BUSI 1301- Test #2
Trademark
A brand that has exclusive legal protection for both its brand name and its design
ISO 14000
A collection of the best practices for managing an organization's impact on the environment.
Materials Requirement Planning (MRP)
A computer-based operations management system that uses sales forecasts to make sure that needed parts and materials are available at the right time and place.
Injunction
A court order directing someone to do something or to refrain from doing something
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.
job enrichment
A motivational strategy that emphasizes motivating the worker through the job itself.
Enterprise Resource Planning (ERP)
A newer version of Materials Requirement Planning (MRP), that combines the computerized functions of all the divisions and subsidiaries of the firm--such as finance, human resources, and order fulfillment--into a single integrated software program that uses a single database.
competition-based pricing
A pricing strategy based on what all the other competitors are doing. The price can be set at, above, or below competitors' prices.
just-in-time (JIT) 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.
Continuous Process
A production process in which long production runs turn out finished goods over time
Intermittent Process
A production process in which the production run is short and the machines are changed frequently to make different products
Hierarchy
A system in which one person is at the top of the organization and there is a ranked or sequential ordering from the top down of managers who are responsible to that person.
Management by Objectives (MBO)
A system of goal setting and implementation; it involves a cycle of discussion, review, and evaluation of objectives among top and middle-level managers, supervisors, and employees.
channel of distribution
A whole set of marketing intermediaries, such as agents, brokers, wholesalers, and retailers, that join together to transport and store goods in their path (or channel) from producers to consumers.
Business-to-business (B2B)
All the individuals and organizations that want goods and services to use in producing other goods and services or to sell, rent, or supply goods to others.
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.
Decentralized Authority
An organization structure in which decision-making authority is delegated to lower-level managers more familiar with local conditions than headquarters management could be.
quailty
Consistently producing what the customer wants while reducing errors before and after delivery to the customer
variable costs
Cost that change according to the level of production
Primary Data
Data that you gather yourself (not from secondary sources such as books and magazines).
Affirmative Action
Employment activities designed to "right past wrongs" by increasing opportunities for minorities and women.
Value
Good quality at a fair price. When consumers calculate the value of a product, they look at the benefits and then subtract the cost to see if the benefits exceed the costs.
Off-the-job training
Internal or external training programs away from the workplace that develop any of a variety of skills or foster personal development.
Target Marketing
Marketing directed toward those groups (market segments) an organization decides it can serve profitably.
Personal selling
The face-to-face presentation and promotion of goods and services.
Marketing Mix
The ingredients that go into a marketing program: product, price, place, and promotion.
Public Relations (PR)
The management function that evaluates public attitudes, changes policies and procedures in response to the public's requests, and executes a program of action and information to earn public understanding and acceptance.
Market Segmentation
The process of dividing the total market into groups whose members have similar characteristics.
Networking
The process of establishing and maintaining contacts with key managers in and outside the organization and using those contacts to weave strong relationships that serve as informal development systems.
Economies of Scale
The situation in which companies can reduce their production costs if they can purchase raw materials in bulk; the average cost of goods goes down as production levels increase.
Hawthorn Effect
The tendency of people to behave differently if they know that they are being observed.
viral marketing
The term now used to describe everything from paying customers to say positive things on the Internet to setting up multilevel selling schemes whereby consumers get commissions for directing friends to specific websites.
Production Management
The term used to describe all the activities managers do to help their firms create goods
Computer-Integrated Manufacturing (CIM)
The uniting of computer-aided design with computer-aided manufacturing
principle of motion economy
Theory developed by Frank and Lillian Gilbreth that every job can be broken down into a series of elementary motions.
on-the-job training
Training at the workplace that lets the employee learn by doing or by watching others for a while and then imitating them.
Apprentice Programs
Training programs during which a learner works alongside an experienced employee to master the skills and procedures of a craft.
Expectancy Theory
Victor Vroom's theory that the amount of effort employees exert on a specific task depends on their expectations of the outcome
Grievance
a charge by employees that management is not abiding by the terms of the negotiated labor-management agreement
Product line
a group of products that are physically similar or are intended for a similar market
Job enlargement
a job enrichment strategy that involves combining a series of tasks into one challenging and interesting assignment
job rotation
a job enrichment strategy that involves moving employees from one job to another
brand manager
a manager who has direct responsibility for one brand or one product line; called a product manager in some firms
Wholesaler
a marketing intermediary that sells to other organizations
brand
a name, term, sign, symbol, or design, or a combination of these, that identifies the products or services of one seller or group of sellers and differentiates them from those of competitors
Sampling
a promotional tool in which a company lets consumers have a small sample of a product for no charge
word-of-mouth promotion
a promotional tool that involves people telling other people about products they've purchased
Six Sigma Quality
a quality measure that allows only 3.4 defects per million opportunities
open shop agreement
agreement in right-to-work states that gives workers the option to join or not join a union, if one exists in their workplace
negotiated labor-management agreement (labor contract)
agreement that sets the tone and clarifies the terms under which management and labor agree to function over a period of time
Total fixed costs
all the expenses that remain the same no matter how many products are made or sold
Consumer Market
all the individuals or households that want goods and services for personal consumption or use
promotion
all the techniques sellers use to inform people about and motivate them to buy their products or services
Job Sharing
an arrangement whereby two part-time employees share one full-time job
secondary boycott
an attempt by labor to convince others to stop doing business with a firm that is the subject of a primary boycott; prohibited by the Taft-Hartley Act
Tall Organization Structure
an organizational structure in which the pyramidal organization chart would be quite tall because of the various levels of management
direct marketing
any activity that directly links manufacturers or intermediaries with the ultimate consumer
Product
any physical good, service, or idea that satisfies a want or need plus anything that would enhance the product in the eyes of consumers, such as the brand
Fringe Benefits
benefits such as sick-leave pay, vacation pay, pension plans, and health plans that represent additional compensation beyond base wages
union shop agreement
clause in a labor-management agreement that says workers do not have to be members of a union to be hired, but must agree to join the union within a prescribed period
closed shop agreement
clause in a labor-management agreement that specified workers had to be members of a union before being hired (was outlawed by the Taft-Hartley Act in 1947)
Target costing
designing a product so that it satisfies customers and meets the profit margins desired by the firm
Flexible Manufacturing
designing machines to do multiple tasks so they can produce a variety of products
one-to-one marketing
developing a unique mix of goods and services for each individual customer
Mass Marketing
developing products and promotions to please large groups of people
Reverse Discrimination
discrimination against members of a dominant or majority group usually as a result of policies designed to correct previous discrimination against minority or disadvantaged groups
Line Personnel
employees who are part of the chain of command that is responsible for achieving organizational goals
total product offer
everything that consumers evaluate when deciding whether to buy something; also called a value package
brand awareness
how quickly or easily a given brand name comes to mind when a product category is mentioned
Critical Path
in a PERT network, the sequence of tasks that takes the longest time to complete
Core Time
in a flextime plan, the period when all employees are expected to be at their job stations
Secondary data
information that has already been compiled by others and published in journals and books or made available online
Agents/brokers
marketing intermediaries who bring buyers and sellers together and assist in negotiating an exchange but don't take title to the goods
relationship marketing
marketing strategy with the goal of keeping individual customers over time by offering them products that exactly meet their requirements
American Federation of Labor (AFL)
organization of craft unions that championed fundamental labor issues; founded in 1886
Retailer
organization that sells to ultimate consumers
Psychological pricing
pricing goods and services at price points that make the product appear less expensive than it is
union security clause
provision in a negotiated labor-management agreement that stipulates that employees who benefit from a union must either officially join or at least pay dues to the union
Restructuring
redesigning an organization so that it can more effectively and efficiently serve its customers
direct selling
selling to consumers in their homes or where they work
everyday low pricing (EDLP)
setting prices lower than competitors and then not having any special sales
skimming price strategy
strategy in which a new product is priced high to make optimum profit while there's little competition
product differentiation
the creation of real or perceived product differences
Knights of Labor
the first national labor union; formed in 1869
Span of Control
the optimal number of subordinates a manager supervises or should supervise
Intrinsic reward
the personal satisfaction you feel when you perform well and complete goals
Facility Layout
the physical arrangement of resources (including people) in the production process
Niche Marketing
the process of finding small but profitable market segments and designing or finding products for them
Lean Manufacturing
the production of goods using less of everything compared to mass production
Bargaining Zone
the range of options between the initial and final offer that each party will consider before negotiations dissolve or reach an impasse
Mediation
the use of a third party, called a mediator, who encourages both sides in a dispute to continue negotiating and often makes suggestions for resolving the dispute
vestibule training
training done in schools where employees are taught on equipment similar to that used on the job
Online Training
training programs in which employees complete classes via the internet
Shop Stewards
union officials who work permanently in an organization and represent employee interests on a daily basis
Congress of Industrial Organizations (CIO)
union organization of unskilled workers; broke away from the American Federation of Labor (AFL) in 1935 and rejoined it in 1955
Sexual Harassment
unwelcome sexual advances, requests for sexual favors, and other conduct (verbal or physical) of a sexual nature that creates a hostile work environment
Networking
using communications technology and other means to link organizations and allow them to work together on common objectives
Compressed Workweek
work schedule that allows an employee to work a full number of hours per week but in fewer days
Flextime Plan
work schedule that gives employees some freedom to choose when to work, as long as they work the required number of hours or complete their assigned tasks
Strikebreakers
workers hired to do the jobs of striking workers until the labor dispute is resolved
Telecommuting
working from home via computer
Digital Natives
young people who have grown up using the internet and social networking
marketing intermediaries
Organizations that assist in moving goods and services from producers to businesses (B2B) and from businesses to consumers (B2C).
Advertising
Paid, nonpersonal communication through various media by organizations and individuals who are in some way identified in the advertising message.
pull strategy
Promotional strategy in which heavy advertising and sales promotion efforts are directed toward consumers so that they'll request the products from retailers.
product placement
Putting products into TV shows and movies where they will be seen
electronic retailing
Selling goods and services to ultimate customers (e.g., you and me) over the Internet.
high-low pricing strategy
Setting prices that are higher than EDLP stores, but having many special sales where the prices are lower than competitors' prices
Extrinsic reward
Something given to you by someone else as recognition for good work; extrinsic rewards include pay increases, praise, and promotions.
Time-Motion Studies
Studies, begun by Frederick Taylor, of which tasks must be performed to complete a job and the time needed to do each task.
Process Manufacturing
That part of the production process that physically or chemically materials
Assembly Process
That part of the production process that puts together components
Focus Groups
A small group of people who meet under the direction of a discussion leader to communicate their opinions about an organization, its products, or other given issues.
Operations Management
A specialized area in management that converts or transforms resources (including Human Resources) into goods and services
Job Description
A summary of the objectives of a job, the type of work to be done, the responsibilities and duties, the working conditions, and the relationship of the job to other functions.
Product Life Cycle
A theoretical model of what happens to sales and profits for a product class over time; the four stages of the cycle are introduction, growth, maturity, and decline.
Marketing Concept
A three-part business philosophy: (1) a customer orientation, (2) a service orientation, and (3) a profit orientation.
yellow dog contract
A type of contract that required employees to agree as a condition of employment not to join a union; prohibited by the Norris-LaGuardia Act in 1932.
organization chart
A visual device that shows relationships among people and divides the organization's work; it shows who reports to whom.
Training and Development
All attempts to improve productivity by increasing an employee's ability to perform. Training focuses on short-term skills, whereas development focuses on long-term abilities.
Lockout
An attempt by management to put pressure on unions by temporarily closing the business
Performance Appraisal
An evaluation that measures employee performance against established standards in order to make decisions about promotions, compensation, training or termination.
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.
Bureaucracy
An organization with many layers of managers who set rules and regulations and oversee all decisions.
Publicity
Any information about an individual, product, or organization that's distributed to the public through the media and that's not paid for or controlled by the seller.
agency shop agreement
Clause in a labor-management agreement that says employers may hire nonunion workers; employees are not required to join the union but must pay a union fee.
Benchmarking
Comparing an organization's practices, processes, and products against the world's best.
Hygiene Factors
In Herzberg's theory of motivating factors, job factors that can cause dissatisfaction if missing but that do not necessarily motivate employees if increased.
Motivators
In Herzberg's theory of motivating factors, job factors that cause employees to be productive and that give them satisfaction.
push strategy
Promotional strategy in which the producer uses advertising, personal selling, sales promotion, and all other promotional tools to convince wholesalers and retailers to stock and sell merchandise.
Orientation
The activity that introduces new employees to the organization; to fellow employees; to their immediate supervisors; and to the policies, practices, and objectives of the firm.
Arbitration
The agreement to bring in an impartial third party (a single arbitrator or a panel of arbitrators) to render a binding decision in a labor dispute.
Promotion Mix
The combination of promotional tools an organization uses.
Production
The creation of finished goods and services using the factors of production: land, labor, capital, entrepreneurship, and knowledge
Selection
The process of gathering information and deciding who should be hired, under legal guidelines, to serve the best interests of the individual and the organization.
Statistical Process Control (SPC)
The process of testing statistical samples of product components at each stage of the production process and plotting those results on a graph. Any variances from quality standards are recognized and can be corrected if beyond the set standards.
management development
The process of training and educating employees to become good managers and then monitoring the progress of their managerial skills over time.
sales promotion
The promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities.
Telemarking
The sale of goods and services by telephone
recruitment
The set of activities used to obtain a sufficient number of the right employees at the right time.
Formal Organization
The structure that details lines of responsibility, authority, and position; that is, the structure shown on organization charts.
Computer-Aided Design (CAD)
The use of computers in the design of products
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
Trial close
a step in the selling process that consists of a question or statement that moves the selling process toward the actual close
Job Analysis
a study of what employees do who hold various job titles
Integrated Marketing Communications (IMC)
a technique that combines all the promotional tools into one comprehensive, unified promotional strategy
Virtual Corporation
a temporary networked organization made up of replaceable firms that join and leave as needed
Strike
a union strategy in which workers refuse to go to work; the purpose is to further workers' objectives after an impasse in collective bargaining
Brand name
a word, letter, or group of words or letters that differentiates one seller's goods and services from those of competitors
Job Specifications
a written summary of the minimum qualifications required of workers to do a particular job
Union
an employee organization whose main goal is representing its members in employee-management negotiation of job-related issues
Mentor
an experienced employee who supervises, coaches, and guides lower-level employees by introducing them to the right people and generally being their organizational sponsor
Craft Union
an organization of skilled specialists in a particular craft or trade
Centralized Authority
an organization structure in which decision-making authority is maintained at the top level of management
Flat Organization Structure
an organization structure that has few layers of management and a broad span of control
Inverted Organization
an organization that has contact people at the top and the chief executive officer at the bottom of the organization chart
Gantt Chart
bar graph showing production managers what projects are being worked on and what stage they are in at any given time
Givebacks
concessions made by union members to management; gains from labor negotiations are given back to management to help employers remain competitive and thereby save jobs
intensive distribution
distribution that puts products into as many retail outlets as possible
selective distribution
distribution that sends products to only a preferred group of retailers in an area
exclusive distribution
distribution that sends products to only one retail outlet in a given geographic area
geographic segmentation
dividing a market by cities, counties, states, or regions
demographic segmentation
dividing the market by age, income, and education level
benefit segmentation
dividing the market by determining which benefits of the product to talk about
volume (or usage) segmentation
dividing the market by usage (volume of use)
Psychological segmentation
dividing the market using groups' values, attitudes, and interests
contingent workers
employees that include part-time workers, temporary workers, seasonal workers, independent contractors, interns, and co-op students
Staff Personnel
employees who advise and assist line personnel in meeting their goals
Certification
formal process whereby a union is recognized by the National Labor Relations Board (NLRB) as the bargaining agent for a group of employees
cafeteria-style fringe benefits
fringe benefits plan that allows employees to choose the benefits they want up to a certain dollar amount
Bundling
grouping two or more products together and pricing them as a unit
Cross-Functional self managed teams
groups of employees from different departments who work together on a long-term basis
Industrial Unions
labor organizations of unskilled and semiskilled workers in mass-production industries such as automobiles and mining
right-to-work laws
legislation that gives workers the right, under an open shop, to join or not join a union if it is present
penetration strategy
strategy in which a product is priced low to attract many customers and discourage competition
Scientific Management
studying workers to find the most efficient ways of doing things and then teaching people those techniques
Mass Customization
tailoring products to meet the needs of individual customers
Marketing
the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
Marketing Research
the analysis of markets to determine opportunities and challenges, and to find the information needed to make good decisions
Product mix
the combination of product lines offered by a manufacturer
ISO 9000
the common name given to quality management and assurance standards
brand loyalty
the degree to which customers are satisfied, like the brand, and are committed to further purchases
Departmentalization
the dividing of organizational functions into separate units
Purchasing
the function in a firm that searches for high-quality material resources, finds the best suppliers, and negotiates the best price for goods and services
Equity Theory
the idea that employees try to maintain equity between inputs and outputs compared to others in similar positions
Goal-setting theory
the idea that setting ambitious but attainable goals can motivate workers and improve performance if the goals are accepted, accompanied by feedback, and facilitated by organizational conditions
Chain of Command
the line of authority that moves from the top of a hierarchy to the lowest level
Real Time
the present moment or the actual time in which something takes place
Decertification
the process by which workers take away a union's right to represent them
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
environmental scanning
the process of identifying the factors that can affect marketing success
Customer Relationship Management (CRM)
the process of learning as much as possible about customers and doing everything you can to satisfy them - or even exceed their expectations - with goods and services
Facility Location
the process of selecting a geographic location for a company's operations
test marketing
the process of testing products among potential users
Statistical Quality Control (SQC)
the process some managers use to continually monitor all phases of the production process to assure that quality is being built into the product from the beginning
break-even analysis
the process used to determine profitability at various levels of sales
collective bargaining
the process whereby union and management representatives form a labor-management agreement, or contract, for workers
supply chain (value chain)
the sequence of linked activities that must be performed by various organizations to move goods from the sources of raw materials to ultimate consumers
Price leadership
the strategy by which one or more dominant firms set the pricing practices that all competitors in an industry follow
Informal Organization
the system that develops spontaneously as employees meet and form cliques, relationships, and lines of authority outside the formal organization
job simulation
the use of equipment that duplicates job conditions and tasks so trainees can learn skills before attempting them on the job
brand equity
the value of the brand name and associated symbols
Maslow's Hierarchy of Needs
theory of motivation based on unmet human needs from basic physiological needs to safety, social, and esteem needs to self-actualization needs
Reinforcement Theory
theory that positive and negative reinforcers motivate a person to behave in certain ways
Core Competencies
those functions that the organization can do as well as or better than any other organization in the world
Primary Boycott
when a union encourages both its members and the general public not to buy the products of a firm involved in a labor dispute
cooling-off period
when workers in a critical industry return to their jobs while the union and management continue negotiations
Organizational (or corporate) Culture
widely shared values within an organization that provide unity and cooperation to achieve common goals
