CHAPTER 1 Flashcards
Revenue
Money a company brings in through the sale of goods and services
Business
Any profit seeking organization that provides goods and services designed to satisfy customers needs
Business model
A concise description of how a business generates or intends to generate revenue
Profit
Money left over after all the costs involved in doing business have been deducted from revenue
Competitive advantage
Some aspect of a company or its operations that enables it to create products with greater appeal to its target customers
Non-for-profit organizations
Organizations that provide goods and services without having a profit motive, also called nonprofit organizations
How to categorize business?
(PCGO) Product type, Company size, Geographic reach, Ownership
Business mindset
Adopting an insider’s view of business with an appreciation for the decisions to be made and challenges that managers face
Stakeholders
Internal and external groups affected by a company’s decisions and activities
What are the 5 environments of business
(SMELT) Social, Market, Economic, Legal and regulatory, Technological
Gig economy
Portion of the economy composed of people who work as independent contractors on a series of short-term projects or tasks
Barriers to entry
Resources or capabilities a company must have before it can start competing in a given market
Tangible goods
Goods that have a physical presence
What are the 6 basic building blocks of a business in general?
(BHRMMF) Business services, Human resources, Research and development, Manufacturing, Marketing, Finance and accounting
Professionalism
The quality of performing at a high level and conducting oneself with purpose and pride
Etiquette
The expected norms of behavior in any particular situation
Digital enterprise
Any company that uses digital systems as one of the foundations of its value-creation processes, regardless of what industry it is in or what products it makes
What are the 7 major business fields?
(HOMIFAS) Human resource specialist, Operations manager, Marketing specialist, IT manager, Financial manager, Accountant, Sales proffesional
Disruptive innovation
A development so fundamentally different and far-reaching that it can create new proffesions, companies, or even entire industries while damaging or destroying others
Digital transformation
The process of reimagining a company’s business model and operations to become a digital enterprise
Social environment
Trends and forces in a society a large
Technological environment
Forces resulting from the practical application of science to innovations, products and processes
Economic environment
The conditions and forces that affect cost and avaliability of goods, services, and labor and thereby shape the behavior of buyers and sellers
Legal and regulatory environment
Laws and regulations at local, state, national and even international levels
Market environment
A company’s target customers, the buying influencers that shape the behavior of those customers, and competitors that market similar products to those customers
Research and development
Functional area responsible for conceiving and designing new products
Operations manager
Management of the people and processes involved in creating goods and services
Information technology
A functional area of business as well as the systems responsible fot gathering, processing and distributing information where needed throughout an organization
