Foundations of ENTR Final Flashcards
Transfer funds from savers to borrowers
Disperse money from saving ppl to ppl who need to borrow
Financial Markets
Financial intermediaries that obtain funds by accepting checking and savings deposits and then lending those funds to borrowers
Banks, allow you to open savings to disperse to other ppl
Depository institutions:
3 Depository institutions:
Commercial banks
Credit unions:
Savings and loan associations:
Owned by its depositors
Credit unions:
Obtain funds by accepting savings account deposits used to make mortgage loans
Primarily used for mortgages
Savings and loan associations:
Institutional Investors
Securities Brokers
Securities Dealers
Investment Banks
Nondepository Financial Institutions
Amass financial capital and use it to acquire a portfolio of different assets
Institutional investors
Act as agents for investors who want to buy and sell financial securities
agents who make the connections, so they can make the deals. They make a commission on deals they make
Securities brokers
Participate directly in securities markets, buying and selling stocks for their own accounts
buying and selling on their own
Securities dealers
Specialize in helping firms raise financial capital by issuing securities in primary markets
goal to help borrowers raise financial capital; finding private purchasers
Investment banks
Established the Federal Reserve System as the central bank of the United States
Federal Reserve Act of 1913
Established Federal Deposit Insurance Corporation to insure bank deposits
Prohibited commercial banks from selling insurance or performing the functions of investment banks
insure deposits, established fdic
Banking Act of 1933
Required firms issuing new stocks in a public offering to file a registration statement with the Securities Exchange Commission (SEC)
make sure filing is accurate and know
Securities Act of 1933
Don’t go through this, not on final
Established the Securities and Exchange Commission to regulate and oversee the securities industry
Securities Exchange Act of 1934
know what this is- if auditing an accountant, can not have a conflict of interest byt providing other services for you. AKA you are not connected through accountat
Ensured that external auditors offered fair, unbiased opinions when they examined a company’s financial statements
Sarbanes-Oxley Act, 2002
Not as important
Overturned the section of the Banking Act of 1933 that prohibited commercial banks from selling insurance or performing the functions of investment banks
Financial Services Modernization Act of 1999
KNOW
- Gave govt more authority over non banking institutions
Expanded the Fed’s regulatory authority over nondepository financial institutions
Dodd-Frank Act of 2010
Common Stock Preffered Stock Bond Convertible Securities Mutual Fund Exchange Traded Fund (ETF)
Types of Securities
if firm goes bankrupt, they get money back before common stock, need to pay them first anyways for dividends
Gives its holder preference over common stockholders in terms of dividends and claims on assets
Preferred stock
Basic form of ownership in a corporation
last on list
Common stock
Formal debt instrument issued by a corporation or government entity
Bond
Bond or share of preferred stock that gives its holder the right to exchange it for a stated number of shares of common stock
shared of preffered stocks that u can exchange to common stock
Convertible securities
Institutional investor that raises funds by selling shares to investors and uses the accumulated funds to buy a portfolio of many different securities
invest in a more diverse portfolio, mixes up all securities and slices them to share stocks from x firms
Mutual fund
Shares traded on securities markets that represent the legal right of ownership over part of a basket of individual stock certificates or securities
market basket of individual stock securities, different types
Exchange-traded fund (ETF)
Basic Rights of Common Stock
Voting rights - Right to dividends - Capital gains: Preemptive right - Right to a residual claim on assets
Right to vote on important issues in the annual stockholders’ meeting
Voting rights -
- Distribution of earnings to the corporation’s stockholders
They get dividends if earner
Right to dividends
Return on investment received if the price of the stock rises above the amount paid for it
if stock rises higher than paid for, taxable, get money
Capital gains:
Right to purchase new shares in proportion to existing holdings
u have 1st dibs to purchase new stock if adding more in proportion
Preemptive right
Assets Prolly not gonna get any tho
Right to a residual claim on assets
Maturity Date
Par Value
Coupon Rate
Current Yield
Features of Bonds
Date when a bond will come due
Maturity date:
Value of a bond that the issuer promises to pay the bondholder when the bond matures
what they pay u when bond matures
If u sell bond early, u can sell at premium or loss
Par value:
Interest paid on a bond
Expressed as a percentage of the par value
Coupon rate
Amount of interest earned
Expressed as a percentage of the bond’s current market price
Current yield:
Bonds can be sold to other investors before maturity, but the price received _____ correspond to the bond’s par value
might not
Bond higher than par value- premium, if not, discount
When the market price is above the par value
Premium -
When the market price is below the par value
Discount -
Market in which newly issued securities are traded
Primary Securities Market
New securities are offered to any investors who are willing and able to purchase them
Anyone who has resources can buy stock
Public offering:
Negotiated between the issuing corporation and a small group of accredited investors
investment bank identifies accredited investors, only to x ppl
Private placement:
Previously issued securities are traded
Any stock sold b4 1st one does not make firm money
Secondary Securities Market
Organized venue for trading stocks and securities that meet listing requirements
Stock (securities) exchange:
Securities that are listed on exchanges are traded
Over-the-counter market (OTC):
Automated, computerized securities trading system that automatically matches buyers and sellers
computerized system, tinder for stocks
Electronic communications networks (ECN):
Members of the general public cannot directly trade stocks and other securities
Enlist the services of a brokerage firm to carry out their trades
Personal Investing
Person who makes connection to sell stocks
brokers
Provide a wide range of services in addition to carrying out trades
Full-service brokers -
Provide basic services needed to buy and sell securities but offer fewer additional services
no personal transaction
Discount brokers
Market & Limit Orders
Types of Orders When Buying and Selling Securities
Tell brokers to buy or sell a specific security at the best currently available price
Market orders
Tell brokers to buy a specific stock only if its price is below a certain level, or to sell a specific stock only if its price is above a certain level
Limit orders
Investing for income Market timing Investing for growth Value Investing Buying & Holding Stock
Strategies for Investing in Securities
Buying bonds and stocks to generate a steady income
Investing for income -
Investing by analyzing when prices of specific stocks are likely to rise and fall
guess when the stock is gonna be as low as possible, and sell when as high as possible
Market timing
Investing in companies that have the potential to grow much faster than average for a sustained time
Investing for growth
Investing in stocks that are undervalued in the market
believe that you have knowledge others don’t
Value investing
Purchasing a diversified set of securities and holding them for a long period of time
Buying and holding stocks
Stock index statistics that track how the prices of specific sets of stocks have changed
Stock Indices
Tracks stock prices of 30 large, well-known U.S. corporations
Looks at 30 big strong performing firms
Dow Jones Industrial Average (DJIA)
Based on prices of 500 major U.S. corporations in a variety of industries and market sectors
500 major corps
Standard & Poor’s 500
Organizational function and a set of processes
Create, communicate, and deliver value to customers
Manage customer relationships in ways that benefit the organization and its stakeholders
Create long term value for organization
Marketing:
Ability of goods and services to satisfy wants
Utility:
Form
Time
Place
Ownership
Utility types
Satisfies wants by converting inputs into a finished form
the form the product is in, good use of product, makes u feel good
liquid hand soap, audio book (CD, Mp3)
Form utility:
Satisfies wants by providing goods and services at a convenient time for customers
Amazon Prime, audio books, Video on Demand, 24 hour Hy-Vee
Time utility
Satisfies wants by providing goods and services at a convenient place for customers
Redbox, audio books (accessible via phone in car), car DVD players for kids on long drive
Place Utility
Satisfies wants by smoothly transferring ownership of goods and services from seller to buyer
iTunes, Audible.com, vehicle financing, brokers
Ownership Utility
People
Place
Event
Idea
Types of Marketing
Used by people in the field of sports, politics, and art
Sports stars, YouTubers,
People marketing
Used to draw people to a particular place
Place marketing
Used for athletic, cultural, or charitable events
about 1 event
Event marketing
Used to change how people think or act
stay safe, philosophies
Used to change how people think or act
Changed as the ratio of products to consumers shifted.
Relationship- long term customer value
Production- making enough
Evolution of Marketing
Ongoing process of acquiring, maintaining, and growing profitable customer relationships by delivering unmatched value
Customer Relationship Management (CRM)
Felt by customers when they perceive that a good or service delivers value above and beyond their expectations
Customer satisfaction
Customers buy a product from the same supplier again and again
Customer loyalty
Formal document that defines marketing objectives and the specific strategies for achieving those objectives
Planning involves deciding where to target those objectives and evolving strategies through market segmentation
Marketing Plan
Dividing potential customers into groups of similar people, or segments
Market segmentation
Group of people who are most likely to buy a particular product
Target Market
Target Market Characteristics
Size
Profitability
Accessibility
Limited competition
Consumer Market Segmentation
Demographic
Geographic
Psychographic
Behavioral
Dividing the market based on characteristics about people such as age, income, ethnicity, and gender
Demographic
Dividing the market based on where consumers live
Geographic
Dividing the market based on consumer attitudes, interests, values, and lifestyles
Psychographic
Dividing the market based on how people behave toward various products
Behavioral
Direct their efforts toward people who are buying products for personal consumption
People
Consumer marketers (B2C)
Direct their efforts toward people who are buying products to use either directly or indirectly to produce other products
Business marketers (B2B)
Categories of Business Segmentation
Geographic
Customer-Based
Product use based
Marketing Mix
Know this!
Blend of marketing strategies for: Product Price Distribution Promotion
Firm evaluates its marketing mix when it enters foreign markets
Global marketing mix -
Elements That Influence the Consumer Decision-Making Process
Cultural
Social
Personal
Psychological
Elements That Affect the External Marketing Environment
Competitive Economic Social/ Cultural Technological Political/ Legal
Begins with analysis of the market share
Competitive -
Involves identifying and responding to changes as soon as possible
Economic
Includes lifestyle, customs, language, attitudes, interests, and population shifts
Social or cultural
Affects marketers in ways that are less directly visible
Technological
Includes laws, regulations, and political climate
Political or legal
People’s actions when they are buying, using, and discarding goods and services for their personal consumption
Consumer Behavior
Consumer discomfort with a purchase decision, typically for a higher-priced item
Cognitive dissonance
Process of gathering, interpreting, and applying information
To uncover opportunities and challenges, and to make better decisions
Marketing Research
ex: your own surveys, focus groups, customer comments, mall interviews
Existing data that marketers gather or purchase for a research project
Secondary data
ex: Census, Wall street journal, time magazine, product sales history
New data that marketers compile for a specific research project
Primary data
Primary Research types
Observation & Survey
Does not require the researcher to interact with the research subject
Observation
Requires that the researcher interact with the research subject
Survey
Development and promotion of products with ecological benefits
Green marketing
Creation of products tailored for individual consumers on a mass basis
Mass customization
Anything that an organization offers to satisfy consumer needs and wants
Something they want
Product
Product by any other name
Service
Qualities of a Service
Intangibility
- Can't touch
Inseparability
- Cab't be separated from practitioner
Variability
-Difference btwn 2 ppl with skills
Perishability
- Can't keep in a stockpileProducts that do not include any service
Pure goods
Products that do not include any goods
Pure services
Layers of a Product
Core Benefit
Actual Product
Augmented Product
Consumers buy a core benefit that satisfies their needs
Why they’re buying it
Core benefit
Physical good or the delivered service that provides the core benefit
What it is
Actual product
Additional goods and services provided with the actual product that sharpen their competitive edge
Augmented Product
Purchased for personal use or consumption
Consumer Products
Inexpensive goods and services that consumers buy frequently with limited consideration and analysis
don’t think a lot, buy frequently, not a lot of thought
Convenience products
More expensive products that consumers buy less frequently
Shopping products
Much more expensive products that consumers seldom purchase
Specialty products
Goods and services that hold little interest or even negative interest for consumers
Unsought products
Purchased to use either directly or indirectly in the production of other products
formal process/ checklist u go through when shopping
Used to make product
Or inderrict
Components are not expected to be sold but also not broken down enough to be raw materials (kinda put together)
Business Products
ex:Installations Accessory equipment Maintenance, repair, and operating products Raw materials Component parts and processed materials Business services
Attributes that make a good or service different from other products that compete to meet the same or similar customer needs
Product Differentiation
Could be at a high quality level but need to be willing to pay for that
Fast food- best food at X amount of price, consistent
Measures how well a product performs its core functions
Quality level
Reliability of a product in delivering the promised level of quality
Product consistency
Specific characteristics of a product
Product features
Advantages that a customer gains from a specific product feature
Customer benefits
Group of products that are closely related to each other
Similar, makeup line, but may substitute one product for another. Need one that fills all the gaps
Product line
Risk of adding new product lines
Cannibalization
Total number of product lines and individual items sold by a single firm
Everything that you sell
Product mix
Overall value of a brand to an organization
Brand equity
Purchasing the right to use another company’s brand name or symbol
allow you to use my brand name and symbil in exchange for percentage of rev
(selling someone’s coffee brand at their store)
Licensing:
Established brands from different companies joining forces to market the same product
Target designers work with target as target exclusive
Cobranding
: Brands that the producer owns and markets
National brands
Brands that the retailer both produces and distributes
Known as private-label brands
Private label brands, convience items off brand, hyvee brand
Store brands
Similar products offered under the same brand name
similar products, new kellogs cereal
Line extensions
New product, in a new category, introduced under an existing brand name
new category in brand, Heinz mustard, used to only be Heinz ketchup. Define category
Brand extensions
Discontinuos
Dynamically Continuos
Continous
Types of Innovation
Brand-new ideas that radically change how people live
brand new, never been done before, changes everything
Discontinuous innovation
Characterized by marked changes to existing products
significant changes to existing products
Dynamically continuous innovation
Features a slight modification of an existing product slight modifications (1/3 less sugar)
Continuous innovation
New Product Development Process
Not as important
Idea Generation Idea Screening Analyisis Development Testing Commecialization
Characteristics That Determine Product Diffusion Rate
Observability Traibility Complexity Compatability Relative advantage
Visibility of a product to other potential consumers
More I see product being consumed, I’m more interested in consuming the product
aggressive sampling, using social influencers
Observability -
Ease in which potential consumers sample a new product
Trialability -
Ease with which potential consumers easily understand a product
Complexity -
Consistency of a product with the existing way of doing things
Can we use it with stuff we already have
Compatibility -
Benefits of the new product compared to the existing product
Relative advantage
4 Product Life cycles for product
know
Introduction
Growht
Maturity
Decline
Influences consumer purchase decisions through information, persuasion, and reminders
Promotion
Coordination of marketing messages through every promotional vehicle to communicate a unified impression about a product
Integrated marketing communication
How the marketer would like the target market to envision a product relative to competition
What’s special
Positioning statement
Meaningful, believable, and distinctive concept used to cut through the competition
Big idea
Specific marketing communication vehicles that include tools such as: Advertising (humour cited as memorable) Sales promotion Direct marketing Personal selling Emerging tools
Know this
Promotional Channels
Internet Advertising Social Media Native Advertising Product Placement Advergaming Buzz Marketing Sponsorship
not improtant
Emerging Promotional Tools
Advertising Sales Promotion Consumer Promotion Trade Promotion Public relations Personal Selling
Traditional Promotional Tools
Paid, nonpersonal communication designed to influence a target audience with regard to a product, service, organization, or idea
Advertising
Stimulates sales activity through specific short-term programs aimed at either consumers or distributors
Sales promotion:
Designed to generate immediate sales
Through premiums, promotional products, samples, coupons, rebates, and displays
Consumer promotion
Stimulates wholesalers and retailers to push specific products aggressively
Trade promotion
Creates positive relationships with all of a firm’s different publics
Public relations
Unpaid stories in the media that influence perceptions about a company or its product
Publicity:
Person-to-person presentation of products to potential buyers
Personal selling
Prostpect & Qualify Prepare Present Handle Objections Close Sale Follow Up
Not important
Steps in the Sale Process
Product characteristics Product life cycle Target audience Push and pull strategies Competitive environment Budget
Factors Determining the Right Promotional Mix
Plan for delivering the right product to the right person at the right place at the right time
Distribution Strategy
Network of organizations and processes that links producers to consumers
Channel of distribution
: Physical movement of products along the distribution pathway
Physical distribution
Distribution process that links a producer and a customer with no intermediaries
Direct channel
Distribution organizations that facilitate the movement of products from a producer to a consumer
Channel intermediaries
Distributors that buy products from producers and sell them to other businesses
Wholesalers
Independent distributors who buy products from different businesses and sell them to different customers
Independent wholesaling businesses
Take legal possession or title of the goods they distribute
Merchant wholesalers
Do not take title of the goods they distribute
Agents/brokers
Full-service merchant wholesalers Limited-service merchant wholesalers Categories Drop shippers Cash and carry wholesalers Truck jobbers
Types
Merchant Wholesalers
Distributors who sell products directly to users in small quantities
Retailers
Providing multiple distribution channels for consumers to buy a product
Multichannel retailing:
Intensive distribution
Selective distribution
Exclusive distribution
Strategic options of store retailers
Include: Online Direct response retailing Vending Direct selling
Nonstore Retailers
Involves hiring independent contractors to sell products to their personal network
Multilevel marketing (MLM):
All organizations, processes, and activities involved in the flow of goods from raw materials to the final consumer
Supply chain
Planning and coordinating the movement of products along the supply chain
Supply chain management (SCM)
Subset of SCM that focuses on the tactics involved in moving products along the supply chain
Logistics:
Raw Materials Logistics warehouse/ storage Production Warehouse/storage Logisitics Distributors
N?A
Elements of the Supply Chain
Firms express long-term profitability goals in terms of return on investment (ROI) or return on sales (ROS) to:
Build profitability
Boost volume
: Product pricing strategy that aims to capture the market through rock-bottom prices
Penetration pricing
Long-term discount pricing that is designed to achieve profitability through high sales volume
Everyday-low pricing (EDLP)
Designed to drive traffic to retail stores by special sales on a limited number of products, and higher everyday prices on others
High/low pricing:
Pricing a handful of items temporarily below cost to drive traffic
Loss-leader pricing
Aims to maximize profitability by offering new products at a premium price
Skimming pricing
Process of determining the number of units a firm must sell to cover all costs
Alternatives to cover costs
Raise prices
Decrease variable costs
Decrease fixed costs
Breakeven Analysis
Gap between the cost and the price of an item on a per-product basis
Profit margin
Method of establishing a fixed margin starts with determining the actual cost of each product
Cost-based pricing -
- Begins by determining what price consumers would be willing to pay
Demand-based pricing
Consumers use price as an indicator of quality unless they have additional information to guide their decision
Price-quality relationships
Practice of ending prices in numbers below even dollars and cents in order to create a perception of greater value
Odd pricing
Achieving the goals of an organization using organizational resources through: Planning Organizing Leading Controlling
Management
Managers who set the overall direction of the firm, articulating a vision, establishing priorities, and allocating time, money, and resources
Communicate Goals
Top management
Managers who supervise lower-level managers and report to higher-level managers
Help get pieces in place
Middle Management
Managers who directly supervise nonmanagement employees
First-line (supervisory) management
Technical Skills (important early) Human Skills (Important Late) Conceptual Skills (especially important late)
Management Skills
Suggests that human needs fall into a hierarchy, and as each need is met, people become motivated to meet the next need in the pyramid
Only motivated when previous unmet needs are met
Physiological and safety are different
Safety- protects physical needs
Maslow’s hierarchy of needs theory
Suggests that management attitude toward workers fall into two opposing categories based on management assumptions about worker capabilities and values
Employees are slackers vs work is meaningful
Theory X and Theory Y
Concerns the relationship among individual effort, performance, and reward
Expectancy theory
include in goal-setting avoid winner-takes-all rewards explain transferable skills when assigning new task(s)
If the employee doesn’t believe goals are achievable, they won’t try
Or if they aren’t rewarded
Expectancy theory Implications
Suggests that perceptions of fairness directly affect worker motivation
Equal rewards
Workers seek to balance equation by:
Increasing output (asking for raise)
Decreasing input (working less)
Changing comparison target (rationalize a reason why they are treated differently)
Leave to find a more fair environment (employee turnover)
Equity theory
Seek to make their employees productive and engaged rather than happy
Emphasize the health and well-being of their employees
Provide generous sabbaticals to their long-serving employees
Companies:
Establishes a vision for the company by:
Defining long-term objectives and priorities
Determining broad action steps
Allocating resources
Strategic planning:
Applies strategic plans to specific functional areas
Tactical planning
Applies tactical plans to daily, weekly, and monthly operations
Operational planning:
Planning for unexpected events
Involves a range of scenarios and assumptions that differ from the assumptions behind the core plans
Contingency planning
If its probable and harmful
Contingency Planning Paradigm FOCUS AREA
Definition of an organization’s purpose, values, and core goals
Mission
Helps management evaluate an organization in terms of internal strengths and weaknesses, and external opportunities and threats
SW (Internal)
OT (External)
SWOT analysis
Benchmarks that managers use to measure performance in key areas
Strategic goals
Action plans that help an organization achieve its goals by forging the best fit between the firm and the environment
Strategies
Defining the Mission Evaluating Competitive Position Setting Goals Creating Strategies Implementing Strategies Evaluating results & incorporating lessons learned
Strategic Planning Process
Creating a logical structure for people, their jobs, and their patterns of interaction
Organizing
Extent to which decision-making power is held by a small number of people at the top of the organization
where the decision making is done
Degree of centralization
Number of people a manager supervises
Span of control
Division of workers into logical groups
how u divide workers
Departmentalization:
Clear, simple chain of command from top to bottom
Line organization
Line managers form the primary chain of authority, and staff departments work alongside line departments
Line-and-staff organization
Flexible structure that brings together specialists from different areas of the company to work on individual projects on a temporary basis
Matrix organization
Hoard decision-making power for themselves and issue orders without consulting followers
DO X
Autocratic leaders
Share power with followers, and solicit and incorporate input from followers before making final decisions
Which is better, x or y?
Democratic leaders
Set objectives for followers but give them freedom to choose the way to accomplish those goals
let your employees figure out how to get there,
Do x or y as you see fit
Free-rein leaders (laissez faire)
Monitoring performance of the firm or individuals within the firm and making improvements when necessary
Controlling
Establishing clear performance standards
Measuring actual performance against standards
Taking corrective action if necessary
Steps in the control process
are there more skills you’d like to learn
Job enrichments
Focuses on maximizing the effectiveness of a workforce to boost organizational effectiveness by:
Recruiting world-class talent
Promoting career development
Determining workforce strategies
Make the org more effective by delivering workforce that meets needs of org
Recruit talent
Human Resource (HR) Management
Managing layoffs and outsourcing
Maintaining the link between pay and performance
Losing key talent and experience to other companies or through retirements
Managing young employees who have a sense of entitlement
Discrimination faced by women resulting in a brain drain
Offering work–life balance
Avoiding lawsuits by knowing the law and encouraging legal practices
HR Challenges
Examination of specific tasks that are assigned to each position, independent of who might be holding the job at any specific time
Job analysis
Explanation of the responsibilities for a specific position
Job description
Specific qualifications necessary to hold a particular position
Job specifications
Seeking employees who are currently within the firm to fill open positions
Internal recruitment
Seeking new employees from outside the firm
External recruitment
Tool to reject unqualified candidates, rather than to actually choose qualified candidates
Application
Developing a list of questions beforehand and asking the same questions in the same order to each candidate
Testing, references, and background checks
Designing appropriate job offers
Structured interviews
Employees who do not accept regular, full-time jobs
Contingent workers
Introducing employees to company culture and providing administrative information
Orientation
Employees beginning their jobs and learning as they go
On-the-job training
Beginner serves as an assistant to a fully trained worker before gaining full credentials to work in the field
Apprenticeship
Classroom training happens away from the job during work hours
Off-the-job training
Training delivered via the Web plays a crucial role in off-the-job training
Computer-based training
Helps current and potential executives develop the skills required to move into leadership positions
Management development
Formal feedback process that requires managers to give their subordinates feedback on a one-to-one basis
Performance appraisal
Create evaluation tools that tie directly into the company’s objectives
Coordinate the actual appraisal process
Ensure that managers are trained in providing relevant and objective feedback
HR’s role in performance appraisals
Combination of pay and benefits that employees receive in exchange for their work
Compensation
: Employees receive in exchange for the number of hours or days that they work
Wages
Employees receive over a fixed period
Salaries
Health insurance, vacation, and childcare
Noncash compensation
Gives employees a set dollar amount that they are required to spend on company benefits
Cafeteria-style
Scheduling option that allows workers to choose when they start and finish their workdays, as long as they complete the required number of hours
Flextime
Allows employees to work a fulltime number of hours in less than the standard workweek
Compressed workweek
Working remotely and connecting the office via phone lines, fax machines, or broadband networks
Telecommuting
- Allows two or more employees to share a single full-time job
Job sharing
Employees may be: Promoted or lured to another firm Fired Transferred or laid off Facing personal reasons such as family needs, retirement, or a change in career aspirations
Reasons to leave a job
Prohibits discrimination in privileges of employment based on race, color, religion, sex, or national origin
Civil Rights Act of 1964, Title VII
Federal agency designed to regulate and enforce the provisions of Title VII
Equal Employment Opportunity Commission (EEOC)
Policies meant to increase employment and educational opportunities for minority groups
Groups defined by race, ethnicity, or gender
Seeks to make up for the systematic discrimination of the past by creating more opportunities in the present
Affirmative Action
Workplace discrimination against a person based on his or her gender
Range from requests for sexual favors to the presence of a hostile work environment
Sexual Harassment
Managing all the activities involved in creating value by producing goods and services and distributing them to customers
Impacts a firm’s revenues and its costs, and thus its overall profitability
Operations Management
Shift in focus from:
Efficiency to effectiveness
Goods to services
Mass production to mass customization
Local to global competition
Simple supply chains to complex value chains
Exploiting the environment to protecting the environment
Characteristics of a Changing Environment
Producing output or achieving a goal at the lowest cost
Efficiency:
Using resources to create value by providing customers with better goods and services
Effectiveness
Production of customized goods and services to precisely meet the needs of specific customers
Mass customization
Set of related activities that transforms inputs into outputs
Process:
Involves:
Determining efficient processes
Deciding the best sequence in which to arrange processes
Designing the appropriate layout of production and distribution facilities
Process selection and facility layout
Considering the volume of production and the degree of standardization of the product
Deciding the location of the facility
Inventory control
Project scheduling
Designing and managing value chains
Responsibilities of Operations Managers
assembly based on product
Product
Moving item along and everyone adding the value to the widget, assembly/ different types of widget manufacturing techniques are grouped together
Process
Everyone can do everything in their cell
Cellular-
teams work on it until it is finished
Fixed position-
Adequacy of utilities
Land and labor market conditions
Transportation and quality-of-life factors
Legal and political environment
Deciding the location of the facility
Stocks of goods held by organizations
Inventories:
): Illustrates the relationships among all the activities and identifies the sequence of activities likely to take the longest to complete
Critical path method (CPM):
Activities that must be completed before another activity can begin
Immediate predecessors
: Network of relationships that channels flow of inputs, information, and financial resources through all the processes
Directly or indirectly involved in producing goods and services and distributing them to customers
Value chain
Performance of processes internally that were previously performed by other organizations in a supply chain
Vertical integration
Arranging for other organizations to perform value chain functions that were previously performed internally
Outsourcing:
: Moving production or support processes to foreign countries
Offshoring:
Software-based approach to integrate an organization’s information flows
Enterprise resource planning (ERP):
Environment in which a customer and service provider interact
Servicescape
Servicescape design centers on three factors
Ambience
Functionality
Signs, symbols, and artifacts
Selection of capacity needs to be considered due to fluctuations in demand
Replacing human operation and control of machinery and equipment with some form of programmed control
Automation:
Reprogrammable machine that is capable of manipulating materials, tools, parts, and specialized devices to perform tasks
Robot:
Drawing and drafting software that enables users to create and edit blueprints
Computer-aided design (CAD)
Enables users to test, analyze, and optimize their designs
Computer-aided engineering (CAE):
Takes the electronic design for a product and creates programmed instructions that robots must follow to produce the product
Computer-aided manufacturing (CAM):
Combination of software used to design output and send instructions to automated equipment
To perform the steps needed to produce output
Computer-aided design and computer-aided manufacturing (CAD/CAM)
Combination of CAD/CAM software with flexible manufacturing systems to automate almost all steps involved in designing, testing, and producing a product
Computer-integrated manufacturing (CIM)
Expects everyone in an organization to take responsibility for improving quality
Emphasizes the need for a long-term commitment to continuous improvement
Total Quality Management (TQM)
Methods incorporated into a production process designed to eliminate or reduce errors
Poka-yokes
Characterized by:
Quality goals
Extensive training of employees
Long-term commitment to working on quality-related issues
Six Sigma
Encourages American firms to focus on quality improvement
Baldrige National Quality Program
Family of generic standards for quality management systems established by the International Organization for Standardization
ISO 9000 Certification
Emphasizes the elimination of waste in all aspects of production processes
Lean production:
Production system that emphasizes the production of goods to meet actual current demand
Service firm has less control over how processes are conducted while employing lean principles
Just-in-time (JIT) production:
Firms try to become greener by finding environmentally friendly ways to carry out processes required to produce and distribute goods and services
Goal is to achieve sustainability
Green Practices
Family of generic standards for environmental management established by the International Organization for Standardization
ISO 14000:
One of the key roles of an investment bank is to arrange for
the actual sale of the securities
When it comes to creating customer satisfication
percieved value is just as important as actual value
The marketing concept holds that
delivering unmatched value to the customers is the only effective way to achieve long term profitability
In the context of the marketing mix, the distribution strategy
does not includ eall the ways that marketers communicate about their products
The product life cycle can be dramatically different across individueal product categories and predicting the exact shape and length of the life cycle is
impossible
Product diffusion happens at different speeds depending on
individual consumer and the product itself
Technical skills
expertise in a specific functional area or department
Sales above the breakeven point
will generate a profit
Firms
can determine upfront how much money it neds to make for each item it sells
Maslow
healthcare plans and life insurance don’t serve to satisfy the esteem needs of employees
constant communication
matrix organizations
