1973), Professor at McGill University ! Studied CEO's and their work 1. Managers work at an unrelenting (unending) pace 2.Their work is characterized by brevity, variety and fragmentation 3.They prefer live action and emphasized work activities that were current, specific and well- defined 4. They were attracted to verbal media

What are the stages of a product life cycle?

- 1) Introduction. This stage begins when the product reaches the marketplace. Marketers focus on making potential customers aware of the product and its benefits. Because of extensive promotional and development costs, profits are nonexistent - 2) Growth. If the new product attracts and satisfies enough consumers, sales begin to climb rapidly. - 3) Maturity. Sales growth starts to slow. Although the product earns its highest profit level early in this stage, increased competition eventually forces price-cutting, increasing advertising and promotional expenditures and lowering profits. Toward the end of the stage, sales start to fall. - 4) Decline. Sales and profits continue to fall, as new products in the introduction stage take away sales.

What are the 5 major areas of materials management?

- 5 major areas: o Transportation. Includes the means of transporting resources to the company and finished goods to buyers. o Warehousing. Storage of both incoming materials for production and finished goods for physical distribution to customers. o Inventory control. Includes the receiving, storing, handling, and counting of all raw materials, partly finished goods, and finished goods. It ensures that enough material inventories are available to meet production schedules. o Supplier selection. Finding and choosing suppliers of services and materials to buy from. It includes evaluating potential suppliers, negotiating terms of service, and maintaining positive buyer-seller relations. o Purchasing. Acquisition of all the raw materials and services a company needs to produce its products. Most large firms have purchasing departments to buy proper materials in the amounts needed.

What does it mean to factor accounts receivable?

- A firm can also raise funds by factoring (i.e., selling) its accounts receivable - purchaser of the receivables (called a factor)

What are secured and unsecured bank loans?

- A secured loan is one backed by collateral (e.g., accounts receiv- able); if the borrower cannot repay, the bank sells the collateral. - An unsecured loan is backed only by the borrower's promise. Only the most creditworthy borrowers can get unsecured loans. - PRIME RATE OF INTEREST The lowest rate charged to borrowers. - Borrowers pay interest on their loans.

What is the bill of materials?

- BILL OF MATERIALS - Production-control tool that specifies the necessary ingredients of a product, the order in which they should be combined, and how many of each are needed to make one batch. o fewer early arrivals, less frequent stock shortages, and lower storage costs

What is branding and brand equity?

- BRANDING A process of using symbols to communicate the qualities of a product made by a particular producer. Adding Brand Through Brand Equity - BRAND EQUITY The added value a brand name provides to a product beyond its basic functional benefits.

What is a breakeven analysis? What is the breakeven point?

- BREAKEVEN ANALYSIS For a particular selling price, assessment of the seller's costs versus revenues at various sales volumes. o shows, at any particular selling price, the amount of loss or profit for each possible volume of sales. - BREAKEVEN POINT - The sales volume at which the seller's total revenue from sales equals total costs (variable and fixed) with neither profit nor loss. Breakeven point (in units) = Total fixed cost / Price - variable cost - Zero profitability at the breakeven point can also be seen by using the profit equation: o Profit = Total Revenue - (Total Fixed Cost + Total Variable Cost) o At breakeven point • Total revenue = variable costs + fixed costs

What is benchmarking?* What is getting closer to the customer?

- Benchmarking - Comparing the quality of the firm's output (internal benchmarking) with the quality of the output of the industry's leaders (external benchmarking) o Internal - compare to past performance o External - compare to competitors best practices - Getting Closer to the Customer - Successful businesses take steps to know what their customers want in the products or services they buy

What is business process re-engineering?

- Business Process Re-engineering - Redesigning of business processes to improve performance, quality, and productivity

What is business marketing? What are the 3 markets involved?

- Business marketing involves organizational or commercial markets that fall into three B2B categories: industrial, reseller, and government/institutional markets. Industrial Market - INDUSTRIAL MARKET An organizational market consisting of firms that buy goods that are either converted into products or used during production. Reseller Markets - RESELLER MARKET An organizational market consisting of intermediaries that buy and resell finished goods. Government and Institutional Market - Federal, provincial, and municipal governments are very important, not only for the laws they create and maintain, but also for their economic spending power. - INSTITUTIONAL MARKET An organizational market consisting of such non-governmental buyers of goods and services as hospital

What is capital structure?

- CAPITAL STRUCTURE Relative mix of a firm's debt and equity financing. - conservative strategy is to use all-equity financing and no debt, because a company has no formal obligations for financial pay- outs. - riskiest strategy would be to use all debt financing

What is channel conflict?

- CHANNEL CONFLICT Conflict arising when the members of a distribution channel disagree over the roles they should play or the rewards they should receive. o one member has more power than the others or is viewed as receiving preferential treatment o disrupting the flow of goods to their destinations o channel captain—is the most powerful in determining the roles and rewards of other members

What is financial pillar #1?

- CHARTERED BANK A privately owned, profit-seeking firm that serves individuals, non-business organizations, and businesses as a financial intermediary. - Schedule I banks are those that are Canadian-owned and have no more than 10 percent of voting shares controlled by a single interest. Schedule II banks are those that may be domestically owned, but do not meet the 10 percent limit, or may be foreign-controlled

What is consumer behaviour? What are the influences on it?

- CONSUMER BEHAVIOUR The study of the decision process by which people buy and consume products. Influences on Consumer Behaviour - Psychological influences include an individual's motivations, perceptions, ability to learn, and attitudes. - Personal influences include lifestyle, personality, and economic status. - Social influences include family; opinion leaders (people whose opinions are sought by others); and such reference groups as friends, co-workers, and professional associates. - Cultural influences include culture (the way of living that distinguishes one large group from another); subculture (smaller groups with shared values); and social class (the cultural ranking of groups according to such criteria as background, occupation, and income).

What are consumer and industrial goods? What are services?

- CONSUMER GOODS Physical products purchased by consumers for personal use. o Firms that sell goods to consumers for personal consumption are engaged in consumer marketing, also known as B2C (business-to- consumer) marketing. - INDUSTRIAL GOODS Physical products purchased by companies to produce other products. o Firms that sell goods to other companies are involved in industrial marketing, also known as B2B (business-to-business) marketing. - SERVICES Products with non-physical (in-tangible) features, such as information, expertise, or an activity that can be purchased.

What is customer relationship management? What is data mining?

- CUSTOMER RELATIONSHIP MANAGEMENT (CRM) Organized methods that a firm uses to build better information connections with clients, so that stronger company-client relationships are developed. ex. amazon - Compiling and storing customers' data, known as data warehousing, provides the raw materials from which marketers can gather information that allows them to find new clients. - Data mining automates the massive analysis of data by using computers to sort and search for previously undiscovered clues about what customers look at and react to, and how they might be influenced

What are callable bonds? Serial bonds? Convertible bonds?

- Callable Bonds o issuer of callable bonds may call them in and pay them off before the maturity date at a price stipulated in the indenture. o issuer must still pay a call price to call in the bond. The call price usually gives a premium to the bondholder. o premium is merely the difference between the face value and call price o sinking-fund provisions. The issuing company is required to put a certain amount of money into a special bank account annually - Serial Bonds o serial bond, the firm retires portions of the bond issue in a series of different preset dates. - Convertible Bonds o Convertible bonds can be converted into the common stock of the issuing company

What is competitive product analysis?*

- Competitive Product Analysis - Process by which a company analyzes a competitor's products to identify desirable improvements

What are the levels of strategy?

- Corporate-level strategy - identifies the various businesses a company will be in, and how these businesses will relate to each others - business-level (competitive) strategy - identifies the ways a business will compete in its chosen line of products or services - functional strategies - identify the basic courses of action each department in the firm will pursue so that it contributes to the business's overall goals ex. rolex - high end watch maker corporate - luxury watch market businsess- high quality watchs priced toward higher end, great sutomer servie functional - marketing activites to compete in high end

Explain debt financing as a form of long-term loan?

- DEBT FINANCING Raising money to meet long-term expenditures by borrowing from outside the company; usually takes the form of long-term loans or the sale of corporate bonds. - most appealing to companies that have predictable profits and cash-flow patterns

What is demographic segmentation?

- DEMOGRAPHIC VARIABLES Characteristics of populations that may be considered in developing a segmentation strategy. o age, income, gender, ethnic background, marital status, race, religion, and social class - Canada's great ethnic diversity requires companies to pay close attention to ethnicity as a segmentation variable.

What is direct marketing?

- DIRECT (OR INTERACTIVE) MARKETING One-on-one non- personal selling by non-store retailers and B2B sellers using direct contact with prospective customers, especially via the internet. - Direct connections with individual consumers - Many forms of direct marketing exist, but all forms are less public, customized, and interactive - Catalogues, direct mail - advantage of direct marketing is that you can target the message to the individual and you can measure the results.

What is the distribution mix?

- DISTRIBUTION MIX The combination of distribution channels by which a firm gets its products to end users.

What is classifying organizational products?

- Depending on how much they cost and how they will be used, organizational products can be divided into three categories: production items, expense items, and capital items. - Table 12.3

Explain equity financing as a form of long-term loans?

- EQUITY FINANCING Raising money to meet long-term expendi- tures by issuing common stock or by retaining earnings. - involve putting the owners' capital to work

What are 5 of marketings most powerful promotional tools?

- Five of marketing's most powerful promotional tools are advertising, personal selling, sales promotions, direct or interactive marketing, and publicity and public relations

What is a GANTT chart?

- GANTT Charts - Scheduling tool that diagrams steps to be performed and specifies the time required to complete each step o Tool used for scheduling o Show the activities (steps) that are required and how long it takes to complete each step o Can be used to check progress o Present a sequence of events, need to finish first task before can start second

What is Geo-demographic Segmentation?

- GEO-DEMOGRAPHIC VARIABLES A combination of geographic and demographic traits used in developing a segmentation strategy.

What is Geographic Segmentation?

- GEOGRAPHIC VARIABLES Geographic units that may be considered in developing a segmentation strategy.

What is the goal-setting theory? What is management by objectives?

- Goal Setting Theory - the theory that people perform better when they set specific, quantified, time-framed goals o SMART goals increase employee performance o May lead to bad behaviour on part of managers Management by objectives (MBO) - a system of collaborative goal setting that extends from the top of an organization to its bottom • When employees meet with managers to set goals, • they learn more about company wide objectives, • feel that they are an important part of a team, • and see how they can improve company-wide performance by achieving their own goals

What is company productivity?

- High productivity gives a company a competitive edge because its costs are lower - it can offer its product at a lower price (and gain more customers), or it can make a greater profit on each item sold - Some companies have found they can increase their productivity by monitoring employee interactions - impacts: investors buying stock, employee profit-sharing plans, managers' plans for the future

What are the 3 types of distribution strategies?

- INTENSIVE DISTRIBUTION A distribution strategy in which a product is distributed in nearly every possible outlet, using many channels and channel members. - EXCLUSIVE DISTRIBUTION A distribution strategy in which a product's distribution is limited to only one wholesaler or retailer in a given geographic area - SELECTIVE DISTRIBUTION A distribution strategy that falls between intensive and exclusive distribution, calling for the use of a limited number of outlets for a product. o give special attention to the product in terms of sales efforts, display position, and so on

What are the different types of distribution channels?

- INTERMEDIARY An individual or firm that helps to distribute a product. o "middlemen," - WHOLESALER An intermediary who sells products to other busi- nesses for resale to final consumers. - RETAILER An intermediary who sells products directly to consumers.

What is the international monetary fund?

- INTERNATIONAL MONETARY FUND (IMF) United Nations agency consisting of 188 nations that have combined resources to promote stable exchange rates, provide temporary short-term loans, and serve other purposes. - to promote the stability of exchange rates - to provide temporary, short-term loans to member countries - to encourage members to cooperate on international monetary issues - to encourage development of a system for international payments

What is ISO 9000?*

- ISO 9000:2000 and ISO 14000 (environmental) - Certification program attesting to the fact that a factory, a laboratory, or an office has met the rigorous quality management requirements set by the International Organization for Standardization. o Program certifying that a company meets the rigorous standards of the international organizational for standardization (ISO) o To earn the rating, firms are measured by qualified consultants on: product testing, employee training, record-keeping, correcting defects o To get certified, companies must document the procedures followed by workers during every stage of production o purpose is to ensure a manufacturer's product is exactly the same today as it was yesterday and as it will be tomorrow

When does money need to flow in trade between countries?

- If trade between the two countries is in balance—if money inflows and outflows are equal for both countries—then money does not actually have to flow between the two countries

What are the key distinctions between a manager and leader?

- Key distinctions between manager and leader - Table 9.2 p. 214 - Leadership is necessary to create and direct change and to help the organization get through tough times - Management is necessary to achieve coordination and systematic results and to handle administrative activities during times of stability and predictability - Managament can help achieve planned orderly change - Leadership can keep the organization properly aligned with its environment - Leaders are people who: o Establish a vision o Align people o Motivate and inspire o Initiate change - Managers are people who: o Plan and budget o Organize people and resources o Monitor and control o Focus on predictability

What the M2?

- M-2 Everything in M-1 plus savings deposits, time deposits, and money market mutual funds. - easily converted to spendable forms - TIME DEPOSIT A deposit that requires prior notice to make a with- drawal; cannot be transferred to others by cheque. - MONEY MARKET MUTUAL FUNDS Funds operated by invest- ment companies that bring together pools of assets from many investors to buy short-term, low-risk financial securities.

What is market segmentation? Target market? Product positioning?

- MARKET SEGMENTATION The process of dividing a market into categories of customer types or "segments." - search for common traits of consumers. Focus on traits that affect product need and purchase behaviour - TARGET MARKET A group of people who have similar wants and needs and can be expected to show interest in the same products. - Some firms target more than one segment (with different offers) - PRODUCT POSITIONING The process of fixing, adapting, and communicating the nature of a product to appeal to the selected target market.

What is market share penetration?

- MARKET SHARE (MARKET PENETRATION) A company's percentage of the total industry sales for a specific product type.

What is a product? What is product differentiation?

- PRODUCT Good, service, or idea that is marketed to fill consumers' needs and wants. - Marketing begins with a product - PRODUCT DIFFERENTIATION Creation of a product feature or product image that differs enough from existing products to attract customers. - changing existing products by responding to trends or improving current offerings

What is product life cycle?

- PRODUCT LIFE CYCLE (PLC) A series of stages in a product's commercial life. - Depending on the product's ability to attract and keep customers, its PLC may be a matter of months, years, or decades

What is the marketing plan? What are the steps to developing one?

- MARKETING PLAN Detailed strategy for focusing marketing efforts on consumers' needs and wants - product, price, place, promotion - developing the marketing plan: o "First, you decide where you want to go and what you want to hap- pen when you get there. Why take this trip and not others, instead?" [Identify the objective or goal to be achieved.] o "At some stage you decide when the trip will happen and how you'll get to the destination." [Plan for when it will happen, and for the paths (or routes) that will be taken to get there.] o "Every trip requires resources so you identify the requirements, and compare them against resources that are available." [Evaluate resource requirements and availabilities.] o "If available resources are too expensive, then you adjust the trip so it becomes more affordable." [Adjust plans as needed to become realistic and feasible.] o "During and after the trip, you assess the successes (what went right) and the drawbacks (what went wrong) and consider them to make the next trip even better." [Keep notes and data about what happened because learning from this experience increases the chances for greater success on the next.]

What is market research?

- MARKETING RESEARCH The study of what customers need and want and how best to meet those needs and wants. - Increase competitiveness by clarifying the interactions among a firm's stakeholders (including customers), marketing variables, environmental factors, and marketing decisions.

What is the marketing strategy? What is the marketing mix?

- MARKETING STRATEGY all the marketing programs and activities that will be used to achieve the marketing goals o can be improved through experience by learning from past triumphs and mistakes. - Marketing managers are the people responsible for planning, organizing, leading, and controlling the organization's marketing resources toward supporting and accomplishing the organization's overall mission - MARKETING MIX A combination of product, pricing, promotion, and place (distribution) strategies used to market products.

What are the types of brand names?

- NATIONAL BRANDS Products distributed by and carrying a name associated with the manufacturer. - When a company with a well-known brand sells another company the right to place that brand on its products, these are called licensed brands (ex. harley davidson). -ex. kellogs, coca cola - PRIVATE BRANDS Products promoted by and carrying a name associated with the retailer or wholesaler, not the manufacturer. - ex. president's choice - GENERIC BRANDS No-frills products sold under the general category name rather than a specific company name. - ex. eggs

How does one organize, lead, and control for quality?

- Organizing for Quality o Everyone, from the chair of the board to the part-time clerk, must work to assure quality - Leading for Quality o that managers must inspire and motivate employees throughout the company to achieve quality goals o need to help employees see how they affect quality and how quality affects their jobs and their company o quality ownership - The concept that quality belongs to each employee who creates or destroys it in producing a good or service; the idea that all workers must take responsibility for producing a quality product - Controlling for Quality o By closely monitoring its products and services, a company can detect mistakes and make corrections o Companies that pay attention to quality standards and measurements typically provide high-quality products and services to customers

What is the packaging of products important?

- PACKAGING Physical container in which a product is sold, advertised, or protected. - in-store advertisement that makes the product attractive; it clearly displays the brand; it identifies product features and benefits; and it reduces the risk of damage, breakage, or spoilage.

What is personal selling?

- PERSONAL SELLING Promotional tool in which a salesperson communicates one to one with potential customers. - involves personal interaction, personal selling requires a level of trust between the buyer and the seller. - most expensive form of promotion per contact, because presentations are generally made to one or two individuals at a time - Personal-selling expenses include salespeople's compensation and their overhead (travel, food, and lodging). - Person presentation by the sales force to build customer relationship - Sales presentations, trade shows - Face to face communication

What is a PERT chart?

- PERT Charts - program evaluation and review technique o Production schedule specifying the sequence and critical path for performing the steps in a project. o useful for customized projects in which numerous activities must be coordinated. o chart also identifies activities that will cause delays unless special action is taken at the right time o tool used for scheduling o show that activities (steps) that are required and how long it takes to complete each step o also specifies the critical path and identifies activities that can cause a delay

What are physical distributions?

- PHYSICAL DISTRIBUTION Activities needed to move a product efficiently from manufacturer to consumer. o includes warehousing and trans- portation operations. o make goods available when and where customers want them, keep costs low, and provide services to satisfy customers.

What is place distribution?

- PLACE (DISTRIBUTION) The part of the marketing mix concerned with getting products from producers to consumers. - channels through which they distribute products

What are the 3 different pricing tactics?

- PRICE LINING Setting a limited number of prices for certain categories of products. - PSYCHOLOGICAL PRICING A pricing tactic that takes advantage of the fact that consumers do not always respond rationally to stated prices. o odd-even pricing, is based on the theory that customers prefer prices that are not stated in even dollar amounts. - DISCOUNT A price reduction offered as an incentive to purchase.

What is pricing?

- PRICING The process of determining the best price at which to sell a product. - Determining the best price at which to sell a product is a difficult balancing act. - prices must support the organization's operating, administrative, research, and marketing costs. - cannot be so high that consumers turn to competing products - Low prices will generally lead to a larger volume of sales. - High prices will usually limit the size of the market, but will increase a firm's profits per unit - high prices may actually attract customers by implying that the product is especially good or rare.

What is the trait approach to leadership?

- The Trait Approach - a leadership approach focused on identifying the essential traits that distinguished leaders o Intelligence, dominance, self-confidence, energy, height, knowledge, drive, honesty, integrity

What is the push and pull strategy?

- PUSH STRATEGY A promotional strategy in which a company aggressively pushes its prod- uct through wholesalers and retailers, which persuade customers to buy it. - PULL STRATEGY A promotional strategy in which a company appeals directly to custom- ers, who demand the product from retailers, which demand the product from wholesalers. o Makers of industrial products often use a push strategy, while mak- ers of consumer products often use a pull strategy.

What is participative management and empowerment? What is quality circle?

- Participative Management and Empowerment - methods of increasing job satisfaction by giving employees a voice in the management of their jobs and the company - Say in how they do their jobs and how the company is managed o Wikis, Quality circle o Tapping into worker's knowledge about the job, encouraging them to be self motivated and to make suggestions for improvement, and giving them more authority and responsibility so that they feel they are a real part of the company's success o quality circle - a technique for maximizing quality of production. Employees are grouped into small teams that define, analyze, and solve quality and other process-related problems within their area o employees feel more committed to goals o empowerment is not desired by all employees, better to invite participation

What are the transportation options for distribution?

- Physically moving a product creates the highest cost many companies face. - firms must also consider the nature of the product, the distance it must travel, the speed with which it must be received, and customer wants and needs. - Differences in cost among the major transportation modes—trucks, railroads, planes, digital transmission, water carriers, and pipelines—are usually most directly related to delivery speed

What is productivity?

- Productivity measures how much is produced relative to the resources used to produce it. o Ratio of output to input o How much goods can we produce with certain amount of inputs? o Key sources of economic growth and competitiveness o Many international comparisons and country performance assessments o Different measures of productivity

What is industry productivity?

- Productivity varies across industries, and within any given industry it also varies across countries - agriculture, computer, steel have gained from new technology - impacts: labour-union negotiations, investors, suppliers

What are quality improvement teams?*

- Quality Improvement Teams - groups of employees from various work areas who meet regularly to define, analyze, and solve common production problems o goal is to improve both their own work methods and the products they make o may involve brainstorming, discussion, and the use of quality/cost study

What is relationship marketing?

- RELATIONSHIP MARKETING A marketing strategy that emphasizes building lasting relationships with customers and suppliers. - goal: customer satisfaction and retention

What are secured short-term loans?

- SECURED LOANS A short-term loan in which the borrower is required to put up collateral. - Inventories, accounts receivable, and other assets (e.g., stocks and bonds) may serve as col- lateral for a secured loan. - allow borrowers to get funds when they might not qualify for unsecured credit. - carry lower interest rates than unsecured loans

What are strategic, tactical and organizational plans?

- Strategic Plans - plans that reflect decisions about resource allocations, company priorities, and steps needed to meet strategic goals o Set by top management - Tactical Plans - Generally, short-range plans concerned with implementing specific aspects of a company's strategic plans o Involve upper and middle management - Operational Plans - Plans setting short-term targets for daily, weekly, and monthly performance o Developed by middle and lower level managers

What is supply chain and supply chain management?

- Supply Chain (value chain) - Flow of information, materials, and services that starts with raw-materials suppliers and continues through other stages in the operations process until the product reaches the end customer. o A group of companies and stream of activities involved in getting the product from raw materials to the end consumer o Starts with raw materials suppliers and continues adding value through other stages - Supply Chain Management (SCM) - Principle of looking at the chain as a whole to improve the overall flow through the system o Goal is to increase quality and/or reduce costs

What is trade credit?

- TRADE CREDIT The granting of credit by a selling firm to a buying firm. - Trade credit can take several forms: o open-book credit, is essentially a "gentle- men's agreement." Buyers receive merchandise along with invoices stating credit terms. Sellers ship products on faith that payment will be forthcoming. o promissory notes - agreement states when and how much money will be paid to the seller. o trade draft is attached to the merchandise shipment by the seller and states the promised date and amount of payment due. • take possession of the merchandise, the buyer must sign the draft. Once signed by the buyer, the document becomes a trade acceptance. Trade drafts and trade acceptances are useful forms of credit in international transactions.

What is the behavioural approach to leadership? What are the 3 main leadership styles?

- The Behavioural Approach - A leadership approach focused on determining what behaviours are employed by leaders o task oriented - manager focuses on how tasks should be performed in order to achieve important goals o employee-oriented - manager focuses on the satisfaction, motivation, and well-being of employees o 3 main leadership styles: • autocratic style - manager issues orders and expects them to be obeyed without question • democratic style - manager requests input from subordinates before making decisions, but retains final decision-making power • free-rein style - manager serves as an advisor to subordinates who are given a lot of discretion when making decisions

What is the situational approach to leadership?

- The Situational Approach to Leadership - (contingency) - a leadership approach in which appropriate leader behaviour varies from one situation to another o Contingent - depend on elements of the situation and characteristics of the leader and the followers o Characteristics of the leader: managers value system, confidence in subordinates, personal inclinations, feelings of security, actual behaviour o Subordinate characteristics: need for independence, readiness to assume responsibility, tolerance for ambiguity, interest in the problem, understanding of goals, knowledge, experiences, expectations o Situational characteristics: type of organization, group effectiveness, the problem, time pressure

What does the Management process involve? What is efficiency and effectiveness?

- The process of planning, organizing, leading, and controlling a business's financial, physical, human, and information resources in order to achieve its goals - Planning, organizing, leading, and controlling aspects of a manager's job are interrelated. Managers are likely to be engaged in all these activities during a business day - difference between management effectiveness and management efficiency. - Efficiency means achieving the greatest level of output with a given amount of input (doing things right) - Effectiveness means achieving organizational goals that have been set (doing the right things) - efficiency means doing things right, while effectiveness means doing the right things - a manager who focuses on being effective will likely be efficient, but a manager who focuses on being efficient may or may not be effective

What are profit maximizing objectives?

- The seller's pricing decision is critical for determining the firm's revenue, which is calculated using the following formula: Revenue = Selling price x Units sold - Companies that set prices to maximize profits want to set the selling price to sell the number of units that will generate the highest possible total profits - managers weigh sales revenues against costs for materials and labour, as well as capital resources (plant and equipment) and marketing costs (such as maintaining a large sales staff) Price considerations: list price, discounts/sales, allowances, payment period, credit terms, bulk pricing

What are unsecured loans? What are the 3 types?

- UNSECURED LOAN A short-term loan in which the borrower is not required to put up collateral. - bank requires the borrower to maintain a compensating balance—the borrower must keep a portion of the loan amount on deposit with the bank in a non-interest-bearing account. - terms of an unsecured loan—amount, duration, interest rate, and payment schedule—are negotiated - three common types: o LINES OF CREDIT • LINE OF CREDIT A standing agreement between a bank and a firm in which the bank specifies the maximum amount it will make avail- able to the borrower for a short-term unsecured loan; the borrower can then draw on those funds, when available. o REVOLVING CREDIT AGREEMENTS • REVOLVING CREDIT AGREEMENT A guaranteed line of credit for which the firm pays the bank interest on funds borrowed, as well as a fee for extending the line of credit. • commitment fee—a charge for holding open a line of credit for a cus- tomer even if the customer does not borrow any funds. o COMMERCIAL PAPER • COMMERCIAL PAPER A method of short-run fundraising in which a firm sells unsecured notes for less than the face value and then repurchases them at the face value within 270 days; buyers' profits are the difference between the original price paid and the face value.

What is value?

- VALUE A relative comparison of a product's benefits versus its costs o benefits include not only the functions of the product, but also the emotional satisfaction associated with owning, experiencing, or possessing it o costs, including sales price, the expenditure of the buyer's time, and even the emotional costs of making a purchase decision - Value = Benefits/Costs

What are variable and fixed costs?

- VARIABLE COST Cost that changes with the quantity of a product produced and sold. o raw materials, sales commissions, and shipping - FIXED COSTS - Cost that is incurred regardless of the quantity of a product produced and sold. o must be paid regardless of the number of units produced and sold.

What is value added analysis? What is the statistical process control?*

- Value-Added Analysis - the evaluation of all work activities, material flows, and paperwork to determine the value they add for customers. o often reveals wasteful or unnecessary activities that can be eliminated without harming customer service o Statistical Process Control - statistical analysis techniques that allow managers to analyze variations in production data and to detect when adjustments are needed to create products with high-quality reliability. • Ex. Machine filling bottles of soda. Goal is to fill 791ml. • Some variation in filling amount if acceptable (process variation) but to much can result in poor quality or high costs • While some amount of process variation is acceptable, too much can result in poor quality and excessive operating costs • Information about variation in a process can be obtained from a process capability study. • control chart - A statistical process control method in which results of test sampling of a product are plotted on a diagram that reveals when the process is beginning to depart from normal operating conditions

What is the world bank?

- WORLD BANK A United Nations agency that provides a limited scope of financial services, such as funding national improvements in undeveloped countries.

What is the law of one price?

- When a country's currency is overvalued, its exchange rate is higher than warranted by its economic conditions, and its high costs make it less competitive - LAW OF ONE PRICE The principle that identical products should sell for the same price in all countries. - converted into a common currency the price should be the same everywhere.

What is the value package?

- Whether it is a physical good, a service, or some combination of the two, customers get value from the various benefits, features, and even intangible rewards associated with a product. - PRODUCT FEATURES Tangible and intangible qualities that a company builds into its products. - Today's customer regards a product as a bundle of attributes—bene- fits and features—that, taken together, marketers call the value package.

What is Mcclellands Acquired Needs Theory?

- a persons motivation can be explained by their need for: - 3 needs: achievement, affiliation, power - high need for achievement - strong desire to accomplish a goal or task effectively as possible o set moderately difficult goals o preoccupied with work o personal responsibility to get things done o want immediate feedback - high need for affiliation - human companionship o want reassurance and approval o concerned about others feelings o act and think as believe others want them too o jobs with lots of interpersonal contact - High need for power - driven be desire to control their environment (financial, material, information, human resources) o Seek power in order to help the organization perform better o Have a fairly low need for affiliation o Have good self-control and are not excessive in their use of poer - What does it mean for management? o Management should understand the primary need of each of team member and use it when giving tasks of feedback • Ex. Give affiliation people a cooperative environment ex. Group projects, jobs where they can train others • Give achievement members challenging tasks, regular feedback, and smart team mates • Give power members opportunities to manage others

What is a preferred stock?

- can be held indefinitely, like common stock. And dividends need not be paid if the company makes no profit. - dividends are paid, preferred stockholders receive them first in prefer- ence to dividends on common stock - secures funds for the firm without relinquishing control, since preferred stockholders have no voting rights. It does not require repayment of principal or the payment of dividends in lean times. - Preferred stock is usually issued with a stated par value, - Some preferred stock is callable, meaning that the issuing firm can require the preferred stockholders to surrender their shares in exchange for a cash payment

What is virtual leadership?

- carrying out leadership activities when the leader does not have regular personal contact with followers - communication by videoconferencing, telephone, email - leaders have to work harder at creating and maintaining relationships with their employees - nonverbal communication not possible

What are distribution strategies?

- choice of a distribution strategy determines the amount of market exposure the product gets and the cost of that exposure - plan created by the producing company how to make its products availbale to retaliers, intermediaries and consumers - focuses on the location of the target market, transportation, intermediaries and the storage of the ...

What is corporate culture?

- corporate culture - the shared experiences, stories, beliefs, and norms that characterize a firm - companies that focus largely on one type of product may have a fairly homogeneous culture throughout the organization - companies with many divisions have several subcultures - strong corporate culture guides everyone to work toward the same goals and helps newcomers learn accepted behaviours - firm's 'personality'

How do you meet the productivity challenge?

- country that efficiently uses its resources can increase the wealth of all its inhabitants.

What is the effect of the customer's presence in the operations process?

- customer adding additional services can change the processes of the provider - e-commerce has provided virtual presence - consumers interact electronically and in real time with sellers, collecting information about product features, delivery availability, after-sales service

What Should you expect in a management job?

- expected to focus on completing tasks in a effective manner, not supposed to worry about whether they are working too many hours per week - no overtime pay

What are the 5 steps to risk management?

- five steps: STEP 1: IDENTIFY RISKS AND POTENTIAL LOSSES STEP 2: MEASURE THE FREQUENCY AND SEVERITY OF LOSSES AND THEIR IMPACT - managers must con- sider both past history and current activities STEP 3: EVALUATE ALTERNATIVES AND CHOOSE TECHNIQUES THAT WILL BEST HANDLE LOSSES - four choices: - Risk Avoidance o RISK AVOIDANCE Stopping participation in or refusing to partici- pate in ventures that carry any risk - Risk Control o RISK CONTROL Techniques to prevent, minimize, or reduce losses or the consequences of losses. - Risk Retention o When losses cannot be avoided or controlled, firms must cope with the consequences o RISK RETENTION The covering of a firm's unavoidable losses with its own funds. - Risk Transfer o RISK TRANSFER The transfer of risk to another individual or firm, often by contract. STEP 4: IMPLEMENT THE RISK- MANAGEMENT PROGRAM STEP 5: MONITOR RESULTS - managers must continually monitor a company's risks, reevaluate the methods used for handling them, and revise them as necessary.

What are the 4 types of market research?

- four types: o OBSERVATION A market research technique involving viewing or otherwise monitoring consumer buying patterns. o SURVEY A market research technique based on questioning a representative sample of consumers about purchasing attitudes and practices. o FOCUS GROUP A market research technique involving a small group of people brought together and allowed to discuss selected issues in depth. • 6 to 15 people o EXPERIMENTATION A market research technique in which the reactions of similar people are compared under different circumstances.

How can business strategy be used as a driver of operations?

- kind of production that is best for a particular company should be decided from above by the firms business strategy - Firms design their operations to support the company's business strategy - Top-priority operations capability (production capability) - the activity or process that production must do especially well, with high proficiency - Each company's operations capability matches up with its business strategy, so that the firm's activities, from top to bottom are focused in a particular direction

What is labour productivity?

- labour Productivity - Partial productivity ratio calculated by dividing gross domestic product by total number of workers. - ratio of gross domestic product (CDP) over labour hours worked

How can leaders act as a coach?

- leaders help select team members and other new employees - provide overall direction - help train and develop the team and the skills of its members - help the team get the information and other resources it needs - help resolve conflict among team members and mediate other disputes that arise - link the activities and functions of their respective teams - keep low profile and let the group get its work done without overly close supervision

What is the new product development process?

- long and expensive process. - estimated that it takes 50 new ideas to generate one product that finally reaches the market. - Those with the best chances are innovative and deliver unique benefits - needed to expand, and survive - expensive - risky, and long time horizons

What is ethical leadership?

- maintain high ethical standards for their own conduct, unfailingly exhibit ethical behaviour, to hold others in their organizations to the same standards

What are goods producing processes? What 3 things can they be classified on?

- make-to-order - custom designed products for special order - make-to-stock - producing standard items in large quantities for consumers in general - operations processes in manufacturing firms can be classified on the basis of: 1) the kind of transformation technology that is used 2) whether the operations process combines resources or breaks them into component parts 3) amount of customer contact

How does gender affect leadership?

- male leaders are not systematically more harsh, controlling or task focused than female leaders - women more democratic, men more autocratic

How can management communicate the culture?

- manager must carefully consider the kind of culture they want and nourish that culture by communicating with everyone - if a problem arises with a company's products, it may create pressure for change in the company's culture Communicating The Culture - managers must have clear understanding of the culture - must transmit the culture to others in the organization - communication is key in training and orienting newcomers - managers can maintain the culture by rewarding and promoting those who understand it and work toward maintaining it. " ensure new and existing managers understand the culture " develop a clear mission statement " communicate the culture to employees " Reward those who understand and maintain the culture

What are the 3 roles of operations function?

- operations as effectors - being the implementer of strategy - operations makes strategy happen by translating strategic decisions into operational reality - Operations as follower - being appropriate for strategy - operations supports strategy by developing objectives and policies for the resources it manages - Operations as leader -being the driver of strategy - operations provides the means to achieve competitive advantage - these things are not mutually exclusive

What is cross-cultural leadership?

- play role in diverse workforces - Canadian vs. American Management Styles o Canadian managers more subtle and subdued, more committed to their companies, less willing to mindlessly follow the latest management fad, more open to different cultures because of the multicultural nature of Canada

What is power? What are the different types?

- power - the ability to affect the behaviour of others o legitimate power - power granted through the formal organizational hierarchy o Reward power - power to give or withhold rewards like salary increases, bonuses, promotions, praise, and interesting job assignments o Coercive power - power to force another person to comply by means of psychological, emotional, or physical threat o Expert Power - derived from information or expertise that the manager posses o Referent Power - based on identification, imitation, loyalty, charisma of the leader

What is reinforcement/behaviour modification?

- reinforcement 2 step process: 1) define specific behaviours managers want their employees to exhibit, and specific behaviours want to eliminate 2) "shape" employee behaviour by using reinforcement - reinforcement - Controlling and modifying employee behaviour through the use of systematic rewards and punishments for specific behaviours o 4 options: • 1) positive reinforcement - apply positive consequences when employe exhibits desired behaviour • 2) punishment - apply negative consequences when employee exhibit undesirable behaviours • 3) omission - withhold positive consequences when employees exhibit undesirable behaviours • 4) negative reinforcement - withhold negative consequences when employees exhibit desired behaviours

How do banks create money?

- taking in deposits and making loans, they expand the money supply. - reserve requirement, which means they must keep a portion of their chequable deposits in vault cash or as deposits with the Bank of Canada. - But what happens if there is no reserve requirement? At the extreme, it means that banks could (theoretically) create infinite amounts of money, because they wouldn't have to keep any in reserve. But banks will not do this because it is risky.

How have operations changed over the years?

- technology means that new product prototypes can be developed within a day or two of the development of a new deign, rather than the three to four month time frame required with traditional methods - with the internet, producers of both services and goods are integrating their production activities with those of far-off suppliers and customers

What are the 3 categories that classify consumer behaviour?

- three categories that reflect buyer behaviour: o CONVENIENCE GOOD/CONVENIENCE SERVICE An inexpensive good or service purchased and consumed rapidly and regularly. o SHOPPING GOOD/SHOPPING SERVICE A moderately expensive, infrequently purchased good or service. o SPECIALTY GOOD/SPECIALTY SERVICE An expensive, rarely purchased good or service.

What are the 3 different types of roles marketing channels play?

- transactional function o - buying: purchasing products for resale or as an agent for supply of a product o selling: contacting potential customers, promting products, and seeking others o risk taking: assuming business risks in the ownership of inventory that can become obsolete or deteriorate - logistical function: o assorting: creating product assortments from several sources to serve customers o storing: assembling and protecting products at a convenient location to offer better customer service o soriting: purchasing in large quantities and breaking into smaller amounts desired by customers o transporting: physically moving a product to customers - facilitating function: o financing: extending credit to customers o grading: inspecting, testing, or judging prodctsm and ssigning them quality grades o ...

What is the spendable money supply, M1?

- value of money depends in part on its supply (how much money is in circulation). - M-1 Only the most liquid forms of money (currency and demand deposits). - CURRENCY Paper money and coins issued by the government. - CHEQUE An order instructing the bank to pay a given sum to a specified person or firm.

What are pricing for E-business objectives?

- web provides a more direct link between producer and customer, buyers often avoid the added costs of wholesalers and retailers. - both consumers and business buyers can get lower prices by joining together for greater purchasing power.

What are the 5 stages in the buyer/decision process?

- with the five stages in the buyer decision process: o 1) When consumers first recognize the need to make a purchase, marketers use advertising and publicity, which can reach many people quickly, to make sure buyers are aware of their products. o 2) As consumers search for information about available products, advertising and personal selling are important methods to educate them. o 3) Personal selling can become vital as consumers compare competing products. Sales representatives can demonstrate product quality, features, benefits, and performance in comparison with competitors' products. o 4) When buyers are ready to purchase products, sales promotion can give consumers an incentive to buy. Personal selling can help by bringing products to convenient purchase locations. o 5) After making purchases, consumers evaluate products and note (and remember) their strengths and deficiencies. At this stage, advertising and personal selling can remind customers that they made wise purchases.

What are the Individual Differences Among Employees?

1) Physical Differences 2) Psychological differences (personality, attitudes) 3) emotional attributes (emotional intelligence)

What are the 3 key elements to charismatic leadership?

3 key elements: o Envisioning - articulating a compelling vision • Setting high expectations • Modeling consistent behaviours o Energizing - demonstrating personal excitement • Expressing personal confidence • Seeking, finding, and using success o Enabling - expressing personal support • Empathizing • Expressing confidence in people - Concern - leaders will inspire such blind faith in their followers that the followers may engage in inappropriate, unethical, or even illegal behaviours because leader instructs them to

For production process control, what is quality control?

4) Quality Control - the management of the production process so as to manufacture goods or supply services that meet specific quality standards.

What are basic management skills?

Basic Management Skills - technical, human relations, conceptual, time management, decision-making skills

What are the benefits of materials requirements planning?

Benefits of Materials Requirements Planning (MRP) Avoiding purchasing excessive quantities of an input material Avoiding purchasing insufficient quantities of an item (or wrong item) Avoiding delays due to beginning production too late IN SUM: MRP ensures that firm is able to meet current and future customer demand, all at the lowest possible cost

What is retail distribution?

Channel 2: Retail Distribution - producers distribute consumer products through retailers. - Producer-> retailer-> consumer - Ex. Sony through best buy - Advantages: easy access to consumers, convenience for consumers, retailers handles inventory, stock and transactions, wider reach markets, retailer handles after sales support, better knowledge of trends and customer wants/needs - Types: bargain (walmart), product line (H&M), convenience (7/11)

What is wholesale distribution?

Channel 3: Wholesale Distribution - storing merchandise and restocking store displays frequently - producer -> wholesaler -> retailer -> consumer - wholesaler as intermediary that "breaks bulk" - ex. Coffee, meat, other grocery products - advantages: cost efficiency (better price from supplier), market information (trends), sales and promotion (B2B), assortment building and bulk-breaking, warehousing, absorb risk (damage, theft, spoilage), transportation and delivery, financing and management services

What is distribution by agents or brokers?

Channel 4: Distribution by Agents or Brokers - Sales agents or brokers represent producers and receive commissions on the goods they sell to consumers or industrial users. - Producer -> agent or broker -> consumer - Ex. Real-estate agents - SALES AGENT An independent intermediary who generally deals in the related product lines of a few producers and forms long-term relationships to represent those producers and meet the needs of many customers. - BROKER An independent intermediary who matches numerous sellers and buyers as needed, often without knowing in advance who they will be. - Advantages:

What are the corporate-levels of strategies?

Concentration - focusing the company on one product or product line that it knows very well Growth - market penetration (boosting sales of present products by aggressive selling in the firm's current markets), geographic expansion (expanding operations in new geographic areas), product development (developing improved products for current markets) - steps to increase revenue or profit. ex. finding new markets, develop new products Intergration - horizontal integration means acquiring control of competitors in the same or similar markets with the same or similar products. Vertical integration means owning or controlling the inputs to the firm's processes and/or the channels through which the products or services are distributed Diversification - spreading risk among several products or markets. Related diversification means adding new, but related, products or services to an existing business. Conglomerate diversification means diversifying into products or markets that are not related to the firm's present businesses Investment Reduction - means reducing the company's investment in one or more of its lines of business. Retrenchment means the reduction of activity or operations. Divestment involves selling or liquidating one or more of a firm's businesses

What is cost oriented pricing?

Cost Oriented Pricing - Pricing that considers the firm's desire to make a profit and its need to cover production costs. - Selling price = Seller's costs + Profit - To be profitable, the company must charge enough to cover product and other costs. - MARKUP - Amount added to an item's purchase cost to sell it at a profit. - calculates the markup percentage and determines what percent of every dollar of revenue is gross profit: - Markup percentage = Mark Up / Sales price

What are E-intermediaries?

E-Intermediaries - E-INTERMEDIARY An internet distribution channel member that assists in delivering products to customers or that collects informa- tion about various sellers to be presented to consumers. - Electronic retailing (online retailing) allows sellers to inform, sell to, and distribute to consumers via the web.

What is early behavioural theory? What is the hawthorne effect?

Early Behavioural Theory - any action on the part of management that made workers believe they were getting special attention caused their productivity to rise - Hawthorne effect - The tendency for workers productivity to increase when they feel they are getting special attention from management - human relations- interactions between employers and employees and their attitudes toward one another - helped in motivating employees

What is the economic environment in the marketing environment?

Economic Environment - economic conditions influence marketing plans for product offerings, pricing, and promotional strategies - inflation, interest rates, and recession - monitor the general business cycle to anticipate trends in consumer and business spending - conditions affect spending patterns of businesses and individuals - trends affect price strategy and the growth of markets (domestic & global) - canadian dollar, inflation/deflation, interest rates, business cycle

What is emotional intelligence?

Emotional Intelligence (emotional quotient EQ) - the extent to which people are self-aware, can manage their emotions, can motivate themselves, express empathy for others, and possess social skills

What is escalation of commitment?

Escalation of Commitment - when a manager makes a decision and then remain committed to its implementation in spite of clear evidence that it was a bad decision - setting specific goals ahead of time regarding the time and money they are willing to spend on a given project continues with decision even if gone bad.

What are functional strategies?

Functional Strategies - each business choice of a competitive strategy is translated into a supporting functional strategies for each of its departments to pursue - basic course of action that each department follows so that the business accomplishes its overall goals

What are government and international sources of funding?

Government Financial Institutions and Granting Agencies - Business Development Bank of Canada (BDC) makes term loans, primarily to smaller firms judged to have growth potential but unable to secure funds at reasonable terms from traditional sources - federal government's Export Development Corporation (EDC) finances and insures export sales for Canadian companies. - Canada Mortgage and Housing Corporation (CMHC) is involved in providing and guaranteeing mortgages. - CMHC is particularly important to the con- struction industry. Governments are also involved in providing grants to business operations. International Sources of Funds - Canadian corporations likewise find it attractive to borrow in foreign markets.

What are the two types of equity financing?

ISSUING COMMON STOCK - Individuals and companies buy a firm's stock, hoping that it will increase in value (a capital gain) and/ or will provide dividend income - PAR VALUE The arbitrary value of a stock set by the issuing com- pany's board of directors and stated on stock certificates; used by accountants but of little significance to investors. - BOOK VALUE The value of a common stock expressed as total stockholders' equity divided by the number of shares of stock. - MARKET VALUE The current price of one share of a stock in the secondary securities market; the real value of a stock. - For successful companies, the market value is usually greater than its book value. - The price of a share of stock can be influenced by both objective factors (company profits) and by subjec- tive factors such as rumours (e.g., claims that a company has made a big gold strike), investor relations (publicizing the positive aspects of a company's financial condition to financial analysts and financial institu- tions), and stockbroker recommendations (a recommendation to buy a stock may increase demand and cause its price to increase, while a rec- ommendation to sell may decrease demand and cause the price to fall). - MARKET CAPITALIZATION The dollar value (market value) of stocks listed on a stock exchange. o multiplying the number of a company's outstanding shares times the market value of each share o interest paid to bondholders is tax-deductible, but dividends paid to stockholders are not RETAINING THE FIRM'S EARNINGS - profits not paid out in dividends. - firm will not have to borrow money and pay interest on loans or bonds

Is management a science or art?

Management: Science or Art? - management problems can be approached in rational, logical, objective, systematic ways - can use quantitative models and decision-making techniques to arrive at 'correct' decisions - rely on interpersonal skills and abstract conceptual thinking to make non-routine decisions - management is a blend of science and art

What are marketing channels? Why are marketing channel partners important?

Marketing Channels (aka distribution channels) - set of interdependent organizations that help make a product or service available for use to consumption by the consumer or business users - intermidiares go by various names such as middlemen, agent/broker, wholesaler, retailer, distributor, dealer - Marketing Channel partners: o Upstream - firms that supply the raw materials o Downstream - marketing channel partners that link the firm to the customer o Ex. Textbook - published by pearson - upstream (paper supplier, printer), downstream (bookstore) Why are marketing channel partners important? - (distributor) they reduce transaction between manufacturer and end user customer. Makes it more efficient Importane of marketing channels - greater efficiency in making goods availbale to target markets - channel members can offer the firm more than it can achieve on its own in terms of: o contacts, experience specialization

What is the marketing environment?

Marketing Environment - socio-cultural, technological, competitive, economic, political-legal ⇒ segmentation, targeting, positioning ⇒ marketing mix (4 P's) - product, place/channels, promotion -> pricing ⇒ customer acquisition, customer retention -> profits

What is master production schedule?*

Master Production Schedule (top level) - Schedule showing which products will be produced, when production will take place, and what resources will be used. - which products, when what resources? - Ex. Tesla'a production goal of 2000 cars/week - Used to develop detailed schedules

For production process control, what is materials requirement planning?

Material Requirements Planning (MRP) - A method of inventory control in which a computerized bill of materials is used to estimate production needs, so that resources are acquired and put into production only as needed. - provides answers to: what items are required? How many are required? When are they required? - how does it work? Uses a bill of materials that is a recipe for the finished product - recipe is fed into a computer that controls inventory and schedules each stage of the production - computer calculates what resources, how many and when they are required - Benefits: avoid prushasing excessive quantities of an input material, avoid purshcaing insufficient quantities of an item (or wrong item), aovoid delyas due to beginning production too late - in sum: MRP ensures that firm is able to meet current and future customer demand at lowest possible cost

What is materials management?

Materials Management - Planning, organizing, and controlling the flow of materials from purchase through distribution of finished goods. - emphasizing materials standardization— the use, where possible, of standard and uniform components, rather than new or different components. - Standardization simplifies paperwork, reduces storage requirements, eliminates unnecessary material flows, and saves money, by reducing the number of different parts that are needed

What is a mission?

Mission (more specific, not as long term) " A statement of how the organization will achieve its vision " A reason for being, why the organization exists " Three questions: What? For whom? How? " Examples: " Nike: To bring inspiration and innovation to every athlete* in the world. *If you have a body, you're an athlete" " Walmart: "Saving people money so they can live better"

What is motivation?

Motivation - the set of forces that causes people to behave in certain ways

What is non-store retailing?

Non-store Retailing - card- and coin-operated machines. - DIRECT-RESPONSE RETAILING A form of non-store retailing in which firms directly interact with customers to inform them of prod- ucts and to receive sales orders.

What are 3 tactics to gaining consumer brand awareness?

Product Placement - PRODUCT PLACEMENT A promotional tactic for brand exposure in which characters in television, film, music, magazines, or video games use a real product with its brand visible to viewers. - message is delivered in an attractive setting that holds the customer's interest. - implied celebrity endorsement. Buzz Marketing - BUZZ MARKETING Marketing that relies on word of mouth to spread "buzz" about a particular product or idea. - most companies running word-of-mouth campaigns require full disclosure, which means the participants should let people know they are participating in a campaign. Viral and Social Marketing - VIRAL MARKETING Buzz that relies on social networking on the internet to spread information "like a virus" from person to person. - Viral marketing can lead to consumer aware- ness faster and with wider reach than traditional media messages—and at lower cost. - people rely on the internet for information they used to get from newspapers, magazines, and television. - the customer becomes a participant in the process of spreading the word by forwarding information to other internet users.

What is productivity among global competitors?

Productivity among Global Competitors - nation's productivity determines how large a piece of the global economic-resource pie it gets. - country whose productivity fails to increase as rapidly as that of other countries will see its people's standard of living fall relative to the rest of the world. - differences in technologies, human skills, economic policies, natural resources, and even traditions.

What are psychological contracts?

Psychological Contracts - The set of expectations held by an employee concerning what he or she will contribute to an organization (contributions) and what the organization will provide the employee (inducements) in return - contributions from the individual - effort, ability, loyalty, skills, time, competency - inducements from the organization - pay, benefits, job security, status, promotion opportunities, career opportunities

What are the two ways to match people and jobs?

Psychological contracts, the person-job fit

What is quality planning?

Quality Planning - any complete production plan includes systems for ensuring goods are produced to the firm's quality standards.

What is quality reliability?

Quality Reliability - The consistency of quality from unit to unit of a product. • Repeatability of performance • How well does a product meet consumers needs repeatedly

What is retailing?

Retailing - small operations, often consisting of just the owners and part-time help. - also include huge operations Types of Brick and Mortar Retail Outlets - classified by their pricing strategies, location, range of services, or range of product lines. Table 13.2 describes retail stores using three classifications: product-line retailers, bargain retailers, and convenience stores.

What is Risk Propensity?

Risk Propensity - how much a manager is willing to gamble when making decisions how much risk/uncertanity willing to tolerate. failures not encourgaed. decision making that couldlead to failure not excouraged

What is Risk propensity?

Risk Propensity - the degree to which a person is willing to take chances and make risky decisions

What is financial Pillar #3?

SPECIALIZED LENDING AND SAVINGS INTERMEDIARIES Life Insurance Companies - LIFE INSURANCE COMPANY A mutual or stock company that shares risk with its policyholders for payment of premiums. Factoring Companies - FACTORING COMPANY (OR FACTOR) Buys accounts receivable from a firm for less than their face value and then collects the face value of the receivables. Financial Corporations - SALES FINANCE COMPANY Specializes in financing installment purchases made by individuals or firms. - When you buy durable goods from a retailer on an installment plan with a sales finance company, the loan is made directly to you. The item itself serves as security for the loan. - CONSUMER FINANCE COMPANY Makes personal loans to con- sumers. Venture Capital Firms - VENTURE CAPITAL FIRM Provides funds for new or expanding firms thought to have significant potential. - may demand an ownership stake of 50 percent or more before they will buy into a company. Pension Funds - PENSION FUND Accumulates money that will be paid out to plan subscribers in the future.

What is self-efficacy?

Self-Efficacy - person's beliefs about his or her capabilities to perform a task

What are the steps for setting prices?

Steps for setting prices: 1) identify pricing objectives and constraints 2) estimate demand and revenue 3) Determine cost, volume and profit relationships 4) Select and approximate price level 5) Set list or quoted price 6) Make special adjustments to quoted price

What is strategic leadership?

Strategic Leadership - focuses on leadership in top management - leaders ability to understand the complexities of both the organization and its environment in order to lead change toward enhanced competitiveness

What is strategic management? What are goals and strategy?

Strategic Management - The process of helping an organization maintain an effective alignment with its environment - Goals - objectives that a business plans to attain - managers must make decision on which actions will or will not achieve company goals - Strategy - the broad set of organizational plans for implementing the decisions made for achieving organizational goals

What is the technological side of the marketing environment?

Technological Environment - New technologies create new goods and services - New products make existing products obsolete, and many products change our values and lifestyles. - lifestyle changes often stimulate new products not directly related to the new technologies themselves - science and technology lead to new ways of doing everyday things; new goods continue to emerge, trends create new goods and cause others to become obsolete

What it the human resources theory: Theory X and Y?

The Human Resources Model; Theories X and Y a. Managers have to diametrically opposed perceptions of employees Theory X - A management approach based on the belief that people must be forced to be productive because they are naturally lazy, irresponsible, and uncooperative - employees dislike work - threaten or punish for results Theory Y - A management approach based on the belief that people want to be productive because they are naturally energetic, responsible, and cooperative - employees like work - growth oriented - use intrinsic, rather than extrinsic rewards

What is the person-job fit?

The Person-Job Fit - the extent to which a persons contributions and the organization's inducements match one another - higher performance, more positive attitudes - matching of the employees contributions, needs, job related behaviours and abilities to the needs of the jobs

What is the 7 step development process?

The Seven Step Development Process - 1) Product ideas. Product development begins with a search for ideas for new products. Product ideas can come from consumers, the sales force, research and development, or engineering. - 2) Screening. This stage is an attempt to eliminate all product ideas that do not mesh with the firm's abilities, expertise, or objectives. Representatives from marketing, engineering, and production must have input at this stage. - 3) Concept testing. Once ideas have been initially reviewed, companies use market research to solicit consumers' input. Firms can identify benefits that the product must provide, as well as an appropriate price level for the product. - 4) Business analysis. This involves developing a comparison of costs and benefits for the proposed product. - 5) Prototype development. Using input from the concept-testing phase, engineering and/or research and development produce a preliminary version of the product. - 6) Product testing and test marketing. The company begins limited production of the item. - 7) Commercialization. If test-marketing results are positive, the company will begin full-scale production and marketing of the product

Who are top managers?

Top Managers - Those managers responsible for a firm's overall performance and effectiveness and for developing long-range plans for the company - President, vice president, COO, CEO, CFO - Responsible to the board of directors and shareholders of the firm for its overall performance and effectiveness - Set general principles, formulate strategies, oversee significant decisions, represent company in its dealings with other businesses and government

What is transactional leadership?

Transactional Leadership - The set of abilities that involves routine, regimented activities that are necessary during periods of stability

What is transformational leadership?

Transformational Leadership - The set of abilities that allows a leader to recognize the need for change, to create a vision to guide that change, and to execute the change effectively

What is the Two-Factor (Motivator-hygiene) Theory?

Two-Factor (Motivator-hygiene) Theory - A theory of human relations developed by Frederick Herzberg that identifies factors that must be present for employees to be satisfied with their jobs and factors that, if increased lead employees to work harder o Hygiene factors - working conditions, quality of supervision, interpersonal relations, pay, job security), company policies and procedures • Dissatisfaction vs. no dissatisfaction o Motivating factors - recognition, responsibility, advancement, achievement, work itself • Satisfaction vs. no satisfaction o Motivation factors cause movement along a continuum from no satisfaction to satisfaction o Hygiene factors cause movement along a different continuum, one from no dissatisfaction to dissatisfaction o Motivation factors are directly related to the work that employees actually perform o Hygiene factors refer to the environment in which they perform it o Managers must first ensure that hygiene factors are acceptable (to avoid worker dissatisfaction) and then offer motivating factors (to improve satisfaction and motivation)

For goods producing services, what are the types of transformation technologies?

Types of Transformation Technologies - Chemical processes - raw materials are chemically altered - Fabrication processes - mechanically alter the basic shape or form of a product - Assembly process - put together various components - Transport processes - goods acquire place utility by being moved from one location to another o Ex. Cars produced in Mexico are transported for sale in other countries - Clerical processes - transform information o Ex. Combining at end of term onto spreadsheet

How do you create value through operations? What are the 4 different ways?

Utility - the power of a product to satisfy a human want; something of value Time utility - making a product/service available at a time when consumers want it Place utility - making a product/service available in a place convenient for consumers (where consumers want it) Ownership (possession) utility - making a product/service that consumers can take pleasure in owning (want to own or use) Form utility - turning raw materials into finished goods that consumers want

What are self-managed teams?

o Self-managed teams - set their own goals, select their own team members, evaluate their own performance, manage themselves

For long-range operations planning, what is capacity?

o 1) Capacity - the amount of a good a firm can produce under normal working conditions • Depends on how many people it employs, and the number and size of its facilities • Long-range considers current and future requirements • If capacity to small for demand - cuts into profits and alienates both customers and salespeople • If capacity greatly exceeds demand - firm wastes money by maintaining facilities that are too large, or employing too many workers •** Accommodate seasonal changes and peak times •** Address ways to use excess capacity • Goods-producing operations - ensuring firms capacity just **slightly exceeds the normal demand for its product • Low-contact service-producing operations - capacity should be set at the level of average demand • High contact - managers must plan capacity to meet peak demand

For long-range operations planning, what is quality planning?

o 2) Quality planning - goods and service • Quality: fitness for use of the product/service • Need to understand customer expectations (esp. for services) • More on quality as part of operations control

For long-range operations planning, what is location planning?

o 3) Location planning - affects its production costs and flexibility • Companies that locate in high cost areas find themselves at a cost disadvantage relative to their competitors •** Where the firm can produce •** Proximity to raw/materials •** Proximity to customers •** Costs of location ex. High traffic area will have higher rent • goods-producing operations, location decisions are influenced by proximity to raw materials and markets, availability of labour, energy and transportation costs, local regulations and taxes, and community living conditions. • low-contact systems, service can be located near resource supplies, labour, or transportation outlets. • high-contact services must locate near the customers who are a part of the system

What are compressed workweeks?

o Compressed Workweeks - Employees work fewer days per week, but more hours on the days they do work

What is the decision tree approach?

o Decision tree approach - attempts to prescribe leadership style that is appropriate in different situations • Concerns itself with only single aspect of leader behaviour: subordinate participation in decision making • Assumes that the degree on the characteristics of the situation, and that no one decision making process is best for all situations • Leader determines appropriate decisions style that specifies the amount of subordinate participation

What is flextime?

o Flextime - a method of increasing employees' job satisfaction by allowing them some choice in the hours they work

What is job redesign?

o Job Redesign - increases job satisfaction by improving the employee-job fit • Combining tasks • Creating natural work groups • Establishing client relationships

What are the two types of debt financing?

o LONG-TERM LOANS • Advantages: • Long-term loans are usually matched with long-term assets. Interest rates for the loan are negotiated between the borrower and lender. • can be arranged quickly, the duration of the loan is easily matched to the borrower's needs, and if the firm's needs change, the loan usually contains clauses making it possible to change the terms • Disadvantages: • Large borrowers may have trouble finding lenders to supply enough funds. • Long-term borrowers may also have restrictions placed on them as conditions of the loan • may have to pledge long- term assets as collateral • may have to agree not to take on any more debt until the borrowed funds are repaid o BONDS • CORPORATE BOND A promise by the issuing company to pay the holder a certain amount of money on a specified date, with stated interest payments in the interim; a form of long-term debt financing. • bond indenture spells out the terms of the bond, includ- ing the interest rate that will be paid, the maturity date of the bond, and which of the firm's assets, if any, are pledged as collateral. • may not be redeemed for 30 years. • company fails to make a bond payment, it is in default. • Registered bonds register the names of holders with the company, which then mails out cheques to the bondholders • Bearer (or coupon) bonds require bondholders to clip coupons from certificates and send them to the issuer to receive payment • SECURED BONDS Bonds issued by borrowers who pledge assets as collateral in the event of non-payment. • Unsecured bonds are called debentures - regard to maturity dates, there are three types of bonds:

What is the leader-member exchange model?

o Leader-member exchange model - focuses on the different relationships leaders often establish with different subordinates

What is the newspaper?

o Newspaper • medium offers flexibility (ads can change from day to day) and believability (ads are presented next to news items). • larger percentage of individuals with higher education and income level tend to read newspapers on a daily basis. • papers are adopt- ing a "digital first" strategy to change with the times,

What is the path-goal theory to leadership?

o Path-goal theory - primary functions of a leader are to make valued or desired rewards available in the workplace and to clarify for the subordinates the kinds of behaviours that will lead to goal accomplishment and valued rewards • Directive leader - lets subordinates know what is expected of them, gives guidance and direction, schedules work • Supportive leader - friendly and approachable, showing concern for subordinates welfare, treating members equally • Participative leader - consulting with subordinates, soliciting suggestions, allowing participation in decision making • Achievement-oriented - sets challenging goals, expects subordinates to perform at high levels, encourages subordinates, and shows confidence in subordinates abilities

What are problem-solving teams?

o Problem-solving teams focus on developing solutions to specific problems - idea basis is the best solutions will come from employees who actually do the work

What are project teams?

o Project teams (venture teams) - work on specific projects - developing new processes, new products, new businesses

What are quality/cost studies?*

o Quality/cost studies - A method of improving product quality by assessing a firm's current quality-related costs and identifying areas with the greatest cost-saving potential o Quality costs are associated with making, finding, repairing or preventing product defects o Requires determining costs of: • internal failures - expenses incurred during production and before bad product leaves the plant • External failures occur when bad boxes get out of the factory and reach the customer. The costs of correcting them—refunds to customers, transportation costs to return bad boxes to the factory, possible lawsuits, factory recalls

Why are teams important?

o Teams are becoming increasingly popular because of globalization o Provide non-monetary benefits such as increasing motivation and job satisfaction levels for employees, enhancing company-wide communication, making members feel like they are an integral part of the organization o Work best when task completion requires input from several people, when there is interdependence between tasks, when working together can accomplish tasks that an individual could not do alone

What is telecommuting?

o Telecommuting - Allowing employees to do all or some of their work away from the office • Advantages and disadvantages of telecommuting Table 9.1 p. 213

What is television advertising?

o Television • reaches more people than any other medium. • Television allows advertisers to combine sight, sound, and motion, thus appealing to almost all of the viewer's senses. • Information on viewer demographics for a particu- lar program allows advertisers to promote to their target audiences • TV advertising can be expensive • too many commercials, which causes viewers to confuse prod- ucts. • product placement, which involves using brand-name products as part of the actual storyline, is gaining in popu- larity. • brevity of TV ads also makes television a poor medium to educate viewers about complex products.

What are transactional teams?

o Transactional teams - members from many different countries

What are virtual teams?

o Virtual teams - geographically dispersed co-workers that are assembled to accomplish a specific task using a combination of telecommunications and information technologies

What are workshare programs?

o Workshare Programs • worksharing (job sharing) - A method of increasing employee job satisfaction by allowing two people to share one job

What is flexible manufacturing system?

• Flexible Manufacturing System (FMS) - A production sys- tem that allows a single factory to produce small batches of different goods on the same production line. • Ex. Automobile, ex. Several models built on the same platform

What is magazine advertising?

• Magazine advertising allows for excellent reproduction of photographs and artwork that not only grab buyers' attention, but also may convince them of the product's value. • provide advertisers with plenty of space for detailed product information • have a long life and tend to be passed from person to person, doubling and tripling the number of exposures.

What is online advertising?

• search, display, classifieds, email, and video. • advantages such as flexibility, feedback (sellers can measure the success of messages by counting how many people see each ad and track the number of people that click-through to their websites), reach, and a capacity for relationship building (with customers on interactive websites)