business awareness Flashcards
what is a retail concession
brand establishes a physical presence within anotehr brand’s store
B2C
business 2 customer
What is Amazon
What is Amazon’s revenue per year?
$470B
Market share definition
company’s sales over the period / industry’s total sales ove rthe period
Product Mix definition
A product mix is the total number of product lines and individual products or services offered by a company.
Recession
A recession is a significant decline in economic activity that lasts longer than a few months.
Cyclical market
Examples of cyclical companies
airlines, hotels, restaurants, auto manufacturers, luxury goods producers
these are the first things to cut when times get tough (cyclical stocks are subject to elastic demand)
Non cyclical stocks
services or products that remain in demand regardless of economic conditions (eg. utilities, tobacco, grocery companies)
Customer churn rate
normal rate at which customers leave
(if 10% customers leave every month then we need to get 10% new customers just for revenues to stay the same)
A customer retention problem happens when that 10% rate increases and more than 10% of customers leave per month - revenue declines)
A customer acquisition problem happens when the rate that customers leave didn’t increase (stays 10%) and we CAN’T find new customers (10% new customers) to make up for that loss of 10%
Fixed Cost definition
A fixed cost is a business expense that does not vary even if the level of production or sales changes.
Fixed costs examples
Fixed costs include any number of expenses, including rental and lease payments, certain salaries, insurance, property taxes, interest expenses, depreciation, and some utilities.
Conglomerate definition
A conglomerate is the combination of two or more business entities engaged in either entirely different or similar businesses that fall under one corporate group, usually involving a parent company and many subsidiaries. Often, a conglomerate is a multi-industry company and is often large and multinational.