BUS
internal customers
individuals and units within the firm that receive services from other individuals or units.
secondary data
information that has already been complied by others and published in journals and books or made available online
marketing mix
ingredients that go into a marketing program: product, price, place, and promotion.
participative (democratic) leadership
involves managers and employees working together to make decisions.
focus group
is a group of people who meet under the direction of a discussion leader to communicate their opinions about an organization, its products, or other given issues
communicate a vision and rally others around that vision, set corp values, promote corp ethics, embrace change, stress accountability and responsibility
leaders must be
monopoly
one seller controls the total supply of a product or service and set the price
Certified public accountant
an accountant who passes a series of exams set by american institute of certified public accountants
long term financing
covers funds needed for more than a year (usually 2 to 10 years.
marketing
as the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings
few customers, customers are relatively large, geographically concentrated, more rational and less emotional than consumer buyers, tend to be direct sales, personal selling.
b2b factors compared to consumer markets
goals
broad long term accomplishments an org wants to attain; team process
perfect competition
competiton is which there are many sellers in a market and none is large enough to dictate the price of a product
consumer market
consists of all the individuals or households that want goods and serves for personal consumption or use and have the resources to buy them
financial managers
examine financial data prepared by accountants and recommend strategies for improving the financial performance of the firm
command economies
exist when he gov largely decides what goods and serves will be produces, who gets them, and who the economy will grow. socialism and communism
free-market economies
exist when he market largely determines what goods and services get produced, who gets them and how the economy grows. Captialism
mixed economies
exist where some allocation of resources is made by the market and some by the government.
knowledge management
finding the right information, keeping the information in a readily accessible place, and making the information known to everyone in the firm
public accountant
for a fee, provides accounting serves to individuals or businesses. Such services can include designing an accounting system, helping select the correct software to run the system, and analyzing an organizations financial performance.
financial accounting
for people primarily outside org. company owners, managers and employees, creditors, and lenders, employee unions, customers, suppliers, gov agencies, and gen public.
Finance
function in a business that acquires funds for the firm and manages them within the firm; preparing budgets; doing cash flow analysis; and planning for the expenditure of funds on such assets as plant,equipment, and machinery
debt financing
funds raised through various forms of borrowing that must be repaid
directing
giving assignments, explaining routines, clarifying policies, and providing feedback on performance
enabling
giving workers the education and tools they need to make decisions. key to success for empowerment
human relations skills
include communication and motivation; they enable managers to work through and with people. Skills associated with leadership-coaching, more ale building, delegating, training and development, and supportiveness are also human relations skills
external customers
include dealers, who buy products to sell to others, and ultimate customers (also known as end users) such as you and me, who buy products for their own personal use
organizing
includes designing the structure of the organization and creating conditions and systems in which everyone and everything works together to achieve the organization's goals and objectives
Middle Management
includes general managers, division managers, and branch and plant managers who are responsible for tactical planning and controlling
supervisory management
includes those directly responsible for supervising workers and evaluating their daily performance; they're often known as first line managers (or supervisors) because they're the first level above workers.
financial management
is the job of managing a firm's resources to meet its goals and objectives
contingency planning
is the process of preparing alternative course of action the firm can use if its primary plans don't work out; crisis planning is part of this
operational planning
is the process of setting work standards and schedules necessary to implement the company's tactical objectives. focuses on specific supervisors, department managers, and individual employees. daily and weekly operations
oligopoly
just a few sellers dominate the market
monopolistic competition
large number of sellers produce very similar products that buyers nevertheless perceive as different ; product differentiation
autocratic leadership
leadership style that involves making managerial decisions without consulting others
annual report
yearly statement of the financial condition, progress, and expectations of an org.
budget
sets forth managements expectations for revenues and, on the basis of those expectations, allocates the use of specific resources throughout the firm; depends heavily on the accuracy of the firms balance sheet, income statement, statement of cash flows, and short term and long term financial forecasts, which all need to be as accurate as possible.; capital, cash, and operating or master budget
ethics
society's accepted standards of moral behavior, that is, behavior accepted by society as right rather than wrong
government and not for profit accounting
suports orbs whose purpose is not generating a profit but serving ratepayers, taxpayers, and others according to a duly approved budget.
relationship marketing
tends to lead away from mass production and toward custom-made goods and services
decision making
choosing among two or more alternatives, which sounds easier than it is
volume (or usage) segmentation
separating the market by usage (volume of use)
Product, price, place, promotion
4 p's
trial balance
a summary of all the financial data in the account ledgers that ensures the figures are correct and balanced
intuits, quick books, and sage's peachtree
accounting software
business to business market (B2B)
consists of all the individuals and organizations that want goods and services to use in producing other goods and services or to sell, rent, or supply goods to others
top management
highest level, president and other key co execs who develop strategic plans. CEO, CFO, COO, CIO
Certified management accountant
is a professional accountant who has met certain educe and experience requirements, passed a exam, and certified by Institute of certified management accountants
double entry bookkeeping
practice of writing every business transaction in tow places
long term forecast
predicts revenues costs and expenses for a period longer than 1 years, sometimes as long as 5 to 10 years.
short term forecast
predicts revenues costs and expenses for a period of one year or less
cash flow forecast
predicts the cash inflows and outflows in future periods, usually months or quarters
transparency
presentation of a co's facts and figures in a way that tis clear and apparent to all stakeholders
financial controls
process in which a firm periodically compares its actual revenues, costs, and expenses with its budget.
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 the information about one account in the same place
objectives
specific short term statements detailing how to achieve the organizations goals
economics
study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various competing groups and individuals
undercapitalization, poor control over cash flow, and inadequate expense control
3most common reasons a firm fails
accounting cycle
6 step procedure that results in the preparation and analysis of the major financial statements
1. top management must adopt and unconditionally support an explicit corporate code of conduct 2. employees must understand that senior management expects all employees to act ethically 3. managers and others must be trained to consider the ethical implications of all business decisions 4. An ethics office must be set up with which employees can communicate anonymously 5. Involve outsiders such as suppliers, subcontractors, distributors and customers 6. the ethics code must be enforced
6 steps to improve bus
technical skills
ability to perform tasks in a specific discipline (such as selling a product or developing software) or department (such as marketing or info systems)
Certified internal auditor
accountant who has a bachelor degree and 2 years of experience in internal auditing, and who has passed an exam administer by the institute of internal auditors
1. analyze soruce documents, 2. record transactions in journals 3. transfer journal entries to ledger 4. take trial balance 5. prepare financial statements (balance sheet, income statement, statement of cash flows) 6. analyze financial statements
accounting cycle
demographic segmentation
age income and education level; most widely used
capitalism
an economic system in which all or most of the factors of production and distribution are privately owned and operated for profits
mission statement
an outline of the fundamental purposes of an organization; top management and others in the firm set this. Should address orgs self concept, philosophy, long term survival needs, customer needs, social responsibility, nature of the product or service.
marketing research
analysis of markets to determine opportunities and challenges, and to find the information needed to make good decisions
product
any physical good, service, or idea that satisfies a want or need, plus anything that would enhance the product in the eyes of consumers, such as the brand name
1. set clear performance standards 2. monitor and recording actual performance 3. comparing results against plans and standards 4. communicating results and deviations to the appropriate employees 5. taking corrective action when needed and providing positive feedback for work well done
controlling consists of five steps
primary data
data that you gather yourself (not from secondary sources such as books and magazines)
1. define the situation 2. describe and collect needed info 3. develop alternatives 4.develop agreement among those involved 5. decide which alternative is best 6. Do what is indicated 7. Determine whether the decision was a good one, and follow up
decision making process
integrity based ethics coeds
define the organizations guiding values, create an environment that supports ethically sound behavior, and stress shared accountability
marekt pric
determined by supply and demand
one-to-one marketing
developing a unique mix of goods and services for each individual customer.easy to do in B2B markets. now possible in consumer markets too.
geographic segmentation
dividing a market by cities, counties, states, or regions
benefit segmentation
dividing the market by determining which benefits of the product to talk about
psychographic segmentation
dividing the market using group's values, attitude, and interests
communism
economic and political system in which the government makes almost all economic decisions and owns almost all the major factors of production.
socialism
economic system based on the premise that some, if not most, basic businesses should be owned by the government so that profits can be more evenly distributed among the people
compliance based ethics codes
emphasize preventing unlawful behavior by increasing control and penalizing wrongdoers.
controlling
establishes clear standards to determine whether an organization is progressing toward its goals and objectives, rewarding people for doing a good job, and taking corrective action if they are not
1. is my proposed action legal 2. is it balanced 3. how will it make me feel about myself
ethics questions
independent audit
evaluation and unbiased opinion about accuracy of a companies financial statements
conceptual skills
let the manager picture the org as a whole and see the relationships among its various parts. They are needed in planning. org, controlling, systems development, problem analysis, decision making, coordinating, and delegating.
microeconmics
looks at the behavior of people and organizations in markets for particular products or services
macroeconomics
looks at the operation of a nation's economy as a whole
brain drain
loss of the best and brightest people to other countreis
capital expenditures
major investments in either tangible long term assets such as land, buildings, and equipment, or intangible assets such as patents trademarks and copyrights.
planning
management function that includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives
free rein leadership
managers set objectives and employees are free to do whatever is appropriate to accomplish those objectives
find opportunities, conduct research, identify target market: design a product to meed the need based on research, product testing, determine a brand name, design a package, set a price, select a distribution system, design a promotional programs, build relationships with customers
marketing
target marketing
marketing directed toward those groups (market segments) an organization decides it can serve profitably
leading
means creating a vision for the organization and communicating, guiding, training, coaching, and motivating others to achieve goals and objectives in a timely manner
mass marketing
means developing products and promotions to please large groups of people.
empowerment
means giving employees the auth to make a decision without consulting the manager and the responsibility to respond quickly to customer requests
accounting system
method we use to record and summarize accounting data into reports
equity financing
money raised from within the firm, from operations or through the sale of ownership in the firm (stock or venture captial)
vision
more than a goal; it's a board explanation of why the organization exists and where it's trying to go; gives an organization a sense of purpose and a set of values that unite workers in a common destiny;normally top management establishes this
ethical dilemmas
must choose between equally unsatisfactory alternatives
managing day by day needs of the business, controlling credit operations, acquiring needed inventory, making capital expenditures
operational needs for which funds are needed
strategic planning
process of determining the major goals of the org and the policies and strategies for obtaining and using resources to achieve those goals; done by top management; decide which customers to serve, when to serve them, what products to sell, and geographic areas to compete.
tactical planning
process of developing detailed short term statements about what is to be done, who is to do it, and how; managers to teams of managers at lower levels of org normally do this. setting annual budgets and deciding on other activities necessary to meet strategic objectives
niche marketing
process of finding small but profitable market segments and designing or finding products for them
environmental scanning
process of identifying factors that can affect marketing success: global, sociocultural, and technological
test marketing
process of testing products among potential users
managerial accounting
provides information and analysis to managers inside the organization to assist them in decision making; concerned with measuring and reporting costs of production, marketing, and other functions, preparing budgets(planning), checking whether or not units are staying within their budgets (controlling), and designing strategies to minimize taxes.
journal
record book or computer program where accounting data are first entered
bookkeeping
recording of business transactions
accounting
recording, classifying, summarizing, and interpreting of financial events and transactions in an organization to provide management and other interested parties the financial information they need to make good decisions about its operation.
staffing
recruiting, hiring, motivating, and retaining the best people available to accomplish the company's objectives
short-term fiancing
refers to funds needed for a year or less
demand
refers to the quantity of products that people are willing to buy at different prices at a specific time
auditing
reviewing and evaluating the if nor used to prepare a company's financial statements
sarbanes oxley act
scrutiny of the accounting industry intensified and resulted in this us congress passage. created new gov reporting standards for publicly traded companies. created the Public Company Accounting Oversight board, charged with overseeing AICPA. : prohibits accounting firms from providing certain non-auditing works (such as consulting services) to companies they audit, strengthens protections of whistleblowers, requires CEOs and CFo's to certify accuracy of financial reports and has penalties, prohibits corp loans to director sand execs of company, set the 5 member PCAOB under the SEC to oversee accounting, felony for altering or destroying audit docs. new rules for auditing and consulting to ensure integrity of auditing process.
market segmentation
the process of dividing the total market into groups whose members have similar characteristics
management
the process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other organizational resources
supply
the quantitates of products manufacturers or owners are willing to sell at diff prices at a specific time
state capitalism
the state runs some business instead of private owners
resource development
the study of how to increase resources (say, by getting lidl from shale, and tar sands) and create conditions that will make better use of them(like recycling and conservation)
promotion
the techniques sellers use to inform people about and motivate them to buy their products or services
tax accountant
trained in tax law and is responsible for preparing tax returns or developing tax strategies
organization chart
visual device that shows relationships among people and divides the organization's work; shows who reports to whom
brand name
word letter or group of words or letters that differentiates one seller's goods and services from those of competitors.
private accountant
works for a single firms, gov agency, or nonprofit org.
