Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Introduction to Business Management > Lecture 2 > Flashcards

Lecture 2 Flashcards

1
Q

What is the organizational external environment

A

Factors beyond an organization’s boundaries that cannot be controlled (ie. competition)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is organizational boundaries

A

That which separates the organization from its environment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What are 3 conditions of the economic system in which an organization operates

A

Economic growth, Economic stability, and Full-employment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What are 6 factors that contribute to economic growth

A
  1. the business cycle
  2. aggregate output and standard of living
  3. GDP and DNP
  4. Productivity
  5. Balance of Trade
  6. National Dept
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is the business cycle

A

The typical pattern of short-term ups and downs in an economy (etc. peak, recession, trough, and recovery)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is aggregate output

A

Measure of economic growth: total quantity of goods and services produced by an economic system during a given period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is standard of living

A

total quantity and quality of goods and services that a country’s citizens can purchase with their currency

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is Productivity

A

measure of growth that compares the output of an economic system with the resources that are needed to produce the output

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Standard of living improves through _______ in ________

A

increases in productivity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is GNP

A

Gross National Product
Value of all goods and services produced by a national economy within a given period regardless of production location

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is GDP

A

Gross Domestic Product
Value of all goods and services produced by a national economy within a given period with domestic factors of production

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is Balance of Trade

A

Value of all exported products - value of all imported products

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is national dept

A

amount of money that a government owes its creditors. Increases/decreases based on the budget deficit/surplus

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is economic stability

A

the condition when the amount of money available and the quantity of goods and services produced are growing at about the same rate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What are the 3 threats to economic stability

A
  1. Inflation
  2. Deflation
  3. Unemployment
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is inflation

A

occurs when there are widespread price increases in an economic system

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What is Consumer Price Index (CPI)

A

a tool used to measure inflation

18
Q

What is deflation

A

a period of generally falling prices

19
Q

Define the economic inflation of Canada

A

In the past 20 years, the rate of price increases has been low and quite stable

In 2021, the inflation rate rose to 4.7%

20
Q

What is unemployment

A

level of joblessness amond people actively seeking work in an economic system

21
Q

What are the 4 types of unemployment?

A
  1. Frictional
  2. Seasonal
  3. Cyclical
  4. Structural
22
Q

What are the two stabilization policies

A

Fiscal Policies: taxes and spending
Monetary Policies: money supply

23
Q

What is the political-legal environment

A

reflects the relationship between business and government (ei. regulations)

24
Q

What is Michael Porter’s five forces model for

A

used to analyze the competitive situation in an industry

25
Q

What are the five competitive forces that shape strategy according to Michael Porter

A
  1. Threats of new entrance
    2.Bargaining power of consumers
  2. Threat of Substitutes
  3. Bargaining Power of Suppliers
  4. Industry Rivalry
26
Q

What is a competency

A

the skills and resources with which an organization competes best and creates most value for owners

27
Q

What is outsourcing

A

Paying suppliers and distributors to preform certain business processes

28
Q

What is an Acquisition or Merger

A

Horizontal, vertical, or conglomerate mergers. Can be a friendly or a hostile takeover

29
Q

What is divestitures or Spin-off

A

Selling part of existing business or setting it up as a new corporation

30
Q

What is a hostile takeover

A

the aquiring company buys enough of the other companys stock to take control

31
Q

what is poison pill

A

a defence tactic that manangement can adopt to make a firm less attractive

32
Q

What is employee-owned corporations

A

Employee stock ownership programs (ESOP)

33
Q

What is strategic alliances

A

Two or more companies temporarily join forces. Often called a joint venture

34
Q

What is a subsidiary and parent corporations

A

Subsidiary corporation owned by another (parent) corporation

35
Q

What are the two types of inflation

A
  1. Demand-pull inflation
  2. Cost-push inflation
36
Q

What is cost-push inflation

A

when business expenses increase and these extra costs are passed on to their customers. ex// price of raw materials go up over time

37
Q

What is demand-pull inflation?

A

when the demand of goods and services outpaces the supply. Happens when the economy is strong and close to full capacity

38
Q

What is Milton Friedmans theory of monetary inflation

A

this theory, often summarized by the phrase “inflation is always and everywhere a monetary phenomenon,” posits that inflation occurs when there is a sustained increase in the money supply that outpaces economic growth.

Ex// when things get more expensive because there’s too much money and not enough stuff to buy.

39
Q

What is Porters Diamond Theory

A

4 things that will determine if a country has a favourable advantage or not. Ex// how to determine whether sweden has an advantage for their furniture or not

40
Q

What are the 4 things that make up Porters diamond theory

A
  1. Favorable Factor Conditions: was their advantage by luck (ex/tourism in greece) or made (ex//good engineers in germany)
  2. Demand Conditions: there must be damand in that area
  3. Related and Supporting Industries: you cant just go to greece for tourism and not have somewhere to eat. You must have strong supporting industries
  4. Firm Strategy, Structure and Rivalry: there must be rivalry. competition makes you better

Introduction to Business Management (6 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions