Brainscape's Knowledge GenomeTM

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


See full index

BU 111 Final Exam > Social > Flashcards

Social Flashcards

1
Q

What are the different elements of the social factor?

A
  1. Customs
  2. Values
  3. Attitudes
  4. Demographic characteristics
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Why is it important to think about the social factors of a business?

A

When business got very competitive, businesses and the individuals that worked within them became so competitive that they forgot about “being nice” to their customers, to other firms, and to their shareholders

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

What is the significance of the social factor? Give some examples

A

It affects customer preferences. Eg. people are willing to pay more for products from ethically sourced suppliers.
It affects worker attitudes and behaviour: it varies between companies and between countries. It affects how businesses attract employees, what kind of incentives they give, and how they motivate their employees
It affects standards of business conduct, and corporate social responsibility

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

Explain the significance of the customs element of the social factor and give an example

A

It affects what customers buy, when they buy it, when holidays are, and what kind of time off employees expect. Eg. Celebrating Thanksgiving in October in Canada vs. November in the States

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

Explain the significance of the values element of the social factor, and give an example

A

It affects what customers and employees prioritize, what they care about, what they appreciate/condemn. In Canada, we value family, prestige, accomplishment, healthy living, and leisure

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

Explain the significance of the attitudes element of the social factor, and give an example

A

It affects how customers and employees think about things, what they expect from employers, and their attitudes about work. Eg. In North America, people are very individualistic minded, while in Japan they are very team-oriented

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

Explain the significance of the demographic characteristics of the social factor

A

It affects the size of the population, how many of each age there are, what people do on their own time, and how people spend their time

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

What is ethics?

A

“Knowing the difference between what you have a right to do and what you should do” - Potter Stewart (Eg. you can speed but you shouldn’t)

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

Explain individual ethics

A

Your individual standards about doing the right thing

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

Explain business or managerial ethics

A

How you execute your business’s decisions and what the effects are

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

Do individual ethics and business/managerial ethics always have to line up?

A

No. However, if you are not comfortable with them not lining up, it could make you start to have inner conflicts. You have two options:

  1. Do what the manager believes because it’s what the organization wants
  2. Leave
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Explain corporate social responsibility and its effects

A

The ethical behaviour and ethical standard of the corporation: what the organization does to and for its stakeholders. The organization affects the stakeholders and the stakeholders affect the organization

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

How do the three forms of ethics affect each other?

A

They feed into each other: individual ethics affect managerial ethics, which affect corporate social responsibility

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

How do businesses balance conflicting stakeholder interests?

A

Businesses can either focus on profits (and therefore their investors), or they can actively consider other stakeholders

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

Who are stakeholders?

A

Anyone who is affected by or affects an organization: customers, suppliers, investors, employees

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Why do businesses consider their stakeholders in their business decisions?

A

They make it possible for businesses to operate: they provide something of value to the business and they expect something in return

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

What is the importance of stakeholders? When do businesses listen to them?

A

It depends on the situation and the issue. Businesses will listen to different stakeholders depending on the type of decision that they are making

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What is the challenged of stakeholders?

A

They may have conflicting or varying demands/expectation between the business and the stakeholder or between stakeholders

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What are the four levels of corporate social responsibility?

A
  1. Proactive
  2. Accommodative
  3. Defensive
  4. Obstructionist
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Describe the proactive level of corporate social responsibility and give an example of a company

A

Where businesses are constantly looking for opportunities to go further in helping out their community. Eg. Ben and Jerry’s looks for ways to source their materials from good companies, being fair to their workers, and looking for ways to help their community

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Describe the accommodative level of corporate responsibility and give an example of a company

A

When companies will do something good, but only if they’re asked. If charities come ask for money or if they are asked to send volunteers somewhere, they will, but only when asked. They do not actively look for ways to go further. Eg. Kellogg’s was asked by the government to reduce their energy use. They did, but they didn’t go out of their way to come up with the idea themselves

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Describe the defensive level of corporate responsibility and give an example of a company

A

When companies do the least that they can while still following the law. Eg. Cigarette companies put the legal label on all their products, but they don’t try to make cigarettes better for you or try to convince you not to smoke

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Describe the obstructionist level of corporate responsibility and give an example of a company

A

When companies do as little as possible, and even go behind the law when they deem it necessary. Eg. Pinto cars and Mustangs were designed to catch fire when they were rear-ended. They chose not to recall the cars even though they knew it could result it death, because it would cost more to redesign the car then to pay the lawsuits. Eg. BP oil spill: anything they were not legally obligated to do they didn’t do, and they also tried to sneak around the law and avoid having to pay for it

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Why do businesses need to focus on their corporate social responsibility? Give an example

A

The environment is unpredictable and challenging. By being compliant with regulations, businesses can:

  1. Avoid adverse actions (such as major lawsuits and protests)
  2. Increase their support from their stakeholders.
  3. Promote favourable legislation: complying with regulations may promote the government to help you create a distinct competitive advantage around your product. Eg. The government required that cars sold in Greece had to pass a certain pollution emission requirement. It can also help you to be ahead of the game when laws change to help the environment or improve worker conditions
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

How does corporate social responsibility connect to the critical success factors?

A
  1. Increases the trust of employees and customers
  2. Achieving financing performance: If your customers are happy with your performance and your CSR, they will buy more form you
  3. Distinct competitive advantage: If people know you as someone who has really great CSR, they will think of you as an eco-friendly or community-friendly company and you will stand apart (Eg. WestJet)
  4. Promoting operation efficiency: reducing waste, environment-friendly, achieves financial performance because you can lower your waste costs and be more efficient
  5. Innovation and creativity: you are always looking for new ways to advance
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

How does CSR influence managerial preferences? How is CSR shown/demonstrated to employees throughout a company?

A
  1. Hiring criteria
  2. Managerial role modeling
  3. Mission statement/code of conduct
  4. Ethics booklets and training
  5. Goals/evaluation criteria and rewards
  6. Employee protection mechanisms
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

How does CSR affect hiring criteria?

A

Businesses need to choose the right management by seeing what experience they have, and seeing what kinds of decisions they have made in the past. They need to understand what your ethics and passions are

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

How does CSR affect managerial role modelling?

A

When a new employee arrives on the job, the people around them need to demonstrate what the organization cares about and what they value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

How does CSR affect a business’s mission statement/code of conduct?

A

Businesses need to tell their employees what they expect of them and what they can expect from the business. Businesses need to include everything in the code of conduct that would upset the company if an employee were to do it

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

How does CSR affect business’s ethics booklets and training?

A

Businesses need to make sure that their employees will make decisions that line up with the goals of the company by giving something that they can take home and study

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

How does CSR affect a business’s goals/evaluation criteria and rewards?

A

Setting evaluation criteria allows a business’s employees to know exactly what their boss is looking for. When a business gives its employees incentives to be socially responsible and be active in the community, employees are more likely to do so (days off work to volunteer, casual Fridays where money goes to a social cause, etc.)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

How does CSR affect a business’s employee protection mechanisms?

A

The way a business’s management reacts to a situation sends a message about how serious they are about employees upholding their organization’s values

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

What are the different areas of social responsibility?

A
  1. Employees
  2. Investors
  3. Natural environment
  4. Customers
  5. Society
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

Why are businesses concerned about the natural environment and how much they waste?

A
  1. There has been a paradigm shift in management thinking
  2. Management is concerned about the quantification of impact
  3. There has been a change in societal attitudes
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Explain the impact of the shift in management thinking in terms of the environment

A

Managers have started to think about what it means to pollute and damage the environment. Management typically has a very short-term view, but they have started to realize that it’s not ok to damage the world today and not think about the world that they are leaving future generations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

Explain the impact of manager’s realization of the quantification of impact in terms of the environment

A

Managers have realized that there is a dollar cost to polluting the environment. Eg. People get sicker easier because of pollution in the water and in the air, and businesses have to pay more money in terms of extra effort and repairs that have to be made to work within and fix a polluted environment. They are thinking more about the triple bottom line (people, planet, profit)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Explain the impact of the change in societal attitudes in terms of the environment and give an example of a company that is working to adapt to those changes

A

People’s attitudes about the environment are changing. They no longer see businesses as places to buy things; they are also members of society and have expectation. People are realizing that it’s not ok to see certain species or animals disappearing, or to throw out things that can be recycled/repurposed. Eg. Dawn: they have seen the shift in societal attitudes, and so they have made a more efficient and eco-friendly methods or help the environment in different ways to contribute to that. Eg. Electric/hybrid automobiles, less packing around products to create less waste, and more eco-friendly commutes (ride sharing)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

What is greenwashing? Give an example

A

When companies appear to be green without actually putting in the work. Eg. General Electric put out a bunch of advertising with eco-friendly words that created a perception that they had made their products more green when they actually hadn’t done anything

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

What happened in 1987 to help cause the change in managerial thinking?

A

Bruntland tried to get management to stop think about the short-term: he said that what might be good for the company today might be quite damaging in the long run. Eg. Stopping research and developing could save costs, but will be detrimental in the long run

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

What happened in 1994 to help cause the change in managerial thinking?

A

J. Elkington proposed that businesses should measure profitability by a triple bottom line (people, planet, profit). This affects how businesses treat customers, how they treat employees, how they perform when it comes to their responsibility towards the planet, and their impact on society

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

How can businesses be a part of the solution to “fixing” the environment?

A

They can design eco-friendly products, they can consider how they are sourcing and running their operations, and they encourage and make it possible for customers to choose eco-friendly products

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

How can businesses increase their corporate greening (green solutions to everyday activities)?

A

They can think about how they run their day to day operations and what kind of products they build. Eg. Is it necessary for organizations to fly their employees out every time they need to have a meeting with foreign offices, or can you arrange a meeting over video chat technology?

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

What are the different areas that people are trying to solve in their responsibility to society?

A
  1. Poverty
  2. Poor health
  3. Poor education
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

How are poverty, poor health, and poor education connected?

A

People that aren’t well education aren’t able to get good jobs, and they make a low income, which leads to poverty. When people are poor, they tend to live in polluted areas, and can’t afford healthy foods or access to medication

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

How are poverty, poor health, and poor education measured?

A

Human development index (HDI).
Health: life expectancy
Education: mean and expected years of education that you are going to receive
Living standards: gross national income per person

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

Is economic growth a complete solution?

A

Economic growth assumes that if the economic grows, everyone will have more money. This is sometimes true but not always; you have to ask where there will be growth and in what ways

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

Why is it important to care about society and societal responsibility?

A
  1. It can diffuse the issue of social decay, political chaos, terrorism
  2. It affects human capabilities
  3. It can cause a societal attitude shift
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

Explain why diffusing the issues of social decay, political chaos, and terrorism are important by giving examples

A
  1. People who don’t feel like they’re being oppressed or neglected don’t feel the need to rise up in rebellion against the government/society
  2. Employees are not worried about their safety to get to work when they feel safe
  3. Suppliers can come from different parts of the world that are currently troubled if there is world peace
  4. Customers have access to more markets from countries that are at peace
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

Explain why maintaining human capabilities (i.e. improving education) are important

A
  1. You can build out your human capabilities because you have access to better employees
  2. The more diverse people are, and the more innovation and creativity you can draw from
  3. Employees will be less worried about taking care of “necessities” and will be more productive and effective in their work
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

Explain why paying attention to shifts in societal attitudes is important

A

There are things that businesses have a responsibility to think about and try to address, no matter where they are in the world, because people are realizing that they have a lot of opportunities and privileges. They are starting to look at how they can help people who don’t have as much

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

What can businesses do to help society and meet their societal responsibility? Give some examples of companies

A
  1. Engage in social entrepreneurships like SOS/Grameen bank
  2. Engage in business and community partnerships (businesses provide resources and support, community provides the structure) like the Grameen/Danone partnership
  3. Engage in innovated business models and leverage business skills to contribute to social development, like Tom’s
52
Q

What are the areas of responsibility that companies have to show to their customers?

A
  1. Pricing
  2. Advertising
  3. Rights
53
Q

Why is it important for businesses to be responsible towards their customers?

A
  1. Help avoid adverse actions
  2. They purchase goods and services thereby providing businesses with revenue
  3. Help avoid increased regulation
54
Q

Explain how being responsible towards customers can help businesses to avoid adverse actions, and give an example

A

Customers can very quickly let other customers know how unhappy they are with you, and the voices of consumers are much stronger than they used to be because of the internet. Customers can also make boycotts to not buy from the company anymore, and can cost you money through lawsuits. Eg. Abercrombie and Fitch’s homeless movement

55
Q

Explain how being responsible towards customers ensures that customers keep purchasing goods and services and providing the business with revenue

A

Customers provide businesses with the resources that they need to survive

56
Q

Explain how being responsible towards customers can help businesses to avoid increased regulation and give an example

A

Being responsible can prevent the need for businesses to play catch up when new regulations come out. Customers can lobby the government to change/enforce business regulations. Regulations create compliance costs (hiring someone and filing paperwork to make sure they are meeting all the requirements). Eg. Airline industries got careless about how they treated their customers; they crammed a lot of seats into airplanes, didn’t keep to flight departure times, lost their customer’s luggage, and didn’t compensate for overbooking. After customers lobbied the government, the government gave airlines an ultimatum and the airlines decided to fix it

57
Q

What are the eight things that businesses have to respect in respect to their customers?

A
  1. Safe products
  2. Information
  3. Voice concerns
  4. Choose
  5. Courtesy
  6. Education
  7. Fair pricing
  8. Ethics in advertising and brands
58
Q

Describe why it’s important to have safe products

A

Products have to be within normal boundaries (eg. toasters will not blow up when you try to toast bread, but it will if you throw it into water)
Companies will sometimes go above and beyond to ensure the safety of their product. Eg. Tylonel invented the tamper-proof cap and a sealed box to ensure customers of their safety

59
Q

Give an example of how companies can give their customers information about a product

A

Listing the ingredients of food products

60
Q

Describe why it’s important to allow customers to voice their concerns

A
  1. People want to be heard
  2. There has to be a reaction to their concerns, and respect shown to the people voicing those concerns
  3. It affects the impression that people will get of the company
61
Q

Describe why it’s important to allow customers the right to choose

A
  1. Businesses are not allowed to shut down competition unfairly so that customers have a choice and still have some buying power
  2. Cartels/collusions are also not allowed for the same reason
62
Q

Describe why it’s important to educate customers and give an example

A

Eg. TD. Banks benefit from customers being uneducated about finances, but they are trying to improve customer confidence

63
Q

Describe why it’s important to give customers fair pricing and give examples

A
  1. Businesses shouldn’t gouge prices by maintaining high prices in times of need. Eg. Uber dropped their prices during the hurricane to help people get to safety
  2. Businesses should not jack up prices just before it gets busy. Eg. gas prices go up right before a long weekend, and go down in the middle of the night
64
Q

Describe why it’s important to maintain business ethics in advertising and in brands

A

Businesses don’t want to be misleading or make promises the product can’t deliver on

65
Q

What are the areas of responsibility that companies have to show to their employees?

A
  1. Hiring
  2. Promotion
  3. Compensation
  4. Training
66
Q

Why is it important to be responsible to employees?

A

They provide businesses with talent, skills, and labour. Businesses need employees: they exist, succeed, and grow because their employees are willing to the time into the business. When you take care of your employees, they will want to work for you. It will also cost less, because you don’t need to go through the hiring process as often

67
Q

What does an unethical/irresponsible business look like?

A
  1. Biased in hiring practices - more men than women, young than old, etc.
  2. Glass ceiling in terms of promotions - certain groups are limited in how high they can go
  3. Compensation - the wage gap
  4. Training - not giving people the opportunity to do their jobs better
68
Q

What are the actions that businesses can take to be responsible towards their employees?

A
  1. Responsible hiring and promotion (open to anyone, not only relatives/men/etc.)
  2. Safe working conditions (employees can focus on their job and are more productive)
  3. Opportunities for advancement (creating positions for people to move into)
  4. Respectful treatment
  5. Protection of whistleblowers (value the critiques from employees about other employees; don’t tell people who said what)
69
Q

What are the areas of responsibility that companies have to show to their investors?

A
  1. Financial management

2. Reporting

70
Q

Describe how reporting is a form of social responsibility for investors

A

Making sure businesses are not being misleading or lying on their financial statements, so that investors know how the business is performing financially

71
Q

Describe how financial management is a form of social responsibility for investors

A

Managers have to manage their company in a way that is consistent with the decisions an owner would make to ensure long-term success and the survival of the company so that the investors are happy with the decisions are being made

72
Q

Describe the effects of investors allocating their decision making authority to managers

A

There is often a conflict of interest. Managers are interested in keeping their job safe, performing well on performance evaluations, and keeping the company alive to give themselves a better bonus. However, mistakes made by management are carried by the owners. Therefore, the costs of the managers shirking their work and not being productive is felt by the owners. Managers have to respect that and make decisions that their investors would be happy with or would even make themselves

73
Q

Why is it important for businesses to focus on showing responsibility to their investors?

A
  1. Investors provide businesses with capital
  2. New regulations due to repeated irresponsibility:
    a. More independence, new practices, new disclosure rules
    b. Different social attitudes
    c. Legal action against directors and managers
74
Q

Describe why it’s important that investors provide businesses with capital

A

When investors like a business, their stock prices go up, and that business will receive more money from their investors, allowing them to expand the business

75
Q

Describe the significance of new regulations due to repeated irresponsibility

A

Because of the stock market crash, the government stepped in to make sure that businesses were respecting their shareholders. Investment increases capital and grows businesses so they didn’t want to completely get rid of it, but they wanted to protect the savings and investments of investors

76
Q

Describe how the government has enforced new regulations through having more independence, new practices, and new disclosure rules

A

Publicly traded companies have to issue financial statements and reports that were audited by firms who were independent of the company there were auditing

77
Q

Describe how the government has enforced new regulations around new social attitudes

A

More and more people are buying stocks and bonds, so groups like the Canadian coalition for good governance were established to ensure that stakeholders are not manipulating the company’s decisions

78
Q

Describe how the government has enforced new regulations through legal action against directors and managers

A

Executives are being held legally responsible for their bad actions regarding the company

79
Q

What are the actions businesses can take in order to ensure that their are being responsible towards their investors?

A
  1. Focus on long-term return on investment instead of the short term
  2. Responsible management, reporting, transparency: make sure that your managers are making the right decisions, recording information accurately, and understand what is going on in the company and why certain decisions are made
  3. No insider trading: do not trade secret information (especially if public investors cannot get that information)
80
Q

What is the importance of a business’s stakeholders?

A

It varies by issue: not every stake holder will care about every decision a company makes. they need to understand which stakeholders to pay attention to and which ones will be affected by which decisions

81
Q

What determines the importance of stakeholders?

A
  1. Their ability and willingness to act: if they don’t have the resources/capabilities to act on a decision, they won’t make a difference
  2. Relative power/dependence or interdependence: the more important the stakeholder is to you, the more attention you need to pay to that stakeholder. The less important you are the a stakeholder, the more likely they are to threaten your company
82
Q

What can happen if a stakeholder is threatening?

A

They could withdraw resources or create a campaign against the business

83
Q

What can happen if a stakeholder is cooperative?

A

They will say good things about the business and will encourage other people to say good things about the business

84
Q

What are the steps for businesses to strategically manage their stakeholders?

A
  1. Identify key stakeholders
  2. Diagnose along two dimensions and categorize them
  3. Formulate strategies to enhance relationships
  4. Effectively implement these strategies
85
Q

What are the characteristics of a marginal stakeholder? Give some examples

A

They are unable and unwilling to threaten the business and unwilling and unable to cooperate with a business. They don’t hurt businesses, but they don’t help them either. Eg. the environment, trees, nature, etc.

86
Q

What are the characteristics of a supportive stakeholder? Give an example

A

They are keen to see the business succeed, they have the ability and willingness to do so. They are not likely to turn against you; they may have the ability but not the willingness. Eg. parents

87
Q

What are the characteristics of a non-supportive stakeholder?

A

They will never come to your aid, no matter what. They have nothing but bad things to say about you, and are vocal and active

88
Q

What are the characteristics of a mixed blessing stakeholder?

A

They can be good or bad. They are able and willing to act. They may act as supportive stakeholders and provide resources and give your business a good reputation, or they may act as non-supportive stakeholders and actively wage a campaign against you

89
Q

How should businesses manage marginal stakeholders?

A

Monitor them: satisfy their needs and demands, but there is no need to involve or collaborate with them

90
Q

How should businesses manage non-supportive stakeholders?

A
  1. Reduce dependence: If they have something that you need, they can withhold it. Find other ways of acquiring it to create independence
  2. Use media to promote/defend your actions: eg. some channels are pro-trump, others aren’t: promote your own message
  3. Encourage supportive stakeholders to voice their support: lots of people arguing your point = easier to prove you’re right
91
Q

How should businesses manage supportive stakeholders stakeholders?

A

Collaborate and involve them in decisions: they already like you and want to help, you just need to keep them supportive. Involve them in decisions by informing them and asking for their opinions

92
Q

How should businesses manage mixed blessing stakeholders?

A

Collaborate and involve them in decisions: they can be very dangerous, so you have to manage them more closely and consciously. Make sure they understand and have been involved in the decisions you made

93
Q

How can businesses involve customers and suppliers in their decisions?

A

Involve them in the product design

94
Q

How can businesses involve competitors in their decisions?

A

Joint research and development, joint market development

95
Q

How can businesses involve the government in their decisions?

A

Invite their involvement in setting safety/technical standards, and appoint them to BOD

96
Q

How can businesses involve the community in their decisions?

A

Involve them in Urban Renewal Projects

97
Q

How can businesses involve activist groups in their decisions?

A

Appoint them to BOD, seek their input, and consult them

98
Q

How can businesses involve unions in their decisions?

A

Invite their involvement in Joint Committees, appoint them to BOD, and share profits

99
Q

How do stakeholders defend each other? Give some examples

A

Marginal stakeholders do not have a voice, so some mixed blessing stakeholders will defend on their behalf. Eg. people argue against polluting/damaging the environment. Eg. people defend the salaries/working conditions of workers in under-developed countries. Eg. people defended the homeless / people of size from Abercrombie and Fitch by donating a bunch of clothes to thrift stores to destroy their “perfect” image

100
Q

What are demographics?

A

The study of human populations

101
Q

Whose work is demographics based upon?

A

David Foot

102
Q

Why do businesses study demographics?

A
  1. They are a powerful predictor of behaviour/trends
  2. Certainty and simplicity of age data
  3. Changes in population significantly impact business
103
Q

What is a cohort?

A

A demographic group (age, education level, income level, etc.). Groups are based on objective, observable characteristics

104
Q

What are the two things you want to think about in terms of demographics?

A
  1. The size of the cohort

2. The activity participation rate

105
Q

What two factors affect the size of cohorts?

A
  1. Fertility rate (average number of children/woman)

2. Birth rate (total number of birth / size of population)

106
Q

What four things do you look for in demographics?

A
  1. Size of cohort
  2. Participation rate of that group in the activity you are interested in
  3. Future trends (look at the cohort behind them and their participation rates/interests)
  4. Current trends
107
Q

What is a advantage of being a part of a large cohort?

A

Every business wants to sell to the large group: lots of options related to your interests

108
Q

What is a disadvantage of being a part of a large group?

A

There is lots of competition for jobs, universities, houses, promotions, and raised prices

109
Q

What are some characteristics of the millennial cohort?

A
  1. Tend to be better educated
  2. Increase participation in digital products (“digital natives”)
  3. They care about work-life balance: good jobs, meaningful work, and a private life
  4. They expect competitive wages and benefits
  5. Civic-minded
  6. More likely to share opinions and rely on opinions from friends than official reports
  7. Want feedback/recognition
110
Q

How do the characteristics of the millennial cohort affect gaining employee commitment/meeting customer needs?

A

Employers will have to offer jobs that are meaningful to society, that offer time to have a private life, and that offer health benefits, vacation time, and volunteer time. The business will have to care about the environment and their responsibility towards society, and give their employees lots of feedback based on their performance

111
Q

What are the challenges of bulges in population sizes?

A

Companies who are currently targeting a big cohort are going to face a threat in the number of people coming up behind them (because there are less people)

112
Q

What is happening in Canada as the baby boomer generation gets older?

A
  1. Medical care costs will go up because older people require more health care services
  2. There will be increased elder care needs
  3. There will be an increased number of vulnerable seniors: if taxes and retirement homes don’t increase, there will be more seniors who can’t access the resources they need
113
Q

What are some characteristics of the echo generation in Canada?

A
  1. More disposable income because parents provide essentials: they move back in with parents after graduating from university because of housing costs; lower marriage rate in their twenties
  2. They increasingly influence family purchases: they are adults, so they can influence family purchases and family decisions
114
Q

What are some trends in Canada in terms of changing households?

A
  1. More households have one person living in them and the trend is growing (highest among seniors/baby boomers)
  2. More lone parent and two-earner families
115
Q

What are some trends in Canada in terms of changing ethnic composition?

A
  1. Immigration increasing over past decades
  2. Immigrants are younger and are more likely to live in a city than the average Canadian (closer to work, more opportunities, easier to get around, more resources)
  3. Interacting in the marketplace can be difficult (language barriers, driver’s license, opening bank accounts, finding a family doctor)
116
Q

Why does the government allow immigrants?

A
  1. Ethical reasons: people are suffering or being persecuted in other parts of the world and there is a moral obligation to help them
  2. They fill a gap in the labour needs of the country (eg. bricklayers, scientific and technology know-how)
117
Q

What are the implications of increased ethnic diversity in Canada? How is this an opportunity or a threat?

A

Many consumers have difficulty interacting within the marketplace. Opportunity: making it easier to set up a bank account, providing translation services, providing resources that makes it easier for immigrants to find the resources they need
Threat: you have to print product instructions / apps in other languages as well to help people use it properly

118
Q

What are the implications of changing household demographics in Canada?

A

More disposable income because there are two earners, nobody is home to watch the kids, there is a shortage of small houses, lost economies of scale in shopping (Costco is made for bulk purchases), aging seniors living alone with a smaller support network (opportunity for businesses who come to check on seniors and bring them meals/grocery services, threat for Costco), families face time constraints (lots of extracurriculars among students)

119
Q

What are the implications of the echo generation in Canada?

A

They are a large cohort, so they have significant market impact

120
Q

What are some trends in Canada in terms of changing geographic distribution?

A
  1. Increasing urban concentration in four areas (Golden Horseshoe, Montreal, B.C. lower mainland + Vancouver; Calgary-Edmonton)
  2. Donut effect
  3. Rural living predominates in Atlantic Canada, Saskatchewan, territories
  4. Net exodus of youth from rural areas
121
Q

Why has there been an increasing urban concentration?

A

People moved to the centre of the city to get closer to work, which got crowded and expensive, and then the businesses would buy up the housing areas

122
Q

Explain the donut effect

A

When the centre of the city isn’t highly populated but the space around it is very densely populated

123
Q

Explain the significance of how rural living predominates in Atlantic Canada, Saskatchewan, and the territories

A

The market revolves more around agriculture and fishing, and people live where the word is

124
Q

Explain the net exodus of youth from rural areas

A

Older people are living in smaller towns while young people are working in cities

125
Q

What is the implication of changing geographic distribution in Canada?

A

The geographic distribution affect median age in rural areas and access to goods and services. When young people leave small towns, minimum wage jobs, fashion stores, and movie theatres in those areas are threatened because they no longer have a big customer base

BU 111 Final Exam (4 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions