Business
executive summary
2-3 page management summary of proposed venture (major goals and objectives)
performance appraisal
An evaluation that measures employee performance against established standards in order to make decisions about promotions, compensation, training or termination.
might have a good business idea if
fills customers' needs, have the skills and resources to start one, can sell the product/service at price that's good but can still make profit, get to your customers before window of opportunity ends, can keep the business going
fringe benefit
form of payment for the performance of services
product life cycle
introduction, growth, maturity, and decline
production has historically meant
manufacturing
order
materials and people should be placed and maintained in the proper location
self-managed
means that they're empowered to make decisions without management approval
insurable interest
means the policyholder is the one at risk to suffer a loss
how is the distribution of profit and losses handled in an LLC
members agree on the percentage to be distributed to each member
identity theft
obtaining of individuals' personal info (SS and credit card numbers)
off-the-job training
occurs away from the workplace and consists of internal or external programs to develop any of a variety of skills or to foster personal development
strike
occurs when workers collectively refuse to go to work
incubators
offer new businesses in the critical stage of early development low-cost offices w/ basic services such as accounting, legal advice, and secertarial help
continuous process
one in which long production runs turn out finished goods over time
mutual insurance company
organization owned by its policyholders
tall organizational structures
organizations grew bigger and bigger, adding layer after layer of management
marketing intermediaries
organizations that assist in moving goods and services from producers to businesses (B2B) and from businesses to consumers (B2C)
mission statement
outlines the organization's fundamental purposes and should address: (organization's self-concept, philosophy, long-term survival needs, its customer needs, social responsibility, nature of its product(s) or service(s)
cooperative (co-op)
owned and controlled by the people who use it - producers, consumers, or workers w/ similar needs who pool their resources for mutual gain
stock insurance company
owned by stockholders, just like any other investor-owned company
business ownership policy (BOP)
package that includes property and liability insurance
advertising
paid, nonpersonal communication through various media by organizations and individuals who are in some way identified in the message
focus group
people who meet under the direction of a discussion leader to communicate their opinions about an organization, its products, or other given issues
ultimate consumer
person or organization that buys a product to use, rather than sell it to someone else
intrinsic reward
personal satisfaction you feel when you perform well and complete goals (ex: belief that your work makes a significant contribution to the organization or to society)
facility layout
physical arrangement of resources, including people, to most efficiently produce goods and provide services for customers
process manufacturing
physically or chemically changes materials
guidelines for insurable risk
policyholder must have an insurable interest, loss and chance of loss must be measurable, loss must be accidental, insurance company's risk should be dispersed, insurance company must be able to set standards for accepting the risk
three guidelines for an insurable risk
policyholder must have an insurable interest, loss must be measurable, chance of loss must be measurable
self-insurance
practice of setting aside money to cover routine claims, and buying only "catastrophe" insurance policies to cover big losses
5 steps in human resource management
preparing a human resource inventory of the organization's employees, preparing a job analysis, assessing future human resource demand, assessing future labor supply, establishing a strategic plan
management development
process of training and educating employees to become good managers, and then monitoring the progress of their managerial skills over time
Statistical Quality Control (SQC)
process some managers use to continually monitor all phases of the production process and ensure quality is being built into the product from the beginning
collective bargaining
process whereby union and management representatives negotiate a contract for workers
information
processed and organized data that managers can use for decision making
push strategy
producer uses advertising, personal selling, sales promotion, and all other promotional tools to convince wholesalers and retailers to stock and sell merchandise, pushing it through the distribution system to the stores
job simplification
produces task efficiency by breaking a job into simple steps and assigning people to each step
lean manufacturing
production of goods using less of everything than in mass production: less human effort, less manufacturing space, less investment in tools, and less engineering time to develop a new product
Eras of Marketing in US
production, selling, marketing concept, customer relationship
flexible distribution of profits and losses is considered an advantage of an LLC because
profits/losses do not have to be distributed in proportion to the money each person invests
federal crime insurance
provides insurance to property owners in high-crime areas
options for pure risks
reduce, avoid, self-insure against, by insurance against the risk
corporate policy
refers to the position a firm takes on social and political issues
speculative risk
result in either profit or loss
product mix
the combination of product lines offered by a manufacturer
product differentiation
the creation of real or perceived product differences
premium
the fee the insurance company charges, the cost of the policy to the insured
Public relations (PR)
the function that gauges public opinion, 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
reference group
the group an individual uses as a reference point in forming beliefs, attitudes, values, or behavior
limited liability
the limited partners' liability for the debts of the business is limited to the amount they put into the company (personal assets are not at risk)
core time
the period of the day when all employees are expected to be at their job stations
transparency
the presentation of a company's facts and figures in a way that is clear and apparent to all stakeholders
trade protectionism
the use of government regulations to limit the import of goods and services
exclusive distribution
the use of only one retail outlet in a given geographic area
during the production era it was believed that one should purchase as much as you can bc
there's a limitless market for the product
marketing research
they analyze markets to determine opportunities and challenges and to find the info they need to make good decisisions
features of enterprise zones
they're located in economically distressed areas and offer businesses lower taxes and other support
pure risk
threat of loss w/ no chance for profit, such as threat of fire/accident/theft
3 elements of Taylor's (scientific" Approach
time, methods, and rules of work
apprentice programs
trainee works alongside an experienced employee to master the skills and procedures of a craft
brand
a name, symbol, or design (or combo) that identifies the goods or services of one seller or group of sellers and distinguishes them from the goods and services of competitors
claim
a statement of loss that the insured sends to the insurance company to request payment
goals
are the broad, long-term accomplishments an organization wishes to attain
organizing
begins with determining what work needs to be done
computer-aided manufacturing (CAM)
bring computers directly into the production process
home based workers
can choose their own hours, interrupt work for child care or other tasks, and take time out for personal reasons
variable costs
change according to the level of production
ISO 9001
common name given to quality management and assurance standards
leaders must
communicate a vision, establish corporate values, promote corporate ethics, embrace change, AND stress accountability and responsibility
human relations skills
communication and motivation; they enable managers to work through and with people
business ownership policy
companies may buy a package that includes property and liability insurance
company background
company operations, legal considerations, areas of risk and opportunity
intranet
companywide network, closed to public, uses Internet type technology
benchmarking
compares an organization's practices, processes, and products against the world's best
integrity-based ethics codes
define the organization's guiding values, create an environment that supports ethically sound behavior, and stress shared accountability
brand loyalty
degree to which customers are satisfied, like the brand, and are committed to further purchases
target costing
demand-based, means we design a product so it not only satisfies customers but also meets the profit margins set
flat organizational structures
fewer layers of management and a broad span of control
financial plan
5 year projections for income, expenses, funding sources
small business administration
A U.S. government agency that advises and assists small businesses by providing management training and financial advice and loans.
insurable risk
typical insurance company will cover
4 Ps of marketing managers
Product, Price, Place, Promotion
line organization
direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with everyone reporting to only one supervisor
pull strategy
directs heavy advertising and sale promotion efforts toward consumers
departmentalization
divides organizations into separate units
geographic segmentation
dividing a market by cities, counties, states, or regions
job specialization
dividing tasks into smaller jobs
market segmentation
dividing the total market into groups with similar characteristics
division of labor
dividing up the tasks
according to Fayol, this principle states that functions within an organization are to be divided into areas of specialization
division of labor
strategic planning
done by top management and determines the major goals of the organization and the policies, procedures, strategies, and resources it will need to achieve them
5G
fifth generation wireless
social commerce
form of online commerce that involves using social media, online media that support social interaction, and user contributions to assist in the buying and selling of products and services online
public data
free and accessible includes electronic traces we leave when posting to social media, sending email, and using search engines
purchasing
function that searches for high-quality material resources, finds the best suppliers, and negotiates the best price for quality goods and services
challenges of working at home
getting new customers, managing time, keeping work and family tasks separate, abiding by city ordinances, managing risk
extrinsic reward
given to you by someone else as recognition for good work (ex: pay raises, praise, and promotions)
flextime plan
gives employees some freedom to choose which hours to work, as long as they work the required number of hours or complete their assigned tasks
open shop agreement
gives workers the option to join or not join a union if one exists
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
5 influences on environmental scanning
global, technological, sociocultural, competitive, and economic influences
value
good quality at a fair price
Civil Rights Act of 1991
governs sexual harassment of both men and women
local area network (LAN)
group of connected devices in one physical location, such as a home or office
cross-functional self-managed teams
groups of employees from different departments who work together on a long-term basis (as opposed to the temporary teams established in matrix-style organizations)
inverted organization
has contact people at the top and top management at the bottom
limited partnership
has one or more general partners and one or more limited partners
operations management planning
helps solve many of the problems in the service and manufacturing sectors
contingent workers
include part-time workers (workers paid by temporary employment agencies), seasonal workers, independent contractors, interns, co-op students, and freelancers
fringe benefits
include sick-leave pay, vacation pay, pension plans, and health plans that provide additional compensation to employees beyond base wages
internal customers
individuals and units within the firm that receive services from other individuals or units
right-to-work laws
individuals states have the power to outlaw union shop agreements through these laws
whistelblowers
insiders who report illegal or unethical behavior
pension benefit guaranty corporation
insures pension plans to prevent loss to employees if the company declares bankruptcy or goes out of business
affirmative action
intended to "right past wrongs" by increasing opportunities for minorities and women
ISO
international organization for standardization - set global measures for the quality of individual products
what's a characteristic of a merchant wholesaler?
it's an independently owned firm
amazon avon kodak facebook starbucks
jeff bezos david mcconell george eastman mark zuckerberg howard schultz
horizontal merger
joins two firms in the same industry and allows them to diversify or expand their products
idea behind intrapreneurs
launch new products and generate new profits
factors that affect consumer behavior
learning, reference group, culture, subculture, cognitive dissonance
corporation
legal entity w/ authority to act and have liability apart from its owners
conceptual skills
let the manager picture the organization as a whole and see the relationships among its various parts
limited liability partnership (LLP)
limits partners' risk of losing their personal assets to the outcomes of only their own acts and omissions and those of people under their supervision
chain of command
line of authority that moves from top to lowest levels of a hierarchy
equity theory
looks at how employee's perceptions of fairness affect their willingness to perform
master limited partnership (MLP)
looks like a corporation, acts like a corporation and is traded on the stock exchanges like a corporation but is taxed like a partnership and thus avoids the corporate income tax
micropreneurs
maintain a balanced lifestyle while doing the kind of work they want to do (know their companies never appear on a list of top-ranked businesses but are ok with that)
cover letter
make potential funders want to read your business plan instead of hundreds of others (summarize, short points, address letter to potential investor by name)
intermittent process
makes more sense when responding to specific customer orders (production run is short and producer adjusts machines frequently to make different products)
job rotation
makes work more interesting and motivating by moving employees from one job to another
autocratic leadership
making managerial decisions without consulting others
participative (democratic) leadership
managers and employees work together to make decisions
authority
managers have the right to give orders and the power to enforce obedience
free-rein leadership
managers set objectives and employees are free to do whatever is appropriate to accomplish those objectives
agents/brokers
marketing intermediaries who bring buyers and sellers together and assist in negotiating an exchange but don't take title to the goods (at no point do they own the goods)
venture capitalists
may finance your project - for a price
leading
means creating a vision for the organization and communicating, guiding, training, coaching, and motivating others to achieve goals and objectives in a timely manner
primary data
new studies
Marketers competing on product attributes and image are said to be participating in:
nonprice competition
process layout
one in which similar equipment and functions are grouped together
uninsurable risk
one that no insurance company will cover
small business
one that's independently owned and operated, isn't dominant in its field of operation, meets certain standards of size in terms of employees or annual receipts
reasons people are willing to take entrepreneurial risk
opportunity, profit, independence, challenge,
management team
organization chart, job descriptions, detailed resumes of current and proposed executives
crisis planning
part of contingency planning that anticipates sudden changes in the environment
word-of-mouth promotion
people tell other people about products they've purchased or services they've used
which element of the marketing mix is the most difficult for a manager to control due to the impact it has on customer evaluation of an offering?
price
skimming price strategy
prices a new product high to recover research and development costs and make as much profit as possible while there's little competition
psychological pricing
pricing goods and services at price points that make the product appear less expensive than it is.
virtual private network (VPN)
private data network that creates secure connections over regular Internet networks
angel investors
private individuals who invest their own money in potentially hot new companies before they go public
Small Business Investment Company (SBIC) Program
private investment companies licensed by the SBA to lend money to small businesses
interfirm
process in which companies work closely together to design, produce, and ship products to customers
human resource management (HRM)
process of determining human resource needs and then recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals
tactical planning
process of developing detailed, short-term statements about what is to be done, who is to do it, and how
networking
process of establishing and maintaining contacts with key managers in your own and other organizations, and using those contacts to weave strong relationships that serve as informal development systems
selection
process of gathering information and deciding who should be hired, under legal guidelines, to serve the best interests of the individual and the organization
environmental scanning
process of identifying factors that can affect marketing success
Customer Relationship Management (CRM)
process of learning as much as possible about present customers and doing everything you can over time to satisfy them or even exceed their expectations with goods and services
contingency planning
process of preparing alternative courses of action the firm can use if its primary plans don't work out
assembly process
puts together components to make a product
4 characteristics of useful management info (technology)
quality, completeness, timeliness, relelance
trial close
question or statement that moves the selling process toward the actual purchase (put on hold or will u be paying for that w/ your store credit card)
direct selling
reaches consumers in their homes or workplaces
restructuring
redesigning an organization so that it can more effectively and efficiently serve its customers
Hawthorne effect
refer to people's tendency to behave differently when they know they're being studied
business intelligence (BI) or analytics
refers to a variety of software applications used to analyze an organization's raw data and derive useful insights from it
economies of scale
refers to the fact that companies can reduce their production costs by purchasing raw materials in bulk
high-low pricing strategy
regular prices are higher than at stores using EDLP, but during special sales they're lower
B2B markets characteristics
relatively few customers, business customers are relatively large, tend 2b geographically concentrated, business buyers generally more ration/ less emotional than ultimate consumers, sales tend to be direct (not always), consumer promotions based more on advertising
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
line personnel
responsible for directly achieving organizational goals, and include production workers, distribution people, and marketing personnel
marketing intermediaries who sell to ultimate consumers are:
retailers
Internet2
runs the fastest network and supports heavy-duty applications such as videoconferencing, collaborative research, distance education, digital libraries, and full-body simulations known as tele-immersion
scientific management
scientifically study the most efficient ways to do things, determine the single "best way" to perform each task, and then teach others those methods
entrepreneurial attributes
self-directed, self-nurturing, action-oriented, highly energetic, tolerant of uncertainty
Exporting
selling products to another country
volume (or usage) segmentation
separating the market by volume of product use
critical path
sequence of tasks that takes the longest time to complete
Web 2.0
set of tools that allow people to build social and business connections
subculture
set of values, attitudes, and ways of doing things that results from belonging to a certain ethnic group, racial group, or other group with which one closely identifies
culture
set of values, attitudes, and ways of doing things transmitted from one generation to another in a given society
everyday low pricing (EDLP)
set prices lower than competitors and don't usually have special sale (like Trader Joe's and Walmart)
six sigma quality
sets a benchmark of just 3.4 defects per million opportunities, detects potential problems to prevent their occurrence
goal-setting theory
setting ambitious but attainable goals can motivate workers and improve performance if the goals are accepted, accompanied by feedback, and if conditions in the organization pave the way for achievement
Type A (American management approach)
short term employment, individual decision making, idividual responsibility for the outcomes of decisions, rapid evaluation and promotion, explicit control mechanisms, specialized career paths, segmented concern for employees
principle of motion economy
showing how every job could be broken into a series of elementary motions called a therblig
organization chart
shows relationships among people (who's accountable for the completion of specific work, and who reports to whom)
limited liability company (LLC)
similar to an S company but w/o the special eligibility requirements
retailer
a B2C organization that sells to ultimate consumers who buy for their own use (people like you and me)
trademark
a brand that has exclusive legal protection for both its brand name and its design
sole proprietorship
a business owned, and usually, managed, by one person
mentor
a corporate manager who supervises, coaches, and guides selected lower-level employees by introducing them to the right people and generally acting as their organizational sponsor
injuction
a court order directing someone to do something or to refrain from doing something
entrepreneurial team
a group of experienced people from different areas of business who join together to form a managerial team with the skills needed to develop, make, and market a new product
product line
a group of items that are physically alike or intended for a similar market
wholesaler
a marketing intermediary that sells to other organizations, such as retailers, manufacturers, and hospitals
operations management
a specialized area in management that converts or transforms resources, including human resources like technical skills and innovation, into goods and services
esprit de corps
a spirit of pride and loyalty should be created among people in the form
conventional (C) corporation
a state-chartered legal entity w/ authority to act and have liability separate from its owners - its stockholders
job enrichment
a strategy that motivates workers through the job itself
hierarchy
a system in which one person is at the top of the organization and there's a ranked or sequential ordering from the top down of managers and others who are responsible to that person
social audit
a systematic evaluation of an organization's progress
virtual corporation
a temporary network, made of replaceable firms that join and leave as needed
entrepreneurship
accepting the risk of starting and running a business
orientation
activity that initiates new employees into the organization
product placement
advertisers pay to put their products into shows and movies where the audience will see them
staff personnel
advise and assist line personnel in meeting their goals, and include those in marketing research, legal advising, accounting, information technology, and human resource management
demographic segmentation
age, income, and education level
arbitration
agreement to bring in an impartial third party to render a binding decision in a labor dispute
data processing (DP)
aka business technology
appendix
all marketing research on product or service
general partnership
all owners share in operating the business and in assuming liability for the business's debts
total fixed costs
all the expenses that remain the same no matter how many products are sold
clear communication channels
all workers should be able to reach others in the organization quickly and easily
hierarchy of authority
all workers should know to whom they report
capital required
amount of capital needed to commence or continue operations (how funds are meant to be used)
real time
simply means the present moment or the actual time in which an event takes place
SBA
small business administration
job description
specifies the objectives of the job, the type of work, the responsibilities and duties, working conditions, and the job's relationship to other functions
a company can share - to anyone who is interested to raise more money for investment
stock, shares, bonds, or equity
competition-based pricing
strategy based on what all the other competitors are doing
time-motion studies
studies of the tasks performed in a job and the time needed for each
job analysis
study of what employees do who hold various job titles
psychographic segmentation
study the target group's personality, values, and lifestyle
franchise agreement
an agreement whereby someone w/ a good idea for a business (the franchisor) sells the rights to use the business name and sell a product or service (the franchise) to others (franchisees) in a given territory)
union
an employee organization whose main goal is representing its members in employee-management negotiations over job-related issues
Service Corps of Retired Executives (SCORE)
an important source of info for small businesses
rule of indemnity
an insured person or organization cannot collect more than the actual loss from an insurable risk
limited partner
an owner who invests money in the business but doesn't have any management responsibility or liability for losses beyond his or her investment
general partner
an owner/partner who has unlimited liability and is active in managing the firm
Web 3.0
another generation of web innovators plans to expand the utility of the Internet by enabling an unprecedented level of decentralization and security
phishing
another type of online security threat
direct marketing
any activity that directly links manufacturers or intermediaries w/ the ultimate consumer
unlimited liability
any debts or damages incurred by the business are your debts and you must pay them (period)
publicity
any info about an individual, product, or organization that's distributed to the public through the media and is not paid for or controlled by the seller
Product
any physical good, service, or idea that satisfies a want or need, plus anything that would enhance the product in the eyes of consumers, such as the brand name
job specifications
are a written summary of the minimal education and skills a person needs to do a particular job
lockout
attempt by management to put pressure on union workers by temporarily closing the business
Gantt chart
bar graph that shows what projects are being worked on and how much has been completed at any given time
information systems (IS)
business technology in 1980s, changed from supporting to doing business
information technology (IT)
business technology, change business by storing, retrieving, and sending info efficiently
Importing
buying products from another country
motivators
certain factors that made employees productive and gave them satisfaction
risk
chance of loss, the degree of probability of loss and the amount of possible loss
computer-aided design (CAD)
changed production techniques is the use of ocmputers to design products
decision making
choosing among two or more alternatives
ISO 14001
collection of the best practices for managing an organization's impact on the environment
National Labor Relations Act of 1935 established ...
collective bargaining in labor-management relations
job enlargement
combines a series of tasks into one challenging and interesting assignment
bundling
combines goods and/or services for a single price
integrated marketing communication (IMC)
combines the promotional tools into one comprehensive, unified promotional strategy
promotion mix
combo of promotional tools an organization uses
location analysis
comprehensive demographic analysis of consumers
materials requirement planning (MRP)
computer based operations management systems that uses sales forecasts to make sure needed parts and materials are available at the right time and place
net neutrality
concept that the Internet service providers (ISPs) should provide the same level of access to all website regardless of their content
just in time (JIT) inventory control
concept to help cut costs
quality
consistently producing what the customer wants while reducing errors before and after delivery
channel of distribution
consists of 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
business-to-business (B2B) market
consists of 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
consumer market
consists of all the individuals or households that want goods and services for personal consumption or use and have the resources to buy them
supply chain (or value chain)
consists of all the linked activities various organizations must perform to move goods and services from the sources of raw materials to ultimate consumers
Promotion
consists of all the techniques sellers use to inform people about and motivate them to buy their products or services
a total product offer
consists of everything consumers evaluate when deciding whether to buy something
online retailing
consists of selling goods and services to ultimate consumers online
broadband technology
continuous connection to the Internet that allows users to send and receive files quickly
extranet
controlled private network that lets more than one company access the same info or allows people on different serves to collaborate and do so w/o granting access to the organization's entire network
professional liability insurance (aka malpractice insurance)
covers people found liable for professional negligence
learning
creates changes in an individual's behavior resulting from previous experiences and information
intrapreneurs
creative people who work as entrepreneurs within corporations
marketing concept (3 parts)
customer orientation, service orientation, profit orientation
UPCs
Universal Product Codes
health savings accounts (HSAs)
tax-deferred savings accounts linked to low-cost, high deductible health insurance policies
modular layout
teams of workers combine to produce more complex units of the final product
program evaluation and review technique (PERT)
technique for monitoring the progress of production developed in the 1950s by the US Navy
relationship marketing
tends to lead away from mass production and toward custom-made goods and services
bureaucracy
term for an organization with many layers of managers
technical skills
the ability to perform tasks in a specific discipline or department
production management
the activities that helped firms create goods
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
vertical merger
the combination of two or more firms involved in different stages of producing the same good or service
corporate social responsibility (CSR)
the concern businesses have for the welfare of society, not just for their owners
production
the creation of finished goods and services using the factors of production: land, labor, capital, entrepreneurship, and knowledge
management
the process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other organizational resources
break-even analysis
the process used to determine profitability at various levels of sales
merger
the result of two firms joining to form one company
recruitment
the set of activities for obtaining the right number of qualified people at the right time (purpose to select those who best meet the needs of the organization)
informal organization
the system that develops spontaneously as employees meet and form cliques, relationships, and lines of authority outside the formal organization
cognitive dissonance
type of psychological conflict that can occur after a purchase (may have doubts about whether they got the best product at the best price)
union shop agreement
under which workers don't have to be members of a union to be hired but must agree to join within a prescribed period
shop stewards
union officials who work permanently in an organization and represent employee interests on a daily basis and supervisory-level managers"
conglomerate merger
unites firms in completely unrelated industries in order to diversify business operations and investments
sexual harassment
unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature that creates a hostile work environment
mediation
use of third party, who encourages both sides in a dispute to continue negotiating and often makes suggestions for resolving the matter
networking
uses communications technology and other means to link organizations and allow them to work together on common objectives
selective distribution
uses only a preferred group of the available retailers in an area
insider trading
uses private company information to further insiders' own fortunes or those of their family and friends
brand equity
value of the brand name and associated symbols
hygiene factors
what Herzberg called other elements of the job or manetenance factors
partnership
what an organization is called when two or more people legally agree to become co-owners of a business
marketing plan
what makes product more desirable
core competencies
when a firm has completed its outsourcing process, those functions it can do as well as or better than any other organization in the world
centralized authority
when decision making is concentrated at the top level of management
decentralized authority
when decision making is delegated to lower-level managers and employees more familiar with local conditions than headquarters management could be
primary boycott
when labor encourages both its members and the general public not to buy the products or services of a firm engaged in a labor dispute
organizational (or corporate) culture
widely shared values w/in an organization that foster unity and cooperation to achieve common goals
brand name
word, letter, or group of words or letters that differentiates one seller's goods and services from those of competitors
subordination of individual interests to the general interest
workers are to think of themselves as a coordinated team
assembly-line layout
workers do a few tasks at a time
telecommuting
working from home via computer
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).
mass customization
tailoring products to meet the needs of a large number of individual customers
Deming Cycle quality control approach steps
PDCA -- Plan Do Check Act
grievance
a charge by employees that management is not abiding by or fulfilling the terms of the labor contract as they perceive it
equity
a manager should treat employees and peers with respect and justice
S Corporation
a unique government creation that looks like a corporation but is taxed like sole proprietorships and partnerships
organization chart
a visual device that shows relationships among people and divides the organization's work (who reports to whom)
coaching
acting as a resource - teaching, guiding, and recommending - but not participating actively or doing the task
fixed-position layout
allows workers to congregate around the product to be completed
leveraged buyout (LBO)
an attempt by employees, management, or a group of private investors to buy out the stockholders in a company, primarily by borrowing the necessary funds
secondary boycott
an attempt by labor to convince others to stop doing business with a firm that is the subject of a primary boycott
steps to business-to-customer in selling process
approach, ask questions, make presentation, close sale, follow up
packages must
attract buyer's attention, protect the goods inside, be easy to open/use, describe and give info about the contents, explain the benefits of the product inside, provide info on warranties/warnings/other consumer matters, give some indication of price/value/uses
business incubators
centers tat offer businesses in critical stage of early development low-cost offices and access to basic services such as accounting, legal advice, and secretarial help
enterprise resource planning (ERP)
combines computerized functions of all the divisions and subsidiaries of the firm - such as finance, human resources, and order fulfillment - into a single integrated software program that uses a single database (newer version of MRP)
market
consists of consumers w/ unsatisfied wants and needs who have both resources and the willingness to buy
manufacturing plan
describe minimum plant size, things needed, estimates of cost as well
AI - artificial intelligence
describes machines programmed to think, work, and react like humans
marketing mix
designing a want-satisfying product, setting a price for the product, putting the product in a place where people will buy it, and promoting the product
flexible manufacturing
designing machines to do multiple tasks so they can produce a variety of products
formal organization
details lines of responsibility, authority, and position
benefit segmentation
determining which product benefits your target market prefers and using those benefits to promote a product
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
brand manager/product manager
direct responsibility for one brand or product line, and manages all the elements of its marketing mix: product, price, place, and promotion
vestibule training
done in classrooms with equipment similar to that used on the job so employees can learn proper methods and safety procedures before assuming a specific job assignment
what is true as statements related to corporate taxation
double taxation occurs AND stockholders pay income tax on the dividends they receive
personal selling
face-to-face presentation and promotion of goods and services, including the salesperson's search for new prospects and follow-up service after the sale
biological data
finger printing technology, devices that scan retinas, recognize faces, voices and analyze DNA
division of labor
functions are to be divided into areas of specialization such as production, marketing, and finance
top management
highest level, consists of the president and other key company executives who develop strategic plans
brand awareness
how quickly or easily a given brand name comes to mind when a product category is mentioned
niche marketing
identifying small but profitable market segments and designing or finding products for them
law of large numbers
if a large number of people or organizations are exposed to the same risk, a predictable number of losses will occur during a given period of life
external customers
include dealers, who buy products to sell to others, and ultimate customers (also known as end users) such as you and me, who buy products for their own personal use
corporate social initiatives
include enhanced forms of corporate philanthropy
Manangement by objectives (MBO)
includes a cycle of discussion, review, and evaluation of objectives among top and middle-level managers, supervisors, and employees
Type J (based on culture of Japan)
includes a focus on trust and intimacy within the group and family
training and development
includes all attempts to improve productivity by increasing an employee's ability to perform
planning
includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives
viral marketing
includes any strategy that encourages people to pass on a marketing message to others, creating exponential growth in the message's influence as the message reaches thousands, even millions
corporate philanthropy
includes charitable donations to nonprofit groups of all kinds
organizing
includes designing the structure of the organization and creating conditions and systems in which everyone and everything work together to achieve the organization's goals and objectives
corporate responsibility
includes essentially everything that has to do with acting responsibly w/in society
supervisory management
includes those directly responsible for supervising workers and evaluating their daily performance (often first-line managers or supervisors bc they're the first level above workers)
3 disadvantages of incorporating
initial cost, extensive paperwork, double taxation
steps for successful social media promotional campaign
know ur customer base, create images and videos ur customers will want to see and post something new everyday, develop ful/suitable hashtags, set up a publishing calendar to ensure consistency in posting, engage w/ customers - offer contests and entertainment, follow back and reply to ur customers
leaving a (?) means owners can leave an ongoing business for future generations
legacy
problem solving
less formal, usually calls for quicker action to resolve veryday issues
on-the-job training
lets the employee learn by doing, or by watching others for a while and then imitating them, right at the workplace
job sharing
lets two or more part-time employees share one full-time job
sampling
letting consumers have a small sample of the product for no charge
Maslow's Hierarchy of Needs (bottom to top)
physiological, safety, social, esteem, self-actualization
virus
piece of programming code inserted into other programming that usually lies dormant until triggered to cause some unexpected and usually undesirable event
cookies
pieces of info such as registration data or user preferences that the browser sends back to the server whenever you return to that website
facility location
process of selecting a geographic location for a company's operations
departmentalization
process of setting up individual departments to do specialized tasks
operational planning
process of setting work standards and schedules necessary to implement the company's tactical objectives
test marketing
process of testing products among potential users
Statistical Process Control (SPC)
process of testing statistical samples of product components at each stage of production and plotting the test results on a graph
enterprise risk management (ERM
program defining: which risks the program will manage, what risk management processes/technologies/investments will be required, and how the risk management efforts will be coordinated across the firm
sales promotion
promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities
national flood insurance association
provides compensation for damage caused by flooding and mud slides to properties located in flood-prone arenas
federal crop insurance
provides compensation for damaged crops
unemployment compensation
provides financial benefits, job counseling, and placement services for unemployed workers
federal housing administration
provides mortgage insurance to lenders to protect against default by home buyers
social security
provides retirement benefits, life insurance, health insurance, and disability income insurance
data
raw, unanalyzed, and unorganized facts and figures
target marketing
selecting which groups or segments an organization can serve profitably
crowdfunding relies on
small contributions from the general public
ethics
society's accepted standards of moral behavior (behaviors accepted by society as right rather than wrong)
computer-integrated manufacturing (CIM)
software programs that unite CAD and CAM
matrix organization
specialists from different parts of the organization work together temporarily on specific projects, but still remain part of a line-and-staff structure
objectives
specific, short-term statements detailing how to achieve the organization's goals
price leadership
the strategy by which one or more dominant firms set the pricing practices that all competitors in an industry follow
form utility
value producers add to materials in the creation of finished goods and services
strikebreakers (scabs)
workers hired to do the jobs of striking employees until the labor dispute is resolved
helping
working with the employee and doing part of the work if necessary
insurance policy
written contract between the insured, whether an individual or organization, and an insurance company that promises to pay for all or part of a loss by the insured
SWOT analysis
strengths, weaknesses, and the opportunities and threats
steps for PERT
- analyze and sequence tasks that need to be done -estimating the time needed to complete each task -drawing a PERT network illustrating the information from steps 1/2 -identifying the critical path
disadvantages of corporations
1)initial cost 2)double taxation 3)extensive paperwork 4)two tax returns 5)size 6)difficulty of termination 7)possible conflict w/ stockholders and board of directors
advantages of corporations
1)limited liability 2)ability to raise more money for investment 3)size 4)perpetual life 5)ease of ownership change 6) ease of attracting talented employees 7) separation of ownership from management
advantages for LLC
1)limited liability 2)choice of taxation 3)flexible ownership rules 4)flexible distribution of profits and losses 5)operative flexibility
advantages of partnership
1)more financial resources 2)shared management and pooled/complementary skills and knowledge 3)longer survival 4)no special taxes
LLC disadvantages
1)no stock 2)fewer incentives 3)taxes 4)paperwork
disadvantages of partnerships
1)unlimited liability 2)division of profits 3)disagreements among partners 4)difficulty of termination
six Ds of decision making
1. Define the situation 2. Describe and collect needed information 3. Develop alternatives 4. Decide which alternative is best 5. Do what is indicated 6. Determine whether the decision was a good one and follow up
unity of command
Each worker is to report to one, and only one, boss.
a company similar to an S corporation but w/o the special eligibility requirements is an
LLC (limited liability company)
acquisition
One company's purchase of the property and obligations of another company.
staffing
Recruiting, hiring, motivating and retaining the best people available to accomplish the company's objectives.
entreprise zones
Specific geographic areas to which governments try to attract private business investment by offering lower taxes and other government support
degree of centralization
The amount of decision-making power vested in top management should vary by circumstances.
Formula for Break Even Point
Total fixed cost / price of one unit - variable costs (VC) of one unit
database
electronic storage file for information
compliance-based ethics codes
emphasize preventing unlawful behavior by increasing control and penalizing wrongdoers
expectancy theory
employee expectations can affect motivation
compressed workweek
employee works the full number of hours, but in fewer than the standard number of days
cafeteria-style fringe benefits
employees can choose the benefits they want up to a certain dollar amount
agency shop agreement
employees may hire workers who are not required to join the union but must pay a special union fee or regular union dues
penetration strategy
enables the firm to penetrate or capture a large share of the market quickly
Office of Federal Contract Compliance Programs (OFCCP)
ensures that employers comply with nondiscrimination and affirmative action laws and regulations when doing business with the federal government
controlling
establishes clear standards to determine whether an organization is progressing toward its goals and objectives, rewarding people for doing a good job, and taking corrective action if they're not
secondary data
existing data, since you aren't the first one to gather it (but it's what marketers should gather first to avoid unnecessary expense)
