BUS-10 LESSON 1-4

Aflacs mission statement: to combine aggressive strategic marketing with quality products and services at competitive prices to provide the best insurance value for consumers. Businesses can benefit society by offering valuable products. Based on the above mission statement what values does Aflac provide?

1. increasing quality 2. increasing value of money

what actions utilize the guidelines for ethical decision-making?

1. individually meet with members of the suspension production team to identify what represents a production "shortcut" versus a legitimate productivity improvement. 2. solicit ideas from the product manager and line managers about how productivity enhancements could be implemented quickly but transparently, so that company management knows what decisions are being made on the production floor.

What are some ethical practices that you can implement at your business?

1. offering clear protections for whistle-blowers 2. accepting the position of Chief Ethics Officer 3. adopting a business ethics policy

Potential impact of the increase in real state prices

1. potential customers pay higher rent and have less money to spend on household items 2. businesses cut production and lay off employees 3. businesses produce fewer products because of a lack of demand 4. businesses pay higher rents for their retail stores

What are benefits to studying business?

1. provide opportunities to view business through the lens of an investor. 2. helps students to evaluate career choices 3. provides a better understanding of consumer needs

consumer rights that are affected by your decision

1. right to be informed 2. right to safety

Socioeconomic model

1. socially responsible decision-making by firms can prevent increased government intervention 2. businesses cannot ignore social issues 3. businesses can create a more stable environment for long-term profitability by helping to resolve social issues

how to make an ethical decision:

1. the situation is discussed and the associated problems explored 2. the situation is carefully reviewed to determine how individuals are affected 3. put strong feelings aside and come up with alternatives

If embargoes are lifted for a certain country, what is the likely outcome?

1. the volume of trade between the two countries will increase 2. trade relations between the two countries will improve

Monopolies maintain their hold on a market when there are barriers to other firms entering the industry. Which of the following statements describe barriers to entry?

1. when a massive investment is required to start a business it creates barriers to other firms entering that industry. 2. When the government highly regulates an industry it creates barriers to other firms entering that industry.

Over a series of business cycles, one might find a peak, a trough, a period of expansion, and a period of contraction. Which of the following statements is true?

A recession is a period of contraction that follows a peak.

Technology factor example

Amazon is now one of the top 10 largest retailers in the US, even though they don't have any substantial physical retail presence. This illustrates the impact of ________________ factors in the business environment.

China has become a dominant exporter of exporter of electronics to the US and European markets. What is the direct effect of China's growth in exports?

An increase of jobs and income in China

The High Performance Team identifies potential societal concerns related to your company expanding to China. Which of the below items is the biggest concern?

China has fewer regulations related to work hours and working conditions

What is a monopolistic competition strategy?

Clearly differentiate from the competition

Competitive factor example

For many years, HBO insisted that its current shows would only be offered via paid cable subscription. Partly because of the rise of Hulu, Netflix, and other on-demand viewing services.

What statement most accurately describes Adam Smith's view of an economic system that best serves in the interest of society?

Individuals in the country may pursue their own economic gain and self-interest by doing whatever is best for them .

The right to limit intervention example

Hong Kong is a mixed economy where the competitive regulatory regime aids business formation and innovation. North Korea is a communist country where entrepreneurial activity is non-existent because the state continues to regulate the economy heavily through central planning and control.

Global factor example

Increased competition from firms in other nations

example of a pass-through taxation

Jill's coffee shop made $250,000 profits last year. Jill and her partner will report their shares of profit on their individual tax return.

what is a oligopoly strategy?

Match competitor pricing and differentiate your product

Communist example

Only state enterprises can enter into economic agreements with foreigners as minority partners; ordinary citizens cannot participate. All means of production are owned by the state.

which form of business is the easiest to start?

Sole proprietorship

example of a joint venture

UK's Jaguar Land Rover and China's Chery Automobile formed a partnership to produce Jaguar sedans, Land Rover SUVs, and co-branded vehicles in China

The right to economic freedom and the freedom to compete example

Venezuela is a socialist country where the average tariff rate on imports is 8.6%. The rate is fairly high. Non-tariff barriers restrict imports of cars and agricultural products. It may take several weeks to import goods. This limits the ability of businesses to import goods at a reasonable price.

S-corporation

a corporation that is taxed as a partnership, where the corporation's income is taxed only as the personal income of its stockholders

what is one risk in starting an international joint venture?

a high level of commitment will be required to oversee the investment

partnership

a voluntary association of two or more acting as co-owners of a business

IMF

an organization of 188 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world

what are 2 benefits of importing?

more consumer choice and lower consumer prices

Importing

purchasing products from other nations and bringing them into your country

The US imports trillions of dollars of goods per year. What is a benefit of importing for the US?

shift of production resources to higher-value activities

example of exporting

the UK sells industrial supplies to many nations around the world. The UK is engaging in _______________

The right to create wealth example

the maximum individual tax rate varies from country to country. The lowest maximum individual tax rate is in the British Virgin Islands (0%).

You have received a lawsuit from a customer seeking reimbursement for the defective products shipped plus additional financial damages. The damages being claimed in the lawsuit are based on the violation of laws related to which consumer right?

the right to safety consumer right

___________ can promote ethical behavior by exerting pressure on members to stop unethical practices

trade associations

Mixed economy example

with no minimum capital standards, starting a company only requires some simple paperwork. Flexible labor regulations means you can hire employees as long as you follow certain guidelines and laws

Economic factor example

you have trouble finding a job because the majority of businesses have falling revenues and profits.

Socialist economy example

.On average, it requires over 100 days to incorporate a company, and obtain necessary permits take 400 days. And some key industries are owned by the state, do you would need to evaluate whether private businesses in your industry are even allowed.

You have a baby product company. Which of the following describes how your company's products bring value to customers?

1. Cribs reduce the possibility of injuries to children while they sleep. 2. Baby carriers come in a wide range of prices and features 3. High chairs provide a stable surface for children when seated in restaurants.

There are many benefits of studying business. What are they?

1. ability to evaluate different career choices 2. potential success in a career in business 3. increase ability of making better purchasing decisions by evaluating marketing claims

what are strategies that would allow you to avoid double-taxation of your profits?

1. form a sole proprietorship 2. form an LLC 3. form a corporation and reinvest after-tax profit back into the business instead of distributing to owners 4. form a partnership 5. form an S-corporation

How to maintain high ethical standards

1. implement a policy regarding how company employees will interact with customers and competitors 2. implement a policy banning employees from accepting meals paid for by suppliers 3. establish a mechanism to communicate potential safety issues and defective part recalls to employees and customers

Economic factor example

Beginning in 2017 Carrier, a heating, ventilation and air-conditioning company, will transfer manufacturing to Mexico because of the lower labor costs in Mexico, resulting in the elimination of 700 US jobs. This move is in response to changing _____________ in the business environment.

Improve quality of life example

Ex: The business is a member of the local chamber of Commerce and supports local community charities.

Offer valuable products example

Ex: The business is the only one in town to offer 48 hours turn around on printing projects.

Environmental damage example

Ex: The business uses ink that is shipped in bulky, non-recyclable ink containers.

increase employment example

Ex: increase staffing levels by 25%

health and safety risks example

Example: some of your printing processes utilize chemicals that require press operators to wear masks during production.

what is a monopoly strategy?

Exploit your industry's natural barriers to entry and quickly achieve a large market share.

The right to own property and resources example

The European Convention on Human Rights states "Every natural or legal person is entitled to the peaceful enjoyment of his possessions. No one shall be deprived of his possessions except in the public interest and subject to the conditions provided by law and by the general principles and international law.

totally owned facilities overseas are an example of:

an international direct investment

Employer Responsibility example

implementing a mandatory safety training program for line workers

____________ can promote ethical behavior by providing options for individuals to report ethical violations

companies

In order to ensure prompt and accurate reporting of unethical business practices, you draft a company policy requiring all employees to report any unethical business practices directly to your office. In addition, all employees are required to submit signed copies of the policy to you. This practice is:

ethical and legal

Global example

ex: Printing companies from China have begun to aggressively market their services in the US by offering low prices and fast overseas shipping.

Social example

ex: Younger consumers do not seem to use products

Competition example

ex: another printing company is opening an office several blocks away

Technology example

ex: more and more individuals are able to print sophisticated products such as business cards and brochures using their home computer.

Economic example

ex: the economy in your area is expected to be stagnant for the least the next 12-18 months.

___________ can promote ethical behavior by passing legislation that protects individuals who report ethical violations

government