Intro to Bus Final Exam

FMOT

"First moment of truth" - the three to seven seconds when someone notices an item on a store shelf and makes up their mind about it. - coined by Procter & Gamble •This instant is considered to be one of its most important marketing opportunities. •P&G recently created a position entitled Director of First Moment of Truth, or Director of FMOT to produce sharper, flashier in-store displays. There is a 15-person FMOT department at P&G headquarters in Cincinnati as well as 50 FMOT leaders stationed around the world

Mass production

"One for All" Mass production: manufacturing many identical goods at once (e.g., canned goods, over-the-counter drugs, and household appliances) •Emphasis is on keeping manufacturing costs low by producing uniform products using repetitive and standardized processes •Born out of Industrial Revolution (e.g., Henry Ford's Model T)

push-back against unicorns

"Part of the problem seems to be that nobody these days is content to merely put their dent in the universe. No, they have to ****ing own the universe. It's not enough to be in the market, they have to dominate it. It's not enough to serve customers, they have to capture them." ◦David Heinemeier Hanson Notion of success is narrow 2. Grow Big Fast mentality does not give time to lay down roots of a company

What makes a team great?

"Who is on a team matters less than how the team members interact, structure their work, and view their contributions."

Performance appraisal

"a comparison of actual performance with expected performance to determine an employee's contributions to the organization and to make decisions about training, compensation, promotion, and other job changes." •The manager establishes performance standards. •The employee works to meet the standards and expectations. •The employee's supervisor evaluates the employee's work in terms of quality and quantity of output and various characteristics such as job knowledge, initiative, relationships with others, and attendance and punctuality. •Following the performance evaluation, reward (pay raise) and job change (promotion) decisions can be made. If work is unsatisfactory, the employee may be put on a performance improvement plan,

Competitive advantage

"a set of unique features of a company and its products that are perceived by the target market(s) as significant and superior to those of the competition." -also referred to as "differential advantage"

Marketing

"activities, a set of institutions and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large" (American Marketing Association)

promotion

"an attempt by marketers to inform, persuade, or remind consumers and B2B users to influence their opinion or elicit a response" •The goal is to stimulate action from the people or organizations of a target market •Businesses: the desired action is for the consumer to buy the promoted item •Not-for-profit organizations: seek a variety of actions with their promotions (e.g., to recycle, to buckle up, to attend the ballet, etc.) nutrition coach

What was Friedman's overarching conclusion?

"there is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud."

bootstrapping

"to finance your company's startup and growth with the assistance of or input from others." Investopedia says it means "to build a company from personal finances or from the operating revenues of the new company."

Juniper Networks estimates that cybercrime will cost businesses what amount in 2019? $1.5 billion $450 million $2 trillion $750 million

$2 trillion

If a company's total liabilities are $110,000 and their total assets are $140,000, how much is owners'/stockholders' equity? $30,000 $250,000 $140,000 $125,000

$30,000

If you have $100,000 in assets and $40,000 in owners equity, what are your liabilities?

$60,000

debits

(dr) record all of the money flowing into an account

Abraham Maslow's Hierarchy of Needs

(starting from the bottom) -physiological -safety -love/belonging -esteem -self-actualization

Arguments for CSR

- Address social issues brought on by business - Wards off government intervention - Businesses well equipped to address issues in dynamic and efficient way - Public support (additional profits)

Arguments against CSR

- Constrains the classic economic goal of profit maximization - Business not equipped to handle social activities - Dilutes primary purpose of business - Limits the power of business

Difference between ethics and corporate social responsibility

- Ethics are guiding principles. ◦Ethics determine was is GOOD vs. BAD or RIGHT vs. WRONG. - Social responsibility is the practical application of ethical concerns for the benefit of society. ◦CSR determines what is allowable and what is not.

Revenues

- funds that flow into a business from the sale of goods and/or services

Income statement

-(Profit-and-Loss Statement) - financial statement that lists an org's annual revenues and expenses resulting in a figure showing its annual profit or loss (or, bottom line) •Note: The bottom line is the most important figure for any business as it shows the liquidity and theoretical value of the business •Different timeframes for a balance sheet versus an income statement •Balance sheet: financial condition at a specific point in time •Income statement: financial results during a period of time, or reporting period (e.g., a month, quarter, or year)

How did the economic environment impact the success (or lack thereof) of Starbucks in 2008?

-2008 was a time of financial crisis - they closed 600 of their stores in the US as well

Management factors that affect growth

-Ability to adapt and change business over time even of the business is successful

Key promotional tools

-Advertising - any form of paid non-personal communication used by an identified sponsor to persuade or inform potential buyers about a product -Personal Selling - person-to-person sales (e.g., cosmetic counters in a store) -Sales Promotions - direct inducements such as premiums, coupons, and package inserts to tempt customers to buy products (e.g., Groupon) -Public Relations - communication efforts directed at building goodwill and favorable attitudes in the minds of the public toward the organization and its products

In what ways did Starbucks fail to consider the sociocultural environment of coffee consumers in Australia?

-Australia's coffee market is one of the biggest in the world. Their cafes have been born out of the Italian culture where it's based around socialization. Starbucks naively imposed the American culture in which coffee is primarily a product or commodity, a way to caffeinate in the morning, with a "to go" focus -They thought they could roll out their business model in a new environment - did not adjust it to fit the Australian culture -Too fast - they were too quick to open new stores without integrating them into the Australian market. This didn't give consumers time to buy-in

What is CSR like in the present?

-CEOs of nearly 200 companies just said their shareholder value is no longer their main objective •The Business Roundtable, a group of CEOs of nearly 200 major U.S. corporations issued a statement with a new definition of the "purpose of a corporation" •The new idea of a corporation drops the notion that they function first and foremost to serve their shareholders and maximize profits •Investing in employees, delivering value to customers, dealing ethically with suppliers and supporting outside communities are now at the forefront of American business goals.

What method of market research was the Coke vs. Pepsi challenge?

-Experimentation (perhaps a bit of focus group, as well)

Access to real data through structured research has allowed us to:

-Identify customers' unmet needs for new and existing products to ensure our teams are executing on the priorities that truly create value. -Test customer messaging to ensure language used in collateral truly resonates with the target customer. -Understand the competitive landscape so we can innovate and stay relevant in the crowded higher education financing marketplace.

Main options for startup financing

-Investment is what you or someone else puts into the company. It ends up as paid-in capital in the balance sheet. This is the classic concept of business investment, taking ownership in a company, risking money in the hope of gaining money later. -Accounts payable are debts that will end up as accounts payable in the balance sheet. Generally, this means credit-card debt. This number becomes the starting balance of your balance sheet. -Current borrowing is standard debt, borrowing from banks, Small Business Administration, or other current borrowing. -Other current liabilities are additional liabilities that don't have interest charges. This is where you put loans from founders, family members, or friends. We aren't recommending interest-free loans for financing, by the way, but when they happen, this is where they go. -Long-term liabilities are long-term debt or long-term loans.

Why did Milton Friedman believe that a company has no "social responsibility" to the public society, and that its only responsibility is to its shareholders?

-Making decisions that are good for society are sometimes "costly" -Spending company money on "social causes" is spending somebody else's money for their own purposes -The appropriate agents of social causes are individuals... -"The stockholders or the customers or the employees could separately spend their own money on the particular action if they wished to do so."

Market Segmentation

-Market Segmentation: process of dividing a market into categories of customer types/segments with similar interests, wants and needs -Once marketers identify a target segment, they can then begin marketing products for that segment.

In what ways did Starbucks' marketing strategy fail?

-Product: their product did not meet the Australian customers' need - Local taste is different - they don't want large sugary drinks. They prefer smaller, more "sophisticated" beverages -Pricing: it was more expensive than their local cafes, which they preferred anyway -Place: it was "too available" - they moved into regional areas and outer suburbs -Promotion: impersonal distribution; wasn't their local barista serving the coffee

Market factors that affect growth

-Size and Characteristics -Competition -Intellectual-property rights -Predictability

Target market

-Target Markets: particular group of people or organizations on which an organization's marketing efforts are focused -Selected from the total market after marketers have developed an understand of the environmental factors involved.

Marketing mix

-This refers to all the marketing programs and activities that a business will use to achieve its marketing goals (and when they'll occur)

Cost of Revenues (Cost of Goods Sold)

-costs that a company incurs to obtain revenues from other companies (e.g., Apple's cost for manufactures to produce phones, computers, and other hardware; licensing fees to distribute music, movies, etc., and others is approx. $140,000 million) -Cost of Goods Sold - costs of obtaining and transforming materials for making the physical products sold by a company during the year •Gross Profit: simple profit figure calculated from the company's revenues (from selling their product) minus the cost of revenues

sale on credit

-debit acts. receivable -credit revenue acct.

Sales for cash

-debit cash account -credit revenue account

take out a loan

-debit cash acct -credit loans payable acct

Receive cash in payment of acct. receivable

-debit cash acct. -credit acct. receivable acct.

purchase inventory from supplier on credit

-debit inventory acct -credit accts. payable acct.

purchase inventory from supplier for cash

-debit inventory acct. -credit cash acct

repay a loan

-debit loans payable acct -credit cash acct

purchase supplies from supplier on credit

-debit supplies expense acct. -credit acct. payable acct.

Purchase supplies from supplier for cash

-debit supplies expense acct. -credit cash acct.

Pay employees

-debit wages expense and payroll tax accts. -credit cash acct.

________ are deductible against income, so they reduce taxable income. _______ are not deductible against income.

-expenses -assets

What is the role of the business plan?

-explaining exactly how much money you need, and where it's going to go, and how long it will take you to earn it back. -summary and pitch -part of a loan application

assets

-listed on the left-hand side of a balance sheet -things of value owned by a company which can be converted to cash (or already is cash)

If liabilities > assets, owner's equity is ________.

-negative •assets are insufficient to pay off all debts, and the company is bankrupt. If the company goes out of business, the owners will not get cash and some creditors will not be paid.

•Amazon bases its ________ on what customers have bought in the past, the items in their virtual shopping cart, what items the customer has ranked or reviewed after purchase and what products the customer has viewed when visiting the site. Amazon also uses __________ such as click-through rates, open rates and opt-out rates to further decide what recommendations to push to which customers.

-recommendations -key engagement metrics

Place

-refers to where and how customers get access to the products they purchase (e.g., a retail store, via digital device, direct delivery, etc.) -It's the channel that brings the product to the consumer

Pricing

-selecting the best price to sell a product -Need to find a profitable middle ground between covering direct/indirect costs and not steering customers towards lower-priced alternatives

What should have Pepsi done?

-should have worked harder on getting people to make Pepsi a habit. For anyone who picked Pepsi, they should have handed them a coupon for a free case—heck, you could even give them a case from a Pepsi truck parked right outside the mall. Further, if they could collect the person's mailing address (remember, this was before email was invented), Pepsi could mail them another coupon for a free case of Pepsi. Then, give them another, and then another. -Mail the new Pepsi drinkers another coupon every two weeks for the next three months. What's the cost to Pepsi of eight cases of soda? Maybe $36? That's a whole lot less than the average person spends on soda per year. -Then, after a few months, send them a nifty Michael Jackson T-shirt or a copy of his newest single (he was their celebrity brand messenger at the time). It should be something that they would use to identify with Michael Jackson and signal to the world that they're a Michael Jackson fan and a proud Pepsi drinker.

SWOT Analysis

-strengths -weaknesses -opportunities -threats

Marketing Research

-the systematic and objective study of customers and competitors in an industry -Identifies what consumers need and want and how to best meet those needs -Identifies the competitors in an industry and how to differentiate the product/service based on what already exists

Why is there an overpopulation of unicorns?

. Get big fast (GBF) strategy is loved by investors ◦Expand at high rate through large funding rounds and price cutting to generate market share 2. Company buyouts ◦In low-interest rate and slow growth environment, large companies focus on acquisitions instead of developing new products in-house 3. Increase in private capital ◦Average age of tech company when going public in 1999?: 4 years ◦Average age of tech company when going public in 2019?: 11 years 4. Prevent IPO ◦Fears of undervaluation in the public market 5. Technological advancements ◦Mobile smartphones, P2P platforms, and Cloud Computing make economies of scale possible!

What are three takeaways from the Pepsi Challenge?

1) Coke was too jumpy. They overreacted emotionally out of fear. Bad move. 2)The brand attachment to Coke was so strong, people were willing to look past what could have been their new favorite to keep the brand because they had become so comfortable considering themselves a Coke drinker. 3)Ultimately, the Pepsi campaign failed in its execution because it didn't do a good enough job changing consumers' buying habits. The creative vision behind the campaign was fantastic. It made an also-ran a household name. It was powerfully viral and certainly must have gotten people to think about switching to Pepsi. But, it failed to make consumers switch. While Pepsi eventually picked up market share, did it some from celebrity endorsements or from the Pepsi Challenge? One thing's for sure: there wasn't a sales spike after the Pepsi Challenge.

Steps of Art of Innovation (Guy Kawasaki)

1) Make meaning 2)Make a mantra 3)jump to the next curve 4)Roll the dice 5)Don't worry be crappy 6)Let 100 flowers blossom 7)Polarize people 8)Churn baby churn 9)Niche thyself 10)Perfect your pitch 11)Don't let the bozos grind you down

Two parts of Human Resources Management

1)Acquiring talent 2)Nurturing talent

Marketing intermediaries in the Distribution channel

1)Agents: sales representatives of manufacturers and wholesalers; Brokers are entities that bring buyers and sellers together. Both agents and brokers are usually hired on commission basis by either a buyer or a seller. Agents and brokers are go-betweens whose job is to make deals. They do not own or take possession of goods. 2)Industrial distributors: independent wholesalers that buy related product lines from many manufacturers and sell them to industrial users (e.g., aircraft manufacturing, mining, and petroleum industries). 3)Wholesalers: firms that sell finished goods to retailers, manufacturers, and institutions (such as schools and hospitals). Historically, their function has been to buy from manufacturers and sell to retailers. 4)Retailers: firms that sell goods to consumers and to industrial users for their own consumption 5)Nontraditional Channels: internet, infomercials, kiosks, etc.

How to execute and integrated marketing campaign

1)Alignment 2)Clear leadership 3)Goals 4)Clear workflow

According to Susan McPherson, what was expected for corporate responsibility in 2019?

1)As investors continue to prioritize impact, measurement becomes a competitive advantage. 2)Impact is here to stay in the boardroom. 3)Time's up on meeting diversity and inclusion goals. 4)Employees take the wheel. 5)It's the age of radical transparency. 6)Companies must step up to address the opportunity gap.

What are the three features of a financial statement?

1)Balance sheet 2)Income statement 3)Cash Flow Statement BIC

Contributing factors to the decreased business life span

1)Cloud & mobility 2)the rise of the knowledge worker 3)changing demographics 4)redefined organizational structure 5) big data

How did Coke respond to the Pepsi Challenge?

1)Coke got jumpy. They felt compelled to respond. They started issuing press releases questioning the results and responded with ads saying Coke was better. They came across as defensive and paranoid. 2)let's be more like them and change the secret formula to copy Pepsi. Bluntly, if you can't beat 'em, join 'em.-->people didn't like this; wanted the old Coke

16 cognitive biases that can kill your decision making

1)Confirmation bias 2)Conformity bias 3)Authority bias 4)Loss-aversion bias 5)False-causality bias 6)action bias 7)self-serving bias 8)framing bias 9)ambiguity bias 10)strategic misrepresentation 11)bandwagon bias 12)projection bias 13)pro-innovation bias 14)anchoring bias 15)status-quo bias 16)feature positive effect

4 types of competitive advantage

1)Cost - maintaining profit margin at lower costs 2)Product/3)service differentiation - includes brand names, image, product reliability, service quality, etc. 4)Niche - serving a specific segment of the population (and doing so really well)

Three major types of assets

1)Current Asset - asset that can or will be converted into cash (liquidated) within a year •On the balance sheet, current assets are typically listed in order by of ease liquidity 2)Fixed Asset - asset with long-term use or value (e.g., land, buildings, or equipment) •With time, the asset loses values (e.g., as equipment wears down) so accountants also calculate the depreciation (they calculate its useful life in years, divide its worth by that many years, and subtract the resulting amount each year) - see balance sheet on previous slide •Example: a $5,000 machine is projected to last 10 years. Each year, it will depreciate $500. So, after one year it is worth $4,500, after the second year, it is worth $4,000, and so on. 3)Intangible Asset - nonphysical asset that has economic value in the form of expected benefit •Example: fees paid by others for rights to your product (patents, trademarks, copyrights, franchises)

2 different categories of liabilities

1)Current Liabilities - debts that must be paid within one year •Includes Accounts Payable (or, Payables): unpaid bills to supplies for materials as well as wages and taxes due within the coming year 2)Long-term Liabilities - debts that are not due for at least a year •Typically represent borrowed funds on which the company must pay interest

How to improve the hiring process:

1)Don't post "phantom" jobs 2)design jobs with realistic requirements 3)reconsider your focus on passive candidates 4)understand the limits of referrals 5)measure the results 6)persuade fewer people to apply 7)test candidates' standard skills 8)be wary of vendors bearing high-tech gifts 9)revamp your interviewing process 10)Recognize the strengths and weaknesses of machine-learning models

4 warnings when starting a small business

1)Don't take private placement, angels, friends, and family as good sources of investment capital just because they are described here or taken seriously in some other source of information. Some investors are a good source of capital, and some aren't. These less established sources of investment should be handled with extreme caution. 2)Never, spend somebody else's money without first doing the legal work properly. Have the papers done by professionals, and make sure they're signed. 3)Never, spend money that has been promised but not delivered. Often companies get investment commitments and contract for expenses, and then the investment falls through. 4)Be aware that turning to friends and family for investment is not always a good idea. The worst possible time to not have the support of friends and family is when your business is in trouble. You risk losing friends, family, and your business at the same time.

Four dimensions of corporate social responsibility

1)Economic 2)Legal 3)Ethical 4)Philanthropic

13 money mistakes most Business Owners continue to make

1)Focusing on the topline, not the bottom line. 2)Diversifying prematurely 3)Investing in a 401K 4)Failing to focus on the right value equation 5)Failing to realize that rookies stay invested, but professionals sit more fully in cash 6)Failing to invest in people 7)Failing to recognize there is no such thing as a passive income 8)Doing too many things themselves 9)Listening to financial managers who have a "cut back" mentality 10)Failure to recognize that loans and debt can be good 11)Thinking that simply working harder will move your business ahead 12)Thinking you have to work more to get more 13)Overpaying your taxes

According to Forbes "The World's Most Reputable Companies for Corporate Responsibility 2018," what are the top 5 most reputable companies for corporate responsibility as of 2018?

1)Google 2)The Walt Disney Company 3)Lego 4)Natura 5)Novo Nordisk

Two types of retailing

1)In-store retailing 2)Non-store retailing

What are the six steps to eventually hiring an employee?

1)Initial screening: application and interview 2)Employment testing 3)Selection interview 4)Background and reference checks 5)Physical examination 6)Decision to hire

According to the article "The Startup Essential No One Talks About: Consumer Market Research" by Radhika Duggal, what are tips to make sure research is used successfully within a business?

1)Map out your market research plan 2)Develop the tools you need to execute your research plan. 3)Set aside time to conduct the survey and analyze the data.

5 key stages of market research

1)Market Analysis 2)Competitor Analysis 3)Trends Analysis 4)Customer Analysis 5)Defining opportunities

2 categories of owners'/shareholders' equity

1)Paid-in capital - money invested in a company by its owners 2)Retained earnings - net profits retained by a company for its use rather than paid out as dividends to stockholders

4 Ps

1)Product -good/service/idea 2)Pricing -High or low price competitor? 3)Place -Where and how customers get product 4)Promotion -Communications to consumers -Advertising, interaction, sales discounts, etc...

3 Big decisions in production and operations management

1)Production planning 2)Production control 3)Improving production and operations

Which influences on consumer behavior did you note in the video (e.g., psychological, personal, social, cultural)?

1)Social: family, opinion leaders, friends, colleagues, etc. -"Brittney and Christina are both spokespeople for Pepsi" -"My mom used to drink Coca Cola a lot, so I think that's why I have a preference for Coke" 2)Personal: lifestyle, personality, economic status -"When you're talking about Coke, you've got to be together because that's what Coke's about." 3)Cultural: culture, subculture, and social class -"Coke, with the Christmas, and that white Santa. Oh, man." 4)Psychological: motivations, perceptions, ability to learn, attitudes -"I like the idea of Classic Coke. Wherever you go, you're going to get Coke." -"Pepsi has rebranded itself, and I think that's turned a lot of people off because it doesn't have that 50's aesthetic anymore."

Two external environmental factors

1)Sociocultural Environment -This refers to the buying behaviors, the customs, values and demographic characteristics of the society in which the organization functions 2) Economic Environment -Economic conditions/variables (e.g., inflation, interest rates, employment rates, recessions, etc.) that influence spending patterns by consumers, businesses and governments

Though the future of work is still solidifying, the fact that businesses need to brace for the upcoming adaptations is certain. How should a business do this?

1)Stay fluid 2)Make the move to automation

Equity financing advantages

1)The risk here is less because it is not a loan and it need not be paid back. Equity financing is a very good way of financing your business if you cannot afford a loan. 2)You actually collect a network of investors which increases you're the credibility of your business. 3)An investor does not expect immediate returns from his investment and hence it takes a long term view to your business. 4)You will have to distribute profits and not pay off your loan payments. 5)Equity financing gives you more cash in hand for expanding your business. 6)In case business fails the money need not be repaid.

2 ways to plan for starting costs

1)The traditional method: Startup worksheet 2)The LivePlan method: Consolidated estimates

What can you do to find the right job?

1)Think about my Future. Think about the type of career and lifestyle that you want. 2)Learn the Requirements. Research certification, education, and training requirements in your area. Interview. 3)Contact someone in the field and set up an "information interview" with them. 4)Job Shadow. Go to work for a day with someone who works in the field. 5)Get Experience. Apply or volunteer for a position in the field.

4 Quality control methods

1)Total Quality Management (TQM) 2)Six Sigma 3)Lean Manufacturing 4)Just-in-Time (JIT)

6 places to look for money when starting a small business

1)Venture capital 2)Angel investment 3)commercial lenders 4)Small Business Administration (SBA) 5)other lenders 6)Friends and family funding

4 growth strategies used by the most successful companies

1)Viral loops 2)Milestone referrals 3)Word-of-mouth 4)the "When they zig, we zag" approach

Equity financing disadvantages

1)You can end up paying more returns than you might pay for a bank loan. 2)You may or may not like giving up the control of your company in terms of ownership or share of profit percentage with investors. 3)It is important to take the consent or consult your investors before taking a big or a routine decision and you may not agree with the decision given. 4)In the case of a huge disagreement with the investors, you might have to only take your cash benefits and let the investors run your business without you. 5)Finding the right investors for your business takes time and efforts.

Steve Johnson, the author of "Where Good Ideas Come From," believes you are more likely to develop great ideas when?

1)You explore and experiment in different areas 2)You allow your idea to develop slowly, over time 3)You are exploring and open to the idea of serendipitous connections 4)You make mistakes 5)You look for new uses for old inventions 6)You build on platforms that have come before

Debt financing disadvantages

1)You have to pay back the money in a specific amount of time 2)Too much of loan or debt creates cash flow problems which create a trouble in paying back your debts. 3)Showing too much of debt creates a problem in raising equity capital as debt is considered high-risk potential by investors and this will limit your ability to raise capital. 4)Your business can fall into big crises in case of too much of debt especially during hard times when the sales of your organization fall down. 5)The cost of repaying the loans is high and hence this can reduce the chances of growth for your company. 6)Usually, the assets of a company are held collateral to the lending institution in order to get a loan as a security of repaying the loan.

According to the article "How to Come up with Hundreds of Business Ideas," what are 11 ways to come up with business ideas?

1)business ideas that solve problems 2)solve things that may become problems 3)adapt to evolving needs 4)save people money 5)Make people's lives easier 6)Make chores or things that feel like tasks less unpleasant 7)Turn a hobby or something you're passionate about into a business 8)Fulfill a need 9)Appeal to a base emotion 10)Experience more 11)Steal others' ideas

How to map out your market research plan

1)cohesive timeline 2)sampling plan 3)your research methodology

Debt financing advantages

1)does not give lender ownership rights in your company (they can't tell you how to run your company) 2)once you pay back money your relationship w/ lender ends 3)interest you pay on loans is after deduction of taxes 4)can choose duration or loan (short-term or long-term) 5)can choose fixed-rate plan-amount of principal and interest known so you can plan your budget

benefits of an integrated marketing campaign

1)effective and cost effective 2)everywhere 3)it builds a relationship

To accommodate the changing needs of employees while successfully engaging with customers on a global stage, you need to initiate the process digitally at the closest point of origin possible. How can this happen?

1)electronic forms 2)workflow automation 3)predictive analysis 4)mobile messaging 5)security

6 ways to grow a company

1)new processes 2)new experiences 3)new features 4)new customers 5)new offerings 6)new models

What are the four ways Google motivates its employees?

1)psychological safety 2)dependability 3)structure and clarity 4)meaning and impact

How to develop the tools you need to execute your research plan

1)qualitative market research 2)quantitative market research

risks of integrated marketing campaigns

1)reluctance with management teams 2)restriction of ideas

Identify whether each each example is a strength, weakness, opportunity or threat: 1)uncertain weather conditions 2)unique selling proposition 3)an incompetent staff member or team 4)Favorable industry trends

1)threat 2)strength 3)weakness 4)opportunity

How to fix poor retention:

1)track the percentages of openings filled from within. 2)Require that all openings be posted internally 3)recognize the costs of outside hiring

How to finance the Scale-up of your company

1)use multiple sources of finance 2)cross-leverage money from one source into cash from others 3)speak different dialects with different capital providers 4)be opportunistic about raising money 5)Manage accts. receivable, but pay on time 6)cultivate customer financing

2 types of accounting

1. Financial Accounting: concerned with external user's of a company's financial information, such as consumer groups, unions, stockholders, suppliers, creditors, and government agencies •Reports (e.g., income statements and balance sheets) are focused on the financial activities of the company as a whole, rather than individual departments 2. Managerial Accounting: serves internal users, such as managers and employees •Used to make departmental decisions, monitor projects, set performance goals, and plan future activities

4 primary business growth strategies

1. Intensive growth strategies -Exploit opportunity in the current market 2. Integrative growth strategies -Exploit growth within the industry as a whole 3. Diversification strategies -Exploit opportunities outside the current market/industry 4. Global strategies -Exploit opportunities in the international arena

What are the two distinctive competencies through which a business can earn success?

1. New niche in an established market •Identifying a segment of the market that is not currently being exploited by other companies 2. New market •Identifying new markets by either transferring a product/service from one established geographic market to another, or by creating entirely new industries

Google's Five Dynamics of a successful team

1. Psychological Safety: Team members feel safe to take risks and be vulnerable in front of each other 2. Dependability: Team members get things done on time and meet high expectations of the organization 3. Structure and Clarity: Team members have clear roles, plans, and goals. 4. Meaning: Work is personally important to team members. 5. Impact: Team members think their work matters an creates change.

Promotional goals

1.Creating awareness 2.Getting consumers to try products 3.Providing information 4.Keeping loyal customers 5.Increasing the amount and frequency of use 6.Identifying target customers 7.Teaching the customer

Six Relevant Steps in the Marketing Research Process:

1.Define the problem and research objectives 2.Develop an approach to the problem 3.Formulate the research design/instrument 4.Collect the data (can use primary and/or secondary data) 5.Analyze the data Report/present findings

Five market segments

1.Geographic Segmentation - where they live (neighborhoods, countries, etc.) 2.Demographic Segmentation - age, income, gender, martial status, etc. 3.Geo-Demographic Segmentation - combo of first two 4.Psychographic Segmentation - lifestyles, interests, personalities 5.Behavioral Segmentation - how customers behave (e.g., those who buy in bulk, situation buyers during Halloween, etc.)

3 Phases of Production Planning

1.Long-term planning (3-5-year timeframe): focuses on which goods to produce, how many to produce, and where they should be produced. (MOST BROAD PLANS) 2.Medium-term planning (2-year timeframe): these decisions concern the layout of factory or service facilities, where and how to obtain the resources needed for production, and labor issues. 3.Short-term planning (within 1-year timeframe): converts the broader goals into specific production plans and materials management strategies. (MOST SPECIFIC PLANS)

3 common types of production

1.Mass production 2.Mass customization 3.Customization

4 methods of market research

1.Observation - watching and recording consumer behavior 2.Surveys - collecting consumer data through questionnaires, telephone calls, or face-to-face interviews 3.Focus Groups - using a small group of people to gather their attitudes, opinions and beliefs about a product in an open discussion 4.Experimentation - using different sample groups to test variations of a product

Three types of competiton

1.Substitute product: product that is different from those of competitors but can fulfill the same need -Example: which gym membership or vacation resort should I pursue? 2.Brand competition: appeals to consumer perceptions of benefits of products offered by particular companies -Example: which browser should I use? Google or Bing? 3.International competition: domestic products against foreign products -Example: Ford (US), Volkswagen (German) or Toyota (Japanese)?

Owner's equity consists of 2 sources of capital:

1.The amount that the owners originally invested 2.Profits earned by the owners and reinvested in the company

Main types of Management Information Systems

1.Transaction Processing System (TPS) 2.Management Support System (MSS) •Data warehouse •Data mart 3.Decision Support System (DSS) 4.Executive Information System (EIS) 5.Expert System

4 important decisions to be made in production planning

1.Type of production process that will be used 2.Site selection 3.Facility layout 4.Resource planning

Computer network

: a group of two or more computer systems linked together by communications channels to share data and information (used by most businesses to deliver information to employees, suppliers, and customers)

Enterprise Portal

: a type of intranet, or internal website that provides proprietary corporate information to a defined user group. Unlike a standard intranet, enterprise portals allow individuals or user groups to customize the portal home page to gather just the information they need for their particular job situations and deliver it through a single web page.

Factoring

: an organization sells its accounts receivable (or invoices) to a third-party funding source (i.e., a factor) for cash. The factor (often a commercial bank or finance company) buys the accounts receivable at a discount and collects on the due payments over time. •Often used in the clothing, furniture, and appliance industries. •Factoring is more expensive than a bank loan because the factor buys the receivables at a discount from their actual value.

International

: lower labor costs and fewer operation regulations

In the acronym "SMART" for SMART goals, what does the "A" represent? Articulate Altruistic Achievable Authentic Affordable

Achievable Specific measurable achievable relevant time-based

Which of the following is commonly required when applying for a Small Business Administration (SBA) loan? Financial statements Income tax returns Credit reports Business plans All of the above

All of the above

Which of the following is true regarding short-term loans? They are typically due within one year They are shown as a current liability on the balance sheet They are used to finance current assets and support operations They can be unsecured or secured loans All of the above

All of the above

Which of the following statements is true regarding a business's cash balance on starting state? Your cash balance on starting date is calculated by your money raised minus the money you spent on expenses and assets Most new businesses take months to years from launch until reaching a steady-state break-even point (when revenues are equal to spending) To estimate your starting cash balance, you can calculate your projected early months' deficit spending until you reach a monthly break-even state Cash requirements is an estimate of how much money your startup company needs to have in its checking account when it starts All of the above

All of the above

Which of these describe why companies use portal technology? All of these are correct reasons Cost savings through the elimination of information intermediaries Improved communications within the company and with customers, suppliers, dealers, and distributors Integratoin of disparate systems and multiple sets of data and information

All of these answers are correct

Which of the following companies has harnessed the power of data-driven product recommendations from the customer browsing stage all the way through check-out, resulting in significant success in sales? Netflix Google Apple Nike Amazon

Amazon

Which of the following are most likely to invest their own money in high-growth companies at early stages of development rather than established, stable, low-growth businesses? Angel investors Venture capitalists Commercial lenders Governmental agencies None of the above

Angel investors

Accounting equation

Assets = Liabilities + Owner's Equity •Used by accountants to balance data for the org's financial transactions at various points in the year •Underlies all record-keeping procedures •Must be in balance after each financial transaction (e.g., payments to suppliers, sales to customers, wages to employees, etc.) •SIMPLE INTUITION: EVERYTHING THE COMPANY HAS BELONGS TO THE OWNERS OR SOMEONE ELSE

Accounting Equation

Assets = Liabilities + Owner/Stockholder Equity

What values must balance on the Balance Sheet? Assets and shareholder's equity, minus liabilities Assets must balance with the combined liabilities and shareholder's equity Shareholder's equity must balance with liabilities Assets must balance with liabilities

Assets must balance with the combined liabilities and shareholder's equity

The basic formula for a balance sheet

Assets= Liabilities + Shareholders' Equity

Production control

At this stage, the decision-making process focuses on controlling quality and costs, scheduling, and the actual day-to-day operations of running a factory or service facility. (Management)

In which country did Starbucks fail to successfully penetrate the coffee market?

Australia

What type of advantage does Starbucks have in global markets, if any? A. Cost B. Product differentiation C. Service differentiation D. Niche

B

Which of the following is NOT a common purpose of marketing research? A. To inform businesses on the needs and wants of customers (and how to meet them) B. To gain an owner/shareholder perspective on optimal funding sources C. To provide information about competitors D. To provide information on the amount of money spent annually in a particular industry E. To aid businesses in developing effective marketing plans/strategies

B

Which of the following is NOT one of the "4 P's" in the marketing strategy mix for achieving business marketing goals? A. Product B. Procedure C. Pricing D. Promotion E. Place

B

Which of the following statements is true regarding SWOT? A. Strengths refer to marketplace conditions and other factors external to the company B. Strengths and weaknesses both refer to internal company factors C. Weaknesses include external factors that impede business objectives D. Opportunities include internal advantages relative to target markets or competition E. All of the above

B

What are the three (3) broad categories of financial statements?

Balance Sheet, Income Statement, and Statement of Cash Flows

Before you start investing, you need to take account of two things:

Before you start investing, you need to take account of two things: (1) INVESTOR OBJECTIVES ◦How quickly are you trying to make money? ◦How active do you want to be when managing your portfolio? (2) RISK TOLERANCE ◦How "OK" are you with huge swings in the value of your portfolio? ◦Do you need stability? Or can you be a bit risky?

Which of the following is NOT a type of financial statement? Budget Income Statement Balance Shet Statement of Cash Flows

Budget

: What type of competition is Starbucks engaging in? A. Substitute product B .Brand competition C. International competition

C

When you hear VALUE, which of these definitions do you think of? A. The monetary worth of an asset, business entity, good sold, service rendered, or liability or obligation acquired B. The worth of all the benefits and rights arising from ownership C. The extent to which a good or service is perceived by its customer to meet his or her needs or wants, measured by customer's willingness to pay for it D.A magnitude or quantity represented by numbers

C

Which of the following reflects a likely order of risk and reward investments, from lowest to highest? CD's - Short-term bonds - Preferred stocks - Foreign bonds CD's - Preferred stocks - Junk bonds - US Treasury bills Preferred stocks - Foreign bonds - US Treasury bills - CD's US Treasury bills - Preferred stocks - High quality common stocks - Junk bonds High quality common stocks - CD's - Short-term bonds - Junk bonds

CD's - Short-term bonds - Preferred stocks - Foreign bonds

This type of investment is considered the safest form of investing

CDs and US Treasury Bills

4 categories of the income statement

CORN 1)Cost of Revenues (cost of goods sold) 2)Operating expenses 3)Revenues 4)Net Income

In Snapchat's 2017 IPO, the company did not allow voting rights for this group of share

Class A

Provides a way to divide the job into many smaller tasks and distribute them to a virtual supercomputer consisting of many small computers linked into a common network. Batch processing Distributed computing Cloud computing Online processing

Cloud computing

Unsecured short-term loans: Commercial paper

Commercial paper: financing option used by major corporations (large and financially strong companies) •Corporations issue commercial paper in multiples of $100,000 for periods ranging from 3 to 270 days. Preferable over short-term bank loans because the interest rate on commercial paper is usually 1 to 3 percent below bank rates

Cost, product differentiation, service differentiation, and niche are all types of _____________.

Competitive advantage

when to invest earnings or pay off debt

Consider the two variables: •The rate of after-tax interest you are paying on your debt. •The after-tax rate of return you expect to earn on your investment.

List three (3) organizational stakeholders.

Customers, Employees, Owners/Investors, Local/global community, Suppliers

Which of the four major types of competitive advantage are reflected in the following examples: a personal trainer for marathon runners, a catering company for "sweet 16" birthday parties in the NYC area, and a computer security company for victims of identity theft? A. Cost B. Product differentiation C. Service differentiation D. Niche E. None of the above

D

According to Guy Kawasaki, what are the characteristics that make a successful product?

DICEE -deep -intelligent -complete -empowering -elegant

Which of the following points was made by Sebastian Wernicke in his Ted Talk, "How to use data to make a hit TV show"? All of the above Data-driven decisions are the best decisions Data is supremely helpful in both dissecting/analyzing the bits and pieces of a problem, as well as putting the pieces back together Data is a useful tool, but you need to take risks to be exceptional Amazon used data and brains where they belonged in the process to create the hit show "Alpha House"

Data is a useful tool, but you need to take risks to be exceptional

Combines many databases across the whole company into one central database that supports management decision-making. Online processing Data mart Batch processing Data warehouse

Data warehouse

______ are at the core of business information systems

Databases

Long-Term Loans

Debt and Equity Financing

debt financing

Debt means borrowing money, and debt financing mean borrowing money without giving away your ownership rights. Debts finance means having to pay both the interest and the principal at a certain date; however with strict conditions and agreements for the reason that if debt conditions are not met or are failed then there are severe consequences to face. Usually, the rate of interest and the maturity or the payback date of debt borrowings is fixed or pre-discussed.

This system uses interactive computer models that describes real-world processes. Decision Support System Expert system Executive Information System Management Support System

Decision Support System

Before launching your marketing research, it is helpful to define your market research goals. Accordingly, which of the following questions should you ask yourself, and answer, before beginning the research process? A. What information are you looking for? B. What questions do you have and what answers do you need? C. What type of data will be most helpful in answering your questions? D. How will you use the results of your research? E. All of the above

E

Which of the following questions might help you define your marketing mix? A. Will your customers consider that it's priced favorably? B. How will your marketing communications reach your target market? C. Where will buyers find/access your service or product? D. Both A and B are correct E. All of the above

E

Explain the O-Ring Principle.

Each "input" into the production process serves a necessary function. If one "input" fails, the final "output" will not be achieved. This is all to say that humans and machines should act as "complements" in the production process.

Where did Professor Lemos work and what was his major?

Economics major Johnson&Johnson

double-entry method

Every transaction has two entries, a "debit" and a "credit" to describe whether money is being transferred to or from an account, respectively.

This system provides specific information for strategic decisions and it is customized for an individual. Executive Information System Management Support System Expert System Decision Support System

Executive Information System

Facility layout

Facility layout is important in both product and service industries •Example: A manufacturer might opt for a U-shaped production line, for example, rather than a long, straight one, to allow products and workers to move more quickly from one area to another. •Service organizations are more concerned with how it affects customer behavior (e.g., it may be more convenient for a hospital to place its freight elevators in the center of the building but doing so may block the flow of patients, visitors, and medical personnel between floors and departments)

Which of the following funding sources accounts for more than 2/3 of all money invested in new small business? Lending Institutions Investors Governmental Agencies Family/Friends and Personal None of the above

Family/ Friends personal

Which of the following is true regarding long-term loans? Equity financing includes term loans, bonds, and mortgage loans Financial managers try to balance cost and risk when selecting the best combination of long-term debt (borrowing) and equity (ownership) Debt financing is obtained through the sale of new ownership shares, retained earnings, and/or venture capital Debt is more costly than equity because the interest is not deductible All of the above

Financial managers try to balance cost and risk when selecting the best combination of long-term debt (borrowing) and equity (ownership)

Which of the following is true regarding the financing of a new business? Venture capital is a growing opportunity for funding businesses Financing options depend on a variety of business factors, so the funding search and approach should be tailored accordingly Investors are primarily concerned with the detail and specificity in the business plan; not necessarily the demonstrated early success of the business While established businesses have access to investment funding, startups have access to standard business loans from traditional banks All of the above

Financing options depend on a variety of business factors, so the funding search and approach should be tailored accordingly

What is the difference between a for-profit and not-for-profit company?

For profit companies disperse profits to shareholders. Not for profit companies invest profits back into the business.

Order of systems and who works in them

From Bottom to top Transaction Processing systems (workers) Management information systems (Middle managers) Decision support systems (Senior managers) Executive information systems (Executives)

Different investment strategies

Fundamental Analysis (Active) ◦Active investment strategy that involves analyzing financial statements for the purpose of selecting quality stocks. This requires assumptions about what financial statements tell us about a company's value. Technical Analysis (Active) ◦Investors using technical analysis (technical traders) often use charts to recognize recent price patterns and current market trends for the purpose of predicting future patterns and trends. In different words, there are particular patterns and trends that can provide the technical trader certain cues or signals, called indicators, about future market movements. Growth Investing (Active/Passive) ◦As the name implies, growth stocks typically perform best in the mature stages of a market cycle when the economy is growing at a healthy rate. The growth strategy reflects what corporations, consumers, and investors are all doing simultaneously in healthy economies--gaining increasingly higher expectations of future growth and spending more money to do it. ◦This strategy uses the power of compounding to generate returns Buy and Hold (Passive) ◦Buy and hold investors believe "time in the market" is a more prudent investment style than "timing the market." The strategy is applied by buying investment securities and holding them for long periods of time because the investor believes that long-term returns can be reasonable despite the volatility characteristic of short-term periods. This strategy is in opposition to absolute market timing, which typically has an investor buying and selling over shorter periods with the intention of buying at low prices and selling at high prices.

According to the Forbes (2018) article on the World's 20 Most Reputable Companies for CSR, which company sits at the top?

Google

What company's mantra is "Don't be evil."

Google

Which of the following companies used performance reviews, employee surveys, and the "Great Manager award" to collect data on good manager characteristics and qualities (and then used the data to revise its management training program)? Nike Netflix Apple Amazon Google

Google

"Your Approach to Hiring is All Wrong"

Hiring talent remains the number one concern of top CEO's around the world ◦Costs companies, on average, $4,129 to hire someone Change in recruiting practices over past 10 years ◦".. the majority of people who took a new job last year weren't searching for one: Somebody came and got them." ◦"Often employers advertise jobs that don't exist, hoping to find people who might be useful later on or in a different context." (PHANTOM JOBS) 40% of all recruiting and hiring function has been outsourced ◦"... subcontractors scour LinkedIn and social media to find potential candidates. They sometimes contact them directly to see whether they can be persuaded to apply for a position and negotiate the salary they're willing to accept." If hiring process is left to the organization, huge market for machine-learning software that matches candidate applications with the job

QVC is an example of what type of non-store retailing strategy

Home shopping networks

Explain the "Never Get Enough" principle

Human's innate desire to consume more will always incentivize the generation of new products and new markets, meaning there will, at a minimum, always be a changing role for human labor in society.

Compensations and benefits

Includes direct pay (salary) and indirect pay

investment bankers

Intermediaries who buy securities from corporations and governments and resell them at a higher price to the public to help companies raise long-term financing. •This process is called underwriting •Investment bankers advise clients on the pricing and structure of new securities offerings, as well as on mergers, acquisitions, and other types of financing. •Well-known investment banking firms include Goldman Sachs, Morgan Stanley, JP Morgan, Bank of America Merrill Lynch, and Citigroup. •Stockbroker (or "account executive"): person who is licensed to buy and sell securities on behalf of clients

Advice for long-term investing

Invest in what you understand (i.e. Research the market) Invest like you are buying the entire company (i.e. Research the company entirely) Always be identifying competitive advantages (i.e. Research the competitors) Find quality companies ◦Sometimes, paying a more expensive price for a quality company is better than finding the lowest price option Keep cash on hand Require a margin of safety Compounding is patience Stick with the strategy

Small Business Administration (SBA)

It guarantees loans to small businesses and startups so commercial banks (certified lenders) can safely make them (it doesn't make loans directly). •The SBA normally requires that at least 1/3 of the required capital be supplied by the new business owner and the rest must be guaranteed by reasonable business or personal assets.

What effect on the income distribution is "the automation problem" expected to have?

It is expected to widen the gap between high and low income individuals. In other words, the middle class is expected to shrink.

Measures of business success that are (or should be) directly linked to the business' goals

Key Performance Indicators (KPIs)

Production location

Location must be determined early in production and operations planning Why does it matter? •The facility's location affects operating and shipping costs and, ultimately, the price of the product or service and the company's ability to compete. •Mistakes made at this stage can be expensive, because moving a factory or service facility once production begins is difficult and costly. •Companies must weigh a number of factors to make the right decision: •Availability of production inputs •Marketing factors •Manufacturing environment •Local incentives International location considerations

Methods and equipment that provide information about all aspects of a firm's operations (examples including Transaction Processing Systems, Decision Support Systems, etc.)

Management Information Systems

This system uses the internal master database to perform high-level analyses that help managers make better decisions. Expert system Executive Information System Management Support System Decision Support System

Management Support System

Field of accounting that serves internal users...

Managerial accounting

Innovation as a necessity

Many factors have necessitated innovative approaches in operations management. For example: •Ever-shrinking product lifecycles •New trends on the labor market •Environmental concerns •Digitalization of the processes

Methods to help meeting balancing productivity and quality

Methods to help meet these challenges include quality-management techniques, lean manufacturing, and technology and automation

Why you don't want to capitalize expenses

Money spent buying assets isn't tax deductible. Money spent on expenses is deductible. Capitalizing expenses creates the danger of overstating assets. If you capitalized the expense, it appears on your books as an asset. Having useless assets on accounting books is not a good thing.

Why is hiring so difficult?

More external hiring because they don't have to train new employees Assume they come in with required experience and only need organizational training Retention of employees is difficult because more external hiring Most vacancies are due to voluntary turnover because other firms are "stealing" talent What does this mean? Labor markets are incredibly competitive!

Commercial lenders(banks)

Much more likely to finance established businesses than they are startups Why is this? •Federal banking laws prohibit them from risking the savings from depositors - if the banks invest it in risky new businesses, which don't have enough collateral, they could lose the depositors' money. •Small business owners, however, can borrow from banks, if they can back the loan in inventory, accounts receivable, and/or personal collateral (such as the home they own)

What are the three small business financing myths?

Myth #1: Venture capital is a growing opportunity for funding businesses Myth #2: Bank loans are the most likely option for funding a new business Myth #3: Business plans sell investors Actually, they don't.

Which of the following is NOT a goal or objective of data strategy? To discusses the financial justification of the suggested data activities and how the company will benefit from them N/A - all are goals/objectives of data strategy To establish a timeline for completing the proposed activities, define milestones and priorities and describe a strategy for moving forward To define how the data will help the company meet business goals To describe the changes the organization needs to make to maximize the value of its data activities

N/A - all are goals/objectives of data strategy

Which of the following is NOT included in an Income Statement? N/A - all are included Operating Expenses Operating and Net Income Cost of Goods Sold Revenues

N/A - all are included

Basic formula for a balance sheet

Net Income = (Revenues + Gains) - (Expenses + Losses)

Raising funds

Obtaining funding for the firm's operations and investments and seeking an "optimal" balance between debt (borrowed funds) and equity (funds raised through the sale of ownership in the business) Both NEW and EXPERIENCED firms need business financing at some point. ◦NEW Firms: Starting costs ◦EXPERIENCED Firms: Finance growth and working capital

Supply Chain OTIF example

On Time In Full (also known as DIFOT: Delivered In Full, On Time) is a supply chain KPI measuring if: •The expected product has been delivered. •The ordered quantity has been delivered. •The quality is conform to the required level. •The product has been delivered at the place asked by the customer and on time.

Term referring to management of the conversion process of inputs to outputs

Operations management

Operations Management

Operations management is chiefly concerned with planning, organizing and supervising in the contexts of production, manufacturing or the provision of services. ◦As such, it is delivery-focused, ensuring that an organization successfully turns inputs to outputs in an efficient manner. There are two key terms that can help answer the question of what operations management is more precisely: supply chain management and logistics.

Identify accomplishments on a resume using the ______ approach.

PAR Problem Action Result

Which of the following is NOT a common way that organizations raise the funding they need? Paying dividends (distribution) Borrowing money (debt) Selling ownership shares (equity) Retaining earnings (profits) NA - all are common ways to raise funding

Paying dividends (distribution)

The Pepsi Challenge

Pepsi went inside malls around the country and invited people to do a blind taste test between Coke and Pepsi. The results were remarkable; people picked Pepsi over Coke by a significant margin.

What was Pepsi's big mistake?

Pepsi's critical failure was in not facilitating a complete customer conversion. They didn't do enough to get people to switch to Pepsi as their default cola.

Statistics tool that summarizes and reorganizes selected columns and rows of data in a spreadsheet to obtain a desired report

Pivot Table

Which of the following is true regarding preferred stock? Preferred stock obligates the company to make fixed payments, thus increasing financial risk Preferred stock is less expensive than debt financing because preferred dividends are tax-deductible Preferred stock is less flexible than debt financing due to strict consequences for missing dividend payments Preferred stockholders receive their money only after the common stockholders if the company goes bankrupt and sells its assets All of the above

Preferred stock obligates the company to make fixed payments, thus increasing financial risk

Which of the following is NOT included in the suggestions from Isenberg and Lawton (2014) on ways to finance company growth? Prioritize angel investors and venture capitalists Cultivate customer financing Cultivate supplier financing Cross-leverage money from one source into cash from others Use a variety of financing sources

Prioritize angel investors and venture capitalists

What are the 4Ps of the Marketing Mix?

Product, Pricing, Place, Promotion

Which of the following is NOT one of the common reasons for a corporation to decide to stay private? Public corporations have greater difficulty taking over competitors Going public is expensive There's no guarantee that an Initial Public Offering will sell Public corporations can become subject to greater scrutiny by regulators and shareholders Going public has a high degree of risk

Public corporations have greater difficulty taking over competitors

Transaction Processing System (TPS)

Receives raw data from internal and external sources and prepares these data for storage in a large database. It's a system that supports transaction processing (involving the collection, modification and retrieval of all business transaction data).

Expenses and Losses

Report on all the outgoings during a period of time

Resource planning

Resource planning begins by specifying which raw materials, parts, and components will be required, and when, to produce finished goods.

What are the 4 major categories included on the Income Statement?

Revenues, Cost of Goods Sold (also, Cost of Revenues), Operating Expenses, Net Income

Employee selection

Selection is the process of determining which people in the applicant pool possess the qualifications necessary to be successful on the job.

Critical Path Analysis steps

Step 1: write in each activity letter (A, B, etc.) and the duration underneath it Step 2: use the forward pass to calculate the early start and early finish for each (early start + duration = early finish) = if two activities feed into another one (precede it) go with the larger number, because the activity can't begin until both are complete Step 3: use the backward pass to find the late start and late finish for each activity (late finish - duration = late start). Bring your final activity's late start number into the late finish box for the activity that precedes it and continue on all the way backwards to the first activity. *If two activities feed from another one, the smaller number wins Step 4: to identify the Critical Path, identify which activities have the same numbers for their early finish and late finish Step 5: to identify float/slack time for an activity, calculate the difference between the early start and late start for that activity

List one (1) example of automation in the accounting field.

Tax preparation, individual audits, corporate audits

From the video on "Automation and Jobs", Economist David Autor provides an explanation for the jobs paradox as being for two reasons. What did he call those two reasons?

The "O-Ring" Principle and the "Never Get Enough" Principle

Which of the following statements is true regarding the Small Business Administration (SBA)? The SBA makes loans directly to small businesses and startups SBA loans do not typically require that capital be supplied by the new business owner The SBA works with certified lenders, or banks, in guaranteeing loans for small businesses SBA loans typically offer short repayment terms with high interest rates All of the above

The SBA works with certified lenders, or banks, in guaranteeing loans for small businesses

equity financing

The company needs cash or additional cash to grow always. These funds can be raised either by debt or equity financing. Now that you know about debt financing let us explain equity financing. Unlike debt financing equity financing is a process of raising funds by selling the stocks of the company to the financer. Selling of stocks is giving ownership interest of the company to the financer. The proportion of ownership given to the financer depends on the amount invested in the company. -ownership in a company

Improving production and operations

The final stage of operations management focuses on developing more efficient methods of producing the firm's goods or services. (Improvement)

Production planning

The first decisions facing operations managers come at the planning stage. At this stage, managers decide where, when, and how production will occur. They determine site locations and obtain the necessary resources. (Design) allows the company to consider the competitive environment and its own strategic goals to find the best production methods. •The challenge: good production planning has to balance goals that may conflict, such as providing high-quality service while keeping operating costs low or keeping profits high while maintaining adequate inventories of finished products. Sometimes accomplishing all these goals is difficult.

Which of the following is true about a firm's budget? It is typically developed privately by the accounting team to avoid visibility to managers The timeframe is typically one year It provides a summary of past receipts and expenditures over the designated time period It is one of the most important external financial statements for a business

The timeframe is typically one year

Startup expenses

These are expenses that happen before you launch and start bringing in any revenue. For example, many new companies incur expenses for legal work, logo design, brochures, location site selection and improvements, and other expenses. Startup expenses also include expenses such as rent and payroll that start before launch and continue from then on.

Angel investment

These are individuals or groups who invest their own money in companies How do they differ from venture capitalists? •More common than venture capital •Whereas venture capitalists often wait a few years to see demonstrated business success, angel investors invest during the earlier growth stages How are they similar to venture capitalists? •They normally focus on high-growth companies at early stages of development rather than established, stable, low-growth businesses.

Which of the following is true about credits and debits? The total amounts on the left and right sides of an accounting ledger are rarely equal When taking out a loan, you will debit the loans payable account and credit the cash amount They provide a relatively simple way to record and summarize the increases and decreases of a company's balances of assets, liabilities, equity, income and expenses. On the balance sheet, assets are reported on the credit side (right), and liabilities and equity are reported on the debit side (left)

They provide a relatively simple way to record and summarize the increases and decreases of a company's balances of assets, liabilities, equity, income and expenses.

Balancing productivity and equality

To compete effectively in today's business world, companies must keep production costs down while also producing/delivering the high-quality goods and services customers demand.

Trade credit (unsecured short-term loan)

Trade credit: the seller extends credit to the buyer between the time the buyer receives the goods or services and when it pays for them (i.e., cash is not due on delivery. The organization is billed and pays at a later date). Trade credit is a major source of short-term business financing. The buyer enters the credit on its books as an account payable. •Until the buyer pays the seller, the seller has an account receivable from the buyer, and the buyer has an account payable to the seller.

Type of information system commonly used by workers in the retail or food/bev industry (e.g., POS)

Transaction Processing System (TPS)

startup assets

Typical startup assets are cash (in the form of the money in the bank when the company starts), and in many cases, starting inventory. Other starting assets might be either current or long-term assets, such as equipment, office furniture, vehicles, and so on.

Unsecured Short-term loans: Bank Loans

Unsecured bank loans include 2 types: lines of credit and revolving credit agreements. 1)Line of credit: specifies the maximum amount of unsecured short-term borrowing the bank will allow the organization over a given period, typically one year. The org either pays a fee or keeps a certain percentage of the loan amount (generally 10 to 20 percent) in a checking account at the bank. 2)Revolving credit agreement: guaranteed line of credit that carries an extra fee in addition to interest (typically arranged for a period of 2-5 years.

Used to connect two or more private networks over a public network, featuring strong security measures that encrypt the data entered and protect sensitive corporate information

Virtual Private Network (VPN)

OK, so what happens when you're not attracting venture capital or angel investors?

You need to secure funding through another source... 1. Commercial lenders 2. Small Business Administration 3. Other outside lenders, including friends and family

Coined by Google, this is the thought that because technology has created a barrage of information, consumers are always shoppers

Zero Moment of Truth (ZMOT)

ZMOT

Zero moment of truth - coined by Google ◦Technology has created a barrage of information, resulting in us being "always on shoppers" - as consumers, we are "open for business 24/7)

Accounting

a comprehensive system for collecting, analyzing, and communicating financial information (to business owners, employees, the public, regulatory agencies, etc.)

income statement

a report that shows how much revenue a company earned over a specific time period; shows the profitability of a company

Common stock

a security that represents an ownership interest in a corporation. •Initial Public Offering (IPO): a company's first sale of stock to the public (existing stockholders, usually employees, family, and friends who bought the stock privately, hope to earn big profits on their investment Drawbacks to going public: •There is no guarantee an IPO will sell, and it is also expensive. •Big fees must be paid to investment bankers, brokers, attorneys, accountants, and printers. •Once the company is public, it is closely watched by regulators, stockholders, and securities analysts. The firm must reveal such information as operating and financial data, product details, financing plans, and operating strategies. Providing this information is often costly.

Job analysis

a study of the tasks required to do a job well. •This information is used to specify the essential skills, knowledge, and abilities required for the job. •Jobs are examined to make any changes in job duty and task responsibilities

Marketing factors

ability to serve customers (e.g., better service if located near them); location of competitors, etc.

Which of the following metrics might be used by a company to measure its organizational health? Community impact and involvement All of the above Employee satisfaction and engagement Revenue growth rate and ROI Customer satisfaction and retention

all of the above

Which of the following statements is true regarding cognitive biases? All of the above They are often used without conscious awareness (we don't know we're doing it) They can limit creative and innovative thinking They rely on our past experiences and ways of applying prior knowledge, when making decisions They can help us to make decisions quickly and effectively

all of the above

Integrated Marketing Communications

an approach to creating a unified and seamless experience for consumers to interact with the brand/enterprise; it attempts to meld all aspects of marketing communication such as advertising, sales promotion, public relations, direct marketing, and social media, through their respective mix of tactics, methods, channels, media, and activities, so that all work together as a unified force. It is a process designed to ensure that all messaging and communications strategies are consistent across all channels and are centered on the customer."

business

an organization that provides goods or services to earn a profit

Sales promotions

are marketing events or sales efforts—not including traditional advertising, personal selling, and public relations—that stimulate buying •The goal of many promotion tactics: immediate purchase. •Customers are targeted according to their general behavior (e.g., is the consumer loyal to the marketer's product or to the competitor's? Does the consumer switch brands readily in favor of the best deal? Does the consumer buy only the least expensive product, no matter what? Does the consumer buy any products in your category at all?)

Indicate whether the following is an asset, liability, or equity: The equipment owned by the business Liability Equity Asset

asset

The assistant director of a marketing department is interested in generating ideas for marketing a new product. He invites the team in for a brainstorming session, but ultimately decides to go with the idea of his supervisor, as she is most senior member of the team, and therefore, probably the wisest. This is an example of which type of cognitive bias? Confirmation bias Projection bias Bandwagon bias Status-quo bias Authority bias

authority bias

Flexible Manufacturing Systems (FMS)

automates a factory by blending computers, robots, machine tools, and materials-and-parts-handling machinery into an integrated system

This financial statement includes the accounting equation.

balance sheet

Just-in-Time (JIT)

based on the belief that materials should arrive exactly when they are needed for production, rather than being stored on-site. Manufacturers use computerized systems to determine what parts will be needed and when and then order them from suppliers, so they arrive "just in time." •Under the JIT system, inventory and products are "pulled" through the production process in response to customer demand (so requires close teamwork between vendors and purchasing and production personnel )

Before creating a value proposition you should:

before you decide whether you need a value proposition, ask yourself the following questions: Do I have a well understood customer segment? Have I developed strong insights about their motivations and needs?

ethics

beliefs, or moral standards, about what is right and wrong or good and bad ◦Moral principles that govern a person's behavior

Which of the following considerations may be relevant in deciding whether to use earnings to invest versus to buy down existing debt? Both of the above The after-tax rate of return you expect to earn on your investment The rate of after-tax interest you are paying on your debt Neither of the above

both of the above

People who buy a variety of products in a given category are considered ______

brand switchers

There is a buy ____ inside the brain.

button

investing activities

changes in cash from the purchase or sale of property, plants, equipment or other long-term investments Cash inflow: sale of property Cash outflow: purchase of property

Wholesalers

channel members that buy finished products from manufacturers and sell them to retailers. Retailers in turn sell the products to consumers •Wholesalers also sell products to institutions, such as manufacturers, schools, and hospitals •Wholesalers also sell products to manufacturers for use in the manufacturing process Some wholesalers even sell to other wholesalers

Availability of production inputs

close to suppliers to reduce shipping costs; workforce availability and costs; etc.

Another term for the mental shortcuts we take when making decisions

cognitive biases

Computer-Integrated Manufacturing Systems (CIM)

combines computerized manufacturing processes (such as robots and flexible manufacturing systems) with other computerized systems that control design, inventory, production, and purchasing

Data warehouse

combines many databases across the whole company into one central database that supports management decision-making. Data warehouses may contain many data marts, special subsets of a data warehouse that each deal with a single area of data. Companies use data warehouses to gather, secure, and analyze data for many purposes, including customer relationship management systems, fraud detection, product-line analysis, and corporate asset management.

integrated marketing campaign

combines multiple channels such as content, email, display advertising and social media in order to promote a consistent message to a specific audience. The main goal of most integrated campaigns is to convert viewers into customers.

Customization

company produces goods or services one at a time according to the specific needs or wants of individual customers (opposite of mass production). •Different from mass customization, as each product or service produced is unique. •Example: a print shop may handle a variety of projects, including newsletters, brochures, stationery, and reports. Each print job varies in quantity, type of printing process, binding, color of ink, and type of paper. •Service example: personal training or nutrition coaching

Six Sigma

company-wide, quality-control program method that focuses on measuring the number of defects that occur and systematically eliminating them in order to get as close to "zero defects" as possible (goal = every process produces no more than 3.4 defects per million). A key process of Six Sigma is called DMAIC: Define, Measure, Analyze, Improve, and Control.

A group of two or more computer systems linked together by communications channels to share data and information

computer network

A group of two or more computer systems linked together by communications channels to share data and information is: management information system computer network virtual private network enterprise portal

computer network

How to frame your analysis

connect the dots between: 1)the data you gained 2)the insight it drives for your company's business 3)the decisions it should impact

Operating Expenses

costs, other than the costs of revenues, incurred in producing a good or service (e.g., research development, marketing, office supplies, salaries, etc.)

product differentiation

creation of a product feature or image (e.g., brand name, packaging, colors, a warranty, accessories,, service program, etc.) that differs enough from existing products to attract customers

credits

credits (cr) record all of the money flowing out of an account.

The sequence of tasks for a project representing the fastest time possible for project completion

critical path

Trends Analysis

current trends and future opportunities (including technologies and other new resources)

Defining Opportunities

data related to the size of the market, growth tendencies, competition, trends and target customers aid in predicting the overall demand for a product.

Municipal bonds

debt issued by communities throughout the US to help build infrastructures such as sewer projects, libraries, and airports. Their credit rating is based on the financial stability of the issuer.

current liabilities

debts a company expects to pay off with the year

Inventory Management

deciding how much of each type of inventory to keep on hand and the ordering, receiving, storing, and tracking of it •Consideration: how to meet customer/production demands while minimizing costs (tying up money, storage, frequent reordering, etc.)

Make-or-Buy Decision

decision whether a company will make its own production materials or buy them from outside sources (outsourcing) •Considerations: quantity of items needed, special design features, reliability/quality of outside sources

A credit ______ an asset account.

decreases

A credit ______ an expense account.

decreases

A debit_____ a liability account.

decreases

A debit_____ revenue.

decreases

A debit______ an equity account.

decreases

From the Ted talk "The Art of Innovation" Guy Kawasaki mentions "Rolling the DICE" when generating new business ideas. What does DICE stand for?

deep intelligent complete empowering elegant

Budget

detailed statement of estimated receipts and expenditures for a future period of time •Timeframe is usually one year but longer terms (3- or 5-year budgets) are used for major expenditures •This is the most important internal financial statement •Prepared by the accounting team with input from managers regarding proposed activities and required resources.

Payments to stockholders from a corporation's profits

dividends

Which term refers to the payments a business pays (in cash and/or in stock) to its stockholders? Dividends Retained Earnings Refunds Securities Investments

dividends

What are the two required dimensions of CSR?

economic and legal

Total Quality Management (TQM)

emphasizes the use of quality principles in all aspects of a company's production and operations. It recognizes that all employees involved with bringing a product or service to customers—marketing, purchasing, accounting, shipping, manufacturing—contribute to its quality. •TQM focuses on continuous improvement, a commitment to constantly seek better ways of doing things in order to achieve greater efficiency and improve quality. Company-wide teams work together to prevent problems and systematically improve key processes instead of troubleshooting problems only as they arise.

Which of the following Key Performance Indicator (KPI) data is least likely to aid an organization in assessing the success of its marketing efforts? Website bounce rate Search engine rankings Employee satisfaction ratings Website page views Email open rates

employee satisfaction ratings

Which of these is NOT a form of enterprise portal? Business to consumer Business to business Employee to consumer Business to employee

employee to consumer

Integrated Information System

enables data sharing by multiple functional areas of the organization

A type of intranet, or internal website that provides proprietary corporate information to a defined user group (3 types: business to employee, business to business, and business to consumer)

enterprise portal

What are the two expected/desired dimensions of CSR?

ethical and philanthropic

business ethics

ethical or unethical behavior by employees (managers, staff, etc.) in the context of their jobs ◦Use of ethics in business means the organization must make the choices that benefit the good of everyone, including shareholders, stakeholders, and the community

Beliefs, or moral standards, about what is right and wrong or good and bad

ethics

startup costs

expenses you incur and assets you need before you can launch the business.

The method of marketing research used in the Coke vs. Pepsi Challenge

experimentation or focus group

This system emulates decision-making of a human expert through AI. Executive Information System Expert system Management Support System Decision Support System

expert system

Marketing decisions need to consider the ____environment, or factors outside an organizations boundaries or control.

external

What type of users are financial accountants concerned with?

external

High-price strategies

fewer units sold, but higher profits on each (and may also indicate higher quality from the customer's perspective)

Logistics

figure out what to do with the inputs to turn them into outputs "in house"

Statement of cash flows

financial statement describing an org's yearly cash receipts and cash payments. Shows three categories of cash flows: •Cash Flows from Operations - cash transactions involved in buying and selling goods and services •Cash Flows from Investing - includes cash receipts and payments from buying and selling stocks, bonds, property, equipment, and other productive assets •Cash Flows from Financing - reports net cash from all financing activities such as inflows from borrowing or issuing stock, and outflows for payment of dividends and repayment of borrowed money

Balance sheet

financial statement that supplies detailed information about an org's assets, liabilities, and owner's equity (the items that comprise the accounting equation). •They show an org's financial position at one point in time (so they are also referred to as statements of financial position)

The launch month is often the ______ of the business's fiscal year.

first month

Supply Chain Management

get inputs and outputs "through the door"

Expert System

gives managers advice similar to what they would get from a human consultant. •Emulates decision-making of a human expert (using what-if or if-then reasoning) through AI •Some expert systems take the place of human experts, whereas others assist them.

product

good, service, or idea designed to meet a customer's need or want

Mass customization

goods are produced using mass-production techniques, but only up to a point. At that point, the product or service is custom-tailored to the needs or desires of individual customers. •Allows a customer to design certain features of a product while still keeping costs closer to that of mass-produced products. •Example: modular homes - allow customers to make changes to the base home package

Manufacturing environment

greater access to resources if located near similar industries

Our emotional brain is________.

greater than our rational brain when it comes to how we perceive advertisements

The main difference between ethics and CSR is that ethics, generally, are ___________ and CSR is ____________.

guiding principles; the practical application of ethical concerns

Decision Support System (DSS)

helps managers make decisions using interactive computer models that describe real-world processes. •It is a tool for answering "what if" questions about what would happen if the manager made certain changes. In simple cases, a manager can create a spreadsheet and try changing some of the numbers. •Example: a manager could create a spreadsheet to show the amount of overtime required if the number of workers increases or decreases. •Example: Degree Works ("What if" function)

Operations can be categorized into three major types of activities: Design, Management, and _____

improvement

Debt financing

includes term loans, bonds, and mortgage loans •Major advantages: The deductibility of interest expense for income tax purposes, which lowers its overall cost; there is no loss of ownership. •Major drawback: Financial risk (the chance that the firm will be unable to make scheduled interest and principal payments): The lender can force a borrower that fails to make scheduled debt payments into bankruptcy

Information Technology (IT)

includes the equipment and techniques used to manage and process information, such orders, products, inventory, scheduling, shipping, customers, suppliers, and employees. •In less than 70 years, we have shifted from an industrial society to a knowledge-based economy driven by information. •Businesses depend on IT for everything from running daily operations to making strategic decisions. •Supercomputers are used to analyze big data to gain insights into customer behavior, improve inventory and production management and for product design •Internal networks help facilitate internal communication and operations •The internet is used vastly for internal and external communication

A credit _____ revenue.

increases

A credit ______ a liability account.

increases

A credit ______ an equity account.

increases

A debit _____ an expense account.

increases

A debit ______ an asset account.

increases

First year expenses

incurred after launch and appear on P & L statement

Startup expenses

incurred prior to launch

In "The Friedman Doctrine" of 1970, economist Milton Friedman argues that the appropriate agents of social causes are ________.

individuals

Independent wholesalers that buy related product lines from many manufacturers and sell them to industrial users

industrial distributors

Market Analysis

information pertaining to the target market (e.g., the geographic, demographic, psychographic and behavioral variables)

Goal timeline for a production goal of reducing expenses by 6% in three years

intermediate goal

Two sources of job applicants

internal and external labor markets •Internal: potential applicants currently employed by the organization •External: potential applicants outside the organization

Which of the following does Loius Mosca (2017) suggest as a way for a company to maximize its profits? Invest in your employees Invest in high reward securities Reduce your operational costs Maximize your process improvement strategies All of the above

invest in your employees

Which of the following refers to the act of using money (i.e., capital) to make returns in the form of interest, dividends, or through the appreciation of the investment product? Investing Refunding Debt payoff Securing Initial Public Offering

investing

Securities

investment certificates that represent either equity (ownership in the issuing organization) or debt (a loan to the issuer) Stocks, bonds, and other securities trade in securities markets (these markets streamline the purchase and sales activities of investors by allowing transactions to be made quickly and at a fair price)

Providing appropriate/accurate information to shareholders regarding financial performance is benefiting which organizational stakeholder?

investors

Quality control

involves creating quality standards, producing goods that meet them, and measuring finished goods and services against them. •Requires a company-wide dedication to managing and working in a way that builds excellence into every facet of operations (not saved for end-of-the-line inspections) - top management must foster a company-wide culture dedicated to producing quality

noncurrent assets

items a company doesn't expect to convert to cash within a year

strengths

key advantages relative to competition, target markets (internal company factors)

weaknesses

key disadvantages relative to competition, target market (internal company factors)

A quality control method that streamlines production by eliminating steps in the production process that do not add benefits customers want

lean manufacturing

A debit is always recorded on the _____.

left

Indicate whether the following is an asset, liability, or equity: A mortgage Equity Asset Liability

liability

Indicate whether the following is an asset, liability, or equity: Employee Salaries Liability Equity Asset

liability

Indicate whether the following is an asset, liability, or equity: Taxes payable Equity Asset Liability

liability

Liabilities

listed on the right side of a balance sheet -the amounts of money the company owes to others, also known as debts

Shareholders' Equity

listed on the right side of a balance sheet -the money that would be left if a company sold all its assets and paid off all liabilities (debt) -amount would exclude any money used to start the business (Capital Stock) or profits kept in the company from previous years (Retained Earnings)

debt investment

loan for the promise of interest income repayment -lower risk fixed income interest

________ is, generally, a 2-3 word statement that explains why an organization exists.

mantra

opportunities

marketplace conditions addressed by the proposed business, service or product (factors external to the company)

Production type in which goods are produced using mass-production techniques up to a point. At that point, the product or service is custom-tailored to the needs or desires of individual customers.

mass customization

From the Ted talk "The Art of Innovation", Guy Kawasaki suggests that when we are developing new business ideas we should be pursuing ___________ and not __________.

meaning; money

The "M" in SMART Goals

measurable

Management Information Systems (MIS)

methods and equipment that provide information about all aspects of a firm's operations •They provide managers with the information they need to make decisions. •They help managers properly categorize and identify ideas (i.e., process data) into useful information (resulting in substantial operational and cost benefits as well as facilitating a variety of business decisions). •The data is typically collected and organized in an electronic filing system, called a database This helps different departments integrate their knowledge into a shared information system, which enables more effective problem-solving b

On the job training

might include a general orientation to the company and/o department, as well as specific job instruction, coaching, special project assignments, job rotation, apprenticeship, and/or mentoring.

Off the job training

might include physical off-site locations (e.g., in a classroom) or web-based, E-trainings x

Low-price strategies

more units sold, but typically lower profits on each

The Balance Sheet describes the __________ of the company, the Income Statement describes the _________ of the company, and the Statement of Cash Flows describes the __________ of the company.

net worth; profitability; cash position

According to "How to Come up with Hundreds of Business Ideas," good ideas are like________.

networks

From the article "How to come up with hundreds of business ideas", the author describes good business ideas like _________.

networks

The two categories of distinctive competencies include: new niche in an established market and ___________.

new market

operating activities

normal and core activities of a business that generate cash inflows and outflows Cash inflow: revenue from sale of goods and services Cash outflow: payments to employees

long-term liabilities

obligations due in over one year

Equity financing

obtained by selling new ownership shares (external financing), by retaining earnings (internal financing), or through venture capital (external financing). •Major advantage: Form of permanent financing that places few restrictions on the firm (they're not required to pay dividends or repay the investment. •Major drawback: Equity is more costly than debt. Unlike the interest on debt, dividends to owners are not tax-deductible expenses.

When launching a business, there is typically a large number of startup costs (including both startup expenses and startup assets). Which of the following is an example of a start-up asset? Legal work Answered Logo design Payroll Office furniture All of the above

office furniture

Employee feedback should be_______.

ongoing throughout the year

The simple intuition behind the accounting equation is the idea that everything the company has belongs to the ________ or _________.

owners; someone else

Dividends

payments to stockholders from a corporation's profits (can be paid in cash or in stock) ◦Stock dividends are payments in the form of more stock. Typically, the company's CFO and Board of Directors determines how much of the profits to distribute as dividends and how much to reinvest. •Need to weight the options: after a stock dividend has been paid, more shares have a claim on the same company, so the value of each share often declines, BUT... •Investors buy the stock expecting to get dividends and the company does not pay them, the investors may sell their stocks (a stable history of dividend payments indicates good financial health. If an organization that has been making regular dividend payments cuts or skips a dividend, investors start thinking it has serious financial problems)

According to Simon Sinek, what do people buy?

people don't buy what you do, people buy why you do it

The root cause of most hiring is:

poor retention

Base emotions

popularly known as the seven deadly sins 1)pride 2)envy 3)lust 4)Greed 5)Gluttony 6)sloth 7)anger (wrath)

If a company's assets > liabilities, the owner's equity is ______.

positive •- if the company were to close, the owner's may receive some cash (a gain) after selling assets and paying off liabilities)

threats

possible impediments to achieving business, service or product objectives (factors external to the company)

Customer Analysis

preferences of potential customers

If a company goes bankrupt and sells its assets these holders get their money back first

preferred stockholders

Accounting

primary role is to collect and present the financial data. -Compile Balance Sheet, Income Statement, Cash Flows Statement

From the article "How to develop hundreds of business ideas, the first piece of advice Candace Landau provides is to develop what type of skills?

problem solving or problem seeking

Product positioning

process of fixing, adapting, and communicating the nature of the product

Retained Earnings

profits that have been reinvested in the business ◦Used for growth within the firm

Advertising, personal selling, discount sales, and personal relations are all related with what "P" of the marketing mix?

promotion

equity investment

provide capital for the percentage of the profits and losses, high risk -paid dividends

List two (2) influences on consumer behavior.

psychological, personal, social, and cultural

financing activities

report cash level changes from the purchase of a company's own stock or issue of bonds, as well as payments of interest and dividends to shareholders Cash inflow: sale of equity securities Cash outflow: dividends to shareholders

Revenues and Gains

report on all the income during a period of time

Cash-flow statement

reports a company's inflows and outflows of cash during a period of time -tells you whether the company generated or lost cash during a period of time

Balance sheet

represents a company's financial position at the end of a specified date -provides a snapshot of the company's assets, liabilities, and shareholder's equity

Secured Short-term loans

require the borrower to pledge specific assets as collateral, or security (this collateral, including accounts receivable or inventory, can be taken by the secured lender if the borrower doesn't repay the loan) •Commercial banks and commercial finance companies are the main sources of secured short-term loans to business. Used by borrowers whose credit is not strong enough to qualify for unsecured loans

Competitor Analysis

research pertaining to the products, services, of those in your particular industry

Which of the following refers to profits that have reinvested in the business? Retained Earnings Dividends Refunds Securities Investments

retained earnings

A credit is always recorded on the _______.

right

Marketing events or sales efforts—not including traditional advertising, personal selling, and public relations—that stimulate buying

sales promotions

Investment certificates that represent either equity or debt

securities

Stocks, bonds, mutual funds, exchange-traded funds and other types of investments that can be bought or sold are referred to as which of the following? Securities Liabilities Expenses Income statements Balances

securities

For Milton Friedman, a company's only responsibility is to its _________.

shareholders

A human resource department has set the goal to improve employee health and wellness. They aim to increase the percentage of employees that participate in nutrition coaching by 20% from the first quarter to the second quarter (a 3-month period). This is an example of: All of the above Long-term goal Intermediate goal Short-term goal None of the above

short-term goal

Executive Information System (EIS)

similar to a DSS but customized for an individual executive. These systems provide specific information for strategic decisions. •Example: a CEO's EIS may include special spreadsheets that present financial data comparing the company to its principal competitors and graphs showing current economic and industry trends

Philanthropic CSR

societal expectation: desired/expected ex: Be a good corporate citizen. Give back.

Ethical CSR

societal expectation: expected ex: Avoid questionable practices. Do what is right, fair, and just

Economic CSR

societal expectation: required ex: Be profitable. Maximize sales, minimize costs. G

Legal CSR

societal expectation: required ex: Obey laws, adhere toregulations

The core role of business in society is to increase an economy's ____.

standard of living

How is data turned into useful information?

statistics

Lean Manufacturing

streamlines production by eliminating steps in the production process that do not add benefits customers want. In other words, non-value-added production processes are cut so that the company can concentrate its production and operations resources on items essential to satisfying customers.

The "doom and gloom" view of automation and its effects on human labor views humans and machines as __________.

substitutes

This is a particular group of people or organizations on which an organization's marketing efforts are focused.

target market

Local incentives

tax breaks (e.g., many U.S. cities are competing to attract a second Amazon headquarters and, in addition to touting local attractions and a strong workforce, most of them are offering a host of tax incentives)

Promotion

techniques for communicating information about products

Robotics

technology involved in designing, constructing, and operating robots that operate with little to no human intervention

investing

the act of using money (i.e., capital) to generate returns in the form of interest, dividends, or through the appreciation of the investment product

Promotional mix

the combination of traditional advertising, personal selling, sales promotion, public relations, social media, and e-commerce used to promote a product Traditional advertising: Any paid form of nonpersonal promotion by an identified sponsor that is delivered through traditional media channels. Personal selling: A face-to-face presentation to a prospective buyer. Sales promotion: Marketing activities that stimulate consumer buying, including coupons and samples, displays, shows and exhibitions, demonstrations, and other types of selling efforts. Public relations: The linking of organizational goals with key aspects of the public interest and the development of programs designed to earn public understanding and acceptance. (e.g., lobbying, publicity, special events, internal publications, etc.) Social media: The use of social media platforms such as Facebook, Twitter, Pinterest, Instagram, and blogs to generate "buzz" about a product or company. (e.g., paying celebrities to wear a specific line of clothing and posting these images on Twitter or Instagram) E-commerce: The use of a company's website to generate sales through online ordering, information, interactive components such as games, and other elements of the website.

Corporate social responsibility

the concern of a business for the welfare of society; ◦The overall way in which a business attempts to balance its commitments to relevant groups and individuals in society (or, in other words, to its organizational stakeholders) when making decisions.

Production

the creation of products and services •Production turns inputs, such as natural resources, raw materials, human resources, and capital, into outputs, which are products and services. •Managing this conversion process is the role of operations management.

E-Commerce

the development and maintenance of a company's website and the facilitation of commerce on the website, such as the ability for customers to order products online, to get questions answered about products, and for the company to introduce new products and ideas (involves anything associated with an actual company website related to marketing) More than half of all retail sales involve an online component •Why? It's easier, faster, etc. than going to a store •Search technology and comparison-shopping sites have allowed online businesses to market their products to millions of potential customers •Online merchants can offer a far broader array of merchandise because they don't have to keep the products on store shelves

Supply Chain

the entire sequence of securing inputs, producing goods, and delivering goods to customers. •If any links in this process are weak, chances are customers—the end point of the chain—will feel it •Companies need contingency plans for supply-chain disruptions (avoid major losses with a back-up plan to determine where they'll get the resource if needed) •Effective supply-chain strategies and technology improves efficiency and reduces costs (can track inventory, manage goods, automate more processes and save time/money) •Important to develop tight bonds with suppliers (e.g., reducing the number of suppliers used and asking them to offer more services or better prices in return for an ongoing relationship) •Suppliers play an important role in supporting the operations of their customers: in meeting high quality standards, offering suggestions that can help reduce production costs, and even contributing to the design of new products.

From the "Automation and Jobs" video, we learned that machines are frequently overtaking human labor in middle skill jobs. This has led to an increase in jobs in what lower-skilled sector?

the service sector

Distribution

the set of activities that moves products from producers to consumers

Job specification

the skills, knowledge, and abilities a person must have to fill a job (i.e., the required qualifications) -These two documents (including job description) help human resource planners find the right people for specific jobs.

Job description

the tasks and responsibilities of a job

Production Process

the way a good or service is created •Need to determine which type of production process best fits with the type of good or service being produced, the company goals and customer demand.

Finish this statement: Owner/stockholder equity refers to everything that is left over if...

they sold all of the organizations assets and paid off all of its liabilities.

current assets

things a company expects to convert to cash within one year

SWOT Analysis includes strengths, weaknesses, opportunities and blank

threats

What did Milton Friedman believe was the social responsibility of business?

to increase its profits

PwC's 2017 CEO survey reports that chief executives view the__________ as the biggest threat to their business.

unavailability of talent and skills

Finance

use financial statements and other information prepared by accountants to make financial decisions. •Plan and monitor the firm's cash flows (the inflows and outflows of cash) to ensure that cash is available when needed. •Make valuations and investment decisions based on firms net worth and profitability

Virtual Private Networks (VPNs)

used to connect two or more private networks over a public network, such as the internet. Why use a VPN? • Security: they include strong security measures to allow only authorized users to access the network and its sensitive corporate information (the data you enter is encrypted so cannot be hacked) •Cost-savings: allows authorized users to connect to the corporate network when they are at home, traveling, or telecommuting (without long-distance charges) •More cost-effective for companies with widespread offices compared to creating a network using purchased networking equipment and leasing expensive private lines.

Preferred stock

usually has a dividend amount that is set at the time the stock is issued (which must be paid before the company can pay any dividends to common stockholders) • If the company goes bankrupt and sells its assets, preferred stockholders get their money back before common stockholders do. •Increases the company's financial risk because it obligates them to make a fixed payment. However, the company can miss a dividend payment without suffering the serious results of failing to pay back a debt (so more flexible) •Preferred stock is more expensive than debt financing because preferred dividends are not tax-deductible. Also, because the claims of preferred stockholders on income and assets are second to those of debtholders, preferred stockholders require higher returns to compensate for the greater risk.

Creating customer _____ is a core business strategy of many firms.

value

A core tenet of creating a psychologically safe environment is to understand individual and shared _____ within the group...

values

Primary market

where new securities are sold to the public, usually with the help of investment bankers. •In the primary market, the issuer of the security gets the proceeds from the transaction. •A security is sold in the primary market just once—when the corporation or government first issues it.

secondary market

where old (already issued) securities are bought/sold/traded, among investors (think New York Stock Exchange) •The issuers generally are not involved in these transactions. The vast majority of securities transactions take place in secondary markets, which include broker markets, dealer markets, the over-the-counter market, and the commodities exchanges.

mantra

why you exist in 2-3 words

What questions might marketing research answer for us?

´Is there a need for your product or service? ´How much money is spent on your particular industry each year? ´Who will likely be your consumers? Age? Income? Lifestyle? Etc.? ´What are their buying preferences? ´Why do they typically choose a specific product over others? ´What strategies can you utilize to make the consumers buy from you? ´Is there room in the market for your business to be successful?

short-term goals

•1 year or less (usually in several departments) •Example: increasing sales by 2% this year, cutting costs by 1% next quarter, etc.

Commercial Deposits (CDs)

•A certificate of deposit, or CD, is a type of federally insured savings account that has a fixed interest rate and fixed date of withdrawal, known as the maturity date. CDs also typically don't have monthly fees. Think of it like treasury debt, but for a bank

Companies use portal technology to provide:

•A consistent, simple user interface across the company •Integration of disparate systems and multiple sets of data and information •A single source for accurate and timely information that integrates internal and external information •A shorter time to perform tasks and processes •Cost savings through the elimination of information intermediaries •Improved communications within the company and with customers, suppliers, dealers, and distributors

Why is owner's equity important to investors/lenders?

•A larger owner's equity signifies greater financial security

Methods of recruiting

•Ads via tv, print, radio, etc. •Job/career fairs (e.g., at universities, in-house, and other locations) •Online search engines such as Monster, Indeed, Glassdoor, etc. •Social networking: e.g., LinkedIn and referrals

Retailing

•Although most retailers are involved in small businesses, most sales are made by the giant retail organizations, such as Walmart, Target, and Macy's (half of all retail sales come from fewer than 10 percent of all retail businesses.) •This small group employs about 40 percent of all retail workers. •In recent years, online retailing trends have significantly impacted retailing organizations, providing more opportunity for smaller retailers and more competition for larger retailers

Dual aspect principle

•Any kind of transaction has two effects - for every debit there is a corresponding credit of equal amount. So, the total amount recorded in the left side (debit) of accounting ledgers will always equal the total amount recorded on the right side (credit).

Data visualization

•As data become more abundant, looking at it in different ways becomes important for different organizational stakeholders •Data visualization refers to representing data in a visual context, like a chart or a map, to help people understand the significance of that data •Charts (i.e. lines, bar, and pie) often portray information simply, but data is multidimensional, so good data visualizations are just that...

Why should we invest earnings in people?

•Attracts and retains great employees •Increases innovation and performance •Builds skill sets •Boosts employer reputation •Allows upward mobility •Ensures future growth and long-term success •Encourages forward-thinking Creates a positive culture ->

3 Broad categories of financial statements

•Balance Sheets (NET WORTH) •Income Statements (PROFITABILITY) •Statements of Cash Flows (CASH)

Recent trends in operations management

•Business Process Reengineering (BPR) •Business Process Management (BPM) •Lean and agile manufacturing •Six Sigma •Reconfigurable manufacturing system (RMS) •Employee involvement •Sustainability •Behavioral operations management

3 forms of portals

•Business to employee (B2E) •Business to business (B2B) •Business to consumer (B2C).

strategies for raising funds

•By borrowing money (debt), •By selling ownership shares (equity) •By retaining earnings (profits) A basic principle of finance is to match the term of the financing to the period over which benefits are expected to be received from the associated outlay. •Short-term items should be financed with short-term funds, and long-term items should be financed with long-term funds.

Is Amazon's customer obsession working?

•By integrating recommendations into nearly every aspect of Amazon's purchasing process, from product browsing to checkout, the company has found that product recommendations, in fact, do drive sales and increase the bottom line.

Why does data matter?

•Companies are using data to make better decisions about everything from product development and advertising to hiring •Companies in the top 1/3 of their industry in the use of DDDM were, on average, 5% more productive and 6% more profitable than those who were not

Quality

•Consumer perspective: how well a product serves its purpose. •Manufacturer perspective: the degree to which the product conforms to a set of predetermined standards.

organizational stakeholders

•Customers •Employees •Owners/Investors •Local (and global) community •Suppliers

Data strategy goals

•Defines how the data will help the company meet business goals •Lays out how the company will complete the desired data activities to achieve its objectives •Describes the changes the organization needs to make to maximize the value of its data activities and outlines plans for how the company will make those changes •Establishes a timeline for completing the proposed activities, define milestones and priorities and describe a strategy for moving forward •Discusses the financial justification of the suggested data activities and how the company will benefit from them, and use insights to increase its profits and monetize its data

Short term loans

•Due within one year (whereas long-term loan mature after one year) •Short-term financing is shown as a current liability on the balance sheet and is used to finance current assets and support operations. •Can be unsecured or secured loans

What factors might be considered in determining an individual's salary?

•Employee's skills and experience •Employee's performance •Level of the position (e.g., entry versus senior or executive-level) •Competitor rates (can be found online via sites such as Glassdoor) •Financial health of the organization

What is the role of business in society?

•Employment (job creation) •Production of the goods and services that we want and need •Innovation of new goods/services that we don't know we want/need •Community leadership and support for charities •Contribute to governmental initiatives through taxes •Overall: Business (profit and non-profit) influence an economy's standard of living •Higher output = higher standard of living

goals of Not-for-Profit organizations

•Environmental preservation, mental health, decreasing homelessness, etc. •Why is it called not for profit? Any profits are generally put back into the organization, instead of going to owners/shareholders

What are the most common sources of funding for a business?

•Family and friends •Personal savings •Lending institutions •Investors Governmental agencies

Business goals and their purpose

•Goals are performance targets through which businesses measure success or failure •Purposes of Goal Setting: 1.Provides direction and guidance for managers at all levels 2.Helps the organization allocate resources 3.Helps to define the corporate culture Helps managers to assess performance

How can growth be measured?

•Growth can be measured in a variety of ways, but most commonly, it is measured by: -Revenue -Cost -Profits -Earnings per share (EPS) -Customer demand -Customer retention -Market share -Workforce health (i.e. employee satisfaction and retention)

Networks have improved productivity and enhanced collaboration in a number of ways:

•Information-sharing is fast and simple through file-sharing •Shared databases also eliminate duplication of effort. •Employees at different sites can "screen-share" and collaborate through computer files. Their computers are connected by phone or cable lines, they all see the same thing on their display, and anyone can make changes that are seen by the other participants. The employees can also use the networks for videoconferencing.

Diversification growth strategies

•Investing in or acquiring products/businesses which are outside the core competencies and industries •Use when all other growth strategies within the current market/industry have been exhausted -Synergistic strategy -Acquire products/services unrelated to the core -Conglomerate diversification-acquiring businesses that are unrelated to the company's current business

Data strategy

•It is a "centralized, integrated concept that articulates how data will enable and inspire business strategy" (MIT CISR Data Board). It sets the foundation for everything the organization does related to data.

Why are debits and credits used in accounting?

•It provides a relatively simple way to record and summarize the increases and decreases of a company's balances of assets, liabilities, equity, income and expenses. •In accounting, every account or statement has two sides known as debit and credit •For example, in a balance sheet, assets are reported on the debit side (left) whereas liabilities and equity are presented on the credit (right) side.

Performance planning and evaluation

•It's important to communicate to new employees the expectations around performance (and the ways in which they will be evaluated). •Job expectations are communicated in a variety of ways, including job objectives, schedules, deadlines, and product and/or service quality requirements.

Examples of assets

•Land •Buildings •Property/Equipment •Office Supplies •Patents •Accounts Receivable (payments due to the company)

Critical Path Method (CPM)

•Manager identifies all activities required to complete a project, the relationships between these activities, and the order in which they need to be completed. •Manager develops a "Network Diagram" to show how the tasks are dependent on each other. •Analysis is conducted to identify the "critical path" •Critical path represents the path of activities that if not on time, the entire project will fall behind •This method helps determine a projects anticipated "end date"

Intensive growth strategies

•Market Penetration (i.e. Capture a larger portion of the market) -Increase sales through effective marketing strategies within the current target market -Lower selling price (if possible) -Expand distribution channels - •Market Development (i.e. Market expansion) -Expand sales through expanding geographic representation -Franchising (think Dunkin Donuts) -Licensing (think most software applications) -Product Development Increase sales through new products/services -bl

For example, how might different departments in a business utilize a customer database (containing information such as customers' name, address, payment method, products ordered, price, order history, etc.)?

•Marketing: can track new orders and determine what products are selling best •Sales: can identify high-volume customers or contact customers about new or related products •Operations: can use order information to obtain inventory and schedule production of the ordered products •Finance: can use sales data to prepare financial statements

Why was Amazon unsuccessful while Netflix was very successful in creating a tv show?

•Netflix used data and brains where they belonged in the process. They first used data to understand lots of pieces about their audience that they otherwise wouldn't have been able to understand at that depth, but then the decision to put the pieces back together again and make a decision like "House of Cards" was not in the data. It was made by the expert team.

Operating and Net Income

•Operating Income: gross profit from operations minus operating expenses •Net Income (Net Profit or Net Earnings): gross profit minus operating expenses and income taxes

3 types of facility layouts

•Process layout: a type of layout wherein like machines are grouped in a single space, and is primarily used when the production process in non-repetitive in nature •Product layout: workstations or departments are arranged in a line with products moving along the line. Good for products that require a repetitive production process (e.g., food processing plants) •Fixed Position layout: the product or service stays in one place while workers and machinery move to it (e.g., good for large products, such as airplanes, and for services such as housecleaning)

primary role of accounting

•Provide tangible information on the financial strength of the organization

Growing by going global

•Reasons to go global early in development -Product lives are short due to rapid technology changes -R&D is expensive and must be spread across many markets Competition and saturated markets •Characteristics of successful globalization - A global vision from the start - Internationally experienced managers - Strong international business networks - Preemptive technology - A unique intangible asset - Closely linked product/service extensions - A closely coordinated organization on a world-wide basis •Finding the best global market -Information sources •International Trade Statistics yearbook of the United States •International Trade Administration offices in Washington, D.C. and at district levels •Department of Commerce •Export Financing sources -Bank financing -Internal cash flow -Venture capital or private investor capital -Prepayment from foreign client -Down payment from foreign client -Progress payments from foreign client •Assurances -The Import-Export Bank •Foreign agents, distributors, and trading companies -Choosing an intermediary •Due diligence work to assure the right partner -Choosing a freight forwarder •Handles all aspects of delivering the product

Examples of owner/stockholder equity

•Retained Earnings •Preferred Stock •Common Stock •Capital Stock Dividends

Examples of liabilities

•Salaries/Wages Payable •Rent Payable •Taxes Payable •Notes Payable •Bonds Payable •Accounts Payable (payments due to creditors or suppliers)

Point of Sales (POS) systems example

•Server takes the order and enters it into the POS •Order is routed to appropriate printers •Out of stock items are entered by kitchen/management •Voided items are entered by servers/management with reasons •Bill is generated •Payment is collected Also... •Data on sales of each item versus total sales •Data on weekly sales totals versus food costs •Data on daily, weekly, monthly, and annual sales

What are financial statements?

•Several types of reports that summarize a company's financial status to stakeholders and to aid in managerial decision making •It shows where the company's money came from, where it went, and where it is now

stocks

•Stocks from many of the large, well-established firms (e.g., Apple, Verizon, etc.) pay a regular return on the invested dollar in the form of dividends. •Represent a partial share of the companies worth

US Treasury Debt

•These investments (known as fixed-income investments) are considered the safest form of investing •They provide steady income at a rate slightly higher than typical savings account from the bank. •Protection comes from the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), and the strength of the U.S. government.

What is the performance of Key Performance Indicators (KPIs)?

•They drive the performance of your business. •They provide crucial information on sales, marketing, finances and productivity. •They enable you to make changes to the segments of the business that may be underperforming. ** BUT, in order to make quantifiable improvements, you need to select the most appropriate performance indicators for your organization (only by setting precise goals for yourself can you define your KPIs.)

how to select Key Performance indicators

•They should offer you insight into the progress made by your business (towards the goal) in a given period of time. •For example, if your goal is to improve sales by 20% in the next year, then your KPIs must include conversion rate, daily sales and website traffic, etc. •In order to choose goal-aligned KPIs, you must ask yourself the following questions: •What is the purpose of my business? •What is it that I wish to achieve in the next fiscal year? •How will I be able to know that I have reached my goals?

Financial management

•This refers to all of the processes and tasks involved in managing an organization's money so that it achieves its financial goals. •Track the flow of money in and out of the organization. •Collaborate with groups across the organization to determine how available funds will be used and how much money is needed. ****Their main functions are: •Financial Planning •Investing (i.e. Spending Money), and •Financing (i.e. Raising Money)

According to Google, what makes a good manager?

•To answer this, they created the "Great Managers Award" to encourage employees to nominate managers they felt made a difference. Employees were required to provide examples of good manager behavior in the nomination application. Google also interviewed managers about their practices. •Using this data, Google established eight behaviors for good managers, as well as the top three reasons managers might struggle in their roles. •Outcome: Google then used this data to measure managers against these behaviors, enact a twice-yearly feedback survey and revise its management-training program.

How to develop your data strategy

•To build your data strategy, first identify specific, measurable goals. Establish both long-term and short-term goals, as well as both overarching objectives and ones that apply to individual tasks and departments. •Ultimately, your data should help you achieve your overall business goals. Describe how data can help you achieve those objectives and how each department will benefit from data.

online investing options

•Today almost all brokerage firms offer online trading capabilities. •Online brokerages are popular with "do-it-yourself" investors who choose their own stocks and don't want to pay a full-service broker for these services. •Some of the better examples: •Facet Wealth •Work personally with CFP professionals •SoFi •Combination of actual advisors and robo-advisors •ZACKS Trade •Innovative platform for the ACTIVE investor •Others: •E*trade TD Ameritrade

Unsecured short-term loans

•Unsecured loans: based on the organization's creditworthiness and the lender's previous experience with them •3 main types of unsecured short-term loans: trade credit, bank loans, and commercial paper

Venture capital

•Venture Capital is NOT a common source of funding •Available to exceptional start-ups with a great likelihood of high value within the next few years (must demonstrate product/market opportunity and proven management teams) •Typically reserved for new growth industries, multimedia communications, biotechnology, or high-technology products in new markets that project increasing sales

Integrative growth strategies

•Vertical Integration Strategies -Growing forward/backward within the distribution channel (i.e. purchase suppliers and buyers) •Horizontal Integration Strategies -Buying up competitors within the current industry (i.e. purchase competitors)

Increasing Equity:

•When a company operates profitably, its assets increase faster than its liabilities. If profits are retained in the business, instead of paid out as dividends to stockholders, owner's equity will increase. It also increases if owners invest more of their own money to increase assets.

Why is the Statement of Cash Flows important to creditors and stockholders?

•When they know how an org obtained and used funds throughout the year, they can more easily interpret year-to-year changes in the balance sheet and income statement and determine whether the business has access to the cash needed to pay off its debts.

What KPIs should you be interested in?

•You might be interested in KPIs related to your market, your customers, your financial performance, and/or your employee performance

Computer-Aided Design (CAD)

•computers are used to design and test new products and modify existing ones. Engineers can analyze the products, make changes, and test prototypes before manufacturing a single item

Computer-Aided Manufacturing

•computers develop and control the production process (they analyze the steps required to make the product, then automatically send instructions to the machines that do the work)

Human Resources Management (HR)

•is the process of hiring, developing, motivating, and evaluating employees to achieve organizational goals. •Core role within an organization: Leverages employees for competitive advantage

Corporate bonds

•issued by businesses with a set interest rate and maturity date that investors buy as they become the lender. •The company will return periodic interest payments to the investor and return the invested principal when the bond matures. Each bond will have credit rating issues by rating agencies (most secure rating = AAA)

recruitment

•the process of attracting qualified people to form an applicant pool

Data-Driven Decision Making (DDDM)

•the process of making organizational decisions based on actual data rather than intuition or observation alone •Most professionals understand that— without data—bias and false assumptions (among other issues) can cloud judgment and lead to poor decision making.

Intermediate goals

•typically 1-5 years (usually in several departments) •Ex: Marketing: increase sales by 3% in 2 years •Ex: Production: reduce expenses by 6% in 4 years •Ex: HR: reduce turnover by 10% in 3 years •Ex: Finance: increase ROI 3% in 2 years

Long-term goals

•typically 5 years or more •Example: American Express - doubling the number of participating merchants over the next 10 years

Typical jobs for finance majors

◦Financial/budget analyst (All small and large firms) ◦Investment/Financial advisor (BoA, Morgan Stanley, J.P. Morgan, UBS, Wells Fargo) ◦Financial planner (Morgan Stanley, Edward Jones, independent firms) ◦Insurance underwriter (UnitedHealth, Allianz, Anthem, Kaiser Foundation

Unicorn

◦Privately held startup company valued at over $1 billion Ex: Airbnb, JUUL, DOORDASH

Examples of indirect pay

◦pensions, health insurance, vacation time, sick time, tuition or paid professional development, retirement contribution, unemployment compensation, worker's compensation, Social Security, and many others)