business final review Flashcards
financial diversification
strategy pf investing in a wide variety of securities in order to reduce risk
mutual fund
institutional investor that raises funds by selling shares to investors and uses the accumulated funds
exchange traded fund
shares traded on securities market that represent the legal right of ownership over part of a basket of individual stock certificates or other securities
public offering
primary market issue in which new securities are offered to any investors willing and able to purchase them
initial public offering (IPO)
first time a company issues stock that may be bought by the general public
underwriting
arrangement under which an investment banker agrees to purchase all shared of a public offering at an agreed-upon price
registration statement
long, complex document that firms must file with the SEC when they sell securities through a public offering
private placement
primary market issue that is negotiated between the issuing corporation and a small group of accredited investors
accredited investor
organization or individual investor who meets certain criteria established by the SEC and so qualifies to invest in unregistered securities
stock exchange
organized venue for trading stocks and other securities that meet its listing requirements
over-the-counter market
securities that are not listed on exchanges are traded
Electronic communications network (ECN)
automated securities trading system that automatically matches buyers and sellers, executing trades quickly and allowing trading when securities exchanges are closed
discount broker
provide basic services needed to buy and sell securities but offer fewer additional services
full-services brokers
provide a wide range of services in addition to carrying out trades
market orders
an order telling a broker to buy or sell a specific security at the best currently available price
limit orders
an order to a broker to buy a specific stock only if its price is below a certain level, or to sell a specific stock only if its price is above a certain level
stock index
statistic that tracks how the prices of specific set of stocks has changed
DIJA
index that tracks stock prices of 30 large, well-knwon US corporations
Standard and Poor’s 500
stock index based on prices of 500 major US corporations in a variety of industries and market sectors
NASDAQ
all domestic and foreign common stocks traded
Wilshire 500
stock prices of all US corporations with actively traded stock
Russell 2000
stock prices of 2000 relatively small but actively traded
FTSE 100
stock prices of 100 actively traded companies
Nikkei 225
stock prices of 225 actively traded companies
SSE composite
prices on the Shanghai stock exchange
marketing
organizational function and process for creating, communicating, and delivery value to customer relationships in ways that benefit the organization and its stakeholders
utility
ability of goods and services to satisfy consumer “wants”
form
satisfies wants by converting inputs into a finished form
time
satisfies wants by providing goods and services at a convenient time
place
satisfies wants by providing gods and services at a convenient place
ownership
satisfies wants by smoothly transferring ownership of goods and services from seller to buyer
customer relationship management (CRM)
ongoing process of acquiring, maintaining, and growing profitable customer relationships by delivering unmatched value
value
customer perception that a product has a better relationship than its competitors between the cost and the benefits
customer satisfaction
when customers perceive that a good or service delivers value above and beyond their expectations
customer loyalty
when customers buy a product from the same supplier again and again - sometimes paying even more for it than they would for a competitive product
marketing plan
formal document that define marketing objectives and the specific strategies for achieving those objectives
market segmentation
dividing potential customers into groups of similar people, or segments
target market
group of people who are most likely to buy a particular product
consumer marketers
marketer who direct their efforts toward people who are buying products for personal consumption
business marketers
marketer who direct their efforts toward people who are buying products to use either directly or indirectly to produce other products
demographic segmentation
dividing the market into smaller groups based on measurable characteristics about people, such as age, income, ethnicity, and gender
geographic segmentation
dividing the market into smaller groups based on where consumers live
psychographic segmentation
dividing the market into smaller groups based on consumer attitude, interests, values, and lifestyles
behavioral segmentation
dividing the market based on how people behave toward various products
marketing mix
the blend of marketing strategies for product, price, place/distributing, promotion, and people
environmental scanning
the process of continually collecting information from the external marketing environment
market share
the percentage of a market controlled by a given marketer
social/culutral
cover a vast array of factors, including lifestyle, customs, language, attitudes, interests, and population shifts
technological
often affects marketers in ways that are less directly visible
political/legal
laws, regulations, and political climate
consumer behavior
description of how people act when they are buying, using and discarding, goods and services for their own personal consumption, explores the reasons behind people’s actions
cognitive dissonance
consumer discomfort with a purchase decision
marketing research
the process of gathering, interpreting, and applying information to uncover marketing opportunities and challenges, and to make better marketing decisions
international perspective
research firms with a strong local presence are better able to carry out international marketing research projects
product differentiation
the attributes that make a god or service different from other products that compete to meet the same or similar customers needs
quality level
how well a product preforms its core functions
product consistency
how reliably a product delivers its promised level of quality
product features
specific characteristics of a product
customer benefit
the advantage that a customer gains from specific product features
product line
a group of products that are closely related to each other, either in terms of how they work or the customers they serve
product mix
the total number of product lines and individual items sold by a single firm
cannibalization
when a producer offers a new product that takes sales away from its existing products
brand
product name, symbol, design, reputation, and image that sets it apart from other players in the same category
brand equity
overall value of a brand to an organization
line extensions
similar products offered under the same brand name
brand extension
a new product, in a new category, introduced under an existing brand name
licensing
purchasing the right to use another company’s brand name or symbol
cobranding
when established brands from different companies join forces to market the same product
national brands
brands that the producer owns and markets
store brands
brands that the retailer both produces and distributes
discontinuous innovation
brand-new ideas that radically change how people live
dynamically continuous innovation
characterized by marked changes to existing products
continuous innovation
features a slight modification of an existing product
promotion
marketing communication designed to influence consumer purchase decisions through information, persuasion, and reminders
integrated marketing communication
the coordination of marketing messages through every promotional vehicle to communicate a unified impression about a product
positioning statement
a brief statement that articulates how the marketer would like the target market to envision a product relative to the competition
promotional channels
specific marketing communication vehicles, including traditional tools, such as advertising, sales promotion, direct marketing, and personal selling, and newer tools such as product placement, advergaming, and internet mini movies
advertising
paid, non personal communication, designed to influence a target audience with regard to a product, service, organization, or idea
sales promotion
marketing activities designed to stimulate immediate sales activity through specific short-term programs aimed at either consumers or distributors
consumer promotion
marketing activities designed generate immediate consumer sales, using tools such as premiums, promotional products, samples, coupons, rebates, and displays
trade promotion
marketing activities designed to stimulate wholesalers and retailers to push specific products more aggressively over the short term
public relations (PR)
ongoing effort to create positive relationships with all of a firm’s different publics
publicity
unpaid stories in the media that influence perceptions about a company or its product
personal selling
person-to-person presentation of products to potential buyers
management
achieving the goals of an organization through planning, organizing, leading, and controlling organizational resources including people, money, and time
top management
managers who set the overall direction of the firm, articulating a vision, establishing priorities, and allocating time, money, and other resources
middle management
managers who supervise lower-level managers and report to a higher level manager
first-line management
managers who directly supervise nonmanagement employees
human skills
the ability to work effectively with and through other people in a range of different relationships
technical skills
expertise in a specific functional area or department
conceptual skills
the ability to grasp a big-picture view of the overall organization, the relationships among its various parts, and its fit. in the broader competitive environment
Maslow’s hierarchy of needs theory
a motivation theory that suggests that human needs fall into a hierarchy and that as each need is met, people become motivated to meet the next highest need in the pyramid
Theory X
a management approach that assumes employees inherently dislike work and require close supervision, constant control, and external motivators like rewards and punishments to achieve organizational goals
Theory Y
a management theory that assumes employees are inherently self-motivated, enjoy their work, seek responsibility, and are capable of creative problem-solving
job enrichment
the creation of jobs with more meaningful content, under the assumption that challenging, creative work will motivate employees
expectancy theory
a motivation theory that concerns the relationship among individual effort, individual performance, and individual reward
equity theory
a motivation theory that proposed that perceptions of fairness directly affect worker motivation (what I contribute and what I earn v. what other contribute and what others earn)
strategic planing
high level, long term planning that establishes a vision for the company, defines long term objectives and priorities, determines broad action steps, and allocated resources
tactical planning
more specific, shorter term planning that applies strategic plans to specific functional areas
operational planning
very specific, short term planning that applies tactical plans to daily, weekly, and monthly operations
contingency planning
planning for unexpected events, usually involving a range of scenarios and assumptions that differ from the assumptions behind the core plans
mission
the definition of an organization’s purpose, values, and core goals, which provides the framework for all other plans
SWOT analysis
strategic planning tool that helps management evaluate an organization in terms of internal strengths and weakness, and external opportunities and threats
strategic goals
concrete benchmarks that managers can use to measure performance in each key area of the organization
degree of centralization
the extent to which decision-making power is held by a small number of people at the top of the organization
span of control
span of management; refers to the number of people a manager supervises
departmentalization
the division of workers into logical groups
line organizations
organizations with a clear, simple chain of command from top to bottom
line and staff organization
an organization with line managers forming the primary chain of authority in the company, and staff departments working alongside line departments
matrix organization
organizations with a flexible structure that brings together specialists from different areas of the company to work on individual projects on a temporary basis
HR management
the management function focused on maximizing the effectiveness of the workforce by recruiting world class talent, promoting career development, and determining workforce strategies to boost organizational effectiveness
job analysis
the examination of specific tasks that are assigned to each position, independent of who might be holding the job at any specific time
job description
an explanation of the responsibilities of a specific person
job specifications
the specific qualifications necessary to hold a particular position
internal recruitment
the process of seeking employees who are currently within the firm to fill open positions
external recruitment
the process of seeking new employees from outside the firm
compensation
the combination of pay and benefits that employees receive in exchange for their work
profit sharing
reward employees with a share of company profits above and beyond predetermined goals
stock options
right to buy shares of company stock at some future date for the price of the shares on the day that the company awarded the options
pay for knowledge
awarding bonuses and pay increases in exchange for increases in knowledge such as earning an MBA
benefits
non cash including programs such as health insurance, vacation, and childcare
cafeteria style benefits
approach that gives all employees a set dollar amount that they must spend on company benefits, allocated however they wish within bread limitation
flextime
scheduling option that allows workers to choose when they start and finish their workdays, as long as they complete the required number of hours
compressed workweek
a version of flextime scheduling that allows employees to work a full time number of hours in less than the standard workweek
remote work
offer both benefits and drawbacks to employees and employers
job sharing
includes benefits such as higher moral and better retention
seperation
companies should proceed carefully while terminating employees in order to avoid wrongful termination lawsuits
Civil Right Act of 1964
federal legislation that prohibits discrimination in hiring, firing, compensation, apprenticeships, training, terms, and conditions, or priveledges of employment based on race, religion, sex, or national origin
Title VII
prohibits discrimination for employers with 15 or more workers
equal employment opportunity commission
a federal agency designed to regulate and enforce the provisions of Title VII
affirmative action
policies meant to increase employment and educational opportunities for historically marginalized groups
hardware
physical tools and equipment used to collect, input, store, organize, and process data and to distribute information
software
programs that provide instructions to a computer so that it can perform a desired task
internet
the world’s largest computer network: essentially a network of computer networks all operating under a common set of rules that allow them to communicate with each other
broadband internet connection
an internet connection that is capable of transmitting large amounts of information very quickly
internet2 (I2)
new high tech internet with access limited to a consortium of member organizations
intranet
private network that had the look and feel of the internet and is navigated using a web browser, but which limits access to a single firm’s employees
extrant
an intranet that allows limits access to a selected group of stakeholders, such as suppliers or customers
cloud computing
use of internet based storage capacity, processing power, and computer applications to supplement or replace internally owned information technology resources
data
unprocessed facts and figures
database
a file consisting of related data organized according to a logical system and stored on a hard drive or some other computer accessible media
decision support system (DSS)
a system that gives managers access to large amounts of data and the processing power to convert these data into high quality information, thus improving the decision making process
business intelligence system
a sophisticated form of decision support system that helps decision makers discover information that was previously hidden
data warehouse
a large, organization-wide database that stores data in a centralized location
data mining
the use of sophisticated statistical and mathematical techniques to analyze vast amounts of data to discover hidden patterns and relationships thus creating valuable information
expert system (ES)
a decision support system that helps managers make better decisions in an area where they lack expertise
E-commerce
the marketing, buying, selling and servicing or products over a network
B2C
E-commerce in which businesses and final consumers interact
B2B
E-commerce in markets where businesses buy from and sell to other businesses
Web 2.0
websites that incorporate interactive and collaborative features to create a richer, more interesting, and more useful experience for their users
discussion channels and chat rooms
the use of web or app based communication tools to hold department based or private dicussions
digital advertising
marketing strategy that includes advertising on websites, products, social media, and digital apps
digital wallet
a method used for secure electronic transfer of funds or E-commerce transactions
E-marketplace
a specialized internet site where buyers and sellers engaged in business to business e-commerce can communicate and conduct business
radio frequency identification (RFID)
a technology that stores information on small microchips that can transmit the information when they are within a range of a special reader
malware
a general term for malicious software, such as spyware, computer viruses, and worms
spyware
software that is installed on a computer without the user’s knowledge or permission to track the user’s behavior
computer virus
computer software that can be spread form one computer to another without the knowledge or permission of the computer users by attaching itself to emails or other files
worm
malicious computer software that, unlike viruses, can spread on its own by using well known vulnerabilities to enter computer networks without being attached to other files
spam
unsolicited email advertisements usually sent to very large numbers of recipients, many of whom may have no interest in the message
phising
a scam in which official looking emails are sent to individuals in an attempt to get them to divulge private information such as passwords, usernames, and account numbers
pharming
a scam that seeks to steal identities by routing internet traffic to fake websites
hacker
skilled computer user who uses their expertise to gain unauthorized access to the computer of others, sometimes with malicious intent
firewall
software and/or hardware designed to prevent unwanted access to a computer or system
intellectual property
property that is the result of creative or intellectual effort, such as books, musical works, inventions, and computer software
operations management
creating value by managing the activities that produce goods and services and the distributing them to customers
efficiency
producing output of achieving a goal at the lowest cost
effectiveness
using resources to create value by providing customers with goods and service that offer a better relationship between price and perceived benefits
goods
tangible products
services
intangible products
process
a set of related activities that transform inputs into outputs, thus adding value
inventory
stocks of goods or other items held by organizations
critical path method (CPM)
a project management tool that illustrates the relationships among all the activities involved in completing a project and identifies the sequence of activities likely to take the longest to complete
value chain
network of relationships that channels the flow of inputs, information, and financial resources through all the processes directly or indirectly involved in producing goods and services and distributing them to customers
vertical integration
performance of processes internally that were previously performed by other organizations in a supply chain
outsourcing
arranging for other organizations to preform supply chain functions that were previously preformed internally
offshoring
moving production or support processes to foreign countries
enterprise resourcing plan (ERP)
software based approach to integrate an organizations information flows
servicescape
the environment in which a customer and service provider interact
automation
replacing human operation and control of machinery and equipment with some form of programmed control
robot
a reprogrammable machine that is capable of manipulating materials, tools, parts, and specialized devices in order to preform a variety of tasks
computer aided design (CAD)
drawing and drafting software that enable users to create and edit blueprints and design drawings quickly and easily
computer aided manufacturing (CAM)
software that takes the electronic design for a product and creates the programmed instructions that robots must follow to produce that product as efficiently as possible
computer aided manufacturing (CIM)
a combination of CAD/CAM software within flexible manufacturing systems to automate almost all steps involved in designing, testing, and producing a product
total quality management (IQM)
an approach to quality improvement that calls for everyone within an organization to take responsibility for improving quality and emphasizes the need for a long term commitment to continuous improvement
six sigma
an approach to quality improvement characterized by very ambitious quality goals, extensive training of employees, and a long term commitment to working on quality related issues
baldrige national quality program
a national program to encourage American firms to focus on quality improvement
ISO 9000
family of generics standards of quality management systems established by the international organization for standardization
lean production
an approach to production that emphasizes the elimination of waste in all aspects of production processes
ISO 1400
a family of generic standards for environmental management establishes by the international organization for standardization
