BUS FINAL

How are a company's social responsibility efforts measured?

A corporate social audit measures an organization's progress toward social responsibility. Some people believe the audit should add together the organization's positive actions and then subtract the negative effects to get a net social benefit

Program Evaluation and Review Technique (PERT)

A method for analyzing the tasks involved in completing a given project, estimating the time needed to complete each task, and identifying the minimum time needed to complete the total project.

Affirmative Action

A policy designed to give special attention to or compensatory treatment for members of some previously disadvantaged group.

Statistical Quality Control

A process used to continually monitor all phases of the production process.

just-in-time inventory control

A production process in which a minimum of inventory is kept on the premises and parts, supplies, and other needs are delivered just in time to go on the assembly line.

How do intermediaries perform the six marketing utilities?

A retail grocer may cut or trim meat, providing some form utility. But marketers are more often responsible for the five other utilities. They provide time utility by having goods available when people want them, and place utility by having goods where people want them. Possession utility makes it possible for people to own things and includes credit, delivery, installation, guarantees, and anything else that completes the sale. Marketers also inform consumers of the availability of goods and services with advertising, publicity, and Page 402 other means. That provides information utility. Finally, marketers provide fast, friendly, and efficient service during and after the sale (service utility).

What strategies can marketers use to determine a product's price?

A skimming strategy prices the product high to make big profits while there's little competition. A penetration strategy uses low price to attract more customers and discourage competitors. Demand-oriented pricing starts with consumer demand rather than cost. Competition-oriented pricing is based on all competitors' prices. Price leadership occurs when all competitors follow the pricing practice of one or more dominant companies.

What are the different kinds of warehouses?

A storage warehouse stores products for a relatively long time. Distribution warehouses are used to gather and redistribute products.

What's included in a total product offer?

A total product offer consists of everything consumers evaluate when deciding whether to buy something. It includes price, brand name, and satisfaction in use.

What is the current state of manufacturing in the United States?

Activity in the nation's manufacturing sector has declined since its height. The result has been fewer jobs in manufacturing. Even though manufacturing companies offer fewer jobs, they have become more productive, meaning that they need fewer employees to do the same amount of work. Today many manufacturing jobs are coming back to the U.S. as labor costs increase in other countries. Much of this chapter is devoted to showing you what manufacturers and service providers can do to revive the U.S. economy to become world-class competitors.

What are administrative agencies?

Administrative agencies are federal or state institutions and other government organizations created by Congress or state legislatures with power to create rules and regulations within their area of authority.

fringe benefits

Any financial extras beyond the regular pay check, such as health insurance, life insurance, paid vacation and/or retirement

What does Article 3 of the UCC cover?

Article 3 covers negotiable instruments such as checks. A negotiable instrument must (1) be written and signed by the maker or drawer, (2) be made payable on demand or at a certain time, (3) be made payable to the bearer (the person holding the instrument) or to specific order, and (4) contain an unconditional promise to pay a specified amount of money.

Can you name and describe five alternative compensation techniques?

Attracting the kinds of people the organization needs, and in sufficient numbers. Page 285Providing employees with the incentive to work efficiently and productively. Keeping valued employees from going to competitors or starting competing firms. Maintaining a competitive position in the marketplace by keeping costs low through high productivity from a satisfied workforce. Providing employees with some sense of financial security through fringe benefits such as insurance and retirement benefits.

How do businesses demonstrate corporate responsibility toward stakeholders?

Businesses demonstrate responsibility to stakeholders by (1) satisfying customers with goods and services of real value; (2) making money for investors; (3) creating jobs for employees, maintaining job security, and seeing that hard work and talent are fairly rewarded; and (4) creating new wealth for society, promoting social justice, and contributing to making the businesses' own environment a better place.

Which countries are creating the greatest challenges?

China and India are two major competitors

What factors make it difficult to recruit qualified employees?

Demand for promotions, people who not only are skilled but also fit in with the culture and leadership style of the company, Sometimes people with the necessary skills are not available; then workers must be hired and trained internally.

Why are more and more companies now testing workers and job applicants for substance abuse?

Drug abuse costs the U.S. economy $414 billion in lost work, health care costs, crime, traffic accidents, and other expenses, and over $120 billion in lost productivity. Individuals who use drugs are three and a half times more likely to be in workplace accidents and five times more likely to file a workers' compensation claim than those who do not use drugs.

What are the benefits and challenges of Job sharing?

Employment opportunities for those who cannot or prefer not to work full-time. An enthusiastic and productive workforce. Reduced absenteeism and tardiness. Ability to schedule part-time workers into peak demand periods (e.g., banks on payday). Retention of experienced employees who might otherwise have retired.

How is legality different from ethics?

Ethics goes beyond obeying laws to include abiding by the moral standards accepted by society. Ethics reflects people's proper relationships with one another. Legality is more limiting; it refers only to laws written to protect people from fraud, theft, and violence.

How do robotics help make manufacturers more competitive?

Industrial robotics can work 24 hours a day, seven days a week, with great precision. Most of the jobs they replace are dirty or so repetitive that robots are necessary, or at least helpful.

Weber's principles of organization

Job descriptions Written rules, decision guidelines and detailed records Consistent procedures, regulations and policies Staffing and promotion based on qualifications

How do managers evaluate different sites?

Labor costs and land costs are two major criteria for selecting the right sites. Other criteria include whether resources are plentiful and inexpensive, skilled workers are available or are trainable, taxes are low and the local government offers support, energy and water are available, transportation costs are low, and the quality of life and of education are high.

Why has recruitment become more difficult?

Legal restrictions complicate hiring and firing practices. Finding suitable employees can be more difficult if companies are considered unattractive workplaces.

What is logistics?

Logistics includes planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit.

What relationship do materials requirement planning (MRP) and enterprise resource planning (ERP) have with the production process?

MRP is a computer-based operations management system that uses sales forecasts to make sure the needed parts and materials are available at the right time and place. Enterprise resource planning (ERP), a newer version of MRP, combines the computerized functions of all the divisions and subsidiaries of the firm—such as finance, material requirements planning, human resources, and order fulfillment—into a single integrated software program that uses a single database. The result is shorter time between orders and payment, less staff to do ordering and order processing, reduced inventories, and better customer service for all the firms involved.

What is management's role in setting ethical standards?

Managers often set formal ethical standards, but more important are the messages they send through their actions. Management's tolerance or intolerance of ethical misconduct influences employees more than any written ethics codes.

What are three distribution strategies marketers use?

Marketers use three basic distribution strategies: intensive (putting products in as many places as possible), selective (choosing only a few stores in a chosen market), and exclusive (using only one store in each market area).

What are the principles behind the use of such intermediaries?

Marketing intermediaries can be eliminated, but their activities can't. Without wholesalers and retailers, consumers would have to perform the tasks of transporting and storing goods, finding suppliers, and establishing communication with them. Intermediaries add costs to products, but these costs are usually more than offset by the values they create.

What are the key alternatives to the major organizational models?

Matrix organizations assign people to projects temporarily and encourage interorganizational cooperation and teamwork. Cross-functional self-managed teams have all the benefits of the matrix style and are long term.

What are some wholesale organizations that assist in the movement of goods from manufacturers to consumers?

Merchant wholesalers are independently owned firms that take title to the goods they handle. Rack jobbers furnish racks or shelves full of merchandise to retailers, display products, and sell on consignment. Cash-and-carry wholesalers serve mostly small retailers with a limited assortment of products. Drop shippers solicit orders from retailers and other wholesalers and have the merchandise shipped directly from a producer to a buyer.

Why do managers need to be vigilant concerning violence and bullying in the workplace?

Nearly 2 million workers are impacted by workplace violence yearly. Companies have been successful in taking action to protect against violence. Unfortunately, bullying in the workplace is growing.

How does networking fit in this process?

Networking is the process of establishing contacts with key managers within and outside the organization to get additional development assistance.

What are the major concepts involved in interfirm communications?

Networking uses communications technology and other means to link organizations and allow them to work together on common objectives. A virtual corporation is a networked organization of replaceable firms that join and leave as needed. Benchmarking tells firms how their performance measures up to that of their competitors in specific functions. The company may then outsource to companies that perform its weaker functions more effectively and efficiently. The functions that are left are the firm's core competencies.

What are some of the forms of nonstore retailing?

Nonstore retailing includes online retailing; telemarketing (marketing by phone); vending machines, kiosks, and pop-up stores (marketing by putting products in convenient locations, such as in the halls of shopping centers); direct selling (marketing by approaching consumers in their homes or places of work); multilevel marketing (marketing by setting up a system of salespeople who recruit other salespeople and help them sell directly to customers); and direct marketing (direct mail and catalog sales). Telemarketing and online marketing are also forms of direct marketing.

What are the six steps in the selection process?

Obtaining complete application forms, Conducting initial and follow-up interviews, Giving employment tests, Conducting background investigations, Obtaining results from physical exams, Establishing trial (probationary) periods.

What is the relationship of businesses' profit to risk assumption?

Profit is money a business earns above and beyond the money that it spends for salaries and other expenses. Businesspeople make profits by taking risks. Risk is the chance an entrepreneur takes of losing time and money on a business that may not prove profitable. A loss occurs when a business's costs and expenses are higher than its revenues.

One reason the role of human resource management has grown is that the shift from traditional manufacturing industries to service and high-tech manufacturing industries requires businesses to hire workers with highly technical job skills. This shift means that many workers must be retrained for new, more challenging jobs. People truly are the ultimate resource. They develop the ideas that eventually become products to satisfy consumers' wants and needs.

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Today the job of human resource management has taken on an increased role in the firm since qualified employees are much scarcer due to an increase in jobs that require advanced or specialized training, This shortage of qualified workers makes recruiting and retaining people more important and more difficult.1 In fact, the human resource function has become so important that it's no longer the job of just one department; it's a responsibility of all managers

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What methods do human resource managers use to recruit new employees?

Recruiting sources are classified as either internal or external. Internal sources include those hired from within (transfers, promotions, reassignments) and employees who recommend others to hire. External recruitment sources include advertisements, public and private employment agencies, college placement bureaus, management consultants, online sites, professional organizations, referrals, and online and walk-in applications.

product screening

Reduces the number of new products a firm is working on to focus on the most promising.

How are some companies addressing the child care issue?

Responsive companies are providing child care on the premises, emergency care when scheduled care is interrupted, discounts with child care chains, vouchers to be used at the employee's chosen care center, and referral services.

high-low pricing strategy

Setting prices that are higher than EDLP stores, but having many special sales where the prices are lower than competitors'.

Who are stakeholders, and which stakeholders are most important to a business?

Stakeholders include customers, employees, stockholders, suppliers, dealers, bankers, the media, people in the local community, environmentalists, and elected government leaders. The goal of business leaders is to try to recognize and respond to the needs of these stakeholders and still make a profit.

What is the difference between statutory law and common law?

Statutory law includes state and federal constitutions, legislative enactments, treaties of the federal government, and ordinances—in short, written law. Common law is the body of unwritten law that comes from decisions handed down by judges.

What are the principles of organizational management?

Structuring an organization means devising a division of labor (sometimes resulting in specialization), setting up teams or departments, and assigning responsibility and authority. It includes allocating resources (such as funds), assigning specific tasks, and establishing procedures for accomplishing the organizational objectives. Managers also have to make ethical decisions about how to treat workers.

How has technology benefited workers, businesses, and consumers?

Technology enables workers to be more effective, efficient, and productive. Effectiveness means doing the right thing in the right way. Efficiency means producing items using the least amount of resources. Productivity is the amount of output you generate given the amount of input (e.g., hours worked).

How did the AFL-CIO evolve?

The American Federation of Labor (AFL), formed in 1886, was an organization of craft unions. The Congress of Industrial Organizations (CIO), a group of unskilled and semiskilled workers, broke off from the AFL in 1935. Over time, the two organizations saw the benefits of joining and became the AFL-CIO in 1955. The AFL-CIO is a federation of labor unions, not a national union.

What does the Clayton Act add?

The Clayton Act prohibits exclusive dealing, tying contracts, interlocking directorates, and buying large amounts of stock in competing corporations.

How are equal pay and pay equity different?

The Equal Pay Act of 1963 provides that workers receive equal pay for equal work (with exceptions for seniority, merit, or performance). Pay equity is the demand for equivalent pay for jobs requiring similar levels of education, training, and skills.

Which act regulates false and deceptive advertising?

The Federal Trade Commission Act prohibits unfair methods of competition in commerce, including deceptive advertising.

Which act prohibits price discrimination and demands proportional promotional allowances?

The Robinson-Patman Act applies to both sellers and buyers who knowingly induce or receive an unlawful discrimination in price

What does the Sherman Act cover?

The Sherman Act forbids contracts, combinations, or conspiracies in restraint of trade and actual monopolies or attempts to monopolize any part of trade or commerce.

ISO 14001:2004

The _____ series of standards is designed to promote environmental awareness and protection as well as pollution prevention.

What was the first union?

The cordwainers (shoemakers) organized a craft union of skilled specialists in 1792. The Knights of Labor, formed in 1869, was the first national labor organization.

What are the five factors of production?

The five factors of production are land, labor, capital, entrepreneurship, and knowledge. Of these, the most important are entrepreneurship and knowledge. Entrepreneurs are people who risk time and money to start and manage a business. What makes rich countries rich today is a combination of entrepreneurship and the effective use of knowledge.

What is the difference between the formal and informal organization of a firm?

The formal organization details lines of responsibility, authority, and position. It's the structure shown on organization charts. The informal organization is the system that develops spontaneously as employees meet and form cliques, relationships, and lines of authority outside the formal organization. It's the human side of the organization. The informal organization is an invaluable managerial asset that often promotes harmony among workers and establishes the corporate culture. As effective as the informal organization may be in creating group cooperation, it can still be equally powerful in resisting management directives.

What are the four types of distribution systems?

The four distribution systems that tie firms together are (1) corporate systems, in which all organizations in the channel are owned by one firm; (2) contractual systems, in which members are bound to cooperate through contractual agreements; (3) administered systems, in which all marketing functions at the retail level are managed by manufacturers; and (4) supply chains, in which the various firms in the supply chain are linked electronically to provide the most efficient movement of information and goods possible.

What are the four traditional promotional tools that make up the promotion mix?

The four traditional promotional tools are advertising, personal selling, public relations, and sales promotion. The product itself can also be a promotional tool

What can governments in developing countries do to reduce the risk of starting businesses and thus help entrepreneurs?

The government may allow private ownership of businesses, pass laws that enable businesspeople to write contracts that are enforceable in court, establish a currency that's tradable in world markets, help lessen corruption in business and government, and keep taxes and regulations to a minimum. From a business perspective, lower taxes mean lower risks, more growth, and thus more money for workers and the government.

What types of compensation are appropriate for teams?

The most common are gain-sharing and skill-based compensation programs. Managers also reward outstanding individual performance within teams.

What are some of the more important environmental trends in marketing?

The most important global and technological change is probably the growth of the Internet and mobile marketing. Another is the growth of consumer databases, with which companies can develop products and services that closely match consumers' needs. Marketers must monitor social trends like population growth and shifts to maintain their close relationship with customers. They must also monitor the dynamic competitive and economic environments.

What are the steps in the B2C selling process?

The steps are the approach, which includes asking questions; the presentation, which includes answering questions; the close; and the follow-up.

What are the six steps of the product development process?

The steps of product development are (1) generation of new-product ideas, (2) product screening, (3) product analysis, (4) development, (5) testing, and (6) commercialization.

What are the seven steps of the B2B selling process?

The steps of the selling process are (1) prospect and qualify, (2) preapproach, (3) approach, (4) make presentation, (5) answer objections, (6) close sale, and (7) follow up.

computer-integrated manufacturing (CIM)

The uniting of computer-aided design with computer-aided manufacturing.

What are the four classifications of consumer goods and services, and how are they marketed?

There are convenience goods and services (requiring minimum shopping effort); shopping goods and services (for which people search and compare price and quality); specialty goods and services (which consumers go out of their way to get, and for which they often demand specific brands); and unsought goods and services (products consumers are unaware of, haven't thought of buying, or need to solve an unexpected problem). Convenience goods and services are best promoted by location, shopping goods and services by some price/quality appeal, and specialty goods and services by specialty magazines and interactive websites.

Human Resource Laws

These laws were passed because many businesses did not exercise fair labor practices voluntarily.

What is happening today to American businesses?

They are adjusting to changing markets. That is a normal function in a capitalist economy. There will be big winners, like Google and Facebook, and big losers as well. The key to success is remaining flexible and adapting to the changing times.

What are common types of compensation systems?

They include salary systems, hourly wages, piecework, commission plans, bonus plans, profit-sharing plans, and stock options.

What will unions have to do to cope with continually declining membership?

Unions are facing a changing workplace. The National Education Association is now the nation's largest union. The Service Employees International Union (SEIU), with 2 million members, is the second-largest union. Going forward, unions must adapt to an increasingly white-collar, female, and culturally diverse workforce. To help keep U.S. businesses competitive in global markets, many have taken on a new role in assisting management in training workers, redesigning jobs, and assimilating the changing workforce.

why do companies hire contingent workers?

Workers want diversity and flexibility in their roles and the ability to showcase their skills; and employers have shifted from "I need to hire a person" to "I need to complete a task."

What is elder care, and what problems do companies face with regard to this growing problem?

Workers who need to provide elder care for dependent parents or others are generally more experienced and vital to the mission of the organization than younger workers are. The cost to business is very large and growing.

What are the advantages and disadvantages of entrepreneurship?

Working for others means getting benefits like paid vacations and health insurance. Entrepreneurs take more risks and lose those benefits. They gain the freedom to make their own decisions, more opportunity, and possible wealth.

Customer Relationship Management (CRM)

a company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups

product line

a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges

intermittent process

a production process in which the production run is short and the machines are changed frequently to make different products

Six Sigma Quality

a quality measure that allows only 3.4 defects per million opportunities

relationship marketing

a strategy that focuses on keeping and improving relationships with current customers

Job Analysis

a study of what employees do who hold various job titles

Enterprise Resource Planning (ERP)

a suite of applications called modules, a database, and a set of inherent processes for consolidating business operations into a single, consistent, computing platform

Gantt Chart

bar graph showing production managers what projects are being worked on and what stage they are in at any given time

gain-sharing systems

base bonuses on improvements over previous performance

Marketing Concept

customer orientation, service orientation, profit orientation

volume segmentation

defining consumers as light, medium, or heavy users of products

target costing

designing a product so that it satisfies customers and meets the profit margins desired by the firm

one-to-one marketing

developing a unique mix of goods and services for each individual customer

pyschographic segmentation

dividing a market into different segments based on social class, lifestyle, or personality characteristics

staff personnel

employees who advise and assist line personnel in meeting their goals

penetration strategy

enables the firm to penetrate or capture a large share of the market quickly

total product offer

everything that consumers evaluate when deciding whether to buy something; also called a value package

economies of scale

factors that cause a producer's average cost per unit to fall as output rises

secondary data

information already compiled by others and published in journals and books or made available online.

What is a wholesaler?

intermediary who sells to other intermediaries, usually retailers

tall organization structure

layer after layer of management

bureaucrat

middle manager according to Weber

human resource specific plan

must address recruiting, selecting, training, developing, appraising, compensating, and scheduling the labor force

4 training techniques

orientation, on the job training, apprentice, and online training

Skill-Based Pay Systems

pay structures that set pay according to the employees' levels of skill or knowledge and what they are capable of doing

Performance appraisals six steps

performance standards, communicating those standards, evaluating performance, discussing results with employees, taking correct actions, using the results to make the decisions.

ISO 9001 Standards

quality management and assurance standards

demographic segmentation

segmenting markets by age, gender, income, ethnic background, and family life cycle

geographic segmentation

segmenting markets by region of a country or the world, market size, market density, or climate

everyday low pricing

setting a low list price rather than relying on frequent sales, discounts, or allowances

distributed product development

term used to describe handing off various parts of your innovation process - often to companies in other countries

assembly process

that part of the production process that puts together components

Departmentalization

the dividing of organizational functions into separate units

span of control

the optimal number of subordinates a manager supervises or should supervise

Human Resource Management (HRM)

the process of determining human resource needs and then recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals

Market Segmentation

the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups

benefit segmentation

the process of grouping customers into market segments according to the benefits they seek from the product

lean manufacturing

the production of goods using less of everything compared to mass production

price leadership

the strategy by which one or more dominant firms set the pricing practices that all competitors in an industry follow

computer-aided manufacturing (CAM)

the use of computers in the manufacturing of products

Form Utility

the value producers add to materials in the creation of finished goods and services

core competencies

those functions that the organization can do as well as or better than any other organization in the world

vestibule training

training done in schools where employees are taught on equipment similar to that used on the job

Fayol Principles

unity of command, hierarchy of authority, division of labor, degree of centralization, clear communication channels, and equity.

digital natives

young people who have grown up using the internet and social networking

What are the steps in conducting marketing research?

(1) Define the problem or opportunity and determine the present situation, (2) collect data, (3) analyze the data, and (4) choose the best solution.

What are the three major steps in a good public relations program?

(1) Listen to the public, (2) develop policies and procedures in the public interest, and (3) tell people you're being responsive to their needs.

What are the three parts of the marketing concept?

1. customer orientation 2. service orientation 3. profit orientation

How has marketing changed over time?

1. production era 2. sales era 3. marketing concept era 4. customer relationship era

What is 3D printing and what is it used for?

3D printing (also known as additive manufacturing) is technology that creates a product one layer at a time by a nozzle similar to those found in inkjet printers. Today 3D printing is largely used to create prototype models or molds for other industrial projects.

What is a channel of distribution?

A channel of distribution consists of a whole set of marketing intermediaries like: agents, brokers, wholesalers, and retailers, that join together to transport and store goods in their path (or channel) from producers to consumers.

What is the history of our economic development in the United States, and what does it tell us about the future?

Agricultural workers displaced by improved farm technology went to work in factories. Improved manufacturing productivity and increased competition from foreign firms Page 22 contributed to the development of a service economy in the United States. The service era is now giving way to an information-based global revolution that will affect all sectors of the economy. The secret to long-term success in such an economy is flexibility and continuing education to be prepared for the opportunities that are sure to arise.

What makes a contract enforceable under the law?

An enforceable contract must meet six conditions: (1) an offer must be made, (2) the offer must be voluntarily accepted, (3) both parties must give consideration, (4) both parties must be competent, (5) the contract must be legal, and (6) the contract must be in proper form.

performance appraisal

An evaluation that measures employee performance against established standards in order to make decisions about promotions, compensation, training or termination.

What is an intentional tort?

An intentional tort is a willful act that results in injury.

Matrix Organization

An organization in which specialists from different parts of the organization are brought together to work on specific projects but still remain part of a line-and-staff structure.

line organization

An organization that has direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with all people reporting to only one supervisor.

What does Article 2 of the UCC cover?

Article 2 contains laws regarding warranties. Express warranties are guarantees made by the seller, whereas implied warranties are guarantees imposed on the seller by law

Age Discrimination in Employment Act of 1967

Bans age discrimination for jobs unless age is related to job performance

What is brand equity, and how do managers create brand associations?

Brand equity is the value of a brand name and associated symbols. Brand association is the linking of a brand to other favorable images such as product users, a popular celebrity, or a geographic area.

What do brand managers do?

Brand managers coordinate product, price, place, and promotion decisions for a particular product.

What is break-even analysis?

Break-even analysis is the process used to determine profitability at various levels of sales. The break-even point is the point where revenues from sales equal all costs

Benchmarking

Comparing an organization's practices, processes, and products against the world's best.

What is corporate social responsibility?

Corporate social responsibility is the concern businesses have for society.

What makes the business-to-business market different from the consumer market?

Customers in the B2B market are relatively few and large. B2B markets tend to be geographically concentrated, and industrial buyers generally are more rational than ultimate consumers in their selection of goods and services. B2B sales tend to be direct, and there is much more emphasis on personal selling than in consumer markets.

What are the latest trends in structuring?

Departments are often replaced or supplemented by matrix organizations and cross-functional teams that decentralize authority. The span of control becomes larger as employees become self-directed. Another trend is to eliminate managers and flatten organizations.

reverse discrimination

Discrimination against the majority group

What is the difference between logistics and distribution?

Distribution generally means transportation. Logistics is more complex.

How have social changes affected businesses?

Diversity has come to mean much more than recruiting and keeping minority and female employees. Diversity efforts now include older adults, people with disabilities, people with different sexual orientations, atheists, extroverts, introverts, married people, and singles. Managing diversity means dealing sensitively with workers and cultures around the world. Providing Social Security benefits to senior citizens in the future will draw huge amounts of money from the working population. That is why there is so much discussion about Social Security in the media today.

Equal Employment Opportunity Commission

Federal agency created to enforce the Civil Rights Act of 1964, which forbids discrimination on the basis of race, creed, national origin, religion, or sex in hiring, promotion, or firing.

What kind of firms use operations managers?

Firms in both the manufacturing and service sectors use operations managers.

What are the benefits and challenges of flextime?

Flextime allows employees to adjust to work-life demands. Two-income families find them especially helpful. Companies that use flextime say that it boosts employee productivity and morale.

flextime plan

Gives employees some freedom to choose which hours to work as long as they work the required number of hours or complete their tasks.

Two influential thinkers?

Henri Fayol and Max Weber

What are the possible consequences if a contract is violated?

If a contract is violated, one of the following may be required: (1) specific performance, (2) payment of damages, or (3) discharge of obligation.

How does the government use taxes to encourage or discourage certain behavior among taxpayers?

If the government wishes to change citizens' behavior, it can reduce their use of certain classes of products (cigarettes, liquor) by passing sin taxes to raise their cost. In other situations, the government may offer tax credits to encourage businesses to hire new employees or purchase new equipment

What are the major promotional strategies?

In a push strategy, the producer uses advertising, personal selling, sales promotion, and all other promotional tools to convince wholesalers and retailers to stock and sell merchandise. In a pull strategy, heavy advertising and sales promotion efforts are directed toward consumers so they'll request the products from retailers.

What are industrial goods, and how are they marketed differently from consumer goods?

Industrial goods are products sold in the business-to-business (B2B) market and used in the production of other products. They're sold largely through salespeople and rely less on advertising.

How do marketing intermediaries add value?

Intermediaries perform certain marketing tasks—such as transporting, storing, selling, advertising, and relationship building—faster and more cheaply than most manufacturers could. Channels of distribution ensure communication flows and the flow of money and title to goods. They also help ensure that the right quantity and assortment of goods will be available when and where needed.

What is intermodal shipping?

Intermodal shipping uses multiple modes of transportation—truck, air, water, rail—to complete a single long-distance movement of freight.

How are sales promotion activities used both within and outside the organization?

Internal sales promotion efforts are directed at salespeople and other customer-contact people to keep them enthusiastic about the company. Internal sales promotion activities include sales training, sales aids, audio-visual displays, and trade shows. External sales promotions to consumers rely on samples, coupons, cents-off deals, displays, store demonstrators, premiums, and other incentives.

Americans with Disabilities Act of 1990

Major anti-discrimination law for disabled; requires access (ramps, braille, etc.); unfunded mandate

How can U.S. companies influence ethical behavior and social responsibility in global markets?

Many U.S. businesses are demanding socially responsible behavior from their international suppliers by making sure their suppliers do not violate U.S. human rights and environmental standards. Companies such as Sears, PVH, and Dow Chemical will not import products from companies that do not meet their ethical and social responsibility standards.

management training programs

On-the-job coaching Understudy positions Job rotation Off-the-job courses and training

What are the seven functions of packaging?

Packaging must (1) attract the buyer's attention; (2) protect the goods inside, stand up under handling and storage, be tamperproof, and deter theft; (3) be easy to open and use; (4) describe the contents; (5) explain the benefits of the good inside; (6) provide information about warranties, warnings, and other consumer matters; and (7) indicate price, value, and uses. Bundling means grouping two or more products into a unit, through packaging, and charging one price for them.

What are a few of the most publicized examples of deregulation?

Perhaps the most publicized examples of deregulation have been those in the airline, telecommunications, electric power, financial services, and health care industries.

Why do companies use nonprice strategies?

Pricing is one of the easiest marketing strategies to copy. It's often not a good long-run competitive tool.

skimming price strategy

Pricing new products high to recover costs and make high profits while competition is limited.

What are pricing objectives?

Pricing objectives include achieving a target profit, building traffic, increasing market share, creating an image, and meeting social goals.

What is process manufacturing, and how does it differ from assembly processes?

Process manufacturing physically or chemically changes materials. Assembly processes put together components.

What will be the impacts of future wars and terrorism?

Some businesses, such as those in the defense industry, may prosper. Others, such as tourism, may suffer. One way to minimize world tensions is to help less developed countries become more prosperous.

What are some ways in which businesses meet and beat competition?

Some companies have found a competitive edge by focusing on making high-quality products, all the way to zero defects. Companies also aim to exceed customer expectations. Often that means empowering frontline workers by giving them more training and more responsibility and authority.

What are the four stages in the product life cycle?

The four product life cycle stages are introduction, growth, maturity, and decline.

What is a fair wage for managers?

The market and the businesses in it set managers' salaries. What is fair is open to debate.

What are the various transportation modes?

Transportation modes include rail (for heavy shipments within the country or between bordering countries); trucks (for getting goods directly to consumers); ships (for slow, inexpensive movement of goods, often internationally); pipelines (for moving water, oil, and other such goods); and airplanes (for shipping goods quickly).

What have U.S. manufacturers done to achieve increased output?

U.S. manufacturers have increased output by emphasizing close relationships with suppliers and other companies to satisfy customer needs; continuous improvement; quality; site selection; use of the Internet to unite companies; and production techniques such as enterprise resource planning, computer-integrated manufacturing, flexible manufacturing, lean manufacturing, robotics, and 3D printing.

What are the tactics used by unions and management in conflicts?

Unions can use strikes and boycotts. Management can use strikebreakers, injunctions, and lockouts.

How can we tell if our business decisions are ethical?

We can put our business decisions through an ethics check by asking three questions: (1) Is it legal? (2) Is it balanced? and (3) How will it make me feel?

What's the difference between compliance-based and integrity-based ethics codes?

Whereas compliance-based ethics codes are concerned with avoiding legal punishment, integrity-based ethics codes define the organization's guiding values, create an environment that supports ethically sound behavior, and stress a shared accountability among employees.

line personnel

Workers responsible for directly achieving organizational goals, and include production, distribution and marketing employees.

product mix

all products that an organization sells

job sharing program

allows two or more employees to divide the tasks of one job

centralized authority

an organization structure in which decision-making authority is maintained at the top level of management

inverted organization

an organization that has contact people at the top and the chief executive officer at the bottom of the organization chart

Business-to-business (B2B)

applies to businesses buying from and selling to each other over the internet

contingent workers

employees that include part-time workers, temporary workers, seasonal workers, independent contractors, interns, and co-op students

flat organization structure

fewer layers of management and a broad span of control

cafeteria-style fringe benefits

fringe benefits plan that allows employees to choose the benefits they want up to a certain dollar amount

cross-functional self-managed teams

groups of employees from different departments who work together on a long-term basis

decentralized authority

important decisions are made by middle-level and supervisory-level managers

critical path

in a PERT network, the sequence of tasks that takes the longest time to complete

psychological pricing

pricing goods and services at price points that make the product appear less expensive than it is

Marketing Mix

product, price, place and promotion

Industrial Products

products purchased for further processing or for use in conducting a business

Title VII of the Civil Rights Act

prohibits discrimination in employment based on five criteria: race, color, religion, gender, or national origin

Niche Marketing

the process of finding small but profitable market segments and designing or finding products for them

core time

when all employees are expected to be at their job stations