Final Exam Flashcards
How do companies improve cash flow?
TSMP: Turn receivables, Stretch payables, Minimize Inventory
Leverage
When a firm has the right mix of of debt and equity
Capital Budgeting
Process of analyzing the needs of the business and selecting the assets that will maximize its value.
Long-term assets = best.
Long Term Funding
Bonds
Owner’s Equity
Outside Investments/Stock and Retained Earnings
Four Stages of the Product Life Cycle
IGMD: Introduction, Growth, Maturity, Decline
Product Line
Group of closely related products that are treated as a unit because of similar marketing strategy, production, and end-use considerations.
Ex: Touch screens, cases, folders, keybaords
Product Mix
All products offered by an organization.
Ex: Samsung offers computers, phones, tablets, etc.
Market Analytics
The process of identifying patterns and relationships within customer data- gathered from past customer purchases to increase the effectiveness of marketing activities.
Earned Media
Online word of mouth; usually seen in the form of vial tendencies, mentions, shares, reposts, etc.
Operations
Development and administrations of the activities involved in transforming resources into good and services.
Three Inventory Costs
OSC: Ordering Costs- cost of ordering products
Stock out Costs- cost of stocking out of products
Carrying Costs- cost of holding onto products
Productivity
The amount of output generated from a given to the manufacturer.
Yield
RAP: Ratio of Acceptable Product
Throughput
A measure of rate or speed
Supply Chain
SMO: An integrated group of processes to source, make and deliver products.
What is the goal of BIS?
Right information, right place, right time.
Algorithm
A set of instructions, sometimes called a procedure or a function, which is used to perform a certain task.
Ex: A recipe.
Big Data
The massively increasing amounts of data (volume) that comes from many more different sources and many more different forms (variety) and is available most instantly. More and more bc are trying to capture and analyze this flood of data to make better decisions.
Cloud Computing
A model for delivering information technology services in which resources are retrieved from the internet though web-based tools and applications, rather than a direct connection to a server.
Database
A collection of data stored in one place and accessible thought a network.
Infographic
Graphic visual representations of information, data or knowledge. These graphics present complex information quickly and clearly. Often this term is used interchangeably with data visualization. Has become increasingly important as the amount of data has exploded.
Organizational Structure
Defining activities and tasks and assigning responsibility for them.
Centralized Structure
Authority is concentrated at the top of an organization.
Decentralized Structure
An organization where decision making authority is delegated as far down the chain of command as possible.
Organizational Culture
Group norms of behavior and the underlying shared values that help keep those norms in place.
Agency Theory
Look at the alignment of interest between owners and management.
Management
A process designed to achieve an organization’s objectives by using its reduces effectively and efficiently in changing environment.
Five Primary Functions of Management
- Planning
- Organizing
- Staffing
- Direction
- Controlling
Scientific Management
Break down processes into discrete tasks and get out the stop watch.
MBE (Management by Exceptions)
A process of management whereby managers only intervene to take corrective action.
MBO (Management by Objectives)
A work performance review system that involves setting specific and challenging goals and then reviewing employee’s progress towards achieving those goals.
MBWA (walking around)
Unstructured approach to hands on direct participation by the managers in the work related affairs not their subordinates.
Strategy
A company’s navigational gear; determine the destination and chart a course.
Competitive Advantage
An Advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices.
Sustainable Competitive Advantage
A long term competitive advantage that isn’t easily relocated by competitors.
Porter’s Five Forces
- Bargaining Power of Suppliers
- Bargaining Power of Customers
- Threat of New Entrants
- Threat of Substitutes
- Competitive Rivalry between Existing Players
Porter’s Model
- Corporate strategy should meet the opportunities and threats in the organization’s external environment.
- Five forces shape every industry & market.
- Forces determine the intensity of competition and hence the profitability and attractiveness of the industry.
- Using the forces, management can decide how to influence or to exploit particular characteristics of their industry.
Classical Theory of Motivation
Money is the sole motivator for workers.
By: Fredrick Taylor
Herzberg’s Two Factor Theory
Theory of motivation that focuses on the job and the environment where work is done (hygiene & motivational factors)
Hygiene (Herzberg)
-salary, supervision, conditions, etc.
Motivational Factors (Herzberg)
-advancement, growth, recognition, accomplishment
Expectancy Theory
Assumption that motivation depends on not only how much a person wants something but how likely they are to get it.
Equity Theory
Assumption that how much people are willing to contribute to an organization depends on their assessment of fairness or equity of the rewards they will receive in exchange.
Monkey example
Reinforcement Theory
Set up positive and negative reinforcement to motivate a person to behave a certain way.
What does he say “if-then” (carrots & sticks) are good for? (Dan Pink)
Mechanical Skill sets: Higher pay > better performance.
What role does pay/money play in motivation? (Dan Pink)
Higher Incentives (pay) led to worse performances in more complex thinking jobs.
Autonomy
Desire to be self-directed; ex: have control over your life
Mastery
Urge to get better at something; ex: be better than your current self
Purpose
Sense of belonging to feel like you’re contributing; ex feeling that you’re a part of something bigger than yourself.
Critic of Dan Pink says:
Carrot Stick method has no purpose in this day and age, but in reality if properly managed, can be powerful tools of productivity.
Important Values to Leadership
- Being rooted in who you are and what matters to you
- Self-Reflection
- Balance (ability to see multiple perspectives)
- Self-Confidence
- Genuine Humility
Sustainability is about…
Making decisions that consider impacts on the future.
Three areas that have pushed for Sustainability
Environmentalism:
* Keeps spotlight on issues * Legal challenges to business and government * Lobbies the government
Government Regulation:
* Price tag on Negative Externalities * Protects the commons: what we all own
Consumer:
*Consumer deicison making
Areas to focus on Sustainability
Materials, Processes, Waste & DESIGN
What is the current business model/system for Sustainability (Ray Anderson) INTERFACE
“Take, make, waste.”
*We need to go from linear to circular
Ethical Relativism
Making ethical choices on the basis of prevailing view of a particular individual, culture, historical period.
Business Ethics
The principles and standards that determine acceptable conduct in business organizations.
Why do people do bad things?
Rationalization:
- Psychological distance/Abstraction
- Motivation
- Critical Relativism
FTC (Federal Trades Commission)
Enforces laws and guidelines regarding business practices, takes action to stop false and deceptive advertising and labeling.
SEC (Securities and Exchange Commission)
Regulates corporate securities trading and develops protection from fraud and other abuses; provides an accounting oversight board.
Ethical Supply Chain (Prof. Richard Locke finds… to be effective)
- Relationship between a company and supplier need to change
- The fault of the company’s business model
*Codes of conduct do not work
What are the main drivers of sustainability? (Boston Consulting Group)
- Create an index to provide product teams with real-time feedback on how much waste a product is creating
- Utilize preferred materials that have zero toxins
- Created over 50 closed-loop systems
Triple Bottom Line Accounting
People, the Planet, and Profitability = equal in corporate mission
Benefit Corporation (B Corp.)
Type of corporation in which social and environmental outcomes get equal standing with economic outcomes. Emphasize equality.
3 Things Customers can do to become enlightened about sustainability
- Use tools like the Goodguide
- Look for substantive efforts and results by companies
- Look for valid certification
Balance of Payments
The difference between the flow of money into and out of a country (through trade)
Trade Deficit
A nation’s negative balance of trade which exists when that country imports more business selling products at less than what it costs to produce them.
Dumping
The act of a country or business selling products at less than what it costs to produce them.
