MGMT 470 Test 3 Review (6-10 and case studies)

Industry

A collection of businesses with a common line of products or services

Prototype

A full-scale working model used to test a design concept by making actual observations and necessary adjustments.

Industry Analysis

A method to (1) identify an industry's profit potential and (2) derive implications for a firm's strategic position within an industry.

Brand Ambassador

A real person who, under contract with the brand's marketing organization, acts as a spokesperson for the brand (related to affiliates)

Lean Business Practice

An application by Eric Ries that addresses the specifics of new business creation, particularly internet-based businesses, where rapid experimentation and constant monitoring of viewers' choices are possible. Include a set of tried and true methods that can lessen capital requirements and reduce cash outflows from the business (reduces the financial risk of start-up and early operations when cash is often scarce)

Mission Statement

a statement of the firm's business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions

Blue Ocean Strategy

a strategy based on creating a new product or service that has no competitors

Differentiation Strategy

a type of generic strategy aimed at clarifying how one product is unlike another in a mass market

Bootstrapping

finding a low cost or no-cost way to do something is especially important for firms early in their lives because one of the major threats to the survival of new firms is undercapitalization

Legitimacy

generalized perception or assumption that the actions of an entity are desirable, proper, or appropriate within some socially constructed system of norms, values, beliefs, and definitions

Heuristics

simply rules of thumb that are commonly used to estimate firm value in relation to some easily observable characteristic of the business

Primary goal for performing due diligence

the accuracy of the seller's information and appraise its value.

Augmented product

the actual product plus other supporting features such as a warranty, credit, delivery, installation, and repair service after the sale

Tangibility

the appearance of physical facilities, equipment, personnel, and communication materials

Replacement Value

the cost to acquire an essentially identical asset

Book Value

the difference between the original acquisition cost and the amount of accumulated depreciation

Business Format Franchising

the franchisor provides to the franchisee not just its trade name, products and services, but an entire system for operating the business.

Core Competencies

the main work of a firm in a particular line of business. those skills that you and all competitors have

Churn

the number of consumers who stop using a product or service, divided by the average number of consumers of that product or service

Bricolage

the practice of making something from whatever you have at hand

Due Diligence

the process of investigating a business to determine its value and potential for investment

Buyouts

the purchase of substantially all of an existing business. Are restricted to businesses that have a formal legal form of organization, including corporations, limited liability companies, and some partnerships.

Earnings Multiple

the ratio of the value of a firm to its annual earnings

Operational Plans

very short-term plans that specify what actions individuals, work groups, or departments need to accomplish in order to achieve the tactical plan and ultimately the strategic plan

The customer developmental funnel

- awareness - interest - consideration - purchase - keep customers - unbundling - up sell - cross sell - referals

Operating Margins

-measures profits earned from the organization's main line of business (EBIT/SALES)

Primary research

Conducting research to collect new data to solve a marketing information need.

Break Even

Costs and expenses equal to income revenues

Vision Statement

expresses what the organization should become, where it wants to go strategically

Business Incubators

Facilities that house small businesses and provide support services during the company's early growth phases

Distinctive Competencies

Firm-specific strengths that allow a company to differentiate its products and/or achieve substantially lower costs to achieve a competitive advantage. key factors in describing the competitive advantage you offer your customers

Keys to customer relationship management (CRM)

Focuses on monitoring and promoting customer interest and loyalty

cognitive dissonance

Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions

Value Strategy

Investor looks for stocks with strong fundamentals - including earnings, dividends, book value, and cash flow - that are selling at a bargain price, given their quality. The value investor seeks companies that seem to be incorrectly valued (undervalued) by the market and therefore have the potential to increase in share price when the market corrects its error in valuation.

KPIs

Key performance indicators measure strategic performance

Value Proposition

Small business owners' unique selling points (also known as benefits) that customers can expect from your goods or services, including benefits that differentiate your offering from those of the competition. (The relation of product or company capabilities to customer pains and gains)

external legitimacy

The extent to which a small business is taken for granted, accepted or treated as viable by organizations or people outside the small business or the owner's family.

Business Life Cycle

The sequence or pattern of developmental stages any business goes through during its life span.

Takeovers

This is when another business buys out another by purchasing a majority stake in the target company. possible only in businesses that have stock that is freely transferable without the permission of management or other owners

Elevator Pitch

Very concise presentation of an idea covering all of its critical aspects, and delivered within a few seconds (the approximate duration of an elevator ride)

Scope

Where do you plan to sell? (locally, regionally, nationally, globally)

Scale

Whom do you plan to sell? (everyone or targeted markets)

Sole Proprietorship

a business owned and managed by a single individual

A spin off

a business that is created by separating part of an operating business into a separate entity

Earned media

a category of promotional tactic based on a public relations or publicity model that gets customers talking about products or services (media relations, media kits, press releases, public relations, investor relations, guerrilla marketing)

Paid media

a category of promotional tactic based on the traditional advertising model, whereby a brand pays for media space (ad placement) (commercial/advertisement)

Synergy

a combination in which the whole is greater than the sum of its component parts

Mass Market

a customer group that involves large portions of the population

Cost Strategy

a generic strategy aimed at mass markets in which offers a combination of cost benefits that appeals to the customer

Focus Strategy

a generic strategy that targets a portion of the market, called a segment or niche

Niche Market

a narrowly defined segment of the population that is likely to share interests or concerns

Owned media

a new category of promotional tactic based on brands becoming publishers of their own content in order to maximize the brands' value to customers (websites, newsletter, emails, signage, etc)

Strategy

a plan of action or policy designed to achieve a major or overall aim.

Competitive Advantage

a set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition

competetive advantage

a set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition

Key resource acquisition

also called bulk asset purchases, are the only way a sole proprietorship may be purchased. it comprises purchasing only the assets of the business

Product Distribution Franchising

an agreement that provides specific brand name products which are resold by the franchisee in a specified territory. two examples of this type of franchising are snap on tools and auto dealerships

Trade Name Franchising

an agreement that provides to the franchisee only the rights to use the franchisor's trade name and/or trademarks

Global Mindset

an individual's ability to perceive, appreciate, and empathize with people from other cultures, and to process complex cross-cultural information

Entry Wedge

an opportunity that makes it possible for a new business to gain a foothold in a market

Retrenchment

an organizational life cycle stage in which established firms must find new approaches to improve the business and its chance for survival

Incremental Innovation

an overall strategic approach in which a firm patterns itself on other firms, with the exception of one or two key areas

Intangibles

assets, such as patents or trademarks, and liabilities, such as accounts payable, that have no physical existence

A pivot

changing some aspect of its core products or services

First Step for performing due diligence

company capitalization (shows you just how big the company is by calculating the total dollar market value of its outstanding shares.)

Me-Too Enterprises

company's product designed to be similar to a popular product made by another company

Co-marketing

efforts among a number of firms to jointly market their products and services

Altruism

if your product helps the community, a group, the environment, or the world, it is a benefit

Comparable Sales of other Firms

in the same industry are commonly used to estimate the value of a business. this method has two major problems. first, no two firms are exactly alike. second, there are often no recent sales to use for comparison

Shared media

media shared by consumers with other consumers, such as social media, blogs, mobile media, and viral channels as well as traditional word of mouth (social media mentions, hashtags)

Strategy Focus

on the competition, with the key being the goods' , services', or firms competitive advantage over the other firms

Marketing Focus

on the customers, with the key being the goods' or services' value proposition

Secondary research

past research which has already been performed and often already published (challenge is finding good data, unbiased way, fairly, reputable source)

Effectuation

people may assess the assets available to them and the limits under which they must operate to establish the goal to be obtained and the methods of reaching the goal (carefully considering resources available)

Conversion rate

percentage of consumers who buy a product after viewing it