FOB Final

Securities and Exchange Commission (SEC)

The agency of the U.S. government that oversees U.S. financial markets and accounting standard-setting bodies.

Country Club

another part of the hospitality industry with a very different service strategy focusing on serving members who develop relationships with the staff compared to a more transnational service interaction in lodging, restaurants or airlines

Advertising

any paid form of nonpersonal presentation and promotion of ideas, to create awareness of a product or company

labor union

an organized group of work that bargains with employers to improve its members' pay, job security, and working conditions.

Online Travel Agency (OTA)

are companies that aggregate accommodations and transportation options and allow users to choose one or many components of their trip based on price or other incentives

National Unions

assist with local contract negotiations, organize new locals, negotiate contracts for entire industries, and lobby government bodies on issues of importance to organized labor.

1. Dani notices that excessive amounts of water are being used in the factory. She traces the problem back to a leak which is then repaired. In which of the four functions of management did Dani engage?

control or corrective action

1. As a person moves up in an organization, the interpersonal and the ____________ skill groups are used most prominently.

decision-making, conceptual, strategic

1. Roger is vice-president of the department in his company that recruits, sets compensation policy, and determines policy for when someone can be fired. What function of the company does he lead?

HR

1. ________ is a company function that secures needed raw materials in the right quality, at the right time and right cost.

Procurement or Production Control

1. According to economic theory, every country has the same economic objectives, namely growth, price stability, and _________.

high, low, or just employment

1. Sel and Poivre are competitors. Sel wants to acquire Poivre, but Poivre management is not in favor of this deal. If Sel were to go to directly to Poivre shareholders to complete the deal, it would represent a(n) ______.

hostile takeover

Profitability Ratios

how much profit is made relative to the amount in vested or the amount sold

cost-based pricing

ignores the value that consumers would place on the market

Destination Marketing Organization (DMO)

includes national tourism boards, state/provincial tourism offices, and community convention and visitor bureaus around the world.

Financial Statements

including income statements, the statement of owner's equity, the balance sheet and statement of cash flows

introduction stage of product life cycle

people, other than those who work in the industry-- are likely to be unaware that a product even exists

prestiege pricing

setting prices artificially high to foster the impression that they're offering a high-quality product

hospitality industry

the combination of the accommodation and food and beverage groupings, collectively making up the largest segment of the industry

Corporate Meetings

vary significantly in size and purpose and include regional or national sales meetings, shareholder meetings, training sessions, or celebrations

1. Anna forms a group to code an app to help people donate to charities. Her sales are growing, but not enough to keep up with costs. An investment company provides $1 million - they expect a good return. This scenario describes what kind of investor?

venture capital

maturity stage of product life cycle

when the product survives the growth stage

1. Hez observes that his boss is using company funds to make improvements on her vacation home. He reports the situation to the CEO of the company. In so doing, he has acted as a(n) _________________.

whistleblower

grievances

worker complaints on contract-related matters

strike

workers walk away from their jobs and refuse to return until the issue at hand has been resolved

credit rating

your ability to borrow in the future

Explain 3 of the ethical problems present in the Foxconn video assigned as part of chapter 4

- Employees were being forced to work excessive overtime - Living conditions were very crowded and most employees stayed on premises for long periods of time - The work was very repetitive and mundane - These factors led to a large number of employees committing suicide. The company had to install nets around the facility to prevent them from doing so.

Explain job enrichment and job enlargement making clear the differences between them

Both job enrichment and job enlargement involve adding responsibilities to a given position. The difference lies in the type of work assigned and in the reason for adding the work. In job enlargement, tasks that are comparable in difficulty are added to a person's job with the primary motivations being to avoid boredom and to increase the person's satisfaction and therefore decrease the chance of them leaving the company. In job enrichment, the tasks that are added would normally be performed by a higher-level employee. The idea here is to develop the person and make them more promotable. It also gives the manager a chance to see how the employee performs on more complicated tasks, so in some sense, it involves assessment of readiness for promotion.

1. Within 1 point in either direction, what inflation rate has the U.S. Government targeted for the country?

2%

tour operator

A company that provides travel packages, either to travel agents or directly to customers.

event

A gathering or activity

List 3 advantages and 3 disadvantages to forming a business as a corporation.

Advantages · Limitation of liability for owners · Access to capital · Easier to scale · Continuity Disadvantages · Double Taxation · Agency problem · More costly to set up

List two advantages and two disadvantages of recruiting internally instead of externally

Advantages: promotional path for existing employees, which in turn tends to lead to better morale; much better idea of the person's capabilities due to having observed them for a longer period of time; much less expensive; the person has a shorter learning curve/knows the company. Disadvantages: May miss out on top talent; if done too much, will not bring new ideas and best practices from outside the company, now have to hire for vacated position, potential ill will between employees competing for a job, promoted person having difficulty managing former peers

Liabilities

Amounts owed to creditors

1. Ben is a candidate for a position at ACE Co. During his interview, he is asked to tell about a time when he had to deal with an irate customer. Into what category does this question fall?

Behavioral

1. Cal is a car salesman. He earns a minimal salary plus a percentage of the selling price for every car he sells. The additional part of Cal's pay is called a(n) ___________.

Commission

1. BVB Co. is a German company producing keyless entry devices for auto makers. Only the auto makers' brands are used. In this example, BVB serves as a(n) _____________ to the auto makers.

Contract Manufacturer

operating expenses

Costs involved in operating a business, such as rent, utilities, and salaries.

FICO score

Credit score from 300-850 that rates how likely a person is to fall 90 days behind in a payment.

1. Pia is reviewing a project schedule and sees that if the site preparation is not done on schedule, the entire project will be delayed. Site preparation must be on the _______.

Critical Path

1. Newly promoted to manager, Sara seeks input from all the members of her team, ponders that input, and then makes most decisions herself. Based on this description, Sara is using what leadership style?

Democratic / Participative

1. Say that French car maker Peugeot decided to re-enter the U.S. market by building a factory in Bayonne, NJ. In this scenario, what global entry strategy would Peugeot be utilizing?

FDI

A recession occurs when what measurement declines for two consecutive quarters? How is this measurement calculated?

GDP; Value of final goods and services produced during a given period of time.

Explain the concept of globalization.

Globalization is the trend towards the economies of the world becoming more interdependent, fostered by free trade.

Explain why the number of building permits issued would be considered a leading economic indicator.

It has direct predictive value in the coming months. When people take out permits, that action is followed by orders for construction materials, appliances, etc. Taken together, the trend in the number of permits gives insight into what is going to happen in a large sector of the economy.

1. Companies like Capital One have developed programs where new hires change assignments several times over a two-year period. This practice is called ___________.

Job Rotation

1. Chad is forming a company and wants to limit his liability, but he does not want to go through the process of incorporating. What business form could he select that would accomplish his objective?

LLC

1. Average weekly hours worked in manufacturing is a measurement that gives economists a good estimate of how much consumers will spend in the coming months. As such, it is a(n) ____________.

Leading Economic Indicator

1. ______ is a process in which a company uses projected sales to determine the amount/quantity of raw materials needed to produce their final products.

MRP

1. Tim is buying a high-end race bicycle. Frames and components are made in large volumes, and buyers like Tim select exactly which they want to have assembled on their new bike. What production method is described here?

Mass Customization

1. A ______ is a concise explanation of the organization's reason for existence. It describes the organization's purpose and its overall intention

Mission Statement

1. In a particular industry, there are five competitors with a combined 90% share of the market. When one changes price, the others typically follow. What form of competition is present in this industry?

Oligopoly

special event

One time event staged for the purpose of celebration; a unique activity.

personal selling

One-on-one communication with customers or potential customers.

Marketing Mix

Product, Price, Place, Promotion

1. Bev works in the corporate office of a multi-factory manufacturing company. Her job involves facility layout, capacity planning, and deciding what each factory will produce. She works in what operations function?

Production Planning

multiproduct branding approach

Sells all products under 1 brand name

1. Katie is granted rights to buy shares of her company at a price of $21. If the price goes down or stays the same, these rights will expire worthless. These rights are called __________.

Stock Options

ratio analysis

Technique for financial analysis that shows the relationship between two numbers.

Companies like Dell Computer have tech support lines that are staffed by people in India. What is the term for this practice? List one advantage and one disadvantage you would expect Dell to experience.

Term: Outsourcing. Can use offshoring as well. Contract manufacturing is not acceptable because there is no manufacturing involved here. Advantages: Cost is the usual motivation. May also get access to local talent that is scarce in the home country. Disadvantages: Reputational, since companies are accused of hurting American workers. Language barriers are often cited in cases of call centers. Can also be a problem if supply chains get interrupted due to local issues, but that would be a rare answer.

collective bargaining

The process of settling differences and establishing mutually agreeable conditions under which employees will work

personal interviews

Though time consuming, personal interviews not only let you talk with real people but also let you demonstrate the product. You can also clarify answers and ask open-ended questions.

1. Aiden likes to mentor and develop the people who report to him. He manages each person in a manner that works best for them. Aiden would be described as a(n) ____________ leader.

Transformational

travel agencies

a business that operates as the intermediary between the industry and the traveler

private branding

a company makes a product and sells it to a retailer who in turn resells it under its own name

manufacturer branding

a company sells one or more products under its own brand names

Diversification

a fancy way of saying to not put all your eggs in one basket.

convention

a large meeting of people who come to a place for usually several days to talk about their shared work or other interests or to make decisions as a group

mega-event

a large scale, highly prestigious event such as the Olympic Games, the FIFA World Cup, or a global economic summit.

Customer Relationship Management (CRM)

a marketing strategy that focuses on using information about current customers to nurture and maintain strong relationships with them

demand-based pricing

a price-setting method based on estimates of demand at different prices

price skimming

a pricing policy whereby a firm charges a high introductory price, often coupled with heavy promotion

penetration pricing

a pricing policy whereby a firm charges a relatively low price for a product initially as a way to reach the mass market

management contract

a service offered by a management company to manage a hotel or resort for its owners

Generally Accepted Accounting Principles (GAAP)

a set of accounting standards that is used in the preparation of financial statements

Target Market

a specific group of consumers who should be particularly interested in your product, who would have access to it, and who have the means to buy it

Trademark

a symbol, word, or words legally registered or established by use as representing a company or product.

festival

a themed public celebration that conveys, through a kaleidoscope of activities, certain meaning to participants and spectators

hallmark event

a unique event that is often identified with the location where it is held, like Carnival in Rio de Janeiro or Oktoberfest in Munich

Contract

agreed upon, multi-year period

niche market

an especially narrow market segment

Mediation

an impartial third party assesses the situation and makes recommendations for reaching an agreement

Arbitration

an impartial third-party will hear both sides of a dispute and will make a decision

1. A government should expect a shortage of product if it mandates a price (above or below) equilibrium.

below

1. Six battery producers voluntarily share detailed production data with a third party consultant who anonymizes the results and shares reporting intended to guide each company to improve efficiency. They have engaged in _____.

benchmarking

1. Negative behaviors like being too dominant tend to impede the progress a team can make. Grouped together, these negative behaviors are known as _____________.

blocking

Consumer Market

buyers who want the product for personal use

Industrial Market

buyers who want the product for use in making other products

beverage industry

continues to evolve as well with a strong focus on local craft beers, wines, cider and distilling

Debt to Equity Ratio

calculates the relationship between funds acquired from creditors and funds invested by owners

focus groups

can bring together a group of individuals and ask them questions

publicity

can often generate more customer interest than a costly add

fine-dining restaurant

characterized by highly trained chiefs preparing complex food items, exquisitely presented

psychographic segmentation

classifies consumers on the basis of individual lifestyles as they're reflected in people's interests, activities, attitudes, and values

Lockout

closing the workplace to workers

food and beverage sector

commonly known to the industry by its initials F&B

1. Strategic planning involves establishing a mission, vision, and goals for the company. The ultimate goal of a strategic plan is for the organization to achieve superior profits through __________.

competitive advantage

1. Dan is tasked with finding a new supplier for office supplies. His mother owns an office supply company and wants to bid on the contract. Dan's obligation to his employer in this situation presents him with a(n) ____

conflict of interest / ethical dilemma

1. Brian is a musician and an engineering major. His heart is in his music, but he studies hard in case his music doesn't sell. For him, the study of engineering is a(n) ___________ plan.

contingency

fixed costs

costs that remain constant as output changes

variable costs

costs that vary with the quantity of output produced

1. Lisa from engineering, Beth from technology, and Will from finance are assigned to a team to solve an issue with product cost. What term best describes this team?

cross functional

geographic segmentation

dividing a market into different geographical units, such as nations, states, regions, counties, cities, or even neighborhoods

Behaviroal Segmentation

dividing consumers by such variables as attitude towards a product, user status or usage rate

demographic segmentation

dividing the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation

1. If a government imposed a total ban on the export of products to a certain country, that ban would be known as a(n) ________.

embargo

Current Ratio

examines the relationship between a company's current assets and liabilities

1. As of April 2, 2019, one euro was worth $1.12 US. This example illustrates the __________ between the currencies of two countries.

exchange rate

Social Media Marketing

facebook, twitter, youtube and any number of other online sites that allow you to network, share your opinions, ideas & photos

1. As the U.S. deficit and debt widen, some economists have called for a drop in government spending. If this occurred, what type of policy action would it represent?

fiscal

1. The business where Bill works allows him to set his own schedule within certain parameters. He has to be there from 10 to 2, and can complete the rest of his hours as he wishes. His employer uses __________.

flextime

Fast Casual Restaurants

focus on higher quality ingredients than QSR's and provide made-to-order food in an environment that does not include table service

quick-service restaurant

formerly known as fast food

1. ______ is an alterative to starting a new business from scratch and allows new business owners to use the support of a larger organization that provides marketing support and other services.

franchising

financial accountants

furnish information to individuals and groups both inside and outside the organization in order to help them assess its financial performance

conventions

generally have large attendance and are held on a regular schedule but in different locations

community event

generated by and for locals; although it may attract tourists, its main audience is the local community

packaging

gives customers a glimpse of the product, and it should be designed to attract their attention, with consideration given to color choice, style of lettering, and many other details

market segments

groups of potential customers with common characteristics that influence their buying decisions

1. Lance does not like confrontation, so even when he doesn't agree with his team, he lets others have their way. What concept best accounts for Lance's behavior in this case?

groupthink

1. Dan just graduated with his accounting degree and goes to work in a CPA firm where he uses his knowledge to audit client companies. In performing his day to day work, on which skill area is Dan mainly relying?

hard skills

Association Meetings or Conferences

held regionally and nationally for hundreds of associations or events focused on specific themes

secondary data

information that has already been collected, whether by the company or by others, that pertains to the target market

1. Bob's father is a senior exec at YYP. He tells Bob that a very unfavorable regulatory report will come out the next day and that Bob should sell his YYP stock. If Bob does so, he will be committing ___________.

insider trading

1. One way of protecting your ___________ is to obtain a patent to prevent others from using it without penalty.

intellectual property or innovation

travel services sector

is made up of a complex web of relationships between a variety of suppliers, tourism products, destination marketing organizations, tour operators, and travel agents, among many others.

1. A cosmetics maker wants to expand to Portugal and signs a deal with a local company. Each company invests equal amounts to create a new firm that will make and market the product. This arrangement is best described as what entry strategy?

joint venture

Management Accounting

known as managerial accounting, plays a key role in helping managers carry out their responsibilities

institutional food service

large scale and often connected to governmental (National Parks) or corporate level organizations

1. A U.S. maker of computer accessories enters the Asian market by signing a contract with a Thai company to make and sell the devices, but only in Thailand and with the Thai company's name. This example illustrates ___.

licensing

1. Caen is a producer of soccer equipment with five owners. One owner is responsible for the day to day operations and has unlimited liability. The other four are liable only up to the amount invested. Caen is a(n) _____.

limited partnership

Debt Ratio

look at how much borrowing has done in order to finance the operations of the business

Payment History

paying your bills on time, total amount owed, length of your credit history, amount of new credit you have, and types of credit you use

marketing department

manage, plan, organize, lead, and control the organization's overall marketing efforts

1. The traditional business team where the members are primarily directed by the boss are called ________.

manager led

Retailers

marketing intermediaries that sell products to the eventual consumer

1. Bats is a restaurant chain primarily located along the east coast. They combine with Balls, a west coast chain of about the same size. The deal between the two equally-sized companies is a(n) ___________.

merger

1. During the Obama administration, the Fed cut interest rates to near zero, hoping to stimulating the economy. This acton would be categorized as a(n) __________ move.

monetary policy

1. One laundry detergent is pretty similar to another, though there is some modest difference in the price due to perceived differences in product quality. What form of competition is described here?

monopolistic competition

primary data

newly collected information that addresses specific questions

Strikebreakers

nonunion workers who are willing to cross picket lines to replace strikers

family restaurant

offer affordable menu items that span a variety of customer tastes

sales promotion

one of the many ways that sellers provide incentives for customers to buy

1. Noah found $10 on his way downtown. After deliberating between a pizza and a burger/shake combo, he decides on the pizza. For Noah, the burger combo represents the ____________ of buying the pizza.

opportunity cost

1. Consider the market for a product made by a large number of producers, each of which have no influence on the market price. What type of competition does this example describe?

perfect competition

loss leader strategy

pricing an item at a loss to draw customers into the store

Bundling Strategy

pricing items as a group, or bundle, at a discount to the cost of buying the items separately

1. Scott buys a hedge trimmer and goes around the neighborhood earning $20 an hour with it. He keeps all the after-tax value of what he creates. What concept does this example describe?

private property rights

casual restaurant

serve moderately price to upscale food in a more casual atmosphere

odd-even pricing

setting prices a few dollars or cents under an even number

management accountants

provide information and analysis to decision makers inside the organization in order to help them run it

Labor Federation

provides assistance to member unions and serves as a principal political organ for organized labor.

Assets

resources owned by a business, expected to gain future benefit

Marketing Concept

satisfying customer needs while meeting organizational goals

1. Because services like haircuts are intangible (i.e., cannot be stocked), what aspect of managing a service operation becomes especially critical?

scheduling

1. Where Shana lives, the government owns many businesses. Taxes are high, but education and health care are nearly free. In her country, the economic system tends towards _______.

socialism

1. Jill's job is to study statistics relating to the changing structure of human populations, such as aging. Which of the PESTEL forces does she study?

sociocultural

1. Lea is drawn to a certain form of business because she would have no boss, keep all the profits, and incur no special taxes. However, she would have unlimited liability. This business form is a(n) _________.

sole proprietorship

brand

some word, letter, sound, or symbol that would differentiate their product from similar products

surveys

sometimes marketers mail questionnaires to members of the target market

1. Jack is opening a restaurant in downtown Blacksburg. He wants to ensure that his business model takes into account the needs of his customers, suppliers, employees, and other ___________ with an interest in the success of his business.

stakeholders

1. The U.S. often accuses Canada of assisting its dairy farmers with taxes on milk imports, whereas the U.S. makes direct payments to its own dairy farmers. The U.S. payments represent a form of _____________.

subsidy

growth stage of product life cycle

successful products will a stage of rapid customer adoption

1. Zut and Alors are companies with excess factory capacity. Zut decides to buy Alors, which will allow them to close one factory, reducing costs. The cost saving enabled by this merger is a form of operational _________.

synergy

Efficiency Ratios

tell you how well your assets are being managed

Liquidity Ratios

tells you how well positioned a company is to pay its bills in the near term

brand equity

the added value a brand name gives to a product beyond the functional benefits provided

hospitality

the business of helping people to feel welcome and relaxed and to enjoy themselves

Gross Margin

the difference between sales revenue and cost of goods sold

Gross Profit

the excess of net sales over the cost of goods sold

Owner's Equity

the investment in the business

Accounting

the language of business, because it communicates so much of the information that owners, managers and investors need to evaluate a company's financial performance

generic branding

the maker attaches no branding information to a product except a description of its contents

promotion mix

the means by which you communicate with customers—may include advertising, personal selling, sales promotion, and publicity

full-service restaurant

the most fluid of the F&B operation types, adjusting and changing to the demands of the marketplace

tourism

the movement of people for a number of purposes (whether business or pleasure)

International Financial Reporting Standards (IFRS)

the multinational standards, which are issued by the IASB

decline stage of product life cycle

the point at which sales drop significantly

Marketing Research

the process of planning, collecting, and analyzing data relevant to a marketing decision

Cost of Goods Sold (COGS)

the total cost of the goods you've sold

Earnings Per Share (EPS)

this ratio divides net income by the number of shares of the stock outstanding

Revenue Management Tools

to forecast demand and and adjust availability of various price points

Picketing

to tell people that a workforce is on strike or to publicize some management practice that is unacceptable to the union

1. The European Union is a regional group of countries that exists to facilitate freer trade among its member nations. It serves as an example of a(n) ____.

trade bloc or common market

1. As a nation, Hong Kong sells more goods and services to France than they buy from the French. In this case, Hong Kong has a(n) ___________.

trade surplus

Ethnic restaurant

typically reflects the owner's cultural identity

boycotting

union workers refuse to buy a company's products and try to get other people to follow suit

List four important and distinctly different factors involved in facility location.

· Incentives from governments such as tax breaks or enterprise zones · Access to transportation routes · Access to customers or suppliers · Access to specific raw materials · Access to trained or educated labor force · Quality of life for employees · Cost and availability of labor in the area · Cost of land