Knowledge Check

_____ is the concern of businesses for the welfare of society as a whole.

Social responsibility

When compared to the consumer market, the business-to-business market:

uses more direct channels of distribution

Recruitment may involve all of the following EXCEPT:

writing job descriptions

The trend toward hyperglobalization has resulted in some backlash, especially after Covid. Which of the following is NOT part of that backlash?

An expansion of free trade regimes around the world.

Which of the following examples would impact one of Porter's VERTICAL forces?

Government reduction in a requirement that all competitors in the industry must be licensed.

A company wants to determine how industry effects have impacted its profitability. Which of the following elements should the company focus on?

the barriers to entry and exit, and rivalry within the industry

Since Cate Langton was hired in the marketing department of a consumer products manufacturer, she has worked in its public relations department, she has worked in its advertising department, and she has worked to help design collateral sales material and point-of-purchase displays. Next week she will go out on the road as a salesperson. What method of training is Langton's employer using?

job rotation

Many weight-loss programs advertise that they can help individuals lose a great deal of weight without any changes in the individual's lifestyle. Typically when the person who has lost the weight leaves the program, he or she regains all the lost weight. This yo-yoing is almost as bad for the body as the excess weight. These weight-loss programs are engaged in _____ behavior.

legal but socially irresponsible

Your Porter analysis has resulted in an evaluation of the industry environment in which supplier power, relative to the core industry, has become stronger. What conclusion can you draw from this?

the cost of goods sold for industry participants is likely to rise

The economic standard of living for a nation's people depends mainly on:

their income and the prices of the goods and services they buy.

The benefits of protective tariffs for the government that implements them are:

they protect domestic jobs by encouraging cost-sensitive consumers to purchase domestic products.

In 2018, Country A exported $84.9 billion and imported products valued at $74.69 billion. The difference between the dollar value of its exports and imports represents a:

trade surplus

When the manufacturer of Dove soap introduced Dove moisturizing body wash, it was an example of the use of a line extension strategy.

True

Which of the following is NOT a question associated with determining market size from the bottom up?

What is the marketing plan that will be used to promote the product?

Jim Ethier

3rd generation Bush family member and CEO from 2003 to 2009

Kara Ethier

4th generation and general manager

Why does it make sense to trade with other nations?

A nation will produce what it can produce most efficiently and effectively and buy from other nations what the other nations can produce most efficiently and effectively.

Demography is the study of:

All of the above

Jay Bush

Appeared in ads for Bush Beans with a talking dog Duke

Which of the following is NOT part of Bush Brothers?

Bush Barbeque

Tom Ferriter

Bush Bros first non family CEO

Condon Bush

Developed the Best Baked Beans Brand

_____ contributes to an employee's self-worth, which, in turn increases productivity and reduces absenteeism.

Empowerment

_____ is the set of moral standards for judging whether something is right or wrong.

Ethics

Which of the following would be a topic emphasized in a macroeconomics course?

Factors that determine how fast a nation's economy is growing.

In the Current Events reading for 9/5, the issue regarding the CEO of Chanel was

Her background was in HRM, a staff career path, rather than a more traditional operational role.

What is the meaning of the acronym "HIRO"?

Highly involved, results oriented culture

Which of the following would be a topic emphasized in a microeconomics class?

How market conditions determine the price of a specific product.

_____ is the process of hiring, developing, motivating, and evaluating people in order to achieve organizational goals.

Human resource management

The confluence of digitization, artificial intelligence, and materials science has resulted in very rapid technological change. This change is creating a "jobless" work environment where labor is being replaced by machines.

In some industries this will be a threat and in other industries this will be an opportunity.

If the economy of the U.S. is in recession which of the following FISCAL POLICY remedies might be tried?

Increasing the money supply through increases in government spending and reducing taxes.

If the U.S. runs a "Trade Deficit" what impact will that have on the GDP?

Lowers the GDP

What are the elements of macro compared to micro economics?

Micro looks at price and quantity through supply and demand while macro looks at GDP, inflation and unemployment.

In the article about Open AI and Chat GPT, the key point of interest was

Microsoft was a partner with Open AI and Open AI was starting a Business version of Chat GPT. The partners would be competing directly in the Business market.

Put these corporate events in the correct order.

Oldest event: A. J. partners with Stokley Brothers to build a tomato cannery. -Canning of pork and beans begins. -Canning of baked beans - Bush's Baked Beans -Bush Brothers headquarters is moved to Knoxville -First non-family CEO is elected -A.J. Bush store is rennovated into a visitor's center. Most recent event

Trends in the environment that make industries more attractive are

Opportunities

_____ are all the individuals or groups to whom a business has a responsibility.

Stakeholders

The Institute for Emerging Issues has estimated that approximately 40% of all jobs in the U.S. will be automated or done by a robot by 2040. This is an example of change in the

Technological envrionment

If the government passed a law that required banks to make it easier for people between the ages of 25 and 35 to buy their first home, which element of GDP would be most likely to increase first?

The "C" element of GDP

Based on the graphic described in class, please answer the following questions. Number 1 above is best represented by:

The Cost of Goods Sold for the producer.

Number 2 above is best represented by:

The Cost of Goods Sold for the producer.

Trends in the environment that make industries more competitive are

Threats

Bush Bros community focus includes sustainability and philanthropy.

True

It is important to understand the trends in the macro environment because they cause the forces impacting industry structure (Porter forces) to potentially change.

True

The manufacturer Mike and Ike, the fruit-flavored chewy candies, has changed its packaging and developed contests all geared to 12- to 17-year-olds. What type of market segmentation identifies its market?

demographic

When Grand Metropolitan, a British company, purchased U.S.-based Pillsbury Co. in order to expand its product line and the market for its existing consumer products, it was an example of

direct foreign investment

All of the following are characteristics unique to the capitalistic or private enterprise system EXCEPT:

economies of scale

Social responsibility should extend beyond the shareholders to include:

employees suppliers consumers community Correct! all of the above

An increase in the rate of inflation would likely result from a(n):

increase in the supply of money in circulation.

Efficiency in distribution systems and free trade around the world has led to:

increased world trade.

Wolfgang Reithofer, a human resource manager at an Austrian brick making company, gathers information about various jobs within the company and specifies the skills and knowledge needed to do each job well. Reithofer is responsible for:

job analyses

One of the documents that help human resource planners find the right person for a specific job is a list of tasks and responsibilities required of the job. This document is known as a:

job description

Peter Drucker, a well-known management scholar, has said that companies should be evaluated on two basic dimensions:

legality and responsibility

Which of the following is the BEST example of a consumer product?

magazines sold to a college bookstore a car bought by a real estate agency for its salespeople to use Incorrect answer: a case of toothbrushes sold to a dentist textbook purchased by a student taking this class

According to the _____, a firm should first identify consumer needs and then produce the goods and services that will satisfy them.

marketing concept

Looking at the Bush Brothers mission statement, the value proposition (the need) that the company is meeting for its customers is

nourishment

CMI International, a composite plastic manufacturer, wants to improve its involvement with the community, so it has established a Community Involvement Office. To fill the positions within this office, the company will attempt to find and attract qualified applicants from the external labor market. This process is called:

recruitment

Which of the following is not an area to consider when deciding to expand into an international market?

similarity of culture Correct answer: all of the above should be considered wealth of the population attitude toward intellectual property political risk

In the early 1990's, canneries like Bush were losing market share to other ways of food preparation like fresh and frozen. In the Porter model, this would suggest that in the vegatable canning industry, frozen and fresh food would be considered ___________ and part of the _________ forces in the model.

substitutes, vertical

Topik is a product that is sprayed on thinning hair and makes the hair appear thicker. The manufacturer considers its potential market to be blue-collar workers who earn less than $30,000 per year, are divorced, and who like to think of themselves as weekend athletes. The manufacturer of Topik considers this group to be its:A. population sample

target market

In a mixed economy, the government is involved in the economic system through:

taxing, spending, and activities to promote the general welfare

The most fundamental and pragmatic reason for the growth in world trade is probably due to: Correct answer:

the need for businesses to expand their markets

Which continent has 60% of the world's population?

Asia

The internet of things can be defined as

Combining physical products (like a car) with digital technology (like an app) to create additional value to a buyer.

Andrew Jackson Bush

Company founder

Which of the following represent the correct calculation for Gross Domestic Product?

Consumption+Investment+Government Spending+Net Exports

_____ is the practice of charitable giving by corporations; includes contributing cash, donating equipment and products, and supporting the volunteers' efforts of company employees.

Corporate philanthropy

A good marketing strategy should carry a product through all stages of the product life cycle.

False

Prestige pricing is the pricing strategy of selling a new product at a low price in hopes of achieving a large sales volume and prestige for the product.

False

The goal in environmental scanning is to gather internal environmental data to identify future market opportunities and threats.

False

Which of the following statements about HR demand forecasting is true?

HR demand forecasting is an internal labor supply forecast.

Which of the following phases was NOT part of Jim Ethiers philosophy about running Bush Brothers

Personal responsibility is the watchword of success.

Look at the article on Social Enterprises. Do you believe that the Coffee Cafe at the Gateway meets the definitions that are proposed in the article? Why or why not?

The Coffee Cafe at the Gateway aligns with the common charaterisistic of a social enterprise. It has a clear social missions, aiming to provide job training for clients in recovery, promote individual lifestyle improvement, and contribute to the community. While generating revenue through coffee sales, CCG primary goal is to support its social objectives and balance financial sustainability. The potential reinvestment of revenue into the org further reflects its social enterprise nature.

In 2019, Burger King introduced the "Impossible Whopper". A few months earlier, Red Robin introduced the "Impossible Burger". Quoba, and Del Taco are introducing vegan tacos. Even KFC is testing "impossible fried chicken". It is becoming a "norm" to eat less meat for health reasons and because of climate change. What category of environmental change is causing this?

The sociocultural environment

Which of the following is not a challenge facing the Bush family as they try to craft a vision and direction for the company?

The success of the Family Council model and the past success at getting all of the family to understand and agree upon a vision process.

In general, when a business is engaged in macro environmental scanning, it looks at all of the following external forces that might affect it EXCEPT:

The supply chain of the industry

In industries where ROA is going UP over time, you can draw the following conclusion:

The threats from buyers and suppliers is low.

Selling retirement plans to people over the age of 50 is an example of demographic segmentation.

True

Stokely's would be considered a competitor to Bush Brothers after their partnership ended.

True

A retailer that allowed its employees to handle a customer complaint without having to ask for permission or direction from management would have:

empowered its employees to help customers

A company can only be concerned about its _____ responsibilities once it has met its economic and legal responsibilities.

ethical

The resources that contribute to the creation of wealth are known as ______.

factors of production

The Minimum Viable Segment refers to

finding customers with similar needs and pain points and who are willing to purchase your product over competitors' products

During a typical employee performance appraisal, the employee's supervisor evaluates the employee's work in terms of:

his or her contribution to the organization

In the general environment a TREND (a change) in some elment is a(n) ______________ if it makes it ________ for firms in an industry to make higher profits.

opportunity, easier

Ethan Djuna is a territorial salesperson for Lennox heating and air conditioning systems. Every six months Djuna's sales manager gives him feedback by showing Djuna a comparison between his actual sales figures and his sales objectives. This feedback is called a _____ appraisal.

performance

The blend of the marketer's tools is called the five Ps. Which of the following is NOT one of the five Ps?

product Correct answer: possession promotion price

Pam sold 3 products at a price of $10 dollars each. Her costs to produce and sell EACH product included: $3 for materials, $2 for shipping, $2 for labor, and $2 for other business expenses. How much profit did Pam make on this entire sale of the 3 products?

$3.00

3M Consumer Healthcare has introduced a "Home 'n Go Pack" packaging concept that organizes each of its bandage offerings into a separate plastic pouch within the bandage box. The pouch is visible through a window in the external packaging. The decision to offer this new packaging was made as part of the _____ strategy.

-product promotion Incorrect answer: possession price Need to find right answer

Look at the criteria for evaluating a business plan. What is your evaluation of the Gateway Coffee Cafe Plan based on these criteria? Would you go forward with this plan if you were Karen Pershing? Desirability: Does it have a clear target customer? Desirability: Does it have a clear Value Proposition? Viability: Does the product or service have a competitive advantage? Viability: Is the entrepreneur or organization able to bring the product to market? Feasibility: Who are the competitors and how many are there? Feasibility: How big is the potential market? How many customers to break even? How easy to find the customers and payers? Feasibility: What is the profit potential going forward? Scalable? How easy or hard? Product and organizationally? How easy for a large competitor to copy?

1. Clear Target Customer The plan says that eh target customer is the local community service worker, and potential construction workers from the new stadium. While it does specifies the potential customer, it needs to have more detailed understanding tadning of what their needs and wants are. 2. Clear Value Proposition: The plan mentions low pricing strategy, welcoming environment, and focus on community. While these are great I think they could benefit from a more specific and unique value propostion. 3. Competitive Advantage One way it plans to be competitive is by pricing but that is it. Its important to think of more than just one way to have an advantage 4. Ability to bring to market They plan to partnership with Metro Drug Coalition to provide space. 5. Competitors and Market size I think they need to do a more thorough analysis of existing competitors and market conditions. The plan assumes a modest local customer base which aligns with the vibe of the neighborhood 6. Break even and profit potential I think the plan is clear of the cost involved and sets realistic targets for the number of items to be sold. Its important to validate these assumptions over time. 7. Scalability While they do talk about this I think it might not be a primary goal due to focusing on the community focus coffee shop and small town feel 8. Ease of Imitation by Competitors The plan mentions importance of a low price point, but never mention how they plan to protect that low price point. It possible for larger competitors to copy the concept if it proves successful. I think to go forward with this plan you would need more market research as well as more reasons to stand out than just the price point.

During the past 150 years, the U.S. has evolved from: Correct answer:

an agrarian economy to a manufacturing economy to a service-oriented economy, to an information economy.

Which of the following is a type of on-the-job training?

apprenticeship

Upward and downward changes in aggregate economic activity, as measured by GDP, are called:

business cycles

A free market is one in which decisions about what to produce and in what quantities are made by:

buyers and sellers making transactions in the market

An economic system based on competition in the marketplace and private ownership of the factors of production is known as:

capitalism

Which of the following is NOT one of the main activities for a human resource manager?

coordinating marketing and production activities

Finding a place to live in Mumbai, India, has been getting harder these days for people who are not vegetarians. Vegetarianism is a centuries-old custom among the Indian population, but the requirement is becoming more obvious as non-vegs are being segregated from vegs. This is important consumer information to a McDonald's franchisee and reflects how _____ shapes consumer behavior.

culture

Shenshen Zhongxing Telecom (ZTE) is a Chinese company that is the only telecommunications company in China that produces and markets an inexpensive camera phone to sell to middle class Chinese living in urban areas. Because ZTE targets a single segment within a limited geographical area, it can be said to have a(n):

niche competitive advantage