MGMT 1 Final
CFO
(Chief Financial Officer)
2000s
-Business intelligence (BI) or analytics: use of data analytic tools to analyze organization's raw data and derive useful insights from them; focus on what's important, such as deciding how to react to problems and opportunities -Knowledge sharing important to keep pace with change
Product development
-Deciding what to buy and whom to buy it from, consumers perform cost/benefit analyses -Can't just come up with one group of products or menu items or destinations one time - needs to be ongoing process -Marketers need to think like consumers in assessing value - not value to marketer but to consumer
Marketing research process
-Defining problem or opportunity and determining present situation --Guardians, defender, challenges -Collecting research data --Secondary data, primary data --Conduct informal consumer surveys. Focus groups, competitor's customer, survey salesforce, become "phantom" customer, best media analytics -Analyzing data --Marketers turn data into useful information through careful, honest interpretation -Choosing best solution and implementing it --Marketers use analysis to plan strategies and make recommendations --Marketers evaluate actions and determine if further research needed
Social media analytics
-Drop an Asset - one sheet, trailer , interview: listen - Goal = Engage Consumer & Develop Insight: theme -Incorporate Themes into Marketing Messages -Identify Super Fans and Influencers --Feed Special / Unique Content to Amplify Messages & Unique Content --Issue of "Sponsored" Content
Obtaining short-term financing:
-Family and friends: --Agree specific loan terms --Put agreement in writing --Arrange repayment some way they would for bank loan -Commercial banks: banks generally prefer to lend short-term money to larger, established businesses; bank loans virtually disappear, -Secured loan: backed by collateral; issued with some form of collateral -Unsecured loan: doesn't require any collateral Line of credit: given amount of unsecured short-term funds bank will lend, provide funds are readily available -Commercial finance companies: non-deposit-type organizations that make short-term loans to borrowers who offer tangible assets (property, plant, equipment) as collateral -Factoring: process of selling accounts receivable for cash -Factors (market intermediaries): charge more than banks, but many small businesses don't qualify for loans -Commercial paper unsecured promissory notes, in amounts of $100000+ come out due to 270 days or less; only financially stable firms can sell it -Credit cards: estimated one-third of small firms use credit cards to finance business; convenient but costly for small businesses -Benefits: --Required buy certain goods or rent a car --Helps keep track of purchases --More convenient than cash or checks --Paying off credit card balances on time can improve credit score Cons: --Too easy buy items no otherwise buy --Debt pile up --Hacking and credit card fraud
Key Dodd-Frank provisions:
-Gave government power to seize and shutter large financial institutions on verge of collapse -Put derivatives and complicated financial deals (including those that packaged subprime mortgages) under strict government oversight -Required hedge funds to register with SEC and provide information about trades and portfolio holdings -Created Consumer Financial Protection Bureau to watch over interests of American consumers by reviewing and enforcing federal financial laws
Six rules for branding:
-Keep it simple -Don't just improve, reinvent your sector -Embrace big ideas -Use strong symbols for customers to easily identify -Give customers reason to seek out your company -Communicate regularly with your customer base
Sarbanes-Oxley Act:
-Prohibits accounting firms from providing certain non-auditing work to companies they audit -Strengthens protection for whistleblowers who report wrongful actions of company officers -Requires company CEOs and CFOs to certify accuracy of financial report and imparts strict penalties for any violation of securities reporting -Prohibits corporate loans to directors and executives of company -Establishes five-ember Public Company Accounting Oversight Board (PCAOB) under Securities and Exchange Commission (SEC) to oversee accounting industry --Public company accounting oversight board (PCAOB): non-profit organization that regulates audits of publicly traded companies to minimize audit risk. --Securities and exchange commission (SEC): U.S. government agency created by Congress to regulate the securities markets and protect investors -Stipulates that altering or destroying key audit documents will result in felony charges and significant criminal penalties
Bringing manufacturing back to U.S. easier said than done
1. Modern products require high degrees of specialization 2. Scaling up production requires unique skills 3. Manufacturers want maximize utilize plant and equipment 4. Rise of lean production and "inventory is evil" 5. Relentless drive to reduce costs
Information technology (IT)
1980s, technology used to store, retrieve, and send information effectively; business deliver goods and services whenever and wherever customer wants them; broke time and location barriers, created new organizations and services that are independent of location; electronic communications provide substantial time savings
Robotics
24 hours manufacturing, great precision, improve productivity, reduce number jobs for humans, service business also, repetitive tasks, efficient
Retailing
3.7 million retail stores in U.S.; U.S. employ more than 42 million people and operate under many different structures; organization that sells ultimate consumers
Pricing objective
Achieving target return on investment of profit Building traffic Achieving greater market share Creating image Furthering social objectives, both short-run and long-run
Market research benefits:
Analyze customer needs and satisfaction Analyze current markets and opportunities Analyze effectiveness of marketing strategies Analyze marketing process and testing currently used Analyze reasons for goal achievement or failure
Business-to-business advertising
B2B sales channel
Grove's basic production requirements:
Build and deliver products in response to demands of customer at scheduled delivery time Provide acceptable quality level Provide everything at lowest possible cost
How to keep loyal customers
Build trust Be open about mistakes: service recovery Listen Promise only what you can deliver Show appreciation Remember employees customers too
How to bring new products to market
Build up slowly: when starting up, don't go too fast Design for single function: pick one function and make it best you can Package it perfectly: "unboxing" your new buy is est part, exciting to open Become status symbol: make it something to show off
Types of informations:
Business process information Physical-world observations Biological data Public data Date that indicate personal preferences of intentions
CFP
Certified Financial Planner
CFA
Chartered Financial analyst
Obtaining long-term financing:
Debt financing: long-term financing loans generally come due with 3 or 7 years but may extend to 15 or 20 years Term-long agreement: promissory note that requires borrower to repay loan in specified installments risk/return trade-off: principle that greater risk lender takes in making loan, higher interest rate required Issuing bonds: like IOU with promise to repay amount borrowed, with interest , on certain data Unsecured (debenture) bonds: backed only by reputation of issuer Venture capital: money invested in new or emerging companies that are perceived as having great profit potential Leverage: raising needed funds through borrowing to nice rae firm's rate of return; increases risk but enhances firm's ability to increase profits Cost of capital: rate of return company must earn inorder to meet demands of its lenders and expectations of equity holders
6 D's of exponentials
Digitization Deception Disruption Democratization Dematerialisation Democratization
Social listening
Drop asset - one sheet, trailer, interview Goal- engage consumer & develop insight Incorporate themes into marketing messages Identify super fans and influencers -Feed special/unique content to amplify messages and unique content -Issue of "sponsored" content
Corporate funds
Fund sponsored by an employer to provide benefits for its employees or the employees of an associated employer and which is not a Public Sector Fund, an Industry Fund, a Retail Fund or a Service Provider Fund.
Nonprofit marketing:
Fundraising Obtaining resources Promoting their message Attracting new members Creating awareness of social issues
Promotional campaign:
Get to know customer base Post something new every day Develop fun, suitable hashtags Use publishing calendar Engage with customers tough contests and entertainment Follow back and reply to commenters Get familiar with new site features Measure effectiveness of posts
Stock quotations:
Highest and lowest price for day High and low over past 52 weeks Dividend paid Dividend yield Ratios such as pice/earnings ratio Earnings per share Numbers of shares traded
Roth IRA
IRA where you don't get upfront deductions on your taxes, but earnings grow tax-free and are tax-free when they are withdrawn
Promotional campaign steps:
Identify target market Define objectives for each element of promotion mix Determine promotional budget develop unifying message Implement plan Evaluate effectiveness
Production process:
Inputs: land, labor, capital, entrepreneurship, knowledge Production control: planning, routing, scheduling, dispatching, follow-up Outputs: goods, services, ideas
Choose right investment strategy
Investment risk Yield Duration Liquidity Tax consequences Take investing class Attend conference Read investing books Consult with experts Have diversification plan Look stock histories
Start-up capital:
Join crowdfunding site Seek out microfiancing Use asset-based lending or factoring Sweet-talk vendors you want to do business with Ask family an friends to invest
U.S. maintain competitiveness
Latest Production techniques Focus customers Close relationships with suppliers Continuous improvement Computer-aided design and manufacturing Flexible manufacturing Lean manufacturing Mass customization Robotics 3D printing
6 Ms
Mission, market, message, media, money, measurement
Tax deduction for homeowners:
Mortgage interest Real estate/property taxes Mortgage insurance Mortgage points Home offices Medically required home improvements
New product potential
NFT's metaverse, customized/personalized products
fAil to raise capital:
No formalized business pan to show need or plan for returning on investment Company does not know how much to request from lender Company poor credit Company whether overruled or undervalued Management unrealistic growth
New product development
Odds new product will fail high
Online broker:
Online trading services, such as TD Ameritrade, E*trade, and Fidelity, offer securities trading services online to buy and sell stocks and bonds Charge much lower trading fees
Health insurance:
Patient Protection and Affordable Care Act (PPACA) requires nonexempt individuals to maintain minimum level of health insurance Popular health savings account (HSA)
Types of social commerce:
Peer-to-peer sales platforms Social network shops and shopping apps Group buying and daily deals Peer recommendations User-curated shopping crowdfunding/crowdsourcing Social shopping
Margin
Portion of stock's purchase price that investor must pay with their own money
Television advertising
TV advertising expensive but still dominant medium; DVRs and on-demand services challenge TB advertising because viewers can skip ads
Control assets:
Take inventory of financial assets Keep track of all expenses keep track all expenses Prepare budget Pay off debts Start saving plan Borrow only to buy assets that increases in value or generate income
Demand-based pricing:
Target costing: designing product that it satisfies customers and meets profit margins desired by firm
Privacy issues
U.S. companies legally scan employees' email; hackers read messages; personal information stored on Internet
Securities and exchange commission (SEC)
U.S. government agency created by Congress to regulate the securities markets and protect investors; federal agency that has responsibility for regulating various exchanges Created in 1934 through securities and exchange act
ICANN
U.S. government gave away ownership in 2016, entirely private entity
S dutt and applications stored at offsite data centers accessed over internet
Wholly behind firewall Run on remote computer Hybrid clouds consist of private clouds for essential tasks, but use public cloud as needed
1990s
World Wide Web chang how interact with one another and information New way access indiana Bluetooth technology create conveniences by providing wireless communication system
business model
a design for the successful operation of a business, identifying revenue sources, customer base, products, and details of financing.
treasury bond
a government bond issued by the US Treasury.
treasury note
a note issued by the US Treasury for use as currency.
municipal bond
a security issued by or on behalf of a local authority.
treasury bill
a short-dated government security, yielding no interest but issued at a discount on its redemption price
Sovereign funds
a state-owned investment fund comprised of money generated by the government, often derived from a country's surplus reserves
Cloud networking
accessing networking resources from centralized thief-party provider using WAN; cloud-based networking
Tax accountant
accountant trained in tax law and responsible for preparing tax returns or developing tax strategies
Certified public accountant (CPA)
accountant who passes series of examinations established by American Institute of Certified Public Accountants (AICPA)
Private accountant
accountants who work for a single organization within its internal finance department; accountant who works for single firm, government agency, or nonprofit organization
Financial accounting
accounting information and analyses prepared for people outside organization
Government and non-for-profit accounting
accounting system for organizations whose purpose is not generating profit but serving ratepayers, taxpayers, and others according to duly approves budget
managerial accounting
accounting used to provide information and analysis to managers within organization to assist them in decision making Costs of production Costs of marketing Preparation and control of budgets Minimizing tax liabilities
Retained earnings
accumulated earnings from firm's profitable operations that were reinvested in business and not paid out to stockholders in dividends
Stock splits
action by company that gives stockholders two or more shares of stock for each one they own Cause no change in firm's ownership structure and no immediate change in investment's value Firms ca nnever be forced to split stocks
Marketing
activity, set of institutions and processes for creating, communicating, delivering, and exchange offering with value for customers, clients, partners, and society at large Websites help buyers find best price, identify product features, and question sellers Blogs and social networking sites that cultivate consumer relationships
Marketing concept era
after WWII, consumer spending boom developed; businesses knew needed to be responsive to customers if they wanted their business Customer orientation: finding out what customers want and then providing it Service orientation: making sure everyone in organization committed to customer satisfaction Profit orientation: focusing on goods and services that will earn most profit
Promissory note
agreement with promise to pay supplier specific sum of money at definite time
Total fixed costs
all expenses that remain same no matter how many products made or sold
Business-to-business (B2B) market
all individuals and organizations that want goods and services to use in producing other goods and services or to sell, rent, or supply goods to others; products often sold and resold several times before reaching final consumers Manufacturer, retailers, hospitals, schools, nonprofits, government
Consumer market
all individuals or households that want goods and services for personal consumption or use; size and diversity of consumer market forces marketers to decide which groups they want to serve
Promotion
all techniques sellers use to inform people about and motivate them to buy their products or services Advertising, personal selling, public relations, publicity, word of mouth, sales promotions
Convertible bonds
allow bondholders to convert their bonds into shares of common stock
Social media
allows businesses to get exposure and collaborate with consumers on product development, service enhancement. Promotion
Fixed-position layout
allows workers to congregate around product
Owners' equity
amount of business that belongs to owners minus any liabilities owned businesses
Baldrige awards
an award established by the U.S. Congress in 1987 to raise awareness of quality management and recognize U.S. companies that have implemented successful quality management systems
Marketing research
analysis of markets to determine opportunities and challenges, and to find information needed to make good decisions Research used to identify products consumers have used in past and what want in future Research uncovers business trends, ecological impact of decision global trends, more
Direct marketing
any activity that directly links manufacturers or intermediaries with ultimate customers
Publicity
any information about individual, product, or organization that's distributed to public through media and that's not paid for or controlled by seller Advantages: -Third party remarks very credible for consumers -Lower cost vs. advertising for similar exposure -Digital greatly expands opportunities and demand -Expand coverage by leverage their base Disadvantages: -No control over whether media will use story or when they may release it -It can be good or bad -Results unpredictable -News travels fast - hard to respond -Once story has been run, it is not likely to run again Era fake news
NFT
anything digital, art, drawing, music, twt, videos, GIFs
Online advertising
appear on computers as people visit different websites; online ads attempts to get potential customers to website to learn about product
Emerging mobile/on-demand marketing era
as digital technology continues to grow, consumer demands expected to rise Now - customers want to interact anywhere Can I? - they want to use information in new ways that create value for them For me - consumers expect personalized experiences Simple - consumers expect all interactions to be easy
Ratio analysis
assessment of firm's financial condition using calculations and interpretations of financial ratios developed from firm's financial statements Liquidity ratios Leverage (debt) ratios Profitability (performance) ratio Activity ratios
Fixed assets
assets that are relatively permanent, such as land, building, equipment
Packaging functions
attracts customer attention, offer protection (during transportation, handinglin and storage), offers protection from theft (UPC, RFID), explains benefits, expresses warnings, meets government and seller requirements
Financial managers
auditing, managing taxes, advising top management on financial matters, collecting funds (credit management), controlling funds (funds management), obtaining funds, budgeting, planning Issues: market unpredictability, interest rates, cyberthreats, financial regulations from government, volatility of dollar, foreign competition, environment regulations What are the organization's long-term goals and objectives? What funds do we need to achieve a firm's long-term goals and objectives? What sources of long-term funding (capital) are available, and which will best fit our needs?
Other insurance
automobile insurance and liability insurance
Dow Jones Industrial Average (the Dow)
average cost of 30 selected industrial stocks, used to give indication of direction of stock market over time Critics say Dow too small and suggest S&P 500 (400 industrial, 40 financial, 40 public utility, 20 transportation stocks)
Secured bonds
backed by collateral such as land or equipment
Secured loan
backed by collateral; issued with some form of collateral
Unsecured (debenture) bonds
backed only by reputation of issuer
Commercial banks
banks generally prefer to lend short-term money to larger, established businesses; bank loans virtually disappear,
Gantt chart
bar graph showing production managers what projects being worked on and what stage they are in given time
10/29/1929
black tuesday; market lost 13 percent of its value
blogging/vlogs
blogs great way to interact with customers and improve company's website ranking
Journal
bookkeepers divide firm's transactions into meaningful categories and post them into record book or computer program
Marketing challenges
brand awareness, social media, converting leads into customers, gaining customer insight, budgeting, competing in global markets
Manufacturer' brands
brand names of manufacturers that distribute products nationally
Trademark
brand that has exclusive legal protection for both its brand name and its design
Hackers
breach sites and steal vital personal information, such as names, e-mails, passwords
Umbrella policy
broadly based insurance policy that saves you money because you buy all your insurance from one company
Public accountant
business or individual who helps a range of clients, from individuals to corporations, prepare financial documents; accountant who provides accounting services to individuals or businesses on fee basis
Managing information
business people faced with infoglut, overabundance of data Quality Completeness Timeliness Relevance
Diversification
buying several different investing alternatives to spread risk of investing
Contrarian approach
buying stock when everyone else selling or vice versa
Earning per share (EPS):
calculated as a company's profit divided by the outstanding shares of its common stock.
5 C's of credit
capacity, capital, collateral, conditions, character
Factors (market intermediaries)
charge more than banks, but many small businesses don't qualify for loans
Comptroller
chief accounting officer
Explicit knowledge
codified, documated, easily reproduced, and widely distributed Can be documented Can be widely distributed Can be easily replicated Can be reused many times at very low cost
Data
collected fro everything we do
ISO 14001
collection of best practices for managing organization's impact on environment
Exchange-traded funds (ETFs)
collections of stocks that are traded on exchanges but traded more like individual stocks than like mutual funds
Instability
combination of computer error, human error, malfunctioning software; overly complex marriage of software, hardware, and networking equipment
Product mix
combination of product lines offered by manufacturer
Promotion mix
combination of promotional tools organization uses
Whole life insurance
combines pure insurance with savings so you but both insurance and savings plan; stays in effect until age 100
ISO 9001
common name given to quality management and assurance standards
Social media advertising
companies can measure how many times post viewed or shares, social maida laos marketers to test promotions before bringing them to traditional media Owned: paid for SEO, banner ads, video Earned: shared via likes, posts; search rankings
Storage function
companies must have goods available in various parts of country ready to be shipped locally when ordered
Financial planners
companies offering other businesses financial services, sometimes one-stop financial centers or financial supermarkets
Brick & mortar e-commerce
companies that have a physical presence (e.g., a retail shop in a building) and offer face-to-face customer experiences.
Intranet
company wide network, closed to public access, that uses Internet-type technology
Acid-test ratio (quick ratio)
compares a company's "quick assets" (cash and accounts receivable) to its current liabilities
Comparison advertising
compares competitive products
Materials requirement planning (MRP)
computer-based operations management system that uses sales forecasts to make sure needed parts and materials available at right time and place
Product development and testing
concept testing takes product idea to consumers to test reactions; crowdsourcing platforms allow public to give their opinions of potential products
Time value of money (TVM)
concept that dollar today worth more than dollar tomorrow
Prospectus
condensed version of economic and financial information that company must file with SEC before issuing stock; prospectus must be sent to prospective investors
Quality
consistently producing what customer wants while reducing errors before and after delivery to customer
Specialty goods and services
consumer products with unique characteristics and brand identity; because products perceived as having no reasonable substitute, consumer puts forth special effort to purchase them
Retail advertising
consumers by various retail stores
Annuity
contract to make regular payments to person for life or for fixed period; guarantees income until you die -Fixed annuities: pay policy holder specified interest -Variable annuities: provide ninemsn choices identical to mutual funds
Bond
corporate certificate indicating that person has lent money to firm Advantages: Bondholders creditors,not owners of firm and can't vote on corporate matters Bond interest tax deductible Temporary source of funding and are eventually repair Repaid before maturity date if they contain call provision Disadvantages: Increase debt and can negatively affect market's perception of firm Paying interest on bonds is legal obligation If interest isn't paid, bondholders can take legal action Face value of bond must be rapid on maturity date
Revenue
cost of goods sold - gross profit (gross margin) - operating expenses = net income before taxes; monetary value firm received for goods sold, services rendered, or other payments
Cost-based pricing
cost-based pricing measures cost of producing product including materials, labor, overhead
Variable costs
costs change according to level of production
Operating expenses
costs involved in operating business, such as rent, utilities, and salaries
B2C
coupons, cents-off promotions, sampling, premiums, sweepstakes, contests, bonuses, catalogs, demonstrations, special event, lotteries, in-store displays
Homeowner's or renter's insurance
covers cost of items you own if they are destroyed; guaranteed replacement cost covers cost to replace items as new; depreciated cost covers current value of replacement items
Institutional advertising
create attractive image for organization rather than for product
Product advertising
create interest among consumer, commercial,and industrial buyers
Production
creation of finished goods and services using factors of production - land, labor, capital, entrepreneurship, knowledge
Product differentiation
creation of real or perceived product differences; use mix of branding, prices, advertising, and packaging to create different images
Knowledge management
critical organizational success
Accounts payable
current liabilities involving money owed to others for merchandise or services purchased on credit but not yet paid for
blockchain
database that exists on many servers at the same time
Yankee bond
debt obligation denominated in U.S. dollars that is publicly issued in the U.S. by foreign banks and corporation, and sometimes even governments
Brand loyalty
degree to which customers are satisfied like brand, and are committed to further purchases
Neurosciences
demographic micro-targeting, A/B testing, competitive benchmarking, eye-tracking, reaction graphs, emotion heatmaps, norm comparisons, survey correlation, social analytics dashboard
Tax-deferred contributions
deposits for which you pay no current taxes but earnings earned taxed as regular income after withdrawal
Production management
describe all activities managers do to help firms create goods
certified public accountant (CPA)
designation given to those who meet education and experience requirements and pass an exam
Sales promotion
designed to supplement personal selling, advertising, and public relations, take place both within and outside company
Flexible manufacturing
designing machines to do multiple tasks so that they can produce variety of products
Target costing
designing product that it satisfies customers and meets profit margins desired by firm
Sensors
detect moment anything goes wrong
Concept testing
developing accurate description of product and asking people whether concept (idea of restaurant) appeals to them
Mass marketing
developing products and promotions to please large groups of people Little market segmentation
One-to-one marketing
developing unique mix of goods and services for each individual consumer
Cash flow
difference between cash coming in and cash going you of business
Market segmentation
divide total market into groups whose members have similar characteristics
geographic segmentation
dividing market by cities, counties, states, regions
Volume or usage segmentation
dividing market usage (volume of use)
Demographic segmentation
diving market by age, income, education level
Benefit segmentation
diving market by determining which benefits of product to talk about
Psychographic segmentation
diving market using group's values, attitudes, and interests
Will
document that names guardian for children, states how want assets distributed, and names executor for estate
Unsecured loan
doesn't require any collateral
Annual report
early statement of financial condition, progress, and expectations of organization Management's discussion and analysis of operations Balance sheet Income statement Statement of cash flow Auditor's opinion
Liquidity
ease with which asset can be converted into cash
Assets
economic resource (things of value) owned by firm; items can be tangible or intangible Assets = equity liabilities + owners
Phishing
emails set up to trick victims into giving important information to bogus website Can't access website through link in email
Get customers emotion about product
emphasize product;s benefit to customer; use emotion-laden advertising
Interactive advertising
enables customers to choose information they receive
Credit cards
estimated one-third of small firms use credit cards to finance business; convenient but costly for small businesses
Cash budget
estimates cash inflows and outflows during particular period like month or quarter
Independent audit
evaluation and unbiased opinion about accuracy of company's financial statements
Total product offer
everything that consuemrs evaluate when deciding whether to buy something; products evaluated on different dimensions both tangible and intangible, marketers must think like and talk to consumers to find out what's important
Stock certificate
evidence of stock ownership that specifies name of company, number of shares it represents, and type of stock being issued
Maturity date
exact date issuer of bond must pay principal to bondholder
Over-the-counter (OTC) market
exchange that provides means to trade stocks not listed on national exchanges
Need for operating funds
expenses incurred in the day-to-day operations of the community
Principal
face value of bond
Personal selling
face-to-face presentation and promotion of goods and services; listen to customer needs, help reach solution, do everything possible to make transaction as simple as possible
Operations management planning
facility location for manufacturers Labor costs Availability resources Time to market, access transportation and proximity to suppliers and customers Quality life Train or retrain local workforce Solve problems: - Facility location - Facility layout - Materials requirement planning - Purchasing - Inventory control - Quality control
10/27/1997
fears economic crisis in Asia cause widespread panic and losses
5G
fifth-generation wireless, expected to be 100 times faster than 4G
2008
financial crisis fueled massive exodus from stock market, resulting in record losses
Securities markets
financial marketplaces for stocks and bonds and serve two primary functions Assist businesses in finding long-term funding to finance capital needs Provide private investors place to buy and sell securities as stocks and bonds
Statement of cash flows
financial statement that reports cash receipts and documents related to firm's three major activities Operations Investments financing
Balance sheet
financial statement that reports firm's financial condition at specific time and is composed of three major accounts - assets, liabilities, owners' equity
Income statement
financial statement that shows firm's profit after costs, expenses, and taxes; it summarizes all resources that have come into firm (revenue), all resources that have left firm, expenses, an resulting net income or net loss revenue
Customer orientation
finding out what customers want and then providing it
Niche marketing
finding small but profitable market segments and designing or finding products for them
Biological technology:
fingerprint sensors or retinal scanners allow organizations to identify people with near-perfect accuracy
Initial public offering (IPO):
first public offering of corporation's stock
FIFO
first-in, first-out
Profit orientation
focusing on goods and services that will earn most profit
Social commerce
form of electronic commerce that involves using social media, online media that supports social interaction and user contributions to assist in online buying and selling of products and services
Cloud computing
form virtualization in which company
Infomercials
full-length TV program devoted exclusively to promoting goods and services
Purchasing
function in firm that searches for quality material resources, finds best suppliers, and negotiates best price for goods and services
Pension funds
fund that is designed to provide retirement income Sovereign funds: a state-owned investment fund comprised of money generated by the government, often derived from a country's surplus reserves Public sector funds: funding that comes from the public treasury Pirate independent funds: the most common type of private equity, and unlike captive funds, the majority of company shares are not held by the investor. Corporate funds: Fund sponsored by an employer to provide benefits for its employees or the employees of an associated employer and which is not a Public Sector Fund, an Industry Fund, a Retail Fund or a Service Provider Fund.
Public sector funds
funding that comes from the public treasury
Long-term financing
funds needed for more than year
Short-term financing
funds needed for year or less
Debt financing
funds raised through various forms of borrowing that must be repaid; long-term financing loans generally come due with 3 or 7 years but may extend to 15 or 20 years
Rack jobbers
furnish racks or shelves of merchandise such as music, magazines, hosiery for retailers for display and sell them on consignment
Production era
general philosophy "produce as much as you can, because there is limitless market for it"
Seven rs
getting right product to right place, to right customer, at right time, right quantity, in right condition, right price
Line of credit
given amount of unsecured short-term funds bank will lend, provide funds are readily available
Program trading
giving instructions to computers to automatically sell if price of stok dips to certain point to avoid potential losses Caused turmoil 1987 Curbs and circuit breakers to restrict program trading
Value
good quality at fair price, according to American Marketing Assocition, value foundation of marketing, adapting products to new markets is ongoing challenge, product development is key activity in modern business
Local area network (LAN)
group of connected devices in one physical location such as at home or office; large or small and include both wired and wireless
Channel of distribution
group of marketing intermediaries that joining together and transport and store goods in path from producers to consumers
Product line
group of products that are physically similar or intended for similar market Coca-cola, diet coke, coke zero, cherry coke
Bundling
grouping two or more products together and pricing them as unit
Outsourced product development
handing off various parts of your innovation process - often to companies overseas; increase in outsourcing has resulted in using multiple organizations separated by cultural, geographic, and legal boundaries
Primary markets
handle sale of new securities Initial public offering (IPO): first public offering of corporation's stock
secondary markets
handle the trading of securities between investors, with the proceeds of the sale going to the seller.
Stock markets
handle trading of securities between investors, with proceeds of sale going to seller
Pull strategy
heavy advertising and sales promotion efforts directed toward consumers so that they'll request products from retailers
Service
help customers find products
Junk bonds
high-risk, high-interst bonds
Capital budget
highlights firm's spending plans for major asset purchases that often require large sums money
Gross profit (or gross margin)
how much firm earned by buying (or making): how much firm earned by buying (or making) and selling merchandise
Brand awareness
how quickly or easily given brand name comes to mind when someone mentions product category; customer reach point of brand preference when prefer one brand over another; when consumers reach brand insistence, they will not accept substitute brands
Market bubbles
huge swings in market cause lot of anguish among Wall Street workers and people in general
Knockoff brands
illegal copies of national brand-name goods
Manufacturing
improve efficiency
Tacit knowledge
in minds of employees, based on their experiences and backgrounds Embedded in personal experience Shared only with consent and participation of individual
Human capital
includes individual capabilities, knowledge, skills, and experience of company's employees and managers
Social capital
includes network of relationships that individuals have throughout organization
Immersive internet
includes virtual reality (VR), augmented reality and 3D environments; increase dramatically in education; run software increase cost
E-mail promotions
increase brand awareness among commercial suppliers
Social networking
increase exposure for products or services, create loyalty among customers, drive traffic to company website, help companies come up with new ideas, allow businesses to communicate with each customer
Merchant wholesalers
independently owned firms that take title to goods they handle Full-service wholesalers perform all distribution functions Limited-function wholesalers perform only selected distribution functions 80% wholesalers merchant wholesalers
Spyware
infect system with viruses and track online behavior
Marketing mix
ingredients that go into marketing program; four Ps Product Place Promotion Price
Disability insurance
insurance that pays part of cost of long-term sickness or accident
Getting product to right place
intermediaries important because getting product to consumers when and where they want is critical Physical vs. digital vs. omni-channel Exclusive vs. wide Partnerships vs. direct to consumer
Bulls
investors who believe stock prices going to rise
Bears
investors who expect stock prices to decline
Financial planning
involves analyzing short-term and long-term money flows to and from company Forecasting firm's short-term and long-term financial needs Developing budgets to meet those needs Establishing financial controls to see if company achieving goals
Reverse logistics
involves bringing goods back to manufacturer because of defects or for recycling materials
Inbound logistics
involves bringing raw materials, packaging, other goods and services, and information from suppliers to producers
Outbounds logistics
involves managing flow of finished products and information to business buyers and consumers
Current assets
items that can or will be converted into cash within one year
Auditing
job of reviewing and evaluating information used to prepare company's financial statements
FAST Overview
keep drivers; proprietary access to content, monetization via ad sales relationship, access to data from connected device or platform Platform agnostic Platform exclusive
Relationship marketing
keeping individual customers over time by offering them products that exactly meet their requirements Lead away from mass production and toward custom-made goods and services
institutional investors
large organizations, such as pension funds or mutual funds, that invest their own funds or funds of others
LIFO
last-in, first-out
Customer relationships management (CRM)
learning much as possible about customers and doing everything you can to satisfy or exceed their expectations
Factors that affect consumer behavior
learning, reference group, culture, subculture, cognitive dissonance
Issuing bonds
like IOU with promise to repay amount borrowed, with interest , on certain data
Brand association
linking brand to other favorable images
Current ratio:
liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year
Continuous process
long production runs turn out finished goods over time
Intangible assets
long-term assets (ex. Patents, trademarks, copyrights) that have no physical form but do have value
Bonds payable
long-term liabilities that represent money lent to firm that must be paid back
Artificial intelligence (AI)
machines programmed to think, work, and rat less like human; businesses or provide better service to their customers while also finding out more about them Narrow AI General AI Machine learning
Agents
maintain long-term relationships with clients they represent
Product analysis
making cost estimates and sales forecasts to get feeling for profitability of new-product ideas
Service orientation
making sure everyone in organization committed to customer satisfaction
Qualifying
making sure that people have need for product, authority to buy, and willingness to listen to sales message
Ransomware
malicious software that holds data hostage Don't click links or attachments in emails from unknown source
Public relations (PR)
management function that evaluates public attitudes, changes policies and procedures in response to public's requests, and executes program of action and information to earn public understanding and acceptance Listen to public Change policies and procedures Inform people you're responsive to their needs
Brand manager
manager who has direct responsibility for one brand or one product line; handles all elements of brand's marketing mix
nanomanufacturing
manipulation of materials on molecular or atomic scale
Business-to-Business MArket
manufacturers, retailers, hospitals, schools, nonprofits, government, products often sold and resold several times before reaching final consumers Number: relatively few customers compared to consumer market Size: though few in number. Industrial customers relatively very large Geographically concentrated: B2B markets tend to be concentrated in certain areas of country Rational: business buyers generally more rational in their purchase decisions Personal selling: more emphasis on personal selling than in consumer market
2000-2002
market collapsed in deep decline when tech stock bubble burst; investors lost 7 trillion dollars in market value
10/19/1987
market suffered its worst one-day drop when it lost 22 percent value
Mobile marketing
marketers make use of smartphones to text customers about product offers and other company information; beacons location-based ads
Market forces affect pricing
marketers sometimes use demand-oriented pricing based on consumer demand; consumers compare prices of goods and services online, leading more price competition; nonprice competition likely increase
Logistics
marketing activity that involves planning, implementing, controlling physical flow of materials, final goods, and related information from points of origin to points of consumption to meet requirements at profit; movement of information as it is about movement of goods
Target marketing
marketing directed toward those groups organization decides it can serve profitability
Agents and brokers
marketing intermediaries who ring buyers and sellers together and assist in negotiating exchange but do not take title to goods
Wholesaler
marketing intermediary that sells to other organizations
Podcasting
means of distributed and video programs via internet that lets users subscribe to number of files, also known as feeds, and then hear or view material at time they choose
Leverage (debt) ratios
measure degree to which firm relies on borrowed funds in its operations Debt to owner's equity ratio: measures your company's total debt relative to the amount originally invested by the owners and the earnings that have been retained over time.
liquidity ratios
measure firm's ability to turn assets into cash to pay its short-term debts Current ratio: liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year Acid-test ratio (quick ratio): compares a company's "quick assets" (cash and accounts receivable) to its current liabilities
Profitability (performance) ratios
measure how effectively firm's managers using firm's various resources to achieve profits Earning per share (EPS): calculated as a company's profit divided by the outstanding shares of its common stock. Return on sales: measure of how efficiently a company turns sales into profits Return on equity: measure of financial performance calculated by dividing net income by shareholders' equity.
Activity ratios
measure how effectively management turin over inventory Inventory turnover ratio
Return on equity
measure of financial performance calculated by dividing net income by shareholders' equity.
Return on sales
measure of how efficiently a company turns sales into profits
intellectual capital
measure of value of firm's intangible assets; difference between firm's market value and book value Reputation Employee loyalty and commitment Customer relationships Company values Brand names Experience and skills of employees
inventory turnover ratio
measures how efficiently a company uses its inventory by dividing the cost of goods sold by the average inventory value during the period.
Cost of goods sold (or manufactured)
measures of cost of merchandise sold or cost of raw materials and supplies used for producing items for resale
Debt to owner's equity ratio
measures your company's total debt relative to the amount originally invested by the owners and the earnings that have been retained over time.
Program Evaluation and Review Technique (PERT)
method for analyzing tasks involved in completing given project, estimating time needed to complete each task, and identifying minimum time needed to complete toal project Analyze and sequencing tasks Estimating time needed to complete tasks Draw PERT network illustrating first two steps Identifying critical path
Placement
modern merchandising strategy for brands to reach their target audiences without using overt traditional advertising
Venture capital
money invested in new or emerging companies that are perceived as having great profit potential
Equity financing
money raised from within firm, from operations or through sale of ownership in firm (stock or venture capital)
Common stock
most basic form of ownership in firm; confers voting rights and right to share in firm's profits through dividends
Selling era
most companies emphasized selling and advertising in effort to persuade consumers to buy existing products
Business-to-consumer sales process
most sales take place retail stores, salesperson does not have to do much prospect or qualifying, retail salespeople don't usually need pre-approach step, follow up if product is to be delivered or installed
Materials handling
movement of goods within warehouse, from warehouses to factory floor, and from factory floor to various workstations
Web 3.0
moving toward decentralization; combination of technologies that adds intelligence and changes how people interact web, amd vice versa; most data generated online collected by big tech companies; systems vulnerable to issues that coil lead to losses or services and/o data; web 3.0 fix both problems by moving to decentralized seat in which database that exists on many servers at same time; creates more powerful peer-to-peer system; data cannot be lost since exits on many independent servers at same time and is not controlled by central server
Data processing (DP)
name for business technology in 1970s; primarily used to improve flow of financial information; data raw, unanalyzed, and unorganized facts and figures; inforaiton processed and organized that managers can use for decision making
Brand
name, symbol, or design that identifies goods or services of one seller or group of sellers and distinguishes them from goods and services of competitors
NASDAQ
nationwide electronic system that communicates over-the-counter trades to brokers
HR managers
need to recruit workers tech savvy na can train others; technology makes telecommuting available to almost all companies; employees stay home with small children or elders, eliminates travel time, decrease costs, nand often increase productivity; electronic communication can never replace face-to face communication
Wide Area network (WAN)
network that extends over large geographical area and connects individual users or multiple LANs
Enterprise resource planning (ERP)
newer version of MRP combines computerized functions of all divisions and subsidiaries of firm - such as finance, human resources, and order fulfillment - into single integrated software program that uses single database
Generic goods
non branded products that usually sell at sizable discount compared to national or private-label brands
Commercial finance companies
non-deposit-type organizations that make short-term loans to borrowers who offer tangible assets (property, plant, equipment) as collateral
Public company accounting oversight board (PCAOB)
non-profit organization that regulates audits of publicly traded companies to minimize audit risk.
Wholesale intermediaries
normally B2B sales, sometimes retail function; retail sales sales of goods and services to consumers for their own use; sales of goods and services to other businesses for use in business or resale (Costco, Staples); customers familiar with retailers than wholesalers Help suppliers: -Provides sales force -Communicate manufacturers' advertising deals -Maintain inventory -Provide transportation -Provide capital (pay quick payments for goods) -Provide market info -Take on credit risk -Take on product loss risk by taking the title. Help customers: -Maintaining inventory -Rapid transportation of goods -Provide market info -Grant credit -Provide goods in the type and quantity desired
Unsecured bonds (debenture bonds)
not backed by specific collateral
Internet of things (IOT)
not just computers, phones, and tablets, connected online now; technology that enables ordinary objects to be connected to Internet; uses sensors, cameras, software, databases, massive data centers
identity theft
obtaining individuals' personal information, such as Social Security and credit card numbers for illegal purposes Hire managed security services provider Use password manager or two-factor authentication Use methods including planting fake information and crating decoys
Broadband technology
offers users continuous connection to internet and allows them to send and receive mammoth files that include video, voice, and data much faster than ever before
Social security
old-age, survivors, disability insurance program established by social security act 1935; benefits paid through social security taxes paid by workers currently earning wages in market
New York Stock Exchange (NYSE)
one of the world's largest marketplaces for securities and other exchange-traded investments
Effective relationship marketing built on
open communication, consistently reliable service, staying in contact with customers, trust, honest, and ethical behavior, showing that you truly care
Mutual fund
organizaiton buys stocks and bonds and then sells shares in those securities to public Fund pools investors' money and buys stocks according to fund's purpose
Freight forwarder
organization that puts many small shipments together to create single large shipment that can be transported cost-effectively to final destination; less-than-carload (LCL) shipments
Stock exchange
organization whose members can buy and sell (exchange) securities for companies and investors
Customer relationship era
organizations seek to stimulate long-term customer loyalty; social networks, online communities, and blogs used in relationship building Customer relationships management (CRM): learning much as possible about customers and doing everything you can to satisfy or exceed their expectations
Marketing intermediaries
organizations that assist in moving goods and service from producers to business (B2B) and from business to consumers (B2C); middle of series of firms that distribute goods; perform marketing tasks faster and cheaper than most manufacturer could provide them; make exchange process easier and more efficient and productively; transporting, storing, selling, relationship building faster and more cheaply than most manufacturers could; add value that exceeds cost Eliminated but activities cannot Perform marketing functions faster and cheaper than other organizations can Add costs to products, but costs generally offset by values they provide
Advertising
paid, nonpersonal communication through various media by organizations and individuals who are in some way identified in advertising message; different from public relations, since advertising paid and public relations free
Dividends
part of firm's profits that firm may distribute to stockholders as wither cash payments or additional shares of stock Not required and are at discretion of company
Process manufacturing
part of production process that physically or chemically changes materials; part of production process that transcodes/reformats
Assembly process
part of production process that puts together components
Fixed annuities
pay policy holder specified interest
Viral marketing
paying customers to say positive things on internet or setting up multiple schemes whereby consumers get commissions for directing friends to specific websites; many viral marketing programs give away free products or services in exchange for email addresses
Interest
payment issuer makes to bondholders for use of borrowed money
callable bonds
permit bond issuers to pay off the principal before the maturity date.
Executor
person who assembles and values estate, files income and other taxes, and distributes assets
Prospect
person with means to buy product, authority to buy, and willingness to listen to sales message
Facility layout
physical arrangement of resources (including people) in production process
Product
physical good, service, or idea that satisfies want or need plus anything that would enhance product in eyes of consumers
Viruses
piece of programming code inserted into other programming to cause some unexpected, undesired event, like erasing data or causing hard drive to crash use antiviruses software do not download files from unknown sources
Cookies
pieces of information, such as registration data, sent by website to browser that browser software is expected to save and send back to server whenever user returns to that website
Location-based services
pinpoint user's positions
Estate planning
planning for those who will inherit money from you may tart with life insurance
Capital gains
positive difference between purchase price of stock and its sale price Blue-chip stocks Growth stocks Income stocks Penny stocks
Trade credit
practice of buying goods and services now and paying for them later
Double-entry bookkeeping
practice of writing every business transaction in two places; done so they can check one list of transactions against other for accuracy
Cash flow forecast
predicts cash inflows and outflows in future periods usually months or quarters
Short-term forecast
predicts revenues, costs, expenses for period of one year or less
Psychological pricing
pricing goods and services at price points that make product appear less expensive than it is
Competition-based pricing
pricing strategy based on what all other competitors doing
risk/return trade-off
principle that greater risk lender takes in making loan, higher interest rate required
Virtual private network (VPN):
private data network that creates secure connections, or "tunnels," over regulate internet lines
Internet2
private internet system that links government; runs fastest network and supports heavy-duty applications; users willing to pay more can use more bandwidth
Consumer decision making process
problem recognition, information search, evaluate alternatives, purchase decision, post purchase evaluation
Customer segmentation
process by which you divide your customers into segments up based on common characteristics
Product screening
process designed to reduce number of new-product ideas being worked on at any one time
Financial control
process in which firm periodically compares its actual revenues, costs, and expenses with its budget; most companies hold at least monthly financial reviews; identifies variances to financial plan and allows firm to take corrective action
Data analytics
process of collecting, organizing, sorting, and analyze large sets of data in order to identify patterns and other information that is most useful to business now and for making future decisions
Environmental scanning
process of identifying factors that can affect marketing success Global factors, technological factors, sociocultural factors, competitive factors, economic factors
Supply-chain management
process of managing movement of raw materials, parts, work in progress, finished goods, and related information through all organizations involved in supply chain; managing return of such goods, if necessary; and recycling materials when appropriate Suppliers, manufacturers, warehouses, stores Right quantities, right locations, right time Minimize system wide costs while satisfying service level requirements
Facility location
process of selecting geographic location for company's operations
Factoring
process of selling accounts receivable for cash
Statistical process control (SPC)
process of taking statistical samples of product components at each stage of production process and plotting those results on graph
Ordering process
process or workflow that happens after customer places order
Statistical quality control (SQC)
process some managers use to continually monitor all phases of production process to assure that quality being built into product from beginning
Break-even analysis
process used to determine profitability at various levels of sales Break-even point: revenues equals cost Break-even point (BEP) = total fixed costs (FC) / (price of one unit (P) - variable costs (VC) of one unit)
Push strategy
producer uses advertising, personal selling, sales promotion, and all other promotional tools to convince wholesalers and retailers to stock and sell merchandise
Nonprice competition
product images, comfort, style, convenience, durability, accompanying services
Lean manufacturing
production of goods using less of everything compared to mass production take less human effort Less manufacturing space Less investment tools Less engineering time to develop new product
Just-in-time (JIT) inventory control
production process in which minimum inventory kept on premises and parts, suppliers, and other needs delivered just in time to go on assembly line
Intermittent process
production run is short and machines changed frequently to make different products
Long-term forecast
products revenues, costs, and expenses for period longer than one year
Convenience goods and services
products that consumer wants to purchase frequently and with minimum of effort; differentiation occurs through added convenience consumers will pay premium
Unsought goods and services
products that consumers unaware of, haven't necessarily though of buying, or find that they need to solve unexpected problem
Dealer (private-label) brands
products that don't carry manufacturer's name but carry distributor's or retailer's name instead
Term-long agreement
promissory note that requires borrower to repay loan in specified installments
Commercialization
promoting product to distributors and retailers to get wide distribution and developing strong advertising and sales campaigns to generate and maintain interest in product among distributors and consumers
interactive promotion
promotion process that allows marketers to go beyond monologue where sellers try to persuade buyers to buy things, to dialogue in which buyers and sellers work together to create mutually beneficial exchange relationships
Variable annuities
provide ninemsn choices identical to mutual funds
U.S. government gave away ownership in 2016, entirely private entity
provide same level of access to all websites regardless of their content; charges for faster access charge people to visit certain websites
Buying stock on margin
purchasing stocks by borrowing some of purchase cost from brokerage firm Margin: Portion of stock's purchase price that investor must pay with their own money If broker issues margin call, inverter has to come up with money to cover losses
Term insurance
pure insurance protection for give number of years that typically costs less younger you buy it
Intensive distribution
puts products into as many retail outlets as possible including vending machines
Six sigma quality
quality measure that allows only 3.4 defects per million opportunities
Leverage
raising needed funds through borrowing to nice rae firm's rate of return; increases risk but enhances firm's ability to increase profits
Cost of capital
rate of return company must earn inorder to meet demands of its lenders and expectations of equity holders
Mobile advertising
reaches people on their smartphones
Booking
recording of business transactions divide firm's transactions into meaningful categories and post them into record book or computer program called journal
Accounting
recording, classifying, summarizing, and interpreting of financial events and transactions to provide management and other interested information they need to make good decision
Stockbroker
registered representative who works as market intermediary to buy and sell securities for clients
Real estate
relatively secure investment
Global advertising
requires marketers to develop single product and promotional strategy to implement worldwide; problems arise with using one advertising campaign in all counties, especially bad translations; many markets moving from globalism to regionalism
Prospecting
researching potential buyers and choosing those most likely to buy
Sinking funds
reserve account in which issuer to pay off principal before maturity date
Net income or net loss
revenue left over after all costs and expenses, including taxes, are paid Net income before taxes - taxes = net income or loss
Telemarketing
sale of goods and services by telephone
Internal sales promotion
sales training, sales aids such as audiovisual displays and videos, participation in trade shows where salespeople can get leads
401(k) plans
savings plan that allows you to deposit pretax dollars and whose earnings compound tax-free until withdrawal Contributions reduce present table income Tax deferred on earnings Many employers match contributions
Qualified retirement plans (keoghs)
self-employed people to establish own retirement plans; IRAs for entrepreneurs; aren't taxed until withdrawn nor returns funds earn; funds may be withdrawn in lump sum or spread out over years
direct selling
selling goods and services to customers in their homes or workplaces
Online retailing
selling goods and services to ultimate customers over Internet; lack of inventory and poor customer service
Extranet
semi private network that allows more than one company to access same information or allows people on different servers to collaborate
Supply chain
sequence of linked activities that must be performed by various organizations to move goods from the sources of raw materials to ultimate consumers
Critical path
sequence of tasks takes longest time to complete
Dodd- frank wall street reform and consumer protection act
series of federal regulations passed to prevent future financial crises.
Web 2.0
set of tools that allow people to build social and business connections, share informations, and collaborate on projects online
Budget
sets forth management's expectations and allocates use of specific resources throughout firm; depend heavily on balance sheet, income statement, statement of cash flows, and short-term and long-term financial forecasts; guide for financial operations and expected financial needs
Everyday low pricing (EDLP)
setting prices lower than competitors and then not having any special sales
High-low pricing strategy
setting prices that are higher than EDLP stores but having many special sales where prices lower than competitors
Stocks
shares of ownership in company Pro: Stock purchase price does not have to be repaid Dividends do not, by law, have to be paid Stock does not increase debt Cons: Stockholders vote for board of directors and therefore affect top management decisions Dividends come from after taxes funds Dividends not tax deductible
Notes payable
short-term or long-term liabilities that business promises to pay by certain date
Process layout
similar equipment and functions grouped together
Accounting cycle
six-step procedure that results in preparation and analysis of major financial statements
Mobile web
smartphones and tablets allow people to access and interact on web no matter where they are
Generally Accepted Accounting Principles (GAAP)
sometime permits accountants to use different method of accounting for inventory FIFO: first-in, first-out LIFO: last-in, first-out
Investment bankers
specialists who assist in issue and sale of new securities
Ledger
specialized accounting book or computer program in which information from accounting journals is accumulated into specific categories and posted so that managers can find all information about one account in same place
Operations management
specialized area in management that converts or transforms resources (including human resources) into goods and services; create good experience for those use service Inventory management Quality control Production scheduling Follow-up services
Forecasting
starts before orders placed, "Make to forecast" logic, best and most up to date information
Preferred stock
stock that gives its owners preference in payment of dividends and earlier claim on assets than common stockholders Callable, convertible, cumulative
Tracking goods
storage warehouses hold products for relatively long period of time; distribution warehouses used to gather and redistribute products such as packages deliveries; radio frequency identification (RFID) tags keep track of goods
Price leadership
strategy by which one or more dominant firms set pricing practices that all competitors in industry follow
skimming price strategy
strategy in which new product priced high to make optimum profit while there's little competition
Penetration strategy
strategy in which product is priced low to attract many customers and discourage competition
Outside parties
such as employees, owners, creditors, unions, investors, and government - make use of firm's accounting information
Trial balance
summary of all financial data in account ledgers that ensures figures correct and balanced
Financial statement
summary of all transactions that have occurred over particular period Balance sheet Income statement Statement of cash flows
Advocacy advertising:
supports particular view of issue
Depreciation
systematic write-off of cost of tangible asset over its estimated useful life
Mass customization
tailoring products to meet needs of individual customers
Generating new-product ideas
takes about seven ideas to generate one commercial product; employees, research and development, suppliers offer new ideas
Individual Retirement Accounts (IRAs):
tax-deferred investment plans that enable you to save part of you income for retirement
Modular layout
teams of workers produce more complex units of final product
Data mining
technique for looking for hidden patterns and unknown relationships in data
Integrated marketing communication (IMC)
technique that combines promotional tool into one comprehensive and unified promotional strategy Create positive brand image Meet needs of consumers Meet strategic marketing and promotional goals of firm
Computer literacy
technology eliminates old jobs while creating new ones; seek help from experts; mindful misinformation
Informaiton systems (IS)
technology that helps companies doe business; includes ATMs and voice mail; 1980s; role changed from supporting business to doing business
Test marketing
testing products among potential users
Financial management
the business function that deals with investing the available financial resources in a way that greater business success and return-on-investment (ROI) is achieved.
Net Neutrality
the concept of an open, equal internet for everyone, regardless of device, application or platform used and content consumed.
Finance
the management of large amounts of money, especially by governments or large companies.
Pirate independent funds
the most common type of private equity, and unlike captive funds, the majority of company shares are not held by the investor.
Budgeting process
the process of planning future business activities by establishing performance goals and putting them into a formal plan
Retail Strategies
the process you use to develop your products or services and sell them to customers
Product life cycle
theoretical model of what happens to sales and profits for product class over time: introduction, growth, maturity, decline
Cyberterrorism
threats that terrorist hackers could impair or shut down nation's communications infrastructure, money supply, electricity grids, and transportation systems U.S. Department of Homeland Security created Critical Infrastructure Protection Board
Operating (or master) budget
ties together all firm's other budgets and summaries its proposed financial activities
B2B
trade shows, portfolios for salespeople, deals, catalogs, conventions
Computer-integrated manufacturing (CIM)
uniting of computer-aided design with computer-aided manufacturing; expensive, reduces time needed to program machines to make parts
Tangled web of promotion seven deadly sins of web design
unorganized or tale information improper use of animation, tiny fonts and poor color schemes, ignoring needs of your customer base, using outdated methods, not burying dead links, inconsistent style
Computer-aided design (CAD)
use of computers in design of products
Computer-aided manufacturing (CAM)
use of computers in manufacturing products
Business intelligence (BI) or analytics
use of data analytic tools to analyze organization's raw data and derive useful insights from them; focus on what's important, such as deciding how to react to problems and opportunities
Exclusive distribution
use of only one retail outlet in given geographic area
Third-party logistics
use of outside firms to help move goods from here to there
Warehousing
use that involves storage or movement of goods for themselves or other firms
Mobile apps
used for online ordering and loyalty programs
Selective distribution
uses only preferred group of available retailers in area
multi level marketing
uses salespeople who work as independent contractors
Brand equity
value of brand name and associated symbols
Form utility
value producers add to materials in creation of finished goods and services
Knowledge economy
wealth increasingly created by effective management of knowledge workers instead of by control physical and financial assets
Liabilities
what is business owes to other (debts)
Variable life insurance
whole life insurance that invests cash value of policy in stocks or other high-yielding securities
Trade advertising
wholesalers and retailers by manufacturers, from studios to movie theaters
Brand name
word, letter, or group of words or letters that differentiates one seller's goods and services from those of competitors
Assembly line layout
workers do only few tasks at time
International Organization for Standardization (ISO)
worldwide federation of national standards bodies
