Intro to Business Test 1
language barriers
clearly, if you don't speak the language, you'll have trouble communicating. But even among people who do share the same language, slang, jargon, and regional accents can interfere with meaning.
nonverbal communication
communication that does not use words. Common forms of nonverbal communication include gestures, posture, facial expressions, tone of voice, and eye contact
microeconomics
focuses on smaller economic units such as individual consumers, families, and individual businesses.
3 kinds of bias
gender bias, age bias, race, ethnicity and nationality bias.
voicemail
low channel richness
Business environment
makes the critical difference in whether an overall economy thrives or disintegrates
demographics
measurable characteristics of a population
telephone conversation
moderate channel richness
protectionism
national policies designed to restrict international trade, usually with the goal of protecting domestic businesses
factors of production
natural resources, capital, human resources, and entrepreneurship
communication barriers
obstacles to effective communication, typically defined in terms of physical, language, body language, cultural, perceptual, and organizational barriers
exporting
selling products in foreign nations that have been produced or grown domestically
trade deficit
shortfall that occurs when the total value of a nation's imports is higher than the total value of its exports
organizational barriers
some companies have built-in barriers to effective communication, such as an unspoken rule that the people at the top of the organization don't talk to the people at the bottom . These barriers are important to understand but hard to change.
Macro-economics
study of a country's overall economic dynamics, such as the employment rate, gross domestic product, and taxation policies. Macro-economics directly affects your day-to-day life, influencing key variables such as what jobs will be available for you, how much cash you'll actually take home after taxes, or how much you can buy with that cash in any given month
global environment
technology and free trade have blurred lines between individual economies in the world Migration of jobs relates closely to the global movement toward free trade
business ethics
the application of right and wrong, good and bad, in a business setting
comparative advantage
the benefit a country has in a given industry if it can make products at a lower opportunity cost than other countries
demand curve
the graphed relationship between price and quantity from a customer demand standpoint
industrial revolution
Technological advances fueled a period of rapid industrialization in America from the mid 1700s to the mid 1800s. as mass production took hold, huge factories hired large numbers of semiskilled workers who specialized in a limited number of tasks. the result was unprecedented production efficiency but also a loss of individual ownership and personal pride in the production process
President Obama's passed massive stimulus package
The US economy continued to stagger through 2010 and 2011, with unemployment remaining stubbornly high, although signs of recovery began to emerge in late 2012, and certainly in 2013. The Federal Reserve - the US central banking system - took unprecedented, proactive steps to encourage an economic turnaround. President Obama spearheaded passage of a massive economic stimulus package, designed not only to create jobs but also to build infrastructure - with a focus on renewable energy - to position the US economy for stability and growth in the decades to come.
What are the different eras of business?
The industrial revolution, the entrepreneurship era, the production era, the marketing era, and the relationship era
analyze your audience
-expectations: what kind of language do most people use in the organization? is it formal or informal? is it direct or roundabout? should you differ from the norm? why or why not? -education: the education level of the audience should drive the level of vocabulary and the complexity of the message. -profession: some professions (e.g., website development) are rife with jargon and acronyms. How should this influence your message?
steps for implementing code of ethics
-get executive buy-in and commitment to follow through -establish expectations for ethical behavior at all levels of the organization -integrate ethics into mandatory staff training -ensure that the ethics code is global and local in scope
be concise
Comedian Jerry Seinfeld once said, "I will spend an hour editing an eight-word sentence into five." while Jerry might be going a bit too far, it pays to be clear and concise in business communication. but don't be concise at the expense of completeness; include all information that your audience may need.
what categorizes entrepreneurs?
Interestingly, as entrepreneurs create wealth for themselves, they produce a ripple effect that enriches everyone around them. The impact of one successful entrepreneur can extend to the far reaches of the economy
balance of trade and how it is calculated
a basic measure of the difference between a nation's exports and imports. Balance of trade includes the value of both goods and services, and it incorporates trade with all foreign nations.
ethical dilemmas
a decision that involves a conflict of values; every potential course of action has some significant negative consequences
code of ethics
a formal, written document that defines the ethical standards of an organization and gives employees the information they need to make ethical decisions across a range of situations. An ethics code becomes even more important for multinational companies, since it lays out unifying values and priorities for divisions that are rooted in different cultures.
Monopoly
a market structure with just a single producer completely dominating the industry, leaving no room for any significant competitors. Monopolies usually aren't good for anyone but the company that has control.
natural monopoly
a market structure with one company as the supplier of a product because the nature of that product makes a single supplier more efficient than multiple, competing ones. Most natural monopolies are government sanctioned and regulated.
ethics
a set of beliefs about right and wrong, good, and bad
consumerism
a social movement that focuses on four key consumer rights: (1) the right to be safe, (2) the right to be informed, (3) the right to choose, and (4) the right to be heard
organizational culture
a strong organizational culture works in tandem with formal ethics programs to create and maintain ethical work environments
marketing era
after WWII, the balance of power shifted away from producers and toward consumers, flooding the market with enticing choices. to differentiate themselves from their competitors, businesses began to develop brands, or distinctive identities, to help consumers understand the differences among various products. the marketing concept emerged: a consumer focus that permeates successful companies in every department, at every level. this approach continues to influence business decisions today as global competition heats up to unprecedented levels.
corporate philanthropy
all business donations to nonprofit groups, including money, products, and employee time
federal trade commission
an independent agency of the US government, established in 1914 by the federal trade commission act. its principal mission is the promotion of consumer protection and the elimination and prevention of anticompetitive business practices, such as coercive monopoly. promote fair competitive practices, which help give every enterprise a chance to succeed.
noise
any interference that causes the message you send to be different from the message your audience understands
functions of the federal reserve
bailing out shaky firms during a financial crisis, providing banking services for member banks and the federal government, and managing the US monetary policy
bleeding edge
bleeding edge firms launch products that fail because they're too far ahead of the market. during the late 1990s, for example, in the heart of the dot.com boom, Webvan, a grocery delivery service, launched to huge fanfare. but the firm went bankrupt just a few years later in 2001, partly because customers weren't yet ready to dump traditional grocery stores in favor of cyber-shopping.
The Entrepreneurship Era
building on the foundation of the industrial revolution, large-scale entrepreneurs emerged in the second half of the 1800s, building business empires. these industrial titans created enormous wealth, raising the overall standard of living across the country. but many also dominated their markets, forcing out competitors, manipulating prices, exploiting workers, and decimating the environment. toward the end of the 1800s, the govt stepped into the business realm, passing laws to regulate business and protect consumers and workers, creating more balance in the economy.
relationship era
building on the marketing concept, today, leading-edge firms look beyond each immediate transaction with a customer and aim to build long-term relationships. satisfied customers can become advocates for a business, spreading the word with more speed and credibility than even the best promotional campaign. and cultivating current customers is more profitable than constantly seeking new ones. one key tool is technology. using the web and other digital resources, businesses gather detailed information about their customers and use these data to serve them better, "bringing a level of costumer centricity that we've never seen before," according to Graeme Noseworthy, marketing director for IBM.
non-profit organization
business-like establishments, but their primary goals do not include making a profit. Chuck Bean said, "by definition, nonprofits are not in the business of financial gain. we're in the business of doing good. however, nonprofits are still businesses in every other sense - they employ people, they take in revenue, they produce goods and services and contribute in significant ways to our region's economic stability and growth." nationwide, nonprofits employ about 1 in 10 workers, accounting for more paid workers than the entire construction industry and more than the finance, insurance and real-estate sectors combined.
competitive environment
companies develop long-term, mutually beneficial relationships with customers. Speed-to-market provides competitive advantage. Speed-to-market is the rate at which a new product moves from conception to commercialization
sociocultural differences
differences among cultures in language, attitudes, and values. Some specific, and perhaps surprising, elements that affect business include nonverbal communication, forms of address, attitudes towards punctuality, religious celebrations and customs, business practices, and expectations regarding meals and gifts.
social trends
diversity aging population rising worker expectations ethics and social responsibility
different sectors of business environment
economic environment, competitive environment, technological environment, social environment, and global environment
social environment
embodies the values, attitudes, customs, and beliefs shared by groups of people
whistle blower
employees who report their employer's illegal or unethical behavior to either the authorities or the media
human resources
encompasses the physical, intellectual, and creative contributions of everyone who works within an economy. as technology replaces a growing number of manual labor jobs, education and motivation have become increasingly important to human resource development. given the importance of knowledge to workforce effectiveness, some business experts, such as management guru Peter Drucker, break out knowledge as its own category, separate from human resources.
entrepreneurship
entrepreneurs are people who take the risk of launching and operating their own businesses, largely in response to the profit incentive. they tend to see opportunities where others don't, and they use their own resources to capitalize on that potential. Entrepreneurial enterprises can kick-start an economy, creating a tidal wave of opportunity by harnessing the other factors of production. but entrepreneurs don't thrive in an environment that doesn't support them. the key ingredient is economic freedom: freedom of choice (whom to hire, for instance, or what to produce), freedom from excess regulation, and freedom from too much taxation. protection from corruption and unfair competition is another entrepreneurial "must."
universal ethical standards
ethical norms that apply to all people across a broad spectrum of situations
body language barriers
even if your words are inviting, the wrong body language can alienate and distract your audience so completely that they simply won'y absorb the content of your message
economic environment
governments take active steps to reduce the risks of business, to stabilize the economy, and to induce growth. Affected by corruption and ethical lapses, such as shady accounting.
both macroeconomics and microeconomics
have played an integral role in the global economic crisis
in-person presentation
high channel richness
videoconferencing
high channel richness
perceptual barriers
how your audience perceives you and your agenda can create a significant obstacle to effective communication. if possible, explore their perceptions - both positive and negative - in advance
technological environment
impact of digital technology has transformed businesses. Business technology - tools used by businesses to become efficient and effective, such as e-commerce
production era
in the early part of the 1900s, major businesses focused on further refining the production process and creating greater efficiencies. jobs became even more specialized, increasing productivity and lowering costs and prices. in 1913, Henry Ford introduced the assembly line, which quickly became standard across major manufacturing industries. with managers focused on efficiency, the customer was an afterthought. But when customers tightened their belts during the Great Depression and WWII, businesses took notice. the "hard sell" emerged: aggressive persuasion designed to separate consumers from their cash.
natural resources
includes all inputs that offer value in their natural state, such as land, fresh water, wind, and mineral deposits. most natural resources must be extracted, purified, or harnessed; people cannot actually create them. The value of all natural resources tends to rise with high demand, low supply, or both
capital
includes machines, tools, buildings, information, and technology - the synthetic resources that a business needs to produce goods or services. computers and telecommunications capability have become pivotal elements of capital across a surprising range of industries, from financial services to professional sports. you may be surprised to learn that in this context, capital does not include money, but, clearly, businesses use money to acquire, maintain, and upgrade their capital.
avoid bias
intentionally or unintentionally, words can communicate biases that can interfere with your message, alienate your audience, and call your own character into question. As a result, you will be less effective on achieving the immediate goals of your communication (and possibly any future communication as well).
countertrade
international trade that involves the barter of products for products rather than for currency; it is used to meet the needs of customers who don't have access to hard currency or credit, usually in developing countries.
leading-edge
offer products just as the market becomes ready to embrace them. Apple provides an excellent example of leading edge. you may be surprised to learn that Apple - which controls about 70% of the digital music player market - did not offer the first MP3 player. instead, it surveyed the existing market to help develop a new product, the iPod, which was far superior in terms of design and ease-of-use. But apple did not stop with one successful MP3 player. Racing to stay ahead, they soon introduced the colorful
Entrepreneur
people who do risk their time, money, and other resources to start and manage a business
carbon footprint
refers to the amount of harmful greenhouse gases that a firm emits throughout its operations, both directly and indirectly
corporate responsibility
relates closely to philanthropy but focuses on the actions of the business itself rather than donations of money and time.
Troubled Assets Relief Program (TARP)
the negative spiral spurred Congress to pass a controversial $700 billion economic bailout plan in early October 2008. The government passed the American Recovery and Reinvestment Act to help the nation recover from a financial disaster. Included cutting taxes, building infrastructure, and investing in green energy
social responsibility
the obligation of a business to contribute to society
opportunity costs
the opportunity of giving up the second-best choice when making a decision
Equilibrium price
the price associated with the point at which the quantity demanded of a product equals the quantity supplied
speed to market
the rate at which a firm transforms concepts into actual products - can be another key source of competitive advantage. and the pace of change just keeps getting faster. in this tumultuous setting, companies that stay ahead of the pack often enjoy a distinct advantage.
communication channels
the various ways in which a message can be sent, ranging from one-on-one in-person meetings to internet message boards. the different communication channels are texting, memos/reports, email, voicemail, telephone conversation, videoconferencing, in-person presentation, face-to-face meeting
physical barriers
these can range from a document that looks like a wall of type to a room that freezing cold, to chairs in your office that force your visitors to sit at a lower level than you
purpose of the federal reserve
to influence the size of money supply: -M1 money supply: includes all currency plus checking accounts and traveler's checks -M2 money supply: includes all M1 money supply plus most saving accounts, money market accounts, and certificates of deposit
avoid slang
unless you're absolutely certain that your audience will understand and appreciate it, do not use slang in either written or verbal communication. the risk of unintentionally alienating yourself from your audience is simply too high
face-to-face meeting
very high channel richness
very low channel richness
memos/reports
very low channel richness
texting
very low channel richness
dynamic delivery
vibrant, compelling presentation delivery style that grabs and holds the attention of the audience
direct investment
when firms either acquire foreign firms or develop new facilities from the ground up in foreign countries. 2 different options to directly invest: -partnership: a formal, long-term agreement -strategic alliance: less formal, less encompassing agreement
joint ventures
when two or more companies join forces - sharing resources, risks, and profits, but not actually merging companies - to pursue specific opportunities
