BDynamics
full-service wholesalers
merchant wholesalers that perform all the distribution functions
limited-function wholesalers
merchant wholesalers that provide only some wholesaling functions
today's new era of marketing
mobile/on-demand marketing
Revenues
money generated from products sold or services rendered. "TOP LINE"
Expenses
money outflow from the costs associated with selling products or services
maturity date
the exact date the issuer of a bond must pay the principal to the bondholder
principal
the face value of a bond
process manufacturing
the part of the production process that physically or chemically changes materials
interest rate
the payment the issuer makes to the bondholders for use of the borrowed money. Sometimes called the coupon rate (for bonds). - can vary, depending on the government's rates, the economy, the reputation of the issuing company, and other companies' rates.
Trade Surplus (Favorable)
When the value of a country's exports is more than that of its imports.
direct marketing
activities that directly link manufacturers or intermediaries with the ultimate consumer.
apprenticeship program
an education that combines on-the-job training with formal classroom instruction.
independent audit
an evaluation and unbiased opinion about the accuracy of a company's financial statements
consumer sales promotion
free samples, coupons, contests, and demonstrations to consumers
Issuing Stock
helps balance sheet by creating no debt
cost-based pricing
measures cost of producing a product including materials, labor, and overhead
What is happening to social security?
# of workers per retiree is falling.
strategic alliance
(2nd most risky) a long-term partnership between two or more companies established to help each company build competitive market advantages. - they don't typically share costs, risks, management, or profits. - provide access to markets, capital, and tech expertise.
Joint Ventures
(2nd most risky) a partnership in which two or more companies (often from different countries) join to undertake a major project. - shared risk&tech - shared marketing/expertise
gain sharing plans
(compensation method) annual bonuses paid to employees based on achieving specific goals such as quality measures, customer satisfaction measures, and production targets
profit-sharing plan
(compensation method) incentive plan for distributing bonuses to employees when company profits rise above a certain level.
stock options
(compensation method) rights to buy a certain number of shares of stock at a specified price.
multinational corporation
(example of FDI) an organization that manufactures and markets products in many different countries and has multinational stock ownership and multinational management.
Foreign Direct Investment (FDI)
(most risky) the buying of permanent property and businesses in foreign nations
Contracting Manufacturing
(upper-mid risk) a foreign company's production of private-label goods to which a domestic company then attaches its brand name or trademark; part of the broad category of outsourcing - APPLE w/ Foxconn
challenges of home-based businesses
- Getting New Customers is difficult -Time Management -Work vs. Family sometimes not separated -City Ordinances -Risk
S Corporation Qualifications
- Have 75 or fewer stockholders - Be a domestic corporation that is not a subsidiary of a larger company - Have only one class of stock - Have only individuals, estates, and certain trusts as shareholders - Have only U.S. residents as shareholders
factors that influence product pricing
- competitors' prices - production costs - distribution - promotion
causes of small business failure
- failing to keep/record accurate records - carrying habits of personal extravagance -underpricing or overpricing goods - diving in without testing waters on a small scale - attempting to do too much with too little capital
Rack jobbers (limited-function)
- furnishes racks or shelves full or merchandise to retailers, display products, and sell consignment. (like coke shelf at a supermarket)
Cons of offshore outsourcing
- jobs may be lost permanently and wages fall due to low-cost competition offshore - offshore outsourcing may reduce product quality and can therefore cause permanent damage to a company's reputation - communication among company members, with suppliers, and with customers becomes much more difficult
Pros of offshore outsourcing
- less-strategic tasks can be outsourced globally so that companies can focus on areas in which they can excel and grow - outsourced work allows companies to create efficiencies that in fact let them hire more workers - consumers benefit from lower prices generated by effective use of global resources and developing nations grow, thus fueling global economic growth
factors that increase small business success
- owner pays attention to new customers - products not easily made by mass production
Why Most Good Employees Quit
- unhappy with management - lack of advancement
Nonprofit marketing tactics include:
-Fundraising -advertisements -creating awareness
Ethics start at the top
-managers can help instill corporate values in employees -trust between workers and managers must be based on fairness, honesty, openness, and moral integrity -overly ambitious goals and incentives can create an environment in which unethical actions can occur
How do we restore trust in the free-market system?
-punish those who have broken the law -make accounting records more transparent -consider what is ethical, not just what is legal
Human Resource Planning process
1) Preparing a human resource inventory of employees. 2) Preparing a job analysis. 3) Assessing future human resource demand. 4) Assessing future labor supply. 5) Establishing a strategic plan.
cons of free trade
1) domestic workers (particularly in manufacturing based jobs) can lose their jobs due to increased imports or productions shifts to low-wage global markets 2) workers may be forced to accept pay cuts from employers, who can threaten to move their jobs to lower-cost global markets 3) moving operations overseas because of intense competitive pressure often means the loss of service jobs and growing numbers of white-collar jobs 4) domestic companies can lose their comparative advantage when competitors build advanced production operations in low-wage countries
pros of free trade
1) the global market contains over 6 billion potential customers for goods and services 2) productivity grows when countries produce goods and services in which they have a comparative advantage 3) global competition and less-costly imports keep prices down, so inflation does not curtail economic growth 3) free trade inspires innovation for new products and keeps firms competitively challenged 4) uninterrupted flow of capital gives countries access to foreign investments, which help keep interest rates low
5 factors of production
1. Land (natural resources) 2. Labor (physical or mental) 3. Capital (machinery, tools) 4. Entrepreneurship (initiative, risk) 5. Knowledge Entrepreneurship + Knowledge are what make countries rich.
4 eras of marketing
1. Production 2. Selling 3. Marketing Concept 4. Customer Relationship
JFK's 4 basic rights of consumers
1. Right to safety 2. Right to be informed 3. Right to choose 4. Right to be heard
key functions of packaging
1. To attract buyers' attention 2. Protect the goods inside and be tamperproof, deter theft 3. Be easy to open 4. Describe and give information about the product 5. Explain the product's benefits 6. Provide warranty information and warnings 7. Give an indication of price, value, and uses
Six steps to improve U.S. business ethics
1. Top management must adopt and support an explicit corporate code of conduct. 2. Employees must understand that senior management expects all employees to act ethically. 3. managers and others must be trained to consider the ethical implications of all business decisions. 4. an ethics office must be set up with which employees can communicate anonymously. 5. involve outsiders such as suppliers, subcontractors, distributors, and customers. 6. ethics code must be enforced with timely action if any rules are broken.
How to Bring New Products to Market
1. build up slowly 2. design for a single function 3. package it perfectly 4. become a status symbol
Small Business Administration (SBA)
A U.S. government agency that advises and assists small businesses by providing management training and financial advice and loans.
Trademark
A brand that has exclusive legal protection for both its brand name and its design.
Executive Summary
A brief recounting of the key points contained in a business plan
Limited Liability Company (LLC)
A company similar to an S corporation but without the special eligibility requirements. More than half of new business registrations in some states are LLCs.. Also avoid double tax burden.
Materials Requirement Planning (MRP)
A computer-based operations management system that uses sales forecasts to make sure that needed parts and materials are available at the right time and place. ERP or Enterprise resource Planning is a newer version that combines the computerized functions of all the divisions of the firm (finance, HR, order fullfillment)
prospectus
A condensed version of economic and financial information that a company must file with the SEC before issuing stock; the prospectus must be sent to prospective investors.
Franchising
A contractual agreement between a franchisor and a franchisee that allows the franchisee to operate a business using a name and format developed and supported by the franchisor.
Intrapreneur
A creative person who works as an entrepreneur within a corporation. Use company's existing resources to launch new products for the company.
business plan
A detailed written statement that describes the nature of the business, the target market, the advantages the business will have in relation to competition, and the resources and qualifications of the owner(s). MANDATORY for talking with bankers or investors for borrowing money. Takes at least 6 months to write.
Income Statement
A financial statement that reports a company's revenues and expenses and resulting net income or net loss for a specific period of time. They are temporary.
Balance Sheet
A financial statement that reports assets, liabilities, and owner's equity on a specific date. It is a permanent account.
entrepreneurial teams
A group of experienced people from different areas of business who join to form a managerial team with the skills to develop, make and market a new product. Combine their creative skills with production and marketing skills from the start. Ensure more cooperation/coordination among functions.
Program Evaluation and Review Technique (PERT)
A method for analyzing the tasks involved in completing a given project, estimating the time needed to complete each task, and identifying the minimum time needed to complete the total project.
Master Limited Partnership (MLP)
A partnership that looks much like a corporation (in that it acts like a corporation and is traded on a stock exchange) but is taxed like a partnership and thus avoids the corporate income tax. Oil/Gas industries it is common
prospect
A person with the means to buy a product, the authority to buy, and the willingness to listen to a sales message.
competition-based pricing
A pricing strategy based on what all the other competitors are doing. The price can be set at, above, or below competitors' prices.
offshore outsourcing
A process by which a firm moves some of its work to a secondary business outside the home country that can do the work more efficiently or cheaply
Bond Ratings
A rating assigned to a firm to measure the probability of default by a company like S&P or Moody's.
stockbroker
A registered representative who works as a market intermediary to buy and sell securities for clients.
sinking fund
A reserve account in which the issuer of a bond periodically retires some part of the bond principal prior to maturity so that enough capital will be accumulated by the maturity date to pay off the bond.
New Product Development Process
A seven-phase process for introducing products: idea generation, screening, concept testing, business analysis, product development, test-marketing, and commercialization
focus group
A small group of people who meet under the direction of a discussion leader to communicate opinions.
Ledger
A specialized accounting book or computer program in which information from accounting journals is accumulated into specific categories and posted so that managers can find all the information about one account in the same place.
Operations Management
A specialized area in management that converts or transforms resources (including human resources) into goods and services. Turns ideas into goods/services. - inventory management - quality control - production scheduling - follow-up services
S corporation
A unique government creation that looks like a corporation but is taxed like sole proprietorships and partnerships. Profits are taxed only as the personal income of the shareholder. Has shareholders, directors, and employees, plus the benefit of limited liability.
channel of distribution
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.
Entrepeneurship
Accepting the risk of starting and running a business.
place utility
Adding value to products by having them where people want them. - 7-Eleven is in convenient locations.
Time Utility
Adding value to products by making them available when they're needed. -grocery stores are open 24h
Information Utility
Adding value to products by opening two-way flows of information between marketing participants. - newspapers, libraries, and websites.
Operations Management for Services
All about enriching customer experience. ex: Hotels offer in-room Internet access and office support.
Stakeholders
All the people who stand to gain or lose by the policies and activities of a business and whose concerns the business needs to address.
NAFTA (North American Free Trade Agreement)
Allows open trade between the US, Mexico, and Canada. Made to boost growth in jobs, fight poverty, and close the wage gap (LARGELY FAILED)
fixed position layout
Allows workers to congregate around the product and can schedule work operations. (Like working on a house)
Hourly Wage
An amount of money paid each hour to compensate an employee for the amount of time he/she spends working.
compressed workweek
An employee works the full number of hours, but in fewer number of days
performance appraisal
An evaluation that measures employee performance against established standards in order to make decisions about promotions, compensation, training or termination. Must communicate standards clearly to employees and take corrective action. PURPOSE: to measure efficiency or effectivity of workers doing a certain job.
World Trade Organization (WTO)
An independent entity of 164 member nations whose purpose is to oversee cross-border trade issues and global business practices; headquartered in Geneva.
retailer
An intermediary who sells to consumers
Just-in-time (JIT)
An inventory-management approach in which supplies arrive just when needed for production or resale. A minimum of inventory is kept on premises in the meantime. MUST HAVE EXCELLENT COORDINATION W/ SUPPLIERS
General Partner
An owner (partner) who has unlimited liability and is active in managing the firm.
information technology
Any computer-based tool that people use to work with information & support the information-processing needs of an organization.
publicity
Any information about an individual, product, or organization that's distributed to the public through the media and that's not paid for or controlled by the seller. -free -reaches people who would not look at an ad. -may be more believable than advertising. CONS: it can be god or bad, it is not likely to run again, and no control over when media will release a story.
Fundamental Accounting Equation
Assets = Liabilities + Owner's Equity
3 main sections of balance sheet
Assets, Liabilities, and Shareholders' Equity
B2B Marketing v Consumer Marketing Strategies
B2B marketing is more a logical approach as these products are resold over and over. Business buyers have their own decision-making process. Consumer marketing is for personal consumption and a more emotional attachment and different decision-making process is used.
3 key financial statements of financial accounting
Balance Sheet, Income Statement, Statement of Cash Flows
Culture
Beliefs, customs, and traditions of a specific group of people.
Advantages of Issuing Bonds
Bondholders are creditors, not owners of the firm and can't vote on corporate matters. Bond interest is tax deductible. Bonds are a temporary source of funding and are eventually repaid. Bonds can be repaid before the maturity date if they contain a call provision.
disadvantages of issuing bonds
Bonds increase debt and can affect the market's perception of the firm. Paying interest on bonds is a legal obligation. If interest isn't paid, bondholders can take legal action. The face value of the bond must be repaid on the maturity date.
competitive environment
Businesses compete by exceeding customer expectations through great products with low prices and by restructuring and empowering employees with responsibility and authority
Diversification
Buying several different types of investments to spread the risk of investing. Investors decrease the chance of losing everything.
U.S Manufacturing competitors
China, Germany, South Korea, and India.
Vertical Merger (integration)
Combination of firms involved in different stages of 1 production/marketing process. (Automobile industry with Parts Industry)
Reasons for Growth of Home-Based Businesses
Computer technology, corporate downsizing, change in social attitudes, and new tax laws have loosened restrictions on deducting expenses for home offices.
specialty goods and services
Consumer products with unique characteristics and brand identity. Because these products are perceived as having no reasonable substitute, the consumer puts forth a special effort to purchase them. expensive wine, fine watches, designer, jewelery
The Emerging Mobile/On-Demand Marketing Era
Consumers want to interact anywhere, anytime in new ways that create value for them. Consumers expect personalized experiences. Consumers expect all interactions to be easy.
What do U.S businesses now demand from international suppliers?
Do not violate U.S human rights and environmental standards.
Possession Utility
Doing whatever is necessary to transfer ownership from one party to another, including providing credit, delivery, installation, guarantees, and follow-up service.
Low value of the dollar
Dollar is trading for less foreign currency; foreign goods are more expensive
High value of the dollar
Dollar is trading for more foreign currency; foreign goods are less expensive.
Value of U.S currency has generally trended in what direction?
Downward
Common markets/Economic unions
Eliminated all tariffs and other restrictions on internal trade, adopts set of common external tariffs and is a regional group of countries with a coordination f laws to facilitate exchange. (EU. ASEAN)
cash budget
Estimates cash inflows and outflows during a particular period like a month or quarter.
stock certificate
Evidence of stock ownership that specifies the name of the company, the number of shares it represents, and the type of stock being issued.
3D printing (additive manufacturing)
Experts say it will revolutionize the production of many types of products. Makes prototypes and molds.
Insourcing
Foreign companies opening offices and factories in the United States.
global environment
Globalization has grown due to efficient distribution systems and communication systems such as the Internet.
Economic and Legal Environment
Government can promote entrepreneurship by; 1. Allowing private ownership of businesses. 2. Minimizing interference with the free exchange of goods and services. 3. Passing laws that enable businesspeople to write enforceable contracts. 4. Establishing a currency that's tradable in world markets. 5. Minimizing corruption.
Export Assistance Centers (EACs)
Help SMALL and MEDIUM sized businesses with direct exporting by providing exporting assistance and trade-finance support.
Factors influencing managerial ethics
Individual (family/values) Organizational (firm's reward system) Environmental (social/cultural institutions/economic conditions)
venture capitalists
Individuals or companies that invest in new businesses in exchange for partial ownership of those businesses. They can be a source of capital for a small business.
What age of business are we in?
Information Age, where a significant portion of a company's value is based on its intellectual capital.
Disadvantages of a corporation
Initial cost Extensive paperwork DOUBLE TAXATION Two tax returns Size Difficulty of termination Possible conflict with stockholders and board of directors
bulls
Investors who believe stock prices are going to rise
Bears
Investors who expect stock prices to decline
an idea is a good opportunity if
It fills customers' needs. You have the skills and resources to start a business. You can sell the product or service at a reasonable price and still profit. You can get your product or service to customers before the window of opportunity closes. You can keep the business going.
relationship marketing
Keeping individual customers over time by offering them products that exactly meet their requirements. (more custom made goods)
Licensing
LEAST RISKY global strategy in which a firm (the licensor) allows a foreign company (the licensee) to produce its product in exchange for a fee (a royalty). - allows firm to benefit via gaining revenues it would not have otherwise generated. - spending little or no money to produce or market their products. (think Smash) Microsoft is the licensor to the licensee which is nintendo when putting steve from minecraft into smash bros. The licensee, Nintendo has to pay Microsoft a royalty fee for steve.
institutional investors
Large organizations - such as pension funds, mutual funds, and insurance companies - that invest their own funds or the funds of others.
Disadvantages of Franchising
Large start-up costs Shared profit Management regulation Coattail effects Restrictions on selling Fraudulent franchisors
Customer Relationship Management (CRM)
Learning as much as possible about customers and doing everything you can to satisfy or exceed their expectations.
Advantages of Corporations
Limited liability Ability to raise more money for investment Size Perpetual life Ease of ownership change Ease of attracting talented employees Separation of ownership from management
Advantages of LLC
Limited liability Choice of taxation Flexible ownership rules Flexible distribution of profits and losses Operating flexibility
PMI
Listing all the pluses for a solution in one column, all the minuses in another, and the implications in a third column.
advantages of franchises
Management and marketing assistance Personal ownership Nationally recognized name Financial advice and assistance Lower failure rate
advantages of partnerships
More financial resources Shared management and pooled/complementary skills and knowledge Longer survival No special taxes
disadvantages of LLCs
No stock, therefore ownership is nontransferable TOO MUCH PAPERWORK
marketing intermediaries
Organizations that assist in moving goods and services from producers to businesses (B2B) and from businesses to consumers (B2C). They're in the middle of a series of firms that distribute goods. Perform marketing tasks cheaper and faster (transporting, selling, storing, and relationship building. By doing this they add value which exceeds cost.
Cash flow forecast
Predicts the cash inflows and outflows in future periods, usually months or quarters.
word of mouth
People tell others about products they have purchased. - entertainers, banners, attention-getting devices, clever commercials, testimonials are effective.
mass production
Process of making large quantities of a product quickly and cheaply
Marketing Mix (4 P's)
Product, Price, Place, Promotion
dealer (private-label) brands
Products that don't carry the manufacturer's name but carry a distributor or retailer's name instead. Kerklin made Costco
convenience goods and services
Products that the consumer wants to purchase frequently and with a minimum of effort. candy snacks and milk
industrial goods
Products used in the production of other products. Sometimes called business goods or B2B goods.
Age Discrimination in Employment Act (ADEA)
Protects workers 40 and over from employment and workplace discrimination in hiring, firing, promotion, layoff, compensation, benefits, job assignments and training.
Product Placement
Putting products into TV shows and movies where they will be seen
global advertising
Requires marketers to develop a single product and promotional strategy to implement worldwide. Problems can arise in global markets with using one advertising campaign in all countries-especially bad translations.
1972 Equal Employment Opportunity Act
Right to issue workplace guidelines for acceptable employer conduct. Enforces affirmative actions to right past wrongs and mandates specific recordkeeping procedures. Strengthened EEOC.
warehouse club
Sells food and general merchandise in facilities that are usually larger than supermarkets and offer discount prices; membership may be required (Costco)
convenience store
Sells food and other often-needed items at convenient locations; may stay open all night (7-Eleven)
budget
Sets forth management's expectations for revenues and allocates the use of specific resources throughout the firm. - depends heavily on the balance sheet, income statement, statement of cash flows, and short-term/long-term financial forecasts.
high-low pricing strategy
Setting prices that are higher than EDLP stores, but having many special sales where the prices are lower than competitors'.
fringe benefits
Sick leave, vacation pay, pension and health plans that provide additional compensation to employees beyond base wages. Over 30% of payroll cost.
service industry
Since the mid-1980s, it has generated almost all the increases in employment
Objectives
Specific, short-term statements detailing how to achieve the organization's goals.
Generally Accepted Accounting Principles (GAAP)**
Standard framework of guidelines for financial accounting used in any given jurisdiction; aka Accounting Standards followed.
preferred stock
Stock that gives its owners preference in the payment of dividends and an earlier claim on assets than common stockholders if the company is forced out of business and its assets sold. Do NOT have voting rights. -callable -convertible -cumulative
Goals
The broad, long-term accomplishments an organization wishes to attain. Set during planning process.
promotion mix
The combination of promotional tools an organization uses. Advertising, personal selling, sales promotion, and public relations which surround a product.
Initial Public Offering (IPO)
The first public offering of a corporation's stock.
Public Relations
The management function that evaluates public attitudes, changes policies and procedures in response to the public's requests, and executes a program of action and information to earn public understanding and acceptance. -listen to public -change policies and procedures -inform people you are responsive to their needs.
materials handling
The movement of goods within a warehouse, from warehouses to the factory floor, and from the factory floor to various workstations.
unlimited liability
The owner is personally and fully responsible for all losses and debts of the business. This is a major drawback of sole proprietorship as all debts/losses must be paid off even if it means selling anything you own.
capital gains
The positive difference between the purchase price of a stock and its sale price.
Investment Risk
The possibility that an investment will fail to pay the expected return or fail to pay a return at all
management
The process of accomplishing the goals of an organization through planning, organizing, leading, and controlling.
Supply Chain Management
The process of managing the movement of raw materials, parts, work in progress, finished goods, and related information through all the organizations involved in the supply chain; managing the return of such goods, if necessary; and recycling materials when appropriate.
management development
The process of training and educating employees to become good managers and then monitoring the progress of their managerial skills over time. Training includes: - on-the-job coaching - understudy positions - off the job courses
sales promotion
The promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities.
Why is it unlikely that there will be a single set of international rules governing multinational companies soon?
The widespread disparity among global nations as to what constitutes ethical behavior.
Pipeline Transportation
This method of transportation is usually owned by the company that uses them. The commonly transport oil and natural gas.
Supervisory Management
Those directly responsible for supervising workers and evaluating daily performance.
operating budget
Ties together all the firm's other budgets and summarizes its proposed financial activities.
job sharing
Two or more part-time employees sharing one full-time job.
Foreign Corrupt Practices Act
U.S. law regulating behavior regarding the conduct of international business in the taking of bribes and other unethical actions.
computer-integrated manufacturing (CIM)
Uniting of computer-aided design with computer-aided manufacturing. It is expensive, however, it reduces the time.
Trade Deficit (Unfavorable)
When the value of a country's exports is less than that of its imports.
flextime plans
Work schedule that gives employees some freedom to choose when to work, as long as they work the required number of hours. Core time is the period when all employees are expected to be at their job stations.
promissory note
a agreement with a promise to pay a supplier a specifc sum of money at a definite time./
capital budget
a budget that highlights a firm's spending plans for major asset purchases that often require large sums of money
Sole Proprietorship
a business owned, and usually managed by one person
Corporate Social Responsibility (CSR)
a business's concern for society's welfare
ISO 14001
a collection of the best practices for managing an organization's impact on the environment
foreign subsidiary
a company owned in a foreign country by another company, called the parent company. This is an example of an FDI. parent company has full control over its tech or expertise. primary disadvantage is that it must commit fund/tech within foreign boundaries.
Countertrading
a complex form of bartering in which several countries may be involved, each trading goods for goods or services for services
bond
a corporate certificate indicating that a person has lent money to a firm (or a government)
absolute advantage
a country has a monopoly on producing a specific product or is able to produce it more efficiently than all other countries.
comparative advantage
a country should sell to other countries those products it produced most efficiently and buy from other countries those products that it cannot produce as effectively or efficiently.
corporate distribution system
a distribution system in which all of the organizations in the channel of distribution are OWNED by one firm
contractual distribution system
a distribution system in which members are bound to cooperate through contractual agreements. - franchise systems - wholesale-sponsored chains - retail cooperatives
administered distribution system
a distribution system in which producers MANAGE all of the marketing functions at the retail level
salary
a fixed regular payment, typically paid on a monthly or biweekly basis but often expressed as an annual sum, made by an employer to an employee, especially a professional or white-collar worker.
social commerce
a form of electronic commerce that involves using social media, online media that supports social interaction, and user contributions to assist in the online buying and selling of products and services
informercial
a full-length TV program devoted exclusively to promoting a good or service.
product line
a group of products that are physically similar or intended for a similar market. (Coke, Diet Coke, Coke Zero, Cherry Coke)
Crowdfunding
a large group of individuals provide donations in support of a company or product.
Corporation
a legal entity with authority to act and have liability separate from its owners.
Partnership
a legal form of business with two or more owners
import quota
a limit on the number of products in certain categories that a nation can import
Exporting
a little more risk than licensing.
compensation
a main tool companies use to attract qualified employees, and one of their largest operating costs.
brand manager
a manager who has direct responsibility for one brand or one product line; called a product manager in some firms. Handles all the elements of a brand's marketing mix.
wholesaler
a marketing intermediary that sells to other organizations. Normally make B2B sales, but also have some retail functions.
brand
a name, term, symbol, design, or combination thereof that identifies a seller's products and differentiates them from competitors' products. It makes them attractive
over the counter market
a network of dealers who buy and sell the stocks of corporations that are not listed on a securities exchange
entrepreneuer
a person who risks time and money to start and manage a business.
SWOT analysis
a planning tool used to analyze an organization's strengths & weaknesses (internal) ... opportunities, and threats
product screening
a process designed to reduce the number of new-product ideas being worked on at any one time. Testing its fit, potential profitability
financial control
a process in which a firm periodically compares its actual revenues, costs, and expenses with its budget, Identifies variances to the financial plan and makes moves to take corrective action.
continuous process
a production process in which LONG production runs turn out finished goods over time (paper production)
Small Business Investment Company (SBIC)
a program through which private investment companies licensed by the SBA lend money to small businesses
Outsourcing
a response to variety of stakeholders: contracting with other companies in other countries to do some functions of a firm.
business analysis
a review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company's objectives
gig economy
a single project/task for which a worker is hired to work on demand.
Conventional (C) Corporation
a state-chartered legal entity with authority to act and have liability separate from its owners. Enables many people to share in ownership.
Trial Balance
a summary of all the financial data in the account ledgers that ensures the figures are correct and balanced
social audit
a systematic evaluation of an organization's progress toward implementing socially responsible and responsive programs. Activities should measure workplace issues, the environment, product safety, community relations, military weapons contracting, international operations, and human rights, and respect for the rights of local people.
Integrated Marketing Communications
a technique that combines all the promotional tools into one comprehensive, unified promotional strategy. It is used to create a positive brand image/meet the needs of consumers
brand name
a word, letter, or group of words or letters that differentiates one seller's goods and services from those of competitors
partnership agreement
a written agreement among all owners that lists all owners' responsibilities
annual report
a yearly statement of the financial condition, progress, and expectations of an organization
conceptual skills
ability to picture the organization as a whole and the relationship among its various parts
service utility
adding value by providing fast, friendly service during and after the sale and by teaching customers how to best use products over time
newspaper
advantage: good coverage of local markets and high consumer acceptance disadvantage: poor color and short life span
television
advantage: reaches all audiences and uses sight and sound. disadvantage: high cost, have to compete with on-demand services/media as you can't skip ads on TV.
online advertising
advertising that appears while consumers are browsing online, including display ads, search-related ads, online classifieds, and other forms
General Agreement on Tariffs and Trade (GATT)
agreement that established an international forum for negotiating mutual reductions in trade restrictions.
total fixed cost
all the expenses that remain the same no matter how many products are made or sold
Consumer Market
all the individuals and households that buy goods/ services for PERSONAL CONSUMPTION
business-to-business market (B2B)
all the individuals and organizations that want goods and services to use in producing other goods and services or to sell. rent, or supply goods to others. B2B marketers - manufacturers - retailers - schools, nonprofit - government
promotion
all the techniques sellers use to inform people about and motivate them to buy their products or services. -advertisements -public relations -word of mouth -sales promotions
promotion
all the techniques sellers use to motivate people to buy their products or services.
Organizing
allocating resources, assigning tasks, and establishing procedures for accomplishing goals.
convertible bonds
allow bondholders to convert their bonds into shares of common stock
blogging
allows companies to interact with consumers and can attract new customers.
profit
amount of money a business earns above and beyond what it spends for salaries and other expenses.
Service Corps of Retired Executives (SCORE)
an SBA office with volunteers from industry, trade associations, and education who counsel small businesses at no cost (except for expenses)
cafeteria-style benefits
an approach to employee benefits that gives all employees a set dollar amount that they must spend on company benefits, allocated however they wish within broad limitations
Leveraged Buyout (LBO)
an attempt by employees, management, or a group of investors to purchase an organization primarily through borrowing
Ethnocentricity
an attitude that your own culture is superior to other cultures
Sources of Help for Small Businesses
an experienced lawyer can help with leases, contracts, partnership agreements, and protection against liabilities. Independent marketing research study may help.
Whistleblower
an insider who reports illegal or unethical behavior.
Embargo
an official ban on trade or other commercial activity with a particular country. Occur due to political disagreements.
nonprofit organization
an organization whose goals do not include making a personal profit for its owners or organizers. They use financial gains to meet social or educational goals.
stock exchange
an organization whose members can buy and sell securities on behalf of companies and individual investors
Mission Statement
an outline of the fundamental purposes of an organization. Includes its philosophy, its long-term survival needs, and its social responsibility
limited partner
an owner who invests money in the business but does not have any management responsibility or liability for losses beyond the investment
insider trading
an unethical activity in which insiders use private company information to further their own fortunes or those of their family and friends
Marketing Research
analysis of markets to determine OPPORTUNITIES and CHALLENGES to find info needed to make good decisions. Critical to understand consumer wants and needs. - used to identify products consumers have used in the past and what they want in the future.
Key Benefits of Marketing Research
analyze: -customer needs and satisfaction -current markets and opportunities -the effectiveness of marketing strategies -marketing process and tactics currently used -reasons for goal achievement or failure
business
any activity that seeks to provide goods and services to others while operating at a profit.
product
any physical good, service, or idea that satisfies a want or need plus anything that would enhance the product in the eyes of the consumers.
Proponents of CSR
argue that businesses owe their existence to the societies they serve and cannot exist in societies that fail. Also argue that it is good for business as it boosts its reputation which is typically viewed in a negative way.
companies with good ethical reputations
attract & retain better employees, draw more customers, and enjoy greater customer loyalty.
Universal Product Code (UPC)
bar code printed on a label that has information about the item to which it is attached
Gantt Chart
bar graph showing production managers what projects are being worked on and what stage they are in at any given time
secured bonds
bonds that are backed by specific collateral like land/equipment that must be forfeited in the event that the issuing firm defaults
Robotics
brings great precision and 24/7 manufacturing.
Importing
buying products from another country
Online Franchising
can help deliver increasing value to customers and increase sales quickly.
Home-Based Work benefits for employers
can limit absences, increase productivity, and save money.
cash flows from operating activities
cash inflows and outflows directly related to earnings from normal operations
cash flows from financing activities
cash inflows and outflows related to external sources of financing (owners and creditors) for the enterprise. Raising and returning capital from institutional sources.
cash flows from investing activities
cash inflows and outflows related to the acquisition or sale of productive facilities and investments in the securities of other companies
CPA
certified public accountant
Form Utility
changing raw materials into usable goods. baking a cake
high quality of life is determined by
combined efforts of businesses, nonprofits, and government agencies.
human relations skills
communication and motivation; they enable managers to work through and with people.
storage
companies must ha e goods available in various parts of the country ready to be shipped locally when ordered.
packaging
companies often use packaging to change and improve their basic product. Can make product more attractive to retailers. squeezable ketchup products
Tech in Accounting
computerized accounting programs post info instantly and from remote locations. - QuickBooks for ex, address the specific needs of small businesses.
quality
consistently producing what the customer wants while reducing errors before and after delivery to the customer. Measuring quality control throughout reduces the need for quality control at the end.
Proportions of Business Ownership
corporations make up 20% of businesses but make 81% of total receipts. Sole proprietorships are the most common form and easiest to start but they earn only 6% of receipts.
variable costs
costs that change as output or level of production changes
Global trade enables
countries to produce what they make best and buy what they need from others.
Dodd-Frank Wall Street Reform Act
created a new consumer watchdog to prevent mortgage companies and payday lenders from exploiting consumers
Sarbanes-Oxley Act
created new govt. reporting standards for publicly traded companies and the Public Company Accounting Oversight Board (PCAOB). - prohibits accounting firms from providing non-audit work like consulting to companies they audit.
leading
creating a vision for the organization and communicating, guiding, training, and motivating others to achieve goals.
floating exchange rate
currencies float in value depending on the supply and demand for them in the global market. Creates transaction risk.
3 parts of marketing concept
customer orientation, service orientation, profit orientation
external customers
dealers, who buy products to sell to others, and ultimate customers (or end users), who buy products for their own personal use
unsecured bonds
debentures, or bonds that are not backed by specific collateral
Sources of Funds
debt financing and equity financing
Liabilities
debts of the business. Amounts owed to creditors such as banks and employees. Current and non-current.
integrity-based ethics codes
define the organization's guiding values, create an environment that supports ethically sound behavior, and stress a shared accountability among employees.
Terminating Employees
employers are hesitant to hire full-time workers due to the cost of termination. There are also many laws preventing termination for certain acts.
Human Resource Challenge
demographic changes are creating a challenging environment for HR managers, requiring companies to come up with creative ways to attract, develop, and retain employees.
production management
describes all the activities managers do to help firms create goods.
demand-based pricing/target costing
designing a product so that it satisfies customers and meets the profit margins desired by the firm
flexible manufacturing
designing machines to do multiple tasks so that they can produce a variety of products.
one-to-one marketing
developing a unique mix of goods and services for each individual customer
mass marketing
developing products and promotions to please large groups of people. (uses little market segmentation)
#1 medium for advertising
digital media
corporate social initiatives
dimension of social responsibility that includes enhanced forms of corporate philanthropy that are more directly related to the company's competencies
B2B sales promotion
displays, trade shows, exhibitions, event sponsorships and contests.
demographic segmentation
dividing the market by age, income, and education level
geographic segmentation
dividing the market by cities, states, counties, or regions.
benefit segmentation
dividing the market by determining which benefits of the product to talk about
Volume
dividing the market by usage (volume of use)
Psychographic segmentation
dividing the market using groups' values, attitudes, and interests
Market Segmentation
dividing the total market into groups whose members have similar characteristics
Vestibule Training (Near-the-job Training)
done in classrooms with equipment similar to that used on the job so that employees learn proper methods and safety procedures before assuming a specific job assignment
Effect of War and Terrorism
drained trillions from U.S economy, money diverted to the war effort, and adds to cost of insurance/security.
Advantages of Sole Proprietorship
ease of starting up and ending the business, being your own boss, pride of ownership, leaving a legacy, retention of company profits, no special taxes.
Owners affect managers by
electing a board of directors. The board hires top officers and fires them if necessary. The officers then select managers and employees with the help of the human resource department.
Micropreneurs
entrepreneurs willing to accept the risk of starting and managing the type of business that remains small, lets them do the kind of work they want to do, and offers them a balanced lifestyle. More than half of U.S. micropreneurs are home based.
Technological Environment
everything from phones to computers and the various software programs that make business processes more effective, efficient, and productive.
total product offer
everything that consumers evaluate when deciding whether to buy something; also called a value package. Marketers must think like and talk to consumers to find out what's important. Can be service, reputation, packaging, convenience, guarantee.
Most common source of funding
family and business associates
Niche Marketing
finding small but profitable market segments and designing or finding products for them
knowledge management
finding the right information, keeping the information in a readily accessible place, and making the information known to everyone in the firm
look at figure
for industrial
Size and diversity of markets
forces marketers to decide which groups they want to serve.
Purchasing (operations management planning)
function in a firm that searches for quality material resources, finds the best suppliers, and negotiates the best price for goods/services.
operating funds
funds needed to keep the doors to the firm open and in business
debt financing
funds raised through various forms of borrowing that must be repaid
Telecommuting
future of facility locations: working from home via computer and modem. Reduced need for being located near sources of labor, so companies can move to less expensive areas.
Agents
generally maintain long-term relationships with the clients they represent.
Empowerment
giving employees the authority to correct a problem without first checking with management
enabling
giving workers the education and tools they need to make decisions
Sovereign Wealth Funds (SWFs)
government owned investment funds holding large stakes in foreign companies
Trains
great for large shipments
Bundling
grouping two or more products together and pricing them as a unit. financial institutions bundle advice with purchases
distributed product development
handing off various parts of your innovation process- often to companies in other countries
primary market
handle the sale of new securities
secondary market
handle the trading of securities between investors with the proceeds of the sale going to the seller
what made large-scale farming successful?
harvester and cotton gin (led to fewer farmers and large farms)
pull strategy
heavy advertising and sales promotion efforts are directed toward consumers so that they'll request the products from retailers
Export Trading Companies
help companies with INDIRECT exporting by negotiating and establishing trading relationships.
top management
highest level, consisting of the president and other key company executives who develop strategic plans.
Staffing
hiring, motivating, and retaining the best people available to accomplish the company's objectives
brand awareness
how quickly or easily a given brand name comes to mind when a product category is mentioned. Consumers reach a point of brand reference when they prefer one brand over another.
knockoff brands
illegal copies of national brand-name goods
Protective Tariff
import taxes
online retail sales
in U.S reached over $365 Billion or approximately 12% of all retail sales.
critical path
in a PERT network, the sequence of tasks that takes the longest time to complete
unethical behavior
in the office: violate safety stands/goof off personal: most people do not volunteer. at school: plagiarize from the internet.
middle management
includes general managers, division managers, and branch and plant managers who are responsible for tactical planning and controlling.
e-mail promotion
increase brand awareness. Update
merchant wholesalers
independently owned firms that take title to the goods they handle. 2 types: limited-function and full service.
internal customers
individuals and units within the firm that receive services from other individuals or units
primary data
information YOU collected for the specific purpose at hand
Packaging responsibilities
information on packages regulated by the fair packaging and labeling act by Food and Drug Administration
secondary data
information that already exists somewhere, having been collected for another purpose. Incurs no expense and is easily accessible (should be the first data you look for)
Accounting System Components**
inputs such as accounting documents, processing in journals, and outputs such as balance sheets, income statements, and cash flow statements.
services
intangible products - education, health care, insurance, recreation
Product Life Cycle
introduction, growth, maturity, decline. Different stages have different marketing strategies
Consumer Behavior
investigating consumer thought processes at each stage of a purchase to determine the best way to help the consumer.
5 criteria
investment risk, yield, duration, liquidity, and tax consequences.
reverse logistics
involves bringing goods back to the manufacturer because of defects or for recycling materials
inbound logistics
involves bringing raw materials, packaging, other goods and services, and information from suppliers to producers
outbound logistics
involves managing the flow of finished products and information to business buyers and ultimate consumers
Water Transportation
is inexpensive but slow
How much more expensive is the cost of acquiring a new customer compared to the cost of retaining one?
it is 5 times more expensive to acquire a new customer.
Industrialization in 19th and 20th century led to
jobs moving from farms to factories
Free-rein leadership
leadership style that involves managers setting objectives and employees being relatively free to do whatever it takes to accomplish those objectives. Most successful when supervising professionals.
Physical and Environmental Forces
limited transportation and storage systems that make international distribution difficult. (common in developing countries)
Community Development Financial Institutions (CDFIs)
loan $ and provide counseling, especially for lower-income communities.
Devaluation
lowering the value of a nation's currency relative to other currencies
autocratic leadership
making managerial decisions without consulting others. MOST effective in times of emergency or with new, unskilled workers.
qualifying
making sure that people have a need for the product, the authority to buy, and the willingness to listen to a sales message
taking a firm private
management or a group of stockholders obtain all the firm's stock for themselves
participative (democratic) leadership
managers and employees work together to make decisions. Usually increases job satisfaction.
changes in management today
managers are more facilitators than bosses and ten to emphasize team-building.
common channel for food items such as produce
manufacturer, broker, wholesaler, retailer
viral marketing
marketing activities that aim to increase brand awareness or sales by consumers passing a message along to other consumers
Target Market
marketing directed toward those groups and organization decides it can serve profitably.
agents and brokers
marketing intermediaries who bring buyers and sellers together and assist in negotiating an exchange but don't take title to the goods. (type of intermediary) - A real estate agent
equity financing
money raised from within the firm, from operations or through the sale of ownership in the firm (stock or venture capital)
time value
money today is worth more than money in the future.
Controlling
monitoring performance, comparing it with goals, and taking corrective action as needed
vision
more than a goal; an encompassing explanation of why the organization exists and where it's trying to go. Set during the planning process and gives business a set of values and a sense of purpose.
New Product Development
most products that are new will fail. There is a lot of new product potential: 3D printing, streaming TV, virtual reality (VR)
international accounting issues
multinational companies must adapt their accounting reporting to other country standards.
ethical dilemma
must choose between two unsatisfactory alternatives.
social environment
must manage diversity by being inclusive in the workplace and keeping up with social issues.
Financial Management
must pay company's bills and collecting payments. their functions are critical to small and medium-sized business. Must stay abreast of changes or opportunities in finances such as changes in tax law. - must be aware of market predictability, interest rates, cyberthreats, regulations, volatility of the dollar.
Net Income
net earnings/profit "bottom" line.
gains
net money inflows from transactions that are not part of normal operations.
Losses
net money outflows from transactions that are not part of normal operations.
why develop women and minorities as managers?
new talent, helps attract women and minority customers, and gives companies that develop them an advantage.
Legal Forces
no global system of laws and can be inconsistent. Organization for Economic Cooperation and Development and Transparency International fight to end corruption and bribery in foreign markets and have had limited success.
generic goods
nonbranded products that usually sell at a sizable discount compared to national or private-label brands
New Product Failures
occur because they do not deliver what is promsied/expected
Off-the-job training
occurs away from the workplace and consists of programs to develop a variety of skills or to foster personal development
online trading services
offer securities trading services online to buy and sell stocks and bonds.
acquisition
one company's purchase of the property and obligations of another company.
Why become an entrepreneur?
opportunity, profit, independence, challenge.
What makes it difficult to recruit qualified employees?
organizational policies such as low wages and union regulations.
Title VII of the Civil Rights Act of 1964
outlawed discrimination in hiring, firing, compensation, apprenticeships, training, terms, conditions, or privileges based on race, color, religion, sex, or national origin. Directly brought the federal government into human resource management. Created the Equal Employment Opportunity Commission (EEOC)
Global Trade in Small Businesses
overseas buyers enjoy working with individuals, shipping is faster, and give more personal advice. However, many small businesses avoid it due to difficult financing and loads of bureaucratic paperwork.
Stockholders
owners of a firm who never have to be repaid of their investment. Have the right to vote for a company's board of directors. Issuing new shares of stock can alter control of the firm.
Shareholders' Equity
owners' claim on the net assets of the business. Consists primarily of contributed capital and retained earnings.
Advertising
paid non personal communication about an organization and its products transmitted to a target audience through mass media
Dividends
part of a firm's profits that the firm MAY distribute to stockholders as either cash payments or additional shares of stock. (not required to distribute)
General Partnership
partnership in which partners share equally in both responsibility and liability
limited ownership
partnership with one or more general partners and one or more limited partners.
market
people with unsatisfied wants and needs who have both resources and willingness to buy. Small businesses must set out to fill the market's needs by offering top quality and great service at a fair price.
Intermediaries/middlemen
perform the critical step of getting a product to consumers at a place and a time.
callable bonds
permit bond issuers to pay off the principal before the maturity date
Four Functions of Management
planning, organizing, leading, controlling
contingency planning
preparing alternative courses of action that may be used if the primary plans don't achieve the organization's objectives
psychological pricing
pricing goods and services at price points that make the product appear less expensive than it is
Angel Investors
private individuals who invest their own money in potentially hot new companies before they go public.
environmental scanning
process of identifying the factors affecting marketing success. can be: global factors tech factors sociocultural factors competitive factors economic factors
nonprice competition
producers use factors other than low price to try to convince customers to buy their products. - comfort - style, appearance
unsought goods and services
products that consumers are unaware of, haven't necessarily thought of buying, or find that they need to solve an unexpected problem. car-towing, burial services, insurance
U.S. Equal Employment Opportunity Commission (EEOC)
prohibits laws discriminating against age, disability, genetic info, national origin, race, pregnancy, religion, and sex.
buying stock on margin
purchasing stocks by borrowing some of the purchase cost from the brokerage firm. Margin is the portion of the stock's purchase price that the investor must pay with their own money. If a broker issues a margin call, the investor has to come up with money to cover losses.
intensive distribution
puts products into as many retail outlets as possible. Can be very expensive but more exposure.
Americans with Disabilities Act of 1990 (ADA)
requires employers to give applicants with physical or mental disabilities the same consideration for employment as people without disabilities. Employers are required to make accommodations for disabled workers.
Prospecting
researching potential buyers and choosing those most likely to buy
Assets
resources owned or controlled by the corporation that will provide a future benefit. Current and non-current.
wholesale sales
sales of goods and services to other businesses for use in the business or resale
online retailing
selling goods and services to ultimate customers over the internet. Online stores sometimes suffer lack of inventory and poor customer service.
Dumping
selling products in a foreign country at lower prices than those charged in the producing country. (prohibited in U.S)
Exporting
selling products to another country
direct selling
selling to consumers in their homes or where they work
category killer
sells a huge variety of one type of product to dominate that category of goods (bass pro)
specialty store
sells a wide selection of goods in one category (jewelry stores/ bicycle stores)
department store
sells a wide variety of products in separate departments
outlet store
sells general merchandise directly from the manufacturer at a discount; items may be discontinued or have flaws (nordstrom rack)
discount store
sells many different products at prices generally below those of department stores
supermarket
sells mostly food with other nonfood products such as detergent and paper products
selective distribution
sends products to only a preferred group of retailers in an area
exclusive disribution
sends products to only one retail outlet in a given geographic area. (super high quality products that people are willing to go to one place to buy that)
cash-and-carry wholesalers (limited-function)
serve mostly smaller retailers with a limited assortment of products
Planning
setting goals and deciding how to achieve them. Helps managers understand the environment in which their businesses must operate.
everyday low pricing (EDLP)
setting prices lower than competitors and then not having any special sales
process layout
similar equipment and functions are grouped together. Frequently used in operations that serve different customers' different needs.
65% of nation's new jobs are in
small businesses. The first job for American most likely small business.
The forces that affect trading in global markets.
sociocultural forces, economic and financial forces, legal and regulatory forces, and physical and environmental forces
investment bankers
specialists who assist in the issue and sale of new securities. Intermediaries that take a fraction of the transaction that they do.
Ethics
standards of moral behavior; that is, behavior accepted by society as right versus wrong.
Statement of Cash Flows
start with beginning balance of cash, then followed by 3 sections.
skimming price strategy
strategy in which a new product is priced high to make optimum profit while there's little competition
penetration strategy
strategy in which a product is priced low to attract many customers and discourage competition
Radio Frequency Identification (RFID)
tags keep track of goods.
mass customization
tailoring products to meet the needs of individual customers.
Generating new product ideas
takes about seven ideas to generate one commercial product. Employees/Research/Suppliers offer new ideas.
production process
taking the 5 factors of production, inputting them through planning, routing, scheduling, and dispatching to create goods, services, and ideas.
goods
tangible products such as computers, food, clothing, cars, and appliances.
revenue tariff
tax on imports used primarily to raise government revenue without restricting imports
tarrifs
taxes imposed on imports.
Liquidity
the ease with which an asset can be converted into cash
modular/cellular layout
teams of workers combine to produce more complex units of the final product. Can accommodate changes in design or customer demand.
countries with abundant natural resources need
technological resources from other countries
concept testing
testing new product concepts with a group of target consumers to find out if the concepts have strong consumer appeal
test marketing
testing products among potential users
assembly process
that part of the production process that puts together components
technical skills
the ability to perform tasks in a specific discipline or department
Marketing
the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. Mutually beneficial exchange between buyers and sellers.
What led economic development in the 1800's?
the agricultural industry led economic development
standard of living
the amount of goods and services people can buy with the money they have. The U.S has one of the highest standards of living in the world.
Productivity
the amount of output you generate given the amount of input
yield
the annual rate of return on a bond if the bond were held to maturity
Form 10-K
the annual report that publicly traded companies must file with the SEC
manufacturer's brand
the brand name of a manufacturer that distributes products nationally
e-commerce
the buying and selling of goods over the internet. Enables B2B and B2C commerce.
risk
the chance an entrepreneur takes of losing time and money on a business that may not prove profitable.
product mix
the combination of product lines offered by a manufacturer.
ISO 9001
the common name given to quality management and assurance standards
production
the creation of finished goods and services using the five factors of production.
product differentiation
the creation of real or perceived product differences. Marketers use mix of branding, pricing, advertising, and packaging to create different images.
brand loyalty
the degree to which customers are satisfied, like the brand, and are committed to further purchases.
balance of payments
the difference between the flow of money into (exports) and out of a country (imports) plus money flows from other factors such as tourism, foreign aid, military expenditures, and foreign investments.
corporate philanthropy
the dimension of social responsibility that includes charitable donations
corporate responsibility
the dimension of social responsibility that includes everything from hiring minority workers to making safe products. Responsibility to investors includes preventing unethical behavior which causes financial damage to a company and investors are cheated. Responsibility to employees is to treat them with respect and offer salaries, mobility, and benefits that enables them to reach their personal goals.
corporate policy
the dimension of social responsibility that involves the position/stance a firm takes on social/political issues.
personal selling
the face-to-face presentation and promotion of goods and services. Salespeople need to listen to customer needs, help reach a solution, and do everything possible to make the transaction as simple as possible.
Securities and Exchange Commission (SEC)
the federal agency that has responsibility for regulating the various stock exchanges. Created in 1934 through the Securities and Exchange Act. Established guidelines to prevent insider trading.
Quality of Life
the general well-being of a society in terms of its political freedom, natural environment, education, leisure amount, safety, and rewards that add to the satisfaction and joy that other goods and services provide.
Auditing
the job of reviewing and evaluating the information used to prepare a company's financial statements. Examine the operational effectiveness and efficiency of a business as well
conglomerate
the joining of firms in completely unrelated industries.
Horizontal Merger
the joining of two firms in the same industry. Mergers between competitors must prove to the Federal Trade Commission that the new combined company does not limit competition unfairly.
limited liability
the liability of a firm's owners for no more than the capital they have invested in the firm
brand association
the linking of a brand to other favorable images
Logistics
the marketing activity that involves planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit.
securities markets
the marketplace in which stocks, bonds, and other financial instruments are traded. 2 primary functions: Assist businesses in finding long term funding to finance capital needs. Provides private investors a place to buy and sell.
tax accounting*
the means by which management determines the amount of taxes that a company owes, how to legally reduce those taxes, and analyzes the impact of business decisions on taxes.
Financial Accounting*
the means by which management provides information that assist EXTERNAL parties in making decisions about the company.
Managerial Accounting*
the means by which management provides information that assist INTERNAL parties in making decisions about the company.
common stock
the most basic form of ownership, including voting rights and the right to share
free trade
the movement of goods and services among nations without political or economic barriers.
climate change
the movement of the temperature of the planet up or down over time
facility layout
the physical arrangement of resources (including people) in the production process. For service, best layout for helping customers finding products. For manufacturing, improving efficiency.
trade credit
the practice of buying goods and services now and paying for them later
Transparency
the presentation of a company's facts and figures in a way that is clear and apparent to all stakeholders
Human Resource Management
the process of determining the needs of the organization and then recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals.
Strategic Planning
the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities
tactical planning
the process of developing detailed, short-term statements about what is to be done, who is to do it, and how it is to be done
Selection
the process of gathering information and deciding who should be hired, under legal guidelines for the best interests of the individuals and the organization.
facility location
the process of selecting a geographic location for a company's operations. Must be a site that makes it easy for consumers to use the company's services and communicate their needs. (A planning issue of operations management) Must take into account the availability of qualified workers, access to transportation, suppliers, and customers.
operational planning
the process of setting work standards and schedules necessary to implement the company's tactical objectives
break-even analysis
the process used to determine profitability at various levels of sales
push strategy
the producer uses advertising, personal selling, sales promotion, and all other promotional tools to convince wholesalers and retailers to stock and sell merchandise
lean manufacturing
the production of goods using less of everything compared to mass production. Takes less space, less human effort, less investment in tools, and less engineering time.
intermittent process
the production run is SHORT and the machines are changed frequently to make different products. (cookie batch production)
telemarketing
the sale of goods and services by telephone. Used by companies to supplement/replace in-store selling and complement online selling.
retail sales
the sales of durable and nondurable goods bought by consumers
nonstore retailing
the selling of products outside the confines of a retail facility. Vending machines, kiosks, carts, and pop-ups.
Supply Chains
the sequence of linked activities that must be performed by various organizations to move goods from the sources of raw materials to ultimate consumers
price leadership
the strategy by which one or more dominant firms set the pricing practices that all competitors in an industry follow
Greening
the trend toward saving energy and producing products that cause less harm to the environment
computer-aided design (CAD)
the use of computers in the design of products
computer-aided manufacturing (CAM)
the use of computers in the manufacturing of products
job simulation
the use of equipment that duplicates job conditions and tasks so trainees can learn skills before attempting them on the job
trade protectionism
the use of government regulations to limit the import of goods and services. Allows domestic producers to survive, grow, and produce jobs.
third party logistics
the use of outside firms to help move goods from here to there
exchange rate
the value of a currency in one country relative to the currencies of other countries
brand equity
the value of the brand name and its associated symbols
Form Utility
the value producers add to materials in the creation of finished goods and services. ex: Bakers add form utility to materials by transforming ingredients like milk and flour into a cake.
Many businesses demand socially responsible behavior from
their international suppliers
brand insistence
they will not accept substitute brands
shopping goods and services
those products that the consumer buys only after comparing value, quality, price, and style from a variety of sellers. target, wireless carriers
underemployed workers
those with part-time jobs who want full time jobs or those who have more skills than their current job requires.
downsized its workforce
to make a company or organization smaller by reducing the number of workers
revenue
total amount of money a business takes in during a given period by selling goods and services.
balance of trade
total value of a nation's exports compared to its imports over a particular period.
United States-Mexico-Canada Agreement (USMCA)
trade treaty among the United States, Canada, and Mexico to lower and eliminate tariffs among the three countries. Made to replace NAFTA.
Motor vehicles
trucks and cars most commonly used transport system
Reasons Business Fail FINANCIALLY
undercapitalization poor control over a cash flow inadequate expense control
Disadvantages of partnerships
unlimited liability, division of profits, disagreements among partners, difficulty of termination
Disadvantages of Sole Proprietorships
unlimited liability, limited financial resources, management difficulties, overwhelming time commitment, few fringe benefits, limited growth, limited life span
Best segmentation strategy
use all the variables to come up with a consumer profile that represents a sizable, reachable, and profitable target market
Major Uses of Performance Appraisal
use as a promotion tool, recognize worker's achievements, and evaluate the firm's orientation process/hiring process.
multilevel marketing
uses salespeople who work as independent contractors
Brokers
usually represent clients on a temporary basis
piecework system
wage based on the number of items produced rather than by the hour or day. Promoted productivity as more productivity results in more $.
loss
when a business's expenses are more than its revenues.
merger
when two or more companies join to form a single firm
drop shippers (limited-function)
wholesalers that solicit orders from retailers and other wholesalers and have the merchandise shipped directly from a producer to a buyer
Assembly line Layout (AKA product layout)
workers do only a few tasks at a time and used to produce large quantities of a few types of products like cars.
contingent workers
workers who do not have the expectation of a regular, full-time employment. Hired during periods of peak demand and in uncertain economic times. (part-time, temporary, interns, independent contractors, and co-op students)
What makes the global market appealing?
world population of 7.7 billion makes it a huge market of potential customers.
International Organization for Standardization (ISO)
worldwide federation of national standards bodies
compliance-based ethics codes
written to prevent unlawful behavior by increasing control and by penalizing wrongdoers.
Social Media Advertising
•Companies can measure how many times a post is viewed or shared. •Social media allows marketers to test promotions before bringing them to traditional media.
business to consumer sales process
•Most of these sales take place in retail stores. •The salesperson does not have to do much prospecting or qualifying. •Retail salespeople don't usually need a preapproach step. •Follow up if the product is to be delivered or installed.
interfirm operations management
•Outsource engineering, design, and manufacturing to other companies. •Create new relationships with suppliers online. •Manufacturing companies are developing strategies to compete more effectively in the future.
