Final Exam Flashcards

Question

products and services related KPI

Answer 1

returns defects warranty claims waste

Answer 2

81%; toronto, montreal, calgary, ottawa, etc

Answer 3

individual, household, proxy(stores, gas pumps)

Answer 4

individuals consumables or demand market size/share revenue profitability supply needed saturation competition

Answer 5

calculate group/demand market size/share revenue profitability supply needed saturation competition

Answer 6

of stores in area; population/store company revenue/profitability market size supply saturation of the market

Answer 7

total addressable market entire market for your product

Answer 8

serviceable addressable market size of your segment (target)

Answer 9

serviceable obtainable market your share: how much of segment you can win

Answer 10

price revenue profitability - quantity fixed costs quantity variable cost/unit

Answer 11

population (household or infividual) x % of pop x purchase frequency x purchase quantity x unit cost

Answer 12

revenues per day/store/customer -> number of stores/days/customers -> total revenues

Answer 13

customs habits values/attitudes demographic characteristics

Answer 14

cohort size cohort characteristics cohort participation future and trends

Answer 15

fertility rate birth rate

Answer 16

% of cohort that engages in a behaviour

Answer 17

a strategic tool used to evaluate the forces driving and restraining a particular change or decision.

Answer 18

study of human populations

Answer 19

homogenous groups within the large population

Answer 20

boomers create challenges as they age

Answer 21

smaller youth group

Answer 22

economics technology world events/news parenting

Answer 23

values and priorities lifestyle habits (digital/other) mindset

Answer 24

customer preferences worker attitude/behaviour market segmentation

Answer 25

increased demand for healthcare and retirement services

Answer 26

strain on pensions and healthcare systems

Answer 27

tech savy and adaptable presenting opportunities in digital marketing

Answer 28

high turnover rates in employment

Answer 29

easier to target urban markets

Answer 30

shrinking rural markets

Answer 31

diverse markets and younger labour force

Answer 32

need for cultural adaptability

Answer 33

inflation/deflation interest rates employment rates exchange rates

Answer 34

banks and alternate banks specialized lending/saving intermediaries investment dealer

Answer 35

-make deposits, borrow money -small and medium enterprises (SMEs) primary lending source -primary source for businesses and SMEs

Answer 36

-for mid-large businesses -private equity financing and borrowing -offers more money then a bank -private -for investing in businesses

Answer 37

-for large and established companies -for going public; stocks and bonds -for large organizations -for businesses who are willing to give up privacy

Answer 38

borrow money retain control must be repaid must pay interest(tax deductible) legally binding

Answer 39

give up ownership no interest or repayment share control and profuts

Answer 40

what you make on a stock

Answer 41

selling price-purchase price-relevent expenses

Answer 42

percentage return expected or recieved on investment

Answer 43

enables comparison of investment returns and pricing of investments

Answer 44

risk free return+risk free premium

Answer 45

what the bank pays on your deposits

Answer 46

extra return expected for riskiness of investment

Answer 47

coupon rate x face value + (FV-price paid/time to maturity) __________________________________________ price paid

Answer 48

legal, binding agreement fixed annual return (paid semiannually) fixed term principal repaid at maturity priority over stock holders

Answer 49

pay semiannually and compound semiannualy

Answer 50

they fall, and other way around

Answer 51

When you buy a bond, you’re lending money to a company, government, or other organization. In return, they promise to pay you back the amount you lent (called the principal) after a certain amount of time (the maturity date), plus interest payments along the way (called the coupon).

Answer 52

voting rights no fixed term variable return(capital gain upon selling) discretionary payment (dividends) higher risk then bond

Answer 53

using your own money for an investment

Answer 54

portion of your own money plus money from broker

Answer 55

% that represents portion of equity that you need to cover

Answer 56

interest rate or discount rate

Answer 57

number of periods n=yearsxpayments (nxp)

Answer 58

payment amount

Answer 59

nominal rate given in the question (used to calculate r)

Answer 60

compounding frequency per year

Answer 61

payment frequency per year

Answer 62

use when m and p are the same

Answer 63

full length of mortgage

Answer 64

length of agreement of interest rate

Answer 65

when m and p are not the same

Answer 66

money you put down before anything else

Answer 67

variables equations numbers therefore

Answer 68

amnt originally owed-amnt still owing

Answer 69

total payments made-principal repaid

Answer 70

interest rate changes (inverse relationship) risk premium and market conditions

Answer 71

company performance market conditions investor sentiment and economic outlook

Answer 72

borrowing money to invest in stocks using the stock itself as colateral

Answer 73

must qualify for a margin account and sugn hypothecation agreement maintain min. margin requirment

Answer 74

happens when an investor borrows money from a broker to buy more stock than they could afford with their own cash

Answer 75

growth stocks and high investments yield higher returns

Answer 76

focus shifts to defensive stocks and bonds

Answer 77

risk real interest inflation

Answer 78

amount of money of current time (need now, worth today, how much willing to pay)

Answer 79

amount of money at some point in the future (how much will you have, how much should you invest to have ___ in ___ years, you need ___ to retire)

Answer 80

single, lump sum that accumulates interest (how much will you need today, make a deposit today)

Answer 81

stream of equal payments that accumulate interest (how much do you have to save per month, you are looking to finance, annual payments be)

Answer 82

payment occurs at beginning of the period (starting now)

Answer 83

payment at the end of the period (savings questions)

Answer 84

annuity: ends after certain term. retirement plans, investment plans, mortgages perpetuity: payment occurs forever

Answer 85

laws regulations taxes trade agreements or conditions

Answer 86

lobbying collaboration/input advertising

Answer 87

the act of trying to influence decisions made by government officials, such as legislators, regulators, or public officials. It is typically done by individuals, groups, or organizations that want policies or laws to reflect their interests.

Answer 88

must register and follow rules, have to describe who you represent

Answer 89

CRTC consults with industry members

Answer 90

corporations influence voters get to gov. through people ex. with contracts

Answer 91

service provider business support laws, regulations taxation

Answer 92

approach: canada post, public education impact: competition, social goals

Answer 93

approach: subsidies, trade agreements impact: opportunity, protection

Answer 94

approach: competition, consumer, pollution, laws, IP rights impact: competition, consumer protection, innovation, social goals, barriers

Answer 95

approach: income(business and personal), sales, property restrictive impact: consumer spending, incentives, barriers

Answer 96

indirect export sales agent licensing/franchising joint venture sales office foreign subsidiary

Answer 97

selling via third party exporters

Answer 98

local distributor or agent

Answer 99

allow local use of IP

Answer 100

partnership with local firms

Answer 101

maintain production domestically

Answer 102

full control with local operations

Answer 103

limited control

Answer 104

limited marketing control

Answer 105

licensing/franchising risk

Answer 106

partner incompatabilities

Answer 107

trade barriers

Answer 108

high costs

Answer 109

sole proprietorship partnership corporation

Answer 110

public and private

Answer 111

general partnership limited partnership

Answer 112

all partners have joint and several liability

Answer 113

limited partners liability cannot be active in management at least one general partner

Answer 114

prioritize value over profit ex. SOS, garmeen bank

Answer 115

help overcome market inequalities/failures social value is primary objective but financial sustainability imperative

Answer 116

economic value not required priority dual stakeholders

Answer 117

world becoming single interdependent system

Answer 118

cost and market benefits technology makes it easier, faster, cheaper competitive pressure

Answer 119

internal: knowledge/capabilities, production, preference, finances political: quotas, tariffs, subsidies, protectionism, local content laws, business practice laws social & cultural: customer needs, customer values, language, norms 5 forces: distribution, customers, competition, suppliers, substitutes economic: exchange rate, foreign GDP technological: IP laws, technology standards

Answer 120

PUBLIC: expensive, complicated, many regulations, BOD control, can afford resources, taxation taxed separately from shareholders; higher than private, liability limited to investment PRIVATE: straightforward and inexpensive formation, few simple regulations, control shared with other shareholders, resources are whatever owners bring, taxation private corp. rates, liability limited to investment except personal assets brought into business

Answer 121

market penetration market development product development diversification

Answer 122

develop related or unrelated products your customers value; product line extension

Answer 123

build on customer knowledge and brand equity distribution strategies and product complementary/bundling

Answer 124

cannibalization give up production efficiency must know how to develop new product

Answer 125

rather then generating new sales, customers switch which product they buy. adding costs but no new customers which is bad

Answer 126

extend product repackage existing products create bundles of complementary products that add value to eachother

Answer 127

Can I leverage existing brand and/or distribution? Can my facilities manage or do I have to build new ones? Can I produce & sell at a profitable scale? How much new product expertise will I need?

Answer 128

if the products are not product line extensions but completely new and complementary, you are entering a new industry: Will customers be willing to switch to my new product? Rivalry: aggression? Barriers to entry for this new industry?

Answer 129

Sell more of existing product to existing target market = greater market share and/or greater purchase frequency

Answer 130

build on what you have and know no change economies of scale in production and selling do more of same=low cost per unit

Answer 131

competitor reaction winning customers

Answer 132

Cut prices Increase advertising, loyalty schemes Increase distribution channels Volume incentives Buy a competitor

Answer 133

Capabilities: Can I persuade customers to consume more of my product? Resources: Do I have to use new distribution channels? Should I? Can I? Resources: Do I have the production capacity to meet the increased demand?

Answer 134

Buyers: Propensity to switch? Lock in/switching costs? Brand loyalty? Rivalry: Fragmented vs concentrated, growing vs declining, aggressive vs passive competitor - How much share do I already have? Can it grow?

Answer 135

Selling what you already produce to new target markets (market segments) or new geographic markets

Answer 136

Capitalize on production capabilities economies of scale pursue less contested or larger market; diversification of customer base

Answer 137

customer access and awareness

Answer 138

Create awareness in new market – pitch benefits to new customers Expand geographically

Answer 139

Resources: Will this affect brand image? Should I use a different brand name? Capabilities: Will the product need any adjustments? Can I make them? Do I have the resources and capabilities to go international?

Answer 140

Entry barriers: Can I access the distribution channels to reach this new market? Are the customers accessible? Will they switch? Rivalry: fragmentation, aggression, growth? Differentiation – are there market segments that are under-served?

Answer 141

chasing new customers with new products; creating new businesses concentric/horizontal vertical conglomerate

Answer 142

related products/services similar market

Answer 143

moving up or down supply chain

Answer 144

unrelated industries/products greatest risk

Answer 145

diversify business portfolio by building new business capitalize on existing capabilities in higher growth areas

Answer 146

many activities and capabilities must be created or changed = high risk of failure

Answer 147

Acquire other business Use joint ventures and alliances

Answer 148

What new capabilities and resources will I need? Can I build or buy them? How much will I have to change operations? HR? structure?

Answer 149

Can I access the distribution channels to /enter reach this new market? Are the customers accessible? Will they switch? Rivalry: fragmentation, aggression, industry growth? Other barriers to entry? Can I access the needed suppliers?

Answer 150

understand your: company customer competition product

Answer 151

can we? - diamond e internal should we? - diamond e external where? - PEST, porters how? - strategy

Answer 152

internet information tech material and equipment

Answer 153

music travel transportation publishing retail

Answer 154

needed for value additional products required for main products value

Answer 155

enables compatibility of complementary goods

Answer 156

number of users for a product

Answer 157

extent to which a customer is committed to a product/service

Answer 158

greater resistence to switch

Answer 159

habit or system learning investment switching costs

Answer 160

lower switching costs offer leap in performance

Answer 161

value increases as user base grows

Answer 162

compatibility partnerships incentives build base

Answer 163

positive or negative feedback loop in which network effects either enhance or diminish products appeal

Answer 164

positive A virtuous cycle is a positive feedback loop where one favorable action or condition leads to another, reinforcing overall success and growth. ex. network effect

Answer 165

negative A vicious cycle is a negative feedback loop where one unfavorable action or condition leads to another, reinforcing decline or failure.

Answer 166

availability of complementary goods -> attractiveness to users -> number of users (installed base) -> attractiveness to producers of complementary goods ->

Answer 167

ecommerce and omni channel virtual and augmented artificial intelligence

Answer 168

online research/shopping seamless experience between platforms, online/physical experience

Answer 169

enhanced marketing improved efficiency enhanced data higher margins

Answer 170

replicates an environment or maps over reality

Answer 171

experience without purchase reduced cost enhanced experience

Answer 172

machines that are programmed to think like humans fast gathering of data

Answer 173

task automation less bias better/faster decisions predictive capabilities

Answer 174

products-innovation, uniqueness, value improved info use - access and sharing competitive advantage; barriers to entry customization

Answer 175

imitation - info costly to develop but cheap to share new tech. and new entrants in unfamiliar areas - need new capabilities, resources and learning info overload and security disconnected employees/customers

Answer 176

radical/disruptive architectural modular incremental/sustaining

Answer 177

improves existing products in expected ways ex. tesla updates

Answer 178

different performance attributes not valued by mainstream ex. Netflix disrupting Blockbuster

Answer 179

Changes to one or more components of a product without altering its overall structure or architecture. ex. digital camera compared to film camera

Answer 180

Reconfiguring existing components of a product or system in new ways to create new value. ex. Sony’s Walkman, which combined existing technologies in a portable format.

Answer 181

achieving financial performance meeting customer needs building quality products/services encouraging innovation/creativity creating comp. advantage gaining employee commitment

Answer 182

new entrants substitutes