Foundations Final

Mintzberg

(behavioral theorist) management controls the direction of a company and establishes the culture while balancing routine and change

Barnard

(behavioral theorist) management should meet both individual and company needs while fostering community and service

Follet

(behavioral theorist) managers should foster collaboration so workers feel empowered and not on the backend of authority

Drucker

(behavioral theorist) managers should make employees a part of goal-setting/decision-making process

Line Extension

(existing brand + existing product category) when a company leverages their brand equity to enter a new product category (ex: apple is originally known for their computers but npw excels into the smartphone industry with the iPhone & iPad)

Frederick Taylor

(father of scientific management)- train/specialize workers -> decrease time spent on tasks -> increase efficiency -believed management should be strict with clear instructions & expectations. workers should be incentivized based on output

Multi-Brand Strategy

(new brand + existing product category) when a company markets multiple brands in the same product category to target different customer segments/ price points (ex: black and decker is a tool company that targets consumers looking for affordable tools but they also own dealt, a tool Brand that targets consumers looking for high-performance power tools).

Diversification

(new brand + new product category) when a company creates an entirely new brand cetner a new product category (ex: Toyota created Lexus as a luxury car brand to appeal to a premium market segment, seperate from its reliable, environmentally sustainable image

Similarities between Taylorism and Fordism

-both focus on maximizing productivity and minimizing costs -both emphasize routine, repetitve taste to ensure consistency/predicitbility of production -both reduce workers autonomy and specialize labor -both rely on strong managerial control/oversight

3 Factors of Production

1) land 2) labor 3) capital

5 Forces of an Industry

1) power of buyers 2) threat of new entrants 3) competitive rivalry 4) threat of substitutes 5) power of suppliers

Made to Stick Model

1) simple 2) unexpected 3) concrete 4) credible 5) emotional connection 6) makes a good story (Succes)

What is required for a market to do well?

1) transaction costs are kept in check 2) people can be trusted 3) competition is fostered 4) property rigts are protected 5) externalities are curtailed 6) information flows smoothy

Implementation

Fordism -> large-scale mass production Taylorism -> individual tasks

Nature of Work

Fordism -> machines control pace= greater monitoring Taylorism -> workers are studied to eliminate wasted movements

Role of machines:

Fordism -> machines set the pace of work Taylorism -> optimize human labor w/ existing systems (no machines)

Labor Process

Fordism -> replace human labor w/ machines Taylorism -> improve efficiency of workes w/o machines

Worker selection

Fordism -> workers are interchangable Taylorism -> workers have a specific role through "scientific selection"

Differences between Taylorism and Fordism

Foridsm-> mechanize/ automate production via assembly line Taylorism -> rationalize workers processes via time/motion studies

GDP Equation

GDP = C + I + G + NX (consumption + income + government spending + net exports/imports)

4 P's of Marketing

Product, Price, Place, Promotion

What is the AIDA Model?

a framework that describes the stages a customer goes through during the purchasing decision

Porters Competitive Strategy Matrix

a framework that helps companies indetify strategies to gain a competitve advantage

Gross Domestic Product (GDP)

a measure of the value of all goods and services produced in a country during a specific period of time

Free Trade Agreement

a pact between two or more nations to reduce barriers to imports and exports among them

Balance Sheet

a sheet that shows what a company owns vs. owes. It provides a snapshot of a companys financial position at a specific point in time. Assets= liabilities + equity

Income Statement

a statement that describes revenues and expenses a company has generated over a specific period of time

Cash Flow Statement

a statement that describes the cash inflow and outflows of a company across operating, investing, and financing activities

Taylorism

a theory management that analyses and syntehsizes workflows to imrpove efficiency and labor productivity

Capitalism

an econimic system in which private capital or wealth is used in the production or distribution of goods and prices are determined heavily in a free market

Phase 3- Segmentation

as national markets mature, companies segment based on demographics and psychographics to create unique products to meet certain consumer identities (ex: Gatorade offers Gatorade zero, Gaterlyte, Gatorade GZ, propel, etc.

AIDA Model

attention- people become aware of the product interest- people learn why they like or find use of a product desire- people have an emotional connection to a product action- people purchase the product (CTA)

Hierarchy of Effects Model

awareness and knowledge (cognitive) liking and preference (affective) conviction and purchase (behavioral)

Growth

build brand preference/ increase market share

Introduction

build product awareness/increase market share

Phase 2- Unification

creation of a national market with mass appeal, supported by widespread distribution and advertising (coca-cola transitioned from a localized beverage in Atlanta to a national brand. Their ads promote coke as a drink for "everyone, everywhere"

Context

cultural, technological, and legal factors that limit possibilities (ex: tuition, location, size, social scene)

What are the 5 C's of marketing?

customer needs, company skill, competition, collaborators, and context

Maturity

defend market share/ while maximizing profit

Aristotles 3 Arts of Persuasion

ethos, pathos, logos

Behavioral Management

focuses on the role of human behavior, motivation, and relationships in the workplace. emphasizing humans arent merely tools for productivity

Protectionism

government policies to restrict international trade to help domestic industries.

Strategy

how a company brings value to customers and differentiates from competitors

What is the Product Life cycle?

introduction, growth, maturity, decline

Discontinue

liqidate the remaining inventory or sell it to another company that is willing to continue to product

Phase 1-Fragmented Marketing

local production for local tastes with no vertical or horizontal integration confided by geographic boundaries (ex: independent coffee shops -> Stumptown coffee is a coffee roaster/retail company that started in Portland in 1999 and didn't expand until the late 2000s/early 2010s

Porters Competitve Strategy Matrix Picture

low price, unique product (source of competitve advantage)

Decline

maintain, harvest, discontinue the product

The Gilbreths

make tasks more simple to reduce worker fatigue -used motion studies to analyze tasks and increase productivity. also advocated for considering the mental well-being of workers

Toyota Production System (TPS)

manufactiruing method that focuses on eliminating waste, increasing efficiency, and continuously imrpoving processes to align production with market demands.

BCG Matrix

model that helps companies identify where their product lines fall in the market, based on their relative market share/growth

price

need to be set at a level the market can support; profitable

Collaborators

people the firm enlist to help them and motivate them (ex: admissions, athletic coaches)

3 phases of marketing

phase 1- fragmented market phase 2- unification phase 3- segmentation

Limited Liability

protected individual investors from being held personally accountable for company debts and obligations. Encouraged investors to invest in corporation without fear of losing personal assets.

Harvest

reduce costs and continue to offer it to loyal customer segments

Ethos

refers to being credible/trustworthy -Application: brands build credibility through customer testimonials, expert/influencer endoresements, certifications, and reputation

Maintain

rejuvanate the product by adding new features/finding new users

Bonds

represent loans made by an investor to corporations or governments and provide them with fixed income through interest payments/return of principal

Stocks

represent shares of ownership in a company and provides investors with a claim on a companys profits/ potential captial gains

Lean Manufacturing

systematic reduction of non-value-adding activities while ensuring high quality and efficient resource use -Examples of non-value-adding activities -Overproduction -Excess inventory -Overprocessing

Scientific Management

that focuses on improving efficiency, productivity, and standardization through task-oriented approaches that emphasize systematic processes and measurable improvements

Product Positioning

the art of tailoring the image and presentation of a product or service to appeal to a selected market segmentation

Balance of Trade

the difference between the value of a country's exports and total imports

Mercantilism

the economic idea that a nation's wealth and power is best serbed by increasing exports and limiting imports.

Fordism

the mass production of inexpensvie goods with high wages for workers

Customer needs

the needs a firm must satisfy (ex: higher education, networking, research opportunities)

Strategic Planning

the ongoing process of using available knowledge to document a company's intended direction

Strategic Thinking

the process of considering a company's long-term objective and positioning while balancing immediate operational needs

Management

the process of getting the right things done the right way with the involvement of other people -right things= anything that supports the org. strucutre -right way= on time, ethical, within budget

place

the right product or service needs to be accesible to the right consume so that they can easily find it and buy it

Company skills

the special competence a firm possesses in order to satisfy

Brand equity

the value a brand adds to a product or service beyond its functional use. Based on consumer perceptions, loyalty, and associations with the brand

Competition

those who compete with the firm in meeting customer needs (ex: money, qualified professors, tutors, acadeic centers/buildings)

Insiders

use financial statements to allocate company resources, assess risk, asses performance, determine profitability, and make operation/ strategic decisions

Outsiders

use financial statements to understand profitability and assess risk of a company for their personal interest

Pathos

using emotional appeal to connect with an audience -Application: brands appeal to customers with emotion by implementing storytelling, imagery, and music

Logos

using logic, reason, or factorial evidence to persuade -Application brand use data/ stats about the quality, features, or value of a product to appeal to customers

promotion

ways/efforts a company takes to make sure their product or service is known by consumers

product

what a company sells whether it be a physical good or service

Competitive Advantage

when a company can create value for customers that exceeds the value competitors create for customers through core competencies

M-Form

when a company is decentralized and divded into semi-autonomous divisions, each responsible for a specific product or region

U-Form

when a company is managed as a singe unit with centralized decision making (more people based)

Absolute advantage

when a country can produce a good at a lower cost than any other country

Comparative advantage

when a country can produce a good at a lower opportunity cost than another country