GB 101 final

What is the role of benefits? Name some examples of benefits

Benefits are in place to increase employee security, morale, and motivation. Some benefits are health insurance, vacations, retirement pans, legal advice, tuition reimbursement, child care, and disability.

What types of financing do small entrepreneurs typically use? What are some of the pros and cons of each?******

- equity financing: benefits include the ability to include personal assets, sell or borrow against the value of of such assets, and fins investors, the downside would be the requirement of the owner to share the profits, and sometimes control, with the investors. -debt financing: benefits including the ability to structure a favorable repayment schedule and access to lines of credit, and downsides would be that banks decide how much to loan out and may take personal assets as collateral

How do publicity and advertising differ? How are they related

-Advertising is paid for by the firm while publicity is not -Publicity and advertising are both forms of communication through the mass media.

Describe the typical marketing channels for consumer products.*****

-Channel A moves products directly from producers to consumers. -channel B products move from producers to retailers then to consumers. -channel C products move from wholesalers to producers to retailers then to consumers. -channel D products move from agents to wholesalers to producers to retailers then to consumers.

Distinguish between an absolute advantage and a comparative advantage. Cite an example of a country that has an absolute advantage and one with a comparative advantage.

-Comparative advantage is when a country specializes in products that it can effectively supply better than other products, whereas absolute advantage is when a country is the only producer of an item. -Russia has an absolute advantage in the rare mineral yuksporite and Hawaii has a comparative advantage in producing pineapples.

What is digital marketing?*****

-Digital marketing is the use of all digital media, including the internet and mobile and interactive channels, to develop communication and exchanges with customers.

What impact do digital media have on the marketing mix?

-Digital media increases the speed of customer communications, makes reaching target markets easier, more affordable, and faster, and also helps marketers utilize new resources in seeking out and communicating with customers.

3 target market strategies

1. business-to-business marketing: marketing products to customers who will use the product for resale, direct use in daily operations, or direct use in making other products. 2. total-market approach or mass marketing: where a business tries to appeal to everyone and assume that all buyers have similar needs and wants. 3.multisegment approach: the marketer aims its marketing efforts at two or more segments and develops a market strategy for each.

name five advantages of a sole proprietorship*****

1. ease and low cost of formation 2. secrecy 3. freedom in distribution and use of profits 4. high flexibility and control of the business 5. freedom from government regulations

Distinguish between the two ways to set the base price for a new product

1. price skimming: charging the highest possible price that buyers will pay, generally uses with luxury goods and allows the company to generate as much revenue as possible 2.to set a base price is penetration price: a low price meant to help a product enter a market and gain share rapidly, this is generally used when marketers think there will rapidly be new competition in the market.

List the variables in the marketing mix. How is each used in a marketing strategy?*******

1. products: they provide satisfaction and benefits to the customer. 2. price: it establishes the value placed on a good or service. The third is distribution, this makes products available to customers. 3.promotion: it influences the individuals, groups and organizations to accept goods, services, and ideas.

What are the benefits associated with a diverse workforce?

A diverse workforce creates more productive use of human resources, reduces conflict among employees of different demographics, create more productive working relationships among diverse employees as they lean about and accept each other, increases commitment to and sharing of organizational goals, increases innovation and creativity as employees bring new and unique perspectives, and increases ability to serve the needs of an increasingly diverse customer base

At what levels might a firm get involved in international business?

A firm can get involved in international business through exporting and importing, trading companies, licensing and franchising, contract manufacturing, outsourcing, offshoring, joint ventures and alliances, direct investments, and multinational corporations

What is e-business?******

E-business is carrying out the goals of businesses through utilization of the internet

What decisions must an entrepreneur make when starting a small business?

Entrepreneurs must make decisions about form of ownership, financial resources needed, and weather to acquire an existing business, start a new one, or buy a franchise, when starting a small business

Why do managers need to understand the needs of their employees?

Managers need to understand the needs of their employees in order to motivate them in effective ways

The most common example of a cooperative is a farm co-op. Explain the reasons for this and the benefits that result for members of cooperatives

Many co-ops exist in farming communities because the co-op can order and store large amount of farming supplies. This brings benefits to the farmers including cost reductions, increased efficiency, more efficient distribution, and generating demand for its member's products through advertisement. These benefits would not be possible if farmers were purchasing good on an individual basis.

How can businesses utilize new digital and social networking channels in their marketing campaigns?

Marketers can use social networking to reach out to consumers in different target markets and to promote products and build consumer relationships.

Explain Maslow's hierarchy of needs. What does it tell us about employee motivation?

Maslow's hierarchy of need is a theory that arranges the fire basic needs of people - physiological, security, social, esteem, and self-actualization - into the order in which people strive to satisfy them. This tells us that employees will be more motivated if managers prioritize their highest needs (physiological, security, and social) through their work

What are some of the privacy concerns associated with the Internet and e-business? How are these concerns being addressed in the United States?******

Misuse of cookies or websites storing of personal information are some of consumers' privacy concerns with e-business. Because of these concerns, the FTC is considering developing regulations that would limit the amount of consumer information information that businesses can gather online.

Describe the motivation process******

Motivation starts with a goal or a need, then managers instilling goal directed behavior in their employees leading to satisfaction of the goal

How does an organization use marketing activities to achieve its objectives?*****

Organizations use the marketing concept, the business must find out what consumers desire and then develop the good, service, or idea, then they must get the product to the customer, also continually adapt to keep up with consumer needs and wants.

How do political issues affect international business?

Political issues are constantly changing by enacting tariffs, embargos, or other types of trade restrictions, affecting international business daily. Natural disasters also effect international business because of the etreme and sudden shift of power. Political concerns may also lead to formation of cartels, or monopolies and not compete with each other in order to generate competitive advantage

control

the customer's ability to regulate the information they view as well as the rate and exposure to that information. These terms are all characteristics that distinguish digital marketing from traditional marketing

which management philosophy stresses employee participation in all aspects of decision making

theory Z

To Herzberg which of the following is a hygeine factor?

wages

if you think emplyees are basically lazy you subscribe to theory....

x

Describe the negotiation process through which management and unions reach an agreement on a contract.

The negotiation process management and unions go through to reach agreements starts with each side preparing a list of their demands and concessions followed by negotiation teams establishing rules and scheduling meetings, they negotiate and compromise. Next the contract is either ratified, which results in the union representing workers at the work facility, or rejected, which leads to unions striking, boycotting, and picketing, and management doing lockouts and strikebreakers. After these results settle, the contract is renegotiated and thrown back to the negotiation and compromise stage.

What are the principal reasons for the high failure rate among small businesses?*******

The principal reason for the high failure rate of small businesses are undercapitalization, inexperience or incompetence of management, and the inability to cope with growth

What is marketing

a group of activities designed to expedite transactions by creating, distributing, pricing, and promoting good services and ideas.

marketing strategy?***

a plan of action for developing, pricing, distributing, and promoting products that meet the needs of specific customers

market segmentation?

a strategy whereby a firm divides the total market into groups of people who have relatively similar product needs

addressability

ability of customers to express their needs and wants directly to the firm in response to its marketing communications

functions of marketing *****

are buying, selling, transporting, storing, grading, financing, marketing research, and risk taking.

Why are marketing research and information systems important to an organization's planning and development of strategy?

because it guides an organization in their marketing systems and information systems give access to information about customers from sources inside and outside of the organization

how does marketing facilitate exchanges?

by allowing individuals and organizations to obtain what they need and want

which need desires self-respect and the respect of others?

esteem

Why are small businesses so important to the U.S. economy?*****

Small businesses are so important because they employ about half of private workers, represent 98% of US exporters of goods, contribute 31% of the value of exported goods, are largely responsible for fueling job creation and innovation, and provide opportunities for minorities and women to succeed

How do social and cultural differences create barriers to international trade? Can you think of any social or cultural barriers (other than those mentioned in this chapter) that might inhibit international business?*****

Social and cultural differences create barriers to international trade because things are perceived differently in different countries and tactics that work well I one country may not work in another. Personal communication norm differences can also affect international trade because they can make someone comfortable or uncomfortable.

Describe the franchising relationship******

The franchisee acquires the rights to a name, logo, methods of operation, national advertising, products, and other elements associated with the franchisers business I return for a financial commitment and the agreement to conduct business in accordance with the franchisers standard of operations

What was the goal of the Hawthorne studies? What was the outcome of those studies?*****

The goal of the Hawthorne studies was to determine what physical conditions in the workplace, such as light, and noise levels, would stimulate employees to be most productive. The studies revealed that human factors influence workers' behavior and that managers who understand the needs, beliefs, and expectations of people have the greatest success in motivating their workers

How is the Internet changing the practice of marketing?*******

The internet lowers the cost and increases the efficiency of communication, which benefits any industry that relies one the flow of digital information

Explain how a countertrade agreement can be considered a trade promoter

can allow nations with limited currency to barter with raw materials

the __________ studies marked the beginning of a concern for human realtions

hawthorne

quota

is a restriction on the number of units of a particular product that can be imported into a country

What is an import tariff?

is a tax levied by a nation on goods imported into the country

dumping?

is the act of a country or business selling products at less than what it costs to produce them

Compare and contrast licensing, franchising, contract manufacturing, and outsourcing

-Licensing allows one company to use another companies name, products, patents, brands, trademarks, raw materials, and/or production processes in exchange for a fee or royalty. -Franchising is a form of licensing, but the company agrees to provide the name, logo, operations, advertising, products and other elements associated with the franchise in return for financial commitment and the agreement to follow the franchise's standards. -Contract manufacturing is similar to these in that the firm name is used, but a foreign company produces the product. Outsourcing is the transferring of operations, but not the rest of a firms assets

How can marketers utilize digital media to improve business?******

-Marketers can utilize digital media by using real-time exchanges to create and stimulate interactive communication, forge closer relationships, and learn more accurately about consumer and supplier needs.

Which is best? Under what circumstances might each be used?

-Multinational strategies could be used if there are large consumer differences from one country to the other. -Global strategies could be used when cultural and social differences do not affect the consumer habits between nations.

Compare multinational and global strategies

-Multinational strategies promote customization of products according to cultural, technological, regional, and national differences, while global strategies standardized products for the world as if it were a single entity. -Global strategies are seen as better because more and more companies are moving in that direction

What does the personal selling process involve? Briefly discuss the process.

-Personal selling is direct, two-way communication with buyers and potential buyers -The process involves prospecting potential buyers, approaching customers, presenting the product, handling objections by countering reason for not buying products, closing or asking the customer to buy, a following up to check the customer's satisfaction

Contrast how profits are distributed in sole proprietorships, partnerships, and corporations.

-Profits form sole proprietorships belong exclusively to the owner, so all profits are distributed directly to them. -In partnerships, profits are distributed to the partners in the proportions specified in the articles of partnership, even if that ratio does not reflect the work of each partner. -Profits from corporations go first to preferred stock holders then to common stock holders

List the circumstances in which the push and pull promotional strategies are used

-Push strategies are used to motivate intermediaries to push the product down to their customers and are exclusively advertising, used when pushing a product through marketing channel C. -Pull strategies are used to exert pressure on marketing channel members to make the product available, used when cycling through marketing channel C.

which form of business requires the most specialization of skills? Which requires the least? Why?

-Sole proprietorship owning requires the most amount of skills because the owner must perform many function of the business. -Corporations require the least because they have people to perform different specialized functions for them

What are the advantages of starting a small business? The disadvantages?****^^***

-The advantages of staring a small business include independence, low costs, high flexibility, ability to focus, and good reputations. -The disadvantages include high stress levels and high failure rates

Would you rather own preferred stock or common stock? Why?******

-common stock -I would not have claim to profits before other stockholders, but I would have say in company decisions and first right to purchase of more common stocks.

List two different types of partnerships and describe each

-general partnership: involves a complete sharing in both the management and the liability of the business. -limited partnership:a business or organization has at least one general partner, who assumes unlimited liability, and at least one limited partner, whose liability is limited to his or her investment in the company.

the product life cycle? *****

-introductory stage:marketers on making consumers aware of the product -growth stage: firms emphasize the product's benefits and identify market segments that want these benefits -maturity stage: there is severe competition and firms make heavy expenditures -decline stage: firms may cut certain models and items, reduce expenditures, then eventually phase out the product and replace it.

List the types of management and financial assistance that the Small Business Administration offers.

-management assistance such as counseling for firms in difficulty, consulting on improving operations, and training for owners, managers, and employees. - financial assistance they offer advice from other small business owners, suppliers, and customers

Compare the liability of the owners of partnerships, sole proprietorships, and corporations.

-partnerships and sole proprietorships, the owner or owners have unlimited liability for the debts incurred by the business. -Corporations have limited liability, assets and liabilities are separate from the owners.

Differentiate among the different types of corporations

-private corporations are owned by just one or a few people who are closely involved in managing the business, such as Publix Super Markets -Public corporations are corporations whose stock anyone may buy, sell., or trade, such as Amazon. -Quasi-public corporations are owned and operated by the federal, state, or local government, such as NASA. -Nonprofit corporations focus on providing a service rather than earning a profit but are not owned by a government entity, such as the American Red Cross

describe the factors that influence buying behavior

-psychological:perception based on your senses, motivation from an inner drive, learning from information and experiences, attitude or your feelings about -social variables: reference groups such as families, professional groups, civic organizations, or other groups that buyers identify with, social classes determined by ranking people into higher or lower positions of respect, and cultural patterns of human behavior. `

What is the marketing concept? Why is it so important?****

-the idea that an organization should try to satisfy customers' needs through coordinated activities that also allow it to achieve its own goals. -It is important because it is necessary to meet the needs of customers to be successful.

What functions does a warehouse perform?

A warehouse receives, stores, and ships products

What activities are involved in acquiring and maintaining the appropriate level of qualified human resources? Name the stages of the selection process.******

Acquiring and maintaining human resources involves recruiting, selection, training, assessing performance, turnovers if needed, and employee compensation. The selection process stages are the application, the interview, testing, and reference checking.

What steps do companies generally take to develop and introduce a new product?

Companies generally develop an idea, screen the new idea, do a business analysis, go through product development, do test marketing, then fully introduce the product through commercialization

How might a country use import tariffs and quotas to control its balance of trade and payments?

Countries may increase or decrease import tariffs and quota to keep their balance of trade and payments where they want them.

Why do creators want to protect their intellectual property? Provide an example on the Internet where intellectual property may not be protected or where a copyright has been infringed.

Creators want to protect their intellectual property because they created the ideas and creative materials to solve problems, carry out applications, and educate and entertain others. YouTube is a website that has faced lawsuits because there has been lots of copyright infringement

What demographic, technological, and economic trends are influencing the future of small businesses?

Demographic trends that influence the future of small business include baby boomers, echo boomers or millennials, immigrants, and retailers specializing in ethnic products. Technological and economic trends influencing small businesses include the internet info sharing hubs, home based businesses, service exports and alternative fuel interest

What effect does devaluation have on a nation's currency? Can you think of a country that has devaluated or reevaluated its currency? What have been the results?

Devaluation decreases the value of a country's currency in relation to other country's currencies. Switzerland let the value of their currency rise by 30% against the euro and this resulted in an increase in the cost of exports which subsequently increased the value of their currency

What is probably the least flexible marketing mix variable? Why?

Distribution is the least flexible marketing mix variable because distribution decisions often commit resources and establish contractual relationships that are difficult if not impossible to change.

What are Herzberg's hygiene and motivational factors? How can managers use them to motivate workers?

Herzberg's hygiene factors include adequate wages, comfortable and safe working conditions, fair company policies, and job security. Motivational factors include achievement, recognition, involvement, responsibility, and advancement. Managers can work to satisfy motivational factors to promote productivity in employees

What is identity theft? How can consumers protect themselves from this crime?

Identity theft is when criminals obtain personal information that allows them to impersonate someone else in order to use their credit to obtain financial accounts and make purchases

What activities are involved in physical distribution?

Inventory control, transportation, warehousing, and materials handling are the activities involved in physical distribution

Distinguish among job analysis, job descriptions, and job specifications. How do they relate to planning in human resources management?

Job analysis is the process of determining what a job entails, job descriptions are written explanations of what a job entails from the finding of a job analysis, and job specification is a description of the necessary qualifications for a job. When HRM is planning for their employment needs they first determine what the company is in need of, then do a job analysis, from that they develop a job description and job specification to develop recruiting materials.

Identify and describe the job-design strategies

Job rotation is the movement of employees from one job to another in an effort to relieve the boredom often associated with job specialization. Job enlargement is the addition of more tasks to a job instead of treating each task as separate. Job enrichment is the incorporation of motivational factors, such as opportunity for achievement, recognition, responsibility, and advancement, into a job

What effect does a country's economic development have on international business?******

Less-developed countries a less likely to purchase nonessential products but are profitable in the way that they may be buying technology to improve their infrastructure

What level requires the least commitment of resources? What level requires the most?

Licensing requires the least amount of commitment of resources. Multinational corporations require the highest amount of commitment

Besides collective bargaining and grievance procedures, what other alternatives are available to labor and management to handle labor disputes?

On the labor side of the dispute, it may be handles by tactics such as picketing, strikes and boycotts. Management handles disputes with tactics such as lockouts and strikebreakers.

Name and describe some flexible scheduling strategies. How can flexible schedules help motivate workers?

One flexible scheduling strategy is flextime: a program that allows employees to choose their starting and ending times, provided that there are at work during a specific core period. Another is a compressed workweek: a four day or shorter period during which an employee works 40 hours. A third is job sharing: the performance of one full time job by two people on part time hours. Flexible schedules can motivate workers by creating a better balance of work and life, reducing stress, and saving on transportation

What are the two types of training programs? Relate training to kinds of jobs.

One type of training is on the job training, which allows workers to learn by performing tasks of the job, such as a server in a restaurant. The other type of training is classroom training, which teachers workers employees with lectures, conferences, videotapes, case studies, and web based training, an example of this would be a real estate agent.

Which marketing mix variable is the most flexible? Why?******

Price is the most flexible variable because of changes in supply and demand, effectiveness of others variable in the marketing mix, presence of substitutes, and environmental factors. Price can be set and changed in just a few minutes.

Why would secrecy in operating a business be important to an owner? *******

Secrecy may be important to a business owner because they do not want competitors obtaining their trade secrets

Which form of business organization has the least government regulation? Which has the most?*****

Sole proprietorships have the least government regulation and corporation have the most.

Discuss the impact of technological forces and political and legal forces on the market******

Technological forces improve distribution, promotion, and new-product development. Political and legal forces regulate the market and require organizations to be truthful and important things are documented.

How does the World Trade Organization encourage trade?

The WTO encourages trade by administering agreements, presenting forums for trade negotiation, handling disputes, monitoring national trade policies, providing assistance and training for developing countries, and cooperating with international organizations.

Why do large corporations want to become more like small businesses?

The continuing success and competitiveness of small businesses through rapidly changing conditions in the business world has influenced large corporations to want to become more like them

Contrast the assumptions of theory X and theory Y. Why has theory Y replaced theory X in management today?*****

Theory X states that employees generally dislike work, while theory Y states that workers like to work and will seek to improve under proper conditions. Theory Y has replaced theory X because companies have achieved success by focusing on employee empowerment

What is theory Z? How can businesses apply theory Z to the workplace?*****

Theory Z is a management philosophy that stresses employee participation in all aspects of company decision making. Businesses can apply theory Z to the workplace by giving more responsibility to employees so that it is shared with the management and hiring on long term employees

Why does turnover occur? List the types of turnover. Why do businesses want to reduce turnover due to separations?

Turnover occurs when employees quit or are fired and must be replaced. Types of turnover are promotions, transfers, and separations. Businesses want little turnovers due to separation because recruiting and training new employees is expensive.

Relate wages, salaries, bonuses, and benefits to Herzberg's distinction between hygiene and motivation factors. How does the form of compensation relate to the type of job?

Wages are financial rewards based on hours an employee works, salaries are financial rewards calculated on a weekly, monthly, or annual basis, bonuses are monetary rewards offered for exceptional performance, and benefits are nonfinancial employee compensations. Some of these compensations are more important to employees therefore must be given priority over others in the same way that Herzberg states that motivational factors should take precedence over hygiene factors.

those who chose being employee of the year over a pay raise are focused on which Herzberg factors?

motivational

Why are motivational strategies important to both employees and employers?

motvational strategies are important because they effect all of the relationships within an organization and they influence many areas such as pay, promotion, job design, training opportunities, and reporting relationships

What is the significance of a performance appraisal? How do managers appraise employees?

providing a base for compensation and reward decisions and generating information about the quality of the firms hiring abilities. Managers appraise employees objectively or subjectively. Objective appraisal is quantifiable and done through tests or data checking. Subjective appraisal relates employee performance to another standard, such as ranking of employees against each other and qualitative criteria.

Which fields tend to attract entrepreneurs the most? Why

retailing and wholesaling, services, manufacturing, and high technology tend to attract entrepreneurs the most because they are relatively easy to enter and require low initial financing

What form of organization would be most appropriate for a business requiring great secrecy?****

sole proprietorhsip

connectivity

the ability for consumers to be connected with marketers along with other consumers

interactivity

the ability of customers to express their needs and wants directly to the firm in response to its marketing communications

accessibility

the ability of the marketer to identify customers before they make a purchase