MGT 111 Short Answer Questions

discuss Maslow's Hierarchy of Needs

1) physiological needs: food, water, etc 2) safety needs: clothes, home, shoes, financial security, etc 3) love and belonging: affection, trust, acceptance, friends, relationships 4) esteem needs: respect and self-esteem, feeling of accomplishment 5) self-actualization: realizing full potential

explain the concept of risk/return trade-off

risk/return tradeoff: balance of potential risks against potential rewards; the higher the risk, the higher the reward

what is marketing mix? discuss the four main components of the marketing mix

-factors that a company controls to influence customers to purchase its products -four major components: 1) product 2) price 3) distribution 4) customer communication

what are slotting allowances?

-fee charged to produce companies or manufacturers by supermarket distributors in order to have their product placed on their shelves

what is a balance sheet? why is it called a balance sheet?

-statement of a firm's financial position on a particular date -called a balance sheet because it includes all elements in the accounting equation and shows the balance between assets on one side of the equation and liabilities and owner's equity on the other side

what is disintermediation? what are the similarities and differences between disintermediation and unbundling of services?

-disintermediation: cutting out the middle-man, allowing companies to deal with customers directly; replacement of intermediaries by producers, customers,or other intermediaries when those other parties can perform channel functions more effectively or efficiently -unbundling of services: process by which a large company with several different lines of business retains one or more core businesses and sells off the remaining assets, product lines, divisions, or subsidiaries

compare and contrast accrual basis accounting and cash basis accounting

-accrual basis: accounting method in which revenue is recorded when a sale is made and an expense is recorded when it is incurred -cash basis: accounting method in which revenue is recorded when payment is received an an expense is recorded when cash is paid

what makes a boycott an effective union practice?

-boycott: seek to inflict financial damage by discouraging purchase of a company's product -effective because businesses need to sell their product to make money, if people aren't buying product, business will have to file bankruptcy --> business will comply with union needs

compare and contrast co-branding and licensing

-co-branding: two companies work together to market a product (ex. marketing Gillette power razors with Duracell batteries) -licensing: business agreement in which one company gives another company permission to manufacture its product for a specified cost (ex. Calvin Klein brand-licensed to various makers of underwear, jeans, perfume, etc)

compare and contrast the conventional promotion model with the new social model of customer communication

-conventional promo model: largely about companies broadcasting carefully scripted messages to a mass audience with few ways to respond ("we talk, you listen" -social comm model: approach to communication based on interactive social media and conversational communication styles ("let's have a conversation")

describe the cost of goods sold and operating expenses

-cost of goods sold: cost pf producing or acquiring a company's products for sale during a given period -operating expenses: all costs of operation that aren't included under cost of goods sold

explain cost structure and break-even analysis

-cost structure: method to determine how much it will cost a company to manufacture a product and how much profit will be recognized from manufacturing the product (fixed costs and variable costs) -break-even analysis: method of calculating the minimum volume of sales needed at a given price to cover all costs

explain the difference between current assets and fixed assets and how they are listed on the balance sheet

-current assets: cash and items that can be turned into cash within one year -fixed assets: assets retained for long-term use, such as land, buildings, machinery, and equipment -assets are listed on the balance sheet in order of liquidity, so current assets are listed before fixed assets because they're more easily converted into cash -they're listed in separate subtotals then a grand total for all assets

compare and contrast debt financing and equity financing

-debt financing: firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors; in return, individuals/institutions become creditors and receive a promise to repay principal and interest on the debt (arrange funding by borrowing money) -equity financing: method for raising capital by selling company stock to investors; shareholders receive ownership interests in the company (arranging funding by selling ownership shares in the company, publicly or privately)

compare and contrast the terms race and ethnicity

-ethnicity: state of belonging to a social group that has a common national or cultural tradition -race: group of people related by common descent or heredity

define the four major types of organization structure

-functional structure: grouping workers according to the similarity in their skills, resources, use, and expertise -divisional structure: grouping departments according to similarities in product, process, customers, or geography -matrix structure: structure in which employees are assigned to both a functional group and a project team (using functional and divisional patterns simultaneously) -network structure: connects a variety of partners and suppliers that perform selected tasks for a HQ organization (aka virtual organization)

a company decides to remain highly leveraged to minimize the ownership shares. critically analyze this approach

-highly leveraged = company has more debt than equity -from doing this, the company is unable to maneuver and is more vulnerable to setbacks -because the company has fewer ownership shares, they have less cash available to pay off debts

explain the significance of the income statement of a business

-income statement of a business answers where your money is going month to month -provides a detailed account of where all money is allocated within the organization -also shows payments for products given to the company for their services

compare and contrast job enrichment with job enlargement

-job enrichment: make jobs more challenging and interesting by expanding the range of skills required -job enlargement: horizontal expansion, adding tasks that aren't necessarily any more challenging, but gives workers more to do

compare and contrast management accounting with financial accounting

-management accounting: area of accounting concerned with preparing data for use by managers within the organization -financial accounting: area of accounting concerned with preparing financial info for users outside the organization

what is marketing segmentation? list four fundamental factors marketers use to identify market segments

-market segmentation: division of a diverse market into smaller, relatively homogeneous groups with similar needs, wants, and purchase behaviors -four fundamental factors: 1) geographic 2) demographic 3) psychographic 4) behavioral

compare and contrast multichannel retailing with retail theateer

-multichannel retailing: company provides numerous ways for customer to purchase goods and services such as catalogs, brick-and-mortar stores, mail, and telephone

what is the difference between negative reinforcement and punishment?

-negative reinforcement: encourages a behavior to be repeated, but through reduction, removal, or absence of an unpleasant outcome (ex. putting on your seat belt so the car stops beeping) -negative punishment: actions used to diminish repetition of unwanted behaviors by adding unpleasant outcomes (ex. timeout for kids)

compare and contrast product development with market development

-product development: creation of products with new or different characteristics that offer new or additional benefits to the customer; may involve modification of an existing product or its presentation or formulation of an entirely new product that satisfies a new customer want -market development: expansion of the total market for a product or company by entering new segments of the market, converting non-users to users, and/or increasing usage per user -ex. Apple: Apple creates new versions of their products every year, introduced Apply TV which entered them into the cable/TV market -ex. Geico expanded their target market by using the gecko

compare and contrast push strategy with pull strategy

-push strategy: promo strategy that focuses on intermediaries motivating them to promote (push) products towards the end users -pull strategy: promo strategy that stimulates customer demand via advertising and other communication efforts, thereby creating a pull effect through the channel

compare and contrast quick ratio and current ratio. which one do you think is more accurate?

-quick ratio: measure of a firm's short term liquidity, calculated by adding cash, marketable securities, and receivables, then fixing the sum by current liabilities -current ratio: measure of a firm's short term liquidity, calculated by dividing current assets by current liabilities -more accurate: quick ratio...because it doesn't include inventory which is hard to calculate due to constant change -inventory changes every day, there measuring actual liquidity of the concrete company is more accurate

discuss the similarities and differences between using a search engine marketing and direct response TV as marketing media

-search engine marketing: automated presentation of ads that are related to either the results of an online search or the content being displayed on other webpages -direct response TV: use of TV commercials and infomercials that are designed to stimulate an immediate purchase response from viewers

compare and contrast secured bonds and debentures

-secured bonds: bonds backed by specific assets that will be given to bondholders if the borrowed amount isn't repaid -debentures: corporate bonds backed only by the reputation of the issuer

compare and contrast secured loans and unsecured loans

-secured loans: loans backed up with assets that the lender can claim in case of default (ie: property) -unsecured loans: loans that require a good credit rating and no collateral

explain the statement of cash flows and how it is connected to the balance sheet

-statement of cash flows tracks the cash coming in and flowing out of the company's bank accounts -also shows the increase/decrease in the company's cash for the period and summarizes the sources of changes -connected to the balance sheet because both are financial statements...balance sheets report the change in assets, liabilities, and equities which are pulled from the statement of cash flow

what is the wheel of retailing?

-stores that feature low prices gradually upgrade until they no longer appeal to price-sensitive shoppers and are replaced by a new generation of low-price competitors; long-term strategy in which a discount retailer gradually begins to sell higher quality goods; allows retailer to increase its prices over time, leading to higher revenues and perhaps higher profits

what is Herzberg's two-factor theory? How do hygiene factors differ from motivators?

-theory says managers need to remove dissatisfying elements (hygiene factors: extrinsic) and ass satisfying elements (motivators: instrinsic)

compare and contrast theory x and theory y

-theory x: managers believe that employees dislike work and can be motivated only by the fear of losing their jobs or by extrinsic rewards (ex. promotions/bonuses) -theory y: managers believe employees like to work and can be motivated by working for goals that can promote creativity or for causes they believe in; motivate through intrinsic rewards (ex. feeling accomplished)

companies rely on PR to build a favorable corporate image and foster positive relations with their many stakeholders, including communities, investors, industry analysts, government agencies, and activists. compare and contrast the use of traditional press releases and social media release in PR's efforts to reach those stakeholders

-traditional press releases: used to reach a wide number of journalists all at once; brief written summary of company news and events; can lead to press conferences (up to journalists to write stories, publish, and share) -social media press releases: many companies now see press releases as a general-purpose tool for communicating directly with the customer; direct-to-consumer news releases (ability to be shared and spread faster)

compare and contrast undifferentiated marketing with differentiated marketing

-undifferentiated: focuses on the entire target market, not a specific segment (ex. one marketing mix with one product, price, placement) -differentiated: focuses on different market segments with specific marketing mixes to designed specifically to meet those segment's needs (ex. LaCroix vs National Beverage)

how do unions have a negative impact on productivity?

-unionized workers can be more interested in their own benefits or start strikes or boycotts instead of working -unionized workers are often paid more and ensure fewer hours -unionized workers have better benefits (overtime compensation, paid vacation days, etc)

what are unfair labor practices? give examples

-unlawful acts that cannot be practiced while organizing campaigns and contract negotiations and through the duration of a completed CBA -ex. threatening employees with termination or cuts in benefits, threaten to close facility if employees vote to unionize, interrogate employees about union activities that could restrain employees from exercising rights

what are unfair labor practices? provide 5 examples that the National Labor Relations Board lists as unfair labor practices by employers

-unlawful acts that unions and management are prohibited from engaging in during organizing campaigns and contract negotiations, and through the duration of a completed CBA -examples: 1) threatening employees with termination or cuts in benefits upon voting for a union or engage in other activity protected by the Wagner Act 2) threatening to close a facility if employees vote for union representation 3) interrogating employees about union activities in ways that could restrain employees from exercising their rights 4) responding to organizing campaigns by offering wage raises/benefits to thwart unionization efforts 5) punishing employees for unionization

compare and contrast the Wagner Act of 1935 and the Taft-Hartley Act of 1947

-wagner: established labor relations policies and procedures for most sectors of private industry-employee benefits -taft-hartley: addressed many conerns raised by business owners and shifted the balance of power again-employer benefits

compare and contrast wholesalers with retailers

-wholesaler: person/company that sells goods in large quantities at low prices, typically to retailers for resale or to organizations for internal use -retailer: person/business that sells goods to the public in relatively small quantities for personal use rather than resale

discuss the steps team members and team leaders can take to prevent conflicts

1) establishing clear goals that require the efforts of every member-reduces chance that members will battle over their objectives/roles 2) developing well-defined tasks for each member-team leader ensures that all parties are aware of responsibilities and limits authority 3) facilitating open communication-team leader can ensure that all members understand their own tasks and objectives as well as those of their teammates

what are the alternative work arrangements that a company can use to better accommodate the needs of employees?

1) flextime: scheduling system that allows employees to choose their own hours within certain limits 2) telecommuting: working from home or another location using electronic communications to stay in touch with colleagues, suppliers, and customers 3) job-sharing: lets two employees share a single full-time job and split the salary and benefits 4) flexible career paths

list the factors HR managers weigh to forecast demand for the numbers and types of employees who will be needed at various times in the firm

1) forecasted revenue sales 2) expected turnover rate (% of the workforce that leaves every year) 3) current workforce's skill level relative to the company's future needs 4) impending strategic decisions 5) changes in technology or other business factors that could affect the number and types of workers needed 6) company's current and projected financial status

compare and contrast needs with wants

needs: differences between a person's actual state and his or her ideal state; they provide the basic motivation to make a purchase wants: specific goods, services, experiences, or other entities that are desirable in light of a person's experiences, culture, and personality

what is a product line?

product line: group of related products under a single bran sold by the same company (ex. Microsoft Corp: Xbox product line--xbox console, games, controllers, Xbox Live)