Business Final Exam
how can value-stream mapping improve routing efficiency?
help identify where bottlenecks may occur in the production process
how does marketing research help companies make better use of their marketing budgets?
helps them fine-tune existing products as well as discover whole new marketing concepts
how does systems integration benefit a company?
helps to create new opportunities and reach their goals
describe at least five types of in-store retailing and four forms of nonstore retailing
in-store retailing -department store -specialty store -convenience store -supermarket -discount store nonstore retailing types -vending -home shopping networks -internet retailing -direct selling
describe merchant wholesalers
institution that buys goods from manufacturers and resells them -take title of goods sold
describe each stage of the product life cycle
introduction -frequent modifications, heavy production -failure rate high -costs high, volume low growth -sales grow -competitors enter market -distribution - major key to success -prices fall, profits peak maturity -sales mount at decreasing rate -been on market for long time decline (and death) -sales and profits falls
what are the marketing strategies for each stage of the product life cycle?
introduction - frequent modifications growth - emphasis switches from the primary demand promotion to aggressive brand advertising and communicating the differences between brands maturity - line extension decline (and death) - implementing changes to the product, such as new ingredients or new services
how can lean manufacturing and just-in-time inventory management help a firm improve its production and operations?
lean manufacturing - streamlines production by eliminating steps in the production process that do not add benefits customers want just-in-time (JIT) - materials should arrive exactly when they are needed for production, rather than being stored on-site -rely closely on computerized systems -requires close teamwork to avoid delays -unexpected events create problems -greatly reduce inventory-holding costs and smooth production highs and lows
What are the three phases of production planning?
long-term - 3 to 5 years, focus on what goods to produce, how many to produce, and where they should be produced medium-term - 2 years, concern the layout of factory or service facilities, where and how to obtain the resources needed for production, and labor issues short-term - 1 year time frame, converts broader goals into specific production plans and materials management strategies
what are management information systems, and what challenges face the CEO in developing the MIS?
management information systems - methods and equipment that provide information about all aspects of a firm's operations challenges CEO faces when developing MIS - managing all information resources
differentiate between financial accounting and managerial accounting
managerial accounting - financial information that managers inside the organization can use to evaluate and make decisions about current/future operations financial accounting - focuses on preparing external financial reports that are used by outsiders -people who have an interest in the business but are not part of the company's management
how do companies organize for new-product development?
marketers have several different terms for new products, depending on how the product fits into a company's existing product line
how can marketing techniques help not-for-profit organizations?
marketing helps not-for-profit groups identify target markets and develop effective marketing mixes -help managers do their job better -generate enough funds to expand their services to assist more people
describe the different types of production processes
mass production - manufacturing many identical goods at once, keeps costs low by producing uniform products using repetitive and standardized processes mass customization - goods are produced using mass-production techniques up to a point, at that point, product/service is custom-tailored to the needs or desires of individual customers customization - firm produced goods/services one at a time according to the specific needs/wants of an individual customer
how does sales promotion differ from advertising?
methods and tactics are different
describe odd-even pricing and prestige pricing
odd-even pricing - setting a price at an odd number to connote a bargain and an even number to imply quantity prestige pricing - raising the price of a product so consumers will perceive it as being of higher quality, status or value
what is the product life cycle?
patterns of sales and profits over time for a product or product category
what is the difference between penetration pricing and price skimming?
penetration pricing - company offers new products at low prices in hopes of achieving large sales volume price skimming - introducing a new product on the market with high price and then lowering price over time
how are inputs transformed into outputs in a variety of industries?
process manufacturing - basic inputs are broken down into one or more outputs assembly process - basic inputs are combined to create the output or transformed into the output
define market segmentation
process of separating, identifying, and evaluating the layers of a market to identify a target market
what is a product?
product - good, service, or idea that creates value for customer
what are the components of the marketing mix?
product strategy - choosing brand name, packaging, colors, warranty, accessories, and a service program pricing strategy - based on the demand for the product and the cost of producing that product place (distribution) strategy - creating the means by which a product flows from producer to consumer promotion strategy - personal selling, traditional advertising, public relations, sales promotion, social media, and e-commerce
what is production control, and what are the key aspects?
production control - coordination of materials, equipment, and human resources to achieve production and operating efficiencies -2 key aspects: routing and scheduling
What are the three types of decisions that must be made in production planning?
production planning - managers decide where, when, and how production will occur production control - controlling quality and costs, scheduling, and the actual day-to-day operations of running a factory improving production and operations - focus on developing more efficient methods of producing the firm's goods or services
what should be considered when deciding on a production approach?
products that require a continuous/repetitive production process - product layout products impossible to move - fixed-position layout each cell performs all tasks necessary to complete order, creates team environment - cellular manufacturing
explain the selling process
prospecting and qualifying -prospecting - a salesperson looks for sales products, the companies and people who are most likely to buy the seller's offerings -inquiries - sales leads -qualifying questions used to separate prospects from those who do not have the potential to buy approaching customers presenting and demonstrating a product -unstructured presentation with no set format is most successful approach handling objection closing the sale following up on the sale -repeat sales - goal of professional salespeople
how do channels reduce the number of transactions?
provide a variety of products in one location so that customers can conveniently buy many different items from one seller at one time
how does public relations differ from advertising?
public relations is any communication or activity designed to win goodwill or prestige for a company or person
how can managers use techniques to improve efficiency?
quality-management techniques -quality control - creating quality standards, producing goods that meet them, and measuring finished goods/services against them lean manufacturing - streamlines production by eliminating steps in the production process that do not add benefits customers want technology and automation
what factors does a firm consider when making a site-selection decision?
resources - availability and cost of labor number of manufacturers in certain industry in an area locality labor costs in foreign countries
how do retained earnings relate to owners' equity?
retained earnings - amounts left over from profitable operations since the firm's beginning -total profit minus all dividends paid to stockholders -related to owners' equity because it is the owners' total investment in the business after all liabilities have been paid
how are companies and other organizations using digital forensics to obtain critical information?
safeguards evidence by duplicating hard drive
why is prestige pricing prevalent in services?
services providers with reputations for excellent service are more in demand, often with a waiting list -due to the fact that services are tied directly to the people who provide them and those people have only so much time in a week in which to provide services
describe the six-step accounting cycle
step 1: analyze transactions in a journal step 2: record transactions in a journal step 3: post journal entries to ledger step 4: prepare trial balance step 5: prepare financial statements and management reports from account data step 6: analyze reports
what is meant by relationship marketing?
strategy that focuses on forging long-term partnerships with customers
what is a balance sheet?
summarizes a firm's financial position at a specific point in time
what is a target market, and why should a company have one?
target market: specific group of customers toward which a firm directs its marketing efforts -why: identifying a target market helps a company focus its marketing efforts on those who are most likely to buy its products or services
what is environmental scanning?
team of specialists who continually collect and evaluate environmental information -goal: identify current and future market opportunity and threats
how are both manufacturing and non manufacturing firms using technology and automation to improve operations?
technologies helping to automate manufacturing -computer-aided design -manufacturing systems -robotics -flexible manufacturing systems -computer-integrated manufacturing non manufacturing firms use automation to improve customer service and productivity -ATM via automated telephone systems or internet -point of sale (POS) terminals track inventories -identify items that need to be reordered, and tell which products are selling well
what has been the effect of social media on traditional advertising?
the business world now relies on the internet for much of its communications, marketing or otherwise
what are the approaches to inventory that businesses can consider?
the make-or-buy decision - firm decides whether to make its own production materials or buy them from outside sources buying standard items is usually cheaper and easier then producing internally outsourcing - items are purchased from an outside source instead of being made internally, can be cost effective
why do companies find that productivity rises when they offer employees the option of join the virtual workforce?
the workforce is happier therefore more willing to work
what was edward demming's contribution to operations management?
total quality management (TQM) - emphasizes the use of quality principles in all aspects of a company's production and operations -focuses on continuous improvement - a commitment to constantly seek better ways of doing things in order to achieve greater efficiency and improve quality
how is technology impacting the way advertisers reach their market?
traditional forms of entertainment are being rapidly digitalized
how can brick-and mortar stores use technology to compete with online giants such as Amazon?
traditional retailers are turning to technology to gain an advantage, outfitting their sales associates with voice headgear so they can look up prices and product information to assist customers
what are the classes of consumer products?
unsought products - unplanned by potential buyer or known products buyer does not actively seek convenience products - relatively inexpensive items that require little shopping effort shopping products - bought only after brand-to-brand and store-to-store comparison of price, suitability, and style specialty products - consumers search long and hard for which they refuse to accept substitutes
explain the marketing concept
use of marketing data to focus on the needs/wants of customers in order to develop marketing strategies that not only satisfy the needs of the customers but also to accomplish the goals of the organization
define wholesaling, and describe what wholesalers do
wholesaling - channel members that buy finished products from manufacturers and then sell them to retailers, manufacturers, and institutions
what are privacy rights advocates alarmed over the use of techniques such as data warehouses and data mining?
with information about their buying habits, advertisers can target consumers for specific marketing programs
describe one-to-one marketing and the role of marketing databases
-one-to-one marketing - creating unique marketing mix for every consumer -marketing database - computerized file of customers' and potential customers' profiles and purchase patterns
explain how business products are classified
classified as capital products or expense items -capital products - large, expensive items with long life span -expense items - smaller, less expensive items that have life span of less than a year
what is the promotional mix?
combination of traditional advertising, personal selling, sales promotion, public relations, social media, and e-commerce used to promote a product
what are the advantages of personal selling?
-provides detailed explanation/demonstration of product -salesperson can answer a multitude of questions -can be directed to qualified prospects -costs can be controlled by adjusting the size of the sales force in one-person increments -more effective than other forms of promotion in obtaining a sale and gaining a satisfied customer
how do business markets differ from consumer markets?
-purchase volume -# of customers -location of buyers -direct distribution
define six sigma
company-wide process that focuses on measuring the number of defects that occur and systematically eliminating them in order to get as close to "zero defects" as possible -key process: DMAIC (define, measure, analyze, improve, control)
summarize the major changes affecting accounting and corporate reporting and the reasons for them
-sarbanes-oxley act - redefined public corporation-auditor relationship and restricts types of services auditors can provide to clients -public company accounting oversight board - given authority to set and amend standard audit reports reasons -committing fraudulent financial reports -stretching accounting riles to enhance financial results -using loopholes to manage financial results
what are the steps in the new-product development process
-set new-product goals -develop new-product ideas -screen ideas/concepts -develop the concept -test-market the new product -introduce to the marketplace
how have online price-comparison engines helped consumers shop for the best price?
-sites include coupons and additional retailer discounts in its price results -sites provide a toolbar that flashes a blinking alert when it finds a lower price for that same item somewhere else -lets consumers search among about 1.5 million products that are backed by antifraud guarantees
how do the GAAP, the FASB, and the IASB influence the accounting industry?
-to ensure accuracy and consistency in the way financial information is reported, U.S. accountants follow generally accepted principles (GAAP) when preparing financial statements -financial accounting standards board (FASB) - private organization that is responsible for establishing financial accounting standards in the U.S. -international accounting standards board (IASB) worked together with FASB to develop global accounting standards that would make it easier to compare financial statements of foreign-based companies -currently, no international accounting standards
what are the features of an integrated marketing communications campaign?
-traditional advertising -personal selling -public relations -social media -e-commerce
describe the different threats to data security
-unauthorized access and security breaches -computer viruses, worms, and trojan horses -deliberate damage to equipment/information -spam -software and media piracy - using software without a license
what are some additional forms of business segmentation?
-use of product -characteristics of purchasing function -size of client -size of industry
differentiate between information management and knowledge management. what steps can companies take to manage knowledge?
-information management involves collecting, processing, and condensing information whereas knowledge management focuses on researching, gathering, organizing, and sharing an organization's collective knowledge to improve productivity, foster innovation, and gain competitive advantage -companies need to create an information culture through organizational structure and rewards that promotes a more flexible, collaborative way of working and communicating
what role do computers and other technology play in accounting?
-computerized and online accounting programs now do many different things to make business operations and financial reporting more efficient -accounting and financial applications typically represent one of the largest portions of a company's software budget
what are two main factors that should be considered when selecting advertising media?
-cost of medium -audience reached by it
what is the objective of a promotional campaign?
-creating awareness -getting consumers to try products -providing information -keeping loyal customers -increasing the amount and frequency of use -identifying target customers -teaching the customer
what factors contribute to the internet's soaring growth in retailing?
-don't have to keep the products on store shelves -market their products to millions of potential customers cheaply and effectively -takes less time to shop online than going in store (takes less work)
what factors most influence a retail store's atmosphere?
-employee type and density -merchandise type and density -fixture type and density -sound -odors
how can companies protect information from destruction and unauthorized use?
-formal written information security policies -regularly backing up applications and data -maintain complete and current database of all IT hardware, software, and user details
how are todays educational trends affecting the future of manufacturing?
-future workers who stay in school to study math and science may not receive globally competitive educations -graduate science and engineering enrollment declining
explain who uses financial information
-managers use it to evaluate and make decisions about current/future operations -lenders, suppliers, investors, government agencies use it to assess the financial strength of a business
explain the consumer purchase decision-making process
-need for recognition -buyer gathers information -evaluate alternatives -make decision to buy or not to buy -assess satisfaction with purchase
describe the impact of the anticipated worker shortage on U.S. business
3.5 million new jobs will be filled over the next decade, but 2 million jobs will go unfilled due to a skills gap
what is business process management (BPM), and how do businesses use it to improve operations management?
BPM - power to integrate and optimize a company's sprawling functions by automating much of what it does -businesses utilize all sorts of production, sales, and shipping data to continually hone their operations
identify and describe three commonly used scheduling tools
Gantt charts - bar graphs plotted on a timeline that show the relationship between scheduled and actual production -most helpful when only a few tasks are involved, task times are long, and job routes are short and simples critical path method (CPM) - manager identifies all activities required to complete the project, the relationships between these activities, and the order in which they need to be completed -develops diagrams that use arrows to show how tasks are dependent of each other -longest path - critical path program evaluation and review technique (PERT) - helps managers identify critical tasks and assess how delays in certain activities will affect operations or productions -uses diagrams to see how operations and production will flow -assigns 3 times estimates for each activity: optimistic time for completion, most probable time, and a pessimistic time
how does a LAN and WAN differ? why would a company use a wireless network?
LAN allows people at ONE site exchange data and share the use of hardware and software whereas WAN connect computers at DIFFERENT sites via telecommunications media companies use a wireless network due to the fact that WAN's make it possible for companies to work on critical projects around the clock by using teams in different time zones
explain the accounting equation
assets = liabilities + owners' equity
what are the three main categories of accounts on the balance sheet, and how do they relate to the accounting equation?
assets, liabilities, and owners' equity -assets - what is owned by the firm -liabilities - what firm owes -owners' equity - total amount of investment in the firm
what advantages do VPNs offer a company? What about ASPs and MSPs?
VPN allows only authorized users to connect to the company network and its sensitive information -companies with widespread offices may find that a VPN is a more cost-effective option -companies using VPNs don't have to buy or maintain special networking equipment and can outsource the management of remote access equipment ASPS proved to be reliable and cost-effective -savings in licensing fees, infrastructure, time, and staff are significant -access any of their applications and data from any computer, and IT can avoid purchasing, installing, supporting, and upgrading expensive software applications -buy and maintain the software on their servers and distribute it through high-speed networks -rent the applications they want for a set period of time and price MSPs offer greater customization and expand the capabilities of ASPs
what is meant by the marketing mix?
based on the 5Ps that bring a specific group of consumers a product with superior value
compare the responsibilities of public and private accountants. how are they certified?
both serve organizations, prepare financial statements and tax returns public - CPA -to be certified public accountant, an accountant must complete an approved bachelor's degree program and pass a test prepared by the American Institute of CPAs (AICPA) private - some hold CPA, others CMA -to become certified management accountant, must pass an examination
explain the difference between the business purchase decision-making process and the consumer purchase decision-making process
businesses decide beforehand what is needed on the purchase and then seek information
describe several types of publicity
buzz marketing - intense word of mouth marketing
list and define the marketing intermediaries that make up a distribution channel
agents - sales representatives of manufacturers and wholesalers brokers - entities that bring buyers and sellers together industrial distributors - independent wholesalers that buy related product lines from many manufacturers and sell them to industrial users wholesalers - firms that sell finished goods to retailers, manufacturers, and institutions retailers - firms that sell goods to consumers and industrial users for their own consumption
what advantages do grid and cloud computing offer a company? what are some of the downsides to using this method?
advantages -any company can access the software and computer capacity as needed -companies can update their inventory in real time across their entire organization -more cost effective disadvantages -licensing -may still require large SMP -requires fast interconnect -some applications require customization
explain the difference between agents and brokers
agent works for the client whereas broker works for the company
what does it mean for a supply chain to be customer driven?
allows companies to respond to the unique product configuration demanded by the customer
what is a computer network? what benefits do companies gain by using networks?
computer network - a group of two or more computer systems linked together by communication channels to share data and information benefits -networks have created new ways to work and increase productivity -provide more efficient use of resources, permitting communication and collaboration across distance and time -all employees, regardless of location, have access to the same information -eliminate duplication of effort -they all see the same thing on their display, and anyone can make changes that are seen by the other participants -videoconferencing
describe several types of sales promotion
consumer sales promotion - targeted to ultimate consumer market trade sales promotion - directed to members of marketing channel
explain the four types of competitive advantages
cost competitive advantage - produce product/service at lower cost all its competitors while maintaining satisfactory profit margins differential competitive advantage - brand names, product reliability, image, and service service differentiation competitive advantage - customers demand a higher level of service for all kinds of products, and if the service level does not meet customer expectations, it is likely that the customer will post negative comments on a review site or upload the interaction to various social media platforms niche competitive advantage - targets and effectively serves single segment of the market
what is the goal of supply-chain management
create a satisfied customer by coordinating all of the activities of the supply-chain members into a seamless process
how are companies embracing social media as a way to connect with customers?
creating blogs, podcasts, and videos to promote their products and provide tips and information
explain the difference between customer value and customer satisfaction
customer value - ratio of benefits for the customer to the sacrifice necessary to obtain those benefits -rooted in the belief that price is not the only thing that matters -believe that many customers will pay a premium for superior customer service or accept fewer services for value price customer satisfaction - customer's feeling that a product has met or exceeded expectations
distinguish between data and information. how are they related? why are data considered a valuable asset for a firm?
data is processed into information and used for specific purposes data is a valuable asset because it helps run the business and to perform business analysis
list and discuss the five basic forms of consumer market segmentation
demographic segmentation - age, education, gender, income, and household size used to differentiate among market geographic segmentation - segmenting markets by region of country, city/county size, market density, or climate psychographic segmentation - market segmentation by personality of lifestyle benefit segmentation - based on what a product will do rather than on consumer characteristics volume segmentation - based on the amount of product purchased
what are some ways a company can manage its technology assets to its advantage?
develop an integrated, company-wide technology plan that balances business judgement, technology expertise, and technology investment
explain the role of the product manager
develops and implements a complete strategy and marketing program for specific product or brand of product
how does new-product development differ for services companies?
for service companies, the new product develop process is similar, but developing the prototype can take less time and resources
how does distribution (place) differ for services products?
for services, distribution channel is based primarily on the location of the services
explain the price of price bundling
grouping 2 or more related products together and pricing them as a single product
