Business

executive summary

2-3 page management summary of proposed venture (major goals and objectives)

performance appraisal

An evaluation that measures employee performance against established standards in order to make decisions about promotions, compensation, training or termination.

might have a good business idea if

fills customers' needs, have the skills and resources to start one, can sell the product/service at price that's good but can still make profit, get to your customers before window of opportunity ends, can keep the business going

fringe benefit

form of payment for the performance of services

product life cycle

introduction, growth, maturity, and decline

production has historically meant

manufacturing

order

materials and people should be placed and maintained in the proper location

self-managed

means that they're empowered to make decisions without management approval

insurable interest

means the policyholder is the one at risk to suffer a loss

how is the distribution of profit and losses handled in an LLC

members agree on the percentage to be distributed to each member

identity theft

obtaining of individuals' personal info (SS and credit card numbers)

off-the-job training

occurs away from the workplace and consists of internal or external programs to develop any of a variety of skills or to foster personal development

strike

occurs when workers collectively refuse to go to work

incubators

offer new businesses in the critical stage of early development low-cost offices w/ basic services such as accounting, legal advice, and secertarial help

continuous process

one in which long production runs turn out finished goods over time

mutual insurance company

organization owned by its policyholders

tall organizational structures

organizations grew bigger and bigger, adding layer after layer of management

marketing intermediaries

organizations that assist in moving goods and services from producers to businesses (B2B) and from businesses to consumers (B2C)

mission statement

outlines the organization's fundamental purposes and should address: (organization's self-concept, philosophy, long-term survival needs, its customer needs, social responsibility, nature of its product(s) or service(s)

cooperative (co-op)

owned and controlled by the people who use it - producers, consumers, or workers w/ similar needs who pool their resources for mutual gain

stock insurance company

owned by stockholders, just like any other investor-owned company

business ownership policy (BOP)

package that includes property and liability insurance

advertising

paid, nonpersonal communication through various media by organizations and individuals who are in some way identified in the message

focus group

people who meet under the direction of a discussion leader to communicate their opinions about an organization, its products, or other given issues

ultimate consumer

person or organization that buys a product to use, rather than sell it to someone else

intrinsic reward

personal satisfaction you feel when you perform well and complete goals (ex: belief that your work makes a significant contribution to the organization or to society)

facility layout

physical arrangement of resources, including people, to most efficiently produce goods and provide services for customers

process manufacturing

physically or chemically changes materials

guidelines for insurable risk

policyholder must have an insurable interest, loss and chance of loss must be measurable, loss must be accidental, insurance company's risk should be dispersed, insurance company must be able to set standards for accepting the risk

three guidelines for an insurable risk

policyholder must have an insurable interest, loss must be measurable, chance of loss must be measurable

self-insurance

practice of setting aside money to cover routine claims, and buying only "catastrophe" insurance policies to cover big losses

5 steps in human resource management

preparing a human resource inventory of the organization's employees, preparing a job analysis, assessing future human resource demand, assessing future labor supply, establishing a strategic plan

management development

process of training and educating employees to become good managers, and then monitoring the progress of their managerial skills over time

Statistical Quality Control (SQC)

process some managers use to continually monitor all phases of the production process and ensure quality is being built into the product from the beginning

collective bargaining

process whereby union and management representatives negotiate a contract for workers

information

processed and organized data that managers can use for decision making

push strategy

producer uses advertising, personal selling, sales promotion, and all other promotional tools to convince wholesalers and retailers to stock and sell merchandise, pushing it through the distribution system to the stores

job simplification

produces task efficiency by breaking a job into simple steps and assigning people to each step

lean manufacturing

production of goods using less of everything than in mass production: less human effort, less manufacturing space, less investment in tools, and less engineering time to develop a new product

Eras of Marketing in US

production, selling, marketing concept, customer relationship

flexible distribution of profits and losses is considered an advantage of an LLC because

profits/losses do not have to be distributed in proportion to the money each person invests

federal crime insurance

provides insurance to property owners in high-crime areas

options for pure risks

reduce, avoid, self-insure against, by insurance against the risk

corporate policy

refers to the position a firm takes on social and political issues

speculative risk

result in either profit or loss

product mix

the combination of product lines offered by a manufacturer

product differentiation

the creation of real or perceived product differences

premium

the fee the insurance company charges, the cost of the policy to the insured

Public relations (PR)

the function that gauges public opinion, changes policies and procedures in response to the public's requests, and executes a program of action and information to earn public understanding and acceptance

reference group

the group an individual uses as a reference point in forming beliefs, attitudes, values, or behavior

limited liability

the limited partners' liability for the debts of the business is limited to the amount they put into the company (personal assets are not at risk)

core time

the period of the day when all employees are expected to be at their job stations

transparency

the presentation of a company's facts and figures in a way that is clear and apparent to all stakeholders

trade protectionism

the use of government regulations to limit the import of goods and services

exclusive distribution

the use of only one retail outlet in a given geographic area

during the production era it was believed that one should purchase as much as you can bc

there's a limitless market for the product

marketing research

they analyze markets to determine opportunities and challenges and to find the info they need to make good decisisions

features of enterprise zones

they're located in economically distressed areas and offer businesses lower taxes and other support

pure risk

threat of loss w/ no chance for profit, such as threat of fire/accident/theft

3 elements of Taylor's (scientific" Approach

time, methods, and rules of work

apprentice programs

trainee works alongside an experienced employee to master the skills and procedures of a craft

brand

a name, symbol, or design (or combo) that identifies the goods or services of one seller or group of sellers and distinguishes them from the goods and services of competitors

claim

a statement of loss that the insured sends to the insurance company to request payment

goals

are the broad, long-term accomplishments an organization wishes to attain

organizing

begins with determining what work needs to be done

computer-aided manufacturing (CAM)

bring computers directly into the production process

home based workers

can choose their own hours, interrupt work for child care or other tasks, and take time out for personal reasons

variable costs

change according to the level of production

ISO 9001

common name given to quality management and assurance standards

leaders must

communicate a vision, establish corporate values, promote corporate ethics, embrace change, AND stress accountability and responsibility

human relations skills

communication and motivation; they enable managers to work through and with people

business ownership policy

companies may buy a package that includes property and liability insurance

company background

company operations, legal considerations, areas of risk and opportunity

intranet

companywide network, closed to public, uses Internet type technology

benchmarking

compares an organization's practices, processes, and products against the world's best

integrity-based ethics codes

define the organization's guiding values, create an environment that supports ethically sound behavior, and stress shared accountability

brand loyalty

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

target costing

demand-based, means we design a product so it not only satisfies customers but also meets the profit margins set

flat organizational structures

fewer layers of management and a broad span of control

financial plan

5 year projections for income, expenses, funding sources

small business administration

A U.S. government agency that advises and assists small businesses by providing management training and financial advice and loans.

insurable risk

typical insurance company will cover

4 Ps of marketing managers

Product, Price, Place, Promotion

line organization

direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with everyone reporting to only one supervisor

pull strategy

directs heavy advertising and sale promotion efforts toward consumers

departmentalization

divides organizations into separate units

geographic segmentation

dividing a market by cities, counties, states, or regions

job specialization

dividing tasks into smaller jobs

market segmentation

dividing the total market into groups with similar characteristics

division of labor

dividing up the tasks

according to Fayol, this principle states that functions within an organization are to be divided into areas of specialization

division of labor

strategic planning

done by top management and determines the major goals of the organization and the policies, procedures, strategies, and resources it will need to achieve them

5G

fifth generation wireless

social commerce

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

public data

free and accessible includes electronic traces we leave when posting to social media, sending email, and using search engines

purchasing

function that searches for high-quality material resources, finds the best suppliers, and negotiates the best price for quality goods and services

challenges of working at home

getting new customers, managing time, keeping work and family tasks separate, abiding by city ordinances, managing risk

extrinsic reward

given to you by someone else as recognition for good work (ex: pay raises, praise, and promotions)

flextime plan

gives employees some freedom to choose which hours to work, as long as they work the required number of hours or complete their assigned tasks

open shop agreement

gives workers the option to join or not join a union if one exists

empowerment

giving employees the authority to correct a problem without first checking with management

enabling

giving workers the education and tools they need to make decisions

5 influences on environmental scanning

global, technological, sociocultural, competitive, and economic influences

value

good quality at a fair price

Civil Rights Act of 1991

governs sexual harassment of both men and women

local area network (LAN)

group of connected devices in one physical location, such as a home or office

cross-functional self-managed teams

groups of employees from different departments who work together on a long-term basis (as opposed to the temporary teams established in matrix-style organizations)

inverted organization

has contact people at the top and top management at the bottom

limited partnership

has one or more general partners and one or more limited partners

operations management planning

helps solve many of the problems in the service and manufacturing sectors

contingent workers

include part-time workers (workers paid by temporary employment agencies), seasonal workers, independent contractors, interns, co-op students, and freelancers

fringe benefits

include sick-leave pay, vacation pay, pension plans, and health plans that provide additional compensation to employees beyond base wages

internal customers

individuals and units within the firm that receive services from other individuals or units

right-to-work laws

individuals states have the power to outlaw union shop agreements through these laws

whistelblowers

insiders who report illegal or unethical behavior

pension benefit guaranty corporation

insures pension plans to prevent loss to employees if the company declares bankruptcy or goes out of business

affirmative action

intended to "right past wrongs" by increasing opportunities for minorities and women

ISO

international organization for standardization - set global measures for the quality of individual products

what's a characteristic of a merchant wholesaler?

it's an independently owned firm

amazon avon kodak facebook starbucks

jeff bezos david mcconell george eastman mark zuckerberg howard schultz

horizontal merger

joins two firms in the same industry and allows them to diversify or expand their products

idea behind intrapreneurs

launch new products and generate new profits

factors that affect consumer behavior

learning, reference group, culture, subculture, cognitive dissonance

corporation

legal entity w/ authority to act and have liability apart from its owners

conceptual skills

let the manager picture the organization as a whole and see the relationships among its various parts

limited liability partnership (LLP)

limits partners' risk of losing their personal assets to the outcomes of only their own acts and omissions and those of people under their supervision

chain of command

line of authority that moves from top to lowest levels of a hierarchy

equity theory

looks at how employee's perceptions of fairness affect their willingness to perform

master limited partnership (MLP)

looks like a corporation, acts like a corporation and is traded on the stock exchanges like a corporation but is taxed like a partnership and thus avoids the corporate income tax

micropreneurs

maintain a balanced lifestyle while doing the kind of work they want to do (know their companies never appear on a list of top-ranked businesses but are ok with that)

cover letter

make potential funders want to read your business plan instead of hundreds of others (summarize, short points, address letter to potential investor by name)

intermittent process

makes more sense when responding to specific customer orders (production run is short and producer adjusts machines frequently to make different products)

job rotation

makes work more interesting and motivating by moving employees from one job to another

autocratic leadership

making managerial decisions without consulting others

participative (democratic) leadership

managers and employees work together to make decisions

authority

managers have the right to give orders and the power to enforce obedience

free-rein leadership

managers set objectives and employees are free to do whatever is appropriate to accomplish those objectives

agents/brokers

marketing intermediaries who bring buyers and sellers together and assist in negotiating an exchange but don't take title to the goods (at no point do they own the goods)

venture capitalists

may finance your project - for a price

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

primary data

new studies

Marketers competing on product attributes and image are said to be participating in:

nonprice competition

process layout

one in which similar equipment and functions are grouped together

uninsurable risk

one that no insurance company will cover

small business

one that's independently owned and operated, isn't dominant in its field of operation, meets certain standards of size in terms of employees or annual receipts

reasons people are willing to take entrepreneurial risk

opportunity, profit, independence, challenge,

management team

organization chart, job descriptions, detailed resumes of current and proposed executives

crisis planning

part of contingency planning that anticipates sudden changes in the environment

word-of-mouth promotion

people tell other people about products they've purchased or services they've used

which element of the marketing mix is the most difficult for a manager to control due to the impact it has on customer evaluation of an offering?

price

skimming price strategy

prices a new product high to recover research and development costs and make as much profit as possible while there's little competition

psychological pricing

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

virtual private network (VPN)

private data network that creates secure connections over regular Internet networks

angel investors

private individuals who invest their own money in potentially hot new companies before they go public

Small Business Investment Company (SBIC) Program

private investment companies licensed by the SBA to lend money to small businesses

interfirm

process in which companies work closely together to design, produce, and ship products to customers

human resource management (HRM)

process of determining human resource needs and then recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals

tactical planning

process of developing detailed, short-term statements about what is to be done, who is to do it, and how

networking

process of establishing and maintaining contacts with key managers in your own and other organizations, and using those contacts to weave strong relationships that serve as informal development systems

selection

process of gathering information and deciding who should be hired, under legal guidelines, to serve the best interests of the individual and the organization

environmental scanning

process of identifying factors that can affect marketing success

Customer Relationship Management (CRM)

process of learning as much as possible about present customers and doing everything you can over time to satisfy them or even exceed their expectations with goods and services

contingency planning

process of preparing alternative courses of action the firm can use if its primary plans don't work out

assembly process

puts together components to make a product

4 characteristics of useful management info (technology)

quality, completeness, timeliness, relelance

trial close

question or statement that moves the selling process toward the actual purchase (put on hold or will u be paying for that w/ your store credit card)

direct selling

reaches consumers in their homes or workplaces

restructuring

redesigning an organization so that it can more effectively and efficiently serve its customers

Hawthorne effect

refer to people's tendency to behave differently when they know they're being studied

business intelligence (BI) or analytics

refers to a variety of software applications used to analyze an organization's raw data and derive useful insights from it

economies of scale

refers to the fact that companies can reduce their production costs by purchasing raw materials in bulk

high-low pricing strategy

regular prices are higher than at stores using EDLP, but during special sales they're lower

B2B markets characteristics

relatively few customers, business customers are relatively large, tend 2b geographically concentrated, business buyers generally more ration/ less emotional than ultimate consumers, sales tend to be direct (not always), consumer promotions based more on advertising

Americans with Disabilities Act of 1990 (ADA)

requires employers to give applicants with physical or mental disabilities the same consideration for employment as people without disabilities

line personnel

responsible for directly achieving organizational goals, and include production workers, distribution people, and marketing personnel

marketing intermediaries who sell to ultimate consumers are:

retailers

Internet2

runs the fastest network and supports heavy-duty applications such as videoconferencing, collaborative research, distance education, digital libraries, and full-body simulations known as tele-immersion

scientific management

scientifically study the most efficient ways to do things, determine the single "best way" to perform each task, and then teach others those methods

entrepreneurial attributes

self-directed, self-nurturing, action-oriented, highly energetic, tolerant of uncertainty

Exporting

selling products to another country

volume (or usage) segmentation

separating the market by volume of product use

critical path

sequence of tasks that takes the longest time to complete

Web 2.0

set of tools that allow people to build social and business connections

subculture

set of values, attitudes, and ways of doing things that results from belonging to a certain ethnic group, racial group, or other group with which one closely identifies

culture

set of values, attitudes, and ways of doing things transmitted from one generation to another in a given society

everyday low pricing (EDLP)

set prices lower than competitors and don't usually have special sale (like Trader Joe's and Walmart)

six sigma quality

sets a benchmark of just 3.4 defects per million opportunities, detects potential problems to prevent their occurrence

goal-setting theory

setting ambitious but attainable goals can motivate workers and improve performance if the goals are accepted, accompanied by feedback, and if conditions in the organization pave the way for achievement

Type A (American management approach)

short term employment, individual decision making, idividual responsibility for the outcomes of decisions, rapid evaluation and promotion, explicit control mechanisms, specialized career paths, segmented concern for employees

principle of motion economy

showing how every job could be broken into a series of elementary motions called a therblig

organization chart

shows relationships among people (who's accountable for the completion of specific work, and who reports to whom)

limited liability company (LLC)

similar to an S company but w/o the special eligibility requirements

retailer

a B2C organization that sells to ultimate consumers who buy for their own use (people like you and me)

trademark

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

sole proprietorship

a business owned, and usually, managed, by one person

mentor

a corporate manager who supervises, coaches, and guides selected lower-level employees by introducing them to the right people and generally acting as their organizational sponsor

injuction

a court order directing someone to do something or to refrain from doing something

entrepreneurial team

a group of experienced people from different areas of business who join together to form a managerial team with the skills needed to develop, make, and market a new product

product line

a group of items that are physically alike or intended for a similar market

wholesaler

a marketing intermediary that sells to other organizations, such as retailers, manufacturers, and hospitals

operations management

a specialized area in management that converts or transforms resources, including human resources like technical skills and innovation, into goods and services

esprit de corps

a spirit of pride and loyalty should be created among people in the form

conventional (C) corporation

a state-chartered legal entity w/ authority to act and have liability separate from its owners - its stockholders

job enrichment

a strategy that motivates workers through the job itself

hierarchy

a system in which one person is at the top of the organization and there's a ranked or sequential ordering from the top down of managers and others who are responsible to that person

social audit

a systematic evaluation of an organization's progress

virtual corporation

a temporary network, made of replaceable firms that join and leave as needed

entrepreneurship

accepting the risk of starting and running a business

orientation

activity that initiates new employees into the organization

product placement

advertisers pay to put their products into shows and movies where the audience will see them

staff personnel

advise and assist line personnel in meeting their goals, and include those in marketing research, legal advising, accounting, information technology, and human resource management

demographic segmentation

age, income, and education level

arbitration

agreement to bring in an impartial third party to render a binding decision in a labor dispute

data processing (DP)

aka business technology

appendix

all marketing research on product or service

general partnership

all owners share in operating the business and in assuming liability for the business's debts

total fixed costs

all the expenses that remain the same no matter how many products are sold

clear communication channels

all workers should be able to reach others in the organization quickly and easily

hierarchy of authority

all workers should know to whom they report

capital required

amount of capital needed to commence or continue operations (how funds are meant to be used)

real time

simply means the present moment or the actual time in which an event takes place

SBA

small business administration

job description

specifies the objectives of the job, the type of work, the responsibilities and duties, working conditions, and the job's relationship to other functions

a company can share - to anyone who is interested to raise more money for investment

stock, shares, bonds, or equity

competition-based pricing

strategy based on what all the other competitors are doing

time-motion studies

studies of the tasks performed in a job and the time needed for each

job analysis

study of what employees do who hold various job titles

psychographic segmentation

study the target group's personality, values, and lifestyle

franchise agreement

an agreement whereby someone w/ a good idea for a business (the franchisor) sells the rights to use the business name and sell a product or service (the franchise) to others (franchisees) in a given territory)

union

an employee organization whose main goal is representing its members in employee-management negotiations over job-related issues

Service Corps of Retired Executives (SCORE)

an important source of info for small businesses

rule of indemnity

an insured person or organization cannot collect more than the actual loss from an insurable risk

limited partner

an owner who invests money in the business but doesn't have any management responsibility or liability for losses beyond his or her investment

general partner

an owner/partner who has unlimited liability and is active in managing the firm

Web 3.0

another generation of web innovators plans to expand the utility of the Internet by enabling an unprecedented level of decentralization and security

phishing

another type of online security threat

direct marketing

any activity that directly links manufacturers or intermediaries w/ the ultimate consumer

unlimited liability

any debts or damages incurred by the business are your debts and you must pay them (period)

publicity

any info about an individual, product, or organization that's distributed to the public through the media and is not paid for or controlled by the seller

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

job specifications

are a written summary of the minimal education and skills a person needs to do a particular job

lockout

attempt by management to put pressure on union workers by temporarily closing the business

Gantt chart

bar graph that shows what projects are being worked on and how much has been completed at any given time

information systems (IS)

business technology in 1980s, changed from supporting to doing business

information technology (IT)

business technology, change business by storing, retrieving, and sending info efficiently

Importing

buying products from another country

motivators

certain factors that made employees productive and gave them satisfaction

risk

chance of loss, the degree of probability of loss and the amount of possible loss

computer-aided design (CAD)

changed production techniques is the use of ocmputers to design products

decision making

choosing among two or more alternatives

ISO 14001

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

National Labor Relations Act of 1935 established ...

collective bargaining in labor-management relations

job enlargement

combines a series of tasks into one challenging and interesting assignment

bundling

combines goods and/or services for a single price

integrated marketing communication (IMC)

combines the promotional tools into one comprehensive, unified promotional strategy

promotion mix

combo of promotional tools an organization uses

location analysis

comprehensive demographic analysis of consumers

materials requirement planning (MRP)

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

net neutrality

concept that the Internet service providers (ISPs) should provide the same level of access to all website regardless of their content

just in time (JIT) inventory control

concept to help cut costs

quality

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

channel of distribution

consists of a whole set of marketing intermediaries, such as agents, brokers, wholesalers, and retailers, that join together to transport and store goods in their path (or channel) from producers to consumers

business-to-business (B2B) market

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

consumer market

consists of all the individuals or households that want goods and services for personal consumption or use and have the resources to buy them

supply chain (or value chain)

consists of all the linked activities various organizations must perform to move goods and services from the sources of raw materials to ultimate consumers

Promotion

consists of all the techniques sellers use to inform people about and motivate them to buy their products or services

a total product offer

consists of everything consumers evaluate when deciding whether to buy something

online retailing

consists of selling goods and services to ultimate consumers online

broadband technology

continuous connection to the Internet that allows users to send and receive files quickly

extranet

controlled private network that lets more than one company access the same info or allows people on different serves to collaborate and do so w/o granting access to the organization's entire network

professional liability insurance (aka malpractice insurance)

covers people found liable for professional negligence

learning

creates changes in an individual's behavior resulting from previous experiences and information

intrapreneurs

creative people who work as entrepreneurs within corporations

marketing concept (3 parts)

customer orientation, service orientation, profit orientation

UPCs

Universal Product Codes

health savings accounts (HSAs)

tax-deferred savings accounts linked to low-cost, high deductible health insurance policies

modular layout

teams of workers combine to produce more complex units of the final product

program evaluation and review technique (PERT)

technique for monitoring the progress of production developed in the 1950s by the US Navy

relationship marketing

tends to lead away from mass production and toward custom-made goods and services

bureaucracy

term for an organization with many layers of managers

technical skills

the ability to perform tasks in a specific discipline or department

production management

the activities that helped firms create goods

marketing

the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large

vertical merger

the combination of two or more firms involved in different stages of producing the same good or service

corporate social responsibility (CSR)

the concern businesses have for the welfare of society, not just for their owners

production

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

management

the process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other organizational resources

break-even analysis

the process used to determine profitability at various levels of sales

merger

the result of two firms joining to form one company

recruitment

the set of activities for obtaining the right number of qualified people at the right time (purpose to select those who best meet the needs of the organization)

informal organization

the system that develops spontaneously as employees meet and form cliques, relationships, and lines of authority outside the formal organization

cognitive dissonance

type of psychological conflict that can occur after a purchase (may have doubts about whether they got the best product at the best price)

union shop agreement

under which workers don't have to be members of a union to be hired but must agree to join within a prescribed period

shop stewards

union officials who work permanently in an organization and represent employee interests on a daily basis and supervisory-level managers"

conglomerate merger

unites firms in completely unrelated industries in order to diversify business operations and investments

sexual harassment

unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature that creates a hostile work environment

mediation

use of third party, who encourages both sides in a dispute to continue negotiating and often makes suggestions for resolving the matter

networking

uses communications technology and other means to link organizations and allow them to work together on common objectives

selective distribution

uses only a preferred group of the available retailers in an area

insider trading

uses private company information to further insiders' own fortunes or those of their family and friends

brand equity

value of the brand name and associated symbols

hygiene factors

what Herzberg called other elements of the job or manetenance factors

partnership

what an organization is called when two or more people legally agree to become co-owners of a business

marketing plan

what makes product more desirable

core competencies

when a firm has completed its outsourcing process, those functions it can do as well as or better than any other organization in the world

centralized authority

when decision making is concentrated at the top level of management

decentralized authority

when decision making is delegated to lower-level managers and employees more familiar with local conditions than headquarters management could be

primary boycott

when labor encourages both its members and the general public not to buy the products or services of a firm engaged in a labor dispute

organizational (or corporate) culture

widely shared values w/in an organization that foster unity and cooperation to achieve common goals

brand name

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

subordination of individual interests to the general interest

workers are to think of themselves as a coordinated team

assembly-line layout

workers do a few tasks at a time

telecommuting

working from home via computer

business plan

A detailed written statement that describes the nature of the business, the target market, the advantages the business will have in relation to competition, and the resources and qualifications of the owner(s).

mass customization

tailoring products to meet the needs of a large number of individual customers

Deming Cycle quality control approach steps

PDCA -- Plan Do Check Act

grievance

a charge by employees that management is not abiding by or fulfilling the terms of the labor contract as they perceive it

equity

a manager should treat employees and peers with respect and justice

S Corporation

a unique government creation that looks like a corporation but is taxed like sole proprietorships and partnerships

organization chart

a visual device that shows relationships among people and divides the organization's work (who reports to whom)

coaching

acting as a resource - teaching, guiding, and recommending - but not participating actively or doing the task

fixed-position layout

allows workers to congregate around the product to be completed

leveraged buyout (LBO)

an attempt by employees, management, or a group of private investors to buy out the stockholders in a company, primarily by borrowing the necessary funds

secondary boycott

an attempt by labor to convince others to stop doing business with a firm that is the subject of a primary boycott

steps to business-to-customer in selling process

approach, ask questions, make presentation, close sale, follow up

packages must

attract buyer's attention, protect the goods inside, be easy to open/use, describe and give info about the contents, explain the benefits of the product inside, provide info on warranties/warnings/other consumer matters, give some indication of price/value/uses

business incubators

centers tat offer businesses in critical stage of early development low-cost offices and access to basic services such as accounting, legal advice, and secretarial help

enterprise resource planning (ERP)

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

market

consists of consumers w/ unsatisfied wants and needs who have both resources and the willingness to buy

manufacturing plan

describe minimum plant size, things needed, estimates of cost as well

AI - artificial intelligence

describes machines programmed to think, work, and react like humans

marketing mix

designing a want-satisfying product, setting a price for the product, putting the product in a place where people will buy it, and promoting the product

flexible manufacturing

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

formal organization

details lines of responsibility, authority, and position

benefit segmentation

determining which product benefits your target market prefers and using those benefits to promote a product

one-to-one marketing

developing a unique mix of goods and services for each individual customer

mass marketing

developing products and promotions to please large groups of people

brand manager/product manager

direct responsibility for one brand or product line, and manages all the elements of its marketing mix: product, price, place, and promotion

vestibule training

done in classrooms with equipment similar to that used on the job so employees can learn proper methods and safety procedures before assuming a specific job assignment

what is true as statements related to corporate taxation

double taxation occurs AND stockholders pay income tax on the dividends they receive

personal selling

face-to-face presentation and promotion of goods and services, including the salesperson's search for new prospects and follow-up service after the sale

biological data

finger printing technology, devices that scan retinas, recognize faces, voices and analyze DNA

division of labor

functions are to be divided into areas of specialization such as production, marketing, and finance

top management

highest level, consists of the president and other key company executives who develop strategic plans

brand awareness

how quickly or easily a given brand name comes to mind when a product category is mentioned

niche marketing

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

law of large numbers

if a large number of people or organizations are exposed to the same risk, a predictable number of losses will occur during a given period of life

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

corporate social initiatives

include enhanced forms of corporate philanthropy

Manangement by objectives (MBO)

includes a cycle of discussion, review, and evaluation of objectives among top and middle-level managers, supervisors, and employees

Type J (based on culture of Japan)

includes a focus on trust and intimacy within the group and family

training and development

includes all attempts to improve productivity by increasing an employee's ability to perform

planning

includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives

viral marketing

includes any strategy that encourages people to pass on a marketing message to others, creating exponential growth in the message's influence as the message reaches thousands, even millions

corporate philanthropy

includes charitable donations to nonprofit groups of all kinds

organizing

includes designing the structure of the organization and creating conditions and systems in which everyone and everything work together to achieve the organization's goals and objectives

corporate responsibility

includes essentially everything that has to do with acting responsibly w/in society

supervisory management

includes those directly responsible for supervising workers and evaluating their daily performance (often first-line managers or supervisors bc they're the first level above workers)

3 disadvantages of incorporating

initial cost, extensive paperwork, double taxation

steps for successful social media promotional campaign

know ur customer base, create images and videos ur customers will want to see and post something new everyday, develop ful/suitable hashtags, set up a publishing calendar to ensure consistency in posting, engage w/ customers - offer contests and entertainment, follow back and reply to ur customers

leaving a (?) means owners can leave an ongoing business for future generations

legacy

problem solving

less formal, usually calls for quicker action to resolve veryday issues

on-the-job training

lets the employee learn by doing, or by watching others for a while and then imitating them, right at the workplace

job sharing

lets two or more part-time employees share one full-time job

sampling

letting consumers have a small sample of the product for no charge

Maslow's Hierarchy of Needs (bottom to top)

physiological, safety, social, esteem, self-actualization

virus

piece of programming code inserted into other programming that usually lies dormant until triggered to cause some unexpected and usually undesirable event

cookies

pieces of info such as registration data or user preferences that the browser sends back to the server whenever you return to that website

facility location

process of selecting a geographic location for a company's operations

departmentalization

process of setting up individual departments to do specialized tasks

operational planning

process of setting work standards and schedules necessary to implement the company's tactical objectives

test marketing

process of testing products among potential users

Statistical Process Control (SPC)

process of testing statistical samples of product components at each stage of production and plotting the test results on a graph

enterprise risk management (ERM

program defining: which risks the program will manage, what risk management processes/technologies/investments will be required, and how the risk management efforts will be coordinated across the firm

sales promotion

promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities

national flood insurance association

provides compensation for damage caused by flooding and mud slides to properties located in flood-prone arenas

federal crop insurance

provides compensation for damaged crops

unemployment compensation

provides financial benefits, job counseling, and placement services for unemployed workers

federal housing administration

provides mortgage insurance to lenders to protect against default by home buyers

social security

provides retirement benefits, life insurance, health insurance, and disability income insurance

data

raw, unanalyzed, and unorganized facts and figures

target marketing

selecting which groups or segments an organization can serve profitably

crowdfunding relies on

small contributions from the general public

ethics

society's accepted standards of moral behavior (behaviors accepted by society as right rather than wrong)

computer-integrated manufacturing (CIM)

software programs that unite CAD and CAM

matrix organization

specialists from different parts of the organization work together temporarily on specific projects, but still remain part of a line-and-staff structure

objectives

specific, short-term statements detailing how to achieve the organization's goals

price leadership

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

form utility

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

strikebreakers (scabs)

workers hired to do the jobs of striking employees until the labor dispute is resolved

helping

working with the employee and doing part of the work if necessary

insurance policy

written contract between the insured, whether an individual or organization, and an insurance company that promises to pay for all or part of a loss by the insured

SWOT analysis

strengths, weaknesses, and the opportunities and threats

steps for PERT

- analyze and sequence tasks that need to be done -estimating the time needed to complete each task -drawing a PERT network illustrating the information from steps 1/2 -identifying the critical path

disadvantages of corporations

1)initial cost 2)double taxation 3)extensive paperwork 4)two tax returns 5)size 6)difficulty of termination 7)possible conflict w/ stockholders and board of directors

advantages of corporations

1)limited liability 2)ability to raise more money for investment 3)size 4)perpetual life 5)ease of ownership change 6) ease of attracting talented employees 7) separation of ownership from management

advantages for LLC

1)limited liability 2)choice of taxation 3)flexible ownership rules 4)flexible distribution of profits and losses 5)operative flexibility

advantages of partnership

1)more financial resources 2)shared management and pooled/complementary skills and knowledge 3)longer survival 4)no special taxes

LLC disadvantages

1)no stock 2)fewer incentives 3)taxes 4)paperwork

disadvantages of partnerships

1)unlimited liability 2)division of profits 3)disagreements among partners 4)difficulty of termination

six Ds of decision making

1. Define the situation 2. Describe and collect needed information 3. Develop alternatives 4. Decide which alternative is best 5. Do what is indicated 6. Determine whether the decision was a good one and follow up

unity of command

Each worker is to report to one, and only one, boss.

a company similar to an S corporation but w/o the special eligibility requirements is an

LLC (limited liability company)

acquisition

One company's purchase of the property and obligations of another company.

staffing

Recruiting, hiring, motivating and retaining the best people available to accomplish the company's objectives.

entreprise zones

Specific geographic areas to which governments try to attract private business investment by offering lower taxes and other government support

degree of centralization

The amount of decision-making power vested in top management should vary by circumstances.

Formula for Break Even Point

Total fixed cost / price of one unit - variable costs (VC) of one unit

database

electronic storage file for information

compliance-based ethics codes

emphasize preventing unlawful behavior by increasing control and penalizing wrongdoers

expectancy theory

employee expectations can affect motivation

compressed workweek

employee works the full number of hours, but in fewer than the standard number of days

cafeteria-style fringe benefits

employees can choose the benefits they want up to a certain dollar amount

agency shop agreement

employees may hire workers who are not required to join the union but must pay a special union fee or regular union dues

penetration strategy

enables the firm to penetrate or capture a large share of the market quickly

Office of Federal Contract Compliance Programs (OFCCP)

ensures that employers comply with nondiscrimination and affirmative action laws and regulations when doing business with the federal government

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're not

secondary data

existing data, since you aren't the first one to gather it (but it's what marketers should gather first to avoid unnecessary expense)