Module 3 Flashcards
Marketing
customer and market research—Whenever a new product idea is proposed in a company, the marketing department studies the market to evaluate the chances of the idea’s success. It further helps set the pricing and positioning of the product.
target market identification—The marketing department identifies the potential target audience based on the unique selling proposition (the characteristics that set the product apart from the existing products in the market).
branding—The marketing department defines and positions the product and the company in the market to appeal to the target audience.
advertising—The marketing team leads the initiatives to reach out to prospective customers. These initiatives include designing material, slogans, and visuals. The team also implements online advertising efforts such as using search engine optimization and managing social media feed to popularize the brand and the product itself. Those in advertising serve as a liaison to media (The Hartford Editing Team, n.d.).
Research and Development (R&D)
product improvisation—Most products go through a life-cycle curve that eventually declines. Thus, if the company does not invest in innovation, it will quickly lose market share and profitability to new entrants or substitute products.
new product development (NPD)—By the process of NPD, companies develop and launch new products in the marketplace to meet the changing needs and preferences of the consumers, increasing competition and advances in technology.
Accounting and Finance
accounts payable—The accounts department is responsible for finding and negotiating deals, making timely payments to vendors, availing discounts and incentives, prioritizing payments, avoiding penalties and finance charges, and keeping the bills paid.
accounts receivable and revenue tracking—The department processes incoming payments and accounts receivables, creates invoices, tracks outstanding invoices, and pursues collection procedures for delinquent accounts.
payroll and taxes—The accounts team ensures all employees are paid on time and ensures that state and federal taxes are accurately calculated and filed on time.
financial reporting—The department prepares financial reports such as profit and loss statements, balance sheets, and budget reports. It is also responsible for allocating resources and reporting to investors and other stakeholders.
financial controls—Accounts personnel ensure compliance while avoiding errors, theft, and fraud.1
Information Technology (IT)
oversight—The IT team oversees the installation of computer systems and network. In this governance role, IT is also responsible for the purchase and maintenance of software licenses and compliance.
infrastructure—The department provides the hardware and infrastructure required for operating systems and networking and automation and for building backup and contingency systems.
functionality—IT is responsible for the day-to-day functioning of systems. It also controls data processing, storage and security, and software installation and maintenance (Evans, n.d.).
Process management
The management initiative to design work processes so that they align with the organization’s strategic goals
Relationship management
Part of a strategy to engage existing customers in order to retain them and understand their evolving needs or demands. It is a business paradigm where a business views the association with its patrons as an ongoing relationship rather than a mere transaction.
Understanding the differences between process and relationship management are key in evaluating operative departmental functions as well as the people involved.
Individual contributor
Someone who uses their personal skills to contribute to a team
Manager
An individual who oversees a certain group of tasks or a certain subset of a company and often has a staff of people who report to them
First-Line Management
Foreman, Supervisors, Office Managers
Middle management
Plant managers, division managers, department managers
Top management
President, ceo, vice president, executive
Three skills for managers
Technical: For managers to understand everyday challenges, propose a solution, represent the team, and redesign procedures, they must have a firm grasp of the tools, procedures, and techniques imperative to their department.
Communication: These skills entail listening and understanding employees’ issues, motivational factors, and their team’s group dynamics. They also involve establishing cordial working relationships with people. A major part of a manager’s role is to convey meaning, negotiate and mediate, and handle conflicts. To accomplish these tasks, the manager must have the ability to develop inter- and intradepartmental relations.
Analysis: These skills involve the ability to comprehend, visualize, and analyze abstract knowledge and concepts; change direction; and improve organizational performance. Managers have to rely on the ability to see the organization as a whole and understand how various functions in an organization relate.3
Leadership
The activity of leading a group of people or an organization or the ability to do so
5 departments of organizations
marketing, human resource management (HR), accounting and finance, research and development (R&D) and information technology (IT)
