Cluster Exam Flashcards
Direct Distribution
Manufacturer to the consumer
Indirect Distribution
Manufacturer to middleman to consumer
Intensive Distribution
Maximizing coverage of product
Selective Distribution
Limited, but specific, distribution of product
Between intensive and exclusive
Exclusive Distribution
Very few stores have the right to sell product
Industrial User
Purchases goods in order to manufacture other goods
Associations with color are most important for
Businesses
Capital resource
Assets used to manufacture goods
When to plan for an exit strategy?
In the beginning of the business / business plan
Debt Factoring
Selling a company’s account receivables
How many categories, at least, does an income statement have, and what are they?
5- Revenue, COGS/COS, Gross profit, Operating expenses, and Net profit
Zero based budgeting
Rebuilding budget for every budgeting period
Common-sized statements
Uses percentages for comparing
companies to others/industry
Vertical analysis
Shows relative size of one thing to the total amount
Ex: Clothes account for 8% of all sales
Horizontal analysis
Compares company performance over time
Legal questions to ask on a job application
Job availability
Ability to fulfill job req.
Criminal history
Experience
Military history
JACEM
Sales promotion
Short-term incentive to purchase product
Ex: Person who buys the most gets free car
Marketing goal
Specific and measurable objective in context of marketing
Ex: Increase sales by 5%
Note: It’s a GOAL, not a strategy.
Rate of use (marketing segmentation)
Marketing that categorizes customers based frequency of usage
Ex: Heavy, moderate, and light drinkers
Why do advertisers develop customer profiles?
To understand customers’ interests, activities, and concerns
The first question that a new business owner should ask when determining the
venture’s technology needs
What software programs will help the business operate efficiently?
Process thinking
Analyzing steps, stages, and/or components of a business process, and improving them
Contraction (product mix)
Removing products from product mix
Advergaming
Advertising through gaming
Enterprise risk management
Analyzing combined impact of all risks in a company
Note: Not all risks are negative
Risk management plan
Separates risks into categories to be able to manage them
Note: Doesn’t reduce risk in itself
Inside-Out analysis
Looks at businesses internal strengths/resources, and how those can be leveraged externally
What phase of prod. life cycle do copycats appear?
Growth
Corporate responsibility (or Corp. Social Resp.)
The responsibility of businesses to act to improve society
Point-of-sale (POS) promotion
Advertising other products while a customer that has made the decision to buy
Continuous production
Producing products continuously for high demand products
Think Economies of Scale
Calculate business cash receipts
Cash Receipts = Sales + Change in Acc. Rec.
Primary stakeholder(s) affecting corporate governance
Board of directors
Preventive discipline
Managing people so that they do not need to be disciplined
(love over fear)
Corrective discipline
Discourages further violations after infractions have already occurred
(Fear over love)
Gap analysis
Compares business’ current state with its target state
4 parts of product mix
Width (#of lines)
Length (total product)
Depth (# of product variations)
Consistency
Market Segmentation
Segmenting markets based of specific qualities
Revenue Streams
Different ways businesses make money and raise revenue
Break-even Analysis
Finding point where total revenue equals total costs
Cash Flow Statement
Shows how cash entered and exited a company
Branding
Creating a distinct image/identity for a company
Value chain
Illustrates steps in a business process that add value to product or service
Business Ecosystem
Network of partners, suppliers, and customers that interact and support your business
Consumer Acquisition Cost
Cost to convince a customer to buy a product or service
Brand Equity
Social/Emotional importance of brand to consumer
Brand Value
Financial value of brand to consumers
Corporate Social Responsibility
Expectation that a company should act to improve society
How to analyze if resources are necessary
PASE
Productivity/Profitability
Affordability
Sustainability
Ease of acccess
Creative ways to market
User generated content
Personalized mktng. messages
Influencer mktng.
Fundraiser/Charity
Contests
Wrongful termination examples
DROWL
Discrimination
Retaliation
OSHA violation complaints
Whistleblowing
Lie Detector test refusal
Benefits of joining a professional community
Spreading brand
Access to more resources
New perspectives
Mentoring
More business
How to lower insurance premiums
Check deductibles
Discontinue extra coverage
Ask for discounts
When to “fast fire”
When unethical actions are related to job / poses great risks
Theft
Drug/Alcohol usage
Dishonesty
Business analyst
Recognizes weak areas in business, then introduces and manages change in an organization
Characteristics of effective Board members
-Independent from business
-Provide external perspectives
-Educated / Experts
10 most common business objectives
GMV 4C 2P 2S
- Profitability
- Productivity
- Customer Service
- Employee attraction and retention
- Values
- Growth
- Cash flow
- Change
- Market
- Competition
Supply Chain Management Benefits
Better CRM, efficiency, risk, and costs
What is promotion
HOW you market
