MGMT 470 Exam 3 (6-10)
Earned Media
- Public relations and press relations or "free ink"
Effectuation
- Putting into force or operation - A logical process in which one analyzes the resources available and restraints on the use of resources to create an attainable goal
Lean Business Practices
- Refer to systematically eliminating waste of time, materials, and money throughout a business - Addresses the specifics of internet based businesses where rapid experimentation and constant monitoring of viewers' choices are possible
Brand Ambassadors
- Related affiliates to paid and owned media
Primary Research
- Research gathered to answer a specific marketing question
Buyouts
- Restricted to businesses that have a formal legal form of organization - Accomplished through purchasing ownership interest - Very simple - Occurs through an employee stock ownership plan (ESOP)
Product Distribution Franchising
- Sell the franchisor's products and are supplier-dealer relationships - The franchisor licenses its trademark and logo to the franchisees but typically does not provide them with an entire system for running their business
Core Competencies
- Skills all competitors have
Key Performance Indicators
- Standards for measuring goals
Altruism
- The belief in or practice of disinterested and selfless concern for the well-being of others
External Legitimacy
- The extent to which a small business is taken for granted, accepted, or treated as viable by organizations or people outside the small business or the owner's family
Industry
- The general name for the line of product or service being sold
Strategy
- The idea and actions that explain how a firm will make its profit
Prototype
- The name given to a first product or service - Used in further consumer testing
Book Value
- The original acquisition cost of the asset minus all the depreciation expense recognized to date
Competitive Advantage
- The particular way a firm implements customer benefits that keep the firm ahead of other firms in the industry
Break Even
- The point at which cost and income is equal
Bricolage
- The process of analyzing the resources available and creating a product or service from them
Due Diligence
- The process of investigating a business to determine its value and possible implications
Business Life Cycle
- The progression of business phases over time
Scope
- The range of something
Earnings Multiple
- The ratio of the value of a firm to its annual earnings - The firm value divided by actual or expected annual earnings Provides a quick estimate of firm value
Churn
- The rotation of customers
Takeover
- The seizing of control of a business by purchasing its stock to be able to select the board of directors
Global Mindset
- The set of individual qualities, communication skills, and actionable knowledge that empowers those in leadership roles to influence multicultural individuals, groups, and organizations
Scale
- The size of the market, mass, or niche
Cognitive Dissonance
- The state of having inconsistent thoughts, beliefs, or attitudes, especially as relating to behavioral decisions and attitude change
Intangibles
- Unable to be touched or grasped
Bootsrapping
- Using low cost or free techniques to minimize your cost of doing business
Blue Ocean Strategy
- When a new product or service is introduced - (pure innovation)
Paid Media
- When you pay for an advertisement
Owned Media
- Your website, newsletters, emails, signage, etc
Key Resource Acquisitions
- (bulk asset purchases) - The only way a sole proprietorship can be purchased - Purchasing only the assets of the business - Difficult to value intangible assets he buyer is not responsible for any acts of the prior owner - The seller keeps cash and recievables
Elevator Pitch
- A 30 second action-oriented description of a business designed to sell the idea of the business to another - Should be memorable enough so that the listener can tell others about your business
Spin - off
- A business that is created by separating part of an operating business into a separate entity - Done by businesses of all sizes and different stages of development
Pivot
- A change of direction in the thinking of an entrepreneur or a firm often based on new data or other findings
Competitive Advantage
- A condition or circumstance that puts a company in a favorable or superior business position
Co Marketing
- A form of automated marketing in which an electronic storefront has formed a partnership with another electronic storefront in which each company markets the other's online products
Cost Strategy
- A generic strategy aimed at mass markets in which a firm offers a combination of cost benefits that appeal to the customer
Focus Strategy
- A generic strategy that targets a portion of the market called a segment or niche
Mission Statement
- A paragraph that describes the firm's goals and competitive advantages
Differentiation Strategy
- A type of generic strategy aimed at clarifying how one product is unlike another in a mass market
Vision Statement
- A very simple 5-10 word sentence or tagline that expresses the fundamental idea or goal of the firm
Industry Analysis
- Allows entrepreneurs to see how profits are generated which tells if an industry is growing, stable, or in decline
Secondary Research
- An approach to researching based on the use of existing information
Trade Name Franchising
- An arrangement in which there is a supplier who supplies a product or product family to any dealer who could also avail the identity of the supplier - Also known as a product franchise
Replacement Value
- An estimate of what an identical asset would cost to be acquired and readied for service
Tangibility
- An item's capability of being touched, seen, tasted, or felt
Entry Wedge
- An opportunity that makes it possible for a new business to gain a foothold in the market - Supply shortages, unutilized resources, customer contracting, second sourcing, market relinquishment, favored purchasing, and government rules
Retrenchment
- An organizational life cycle stage in which established firms must find new approaches to improve the business and its chances for survival
Mass Market
- Broad market
Synergy
- Business results are greater than the sum of the input - A combination in which the whole is greater than the sum of its component parts
Shared Media
- Called work of mouth or referral advertising
Heuristics
- Common rules of thumb that are used to estimate firm value in relation to some easily observable characteristics of the business
Comparable Sales
- Commonly used to estimate the value of a business - A problem because no two firms are exactly alike and there are often no recent sales for comparison
First Step of Due Diligence
- Conduct extensive interviews with the sellers of the business
Augmented Product
- Core product plus features that differentiate it from competition
Value Proposition
- Focused on by marketing - The relation of product or company capabilities to customer pains and gains
Business Format Franchising
- Granting of a license by one person (the franchisor) to another (the franchisee)
Distinctive Competence
- How your firm differs from another
Incremental Innovation
- Imitation plus one degree of similarity
Operational Plans
- Include the full business plan but add details on major techniques, methods, recipes, formulas, and sources
Primary Goal of Due Diligence
- Look for any wrongdoing, fraud, misrepresentations, or missing information - Look for inefficiencies, waste, opportunities, or mismanagement
Operating Margins
- Measures how much profit a company makes on a dollar of sales after paying for variable costs of production
Niche Market
- Narrowly defined market
Sole Proprietorship
- One owner who personally pays income tax on profit earned