McGrawHill Chapter 1 and 2
A(n) ___________ is a person or group that has an interest or concern in an organization.
Stakeholder
What consists of all parties involved, directly or indirectly, in obtaining raw materials or a product?
Supply Chain
Which of the following occurs when businesses sell products or services for more than they cost to produce?
A Profit
A competitive ______ is a feature of a product or service on which customers place a greater value than they do on similar offerings from competitors.
Advantage
Select all that apply Select 3 goals or objectives that a leadership plan might include to achieve a solid business strategy.
Attracting new customers Increasing sales Decreasing costs
What is the actual recording of the business's transactions, without any analysis of the information.
Bookkeeping
Match the term on the left with its correct definition on the right.
Bookkeeping: The actual recording of the business's transactions, without any analysis of the information. Accounting: Analyzes the transactional information of the business so the owners and investors can make sound economic decisions. Analyzes the transactional information of the business so the owners and investors can make sound economic decisions.
What is a leadership plan that achieves a specific set of goals or objectives?
Business Strategy
_______ power is the ability of buyers to affect the price they must pay for an item.
Buyer
What is the ability of buyers to affect the price they must pay for an item?
Buyer Power
Match the specific force described by Porter (on the left) with its correct analysis for the airline industry (on the right).
Buyer Power: - High because customers have many airlines to choose from Supplier Power: - High because there are limited plane and engine manufacturers to choose from Threat of substitute products or services: - High because of alternatives, such as videoconferencing and virtual meetings Threat of new entrants: - High because new airlines are constantly entering the market Rivalry among existing competitors: - High because of the existence of website like Travelocity.com that force competition based solely on price
A value _____ analysis views a firm as a series of business processes that each add value to the product or service.
Chain
Select all that apply Select the three things a supplier can do to influence an industry if it has high supplier power.
Charging higher prices Shifting costs to industry participants Limiting quality or services
Select all that apply Select the three things a supplier can do to influence an industry if it has high supplier power.
Charging higher prices. Limiting quality or services. Shifting costs to industry participants.
What is a feature of a product or service on which customers place a greater value than they do on similar offerings from competitors?
Competitive Advantage
What is the process of gathering information about the competitive environment, including competitors' plans, activities, and products, to improve a company's ability to succeed?
Competitive Intelligence
In business, supplier power is the ability suppliers have to ______.
Control the prices they charge customers.
What is an artificially created legal entity that exists separate and apart from those individuals who created it and carry on its operations?
Corporation
Match the term on the left with its correct definition on the right.
Corporation: An artificially created legal entity that exists separate and apart from those individuals who created it and carry on its operations. Shareholder: Another term for business owners. Limited liability: Means that the shareholders are not personally liable for the losses incurred by the corporation.
Product __________ occurs when a company develops unique differences in its products or services with the intent to influence demand.
Differentiation
What deals with the strategic financial issues associated with increasing the value of the business while observing applicable laws and social responsibilities?
Finance
__________ deals with the strategic financial issues associated with increasing the value of the business while observing applicable laws and social responsibilities.
Finance
Match the term on the left with its correct definition on the right.
Financial accounting: Involves preparing financial reports that provide information about the business's performance to external parties such as investors, creditors, and tax authorities. Managerial accounting: Involves analyzing business operations for internal decision making and does not have to follow any rules issued by standard-setting bodies such as GAAP.
Select all that apply Select two support value activities.
Firm infrastructure Technology development
What occurs when a company can significantly increase its market share by being first with a new competitive advantage?
First Mover Advantage
Broad strategies reach a large market segment, whereas ______ strategies target a niche or unique market.
Focused
Select all that apply Select the three generic business strategies Porter identified for entering a new market.
Focused strategy Broad differentiation Broad Cost Leadership
If buyer power is ______, customers can force a company and its competitors to compete on price, which typically drives prices down.
High
Rivalry among existing competitors is _____ when competition is fierce in a market and ______ when competitors are more complacent.
High; Low
The threat of new entrants is _______ when it is easy for new competitors to enter a market and _______ when there are significant entry barriers to joining a market.
High; Low
What includes the policies, plans, and procedures for the effective management of employees?
Human Resources
Match the primary value activity on the left with its correct definition on the right.
Inbound Logistics: - Acquires raw materials and resources and distributes to manufactures as required. Operations: - Transforms raw materials or inputs into goods and services. Outbound logistics: - Distributes goods and services to customers. Marketing and sales: - Promotes, prices, and sells products to customers. Service: - Promotes, prices, and sells products to customers.
Select all that apply Select three primary value activities.
Inbound logistics Outbound logistics Marketing and sales
Porter's Five Forces Model analyzes the competitive forces within the environment in which a company operates to assess the potential for profitability in a(n) _________.
Industry
Competitive __________ is the process of gathering information about the competitive environment, including competitors' plans, activities, and products, to improve a company's ability to succeed.
Intelligence
Match the term on the left with its correct definition on the right.
Internal rate of return: The rate at which the net present value of an investment equals zero. Return on investment: Indicates the earning power of a project and is measured by dividing the benefits of a project by the investment. Cash flow analysis: A means to conduct a periodic check on the company's financial health. Break-even analysis: A way to determine the volume of business required to begin to make a profit at the current prices charged for the products or services.
The ____________ liability corporation is a hybrid entity that has the legal protections of a corporation and the ability to be taxed (one time) as a partnership.
Limited
What is a hybrid entity that has the legal protections of a corporation and the ability to be taxed (one time) as a partnership?
Limited Liability Corporation (LLC)
What rewards customers based on their spending?
Loyalty Programs
__________ segmentation is the division of a market into similar groups of customers.
Market
What is the division of a market into similar groups of customers?
Market Segmentation
What is the process associated with promoting the sale of goods or services?
Marketing
What includes the variables that marketing managers can control in order to best satisfy customers in the target market?
Marketing Mix
Select all that apply Select three primary value activities.
Marketing and sales Outbound logistics Inbound logistics
Match the term on the left with its correct definition on the right.
Marketing: The process associated with promoting the sale of goods or services. Marketing communications: Seek to build product or service awareness and to educate potential consumers on the product or service.
Which company is using a broad market and high cost strategy?
Nieman Marcus
What are similar to sole proprietorships, except that this legal structure allows for more than one owner.
Partnership
Match the term on the left with its correct definition on the right.
Partnerships: Similar to sole proprietorships, except that this legal structure allows for more than one owner. Partnership agreement: A legal agreement between two or more business partners that outlines core business issues. Capital: Represents money whose purpose is to make more money, for example, the money used to buy a rental property or a business.
What analyzes the competitive forces within the environment in which a company operates to assess the potential for profitability in an industry?
Porter's Five Forces Model
What are generic business strategies that are neither organization nor industry specific and can be applied to any business, product, or service?
Porter's Three Generic Business Strategies
What acquires raw materials to manufacture, deliver, market, sell, and provide after-sales services?
Primary Value Activities
What acquires raw materials to manufacture, deliver, market, sell, and provide after-sales services?
Primary value activities
What occurs when a company develops unique differences in its products or services with the intent to influence demand?
Product Differentiation
Match the term on the left with its correct definition on the right.
Profit: Occurs when businesses sell products or services for more than they cost to produce Loss: Occurs when businesses sell products or services for less than they cost to produce
Angela Lewis owns and operates one of the most successful local book stores in Buffalo, called The Bookworm. Each time a customer purchases their 10th book at The Bookworm, they receive a $5 off coupon. What is Angela attempting to create with her $5 off marketing program?
Reducing buying power through loyalty program
Human _________ includes the policies, plans, and procedures for the effective management of employees.
Resources
What is high when competition is fierce in a market and low when competitors are more complacent?
Rivalry Amongst Competitors
What is high when competition is fierce in a market and low when competitors are more complacent?
Rivalry among existing competitors
A(n) ________ analysis evaluates an organization's strengths, weaknesses, opportunities, and threats to identify significant influences that work for or against business strategies. (Use the acronym)
SWOT
What evaluates an organization's strengths, weaknesses, opportunities, and threats to identify significant influences that work for or against business strategies?
SWOT Analysis
What is the function of selling a good or service and focuses on increasing customer sales, which increases company revenues?
Sales
__________ is the function of selling a good or service and focuses on increasing customer sales, which increases company revenues.
Sales
The first-mover advantage occurs when a company can _____.
Significantly increase its market share by being first with a new competitive advantage
The ___________ proprietorship is a business form in which a single person is the sole owner and is personally responsible for all the profits and losses of the business.
Sole
What is a business form in which a single person is the sole owner and is personally responsible for all the profits and losses of the business?
Sole Proprietorship
Companies can reduce buyer power with loyalty programs, which reward customers based on their _____.
Spending
Who is a person or group that has an interest or concern in an organization?
Stakeholder
What is the suppliers' ability to influence the prices they charge for supplies (including materials, labor, and services)?
Supplier Power
A ______ chain consists of all parties involved, directly or indirectly, in obtaining raw materials or a product.
Supply
What includes firm infrastructure, human resource management, technology development, and procurement?
Support Value Activities
________ costs are costs that make customers reluctant to switch to another product or service.
Switching
What are costs that make customers reluctant to switch to another product or service?
Switching Costs
Competitive advantages are typically ___________.
Temporary
What includes the four phases a product progresses through during its life cycle including introduction, growth, maturity, and decline?
The Product Life Cycle
What is high when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market?
Threat of new entrants
What characteristic is high when there are many alternatives to a product or service and low when there are few alternatives from which to choose?
Threat of substitute products or services
Porter's __________ strategies are generic business strategies that are neither organization nor industry specific and can be applied to any business, product, or service.
Three Generic
What are the strategies for entering a new market including broad cost leadership, broad differentiation, and focused strategy?
Three generic business strategies
What views a firm as a series of business processes that each add value to the product or service?
Value Chain Analysis
Provides customer support after the scale of goods and services.
Walmart
Which company is using a broad market and low cost strategy?
Walmart
The product life __________ includes the four phases a product progresses through during its life cycle including introduction, growth, maturity, and decline.
cycle
The marketing ________ includes the variables that marketing managers can control in order to best satisfy customers in the target market.
mix