Business Dynamics
HR planning process
Preparing a human resource inventory of employees. Preparing a job analysis. Assessing future human resource demand. Assessing future labor supply. Establishing a strategic plan
on-the-job coaching
Refers to the training of an employee by an approved person to learn the skills necessary to complete the tasks.
Enterprise zones
Specific geographic areas to which governments try to attract private business investment by offering lower taxes and other government support
exchange rate
The measure of how much one currency is worth in relation to another.
individual
Values. Work background. Family status. Personality.
corporation bylaws
describe how the firm is to be operated from both legal and managerial points of view
job specification
describes the minimum qualifications a person must have to perform the job successfully
flexible manufacturing
designing machines to do multiple tasks so that they can produce a variety of products
one-to-one marketing
developing a unique mix of goods and services for each individual customer
small business investment company (SBIC)
government regulated investment company that borrows money from the SBA to invest in or lend to a small business Licensed by SBA
Management-top management
highest level of management, consisting of the president and other key company executives who develop strategic plans COO
Smaller community banks
more willing to lend money to smaller operations
Partnership-limited partnership
partnership in which only one partner is required to be a general partner
Partnership-General Partnership
partnership in which partners share equally in both responsibility and liability
compensation
payment includes Salary Hourly Wage/ Daywork Piecework System Commission Plan Bonus Plan Profit Sharing Plans Gain Sharing Plans Stock Options
fringe benefits
payments to employees other than wages or salary
Similar-to-me effect
perceive others who are similar to ourselves more positively than we perceive people who are different
Training and development
All attempts to improve productivity by increasing an employee's ability to perform. Training focuses on short-term skills, where as development focuses on long-term abilities.
Partnership-limited liability partnership
All partners are limited partners and not responsible for the debts and other liabilities of other partners
Trade surplus
when a country exports more than it imports
GMS-joint ventures
when two or more companies (often from different countries) join forces - sharing resources, risks, and profits, but not actually merging companies - to pursue specific opportunities Often mandated by countries as a condition of doing business (China). Can increase a company's footprint and global growth. Can be used by competing companies to join forces
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
Assembly Line Layout
workers do only a few tasks at a time
Americans with Disabilities Act of 1990
A law passed in 1990 that requires employers and public facilities to make "reasonable accommodations" for people with disabilities and prohibits discrimination against these individuals in employment.
Conventional corporation
A state-chartered legal entity with authority to act and have liability separate from its owners (its stockholders). Enables many people to share in ownership
Control system
A system in which one or more outputs are forced to change in a desired manner as time progresses. accounting and finance
protective tariffs
A tariff designed to shield domestic producers of a good or service from the competition of foreign producers
Gantt Chart
A time and activity bar chart that is used for planning, managing, and controlling major programs that have a distinct beginning and end.
S corporations
A unique creation that looks like a corporation but is taxed like sole proprietorships and partnerships. Have shareholders, directors, and employees, plus the benefit of limited liability Have no more than 100 shareholders. Have shareholders that are individuals or estates, and who (as individuals) are citizens or permanent residents of the U.S. Have only one class of stock. Derive no more than 25% of income from passive sources
business
Any activity that seeks to provide goods and services to others while operating at a profit
Management-effective management in nonprofits
Be clear about your organization's purpose. Allow all employees to work with the groups they are serving. Invest in your employees. Nonprofit work is draining
risk
Degree of uncertainty of return on an asset; in business, the likelihood of loss or reduced profit.
Small business Cons going overseas
Difficulty in finding financing. Not knowing how to get started. Not understanding cultural differences. Too much bureaucratic paperwork
Free trade Cons
Domestic workers (particularly in manufacturing-based jobs) can lose their jobs due to increased imports or production shifts to low-wage global markets. Workers may be forced to accept pay cuts from employers, who can threaten to move their jobs to lower-cost global markets. Moving operations overseas because of intense competitive pressure often means the loss of service jobs and growing numbers of white-collar jobs. Domestic companies can lose their comparative advantage when competitors build advanced production operations in low-wage countries.
Sole proprietorship Pros
Ease of starting and ending the business. Being your own boss. Pride of ownership. Leaving a legacy. Retention of company profits. No special taxes.
on-the-job training
Employee training at the place of work while he or she is doing the actual job.
executives-Humanists
European scholars, writers, and teachers associated with the study of the humanities (grammar, rhetoric, poetry, history, languages, and moral philosophy), influential in the fifteenth century and later.
executives-Culturalist
Focus on the symbolic aspect of culture
Entrepreneur cons
Freedom to fail. No paid vacations. No health insurance
Entrepreneur Pros
Freedom to succeed. Make own decisions. Possible wealth
Partnership Types
General partnership Limited partnership General partner Limited partner
venture capitalists
Individuals or companies that invest in new businesses in exchange for partial ownership of those businesses.
Management function-Controlling
Measuring results against corporate objectives. Monitoring performance relative to standards. Rewarding outstanding performance. Taking corrective action when necessary
Goals
The broad, long-term accomplishments an organization wishes to attain. Part of planning
information based sector
The new era of business is likely to be dominated by the information-based sector.
Identity theft
The obtaining of individuals' personal information, such as Social Security and credit card numbers, for illegal purposes
limited liability
The responsibility of a business's owners for losses only up to the amount they invest; limited partners and shareholders have limited liability
Kennedy's four basic rights to consumers
The right to safety. The right to be informed. The right to choose. The right to be heard
Demography
The scientific study of population characteristics.
Service sector
The sector of the economy that provides services--such as health care, banking, and education--contrast to the sector that produces goods. generated all new jobs in economy since 1980's but rate of job growth has slowed
USMCA (United States-Mexico-Canada Agreement)
This is a regional trade agreement between the United States, Canada, and Mexico that is designed to replace NAFTA. The agreement has been signed by the leaders of all three countries, but at the time of publication has not yet been ratified by the legislatures of those countries.
Ethics-Steps to improve business ethics
Top management must adopt and unconditionally support an explicit corporate code of conduct. Employees must understand that senior management expects all employees to act ethically. Managers and others must be trained to consider the ethical implications of all business decisions. An ethics office must be set up with which employees can communicate anonymously. Involve outsiders such as suppliers, subcontractors, distributors, and customers. The ethics code must be enforced with timely action if any rules are broken.
Management skills for each level
Top managers require mostly conceptual skills, followed by HR skills and technical skills. Middle managers require conceptual, HR, and technical skills in equal parts. First-line managers require mostly technical skills, followed by HR skills and conceptual skills
organizational
Top-level management philosophy. Firm's reward system. Job dimensions.
Managers practice the art of getting things done using organizational resources such as
Workers, information and equipment
Telecommuting
Working at home by using a computer terminal electronically linked to one's place of employment.
Entrepreneur-reasons to be an entrepreneur
You have potential for long-term returns! You don't have a mortgage or kids to take care of. You can survive on little funds and work long hours. No disruption to your career path. It hasn't started yet! You're more adaptable and have higher risk tolerance at a younger age Opportunity. Profit. Independence. Challenge
Corporate Social Responsibility (CSR)
a business's concern for society's welfare
foreign subsidiary
a company owned in a foreign country by another company, called the parent company
Business plan
a formal written document that describes the nature of a business and how it will operate Cover Letter. Section 1—Executive Summary. Section 2—Company Background. Section 3—Management Team. Section 4—Financial Plan. Section 5—Capital Required. Section 6—Marketing Plan. Section 7—Location Analysis. Section 8—Manufacturing Plan. Section 9—Appendix Describes all aspects of the business, including product, the target market...
job rotation
a job enrichment strategy that involves moving employees from one job to another
fixed position layout
a layout that brings all resources required to create the product to a central location
process layout
a layout that organizes the transformation process into departments that group related processes
participative/democratic leadership
a leadership style in which the leader offers advice but also participates in the team dynamics and seeks input from other team members
Insourcing
a practice in which a company contracts with a specialist firm to handle all or part of its supply chain operations helps offset the number of jobs being outsourced
continuous process
a production process in which long production runs turn out finished goods over time
job description
a written description of the basic tasks, duties, and responsibilities required of an employee holding a particular job
executives-Politicist
adept at politics
customers-external customers
dealers, who buy products to sell to others, and ultimate customers (or end users), who buy products for their own personal use
Foreign Corrupt Practices Act
deals with bribery to obtain business
Empowerment
delegation of authority to solve customers' problems quickly—usually by the first person the customer notifies regarding a problem
GATT (General Agreement on Tariffs and Trade)
international agreement first signed in 1947 aimed at lowering trade barriers
C The attributes of a conventional corporation include that
it is state chartered it is a legal entity corporate liability is separate from owners
autocratic leadership
leadership style that involves making managerial decisions without consulting others
free-rein leadership
leadership style that involves managers setting objectives and employees being relatively free to do whatever it takes to accomplish those objectives
export assistance centers
provide hands-on exporting assistance and trade-finance support for small and medium-sized businesses that wish to directly export goods and services
crowdfunding
raising money for a project or venture by obtaining many small amounts of money from many people
Intrapreneur
someone who works inside an existing organization who sees an opportunity for a product or service and mobilizes the organization's resources to try to realize it
Planning types
strategic, tactical, operational, contingency
Department of Commerce Bureau of Industry and Security
support companies to ship globally
revenue tariffs
taxes designed to raise funds for the importing government
modular layout
teams of workers combine to produce more complex units of the final product
Process manufacturing
that part of the production process that physically or chemically changes materials
Assembly process
that part of the production process that puts together components
skills-conceptual skills
the ability to analyze and diagnose a situation and to distinguish between cause and effect
comparative advantage
the ability to produce a good at a lower opportunity cost than another producer
absolute advantage
the ability to produce a good using fewer inputs than another producer
ethnocentricity
the belief in the inherent superiority of one's own group and culture
Social progress
the belief that society will continually improve through human initiative needs the right business environment
e-commerce
the buying and selling of goods over the internet
acquisition
the buying of a whole company, a patent, or a license to produce someone else's product
merger-horizontal merger
the combination of two or more firms competing in the same market with the same good or service
merger-vertical merger
the combination of two or more firms involved in different stages of producing the same good or service
ISO 9001
the common name given to quality management and assurance standards
Ultimate Resource
the company's people
quality of life
the degree of overall satisfaction that a person gets from life
Standard of living
the degree of wealth and material comfort available to a person or community.
Balance of trade
the difference between a country's total exports and total imports
balance of payments
the difference between the flow of money into and out of a country
corporate philanthropy
the dimension of social responsibility that includes charitable donations
corporate responsibility
the dimension of social responsibility that includes everything from hiring minority workers to making safe products
corporate policy
the dimension of social responsibility that refers to the position a firm takes on social and political issues
Company Transparency
the process of being open, honest, and straightforward about various company operations
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
Planning-Strategic Planning
the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities
Planning-tactical planning
the process of developing detailed, short-term statements about what is to be done, who is to do it, and how it is to be done
Niche marketing
the process of finding small but profitable market segments and designing or finding products for them
Job Analysis
the process of getting detailed information about jobs
orientation
the process of introducing newly hired employees to their new workplace
Planning-contingency planning
the process of preparing alternative courses of action that may be used if the primary plans don't achieve the organization's objectives
facility location
the process of selecting a geographic location for a company's operations
Planning-operational planning
the process of setting work standards and schedules necessary to implement the company's tactical objectives daily tasks and decisions
Efficiency
producing goods and services using the least amount of resources
GMS-exporting
producing goods in one country and selling them in another
apprenticeships/internships
programs in which students split their time among working at a company, taking career-related classes, and doing regular academic coursework
market
a group of buyers and sellers of a particular good or service
franchise agreement
an arrangement whereby someone with a good idea for a business sells the rights to use the business name and sell a product or service to others in a given territory
job sharing plans
an arrangement whereby two part-time employees share one full-time job
Industrial robots
devices that can be programmed to perform many industrial tasks that are dangerous or difficult for humans to perform consistently work 24 hours a day, seven days a week with great precision/accuracy
Management function-Planning
Setting organizational goals. Developing strategies to reach those goals. Determining resources needed. Setting precise standards
GMS-Joint venture benefits
Shared technology and risk. Shared marketing and management expertise. Entry into markets where foreign companies are often not allowed unless goods are produced locally.
Watchdogs-5 types
Socially conscious investors. Socially conscious research organizations. Environmentalists. Union officials. Customers
Objectives
Specific, short-term statements detailing how to achieve the organization's goals. Part of planning
quality
consistently producing what the customer wants while reducing errors before and after delivery to the customer
Sarbanes-Oxley Act
protects employees of publicly traded companies who provide evidence of fraud to investigators
Outsourcing
A decision by a corporation to turn over much of the responsibility for production to independent suppliers. low wage employees
Small Business Administration (SBA)
A U.S. government agency that advises and assists small businesses by providing management training and financial advice and loans. Standard (7a) loans. Microloans SBA Express. Export Express. International trade loans. Community Adjustment and Investment Program (CAIP). 504 certified development company (CDC) loans. CAP Line loans.
Partnership
A business in which two or more persons combine their assets and skills
Sole Proprietorship
A business owned by one person
Corporation
A business owned by stockholders who share in its profits but are not personally responsible for its debts
non-profit organization
A business whose goal is to provide a service rather than to make a profit, such as the American Red Cross.
ISO 14001
A collection of the best practices for managing an organization's impact on the environment.
GMS-franchising
A contractual agreement between a franchisor and a franchisee that allows the franchisee to operate a business using a name and format developed and supported by the franchisor.
home-based work
- Home-based work has increased dramatically over the past decades. - Home-based work used to involve piecework, sewing, or flower making. - This mode of home production is declining due to competition from lowwage workers overseas. - Telecommuting is much more common now than ever.
Age Discrimination in Employment Act
1967 law that prohibits discrimination of employees 40 years and up.
Partner-General Partner
An owner (partner) who has unlimited liability and is active in managing the firm.
GMS-strategic alliance
A long-term partnership between two or more companies established to help each company build competitive market advantages They don't typically share costs, risks, management, or profits. Strategic alliances provide broad access to markets, capital, and technical expertise.
Staffing
A management function that includes hiring, motivating, and retaining the best people available to accomplish the company's objectives
exit interview
A meeting of a departing employee with the employee's supervisor and/or a human resource specialist to discuss the employee's reasons for leaving.
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.
Partnership-Master Limited Partnership (MLP)
A partnership that looks much like a corporation (in that it acts like a corporation and is traded on a stock exchange) but is taxed like a partnership and thus avoids the corporate income tax.
shareholder
A person who invests in a corporation by buying stock and is a partial owner Cannot be a shareholder if not a citizen
Networking
A way of making and using contacts to get job information and advice
GMS-Soveirgn wealth funds
Achieving geopolitical objectives. Gaining control of strategic natural resources. Obtaining sensitive technologies
services
Actions or activities that one person performs for another
Stakeholders
All the people who stand to gain or lose by the policies and activities of a business and whose concerns the business needs to address.
Management function-Organizing
Allocating resources, assigning tasks, and establishing procedures for accomplishing goals. Preparing a structure (organization chart) showing lines of authority and responsibility. Recruiting, selecting, training, and developing employees. Placing employees where they'll be most effective Designs the structures and systems in which everyone works together to achieve the organization's goals and objectives
NAFTA (North American Free Trade Agreement)
Allows open trade between the US, Mexico, and Canada.
Circular Economy
An economy model in which resources remain in use for as long as possible, from which maximum value is extracted while in use, and the products and materials are recovered and regenerated at the end of the product life cycle.
Database
An electronic storage file for information Creates efficiency in that the store can quickly replenish items that are purchased
performance appraisal
An evaluation that measures employee performance against established standards in order to make decisions about promotions, compensation, training or termination. Used to identify training needs. Use as a promotion tool. Recognize worker's achievements. Evaluate the firm's hiring process. Judge the effectiveness of the firm's orientation process. Use as a basis for possible termination of a worker.
Trade deficit
An excess of imports over exports
GMS-multinational corporation
An organization that manufactures and markets products in many different countries and has multinational stock ownership and multinational management
Merger
Combination of two or more companies into a single firm
Baldrige awards
Companies can apply for awards in these areas: * Manufacturing *services *small businesses *nonprofit/government *education *health care
Environment
Competition. Economic conditions. Social/cultural institutions.
Management function-Leading
Guiding and motivating employees to work effectively to accomplish organizational goals and objectives. Giving assignments. Explaining routines. Clarifying policies. Providing feedback on performance
mentors
Higher-level managers who help ensure that high-potential people are introduced to top management and socialized into the norms and values of the organization.
Management-factors influencing managerial ethics
Individual, Organizational, Environment
Corporation disadvantages
Initial cost. Extensive paperwork. Double taxation. Two tax returns. Size. Difficulty of termination. Possible conflict with stockholders and board of directors
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.
Management-Operations management
Inventory management. Quality control. Production scheduling. Follow-up services Facility location setting up good experience for others
GMS-foreign direct investment
Investment made by a foreign company in the economy of another country.
Ethical dilemmas
Is my proposed action legal? Is it balanced? How will it make me feel about myself?
Idea-An idea is a good opportunity if
It fills customers' needs. You have the skills and resources to start a business. You can sell the product or service at a reasonable price and profit. You can get your product or service to customers before the window of opportunity closes. You can keep the business going
job sharing pros
It provides employment opportunities for many people who cannot work full-time. Workers tend to be enthusiastic and productive. Absenteeism and tardiness are reduced. Employers can schedule part-time workers in peak demand periods. Experienced (retirement age) are retained.
goods
Items purchased to satisfy needs and wants
Outsourcing Cons
Jobs may be lost permanently and wages fall due to low-cost competition offshore. Offshore outsourcing may reduce product quality and can therefore cause permanent damage to a company's reputation. Communication among company members, with suppliers, and with customers becomes much more difficult.
limited liabilty company
LLCs are similar to an S corporation but without the special eligibility requirements. More than half of new business registrations in some states are LLCs.
Production
Land, labor, capital, entrepreneurship, and knowledge adds value, or utility, to materials or processes
Franchise Cons
Large start-up costs. Shared profit. Management regulation. Coattail effects. Restrictions on selling. Fraudulent franchisors
Outsourcing Pros
Less-strategic tasks can be outsourced globally so that companies can focus on areas in which they can excel and grow. Outsourced work allows companies to create efficiencies that in fact let them hire more workers. Consumers benefit from lower prices generated by effective use of global resources and developing nations grow, thus fueling global economic growth.
Corporation advantages
Limited liability. Ability to raise more money for investment. Size. Perpetual life. Ease of ownership change. Ease of attracting talented employees. Separation of ownership from management
LLC's Pros
Limited liability. Choice of taxation. Flexible ownership rules. Flexible distribution of profits and losses. Operating flexibility.
Franchise Pros
Management and marketing assistance. Personal ownership. Nationally recognized name. Financial advice and assistance. Lower failure rate
Partnership pros
More financial resources. Shared management and pooled/complementary skills and knowledge. Longer survival. No special taxes
job sharing cons
Need to hire, train, motivate, and supervise at least twice as many people. Prorate some fringe benefits
LLC's Cons
No stock; ownership is nontransferable. Fewer incentives. Taxes. Paperwork
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
cooperatives (co-ops)
Organizations composed of individuals or small businesses that have banded together to reap the benefits of belonging to a larger organization Serve one billion members worldwide. Members democratically control the business by electing a board of directors that hires professional management. Other cooperatives are formed to give members more economic power as a group than they have as individuals, such as a farm cooperative wholesale rates
Small business Pros going overseas
Overseas buyers enjoy dealing with individuals. They can usually begin shipping much faster. They provide a wide variety of suppliers. They can give more personal service and attention
executives-Rationalists
People who looked at the world in a rational, or reasonable and logical, way
service industries must
Provide customers with quality care and attention. Maintain close relationships with suppliers. Practice continuous improvement.
Executives-4 types
Rationalist, Humanist, Politicist, Culturist
Entrepreneur-What does it take to be an entrepreneur?
Self-directed. Self-nurturing. Action-oriented. Highly energetic. Tolerant of uncertainty
dumping
Selling goods in another country below market prices
Control process
Step 1: Establish clear standards Step 2: Monitor and record performance Step 3: Compare results against standards Step 4: Communicate results Step 5: If needed, take corrective action
GMS-Joint venture drawbacks
Stolen or obsolete technology. Becoming too large to be flexible. One partner might break ties.
1972 Equal Employment Opportunity Act (EEOA)
Strengthened the Equal Employment Opportunity Commission (EEOC). Gave EEOC the right to issue workplace guidelines for acceptable employer conduct. EEOC could mandate specific recordkeeping procedures. EEOC was vested with the power of enforcement.
tariffs
Taxes on imported goods
profit
The financial gain made in a transaction
factors of production
The five resources used to create wealth: Land (or natural resources). Labor (workers). Capital. The most important in the creation of wealth: Entrepreneurship. Knowledge
purchasing
The function in a firm that searches for quality material resources, finds the best suppliers, and negotiates the best price for goods and services. Companies may use one supplier or many. The Internet has transformed purchasing
Free trade Pros
The global market contains over 7.7 billion potential customers for goods and services. Productivity grows when countries produce goods and services in which they have a comparative advantage. Global competition and less-costly imports keep prices down, so inflation does not curtail economic growth. Free trade inspires innovation for new products and keeps firms competitively challenged. Uninterrupted flow of capital gives countries access to foreign investments, which help keep interest rates low.
ethics in business
The process of applying a set of values concerning right and wrong to a business context, including the various moral and ethical problems that can arise in a business setting, and duties and obligations of those who engage in commerce.
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.
computer-integrated manufacturing (CIM)
The uniting of computer-aided design with computer-aided manufacturing.
Sole proprietorship Cons
Unlimited liability — Limited financial resources. Management difficulties. Overwhelming time commitment. Few fringe benefits. Limited growth. Limited life span
Partnership cons
Unlimited liability. Division of profits. Disagreements among partners. Difficulty of termination
PMI
Used to evaluate several possible solutions to a specific problem their company is facing
management-First line manager
a manager who coordinates and supervises the activities of operating employees evaluates daily performances of workers
Material Requirements Planning (MRP)
a planning system that schedules the precise quantity of materials needed to make the product
intermittent process
a production process in which the production run is short and the machines are changed frequently to make different products Used in most manufacturing facilities today
Six Sigma Quality
a quality measure that allows only 3.4 defects per million opportunities
Ethical dilemma
a situation where you must choose between equally unsatisfactory alternatives
mission statement
a statement of the organization's purpose - what it wants to accomplish in the larger environment should address the nature of the product or service, the customer needs, and the organization's self concept
mass customization
a strategy that uses technology to deliver customized services on a mass basis
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
Insurance agent
a valuable source of information regarding techniques to reduce a firms exposure to risk
Halo/Horn Effect
allowing performances in specific areas to unfairly influence overall performance evaluation
Service Corps of Retired Executives (SCORE)
an SBA office with volunteers from industry, trade associations, and education who counsel small businesses at no cost (except for expenses)
Leveraged Buyout (LBO)
an attempt by employees, management, or a group of investors to purchase an organization primarily through borrowing
Vision
an encompassing explanation of why the organization exists and where it's trying to head Part of planning
Small businesses and reasons for failure
an independently owned business that usually has the owner as its manager Managerial incompetence. Inadequate financial planning. Choosing the wrong type of business
embargo
an official ban on trade or other commercial activity with a particular country.
Partner-limited partner
an owner who invests money in the business but does not have any management responsibility or liability for losses beyond the investment
insider trading
an unethical activity in which insiders use private company information to further their own fortunes or those of their family and friends New Supreme Court ruling makes even those who share insider information without profiting guilty Regulation FD
Leadership Styles
autocratic, participative/democratic, free-rein
Countertrading
bartering goods for goods
B2B
business to business Type of e-commerce
B2C
business to consumer Type of e-commerce
importing
buying products from another country
Incubators
centers that offer new businesses low-cost offices with basic business services
High tax rate
discourages entrepreneurship
contingent workers
employees that include part-time workers, temporary workers, seasonal workers, independent contractors, interns, and co-op students
corporate social initiatives
enhanced forms of corporate philanthropy directly related to the company's competencies Companies commit resources and expertise toward helping in broad-based humanitarian issues
Micropreneurs
entrepreneurs willing to accept the risk of starting and managing the type of business that remains small, lets them do the kind of work they want to do, and offers them a balanced lifestyle
ethics-integrity-based ethics codes
ethical standards that define the organization's guiding values, create an environment that supports ethically sound behavior, and stress a shared accountability among employees
ethics-compliance-based ethics codes
ethical standards that emphasize preventing unlawful behavior by increasing control and by penalizing wrongdoers
contrast effect
evaluation of a person's characteristics that is affected by comparisons with other people recently encountered who rank higher or lower on the same characteristics
Entrpreneurial team
experienced professionals from different areas of business
Management-knowledge management
finding the right information, keeping the information in a readily accessible place, and making the information known to everyone in the firm
Watchdogs
groups that monitor government activity and educate the public on various aspects of the political process, including candidate compliance with campaign finance laws, policy proposals and legislative voting behavior, and bureaucratic implementation of public policy.
revenue
income
customers-Internal customers
individuals and units within the firm that receive services from other individuals or units
Angel investors
individuals who invest in start-up companies with high growth potential in exchange for a share of ownership
sociocultural forces
influences and trends originating in a country's, a society's, or a culture's human relationships and values that may affect an organization
Whistleblowers
insiders who report illegal or unethical behavior Dodd-Frank Wall Street Reform and Consumer Protection Act make them receive up to 30% of the penalty funds that exceeds 1 million that the courts recover from companies proven to be in violation
Global market Strategies
licensing, exporting, franchising, contract manufacturing, international joint ventures and strategic alliances, foreign direct investment. multinational corporation, sovereign wealth funds
import quotas
limitations set by a government on the amount of a product allowed to enter or leave a country
Devaluation
lowering the value of a nation's currency relative to other currencies
off-the-job courses and training
managers periodically go to classes or seminars for a week or more to hone technical and human relations skills
Management-Supervisory Management
managers who are directly responsible for supervising workers and evaluating their daily performance
Directing
motivating and leading employees to achieve organizational objectives giving explicit instructions to workers, telling them what to do to meet the goals and objectives of the organization
Farm cooperative
organization in which farmers share in growing and selling farm products
Civil Rights Act of 1964
outlawed discrimination based on race, color, religion, sex, or national origin
Own stocks in company makes you an...
owner of the company
Organizations-All organizations require the following
planning information management capital
Management-4 functions of management
planning, organizing, leading, controlling
GMS-contract manufacturing
private label manufacturing by a foreign company Experiment in a new market without incurring heavy start-up costs Temporarily meet an unexpected increase in orders.
Understudy positions
selected employees work as assistants to higher-level managers and participate in planning and other managerial functions until they are ready to assume such positions themselves
exporting
selling products to another country
skills-human relations skills
skills that involve communication and motivation; they enable managers to work through and with people
skills-Technical skills
skills that involve the ability to perform tasks in a specific discipline or department
merger-conglomerate merger
the joining of firms in completely unrelated industries
GMS-Licensing
the legal process whereby a licensor allows another firm to use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge gives a firm the right to manufacture another firm's product or use its trademark for a royalty fee
Management-middle management
the level of management that includes general managers, division managers, and branch and plant managers who are responsible for tactical planning and controlling
WTO (World Trade Organization)
the only international body dealing with the rules of trade between nations
facility layout
the physical arrangement of resources (including people) in the production process
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
recruitment
the process through which the organization seeks applicants for potential employment
Management
the process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other organizational resources.
lean manufacturing
the production of goods using less of everything compared to mass production Take less human effort. Take less manufacturing space. Require less investment in tools. Require less engineering time to develop a new product
Cybersecurity
the state of being protected against the criminal or unauthorized use of electronic data, or the measures taken to achieve this. will continue growing to both business and consumer
Corporate values
the stated and lived values of a company Learned by observing the actions of others in the organization
business environment
the surrounding factors that either help or hinder the development of businesses Economic and legal environment. Technological environment. Competitive environment. Social environment. Global business environment
Management-Production management
the term used to describe all the activities managers do to help their firms create goods
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
job simulation
the use of equipment that duplicates job conditions and tasks so trainees can learn skills before attempting them on the job
trade protectionism
the use of government regulations to limit the import of goods and services
Form utility
the value producers add to materials in the creation of finished goods and services
CAFTA (Central American Free Trade Agreement)
trade agreement between US and Central American countries to reduce tariffs and increase trade
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