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Management and Marketing > Ch. 1 Pages 5-16 > Flashcards

Ch. 1 Pages 5-16 Flashcards

1
Q

What is a business?

A

Organizations that provide goods or services that are sold to earn profit.

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2
Q

What is a profit?

How do you find it?

A

Business’ Revenue-Expenses

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3
Q

What is customer choice/demand?

A

Consumers have freedom of choice so businesses take into account want/need.

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4
Q

Opportunity/Enterprise

A

Spotting promising opportunity and developing plans to capitalize.

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5
Q

What are benefits of business?

A
  1. Produce most of the goods/servics consumed.
  2. Employ most working people
  3. Contribute to quality of life/standard of living
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6
Q

What is the external environment?

A

Everything outside of an oranizations boundaries that might affect it. (The categories are: Domestic Business, Global Business, Technological, Political/Legal, Sociocultural, Economic)

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7
Q

Domestic Business Environment

A

Environment in which a firm conducts operations/derives revenue. Relationship with customers/suppliers, distiguished from competitors.

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8
Q

Global Business Environment

A

International forces that affect a business. Ex: trade agreements, international economic conditions, political unrest.

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9
Q

Technological Environment

A

Ways firms make value for constituents. Ex: getting machines/equipment, software, hardware

Constituent: Component/Part of Something

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10
Q

Political/Legal Environment

A

Relationship between business and government. Legal system defines what a business can/cannot do (ex: advertising practices, health and safety, hiring restrictions)

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11
Q

Sociocultural Environment

A

Customs, mores, values, and demographic. Characteristics of place where organization is functioning, determines goods/services and standards of business conduct (can be different one country to another)

Mores: Mo-rays-values that you have

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12
Q

Economic Environment

A

Relevant conditions that exist in the economic system a company operates. (Ex: when an economy does well, benefits and wages are higher and opposite)

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13
Q

Economic Systems

A

Nation’s system for allocating resources among citizens. (individuals and organizations)

Businesses operate differently in different countries.

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14
Q

Factors of Production

A

Resources used in the production of goods/services (labor, capital, entrepreneurs, physical resources, informational resources)

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15
Q

What is capital?

A

Funds needed to create/develop a business enterprise

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16
Q

What is an entrepreneur?

A

Individual who accepts the risks and opportunities involved in creating/operating a new business.

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17
Q

Physical Resources

A

Tangible items that organizations use in the conduct of business (can also be land)

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18
Q

Information Resources

A

Data and other info used by businesses. (Market Forecasts, Specialized knowledge of people, economic data)

19
Q

What is a planned economy?

A

Economy that relies on a centralized government to control all/most factors of production and production/allocation decisions

20
Q

Market Economy

A

Economy in which individuals control production/allocation decisions through supply/demand

21
Q

Communism

A

Political system in which the government owns and operates all factors of production

22
Q

What is a market?

A

Mechanism for exchange between buyers and sellers of a particular good/service

23
Q

B Corporation

A

Businesses that seek to earn profits but performance is measured not only by profit/growth in stock price but impact on society/environment

24
Q

What does STEEPLE stand for?

A

Social, Technological, Economic, Environmental, Political, Legal, Ethics

25
Q

What is STEEPLE?

A

Framework for analyzing the external environmental factors affecting business objectives and strategies

26
Q

What is the social aspect of STEEPLE?

A

Includes population size/structure, lifestyle, age groups, education levels

27
Q

What is the technological aspect of STEEPLE?

A

State of technological advancement and intro of new technologies

28
Q

What is the economic aspect of STEEPLE?

A

Factors such as GDP, growth, inflation, interest rates, exchange rates

GDP: Gross Domestic Product

29
Q

What is the environmental aspect of STEEPLE?

A

Weather/climate, flora/fauna, environmental pressure group activity

30
Q

What is the political aspect of STEEPLE?

A

Type of government/ideology in regards to attitude toward free markets, impostition of tariffs, business inventives offered, stability of government

Tariffs: a tax/duty to be paid on a class of imports or exports

31
Q

What is the legal aspect of STEEPLE?

A

Laws influencing business activity (competition law, health and safety at work, consumer/employee protection

32
Q

What is the ethics aspect of STEEPLE?

A

General code of ethics followed by most people in the country and the tendency of people to be ethical

33
Q

Differences in economic systems exist by?

A
  1. Degree of decentralized use of markets/prices in decision making
  2. Degree of centralized government control

Decentralized: marketplace decides Centralized: government decides

34
Q

What do market economies rely on?

A

Capitalism and free enterprise

35
Q

What are items produced/prices paid determined by?

A

Supply and Demand

36
Q

What is capitalism?

A

System that sanctions the private ownership of the factors of production/encourages entrepreneurship with profits as incentive

37
Q

Mixed Market Economy

A

Economic system featuring characteristics of both planned/market economies

Some products can’t be sold legally, only certain age, advert=truthful

38
Q

What is privatization?

A

Process of converting govenrment enterprises into privately owned companies

39
Q

What is socialism?

A

Planned economic system in which the government owns and operates only selected major sources of production

40
Q

What is demand?

A

The willingness and ability of buyers to purchase a good/service

41
Q

What is supply?

A

Willingness/ability of producers to offer a good/service for sale

42
Q

What is the law of demand?

A

Principle that buyers will purchase (demand) more of a product as its price drops and less as its price increases

43
Q

What is the law of supply?

A

Principle that producers will offer (supply) more of a product for sale as its price rises and less as its price drops

44
Q

Demand/Supply Schedule

A

Assesment of the relationships among different levels of demand and supply at different price levels

Management and Marketing (1 decks)

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