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IBP > CHAPTER 7 > Flashcards

CHAPTER 7 Flashcards

1
Q

the process of planning and
executing the conception, pricing, promotion,
and distribution of ideas, goods, and services
to create exchanges that satisfy individual and
organizational objectives.

A

MARKETING

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2
Q

is the regulation of organizational activities so that some targeted element of performance remains within acceptable limit

A

CONTROL

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3
Q

THE PURPOSE OF CONTROL

A

Adapting to Environmental Change
Limiting the Accumulation of Error
Coping with Organizational Complexity
Minimizing Costs

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4
Q
  • includes inventory management, quality control, and equipment control
A

CONTROL OF PHYSICAL RESOURCES

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5
Q
  • Includes selection and placement, training and development, performance appraisal, and compensation
A

CONTROL OF HUMAN RESOURCES

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6
Q
  • includes sales and marketing forecasting environmental analysis, public relations, production scheduling, and economic forecasting
A

CONTROL OF INFORMATION RESOURCES

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7
Q
  • involves managing the organization’s financial obligations, ensuring that the firm always has enough cash on hand, and ensuring that receivables are collected and bills are paid on a timely basis
A

FINANCIAL CONTROL

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8
Q

LEVELS OF CONTROL

A

OPERATIONAL
FINANCIAL
STRUCTURAL
STRATEGIC

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9
Q
  • focuses on the processes the organization uses to transform resources into products or services
A

OPERATIONAL CONTROL

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10
Q
  • is concerned with the organization’s financial resources.
A

FINANCIAL CONTROL

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11
Q
  • is concerned with how the elements of the organization’s structure are serving their intended purpose
A

STRUCTURAL CONTROL

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12
Q
  • focuses on how effectively the organization’s corporate, business, and functional strategies are succeeding in helping the organization meet its goals
A

STRATEGIC CONTROL

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13
Q

responsible for overseeing the wide array of control systems and concerns in organizations

A

MANAGERS

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14
Q

responsible for helping line managers with their control activities, coordinating the organization’s overall control system, and for gathering and assimilating relevant information

A

A CONTROLLER

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15
Q

Businesses who use an H form or M-form organization design have several controller for what part?

A

one for corporation and one for each division

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16
Q

STEPS IN CONTROL PROCESS

A
  1. Establishing Standards
  2. Measuring Performance
  3. Comparing performance to the Standard
  4. Considering corrective actions
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17
Q

A control standard is a target against which subsequent performance will be compared

A

ESTABLISHING STANDARDS

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18
Q

Performance measurement is a constant, ongoing activity for most organizations

A

Measuring Performance

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19
Q

Performance may be higher than lower than, or identical to the standard.

A

Comparing performance against standard

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20
Q

Decisions regarding corrective action draw heavily on a manager’s analytic and diagnostic skills

A

CONSIDERING CORRECTIVE ACTIONS

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21
Q

After comparing performance against control standards, one of three actions is appropriate

A

Maintain the status quo
Correct the deviation
Change the standards

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22
Q

concerned with the processes that the organization uses to transform resources into products or services.

A
  • OPERATIONS CONTROL
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23
Q

FORMS OF OPERATIONS CONTROL

A

Preliminary
Screening
Post Action

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24
Q

concentrates on the resources-financial, material, human, and information-the organization brings in from the environment.

A

PRELIMINARY CONTROL

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25
Q

-attempts to monitor the quality or quantity of these resources before they enter the organization

A

Preliminary control

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26
Q
  • focuses on meeting standards for product or service quality or quantity during the actual transformation process itself.
A

SCREENING CONTROL

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27
Q

the periodic quality checks provide feedback to workers so that they know what, if any, corrective actions to take

A

SCREENING CONTROL

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28
Q
  • Focuses on the outputs of the organization after the transformation process is complete
A

POST ACTION CONTROL

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29
Q

may not be as effective as preliminary or screening control, it can provide management with information for future planning

A

POST ACTION CONTROL

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30
Q
  • the control of financial resources as they flow into the organization, are held by the organization, and flow out of the organization
A

FINANCIAL CONTROL

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31
Q

TYPES OF BUDGET

A

FINANCIAL BUDGET
OPERATING BUDGET
NON MONETARY BUDGET

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32
Q
  • Indicates where the organization expects to get its cash for the coming time period and how it plans to use it
A

FINANCIAL BUDGETS

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33
Q
  • It outlines what quantities of products or services the organization intends to create and what resources will be used to create them.
A

OPERATING BUDGET

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34
Q

it is simply a budget expressed in nonfinancial terms, such as units of output, hours of direct labor, machine hours, or square-foot allocations

A

NON-MONETARY BUDGET

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35
Q
  • Traditionally, budgets were developed by top management and the controller and then imposed on lower-level managers
A

DEVELOPING BUDGETS

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36
Q
  • Many contemporary organizations now allow all managers to participate in the budget process
A

DEVELOPING BUDGETS

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37
Q

STRENGTHS OF BUDGETING BUDGETS

A
  1. Facilitate effective control
  2. facilitate coordination and communication between departments
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38
Q

WEAKNESSES OF BUDGETING BUDGETS

A
  1. Some managers apply budgets too rigidly
  2. Process of developing budgets can be very time consuming
  3. Budgets may limit innovation and change
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39
Q

TOOLS FOR FINANCIAL CONTROL

A

Financial Statements
Ratio Analysis
Financial Audits

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40
Q

a profile of some aspect of an organization’s financial circumstances

A

Financial Statements

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41
Q

2 types of Financial Statements

A

Balance sheet and Income Statement

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42
Q

is the calculation of one or more financial ratios to assess some aspect of the financial health of an organization

A

Ratio Analysis

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43
Q

are independent appraisals of an organization’s accounting financial, and operational systems.

A

Financial Audits

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44
Q

External audit and the Internal audit.

A

The two major types of financial audits:

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45
Q

An approach to organization design characterized by formal and mechanistic structural arrangements.

A

BUREAUCRATIC CONTROL

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46
Q
  • Organizations that use it rely on strict rules and a rigid hierarchy.
A

BUREAUCRATIC CONTROL

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47
Q
  • They focus their rewards on individual performance and allow only limited and formal employee participation
A

BUREAUCRATIC CONTROL

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48
Q
  • An approach to organizational control characterized by informal and organic structural arrangements
A

DECENTRALIZED CONTROL

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49
Q

Generally focuses on five aspects of organizations-structure, leadership, technology, human resources, and information

A

STRATEGIC CONTROL

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50
Q
  • Effective control, whether at the operation, financial, structural, or strategic level successfully regulates and monitors organizational activities
A

MANAGING CONTROL IN OPERATIONS

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51
Q
  • Over Control
  • Inappropriate Focus
  • Rewards for Inefficiency
  • Too much Accountability
A

RESISTANCE TO CONTROL

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52
Q

OVERCOMING RESISTANCE TO CONTROL

A

Encourage Employee participation
-Develop Verification procedures

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53
Q

The firm is concerned with what it does best, based on its
resources and experience, rather than with what consumers
want.

A

Production Orientation

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54
Q

It assumes that more goods and services will be purchased if aggressive sales techniques are used and that high sales result in high profits.

A

Sales orientation

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55
Q

It states that the social and economic justification for an
organization’s existence is the satisfaction of customer wants and needs while meeting organizational objectives

A

The Marketing concept

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56
Q

The marketing concept involves:

A

-Focusing on customer wants and needs
* Integrating all the organization’s activities
* Achieving long-term goals for the organization
* Market Oriented – customer focus
* Understanding your competitive arena
* Deliver customer value

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57
Q

States that an organization exists not only to satisfy customer wants and needs and to meet organizational but also to preserve
or enhance individual’s and society’s long-term best interests.

A

Marketing Societal Orientation

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58
Q

Marketing societal orientation focuses on what three marketing concepts?

A

Customers, organization itself and Society

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59
Q

The ratio of benefits to the sacrifice necessary to obtain those benefits.

Creating this is a core business strategy of many successful firms

A

CUSTOMER VALUE

60
Q

Marketers interested in customer value:

A
  • Offer products that perform
  • Give consumers more than they expect
  • Avoid unrealistic pricing
  • Give the buyer facts
  • Offer organization wide commitment in service and after-sales
    support
61
Q

It is the feeling that a product has met or exceeded
the customer’s expectations.

A

Customer Satisfaction

62
Q

A strategy that entails forging long-term
partnerships with customers and contributing to their success

A

Building relationships

63
Q

All employees in marketing-oriented firms must be customer oriented for the customer satisfaction goals to be met

A

Customer-oriented Personnel

64
Q

Leading marketers recognize the role of employee training in customer service

A

The role of training

65
Q

The practice of giving employees expanded authority to solve
customer problems as they arise

A

Empowerment

66
Q

It entails collaborative efforts of people to accomplish common objectives

A

Team work

67
Q

Gathering, analyzing, and interpreting information about the environment

A

Environmental Scanning

68
Q

Finding out what benefits people want the organization to deliver and what wants they want the organization to satisfy

A

Market Opportunity Analysis

69
Q

Developing marketing strategy by deciding exactly which wants and whose wants the organization will try to satisfy, setting marketing objectives; and by developing
appropriate marketing activities to satisfy the desires of selected target markets

A

Target Market Strategy

70
Q

Require (something) because it is essential or very important rather than just desirable

Human needs are the basic requirements and include food,
clothing and shelter

A

NEEDS

71
Q

Have a desire to possess or do (something); wish for.

It is a step ahead of needs and are largely dependent on the needs of humans themselves

A

WANTS

72
Q

High want/ low need
High want/ High Need
Low want/ Low need
Low want/ High Need

A

PRIORITIZATION MATRIX

73
Q

The items belonging here are the ones we typically question using; “ do we really needs the item?”

A

High want/ Low need

74
Q

This is the most powerful quadrant. When our wats and needs are aligned, we have high motivation to pursue such desires or prioritize for such items.

A

High want/ High Need

75
Q

Things in this quadrant can be safely ignored

A

Low want/ Low need

76
Q

This quadrant is the trickiest one to understand

We may discard an option superficially bot knowing its true worth

A

Low want/ High need

77
Q

overall impression of customer about
the supplier and the products and services delivered by the
supplier

A

Customer Satisfaction

78
Q

mostly depends on the behavior of its
senior subordinates, managers and internal employees

A

Suppliers Behavior

79
Q

The quality and
efficaciousness of the products is an important factor that enables compatible and hassle free functions and operation

A

Performance of products and services

80
Q

-products purchased by the ultimate consumer for personal use.

A

Consumer Products

81
Q

products purchased for use either directly or indirectly in the production of other goods and services for resale

A

Industrial Products

82
Q
  • Business competition is the contest between organizations that provide similar products or services or that target the same audience of consumers.
  • Businesses compete to convert and retain customers, increase revenue and gain more market share
A

Pure/ Perfect Competition

83
Q
  • A type of market structure where many companies are present in an industry, and they produce similar but differentiated products.
  • None of the companies enjoy a monopoly, and each company operates independently without regard to the actions of other companies
A

MONOPOLISTIC COMPETITION

84
Q
  • A competitive situation in which there are only a few sellers (of products that can be differentiated but not to any great extent); each seller has a high percentage of the market and cannot afford to ignore the actions of the others
A

OLIGOPOLISTIC

85
Q

A market structure where a certain product is produced or sold by a single company. It occurs when no competitors or substitute products exist in the market

A

PURE MONOPOLY

86
Q

The division of the total market into relatively homogenous groups

A

MARKET SEGMENTATION

87
Q

The market segment must be ____________ in terms of both purchasing power and size.

A

measurable

88
Q

Marketers must be able to effectively __________ the market segment

A

promote to and serve

89
Q

Market segments must be ________ to be potentially profitable

A

sufficiently large

90
Q

The number of segments must _____________________________

A

match the firm’s marketing capabilities

91
Q

it results from the isolation of factors that distinguish a certain group of consumers’ from the overall market

A

MARKET SEGMENTATION

92
Q
  • The dividing of an overall market into homogeneous groups based on population location.
  • It divides the market into different geographical units such as nations, regions, states, countries, or cities
A

GEOGRAPHIC SEGMENTATION

93
Q

Dividing consumer groups according to demographic variables such sex, age, income, occupation, education, household size, and stage in the family life cycle

A

DEMOGRAPHIC SEGMENTATION

94
Q

-Dividing a market into different segments based on social class, lifestyle, or personality traits

A

PSYCHOGRAPHIC SEGMENTATION

95
Q

young people (median age 31) who lead active lives. They are under stress most of the time and prefer goods and services that are sources of instant gratification

A

STRIVERS

96
Q

They are affluent, assertive, and serve as society’s opinion and style leaders. Achievers value status and quality in the brands they buy and are largely responsible for setting trends

A

ACHIEVERS

97
Q

mainly women, in every age group, who find it extremely difficult to manage all the
problems in their lives. They have little time for enjoyment

A

PRESSURED

98
Q

older consumers who live comfortably. They are content with themselves and their lives, and they recognize and respect new ideas without losing sight of their own values. They are willing to try new products that enrich their lives

A

Adapters

99
Q

those who embody the oldest values of their countries and cultures. They are resistant to change, and they are content with familiar products.

A

TRADITIONALS

100
Q
  • Sometimes called behavioral segmentation—focuses on the attributes that people seek in a product and the benefits that they perceive existing products to have.
  • Dividing a market into segments based on consumer knowledge, attitudes, uses, or response to a product
A

BENEFIT SEGMENTATION

101
Q

Identify Market segmentation Bases
Develop relevent profiles for each segment
Forecast Market Potential
Forecast Probable market share
Select specific market segments

A

THE MARKET SEGMENTATION

102
Q

Segmentation begins when a firm seeks bases on which to identify markets.

A

Identify market segmentation bases

103
Q

Market potential sets the upper limit on the demand that can be expected from a segment, determines maximum sales potential.

A

Forecast Market potential

104
Q

This deeper analysis of customers
is needed for managers to more
accurately match customers’
needs with marketing offer

A

Develop relevant profiles for each segment

105
Q

The proportion of demand that the firm may capture its probable market share-must be forecasted.

A

Forecast Probable Market Share

106
Q

The information, analysis, and forecasts
accumulated through the entire market
segmentation decision process allow
management to assess the potential for
achieving company goals and to justify
the development of one or more
segments.

A

Select Specific Market Segments

107
Q

This strategy is sometimes called
mass marketing.
A market-coverage strategy in
which a firm decides to ignore
market segments differences and
go after the whole market with one
offer

A

Undifferentiated Marketing

108
Q

This strategy is still aimed at
satisfying a large part of the total
market.
The organization markets a
number of products designed to
appeal to individual parts of the
total market

A

Differentiated Marketing

109
Q

A firm may choose to focus its efforts
on profitably satisfying only one
market segment.
Niche marketing is particularly
appealing to small firms that lack the
financial resources of their
competitors

A

Concentrated Marketing

110
Q

means planning, organizing, directing
and controlling the financial
activities such as procurement
and utilization of funds of the
enterprise.

A

FINANCIAL MANAGEMENT

111
Q

It includes investment in fixed assets called as capital
budgeting. Investment in current assets are also a part of investment decisions called as working capital decisions.

A

INVESTMENT DECISIONS

112
Q

Investment in current assets are also a part of investment decisions

A

working capital decisions.

113
Q

It includes investment in fixed assets

A

Capital Budgeting

114
Q

They relate to the raising of finance from various resources which will depend upon decision on type of
source, period of financing, cost of financing and the returns

A

FINANCIAL DECISIONS

115
Q

The finance manager has to take decision with regards to
the net profit distribution.

A

DIVIDEND DECISIONS

116
Q

Dividend and the rate
of it has to be decided

A

Dividend for shareholders

117
Q

Amount of retained profits has
to be finalized which will depend upon expansion and diversification plans of the enterprise

A

Retained Profits

118
Q

Firm’s profitability, liquidity and risk all are associated
with the investment in current assets. In order to
maintain a tradeoff between profitability and liquidity it
is important to invest sufficient funds in current assets.

A

LIQUIDITY DECISION

119
Q

This will depend upon expected costs and profits and future programs and policies of a concern.

A

Estimation of capital requirements

120
Q

This depends on the company’s equity capital and the additional funds needed from external sources

A

determination of capital composition

121
Q

Issue of shares and debentures
Loans to be taken from banks and financial institutions
Public deposits to be drawn like in form of bonds.

A

Choices of sources of funds

122
Q

Decide to allocate funds into profitable ventures so that there is safety on investment and regular returns is possible.

A

Investment of funds

123
Q

Dividend declaration - It includes identifying the rate of
dividends and other benefits like bonus.
Retained profits - The volume has to be decided which will
depend upon expansional, innovational, diversification plans
of the company.

A

Disposal of surplus

124
Q

Cash is required for many purposes like payment of wages
and salaries, payment of electricity and water bills, payment
to creditors, meeting current liabilities, maintenance of
enough stock, purchase of raw materials

A

Management of cash

125
Q

This can be done through many techniques like ratio analysis,
financial forecasting, cost and profit control.

A

Financial Controls

126
Q

The process of estimating the
capital required and determining
its composition. It is the process of
framing financial policies in relation
to procurement, investment and
administration of funds of an
enterprise

A

Financial Planning

127
Q

Roles of a financial manager

A
  • performs all the requisite financial
    activities.
  • takes care of all the
    important financial functions of an organization
  • must maintain a far sightedness in
    order to ensure that the funds are utilized in the most efficient manner
  • His actions directly affect the
    Profitability, growth and goodwill of the firm
128
Q

It is the responsibility of a financial manager to decide the
ratio between debt and equity. It is important to maintain a
good balance between equity and debt

A

Raising Funds

129
Q

The funds should be allocated in such a manner that they are optimally used

A

Allocation of funds

130
Q

It refers to proper usage of the profit
generated by the firm.

A

Profit Planning

131
Q

arises due to many factors such as pricing, industry competition, state of the economy, mechanism of demand
and supply, cost and output

A

Profit

132
Q

Shares of a company are traded on stock exchange and
there is a continuous sale and purchase of securities.

A financial manger understands and calculates the risk
involved in this trading of shares and debentures

A

Understanding Capital markets

133
Q

It is referred to as the ratio of
different kinds of securities raised
by a firm as long-term finance

A

Capital Structure

134
Q

Types of securities that can be determined by process of capital
gearing.

A

Relative ratio

135
Q

those companies whose proportion of
equity capitalization is small.

A

Highly geared companies

136
Q

Those companies whose equity capital
dominates total capitalization

A

Low geared companies

137
Q

comprises of share
capital, debentures, loans, retained
profit.

represents
permanent investment in
companies excluding long-term
loans

A

Capitalization

138
Q

is a situation in which actual profits of a company are not sufficient enough to pay interest on debentures, on loans and pay dividends on shares over a period of time.

this situation arises when the company raises
more capital than required.

A

Over Capitalization

139
Q

is one which incurs exceptionally high profits as compared to industry

company situation arises
when the estimated earnings are very low as compared to actual profits.

A

Under capitalization

140
Q

Typically refers to the standard or usual
capital structure of a company, which
includes a combination of equity (such as common stock) and debt (such as loans or bonds). It represents how a company has financed its operations and growth

A

Normal Capitalization

141
Q

is the amount of money a business or individual earns
after deducting all expenses, including the cost of goods
sold, operating costs, and taxes

A

Profit

142
Q

It is a short-term financial goal and is primarily focused on generating income to cover costs and, ideally, provide a surplus

A

profit

143
Q

essential for the sustainability and day-to-day operations of a business

A

Profit

144
Q

is the accumulation of assets, which can include cash, investments, real estate, valuable possessions, and other
resources, minus liabilities (such as debts

A

Wealth

145
Q

It is a long-term financial goal that emphasizes building and growing one’s net worth over time

A

Wealth

146
Q

crucial for the ongoing viability of a business or individual, ensuring that there is enough money to cover expenses and generate income. It is a short-term indicator of financial health

A

Profit

147
Q

a long-term goal that focuses on creating financial stability, security, and opportunities for the future. It involves accumulating assets and managing
them wisely to grow one’s net worth over time

A

Wealth

IBP (4 decks)

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