MGMT 1 Final
Promotional campaign steps
- Identify target market - Define objectives for each element of the production mix, goals should be clear and measurable - Determine a promotional budget - Develop a unifying message - Implement the plan - Evaluate effectiveness
Investment strategy (can be growth or income)
- Investment risk - Yield - Duration - Liquidity - Tax consequences
Grove's Three basic requirements of production
- build/deliver in response to ppl's wants, and deliver on time - Good quality - Low cost
5 C's of Credit
-Capacity - ability to pay back lender -Capital - your money you are investing in your business (often a down payment) -Collateral - asset you pledge to back the loan - Conditions - market analysis of the trends of your industry - Character - credit behavior on indicators like your credit report and score and payment history
Fundamental accounting equation
Assets = Liabilities + Owners' equity - Liabilities such as borrowing money will be positive even though it is a debt
Industrial goods
B2B goods are products used in the production of other products
Business models
Crowd economy crowdsourcing/funding, ICO's, staff on demand, leveraged assets Airbnb, Uber Smartness economy Add smartness to existing tools sensors/internet of things, comms, distributed power & storage free/data economy Platforms making money off data Closed loop economy reuse/recycle product Decentralized autonomous organizations Blockchain and AI, preprogrammed rules for commerce without intermediaries or orgs Multiple world models Integration of physical and digital worlds VR/AR Transformation economy From experience economy / 3rd place to transformative, CrossFit = change your life
Equity financing
IPO, retained earnings, venture capital
New-product development process
Idea generation, product screening, product analysis, development, testing, commercialization
Commercial banks
In large business, specialists in a company's finance and accounting departments do a cash flow forecast, this is used to determine how businesses are given loans
Marketing mix
Product - total product offer, new product development, branding, packaging Price - strategies Place - market segmentation, customer segmentation, demographics & psychographics Promotion - promotion mix, 6 M's, consumer decision making process Advertising, personal selling, public relations, publicity, word of mouth, sales promos
Credit cards
Provide readily available line of credit that can save time and embarrassment of being rejected for a bank loan
Net income/net loss
Resources (revenue) left over or depleted
critical path
Sequence of tasks that takes the longest time to complete
Commercial paper
Type of short-term financing available to large corporations that need funds for just a few months and prefer not to have to negotiate with a commercial bank
Certified public accountant (CPA)
accountant who passes a series of exams established by the American Institute of Certified Public Accountants (AICPA) and meets the state's requirement for education and experience
Retained earnings
accumulated earnings from the firm's profitable operations that are reinvested in the business and not paid out to stockholders in distributions of company profits
Marketing
activity, set of institutions, and processes for creating, communicating, delivering and exchanging offers that have value for customers, clients, partners, and society at large
General expenses
administrative expenses of the firm such as office salaries, insurance, rent
general expenses
administrative expenses of the firm such as office salaries, insurance, rent
Operating (master) budget
aggregate of the firm's other budgets and summarizes its proposed financial activities, estimates costs and expenses needed to run the business, given all projected revenues
Callable bonds
allow bond issuers to pay off the bond's principal before maturity date, can call in old bonds and issue new bonds if the bonds of same quality have a lower interest rate
fixed-position layout
allows workers to congregate around the product to be completed for major projects (bridge or airplane)
Stock exchange
an organization whose members can buy and sell securities on behalf of companies and individual investors
Marketing research
analyze markets to determine opportunities and challenges and to find the info they need to make good decisions
Program evaluation and review technique (PERT)
analyze tasks to complete a given project, estimate the time needed to complete each task, compute the minimum time needed to complete the whole project
Financial planning
analyzing short-term and long-term money flows to and from the firm, objective is to optimize the firm's profitability and make best use of the money
Secured bonds (mortgage bonds)
are backed by collateral that is pledged to bondholders if interest/principal isn't paid when promised
Ratio analysis
assessment of a firm's financial condition, using calculations and financial ratios developed from the firm's financial statements
Dow Jones Industrial Average
average cost of 30 selected industrial stocks
Secured loan
backed by collateral (such as property), if borrower fails to pay the loan the lender takes possession of the collateral
Gantt Chart
bar graph, prepared by a computer, that clearly shows what projects are being worked on and how much has been complete at any given time
Bulls
believe stock prices will rise, then buy stock in anticipation of increase
Junk bonds
bonds with higher returns though riskier
Debt financing
borrowing money the company has a legal obligation to repay, can borrow by either getting a loan from a lending institution or issuing bonds
Buying stock on margin
borrowing some of the stocks' purchase cost from the brokerage firm
Reverse logistics
brings goods back to the manufacturer because of defects or for recycling materials
Inbound logistics
brings raw materials, packaging, other goods and services, and info from suppliers to producers
E-commerce
buying and selling products/services online
Diversification
buying several different types of investments to spread the risk of investing
Mutual fund
buys stocks, bonds, and other investments and sells shares in those securities to the public
Convertible bonds
can be turned into shares of common stock
Product mix
combination of all product lines offered by a manufacturer
Promotion mix
combination of promotional tools an organization uses - Personal selling - Sales promotion - Public relations - Advertising
Integrated marketing communication (IMC)
combines the promotional tools into one comprehensive, unified promotional strategy - Creates + brand image, meets needs of consumer, meet the strategic marketing and promotional goals of the firm
Intranet
companyside network, closed to public access, that uses Internet-type tech - Can create a firewall so only authorized users can access
Materials requirement planning (MRP)
computer-based operations management system that uses sales forecasts to make sure needed parts and materials are available at the right time and place
Computer-aided manufacturing (CAM)
computers directly aid production process
Net neutrality
concept that Internet service providers should provide the same level of access to all websites regardless of their content
Channel of distribution
consists of a whole set of marketing intermediaries, such as agents, brokers, wholesalers, and retailers, that join together to transport and store goods in their path (or channel) from producers to consumers, begins with manufacturers
Supply chain (value chain)
consists of all the linked activities various organizations must perform to move goods and services from the source of raw materials to ultimate consumers, longer than channel of distribution since it links suppliers to manufacturers
Total product offer
consists of everything consumers evaluate when deciding whether to buy something
Online retailing
consists of selling goods and services to ultimate consumers online
Specialty goods and services
consumer products with unique characteristics and brand identity
Broadband technology
continuous connection to the Internet that allows users to send and receive video, voice, and data files quickly
Extranet
controlled private network that lets more than one company access the same info or allows people on different servers to collaborate and do so without granting access to the orgs entire network
Bond
corporate certificate indicating that an investor has lent money to a firm
Sarbanes-Oxley Act
created new gov reporting standards for publicly traded companies and the Public Company Accounting Oversight Board (PCAOB) which oversees the AICPA
Product differentiation
creation of real or perceived product differences
Accounts payable
current liabilities or bills the company owes others for merchandise or services it purchased on credit but has not yet paid for
Blockchain
database that exists on many servers at the same time
Maturity date
date when the issuing company is legally bound to repay in full
Production Management
described the activities that helped firms create goods
Distributed product development
describes handing off various parts of your innovation process - often to companies overseas
Artificial intelligence (AI)
describes machines programmed to think, work, and react like humans, can sort through and organize tons of data
Target costing
design a product so it satisfies customers but also meets the profit margins we've set (demand based)
Flexible manufacturing
designing machines to do multiple tasks so they can produce a variety of products
Basic earnings per share (EPS) ratio
determine the amount of profit earned for each share of outstanding common stock
Benefit segmentation
determining what product benefits your target market prefers and using those benefits to promote a product
Demographic segmentation
dividing a market by age, income, and education level, race, religion, occupation
Geographic segmentation
dividing a market by cities, counties, states, or regions
Possession utility
do whatever is necessary to transfer ownership from one party to another
Nonprice competition
doesn't use price as a major promotional appeal but stresses consumer benefits and product style
Wholesaler-sponsored chains
each store signs an agreement to use the same name, participate in chain promotions, and cooperate as a unified system of stores even though each is independently owned and managed
Assets
economic resources owned by a firm (productive, tangible items and intangible items like patents, goodwill, trademarks/copyrights)
Web 3.0
emerging tech aiming to enable an unprecedented level of decentralization and security, want to overcome major problems caused by web 2.0
Cash budget
estimates cash inflows and outflows during a particular period, like a month or a quarter, helps anticipate borrowing needs, debt repayment, operating expenses, and short-term investments, often the last budget prepared
Financial manager
examines financial data prepared by accountants and recommend strategies for improving the financial performance of the firm
Bears
expect stock prices to decline and sell their stocks in anticipation of falling prices
Selling expenses
expenses related to marketing and distribution of the firm's goods or services (advertising, salespeople's salaries, supplies)
Principal
face value of a bond
Distribution warehouses
facilities used to gather and redistribute products
5G
fifth-gen wireless, many roadblocks on how to assign space on the key public resource that 5G will need (the airwaves aka spectrum), 100x faster than 4G
Securities markets
financial marketplaces for stocks, bonds, and other investments
Balance sheet
financial statement that reports firm's financial condition on a specific date, composed of three major accounts: assets, liabilities, owners' equity
FIFO
first in, first out
Initial public offering
first time a company offers to sell its stock to the general public
Capital budget
forecasts a firm's spending plans for major asset purchases that often require large sums of money, like property, buildings, and equipment
Social commerce
form of electronic commerce that involves using social media, online media that support social interaction, and user contributions to assist in the online buying and selling of products and services
Cloud computing
form of virtualization in which a company's data and applications are stored at offsite data centers accessed over the Internet
Franchise systems
franchises agrees to all the rules, regulations, and procedures established by the franchiser (results in consistent quality and level of service you find)
Finance
function in a business that acquires funds for the firm and manages them within the firm
Purchasing
function that searches for high-quality material resources, finds the best suppliers, and negotiates the best price for quality goods and services
rack jobbers
furnish racks or shelves full of merchandise, like music, toys, accessories, and health and beauty aids, to retailers - Display products and sell them on consignment
Financial accounting
generates financial info and analyses for ppl primarily outside the organization
Line of credit
given amount of unsecured short-term funds a bank will lend to a business, provided the funds are readily available, is when a business develops a strong relationship with a bank
Local area network (LAN)
group of connected devices in one physical location
Product line
group of products that are physically similar or intended for a similar market
Primary markets
handle the sale of new securities, IPOs
Secondary market
handles trading of already public stocks between investors, with proceeds of the sale going to the investor selling the stock, not to the corp whose stock is sold
Brokers
have no continuous relationship with buyer or seller (negotiate a contract between parties then their relationship ends)
Stock splits
high per-share prices can cause this, can issue 2+ for every one outstanding stock
Storage warehouse
holds products for a relatively long time (seasonal goods)
Gross profit or gross margin
how much a business earned by buying/making and selling merchandise
Tacit knowledge
in minds of employees, based on their experiences and backgrounds
Direct marketing
includes any activity that directly links manufacturers or intermediaries with the ultimate consumer
Dodd-Frank Wall Street Reform
increased financial regulation affecting accounting by increasing power of the PCAOB to oversee auditors of brokers and dealers in securities markets - Consumer Protection Act
Merchant wholesalers
independently owned firms that take title to the goods they handle
Return on equity
indirectly measures risk by telling us how much a firm earned for each dollar invested by its owners
Human capital
individual capabilities knowledge skills and experience of the company's employees and managers
Program trading
investors give their computers instructions to sell automatically to avoid potential losses if the price of their stock dips to a certain point
Cloud networking
involves the access of networking resources from a centralized third-party provider using WAN or Internet-based technologies
Product life cycle
is a theoretical model of what happens to sales and profits for a product class over time - Introduction - Growth - Maturity - Decline
Materials handling
is the movement of materials within a warehouse, from warehouses to the factory floor, and from the factory floor to various workstations
Price leadership
is the strategy by which 1+ dominant firms set pricing practices all competitors in an industry follow
Yankee bond
issued by a foreign gov; payable in US dollars
US government bond
issued by federal gov, considered safest type of bond investment
Municipal bond
issued by states, cities, counties, other state/local gov agencies; usually exempt from federal tax
Current assets
items that can or will be converted into cash within one year (cash, accounts receivable, inventory)
Financial management
job of managing a firm's resources to meet its goals and objectives
Just-in-time (JIT) inventory control
keep a min of inventory on the premises - deliver parts, supplies, and other needs just in time to go on the assembly line to cut costs of storing parts
Explicit knowledge
knowledge that can be reproduced and distributed easily
Institutional investors
large orgs (pension funds, mutual funds, insurance companies) that invest their own funds or the funds of others
LIFO
last in, first out makes cost of goods sold look better if they are cheaper at the time
Retail cooperatives
like a wholesaler-sponsored chain except it is initiated by the retailers, same degree of cooperate and stores are independent, can purchase a wholesale organization to ensure better service
Fixed assets
long-term assets that are relatively permanent (land, buildings, equipment), also referred to as property, plant, and equipment on the balance sheet)
Intangible assets
long-term assets that have no physical form but do have value (patents, trademarks, copyrights, goodwill)
Bonds payable
long-term liabilities; money lent to the firm by bondholders that it must pay back
Penetration strategy
low prices to attract buyers and discourage other companies from making similar products because profits are slim, enables firm to penetrate or capture a large share of the market quickly
Product analysis
making cost estimates and sales forecasts to get a feeling for the profitability of new-product ideas
time utility
making products available when consumers need them
Outbound logistics
manages the flow of finished products and info to business buyers and ultimately to consumers like you and me
Factor
market intermediary that agrees to buy the firm's accounts receivable, at a discount, for cash, discount depends on the age of the accounts receivable, the nature of the business, and condition of the economy
6 M's of marketing
market, mission, message, media, money, measurement
Ethnographic segmentation
marketers talk with consumers and learn about the product from their perspective
Wholesaler
marketing intermediary that sells to other orgs (retailers, manufacturers, and hospitals), part of B2B
Treasury note
matures in 10 years or less; sold in denominations of 1k up to 1M
Treasury bond
matures in 25+ years; sold in denominations of 1K to 1M
Treasury bill (T-bill)
matures in less than a year; issued w a minimum denomination of 1k
Liquidity ratios
measure a company's ability to turn assets into cash to pay its short-term debts
Profitability (performance) ratios
measure how effectively a firm's managers are using its various resources to achieve profits
Intellectual capital
measure of the value of a firm's intangible assets (difference between a firm's market value and book value
Leverage (debt) ratios
measure the degree to which a firm relies on borrowed funds in its operations
Debt to owners' equity ratio
measures degree to which the company is financed by borrowed funds that it must repay total liabilities/owner's equity
Inventory turnover ratio
measures speed with which inventory moves through the firm and gets converted into sales - Cost of goods sold/average inventory
Acid-test or quick ratio
measures the cash, marketable securities (stocks and bonds), and receivables of a firm, compared to its current liabilities
Cost of goods sold (or cost of goods manufactured)
measures the cost of merchandise the firm sells or the cost of raw materials and supplies it used in producing items for resale
Contractual distribution system
members are bound to cooperate through contractual agreements (between manufacturer and retailer)
Revenue
monetary value of what a firm received for goods sold, services rendered, and other payments (rents received, money paid to the firm for use of patents, interest earned)
Venture capital
money invested in new/emerging companies that some investors believe have great profit potential, in return they get part ownership/some control over the business
Time Value of money
money now is worth more than money in the future bc you can invest
Unsecured loan
more difficult to obtain because no collateral, usually to highlight regarded customers
Common stock
most basic form of ownership in a firm, holders can elect members of the company's board of directors and vote on important issues affecting the company, share in the firm's profits through dividends
Wide area network (WAN)
network that extends over a large geographic area and connects individual users or multiple LANs
Enterprise resource planning (ERP)
newer version of MRP, combines the computerized functions of all the division and subsidiaries of the firm (finance, HR, and order fulfillment) into a single integrated software program that uses a single database
NFT
non-fungible tokens, can't be replaced, has a token on blockchain, used for anything digital
Debenture bonds (unsecure bonds)
not backed by any collateral, only firms with excellent reputations and credit ratings can issue them due to lack of security
Corporate distribution system
one firm owns all the organizations in the channel of distribution
Continuous process
one in which long production runs turn out finish goods over time
Process layout
one where similar equipment and functions are grouped together
Information utility
open two-way flows of info between marketing participants
Retailer
org that sells to ultimate consumers
Marketing intermediaries (middlemen)
organizations that assist in moving goods and services from producers to businesses (B2B) and from businesses to consumers (B2C)
Generally Accepted Accounting Principles (GAAP)
outlined by the independent Financial Accounting Standards Board that accountants must follow, user can expect the info to meet standards upon which accounting professionals have agreed
Securities and Exchange Commission
oversees securities exchanges, securities brokers and dealers, investment advisors, mutual funds in an effort to promote fair dealing, the disclosure of important market info, and to prevent fraud
Public Company Accounting Oversight Board
oversees the AICPA
Preferred stock
owners are given preference in payment of company dividends and must be dividends in full before any common stock dividends can be distributed, also have a prior claim on company assets if the firm is forced out of business, no voting rights in company (callable, convertible, cumulative)
Advertising
paid, nonpersonal communication through various media by organizations and individuals who are in some way identified in the message
Dividends
part of a firm's profits that the company may distributed to stockholders as cash payments or additional shares of stock
Full-service wholesaler
perform all the distribution functions, provide a sales force to sell the goods, maintain inventory, communicate advertising deals, arrange the transportation of goods, and provide capital and market info, and assume the risk for the goods
Limited-function wholesaler
perform select functions, but try to do them especially well (rack jobbers, cash and carry wholesalers, drop shippers)
Facility layout
physical arrangement of resources, including people, to most efficiently produce goods and provide services for customers
Internet of Things
physical products that are connected via the internet, can send and receive data
Process manufacturing
physically or chemically changes materials
Virus
piece of programming code inserted into other programming that usually lies dormant until triggered to cause some unexpected and, for the victim, usually undesirable event
Place utility
place products where people want
Trade credit
practice of buying goods or services now and paying for them later, most widely used source of short-term funding, least expensive, and most convenient
Cash flow forecast
predicts cash inflows and outflows in future periods, usually months or quarters
Short-term forecast
predicts revenues, costs, and expenses for a period of one year or less
Long-term forecast
predicts revenues, costs, expenses for a period longer than one year, sometimes as long as five years, crucial part in company's long-term strategic plan
Skimming price strategy
prices a new product high to recover research and development costs and make as much profit as possible while there's little competition (will then attract competitors)
Psychological pricing
pricing goods and services at price points that make it appear less than it is
Virtual private network (VPN)
private data network that creates secure connections over regular Internet networks - Uses encryption to scramble data when sent over a Wifi network, makes data unreadable, keeping it secure
Consumer decision-making process
problem recognition, information search, evaluate alternatives, purchase decision, post purchase evaluation
Knowledge management
process by which an enterprise gathers, organizes, shares, and analyzes its knowledge in a way that is easily accessible to employees
Financial control
process in which a firm periodically compares its actual revenues, costs, and expenses with its budget
Market segmentation
process of dividing the total market into groups with similar characteristics
Customer relationship management (CRM)
process of learning as much as possible about present customers and doing everything you can over time to satisfy them/exceed expectations with goods and services to try and stimulate long-term customer loyalty
Supply-chain management
process of managing the movement of raw materials, parts, work in progress, finished goods, and related info through all the organizations in the supply chain; managing the return of such goods if necessary; and recycling materials when appropriate
Facility location
process of selecting a geographic location for a company's operation
Factoring
process of selling accounts receivable for cash, expensive source of short-term funds for a firm
Statistical process control (SPC)
process of testing statistical samples of product components at each stage of production and plotting the test results on a graph
Statistical quality control (SQC)
process some managers use to continually monitor all phases of the production process and ensure quality is being built into the product from the beginning
Break-even analysis
process used to determine profitability at various levels of sales - Break-even point (BEP) = total fixed costs (FC) / (price of one unit (P) - variable costs of one unit (VC) )
Intermittent process
production is short, producer adjusts machines frequently to make different products
Lean manufacturing
production of goods using less of everything than in mass production: less human effort, less manufacturing space, less investment in tools, and less engineering time to develop new product
Unsought goods and services
products consumers are unaware of, haven't necessarily thought of buying, or suddenly find they need to solve an unexpected problem (car-towing)
Shopping goods and services
products the consumer buys only after comparing value, quality, price, and style from a variety of sellers - Target sells mostly shopping goods
Convenience goods and services
products the consumer wants to purchase frequently and w minimum of effort (candy, banking services)
Term-loan agreement
promissory note that requires the borrower to repay the loan with interest in specified monthly or annual installments, loan interest is tax deductible
Service utility
provide fast, friendly service during and after the sale and by teaching customers how to best use products over time
Public accountant
provides accounting services to individuals or businesses for a fee
Over-the-counter (OTC) market
provides companies and investors with a means to trade stocks not listed on the large securities exchanges
Managerial accounting
provides info and analysis to managers inside the org to assist them in decision making
Intensive distribution
puts products into as many retail outlets as possible, including vending machines
Assembly process
puts together components to make a product
Leverage
raising funds through borrowing to increase the firm's rate of return
Cost of capital
rate of return a company must earn in order to meet the demands of its lenders and expectations of its equity holder - If the firm's earnings are larger than the interest payments on borrowed funds, business owners can realize a higher rate of return than if they used equity financing
Current ratio
ratio of a firm's current assets to its current liabilities
Direct selling
reaches consumers in their homes or workplace
Demand-based pricing
recognizing different consumers may be willing to pay different prices, pricing on basis of consumer demand rather than cost or some other calculation
Bookkeeping
recording of business transactions, is a basic part of financial accounting
Accounting
recording, classifying, summarizing, and interpreting of financial events and transactions in an organization to provide management and other interested parties the financial info they need to make decisions about its operation
Product screening
reduces the number of new-product ideas a firm is working on at any one time so it can focus on the most promising
Stockbroker
registered representative who works for a brokerage firm as a market intermediary to buy and sell securities for clients
High-low pricing strategy
regular prices are higher than stores using EDLP but during sales they're lower
Operating expenses
rent, salaries, supplies, utilities, insurance
statement of cash flows
reports cash receipts and cash disbursements related to the three major activities of a firm: operations, investments, financing
Agents
represent producers, either manufacturers' agents or sales agents
Stock certificate
represents stock ownership, specifies name of company, number of shares owned, type of stock it represents
Double-entry bookkeeping
requires two entries in the journal and in the ledgers for each transaction to make sure records are correct
Exchange-traded funds (ETFs)
resemble both stocks and mutual funds, collections of stocks, bonds, and other investments that are traded on securities exchanges but are traded more like individual stocks than mutual funds
Sinking fund
reserve account established to ensure enough money will be available to repay bondholders on the bond's maturity date
Brick & mortar commerce
retail stores, stores in person
Auditing
reviewing and evaluating the info used to prepare a company's financial statements
Internet2
runs the fastest network and supports heavy-duty applications such as videoconferencing, collaborative research, distance education, digital libraries, and full-body simulations known as tele-immersion
Telemarketing
sale of goods and services by telephone, use it to supplement or replace in-store selling and complement online selling
Wholesale sale
sale of goods and services to businesses and institutions, like schools/hospitals, for use in the business, or to wholesalers or retailers for resale
Retail sale
sale of goods and services to consumers for their personal use
Multilevel marketing
sales people earn commissions on their own sales, create commissions for the "upliners" who recruited them, and receive commissions from any downliners they recruit to sell
Volume (usage) segmentation
separating the market by volume of product, know who your customer base is to design promotions to better appeal to that specific group/groups
cash-and-carry wholesalers
serve mostly smaller retailers with a limited assortment of products - Retailers buy goods in cash and carry goods back to stores, now they can use credit cards
Web 2.0
set of tools that allow ppl to build social and business connections, share info, and collaborate on projects online with user-generated sites like blogs, wikis, social networking sites and other online communities, and virtual worlds
Everyday low pricing (EDLP)
set prices lower than competitors and don't usually have special sales
Six Sigma quality
sets a benchmark of just 3.4 defects per million opportunities detects potential problems to prevent their occurrence
Budget
sets forth management's expectations for revenues and, on the basis of those expectations, allocates the use of specific resources throughout the firm
Stocks
shares of ownership in a company
Notes payable
short-term or long-term liabilities (like loans from banks) that a business promise to repay by a certain date
Accounting cycle
six-step procedure that results in the preparation and analysis of the major financial statements, relies on work of a bookkeeper and an accountant - Analyze source documents (Sale slips, travel records, etc) - Record transactions in journals - Transfer (post) journal entries to ledger - Take a trial balance - Prepare financial statements (balance sheet, income statement, statement of cash flow) - Analyze financial statements
Social media analytics
social listening, learn what the buzz is around, analyzing data from social networks
Computer-integrated manufacturing (CIM)
software programs that unite CAD and CAM, computers control entire production process
drop shippers
solicit orders from retailers and other wholesalers and have the merchandise shipped directly from a producer to a buyer - They own the merchandise but don't handle, stock, or deliver it
Operations management planning
solves many of the problems in the service and manufacturing sectors
Investment bankers
specialists who assist in the issue and sale of new securities, help companies prepare extensive financial analyses necessary to gain SEC approval for bond or stock issues
Ledger
specialized accounting book or computer program, in it they transfer info from accounting journals to specific categories so managers can find all the info about a single account, like office supplies/cash, in one place
Operations management
specialized area in management that converts or transforms resources, including HR like technical skills and innovation, into goods and services
Malcolm Baldrige Awards
standard set for overall company quality, companies can apply for these
Competition-based pricing
strategy based on what all other competitors are doing, can be at, above, or below price of competitors
Psychographic segmentation
strategy where you study the group's personality, values, and lifestyle (do ads with stars the consumer likes)
Income statement
summarizes revenues, cost of goods sold, expenses (including taxes) for a specific period and highlights the total profit or loss the firm experienced during that period
Trial balance
summary of all the financial data in the account ledgers that ensures the figures are correct and balanced, if the info is correct then the accountant prepares the financial statements
Financial statement
summary of all the financial transactions that have occurred over a particular period, indicate a firm's financial health and stability, and are key factors in management decision making
Government and not-for-profit accounting
supports organization whose purpose is not generating a profit, but serving ratepayers, taxpayers, and others according to a duly approved budget
Administered distribution system
system where producers manage all the marketing functions at the retail level
Depreciation
systematic write-off of the cost of a tangible asset over its estimated useful life
Mass customization
tailoring products to meet the needs of a large number of individual customers
Production process
taking factors of production and using those inputs to produce goods, services, ideas
modular layout
teams of workers combine to produce more complex units of the final product
Activity ratios
tells how effectively management is turning over inventory
Return on sales
tells whether the firm is doing as well as its competitors in generating income from sales, net income/total sales
Cash flow
the difference between cash coming in and cash going out of a business
Stock quotation
the info about a stock that you see (ticker, what exchange it's on, if its a preferred stock, pf, highs and lows, dividends, important ratios)
Identity theft
the obtaining of individuals' personal info, such as social security and credit card numbers for illegal purposes
Logistics
the planning, implementing, and controlling of the physical flow of materials, final goods, and related info from points of origin to points of consumption to meet customer requirements at a profit, describes how companies perform the 7 Rs
capital gains
the positive difference between the price at which you bought a stock and what you sell it for
Tax accountant
trained in law and is responsible for preparing tax returns, or developing tax strategies
Cost-based pricing
use cost as a primary basis for setting price
Computer-aided design (CAD)
use of computers to design products
Exclusive distribution
use of only one retail outlet in a given geographic area, retailer has exclusive rights to sell the product and is therefore likely to carry a large inventory, give exceptional service, and pay more attention to this brand than to others
Third-party logistics
use of outside firms to help move goods from here to there, outsource functions your firm can't do more efficiently than outside firms
Intermodal shipping
uses multiple modes of transportation -highway, air, water, rail - to complete a single long-distance movement of freight
Selective distribution
uses only a preferred group of the available retailers in an area, helps ensure producers of quality sales and service
Form utility
value producers add to materials in the creation of finished goods and services
Utility
value that organizations add to goods or services by making them more useful or accessible to consumers than they were before
Nonstore retailing
vending machines, kiosks, and the internet, enable small businesses to reach people at all hours
NYSE
was a floor-based exchange, changed its rules allowing trading all US stocks regardless of the exchange they are listed on
NASDAQ
was the world's first electronic stock market
Knowledge economy
wealth is increasingly created by effective management of knowledge workers instead of control of physical and financial assets
Cookies
websites send these to your computer that stay on your hard drive, pieces of info such as registration data or user preferences that the browser sends back to the server whenever you return to that website
Liabilities
what the business owes to others
Journal
where bookkeepers record financial data from original transaction documents into a record book or computer program
assembly-line layout
workers only do a few tasks at a time
Private accountant
works for a single firm, gov agency, or nonprofit org
Promissory note
written agreement with a promise to pay a supplier a specific sum of money at a definite time
Annual report
yearly statement of the financial conditions, progress, and expectations of an organization
