MGMT 1 Final

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CFO

(Chief Financial Officer)

2000s

-Business intelligence (BI) or analytics: use of data analytic tools to analyze organization's raw data and derive useful insights from them; focus on what's important, such as deciding how to react to problems and opportunities -Knowledge sharing important to keep pace with change

Product development

-Deciding what to buy and whom to buy it from, consumers perform cost/benefit analyses -Can't just come up with one group of products or menu items or destinations one time - needs to be ongoing process -Marketers need to think like consumers in assessing value - not value to marketer but to consumer

Marketing research process

-Defining problem or opportunity and determining present situation --Guardians, defender, challenges -Collecting research data --Secondary data, primary data --Conduct informal consumer surveys. Focus groups, competitor's customer, survey salesforce, become "phantom" customer, best media analytics -Analyzing data --Marketers turn data into useful information through careful, honest interpretation -Choosing best solution and implementing it --Marketers use analysis to plan strategies and make recommendations --Marketers evaluate actions and determine if further research needed

Social media analytics

-Drop an Asset - one sheet, trailer , interview: listen - Goal = Engage Consumer & Develop Insight: theme -Incorporate Themes into Marketing Messages -Identify Super Fans and Influencers --Feed Special / Unique Content to Amplify Messages & Unique Content --Issue of "Sponsored" Content

Obtaining short-term financing:

-Family and friends: --Agree specific loan terms --Put agreement in writing --Arrange repayment some way they would for bank loan -Commercial banks: banks generally prefer to lend short-term money to larger, established businesses; bank loans virtually disappear, -Secured loan: backed by collateral; issued with some form of collateral -Unsecured loan: doesn't require any collateral Line of credit: given amount of unsecured short-term funds bank will lend, provide funds are readily available -Commercial finance companies: non-deposit-type organizations that make short-term loans to borrowers who offer tangible assets (property, plant, equipment) as collateral -Factoring: process of selling accounts receivable for cash -Factors (market intermediaries): charge more than banks, but many small businesses don't qualify for loans -Commercial paper unsecured promissory notes, in amounts of $100000+ come out due to 270 days or less; only financially stable firms can sell it -Credit cards: estimated one-third of small firms use credit cards to finance business; convenient but costly for small businesses -Benefits: --Required buy certain goods or rent a car --Helps keep track of purchases --More convenient than cash or checks --Paying off credit card balances on time can improve credit score Cons: --Too easy buy items no otherwise buy --Debt pile up --Hacking and credit card fraud

Key Dodd-Frank provisions:

-Gave government power to seize and shutter large financial institutions on verge of collapse -Put derivatives and complicated financial deals (including those that packaged subprime mortgages) under strict government oversight -Required hedge funds to register with SEC and provide information about trades and portfolio holdings -Created Consumer Financial Protection Bureau to watch over interests of American consumers by reviewing and enforcing federal financial laws

Six rules for branding:

-Keep it simple -Don't just improve, reinvent your sector -Embrace big ideas -Use strong symbols for customers to easily identify -Give customers reason to seek out your company -Communicate regularly with your customer base

Sarbanes-Oxley Act:

-Prohibits accounting firms from providing certain non-auditing work to companies they audit -Strengthens protection for whistleblowers who report wrongful actions of company officers -Requires company CEOs and CFOs to certify accuracy of financial report and imparts strict penalties for any violation of securities reporting -Prohibits corporate loans to directors and executives of company -Establishes five-ember Public Company Accounting Oversight Board (PCAOB) under Securities and Exchange Commission (SEC) to oversee accounting industry --Public company accounting oversight board (PCAOB): non-profit organization that regulates audits of publicly traded companies to minimize audit risk. --Securities and exchange commission (SEC): U.S. government agency created by Congress to regulate the securities markets and protect investors -Stipulates that altering or destroying key audit documents will result in felony charges and significant criminal penalties

Bringing manufacturing back to U.S. easier said than done

1. Modern products require high degrees of specialization 2. Scaling up production requires unique skills 3. Manufacturers want maximize utilize plant and equipment 4. Rise of lean production and "inventory is evil" 5. Relentless drive to reduce costs

Information technology (IT)

1980s, technology used to store, retrieve, and send information effectively; business deliver goods and services whenever and wherever customer wants them; broke time and location barriers, created new organizations and services that are independent of location; electronic communications provide substantial time savings

Robotics

24 hours manufacturing, great precision, improve productivity, reduce number jobs for humans, service business also, repetitive tasks, efficient

Retailing

3.7 million retail stores in U.S.; U.S. employ more than 42 million people and operate under many different structures; organization that sells ultimate consumers

Pricing objective

Achieving target return on investment of profit Building traffic Achieving greater market share Creating image Furthering social objectives, both short-run and long-run

Market research benefits:

Analyze customer needs and satisfaction Analyze current markets and opportunities Analyze effectiveness of marketing strategies Analyze marketing process and testing currently used Analyze reasons for goal achievement or failure

Business-to-business advertising

B2B sales channel

Grove's basic production requirements:

Build and deliver products in response to demands of customer at scheduled delivery time Provide acceptable quality level Provide everything at lowest possible cost

How to keep loyal customers

Build trust Be open about mistakes: service recovery Listen Promise only what you can deliver Show appreciation Remember employees customers too

How to bring new products to market

Build up slowly: when starting up, don't go too fast Design for single function: pick one function and make it best you can Package it perfectly: "unboxing" your new buy is est part, exciting to open Become status symbol: make it something to show off

Types of informations:

Business process information Physical-world observations Biological data Public data Date that indicate personal preferences of intentions

CFP

Certified Financial Planner

CFA

Chartered Financial analyst

Obtaining long-term financing:

Debt financing: long-term financing loans generally come due with 3 or 7 years but may extend to 15 or 20 years Term-long agreement: promissory note that requires borrower to repay loan in specified installments risk/return trade-off: principle that greater risk lender takes in making loan, higher interest rate required Issuing bonds: like IOU with promise to repay amount borrowed, with interest , on certain data Unsecured (debenture) bonds: backed only by reputation of issuer Venture capital: money invested in new or emerging companies that are perceived as having great profit potential Leverage: raising needed funds through borrowing to nice rae firm's rate of return; increases risk but enhances firm's ability to increase profits Cost of capital: rate of return company must earn inorder to meet demands of its lenders and expectations of equity holders

6 D's of exponentials

Digitization Deception Disruption Democratization Dematerialisation Democratization

Social listening

Drop asset - one sheet, trailer, interview Goal- engage consumer & develop insight Incorporate themes into marketing messages Identify super fans and influencers -Feed special/unique content to amplify messages and unique content -Issue of "sponsored" content

Corporate funds

Fund sponsored by an employer to provide benefits for its employees or the employees of an associated employer and which is not a Public Sector Fund, an Industry Fund, a Retail Fund or a Service Provider Fund.

Nonprofit marketing:

Fundraising Obtaining resources Promoting their message Attracting new members Creating awareness of social issues

Promotional campaign:

Get to know customer base Post something new every day Develop fun, suitable hashtags Use publishing calendar Engage with customers tough contests and entertainment Follow back and reply to commenters Get familiar with new site features Measure effectiveness of posts

Stock quotations:

Highest and lowest price for day High and low over past 52 weeks Dividend paid Dividend yield Ratios such as pice/earnings ratio Earnings per share Numbers of shares traded

Roth IRA

IRA where you don't get upfront deductions on your taxes, but earnings grow tax-free and are tax-free when they are withdrawn

Promotional campaign steps:

Identify target market Define objectives for each element of promotion mix Determine promotional budget develop unifying message Implement plan Evaluate effectiveness

Production process:

Inputs: land, labor, capital, entrepreneurship, knowledge Production control: planning, routing, scheduling, dispatching, follow-up Outputs: goods, services, ideas

Choose right investment strategy

Investment risk Yield Duration Liquidity Tax consequences Take investing class Attend conference Read investing books Consult with experts Have diversification plan Look stock histories

Start-up capital:

Join crowdfunding site Seek out microfiancing Use asset-based lending or factoring Sweet-talk vendors you want to do business with Ask family an friends to invest

U.S. maintain competitiveness

Latest Production techniques Focus customers Close relationships with suppliers Continuous improvement Computer-aided design and manufacturing Flexible manufacturing Lean manufacturing Mass customization Robotics 3D printing

6 Ms

Mission, market, message, media, money, measurement

Tax deduction for homeowners:

Mortgage interest Real estate/property taxes Mortgage insurance Mortgage points Home offices Medically required home improvements

New product potential

NFT's metaverse, customized/personalized products

fAil to raise capital:

No formalized business pan to show need or plan for returning on investment Company does not know how much to request from lender Company poor credit Company whether overruled or undervalued Management unrealistic growth

New product development

Odds new product will fail high

Online broker:

Online trading services, such as TD Ameritrade, E*trade, and Fidelity, offer securities trading services online to buy and sell stocks and bonds Charge much lower trading fees

Health insurance:

Patient Protection and Affordable Care Act (PPACA) requires nonexempt individuals to maintain minimum level of health insurance Popular health savings account (HSA)

Types of social commerce:

Peer-to-peer sales platforms Social network shops and shopping apps Group buying and daily deals Peer recommendations User-curated shopping crowdfunding/crowdsourcing Social shopping

Margin

Portion of stock's purchase price that investor must pay with their own money

Television advertising

TV advertising expensive but still dominant medium; DVRs and on-demand services challenge TB advertising because viewers can skip ads

Control assets:

Take inventory of financial assets Keep track of all expenses keep track all expenses Prepare budget Pay off debts Start saving plan Borrow only to buy assets that increases in value or generate income

Demand-based pricing:

Target costing: designing product that it satisfies customers and meets profit margins desired by firm

Privacy issues

U.S. companies legally scan employees' email; hackers read messages; personal information stored on Internet

Securities and exchange commission (SEC)

U.S. government agency created by Congress to regulate the securities markets and protect investors; federal agency that has responsibility for regulating various exchanges Created in 1934 through securities and exchange act

ICANN

U.S. government gave away ownership in 2016, entirely private entity

S dutt and applications stored at offsite data centers accessed over internet

Wholly behind firewall Run on remote computer Hybrid clouds consist of private clouds for essential tasks, but use public cloud as needed

1990s

World Wide Web chang how interact with one another and information New way access indiana Bluetooth technology create conveniences by providing wireless communication system

business model

a design for the successful operation of a business, identifying revenue sources, customer base, products, and details of financing.

treasury bond

a government bond issued by the US Treasury.

treasury note

a note issued by the US Treasury for use as currency.

municipal bond

a security issued by or on behalf of a local authority.

treasury bill

a short-dated government security, yielding no interest but issued at a discount on its redemption price

Sovereign funds

a state-owned investment fund comprised of money generated by the government, often derived from a country's surplus reserves

Cloud networking

accessing networking resources from centralized thief-party provider using WAN; cloud-based networking

Tax accountant

accountant trained in tax law and responsible for preparing tax returns or developing tax strategies

Certified public accountant (CPA)

accountant who passes series of examinations established by American Institute of Certified Public Accountants (AICPA)

Private accountant

accountants who work for a single organization within its internal finance department; accountant who works for single firm, government agency, or nonprofit organization

Financial accounting

accounting information and analyses prepared for people outside organization

Government and non-for-profit accounting

accounting system for organizations whose purpose is not generating profit but serving ratepayers, taxpayers, and others according to duly approves budget

managerial accounting

accounting used to provide information and analysis to managers within organization to assist them in decision making Costs of production Costs of marketing Preparation and control of budgets Minimizing tax liabilities

Retained earnings

accumulated earnings from firm's profitable operations that were reinvested in business and not paid out to stockholders in dividends

Stock splits

action by company that gives stockholders two or more shares of stock for each one they own Cause no change in firm's ownership structure and no immediate change in investment's value Firms ca nnever be forced to split stocks

Marketing

activity, set of institutions and processes for creating, communicating, delivering, and exchange offering with value for customers, clients, partners, and society at large Websites help buyers find best price, identify product features, and question sellers Blogs and social networking sites that cultivate consumer relationships

Marketing concept era

after WWII, consumer spending boom developed; businesses knew needed to be responsive to customers if they wanted their business Customer orientation: finding out what customers want and then providing it Service orientation: making sure everyone in organization committed to customer satisfaction Profit orientation: focusing on goods and services that will earn most profit

Promissory note

agreement with promise to pay supplier specific sum of money at definite time

Total fixed costs

all expenses that remain same no matter how many products made or sold

Business-to-business (B2B) market

all 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; products often sold and resold several times before reaching final consumers Manufacturer, retailers, hospitals, schools, nonprofits, government

Consumer market

all individuals or households that want goods and services for personal consumption or use; size and diversity of consumer market forces marketers to decide which groups they want to serve

Promotion

all techniques sellers use to inform people about and motivate them to buy their products or services Advertising, personal selling, public relations, publicity, word of mouth, sales promotions

Convertible bonds

allow bondholders to convert their bonds into shares of common stock

Social media

allows businesses to get exposure and collaborate with consumers on product development, service enhancement. Promotion

Fixed-position layout

allows workers to congregate around product

Owners' equity

amount of business that belongs to owners minus any liabilities owned businesses

Baldrige awards

an award established by the U.S. Congress in 1987 to raise awareness of quality management and recognize U.S. companies that have implemented successful quality management systems

Marketing research

analysis of markets to determine opportunities and challenges, and to find information needed to make good decisions Research used to identify products consumers have used in past and what want in future Research uncovers business trends, ecological impact of decision global trends, more

Direct marketing

any activity that directly links manufacturers or intermediaries with ultimate customers

Publicity

any information about individual, product, or organization that's distributed to public through media and that's not paid for or controlled by seller Advantages: -Third party remarks very credible for consumers -Lower cost vs. advertising for similar exposure -Digital greatly expands opportunities and demand -Expand coverage by leverage their base Disadvantages: -No control over whether media will use story or when they may release it -It can be good or bad -Results unpredictable -News travels fast - hard to respond -Once story has been run, it is not likely to run again Era fake news

NFT

anything digital, art, drawing, music, twt, videos, GIFs

Online advertising

appear on computers as people visit different websites; online ads attempts to get potential customers to website to learn about product

Emerging mobile/on-demand marketing era

as digital technology continues to grow, consumer demands expected to rise Now - customers want to interact anywhere Can I? - they want to use information in new ways that create value for them For me - consumers expect personalized experiences Simple - consumers expect all interactions to be easy

Ratio analysis

assessment of firm's financial condition using calculations and interpretations of financial ratios developed from firm's financial statements Liquidity ratios Leverage (debt) ratios Profitability (performance) ratio Activity ratios

Fixed assets

assets that are relatively permanent, such as land, building, equipment

Packaging functions

attracts customer attention, offer protection (during transportation, handinglin and storage), offers protection from theft (UPC, RFID), explains benefits, expresses warnings, meets government and seller requirements

Financial managers

auditing, managing taxes, advising top management on financial matters, collecting funds (credit management), controlling funds (funds management), obtaining funds, budgeting, planning Issues: market unpredictability, interest rates, cyberthreats, financial regulations from government, volatility of dollar, foreign competition, environment regulations What are the organization's long-term goals and objectives? What funds do we need to achieve a firm's long-term goals and objectives? What sources of long-term funding (capital) are available, and which will best fit our needs?

Other insurance

automobile insurance and liability insurance

Dow Jones Industrial Average (the Dow)

average cost of 30 selected industrial stocks, used to give indication of direction of stock market over time Critics say Dow too small and suggest S&P 500 (400 industrial, 40 financial, 40 public utility, 20 transportation stocks)

Secured bonds

backed by collateral such as land or equipment

Secured loan

backed by collateral; issued with some form of collateral

Unsecured (debenture) bonds

backed only by reputation of issuer

Commercial banks

banks generally prefer to lend short-term money to larger, established businesses; bank loans virtually disappear,

Gantt chart

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

10/29/1929

black tuesday; market lost 13 percent of its value

blogging/vlogs

blogs great way to interact with customers and improve company's website ranking

Journal

bookkeepers divide firm's transactions into meaningful categories and post them into record book or computer program

Marketing challenges

brand awareness, social media, converting leads into customers, gaining customer insight, budgeting, competing in global markets

Manufacturer' brands

brand names of manufacturers that distribute products nationally

Trademark

brand that has exclusive legal protection for both its brand name and its design

Hackers

breach sites and steal vital personal information, such as names, e-mails, passwords

Umbrella policy

broadly based insurance policy that saves you money because you buy all your insurance from one company

Public accountant

business or individual who helps a range of clients, from individuals to corporations, prepare financial documents; accountant who provides accounting services to individuals or businesses on fee basis

Managing information

business people faced with infoglut, overabundance of data Quality Completeness Timeliness Relevance

Diversification

buying several different investing alternatives to spread risk of investing

Contrarian approach

buying stock when everyone else selling or vice versa

Earning per share (EPS):

calculated as a company's profit divided by the outstanding shares of its common stock.

5 C's of credit

capacity, capital, collateral, conditions, character

Factors (market intermediaries)

charge more than banks, but many small businesses don't qualify for loans

Comptroller

chief accounting officer

Explicit knowledge

codified, documated, easily reproduced, and widely distributed Can be documented Can be widely distributed Can be easily replicated Can be reused many times at very low cost

Data

collected fro everything we do

ISO 14001

collection of best practices for managing organization's impact on environment

Exchange-traded funds (ETFs)

collections of stocks that are traded on exchanges but traded more like individual stocks than like mutual funds

Instability

combination of computer error, human error, malfunctioning software; overly complex marriage of software, hardware, and networking equipment

Product mix

combination of product lines offered by manufacturer

Promotion mix

combination of promotional tools organization uses

Whole life insurance

combines pure insurance with savings so you but both insurance and savings plan; stays in effect until age 100

ISO 9001

common name given to quality management and assurance standards

Social media advertising

companies can measure how many times post viewed or shares, social maida laos marketers to test promotions before bringing them to traditional media Owned: paid for SEO, banner ads, video Earned: shared via likes, posts; search rankings

Storage function

companies must have goods available in various parts of country ready to be shipped locally when ordered

Financial planners

companies offering other businesses financial services, sometimes one-stop financial centers or financial supermarkets

Brick & mortar e-commerce

companies that have a physical presence (e.g., a retail shop in a building) and offer face-to-face customer experiences.

Intranet

company wide network, closed to public access, that uses Internet-type technology

Acid-test ratio (quick ratio)

compares a company's "quick assets" (cash and accounts receivable) to its current liabilities

Comparison advertising

compares competitive products

Materials requirement planning (MRP)

computer-based operations management system that uses sales forecasts to make sure needed parts and materials available at right time and place

Product development and testing

concept testing takes product idea to consumers to test reactions; crowdsourcing platforms allow public to give their opinions of potential products

Time value of money (TVM)

concept that dollar today worth more than dollar tomorrow

Prospectus

condensed version of economic and financial information that company must file with SEC before issuing stock; prospectus must be sent to prospective investors

Quality

consistently producing what customer wants while reducing errors before and after delivery to customer

Specialty goods and services

consumer products with unique characteristics and brand identity; because products perceived as having no reasonable substitute, consumer puts forth special effort to purchase them

Retail advertising

consumers by various retail stores

Annuity

contract to make regular payments to person for life or for fixed period; guarantees income until you die -Fixed annuities: pay policy holder specified interest -Variable annuities: provide ninemsn choices identical to mutual funds

Bond

corporate certificate indicating that person has lent money to firm Advantages: Bondholders creditors,not owners of firm and can't vote on corporate matters Bond interest tax deductible Temporary source of funding and are eventually repair Repaid before maturity date if they contain call provision Disadvantages: Increase debt and can negatively affect market's perception of firm Paying interest on bonds is legal obligation If interest isn't paid, bondholders can take legal action Face value of bond must be rapid on maturity date

Revenue

cost of goods sold - gross profit (gross margin) - operating expenses = net income before taxes; monetary value firm received for goods sold, services rendered, or other payments

Cost-based pricing

cost-based pricing measures cost of producing product including materials, labor, overhead

Variable costs

costs change according to level of production

Operating expenses

costs involved in operating business, such as rent, utilities, and salaries

B2C

coupons, cents-off promotions, sampling, premiums, sweepstakes, contests, bonuses, catalogs, demonstrations, special event, lotteries, in-store displays

Homeowner's or renter's insurance

covers cost of items you own if they are destroyed; guaranteed replacement cost covers cost to replace items as new; depreciated cost covers current value of replacement items

Institutional advertising

create attractive image for organization rather than for product

Product advertising

create interest among consumer, commercial,and industrial buyers

Production

creation of finished goods and services using factors of production - land, labor, capital, entrepreneurship, knowledge

Product differentiation

creation of real or perceived product differences; use mix of branding, prices, advertising, and packaging to create different images

Knowledge management

critical organizational success

Accounts payable

current liabilities involving money owed to others for merchandise or services purchased on credit but not yet paid for

blockchain

database that exists on many servers at the same time

Yankee bond

debt obligation denominated in U.S. dollars that is publicly issued in the U.S. by foreign banks and corporation, and sometimes even governments

Brand loyalty

degree to which customers are satisfied like brand, and are committed to further purchases

Neurosciences

demographic micro-targeting, A/B testing, competitive benchmarking, eye-tracking, reaction graphs, emotion heatmaps, norm comparisons, survey correlation, social analytics dashboard

Tax-deferred contributions

deposits for which you pay no current taxes but earnings earned taxed as regular income after withdrawal

Production management

describe all activities managers do to help firms create goods

certified public accountant (CPA)

designation given to those who meet education and experience requirements and pass an exam

Sales promotion

designed to supplement personal selling, advertising, and public relations, take place both within and outside company

Flexible manufacturing

designing machines to do multiple tasks so that they can produce variety of products

Target costing

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

Sensors

detect moment anything goes wrong

Concept testing

developing accurate description of product and asking people whether concept (idea of restaurant) appeals to them

Mass marketing

developing products and promotions to please large groups of people Little market segmentation

One-to-one marketing

developing unique mix of goods and services for each individual consumer

Cash flow

difference between cash coming in and cash going you of business

Market segmentation

divide total market into groups whose members have similar characteristics

geographic segmentation

dividing market by cities, counties, states, regions

Volume or usage segmentation

dividing market usage (volume of use)

Demographic segmentation

diving market by age, income, education level

Benefit segmentation

diving market by determining which benefits of product to talk about

Psychographic segmentation

diving market using group's values, attitudes, and interests

Will

document that names guardian for children, states how want assets distributed, and names executor for estate

Unsecured loan

doesn't require any collateral

Annual report

early statement of financial condition, progress, and expectations of organization Management's discussion and analysis of operations Balance sheet Income statement Statement of cash flow Auditor's opinion

Liquidity

ease with which asset can be converted into cash

Assets

economic resource (things of value) owned by firm; items can be tangible or intangible Assets = equity liabilities + owners

Phishing

emails set up to trick victims into giving important information to bogus website Can't access website through link in email

Get customers emotion about product

emphasize product;s benefit to customer; use emotion-laden advertising

Interactive advertising

enables customers to choose information they receive

Credit cards

estimated one-third of small firms use credit cards to finance business; convenient but costly for small businesses

Cash budget

estimates cash inflows and outflows during particular period like month or quarter

Independent audit

evaluation and unbiased opinion about accuracy of company's financial statements

Total product offer

everything that consuemrs evaluate when deciding whether to buy something; products evaluated on different dimensions both tangible and intangible, marketers must think like and talk to consumers to find out what's important

Stock certificate

evidence of stock ownership that specifies name of company, number of shares it represents, and type of stock being issued

Maturity date

exact date issuer of bond must pay principal to bondholder

Over-the-counter (OTC) market

exchange that provides means to trade stocks not listed on national exchanges

Need for operating funds

expenses incurred in the day-to-day operations of the community

Principal

face value of bond

Personal selling

face-to-face presentation and promotion of goods and services; listen to customer needs, help reach solution, do everything possible to make transaction as simple as possible

Operations management planning

facility location for manufacturers Labor costs Availability resources Time to market, access transportation and proximity to suppliers and customers Quality life Train or retrain local workforce Solve problems: - Facility location - Facility layout - Materials requirement planning - Purchasing - Inventory control - Quality control

10/27/1997

fears economic crisis in Asia cause widespread panic and losses

5G

fifth-generation wireless, expected to be 100 times faster than 4G

2008

financial crisis fueled massive exodus from stock market, resulting in record losses

Securities markets

financial marketplaces for stocks and bonds and serve two primary functions Assist businesses in finding long-term funding to finance capital needs Provide private investors place to buy and sell securities as stocks and bonds

Statement of cash flows

financial statement that reports cash receipts and documents related to firm's three major activities Operations Investments financing

Balance sheet

financial statement that reports firm's financial condition at specific time and is composed of three major accounts - assets, liabilities, owners' equity

Income statement

financial statement that shows firm's profit after costs, expenses, and taxes; it summarizes all resources that have come into firm (revenue), all resources that have left firm, expenses, an resulting net income or net loss revenue

Customer orientation

finding out what customers want and then providing it

Niche marketing

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

Biological technology:

fingerprint sensors or retinal scanners allow organizations to identify people with near-perfect accuracy

Initial public offering (IPO):

first public offering of corporation's stock

FIFO

first-in, first-out

Profit orientation

focusing on goods and services that will earn most profit

Social commerce

form of electronic commerce that involves using social media, online media that supports social interaction and user contributions to assist in online buying and selling of products and services

Cloud computing

form virtualization in which company

Infomercials

full-length TV program devoted exclusively to promoting goods and services

Purchasing

function in firm that searches for quality material resources, finds best suppliers, and negotiates best price for goods and services

Pension funds

fund that is designed to provide retirement income Sovereign funds: a state-owned investment fund comprised of money generated by the government, often derived from a country's surplus reserves Public sector funds: funding that comes from the public treasury Pirate independent funds: the most common type of private equity, and unlike captive funds, the majority of company shares are not held by the investor. Corporate funds: Fund sponsored by an employer to provide benefits for its employees or the employees of an associated employer and which is not a Public Sector Fund, an Industry Fund, a Retail Fund or a Service Provider Fund.

Public sector funds

funding that comes from the public treasury

Long-term financing

funds needed for more than year

Short-term financing

funds needed for year or less

Debt financing

funds raised through various forms of borrowing that must be repaid; long-term financing loans generally come due with 3 or 7 years but may extend to 15 or 20 years

Rack jobbers

furnish racks or shelves of merchandise such as music, magazines, hosiery for retailers for display and sell them on consignment

Production era

general philosophy "produce as much as you can, because there is limitless market for it"

Seven rs

getting right product to right place, to right customer, at right time, right quantity, in right condition, right price

Line of credit

given amount of unsecured short-term funds bank will lend, provide funds are readily available

Program trading

giving instructions to computers to automatically sell if price of stok dips to certain point to avoid potential losses Caused turmoil 1987 Curbs and circuit breakers to restrict program trading

Value

good quality at fair price, according to American Marketing Assocition, value foundation of marketing, adapting products to new markets is ongoing challenge, product development is key activity in modern business

Local area network (LAN)

group of connected devices in one physical location such as at home or office; large or small and include both wired and wireless

Channel of distribution

group of marketing intermediaries that joining together and transport and store goods in path from producers to consumers

Product line

group of products that are physically similar or intended for similar market Coca-cola, diet coke, coke zero, cherry coke

Bundling

grouping two or more products together and pricing them as unit

Outsourced product development

handing off various parts of your innovation process - often to companies overseas; increase in outsourcing has resulted in using multiple organizations separated by cultural, geographic, and legal boundaries

Primary markets

handle sale of new securities Initial public offering (IPO): first public offering of corporation's stock

secondary markets

handle the trading of securities between investors, with the proceeds of the sale going to the seller.

Stock markets

handle trading of securities between investors, with proceeds of sale going to seller

Pull strategy

heavy advertising and sales promotion efforts directed toward consumers so that they'll request products from retailers

Service

help customers find products

Junk bonds

high-risk, high-interst bonds

Capital budget

highlights firm's spending plans for major asset purchases that often require large sums money

Gross profit (or gross margin)

how much firm earned by buying (or making): how much firm earned by buying (or making) and selling merchandise

Brand awareness

how quickly or easily given brand name comes to mind when someone mentions product category; customer reach point of brand preference when prefer one brand over another; when consumers reach brand insistence, they will not accept substitute brands

Market bubbles

huge swings in market cause lot of anguish among Wall Street workers and people in general

Knockoff brands

illegal copies of national brand-name goods

Manufacturing

improve efficiency

Tacit knowledge

in minds of employees, based on their experiences and backgrounds Embedded in personal experience Shared only with consent and participation of individual

Human capital

includes individual capabilities, knowledge, skills, and experience of company's employees and managers

Social capital

includes network of relationships that individuals have throughout organization

Immersive internet

includes virtual reality (VR), augmented reality and 3D environments; increase dramatically in education; run software increase cost

E-mail promotions

increase brand awareness among commercial suppliers

Social networking

increase exposure for products or services, create loyalty among customers, drive traffic to company website, help companies come up with new ideas, allow businesses to communicate with each customer

Merchant wholesalers

independently owned firms that take title to goods they handle Full-service wholesalers perform all distribution functions Limited-function wholesalers perform only selected distribution functions 80% wholesalers merchant wholesalers

Spyware

infect system with viruses and track online behavior

Marketing mix

ingredients that go into marketing program; four Ps Product Place Promotion Price

Disability insurance

insurance that pays part of cost of long-term sickness or accident

Getting product to right place

intermediaries important because getting product to consumers when and where they want is critical Physical vs. digital vs. omni-channel Exclusive vs. wide Partnerships vs. direct to consumer

Bulls

investors who believe stock prices going to rise

Bears

investors who expect stock prices to decline

Financial planning

involves analyzing short-term and long-term money flows to and from company Forecasting firm's short-term and long-term financial needs Developing budgets to meet those needs Establishing financial controls to see if company achieving goals

Reverse logistics

involves bringing goods back to manufacturer because of defects or for recycling materials

Inbound logistics

involves bringing raw materials, packaging, other goods and services, and information from suppliers to producers

Outbounds logistics

involves managing flow of finished products and information to business buyers and consumers

Current assets

items that can or will be converted into cash within one year

Auditing

job of reviewing and evaluating information used to prepare company's financial statements

FAST Overview

keep drivers; proprietary access to content, monetization via ad sales relationship, access to data from connected device or platform Platform agnostic Platform exclusive

Relationship marketing

keeping individual customers over time by offering them products that exactly meet their requirements Lead away from mass production and toward custom-made goods and services

institutional investors

large organizations, such as pension funds or mutual funds, that invest their own funds or funds of others

LIFO

last-in, first-out

Customer relationships management (CRM)

learning much as possible about customers and doing everything you can to satisfy or exceed their expectations

Factors that affect consumer behavior

learning, reference group, culture, subculture, cognitive dissonance

Issuing bonds

like IOU with promise to repay amount borrowed, with interest , on certain data

Brand association

linking brand to other favorable images

Current ratio:

liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year

Continuous process

long production runs turn out finished goods over time

Intangible assets

long-term assets (ex. Patents, trademarks, copyrights) that have no physical form but do have value

Bonds payable

long-term liabilities that represent money lent to firm that must be paid back

Artificial intelligence (AI)

machines programmed to think, work, and rat less like human; businesses or provide better service to their customers while also finding out more about them Narrow AI General AI Machine learning

Agents

maintain long-term relationships with clients they represent

Product analysis

making cost estimates and sales forecasts to get feeling for profitability of new-product ideas

Service orientation

making sure everyone in organization committed to customer satisfaction

Qualifying

making sure that people have need for product, authority to buy, and willingness to listen to sales message

Ransomware

malicious software that holds data hostage Don't click links or attachments in emails from unknown source

Public relations (PR)

management function that evaluates public attitudes, changes policies and procedures in response to public's requests, and executes program of action and information to earn public understanding and acceptance Listen to public Change policies and procedures Inform people you're responsive to their needs

Brand manager

manager who has direct responsibility for one brand or one product line; handles all elements of brand's marketing mix

nanomanufacturing

manipulation of materials on molecular or atomic scale

Business-to-Business MArket

manufacturers, retailers, hospitals, schools, nonprofits, government, products often sold and resold several times before reaching final consumers Number: relatively few customers compared to consumer market Size: though few in number. Industrial customers relatively very large Geographically concentrated: B2B markets tend to be concentrated in certain areas of country Rational: business buyers generally more rational in their purchase decisions Personal selling: more emphasis on personal selling than in consumer market

2000-2002

market collapsed in deep decline when tech stock bubble burst; investors lost 7 trillion dollars in market value

10/19/1987

market suffered its worst one-day drop when it lost 22 percent value

Mobile marketing

marketers make use of smartphones to text customers about product offers and other company information; beacons location-based ads

Market forces affect pricing

marketers sometimes use demand-oriented pricing based on consumer demand; consumers compare prices of goods and services online, leading more price competition; nonprice competition likely increase

Logistics

marketing activity that involves planning, implementing, controlling physical flow of materials, final goods, and related information from points of origin to points of consumption to meet requirements at profit; movement of information as it is about movement of goods

Target marketing

marketing directed toward those groups organization decides it can serve profitability

Agents and brokers

marketing intermediaries who ring buyers and sellers together and assist in negotiating exchange but do not take title to goods

Wholesaler

marketing intermediary that sells to other organizations

Podcasting

means of distributed and video programs via internet that lets users subscribe to number of files, also known as feeds, and then hear or view material at time they choose

Leverage (debt) ratios

measure degree to which firm relies on borrowed funds in its operations Debt to owner's equity ratio: measures your company's total debt relative to the amount originally invested by the owners and the earnings that have been retained over time.

liquidity ratios

measure firm's ability to turn assets into cash to pay its short-term debts Current ratio: liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year Acid-test ratio (quick ratio): compares a company's "quick assets" (cash and accounts receivable) to its current liabilities

Profitability (performance) ratios

measure how effectively firm's managers using firm's various resources to achieve profits Earning per share (EPS): calculated as a company's profit divided by the outstanding shares of its common stock. Return on sales: measure of how efficiently a company turns sales into profits Return on equity: measure of financial performance calculated by dividing net income by shareholders' equity.

Activity ratios

measure how effectively management turin over inventory Inventory turnover ratio

Return on equity

measure of financial performance calculated by dividing net income by shareholders' equity.

Return on sales

measure of how efficiently a company turns sales into profits

intellectual capital

measure of value of firm's intangible assets; difference between firm's market value and book value Reputation Employee loyalty and commitment Customer relationships Company values Brand names Experience and skills of employees

inventory turnover ratio

measures how efficiently a company uses its inventory by dividing the cost of goods sold by the average inventory value during the period.

Cost of goods sold (or manufactured)

measures of cost of merchandise sold or cost of raw materials and supplies used for producing items for resale

Debt to owner's equity ratio

measures your company's total debt relative to the amount originally invested by the owners and the earnings that have been retained over time.

Program Evaluation and Review Technique (PERT)

method for analyzing tasks involved in completing given project, estimating time needed to complete each task, and identifying minimum time needed to complete toal project Analyze and sequencing tasks Estimating time needed to complete tasks Draw PERT network illustrating first two steps Identifying critical path

Placement

modern merchandising strategy for brands to reach their target audiences without using overt traditional advertising

Venture capital

money invested in new or emerging companies that are perceived as having great profit potential

Equity financing

money raised from within firm, from operations or through sale of ownership in firm (stock or venture capital)

Common stock

most basic form of ownership in firm; confers voting rights and right to share in firm's profits through dividends

Selling era

most companies emphasized selling and advertising in effort to persuade consumers to buy existing products

Business-to-consumer sales process

most sales take place retail stores, salesperson does not have to do much prospect or qualifying, retail salespeople don't usually need pre-approach step, follow up if product is to be delivered or installed

Materials handling

movement of goods within warehouse, from warehouses to factory floor, and from factory floor to various workstations

Web 3.0

moving toward decentralization; combination of technologies that adds intelligence and changes how people interact web, amd vice versa; most data generated online collected by big tech companies; systems vulnerable to issues that coil lead to losses or services and/o data; web 3.0 fix both problems by moving to decentralized seat in which database that exists on many servers at same time; creates more powerful peer-to-peer system; data cannot be lost since exits on many independent servers at same time and is not controlled by central server

Data processing (DP)

name for business technology in 1970s; primarily used to improve flow of financial information; data raw, unanalyzed, and unorganized facts and figures; inforaiton processed and organized that managers can use for decision making

Brand

name, symbol, or design that identifies goods or services of one seller or group of sellers and distinguishes them from goods and services of competitors

NASDAQ

nationwide electronic system that communicates over-the-counter trades to brokers

HR managers

need to recruit workers tech savvy na can train others; technology makes telecommuting available to almost all companies; employees stay home with small children or elders, eliminates travel time, decrease costs, nand often increase productivity; electronic communication can never replace face-to face communication

Wide Area network (WAN)

network that extends over large geographical area and connects individual users or multiple LANs

Enterprise resource planning (ERP)

newer version of MRP combines computerized functions of all divisions and subsidiaries of firm - such as finance, human resources, and order fulfillment - into single integrated software program that uses single database

Generic goods

non branded products that usually sell at sizable discount compared to national or private-label brands

Commercial finance companies

non-deposit-type organizations that make short-term loans to borrowers who offer tangible assets (property, plant, equipment) as collateral

Public company accounting oversight board (PCAOB)

non-profit organization that regulates audits of publicly traded companies to minimize audit risk.

Wholesale intermediaries

normally B2B sales, sometimes retail function; retail sales sales of goods and services to consumers for their own use; sales of goods and services to other businesses for use in business or resale (Costco, Staples); customers familiar with retailers than wholesalers Help suppliers: -Provides sales force -Communicate manufacturers' advertising deals -Maintain inventory -Provide transportation -Provide capital (pay quick payments for goods) -Provide market info -Take on credit risk -Take on product loss risk by taking the title. Help customers: -Maintaining inventory -Rapid transportation of goods -Provide market info -Grant credit -Provide goods in the type and quantity desired

Unsecured bonds (debenture bonds)

not backed by specific collateral

Internet of things (IOT)

not just computers, phones, and tablets, connected online now; technology that enables ordinary objects to be connected to Internet; uses sensors, cameras, software, databases, massive data centers

identity theft

obtaining individuals' personal information, such as Social Security and credit card numbers for illegal purposes Hire managed security services provider Use password manager or two-factor authentication Use methods including planting fake information and crating decoys

Broadband technology

offers users continuous connection to internet and allows them to send and receive mammoth files that include video, voice, and data much faster than ever before

Social security

old-age, survivors, disability insurance program established by social security act 1935; benefits paid through social security taxes paid by workers currently earning wages in market

New York Stock Exchange (NYSE)

one of the world's largest marketplaces for securities and other exchange-traded investments

Effective relationship marketing built on

open communication, consistently reliable service, staying in contact with customers, trust, honest, and ethical behavior, showing that you truly care

Mutual fund

organizaiton buys stocks and bonds and then sells shares in those securities to public Fund pools investors' money and buys stocks according to fund's purpose

Freight forwarder

organization that puts many small shipments together to create single large shipment that can be transported cost-effectively to final destination; less-than-carload (LCL) shipments

Stock exchange

organization whose members can buy and sell (exchange) securities for companies and investors

Customer relationship era

organizations seek to stimulate long-term customer loyalty; social networks, online communities, and blogs used in relationship building Customer relationships management (CRM): learning much as possible about customers and doing everything you can to satisfy or exceed their expectations

Marketing intermediaries

organizations that assist in moving goods and service from producers to business (B2B) and from business to consumers (B2C); middle of series of firms that distribute goods; perform marketing tasks faster and cheaper than most manufacturer could provide them; make exchange process easier and more efficient and productively; transporting, storing, selling, relationship building faster and more cheaply than most manufacturers could; add value that exceeds cost Eliminated but activities cannot Perform marketing functions faster and cheaper than other organizations can Add costs to products, but costs generally offset by values they provide

Advertising

paid, nonpersonal communication through various media by organizations and individuals who are in some way identified in advertising message; different from public relations, since advertising paid and public relations free

Dividends

part of firm's profits that firm may distribute to stockholders as wither cash payments or additional shares of stock Not required and are at discretion of company

Process manufacturing

part of production process that physically or chemically changes materials; part of production process that transcodes/reformats

Assembly process

part of production process that puts together components

Fixed annuities

pay policy holder specified interest

Viral marketing

paying customers to say positive things on internet or setting up multiple schemes whereby consumers get commissions for directing friends to specific websites; many viral marketing programs give away free products or services in exchange for email addresses

Interest

payment issuer makes to bondholders for use of borrowed money

callable bonds

permit bond issuers to pay off the principal before the maturity date.

Executor

person who assembles and values estate, files income and other taxes, and distributes assets

Prospect

person with means to buy product, authority to buy, and willingness to listen to sales message

Facility layout

physical arrangement of resources (including people) in production process

Product

physical good, service, or idea that satisfies want or need plus anything that would enhance product in eyes of consumers

Viruses

piece of programming code inserted into other programming to cause some unexpected, undesired event, like erasing data or causing hard drive to crash use antiviruses software do not download files from unknown sources

Cookies

pieces of information, such as registration data, sent by website to browser that browser software is expected to save and send back to server whenever user returns to that website

Location-based services

pinpoint user's positions

Estate planning

planning for those who will inherit money from you may tart with life insurance

Capital gains

positive difference between purchase price of stock and its sale price Blue-chip stocks Growth stocks Income stocks Penny stocks

Trade credit

practice of buying goods and services now and paying for them later

Double-entry bookkeeping

practice of writing every business transaction in two places; done so they can check one list of transactions against other for accuracy

Cash flow forecast

predicts cash inflows and outflows in future periods usually months or quarters

Short-term forecast

predicts revenues, costs, expenses for period of one year or less

Psychological pricing

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

Competition-based pricing

pricing strategy based on what all other competitors doing

risk/return trade-off

principle that greater risk lender takes in making loan, higher interest rate required

Virtual private network (VPN):

private data network that creates secure connections, or "tunnels," over regulate internet lines

Internet2

private internet system that links government; runs fastest network and supports heavy-duty applications; users willing to pay more can use more bandwidth

Consumer decision making process

problem recognition, information search, evaluate alternatives, purchase decision, post purchase evaluation

Customer segmentation

process by which you divide your customers into segments up based on common characteristics

Product screening

process designed to reduce number of new-product ideas being worked on at any one time

Financial control

process in which firm periodically compares its actual revenues, costs, and expenses with its budget; most companies hold at least monthly financial reviews; identifies variances to financial plan and allows firm to take corrective action

Data analytics

process of collecting, organizing, sorting, and analyze large sets of data in order to identify patterns and other information that is most useful to business now and for making future decisions

Environmental scanning

process of identifying factors that can affect marketing success Global factors, technological factors, sociocultural factors, competitive factors, economic factors

Supply-chain management

process of managing movement of raw materials, parts, work in progress, finished goods, and related information through all organizations involved in supply chain; managing return of such goods, if necessary; and recycling materials when appropriate Suppliers, manufacturers, warehouses, stores Right quantities, right locations, right time Minimize system wide costs while satisfying service level requirements

Facility location

process of selecting geographic location for company's operations

Factoring

process of selling accounts receivable for cash

Statistical process control (SPC)

process of taking statistical samples of product components at each stage of production process and plotting those results on graph

Ordering process

process or workflow that happens after customer places order

Statistical quality control (SQC)

process some managers use to continually monitor all phases of production process to assure that quality being built into product from beginning

Break-even analysis

process used to determine profitability at various levels of sales Break-even point: revenues equals cost Break-even point (BEP) = total fixed costs (FC) / (price of one unit (P) - variable costs (VC) of one unit)

Push strategy

producer uses advertising, personal selling, sales promotion, and all other promotional tools to convince wholesalers and retailers to stock and sell merchandise

Nonprice competition

product images, comfort, style, convenience, durability, accompanying services

Lean manufacturing

production of goods using less of everything compared to mass production take less human effort Less manufacturing space Less investment tools Less engineering time to develop new product

Just-in-time (JIT) inventory control

production process in which minimum inventory kept on premises and parts, suppliers, and other needs delivered just in time to go on assembly line

Intermittent process

production run is short and machines changed frequently to make different products

Long-term forecast

products revenues, costs, and expenses for period longer than one year

Convenience goods and services

products that consumer wants to purchase frequently and with minimum of effort; differentiation occurs through added convenience consumers will pay premium

Unsought goods and services

products that consumers unaware of, haven't necessarily though of buying, or find that they need to solve unexpected problem

Dealer (private-label) brands

products that don't carry manufacturer's name but carry distributor's or retailer's name instead

Term-long agreement

promissory note that requires borrower to repay loan in specified installments

Commercialization

promoting product to distributors and retailers to get wide distribution and developing strong advertising and sales campaigns to generate and maintain interest in product among distributors and consumers

interactive promotion

promotion process that allows marketers to go beyond monologue where sellers try to persuade buyers to buy things, to dialogue in which buyers and sellers work together to create mutually beneficial exchange relationships

Variable annuities

provide ninemsn choices identical to mutual funds

U.S. government gave away ownership in 2016, entirely private entity

provide same level of access to all websites regardless of their content; charges for faster access charge people to visit certain websites

Buying stock on margin

purchasing stocks by borrowing some of purchase cost from brokerage firm Margin: Portion of stock's purchase price that investor must pay with their own money If broker issues margin call, inverter has to come up with money to cover losses

Term insurance

pure insurance protection for give number of years that typically costs less younger you buy it

Intensive distribution

puts products into as many retail outlets as possible including vending machines

Six sigma quality

quality measure that allows only 3.4 defects per million opportunities

Leverage

raising needed funds through borrowing to nice rae firm's rate of return; increases risk but enhances firm's ability to increase profits

Cost of capital

rate of return company must earn inorder to meet demands of its lenders and expectations of equity holders

Mobile advertising

reaches people on their smartphones

Booking

recording of business transactions divide firm's transactions into meaningful categories and post them into record book or computer program called journal

Accounting

recording, classifying, summarizing, and interpreting of financial events and transactions to provide management and other interested information they need to make good decision

Stockbroker

registered representative who works as market intermediary to buy and sell securities for clients

Real estate

relatively secure investment

Global advertising

requires marketers to develop single product and promotional strategy to implement worldwide; problems arise with using one advertising campaign in all counties, especially bad translations; many markets moving from globalism to regionalism

Prospecting

researching potential buyers and choosing those most likely to buy

Sinking funds

reserve account in which issuer to pay off principal before maturity date

Net income or net loss

revenue left over after all costs and expenses, including taxes, are paid Net income before taxes - taxes = net income or loss

Telemarketing

sale of goods and services by telephone

Internal sales promotion

sales training, sales aids such as audiovisual displays and videos, participation in trade shows where salespeople can get leads

401(k) plans

savings plan that allows you to deposit pretax dollars and whose earnings compound tax-free until withdrawal Contributions reduce present table income Tax deferred on earnings Many employers match contributions

Qualified retirement plans (keoghs)

self-employed people to establish own retirement plans; IRAs for entrepreneurs; aren't taxed until withdrawn nor returns funds earn; funds may be withdrawn in lump sum or spread out over years

direct selling

selling goods and services to customers in their homes or workplaces

Online retailing

selling goods and services to ultimate customers over Internet; lack of inventory and poor customer service

Extranet

semi private network that allows more than one company to access same information or allows people on different servers to collaborate

Supply chain

sequence of linked activities that must be performed by various organizations to move goods from the sources of raw materials to ultimate consumers

Critical path

sequence of tasks takes longest time to complete

Dodd- frank wall street reform and consumer protection act

series of federal regulations passed to prevent future financial crises.

Web 2.0

set of tools that allow people to build social and business connections, share informations, and collaborate on projects online

Budget

sets forth management's expectations and allocates use of specific resources throughout firm; depend heavily on balance sheet, income statement, statement of cash flows, and short-term and long-term financial forecasts; guide for financial operations and expected financial needs

Everyday low pricing (EDLP)

setting prices lower than competitors and then not having any special sales

High-low pricing strategy

setting prices that are higher than EDLP stores but having many special sales where prices lower than competitors

Stocks

shares of ownership in company Pro: Stock purchase price does not have to be repaid Dividends do not, by law, have to be paid Stock does not increase debt Cons: Stockholders vote for board of directors and therefore affect top management decisions Dividends come from after taxes funds Dividends not tax deductible

Notes payable

short-term or long-term liabilities that business promises to pay by certain date

Process layout

similar equipment and functions grouped together

Accounting cycle

six-step procedure that results in preparation and analysis of major financial statements

Mobile web

smartphones and tablets allow people to access and interact on web no matter where they are

Generally Accepted Accounting Principles (GAAP)

sometime permits accountants to use different method of accounting for inventory FIFO: first-in, first-out LIFO: last-in, first-out

Investment bankers

specialists who assist in issue and sale of new securities

Ledger

specialized accounting book or computer program in which information from accounting journals is accumulated into specific categories and posted so that managers can find all information about one account in same place

Operations management

specialized area in management that converts or transforms resources (including human resources) into goods and services; create good experience for those use service Inventory management Quality control Production scheduling Follow-up services

Forecasting

starts before orders placed, "Make to forecast" logic, best and most up to date information

Preferred stock

stock that gives its owners preference in payment of dividends and earlier claim on assets than common stockholders Callable, convertible, cumulative

Tracking goods

storage warehouses hold products for relatively long period of time; distribution warehouses used to gather and redistribute products such as packages deliveries; radio frequency identification (RFID) tags keep track of goods

Price leadership

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

skimming price strategy

strategy in which new product priced high to make optimum profit while there's little competition

Penetration strategy

strategy in which product is priced low to attract many customers and discourage competition

Outside parties

such as employees, owners, creditors, unions, investors, and government - make use of firm's accounting information

Trial balance

summary of all financial data in account ledgers that ensures figures correct and balanced

Financial statement

summary of all transactions that have occurred over particular period Balance sheet Income statement Statement of cash flows

Advocacy advertising:

supports particular view of issue

Depreciation

systematic write-off of cost of tangible asset over its estimated useful life

Mass customization

tailoring products to meet needs of individual customers

Generating new-product ideas

takes about seven ideas to generate one commercial product; employees, research and development, suppliers offer new ideas

Individual Retirement Accounts (IRAs):

tax-deferred investment plans that enable you to save part of you income for retirement

Modular layout

teams of workers produce more complex units of final product

Data mining

technique for looking for hidden patterns and unknown relationships in data

Integrated marketing communication (IMC)

technique that combines promotional tool into one comprehensive and unified promotional strategy Create positive brand image Meet needs of consumers Meet strategic marketing and promotional goals of firm

Computer literacy

technology eliminates old jobs while creating new ones; seek help from experts; mindful misinformation

Informaiton systems (IS)

technology that helps companies doe business; includes ATMs and voice mail; 1980s; role changed from supporting business to doing business

Test marketing

testing products among potential users

Financial management

the business function that deals with investing the available financial resources in a way that greater business success and return-on-investment (ROI) is achieved.

Net Neutrality

the concept of an open, equal internet for everyone, regardless of device, application or platform used and content consumed.

Finance

the management of large amounts of money, especially by governments or large companies.

Pirate independent funds

the most common type of private equity, and unlike captive funds, the majority of company shares are not held by the investor.

Budgeting process

the process of planning future business activities by establishing performance goals and putting them into a formal plan

Retail Strategies

the process you use to develop your products or services and sell them to customers

Product life cycle

theoretical model of what happens to sales and profits for product class over time: introduction, growth, maturity, decline

Cyberterrorism

threats that terrorist hackers could impair or shut down nation's communications infrastructure, money supply, electricity grids, and transportation systems U.S. Department of Homeland Security created Critical Infrastructure Protection Board

Operating (or master) budget

ties together all firm's other budgets and summaries its proposed financial activities

B2B

trade shows, portfolios for salespeople, deals, catalogs, conventions

Computer-integrated manufacturing (CIM)

uniting of computer-aided design with computer-aided manufacturing; expensive, reduces time needed to program machines to make parts

Tangled web of promotion seven deadly sins of web design

unorganized or tale information improper use of animation, tiny fonts and poor color schemes, ignoring needs of your customer base, using outdated methods, not burying dead links, inconsistent style

Computer-aided design (CAD)

use of computers in design of products

Computer-aided manufacturing (CAM)

use of computers in manufacturing products

Business intelligence (BI) or analytics

use of data analytic tools to analyze organization's raw data and derive useful insights from them; focus on what's important, such as deciding how to react to problems and opportunities

Exclusive distribution

use of only one retail outlet in given geographic area

Third-party logistics

use of outside firms to help move goods from here to there

Warehousing

use that involves storage or movement of goods for themselves or other firms

Mobile apps

used for online ordering and loyalty programs

Selective distribution

uses only preferred group of available retailers in area

multi level marketing

uses salespeople who work as independent contractors

Brand equity

value of brand name and associated symbols

Form utility

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

Knowledge economy

wealth increasingly created by effective management of knowledge workers instead of by control physical and financial assets

Liabilities

what is business owes to other (debts)

Variable life insurance

whole life insurance that invests cash value of policy in stocks or other high-yielding securities

Trade advertising

wholesalers and retailers by manufacturers, from studios to movie theaters

Brand name

word, letter, or group of words or letters that differentiates one seller's goods and services from those of competitors

Assembly line layout

workers do only few tasks at time

International Organization for Standardization (ISO)

worldwide federation of national standards bodies


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