Ch. 11 - Intro to Business

define conceptual skills

"see the big picture" vision to see the firm's place in the economy currently & what the future could hold for the firm forward thinking and strategic planning

define product and the steps involved in it

*conducting market research to determine the g/s people want and need; developing new and improved products* a. develop an idea - brainstorm about functionality, look, size, etc. b. develop a look - a drawing on paper and listing of product features c. concept testing d. develop prototype e. product testing f. make adjustments g. produce to sell

what is tactical planning?

*covers each of the functional areas of the organization (production, distribution, purchasing, finance)* - 1-2 years, job of middle managers

what is the planning function?

*deciding how to best use the resources available to the firm to achieve the firm's goals*

what is strategic planning?

*done by senior management w approval from board of directors* - spans all of firm's operations and works to further goals defined in the vision and mission statements - usually long term in nature (5-10 years)

what is operational planning?

*last level of planning, which focuses on routine activities of a firm, like specific processes/procedures* - 1 time or recurring goals - short term and overseen by lowest levels of management such as first-line supervisors

what is the manufacturing/operations section?

*only if you're producing a product* - discusses details of production - can include legal section or sections specific to business that could help potential investors or management

what are the 3 ways to acquire funding when buying a business?

*seller financing*: the seller allows you to make payments over time to buy the business (principle and interest) find an *angel investor* or a venture capital firm to partner with - the investor becomes part owner of business and so had equity stake in business in return for financing - the owner shares profits w investor but if business fails, owner won't owe large debt for defunct business *business loan*: banks don't like these but might give you a loan if you have good financial history

what is the executive summary?

*summarizes entire plan* 1-2 pages, draws reader in

what is the direction/leading function?

*the supervising part of the manager's job and involves getting the subordinate employees to do their job* - determine what motivates and excites employees to get a strong work ethic

how do employers motivate their employees?

- by explaining role in achieving firm's overall goals - different people respond to different management techniques - it's the manager's job to understand what motivates each of his employees and provides that motivation

what does determining needs involve?

- considering current and future labor needs - as technology develops, the level of complexity of jobs is increasing and more skills are needed

what are the disadvantages of franchising?

- costs (pays up front fee and regular royalty), plus land, building, equipment, inventory, buying supplies from franchisor and giving funds to support ads - lack of control - limited growth opportunities - problem with 1 franchise will tarnish the images of the others *negative halo effect* - limited opportunities to sell franchise

what is the function of top/senior management?

- developing long-term goals and plans to achieve firm's goals - president & CEO and management that oversees the different areas of the firm (CFO and COO)

what is the purpose of employee relations programs?

- ensure all employees are treated fairly and consistency throughout firm - make sure employees have a way to communicate their concerns and that firm communicates important info that affects employees in a timely manner

what are the advantages of franchising?

- increased brand recognition helps bring customers - risk is lower b/c the franchisor is sharing established business methods and products - franchisors often give training and support - easier to get funding

what is the function of middle management?

- oversee large units under a senior manager's purview - ensure work of each area is done by overseeing the first-line or supervisory managers - VP, unit/section chief, or plant manager

what is the function of first-line/supervisory management?

- oversee the workers in the firm that are doing the actual work - need to know how to do the jobs of their workers in order to supervise, train and develop the workers - team leader, foreman, supervisor, manager or facilitator

what are the 4 leadership styles?

1. autocratic 2. democratic 3. facilitative 4. laissez-faire

what are 3 ways to become a small business owner?

1. buy an existing business 2. buying a franchise 3. starting a business from scratch

what are the 4 goals of an appraisal?

1. compare actual performance to performance standards 2. measure productivity 3. document findings 4. communicate to employee and keep in employee file

what are the 3 types of management skills?

1. conceptual skills 2. communication/interpersonal skills 3. technical skills

what are the 5 steps to determining a mission statement?

1. consider what your firm does and doesn't do 2. define what firm does for customers, including anything unique or different 3. define what firm does for employees (diversity, promotion, etc.) 4. what firm means to owners 5. keep it concise and easy to understand

what is the keeping employees function?

1. determining fair compensation 2. developing competitive benefits programs 3. employee relations programs

what are the 4 steps to hiring?

1. determining needs 2. recruiting 3. hiring 4. orientation

what are the 7 components of a business plan?

1. executive summary 2. idea/product section 3. marketing section 4. sales section 5. team section 6. financial plan section 7. manufacturing/operation section

what are types of market segmentation?

1. geographic - dividing based on location 2. demographic - division according to age, race, gender, ethnicity, income level, etc 3. behavioral - consumer behavior (ex. we all want to save gas) 4. psychographic - based on attitude, lifestyle and activities

what are the 3 main aspects of HRM (human resource management)?

1. hiring employees 2. keeping employees 3. developing employees

what are the 5 steps in organizing?

1. identifying activities of the firm 2. grouping activities under functional specialities 3. assigning duties 4. delegating authority and creating responsibilities 5. coordinating authority

what are the 5 steps to determining a vision statement?

1. imagine what you want the firm to look like in 5-10 years 2. consider and include the firm's values 3. show clear focus for firm 4. write in present tense in clear, concise language 5. ensure statement is easily understood

what are the two types of recruiting? define.

1. internal - getting qualified candidates from within the firm to apply for open positions - can be used for lateral transfers or promotions 2. external - attracting qualified candidates to apply for an open position from outside the company

what motivates people to buy g/s?

1. it solves a problem the person has 2. to achieve a result you want and don't have

what are the 5 things high-achieving managers are able to do?

1. motivate employees w/ differing levels of morale, motivation and clarity of the job 2. be assertive 3. develop accountability in employees 4. build relationships 5. make decisions that improve productivity and aren't based on politics

why do we buy?

1. need: to fulfill basic needs like food, clothing, and water 2. prestige/application: increase status, get better (at a task, health, etc.) 3. situational matters: low price, convenience, mood (comfort, fear, guilt) 4. compulsory: mandatory purchase you can't avoid (textbooks, uniforms) 5. niche identity/charity: to show you're part of a special group (sports team, sorority) 6. charity: buying things we don't need or want to make us feel good and help others

what are the three types of appraisals?

1. objective 2. subjective 3. 360

what are the four types of training?

1. orientation 2. compliance training 3. leadership training 4. skill training

what are the 5 functions of management?

1. planning 2. organizing 3. staffing 4. direction/leading 5. control

what are the four Ps of marketing?

1. product 2. price 3. promotion 4. place

what are ways a firm can promote? define each

1. public relations - using targeted communications to create mutually beneficial relationships between a firm and its stake holders > free; creates goodwill 2. direct marketing: reaching out directly to customers with product info > personal, targeted ads, direct mail, emails, catalogs 3. advertising: pay to communicate info about product > video, audio, non-personal (TV, radio, billboards, magazines, newspaper, social media, etc.) 4. direct selling: target specific customers for luxury items

what are the steps of the consumer buying process?

1. recognize we have a problem 2. seek out information to solve the problem 3. evaluate the info gathered on potential solutions 4. make decision to buy or not 5. after purchase, evaluate if it was a good decision

what are the 5 goals of compensation?

1. recruiting and retaining employees 2. maintain or increase job satisfaction or workplace morale 3. encourage and reward high performance levels 4. compete with compensation offered by other firms 5. reduce turnover and encourage firm loyalty

what are the 4 things to prevent burnout/quitting

1. renewal - breaks, leave work and the end of the day, vacation, etc. 2. feel valued 3. focus - don't overburden employees but let them focus well on one task 4. sense of purpose - what they do matters

what are the 10 steps to starting a business?

1. research the idea 2. develop a business plan 3. finances 4. structure business 5. pick and register a business name 6. pick a location - buy or lease? 7. get team ready 8. mentor/small business coach 9. open your business and attract clients 10. marketing plan

what are the 4 steps to actually hiring?

1. reviewing resumes (highlight education, job experience and other skills) 2. pick interview candidates (phone/video interview, then on-site) 3. check references, request transcripts and otherwise confirm information 4. make the offer!

what are the 3 levels of planning?

1. strategic 2. tactical 3. operational

what are the 3 levels of management?

1. top/senior management 2. middle management 3. first-line/supervisory management

what are the ways to develop employees?

1. training 2. performance appraisals

what are the 2 things you need to know in order to successfully plan?

1. vision (sets out firm's ultimate goals and guide for planing/decision making) 2. mission statement (focuses on where company is currently, why it exists and current goals)

*not on outline* what are the Civil Rights Acts of 1866 and 1964?

1866: defined and protected race, color, national origin and ethnicity 1964: protects religion and gender

the _________________ is concerned with dealings between business firms and labor unions

National Labor Relations Act

list some of the traits of entrepreneurs

Passion Resilience Self-confident Self-motivated Strong work ethic Flexible and adaptable Vision Open-minded Strong people skills Creative Competitive Determined Risk loving

small business owners v. entrepreneurs

SBO have a great idea that meets a need or solves a problem Entrepreneurs have a big idea that is new and different SBO avoid risk and are content with small, predictable rewards Entrepreneurs are risk loving and risk their time and money with small probability of reward SBO think short-term focusing on daily or weekly tasks Entrepreneurs think long-term and focus on scaling and growing and let employees handle day to day SBO love what they do and love their business and are in it for income and satisfaction Entrepreneurs focus on scaling and growth

Firms use many techniques for determining the wage structure for positions within the firm. Which of the following is not normally used by firms to determine their wage structures? a. International standards b. Job evaluation c. Comparable worth d. Wage surveys

a

Which of the following is NOT necessary for a company to have a successful employee reward system? a. Tailoring to individual recipients b. Comparability to rewards offered by other firms c. Satisfaction of employee needs d. Fair distribution throughout the organization

a

Which of the following is not normally included as a central component of a marketing plan? a. Consumer protection laws b. Organization's resources c. Objectives d. Marketing strategy

a

which of the following is not one of the primary tasks of HRM? a. Terminating b. Maintaining c. Developing d. Acquiring

a

define a franchise

a licensing agreement allowing the franchisee to use the name, trademarks and copyrights, and business methods of an existing business in return for payments

what is a business plan?

a map/blueprint for starting and running a business - should be updated periodically as products, customers and market conditions change - concise

what is a job analysis?

a process that identifies job duties, education and skill requirements for a particular job - part of the determining needs function - analyze the job and not the characteristics of the people doing it - may involve interviews with employees in that job and their supervisors, observations, questionnaires, etc.

what is the team section?

a) management section - details of senior management (names and qualifications for positions and related experience) b) employees section - numbers and types of employees needed in firm and qualifications

how is price determined?

a. has to cover expenses and make profit b. high enough to get premium from early adopters c. not too low d. eventually determined by supply and demand > some firms proceed cautiously with limited rollout in a small geographic area > if there's a similar product in the market, that can help determine price

what are the advantages and disadvantages of external recruiting?

advantages: brings in workers with fresh ideas and diverse business backgrounds disadvantages: expensive, may hurt morale at the firm

what are the advantages and disadvantages of internal recruiting?

advantages: inexpensive, reduces risk of hiring someone that doesn't fit into the firm, takes less time disadvantages: leaves a job position open elsewhere in the firm

what is the Family and Medical Leave Act?

an employee is allowed up to 12 weeks unpaid leave for medical or family reasons

how do you structure a deal when buying a business?

attorneys will help you structure a deal that will protect you from past problems

Doug is a line manager at XYZ Corporation. he is very task-oriented and makes all of the decisions with little concern for employee opinion. under his _____ leadership style, employees are told exactly what is expected from them and given specific guidelines, rules and regulations on how to achieve their tasks

autocratic

One of the first steps in hiring new employees is to prepare a job forecast to anticipate the company's employment needs. Which of the following is not part of the hiring process? a. Drafting a job description b. Evaluating current employees c. Doing a job analysis d. Preparing job specifications

b

what is a subjective based appraisal?

based on opinions - used for workers in more analytical and supervisory work where productivity is harder to measure

define communication/interpersonal skills

being able to communicate info to employees and other stakeholders in the company (written/oral) - interpersonal skills tend to rely on less formal methods of communication and is more personal (1 on 1 and involves more emotion)

Which of the following best represents the three basic levels of management? a. Marketing managers, human resources managers, and recruitment managers. b. First-line managers, second-line managers, and top managers. c. First-line managers, top managers, and middle managers d. Financial managers, operations managers, and human resource managers.

c

what is a 360 appraisal?

complex and involves getting feedback from everyone the worker interacts with (supervisors, coworkers, subordinates, clients, and suppliers) - most comprehensive look into overall performance

Centrum Silver is a multiple vitamin marketed to individuals over fifty years old. The company divides its market into Centrum Silver for women 50+ and Centrum Silver for Men 50+. The organization is using a ______________ approach to market these products

concentrated market segmentation

when a manager plans for the future of his business and is able to see how all of the parts of the organization work together, it is said that he or she is engaging _______ to see the 'big picture'

conceptual skills

define facilitative leadership

concerned with outcomes and meeting standards - if a team is high-skilled and functioning, leader can be hands off

what type of leader seeks input from almost all workers and makes the final decisions based on their support?

consensus leaders

what type of leader is one who consults workers before making decisions, helps workers understand their goals, and imposes and fosters a sense of ownership and commitment, and takes the final decisions him or herself after gathering employee input?

consultative

________________ refers to the differences among people in a workforce owing to race, ethnicity and gender

cultural diversity

_____________ focuses on using information about the customer to create marketing strategies that develop and sustain desirable customer relationships.

customer relationship management

Many homes are decorated in spring colors because these colors are deemed to be uplifting; however, most department stores do not carry products in spring colors in the fall and winter when the focus is on browns and greens. Which of the following utilities explains the reason for spring-colored product availability? a. Form utility b. Possession utility c. Place utility d. Time utility

d

When a human resource department is considering available talent within the company, which of the following will it use to determine successors for key personnel? a. Human resource forecast b. Demand inventory c. Replacement chart d. Skills inventory

d

which of the following is not typically considered as an organization's resource? a. people b. materials c. finances d. intellectuals

d

which of the following most correctly delineates the steps in problem-solving?

defining the problem, generating alternatives, selecting an alternative, implementing and evaluating the solution

what is product testing?

develop functional prototype and take it to buying public to evaluate and give feedback

how do you develop a business plan?

discuss how you will financing, a guide through the start-up phase, and helping grow your business

what is the idea/product section?

discusses product, the need in market, the target market and potential competition

define the place function

distribution of product from manufacturer to consumer

the purpose of job analysis is to systematically study positions to determine _________&__________

elements and requirements

define democratic leadership & the 3 types

elicit opinions and feedback from others but ultimate decision is the leader's; allows decision to be influenced - consultative: discuss issues with workers but retain financial authority for decision - consensus: seek input from all workers and make decisions based on their support - participative: final authority to group

___________________ is the process of teaching operations and technical employees how to do their present jobs more effectively and efficiently

employee training

what are the 6 E's of leadership?

envision enlist embody empower evaluate encourage

according to the authors, franchises may become unsuccessful because the franchisor _______________.

expanded too rapidly

what is an objective appraisal?

fact based form of evaluation - used for jobs that can be measured objectively, like sales or production - performance quotas (were they met?)

what is concept testing?

float idea to potential customers to get feedback - includes specs and drawings, testing ideas at trade shows, fairs and focus groups

supply and demand are important in human resources planning because the planners must _________________________________ then determine if they're available

forecast future demand for human resources

which of the following best describes the difference between formal and informal leaders?

formal leaders have authority within an organization to influence others to work towards the organization's objectives, but informal leaders usually have no such authority

while the _____ owns the business, the _____ controls it

franchisee/franchisor

what is organizing?

gathering the resources (LLC, entrepreneurial ability and money) needed to achieve firm's goals and organize them into productive units - org charts

what does recruiting involve?

getting qualified people to apply for your firm's available jobs

a franchise agreement includes a franchisor and a franchisee with the franchisor ______ to the franchisee

granting a franchise

define laissez-faire leadership

hands off > employees given authority to make decisions - leader gives goals and allows the latitude to make it happen

*not on outline* what is the Equal Employment Opportunity Commission?

has primary enforcement authority over matters of employee civil rights

what is the developing skills function?

helping employees remain qualified, current and skills for the job

what are the disadvantages of buying an existing business?

high up front cost

how do you complete due diligence when buying a business?

hire attorneys help structure deals to protect you from liability related to events that happened before you bought the company accountants can evaluate the firm's financial statements to make sure there's not hidden problems in financials a business valuation firm will give a good estimate of what the firm is worth

define autocratic leadership

holds all authority and responsibility - makes decisions with little consultation and expects them to be carried out - little flexibility; things are done one way - works best in production setting that require little creativity (factory/fast food)

of the four resources managed within an organization, one is considered far more important than any of the others—so much so that management of this resource is considered to have a greater impact on the organization than even the vital components of the organization. which of the following is the resource described in this paragraph?

human

what does researching the idea entail?

identify the target market, check the competition, how you'll fit into the existing market, will you have to move?

define small business

independently owned and operated, limited in size, limited in revenues and by number of employees. what is small depends upon the industry

3 business students are having a discussion regarding leadership styles. one argues that autocratic leadership is best, another that participative is best, and the last that entrepreneurial is best. studies have shown however that the most effective leadership style depends on the right balance between __________.

interaction among employees, the work situation, and manager's personality

what is the orientation function?

introduction to the company - filling out paperwork, meeting co-workers and senior staff, learning job (maybe shadowing or having a mentor)

a business plan is essential for starting a new business because it ______________.

is a guide for the person starting a business

______ is the process of coordinating people and other resources to achieve the goals of an organization.

management

what is the controlling function?

managers ensure that the work being performed will ensure that the firm meets its organizational goals - each area within the firm has a set of standards to meet - measure actual performance and compare to the standard for performance

what is a direct distribution channel?

manufacturer to consumer directly

what is an indirect distribution channel?

manufacturer uses 1 or more intermediaries to get product to consumer

every business must keep records of sales, profits and losses, fixed assets, contacts, tax returns, customers, and a variety of other information that affects the growth and operability of the business. which of the following is true about small business?

many small firms need only a simple set of records

A business philosophy that a firm should provide goods and services that satisfy customers' needs through a coordinated set of activities that allow the firm to achieve its objectives is most often called the ____________

marketing concept

The purpose of a __________ is to establish a unified vision for an organization and to communicate this vision among the firm's employees.

marketing plan

what is the Equal Pay Act of 1963?

men and women should receive equal pay for equal work

what is compensation?

monetary benefits workers receive for working at the firm

how is fair compensation determined?

most firms have a pay range depending on the difficulty of the job

what are benefits?

non monetary services like health, dental, life, and disability insurance, paid vacation, sick leave, retirement plan contributions, flexible spending accounts, company gyms, etc.

define starting a business from scratch

one of the most complex ways to start a business and usually only done if you have a unique product or idea

what are the methods used for external recruiting?

online recruitment sites, social media, job fairs, colleges, ads, papers

what do new employees require from the staffing function?

orientation, development, and training, accomplished by offering competitive pay and benefits packages so market research is required to determine what is competitive - must consider internal transfers and promotions

what percentage of home-based businesses have no employees?

over 90%

A pair of shoes is given ________ when it is shipped from a factory to a department store.

place utility

a compensation system is a firm's _______&_______ that determine employee compensation

policies and strategies

statistics show that most small business failures are related to ___________.

poor management

define leadership training

prepares employees for responsibilities ahead as they get promoted (general management or specific training)

define market segmentation

process of taking a broad consumer market and dividing it up into smaller segments based upon some type of characteristic the segments have in common

what are employee relations programs?

programs to manage relationships between employer/employee and employee/employee

what is the marketing section?

promotion ideas, distribution, where to sell

*not on outline* what is the Age Discrimination in Employment Act of 1967?

protects people over 40 from discrimination in workplace

*not on outline* what is the Americans with Disabilities Act of 1990?

protects people with disabilities and requires accommodations

define performance appraisals

provides the employee with feedback on quality of work and should highlight things he does well and areas that could be improved

what is the Affordable Care Act of 2010 (ObamaCare)?

requires that firms with a certain number of employees with health insurance coverage

what is the research step of buying a business?

research what industry you may want to join, if you're willing to move, the market, etc.

what is the sales section?

sales force and sales projection information

Managers rely on __________ to purchase raw materials, schedule production, secure financial resources, consider plant or equipment purchases, plan inventory levels, and hire personnel, therefore they must be accurate.

sales forecasts

___businesses are important to the U.S. economy because, among other things, they employ about 1/2 of all private sector employees, pay 42% of total U.S. private payroll, and hire 37% of high-tech workers (scientists, engineers, computer programmers, and others).

small

sears, roebuck & co, and General Motors rely heavily on ________ to provide merchandise, parts, supplies, and other goods and services. companies like these buy parts and assemblies for these businesses because it is less expensive than manufacturing them in their own factories.

small business firms

what is the financial plan section?

sources of funding, cash-flow forecasts and financial forecasts - time frame for when firm will begin turning profit

during the planning stage, managers develop a ___ plan which is smaller in scale and developed to implement strategy and will most likely cover a 1-3 year period

tactical

define compliance training

teaches employees about difficult situations that may be faced on the job (sexual harassment, drugs, etc.)

define skill training

teaches specific skills employees need

small businesses enjoy several unique benefits that larger firms may not have such as __________.

the ability to adapt to change and simplified record keeping

what is promotion?

the actions of the firm to generate interest in product

how is marketing defined by the American marketing association?

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

what is the hiring function?

the job of sifting through applications, conducting interviews, and deciding who is best qualified for the job

define technical skills

the manager is able to do the job he oversees - the set of skills needs changes as a person moves up the corporate ladder

what is staffing?

the recruitment of applicants and selection of employees - firms must understand what their staffing needs are through planning and forecasting

*not sure if we need to know* what is a critical incidents appraisal?

the supervisor focuses on an incident where the employee responded poorly to an incident

what is the difference between supervising and motivating?

this difference is what makes a leader - leaders get workers to do their best - supervising is just checking to see if workers get things done but motivating is encouraging people to do things

what is the role of management?

to direct the various resources, functions and activities of an organization to achieve the goals of the organization

____________ was forged by Toyota motor company in Japan as a way to coordinate efforts at improving customer satisfaction, employee participation, strengthening supplier partnerships and improving the quality of their product

total quality management

what does dual-branded franchises mean?

two franchisors offer their products together

the purpose of a job analysis is to help the manager _________________

understand the nature of a job

what is the discrimination law in the workplace?

you cannot discriminate on basis of age, race, gender, religion, color, national origin, disability or ethnicity (these rules evolved in several laws over time)

Which of the following is not a step in the marketing research process? a. Estimate sales b. Interpret the information c. Gather factual information d. Make a preliminary investigation

a

Which of the following is not normally included in the external marketing environment? a. Finances b. Economics c. Technology d. Laws and regulations

a

sever factors contribute to the entrepreneurial spirit in the U.S., but the most important is the personal characteristics of the individuals who start businesses. studies have shown that personal factors in small-business success include family background, willingness to accept a challenge and _________________.

a desire to determine one's own destiny

when business managers identify a problem, they are identifying ___________________.

a discrepancy between an actual condition and a desired condition

what is the definition of franchise?

a license to operate an individually owned business as if it were part of a chain of outlets or stores

2 statistics of small businesses

1. hires almost 50% of workers in the U.S. 2. creates 2/3s of new jobs

what is the 5 step process for buying a business?

1. research 2. find available business 3. do due diligence 4. acquire funding to make purchase 5. draft sales agreement

how do you find an available business when you're looking for businesses?

1. start with your network 2. ask your favorite businesses 3. use reputable sites 4. if you're still looking, hire business broker (prescreens businesses and helps negotiate sales term)

The Age Discrimination in Employment Act was passed in 1967 and amended in 1986. It prohibits discrimination against employees who have reached a certain age in companies with 20 or more employees and prohibits mandatory retirement based on the retiree's age. What is the age referenced in the act at which it is illegal for a company to discriminate based on age? a. 40 years or older b. 50 years or older c. 70 years or older d. 60 years or older

a

which of the following is an accurate statement about business profitability?

according to the SBA, the most profitable companies in the United States are small firms that have been in business for more than ten years and employ fewer than 20 people.

A market is a group of individuals or organizations, or both, that need products in a given category and that have the ability, willingness, and authority to purchase them. Which of the following is the name given to the market for intermediaries who buy finished products and sell them for a profit? a. Consumer market b. Reseller market c. Industrial market d. Government market

b

Firms use a wide variety of methods for training employees—both for initial job skill training and for continual job performance improvement. Which of the following is not important for an effective training and development program? a. Setting benchmarks b. Surveying potential participants c. Developing measurable objectives d. Gauging program effectiveness

b

Marketing is based on many different relationships between customers, wholesalers and producers, buyers, and sellers. What does the term relationship marketing refer to? a. Measuring a customer's worth (sales minus costs) to a business during one's lifetime b. Marketing decisions and activities focused on achieving long-term, satisfying relationships with customers c. Using information about customers to create marketing strategies that develop and sustain desirable customer relationships d. Retaining customers by offering them big rewards

b

There are many reasons for encouraging cultural diversity within the workplace, which of the following is not a good reason to engage in hiring for cultural diversity? a. Companies that are culturally diverse develop a good reputation as favoring women and minorities. b. It reduces payroll expenses. c. Cultural diversity strengthens the organization. d. Employees from diverse backgrounds and cultures bring new perspectives to the workplace.

b

Which of the following is not a management resource provided by the Small Business Administration? a. Free publications b. Free assistance in closing failed small businesses c. Counseling, courses, conferences, and workshops d. Free technical assistance

b

Which of the following is not a purpose for management undertaking performance appraisals of employees? a. To help the organization monitor its employee selection, training, and development b. To let other employees see that there are rewards for good performance c. To provide an effective basis for distributing rewards d. To let workers know how well they are doing and how they can improve

b

the small Business Administration (SBA) defines a small business as "one which is independently owned and operated for profit and is not dominant in its field". how small must a firm be to not dominate its field?

by the SBA's definition, the factors that determine the size of a business depend on the particular industry it is in

Consumer buying behavior is affected by the individual's buying power. Which of the following is not included in an individual's buying power? a. Personal income b. Disposable income c. Interest and dividend income d. Discretionary income

c

To determine the potential of a specific market segment an organization makes predictions based on a specific relevant time frame, geographic boundaries, and an estimate for the specific product item, product line, or an entire product category. What is the name given to the estimate of the amount of a product that an organization expects to sell during the specific period based on a specified level of marketing effort? a. Market prediction b. Marketing research c. Sales forecast d. Sales data mining

c

Which part of the marketing concept is concerned with using information about present and potential customers to provide a product that will satisfy them at a price that is acceptable to them, that will yield a profit, that will promote the product, and ensure that the product is distributed so that it is available to customers where and when it is needed? a. Summarizing b. Developing c. Implementing d. Surveying

c

franchising agreements fall into 3 general categories. which of the following is not one of those categories? a. a producer licenses distributors to sell a given product to retailers b. a franchisor supplies brand named, techniques, or other services instead of a complete product c. a distributor franchises the channels of distribution to franchisees d. a manufacturer franchises retail stores to sell its products

c

When considering the external marketing environment, organizations must consider _________________, which is the actions of competitors who are in the process of implementing their own marketing plans

competitive forces

_______________ often differs based on the product being purchased. For instances, low-cost items are purchased with routine response behavior and very little search or decision-making, but expensive, seldom-purchased items call for extended research and decision making.

consumer buying behavior

Businesses need to direct their product marketing strategies to the individuals most likely to purchase it. Often marketing managers examine potential markets for their possible effects on the firm's sales, costs, and profits. Which of the following is the designation given for the group to which marketing managers direct the focus of their marketing efforts for a product? a. Mixed market b. Potential market c. Market segment d. Target market

d

Buying behavior may be defined as the decisions and actions of people involved in buying and using products. Which of the following is normally included as a major focus in the study of buying behavior? a. Governmental buying behavior b. Personal buying behavior c. Institutional buying behavior d. Consumer buying behavior

d

Employers engage in recruiting to find qualified applicants for open positions within the firm. Recruiting can be external—seeking candidates outside the business, or internal—seeking applicants from within the firm. Which of the following is not part of internal recruitment? a. Promoting employees to a higher-level position within the firm b. Transferring employees from one position to another at the same level c. Posting the job on internal job boards d. Selecting the candidate with the most qualifications for the position

d

TQM has been shown to benefit a company beyond improving a product. which of the following isn't a benefit of TQM? a. higher return on sales and investments b. lowering of overall operating costs c. improved ability to use premium pricing d. improved ability to engage in competitive pricing

d

a contingency plan outlines alternate courses of action that may be taken if an organization's other plans are ______ or become ________

disrupted/ineffective

which of the following is true concerning TQM?

it is the coordination of efforts directed at improving customer satisfaction, increasing employee participation, strengthening supplier partnerships and facilitating an organizational atmosphere of continuous quality improvement

a(n) __________________ of appraisal is used when a manager estimates the employee's performance level using a ranking

judgmental method

what are the advantages of buying an existing business?

known entity existing customer base employees reputation cash flow

Human Resources management (HRM) is all activities involved in acquiring, ____________, and developing an organization's human resources

maintaining

_______________ is an important step of the marketing process because it involves collecting and analyzing data on what consumers want and need, their consumption habits, trends, and changes in the marketing environment.

marketing research

management is not a step-by-step procedure that can be carefully mapped out and calendared, it is a _____ with a feedback loop that represents flow

process

By Abram's Company buying products to use in the manufacture of other products, it has demonstrated that it is part of the ____________

producer market

________ refers to the activity of trying to attract qualified applicants for a job

recruting

which of the following is true about the relationship of small businesses to large businesses?

small businesses challenge larger, established firms in many ways, causing them to become more efficient and more responsive to consumer needs

studies show that the incidence of innovation among ____ business workers is significantly higher than among workers in ___ businesses

small/large

the growth of women and minorities in franchising is attributable to which of the following activities?

special outreach programs designed to encourage franchisee diversity

planning is an essential part of managing an enterprise. a(n) ____ plan is developed as a guide during the planning process for major policy setting and decision making

strategic

having a business plan causes a new business owner to think through all of the aspects of business ownership, costs, capital needed for start-up, and can be used to review company goals and benchmark when they are met. which of the following is true about the company and industry portion of the business plan?

this section of the business plan gives the background of the company, explains the legal business form it will take, provides information about the products or services to be offered, reviews potential customers, current competitors, and the business's future.

the goal of a diversity training program is __________________

to improve workplace attitudes and behaviors

what is the purpose of an organization's mission statement?

to make a statement of what makes the organization different from others

total quality management can be a boon to a business in many aspects of its operation, however it will not work if management fails in two crucial areas. which of the following statements most closely articulates the issues that, if left unaddressed, could cause TQM to fail?

top management must be strongly committed to TQM and must coordinate the specific elements of a TQM program so they work in harmony with each other.