SOM 122 Final SG
controller
manages a firm's accounting activities by ensuring that the AIS provides the reports and statements needed for planning, decision making, and other management activities
four main purposes of goal setting
provides direction ad guidance, helps allocate resources, defines corporate culture, and helps managers assess performance
four major influences on consumer behavior
psychological, personal, social, cultural
specialty goods and services
purchased infrequently, expensive, consumer decides on a precise product and will not accept substitutions and spends a good deal of time choosing the perfect item; luxury jewelry, wedding gown, healthcare insurance
shopping goods and services
purchased less often, more expensive, consumers may shop around and compare products based on style, performance, color, price, and other criteria; tv, tires, hotel reservation
current dividend yield
rate of return from dividends paid to shareholders (in the case of interest from a loan it is called the current interest yield) - Calculated by dividing the yearly dollar amount of dividend income by the investment's current market value
time value of money
recognized the basic fact that, when it's invested over time, money grows by earning interest or yielding some other form of return
CPA vision project
redefining the role of the accountant for today's world economy Identifies a unique combination of skills, technology, and knowledge, called core competencies for accounting, that will be necessary for the future CPA
conceptual skills
refer to a person's ability to think in the abstract, to diagnose and analyze different situations, and to see beyond the present situation
place
refers to where and how customers get access to the products they buy
strategic plans
reflect decisions about resource allocations, company priorities, and the steps needed to meet strategic goals
US SEC
regulation and enforcement agency that oversees the markets' activities, including the ways securities are issued
long term goals
related to extended periods of time, typically five years or more
operating expenses
resources that must flow out of a company if it is to earn revenues
code of professional conduct
responsibilities as a professional, serving the public interest, maintaining integrity, being objective and independent, maintaining technical and ethical standards through due care, professional conduct in providing services
marketing management
responsible for getting products from producers to consumers
top management
responsible for the overall performance and effectiveness of the firm; set general policies, formulate strategies, and approve all significant decisions; represent the company in dealings with other firms and with government bodies (president, VP, CEO, CFO)
Sarbanes Oxley Act of 2001
restricts the kinds of non audit services that CPAs can provide; Imposes new requirements on virtually every financial activity in publicly traded corporations, as well as severe criminal penalties for persons committing or concealing fraud or destroying financial records
income statement's four major categories
revenues, cost of revenues, operating expenses, net income
risk return relationship
safer investments tend to offer lower returns; riskier investments tend to offer higher returns
liquidating
the act of converting something into cash
loan principal
the amount of money that is loaned and must be repaid
owner's equity
the amount of money that owners would theoretically receive if they sold all of a company's assets at their presumed value and paid all of its liabilities
goodwill
the amount paid for an existing business beyond the value of its other assets
unsecured loan
the borrower does not have to put up collateral
secured loan
the borrower guarantees repayment of the loan by pledging the asset as collateral to the lender
management
the process of planning, organizing, leading, and controlling an organization's financial, physical, human, and information resources to achieve its goals
time management skills
the productive use that managers make of their time; to manage time effectively, managers must address four leading causes of wasted time (paperwork, telephone calls, emails, and meetings)
asset allocation
the proportion (the relative amounts) of funds invested (or allocated to) each of the investment alternatives
mass market
undifferentiated
nonprogrammed decisions
unique, novel, unstructured, no previously established decision rules, rely heavily on judgement and focus on the firm's strategic development and survival, taken at higher levels, long time frame
accounts payable (payables)
unpaid bills to suppliers for materials as well as wages and taxes that must be paid in the coming year
intrinsic value
value of a company, stock, currency, or product determined through fundamental analysis without reference to its market value
geo-demographic segmentation
variables are a combination of geographic and demographic traits and are becoming the most common segmentation tools
common elements of successful strategies
vision, external analysis, internal analysis, effective implementation
entrepreneur
voluntary initiator of change
cost leadership
walmart, ryanair, acer, vizio, old navy
loss aversion
we tend to just like winning and dislike losing-- and you almost certainly dislike losing more than you like winning; would you get $900 for sure or 90% chance to get $1000 or lose $900 for sure or 90% chance to lose $1000
programmed decision
well structured, routine, repetitive, occurring on a regular basis, can be solved through mechanical procedures, usually take place at lower levels in the organization, have short term consequences, based on readily available info
core customer value
what is the customer really buying
budgeting challenges
every company has a limited amount of money to spend, revenues and costs are often difficult to predict, it's not always clear how much should be spent
audit
examines a company's AIS to determine whether financial reports reliably represent its operations -Organizations must provide audit reports when applying for loans, selling stock, or when going through a major restructuring
interpersonal roles
figurehead, leader, liaison
working capital
firm's ability to meet expenses; current assets- current liabilities
informational roles
flow naturally from the interpersonal roles just discussed; places the manager at a strategic point to gather and disseminate information; monitor, disseminator, spokesperson
corporate bond
formal pledge (an IOU) obligating the issuer to pay interest periodically and repay the principal at maturity (a present future date) to the lender
spokesperson
formally relays info to people outside the unit or outside the organization; may also represent the org before a chamber of commerce or consumer group
Generally Accepted Accounting Standards (GAAP)
formulated by the Financial Accounting Standards Board (FASB) of the AICPA and govern the content and form of financial reports
CFE Examination
fraud prevention and deterrence, financial transactions, fraud investigation, and legal elements of fraud
geographic variables
geographic units, from countries, to neighborhoods, that researchers consider a strategy of geographic segmentation
par value
(aka face value) nominal or dollar value of a security as stated by the issuer
middle manager
(plant manager, operations manager, division manager, regional sales manager) responsible more implementing the strategies and working toward the goals set by top managers
first-line managers
(supervisor, office manager, project manager, group leader, sales manager) responsible for supervising the work of employees who report to them; ensure employees understand and are properly trained in company policies and procedures
intermediate term bonds
5-10 years
Provisions of Sarbox
- Creates a national Accounting Oversight Board that must establish the ethics and standards used by CPA firms in preparing for audits - Requires that auditors retain working papers for specified periods of time - Requires auditor rotation by prohibiting the same person from being the lead auditor for more than 5 consecutive years - Requires the CEO and CFO certify that the company's financial statements are true, fair, and accurate - Prohibits corporations from extending personal loans to executives and directors - Requires that the audited company disclose whether it has adopted a code of ethics for its senior financial officers - Requires that the SEC regularly review each corporation's financial statements - Prevents employers from retaliating against research analysts who write negative reports - Imposes criminal penalties on auditors and clients for falsifying, destroying, altering, or concealing records (10 years in prison) - Imposes a fine or imprisonment (up to 25 years) on any person who defrauds shareholders - Establishes criminal liability for failure of corporate officers to certify financial reports
concept of developing marketing plan
-Identify the objective or goal to be achieved -Plan for when it will happen and for the paths (or routes) that will be taken to get there -Evaluate resource requirements and availabilities -Adjust plans as needed to become realistic and feasible -Keep notes and data about what happened because learning from this experience increases the chances for greater success on the next
stages of consumer buying process
-problem/need recognition -information seeking -evaluation of alternatives -purchase decision -posturchase evaluation
maslows hierarchy of needs
-self actualization -personal needs -social needs -safety needs -physiological needs
consumer buying process
1. recognition of problem or need 2. seek information 3. analyze product attributes 4. purchase decisions
strategic formulation steps
1. setting strategic goals 2. analyzing organization and environment (SWOT analysis) 3. matching the organization and its environment)
steps in the research method
1. study the current situation 2. select a research method 3. collect data 4. analyze data 5. prepare a report
AIS
Accounting Information System
market index
provide useful summaries of overall price trends, both in specific industries and in the stock market as a whole
B2C marketing
Firms that sell goods to consumers for personal consumption are engaged in consumer marketing
B2B marketing
Firms that sell goods to other companies are engaged in industrial marketing
bookkeeping
Keep records of taxes paid, income received, expenses incurred
controlling
the process of monitoring a firm's performance tome sure it's meeting its goals
municipal bonds
The federal government also issues bonds to finance projects and meet obligations, as do state and local governments for financing the building of schools, roads, and sewage disposal systems
promotion
a set of techniques for communicating information about products
total return
The sum of an investment's current dividend (interest) yield and capital gain - Total return(%) = (current dividend payment + capital gain) / original investment X 100
strategy
a broad concept that describes an organization's intentions; tends to have a wider scope than planning (which focuses on the nuts and bolts, choosing tactics, and establishing schedules)
S&P 500, the standard and poor composite index
a broader report, considered by many to be the best single indicator of the US equities market; Consists of 500 large-cap stocks, including companies from various sectors for a balanced representation of the overall large-cap equities market
exchange traded fund (ETF)
a bundle of stocks (or bonds) that are in an index that tracks the overall movement of a market; Can be traded throughout the day like stock, Have low operating expenses, Do not require high initial investments
accounting
a comprehensive system for collecting, analyzing, and communicating financial information to a firm's owners and employees, to the public, and to various regulatory agencies
liability
a debt that a firm owes to an outside party
viral marketing
a form of marketing that relies on social networking and the internet to spread information like a virus from person to person
bond indeture
a legal document identifying the borrower's obligations and the financial returns to lenders
confirmation bias
a normal habit in life is to develop a quick belief about a situation and then seek out information that bolsters that belief
target market
a particular group of consumers at which a product or service is aimed
dividend
a payment to shareholders, on a per-share basis, from the company's earnings
stock
a portion of the ownership of a corporation
bondholder's claim
a request for court enforcement of the bond's terms of payment
certified fraud examiner (CFE)
a specific area within forensic accounting; focus specifically on fraud-related issues such as fraud detection, evaluating accounting systems for weaknesses and fraud risks, investigating white-collar crime on behalf of law enforcement agencies, evaluating internal organizational controls for fraud prevention, and expert witnessing
stock split
a stock dividend paid in additional shares to shareholders
demographic segmentation
a strategy used to separate consumers by demographic variables; describe populations by identifying traits, such as age, income, gender, ethnic background, marital status, race, religion, and social class
relationship marketing
a type of marketing that emphasizes building lasting (long-term) relationships with customers and suppliers
individual differences
abilities to absorb, analyse and process information varies from person to person; perception is the selection and interpretation of information we receive through our senses and the meaning we give the information
rational decision making process
able to compare all the alternatives and comparisons are consistent, always chooses the time he/she prefers, has prefect information, has the cognitive ability to with choices, is aware of all possible choices
marketing
activities, a set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
income statement
aka profit and loss statement; profit (or loss) = revenues - expenses
depreciation
allocating the cost of a tangible asset over its useful life
price appreciation
an increase in the dollar value of an investment
international accounting standards board
an independent, nonprofit organization responsible for developing a set of global accounting standards and for gaining the support and cooperation of the world's various accounting organizations to implement those standards
corporate raider
an investor conducting a type of hostile (unwanted) takeover
stock exchange
an organization of individuals coordinated to provide an institutional auction setting in which stocks can be bought and sold
Accounting Information System
an organized procedure for identifying, measuring, recording, and retaining financial information so that it can be used in accounting statements and management reports
aka net worth
another term for owner's equity; difference between what a firm owns minus that it owes
asset
any economic resource that is expected to benefit a firm or an individual who owns it
advertising
any form of paid nonpersonal communication used by an identified sponsor to persuade or inform potential buyers about a product
long-term bonds
anything longer than 10 years
system 2
articulates judgments, makes choices, endorses or rationalizes to either confirm or deny those conclusions, requires conscious effort to engage, can be wrong or right depending on how hard it works, examines those heuristics when so inclined
vision statement
aspirational for a company, look forward 10-20 years, refer to what organization considers success, crucial for orgs to have vision and direction, customer-oriented or product-oriented, should be clear and concise and avoid generic statements
accounting equation
assets = liabilities + owner's equity
rational choice theory
assumes human behavior is guided by instrumental reason; allows for an easier understanding of complex social phenomena
focus differentiation
aston martin, beats, von zipper sunglasses, fleet fleet, banana republic, whole foods, thomas pink
data mining
automates the massive analysis of data by using computers to sift, sort, and search for previously undiscovered clues about what customers look at and react to and how they might be influenced
non certified public accountants
businesses may rely on them for income-tax preparation, payroll accounting, and financial planning services
diversification
buying several different kinds of investments rather than just one
solvency ratios
estimating short-term and long-term risk
financial statements
balance sheets, income statements, and statements of cash flows; indicate the firm's financial health and what affected it
financial management fundamental concepts
balancing short-term and long-term demands, balancing potential risks and potential rewards, balancing leverage and flexibility
value
benefits / costs
actual product
brand name, quality level, packaging, design, features
positive owner's equity
company's assets exceed liabilities
P/E ratio
company's share price divided by the amount of profits it makes for each share in a 12 month period
operating income
compares the gross profit from operations against operating expenses
experimentation
compares the responses of the same or similar people under different circumstances
earning's cycle
completed sale, delivered product, sale price collected/collectible, revenue recognition
niche market
concentrated
financial accounting
concerned with external information users: consumer groups, unions, stockholders, suppliers, creditors, and government agencies - Prepares reports such as income statements and balance sheets that focus on the activities of the company as a whole rather than on individual departments or divisions
NASDAQ composite index
considers more stocks (regarded by some Wall Street observers), and is one of the most useful of all market indexes
reseller market
consisting of intermediaries, including wholesalers and retailers, that buy and resell finished goods
institutional market
consists of nongovernmental organizations, such as hospitals, churches, museums, charities, that also use supplies and equipment as well as legal, accounting, and transportation services
convenience goods and services
consumed regularly and rapidly, inexpensive, purchased often and with little input of time and effort; milk, newspaper, fast food
brand loyalty
consumers regularly purchase products because they are satisfied with their performance
mutual funds
created by companies that pool cash investments from individuals and organizations to purchase bundles of stocks, bonds, and other securities; investors expect to receive financial gains
strategy as coordinating device
creates consistency and unity
sources of short term debt financing
credit cards, trade credit, secured loans, unsecured loans, commercial paper, factoring
marketing analysis (5 c's)
customers, company, competitors, collaborators, context (PEST)
long term liabilities
debts that are not due for at least a year
current liabilities
debts that must be paid within a year
augmented product
delivery and credit, product support, warranty, after sales service
statement of cash flows
describes yearly cash receipts and cash payments; shows the effects of cash on three aspects of business: - Cash flow from operations-- concerns cash transactions involved in buying and selling goods and services - Cash flows from investing-- reports net cash used in or provided by investing - Cash flows from financing-- reports net cash from all financing activities
information managers
design and implement systems to gather, organize, and distribute info
product
designed to fill a customer's need or want
book value
determined by the firm's owners' equity (from the balance sheet) divided by the number of common shares owned by all shareholders; used as a comparison indicator
corporate strategy
determines what business or businesses a company will own and operate
planning
determining what the organization needs to do and how best it needs to get it done
channels of distribution
direct distribution, retail distribution, wholesale distribution, distribution by agents of brokers
effectiveness
doing the right thing
efficiency
doing things right
electronic communications networks (ECNs)
electronic trading systems that bring buyers and sellers together outside traditional stock exchanges by automatically matching buy and sell orders at specified prices
service companies market
encompasses the many firms that provide services to the purchasing public
activity ratios
evaluating management's use of assets; fixed assets turnover = revenue / fixed assets
anchor bias
giving disproportionate weight to the first information you hear
disturbance handler
handling such problems as strikes, copyright infringements, or problems in PR or corporate image, resolving conflict between two subordinates
human resource managers
hire and train employees, evaluate performance, and determine compensation
private accountants
hired to perform day to day activities
leader
hiring, training, and motivating employees
NYSE
hybrid market that uses both floor and electronic trading; largest
integrated cost leadership/differentiation
hyundai, southwest, h&m, gap, trader joe's
full disclosure principle
idea of requiring input from the manager; Helps investors make informed risk associated with investing in or doing business with a company
operating budget
identifies cash requirements and spending for current time period
start up budget
identifies funds and spending needed to launch the company
marketing strategy
identifies the planned marketing programs, all the marketing activities that a business will use to achieve its marketing goals, and when those activities will occur
sunk costs
if you buy a movie ticket and realize the movie is terrible, you can: stay and get your money's worth (sunk cost fallacy), leave the cinema and use that time to do something you enjoy
focus cost leadership
ikea, forever 21, sams club, audi
strategy as target
improves performance by setting high aspirations
strategy as decision support
improves the quality of decision making
psychological influences
include an individual's motivations, perceptions, ability to learn, attitudes
current assets
include cash and assets that can be converted into cash within a year
cultural influences
include culture (the way of living that distinguishes one large group from another), subculture (smaller groups with shared values), and social class (the cultural ranking of groups according to such criteria as background, occupation, and income)
social influences
include family, opinion leaders (people whose opinions are sought by others), and such reference groups as friends, coworkers, and professional associates
personal influences
include lifestyle, personality, and economic status
decision-making skills
include the ability to effectively define a problem and to select the best course of action
public relations
includes all communication efforts directed at building goodwill
industrial market
includes businesses that buy goods to be converted into other products or that are used up during production
behavioral segmentation
includes such areas as heavy users (buy in bulk); situation buyers (holiday spending); or specific purpose
availability bias
individuals have a tendency to make decisions based on whatever information is easily retrievable to them and overestimate the importance of this information
emotional motives
involve non objective factors and include sociability, imitation of others, and aesthetics
rational motives
involve the logical evaluation of product attributes: cost, quality, usefulness
crisis management
involves an organization's methods for dealing with emergencies; many firms do not have comprehensive crisis management strategies
liaison
involves serving as a coordinator or link among people, groups, or organizations
observation
involves watching and recording consumer behavior
fixed assets
land, buildings, equipment
negative owner's equity
liabilities outweigh assets
certified public accountant (CPA)
licensed by a state after passing an exam prepared by the American Institute of Certified public accountants (AICPA)
psychographic segmentation
lifestyles, interests, personalities, and attitudes
micro market
local or individual
sources of long term debt financing
long term loans, leases, corporate bond
equity financing
looking inside the company for long-term funding; sometimes preferable over debt financing; includes either issuing common stock or retaining the firm's earnings
resource allocator
manager decides how resources are distributed and with whom he/she will work most closely; reviewing and revising budget requests
negotiator
manager enters into negotiations with other groups or organizations as a rep of the company; may also be internal to the org; reaching an agreement with a key supplier or labor union
leading
manager works to guide and motivate employees to meet the firm's objectives
decisional roles
manager's informational roles typically lead to these; the info acquired by the manager as a result of performing the info roles has a major bearing on important decisions that they make; entrepreneur, disturbance handler, resource allocator, negotiator
functional (operational) strategy
managers in specific areas such as marketing, finance, and operations decide how best to achieve corporate goals by performing their functional activities most effectively
competitive market
marketers must convince buyers that they should purchase one company's products rather than another's
marketing process
marketing analysis (5 c's), STP (segmentation, target, product positioning), marketing mix (4 Ps), pricing, customer acquisition, customer retention, profits
place utility
marketing creates a place utility by making products easily accessible by making products available where customers will want them
possession utility
marketing creates a possession utility by transferring product ownership to customers by setting selling prices, setting terms for customer credit payments, if needed, and providing ownership documents
time utility
marketing creates a time utility by providing products when customers will want them
form utility
marketing has a voice in designing products with features that customers want
international competition
matches the products of domestic marketers against those of foreign competitors
short term bonds
mature in fewer than 5 years after they're issued
substitute products
may not look alike or they may seem different from one another, but they can fulfill the same need
short term (liquidity) solvency ratios
measure a company's liquidity and its ability to pay immediate debts
profitability ratios
measure how effectively a firms managers are using the firms various resources to achieve its profits; return on sales= net income after taxes / net sale
long term (leverage) solvency
measure the degree to which a firm relies on borrowed funds in its operations; calculated by dividing debt (total liabilities) by owners' equity
differentiation
mercedes, apple, SU, nike, avis
non liquid assets
merchandise inventory
surveys
method of collecting data in which the researcher interacts with people to gather facts, attitudes, or opinions
narrow framing
misdefining the problem may be the biggest barrier to making good decisions
paid in capital
money invested by owners
budget
most important financial statement; detailed report on estimated receipts and expenditures for a future period of time
secondary securities market
much larger; Existing stocks and bonds are sold
earnings per share
net income divided by the number of shares of common stock outstanding - Determines the size of the dividend that a firm can pay shareholders - Indicator of a company's wealth potential; used by investors to determine whether or not to buy or sell the firm's stock
retained earnings
net profits are kept instead fo the company's use
primary securities markets
new stocks and bonds are bought and sold by firms and governments
brand competition
occurs between similar products and is based on buyers' perceptions of the benefits of products offered by particular companies
public accountants
offer accounting services to the public and are distinguished by their independence from the clients they serve
monitor
on who actively seeks information that may be of value; questions subordinates, is receptive to unsolicited information, ad attempts to be as well informed as possible
focus groups
participants are gathered in one place, presented with an issue, and asked to discuss it
intangible assets
patents trademarks, copyrights, franchises
heuristics
people take short cuts by applying rules of thumb; rules of thumb work well because they are often systematic and predictable but problems arise when people habitually rely on this method decision making, excluding or ignoring additional information
promotional mix
personal selling, public relations, direct and digital marketing, sales promotion, advertising; consistent, clear and compelling company and brand messages
industrial goods
physical items used by companies to produce other products
financial manager
plan and oversee its accounting functions and financial resources (nearly every company has one)
project budgets
plan funding and spending for specific projects
capital budgets
plan funding for major capital investments
four basic managerial functions
planning, organizing, leading, and controlling
gross profit
preliminary, quick-to-calculate profit figure that considers just two pieces of data (revenues and cost of revenues) from the income statement - To calculate, subtract cost of revenues from revenues obtained by selling the firm's products
Marketing Mix
product, pricing, place, and promotion
services
products with intangible (non physical) features, such as professional advice, timely information for decisions, or arrangements for a vacation
bottom line
profit or loss
capital gain
profit realized from the increased market value of an investment
management accountants
provide services to support managers in various activities
contingency planning
seeks to identify in advance important aspects of a business or its market that might change
differentiated market
segmented
pricing
selecting the best price at which to sell it, is often a balancing act; cost driven or value driven
managerial accounting
serves internal users -Managers at all levels need information to make departmental decisions, monitor projects, and plan future activities
intermediate goals
set for a period of one to five years; usually set in several areas
short term goals
set for perhaps one year and are developed for several different areas
operational plans
set short-term targets for daily, weekly, or monthly performance
preferred stock
shares of ownership without voting rights but with defined dividends
tactical plans
shorter-term plans for implementing specific aspects of the company's strategic plans
cost of revenues
shows the costs of obtaining the revenues from other companies during the year
human relations skills
skills that enable them to understand and get along with other people
russells 2000 index
specialty index that measures the performance of the smallest US companies based on market capitalization
most common objectives of funds
stability and safety, conservative capital growth, and aggressive growth
goals
starting point; objectives that a business hopes and plans to achieve; performance targets, the means by which organizations and their managers measure success or failure at every level
mission statements
statements of how they will achieve their purposes in the environments in which they conduct their businesses; flow from vision to vision but are more concrete
securities
stocks, bonds, and mutual funds; represent secured, or financially valuable claims on the part of investors
system 1
subconscious values, drives, beliefs that influence our gut reaction, jumps to conclusions regarding causality, operating effortlessly, can be wrong but is more often right, influenced by heuristics
balance sheets
supply detailed information about the accounting equation items: assets, liabilities, and owners' equity - Sometimes called statements of financial position - Barometer for its financial condition at one point in time
business (competitive) strategy
takes place at the level of the business unit or product line and focuses on improving the company's competitive position (used when a corporation owns and operates multiple businesses)
figurehead
taking visitors to dinner, attending ribbon cutting ceremonies
consumer goods
tangible goods that the consumer may buy for personal use
utility
the ability of a product to satisfy a human want or need
skills in strategic thinking and critical problem solving
the accountant can combine data with reasoning and professional knowledge to recognize and help solve critical problems for better strategic action
communications, interpersonal skills, and effective leadership
the accountant can communicate effectively in various business situations using meaningful communications skills that provide interpersonal effectiveness and leadership
portfolio
the combined holdings of all the financial investments-- stocks, bonds, mutual funds, real estate-- of any company or individual
data warehousing
the compiling and storage of customers' data
product differentiation
the creation of a feature or image that makes a product differ enough from existing products to attract customers
compound growth
the cumulative growth from interest paid to the investor over given time periods
market value
the current price of a share in the stock market; reflects amount buyers are willing to pay
consumer behavior
the decision process by which people buy and consume products; effect on actual purchases is sometimes weak or negligible
initial public offering
the first sale of a company's stock to the general public
revenue recognition
the formal recording and reporting of revenues at the appropriate time
revenues
the funds that flow into a business from the sale of goods or services
marketing objectives
the goals the marketing plan intends to accomplish
securities and exchange commission (SEC)
the government agency that regulates US securities markets
securities markets
the markets in which stocks and bonds are sold; Provide the capital that companies rely on for survival
common stock
the most basic form of ownership in a company
dow jones industrial average (DJIA)
the oldest and most widely cited US market index; measures the performance of the industrial sector of the US stock markets by focusing on just 30 blue-chip, large-cap companies as reflectors of the economic health of many similar US firms (an average)
marketing managers
the people responsible for planning, organizing, leading, and controlling the organization's overall mission
decision making
the process of developing and analyzing alternatives and making a choice
product positioning
the process of fixing, adapting, and communicating the nature of the product itself
strategic management
the process of helping an organization maintain an effective alignment with its environment
corporate culture
the shared experiences, stories, beliefs, and norms that characterize an organization; helps define the work and business climate that exists in an organization
technical skills
the skills needed to perform specialized tasks
global management skills
the special tools, techniques, and skills needed to compete int he global environment
marketing research
the study of what customers need and want and how best to meet those needs and wants Powerful tool for gaining decision-making information
market capitalization
the total dollar value of all the company's outstanding shares, calculated as the current stock price multiplied by the number of shares outstanding
forensic accounting
the use of accounting for legal purposes; must be good detectives
insider trading
the use of special knowledge about a firm for profit or gain
social networking media
the websites or access channels to which millions of consumers go for information and discussions before making their purchase decisions
The National Association of Securities Dealers Automated Quotation (NASDAQ) System
the world's oldest electronic stock market; established in 1971; Orders are gathered and executed on a computer network connecting 500,000 terminals worldwide
blue chip stock
those issued by the strongest,well-established, financially sound and respected firms
blue-chip stocks
those issued by the strongest,well-established, financially sound and respected firms
value proposition
to (target segment and need) our (brand) is (concept) that (point of difference)
3 basic levels of management
top, middle, first-line
disseminator
transmits relevant information back to others in the workplace
rule of 72
you can find the number of years needed to double your money by dividing the annual interest rate (in percent) into 72 (72/%) - Can also calculate how much interest you must get if you want to double your money in a given number of years-- divide 72 by the desired number of years (72/#)
