Terms Business Acumen Flashcards
Integrated marketing communications (IMC)
Coordination of all promotional activities—media advertising, direct mail, personal selling, sales promotion, and public relations—to produce a unified, customer-focused message.
Stock market
Companies that list stocks for public investors to buy and sell.
Logistics
Process of coordinating the flow of goods, services, and information among members of the supply chain.
Venture capitalists
Business firms or groups of individuals that invest in new and growing firms in exchange for an ownership share.
Privatization
Conversion of government-owned and operated companies into privately held businesses.
Publicity
Nonpersonal stimulation of demand for a good, service, place, idea, event, person, or organization by unpaid placement of information in print or broadcast media.
Accounting
Process of measuring, interpreting, and communicating financial information to support internal and external business decision making.
Divestiture
Sale of assets by a company.
Creative selling
Persuasive type of promotional presentation.
Cost-based pricing
Formulas that calculate total costs per unit and then add markups to cover overhead costs and generate profits.
Benchmarking
Process of determining how well other companies perform business functions or tasks.
Breakeven analysis
Pricingrelated technique used to determine the minimum sales volume a product must generate at a certain price level to cover all costs.
Dividend
a reward, cash or otherwise, that a company gives to its shareholders. Dividends can be issued in various forms, such as cash payment, stocks or any other form.
Core inflation rate
Inflation rate of an economy after energy and food prices are removed.
Capital structure
Mix of a company’s debt and equity capital.
Production Process
Converting Inputs to Outputs
Production Management Tasks
- Planning the production process
- Selecting the most appropriate layout
- Impementing the production plan
- Controlling the production process
Steps in production control
Planning
Routing
Schedule
Dispatching
Follow up
Six sigma
Define, measure, analyze, improve, control
Planned economies
Capitalism, communism, socialism, mixed economy
Frictional unemployment
Temporarily not working, looking for a job
Structural unemployment
Not working due to no demand for skills, may be retaining for a new job
Cyclical unemployment
Not working due to economic slowdown
Looking for a job
Financial Accounting Standards Board (FASB)
Organization responsible for evaluating, setting, or modifying GAAP in the United States.
Tender offer
Offer made by a company to the target company’s shareholders specifying a price and the form of payment.
Balance sheet
Statement of a company’s financial position
- what it owns and claims against its assets
—at a particular point in time.
International Financial Reporting
Standards (IFRS)
Standards and interpretations adopted by the lASB.
Risk return trade off
Process of maximizing the wealth of a company’s shareholders by striking the optimal balance between risk and return.
Budget
Company’s plan for how it will raise and spend money during a given period of time.
Statement of owners equity
Record of the change in owners’ equity from the end of one fiscal period to the end of the next.
Asset
Anything of value owned by a company.
Liability
Anything owed to creditors —the claims of a company’s creditors.
Accounting equation
Formula that states that assets must always equal the sum of liabilities and owners’ equity.
Financial plan
Document that specifies the funds needed by a company for a period of time, the timing of inflows and outflows, and the most appropriate sources and uses of funds.
Exchanges
Infrastructure that facilitates the trading of equity securities and stocks.
Accounting cycle
Set of activities involved in converting information and individual transactions into financial statements.
Investment banker
Assist companies in raising capital and provide merger and acquisition services.
Common stock
Shares that give owners voting rights but only residual claims to the firm’s assets and income distributions.
Financial system
Process by which money flows from savers to users.
Capital structure
Mix of a company’s debt and equity capital.
Stock split
Occurs when a company decides to divide its existing shares of stock into multiple shares.
Stock quote
Price of a specific stock and performance information.
Income statement
Financial record of a company’s revenues, expenses, and profits over a period of time.
Accrual accounting
Accounting method that records revenues and expenses when they occur, not necessarily when cash actually changes hands.
International Accounting Standards Board (IASB)
Organization established in 1973 to promote worldwide consistency in financial reporting practices.
Federal Deposit Insurance Corporation
(FDIC)
Federal agency that insures deposits at commercial and savings banks.
Leveraged buyouts (LBO)
Transaction in which public shareholders are bought out and the company reverts to private status.
Controlling
Function of evaluating an organization’s performance against its objectives.
End-use segmentation
Marketing strategy that focuses on the precise way a B2B purchaser will use a product.
Direct response retailing
Sales through catalogs, telemarketing, and magazine, newspaper, and television ads
Automatic merchandising
Sales of consumer, products, such as candy, soft drinks, ice, chewing, gum, sandwiches, healthy, snacks, and soup through vending machines
What are the marketing implications of each stage?
Marketers sometime employ strategies to extend the product lifecycle, including increasing frequency of use, adding new users, finding new uses for the product, and changing package size, labeling, or product design
What are the elements of a retailers marketing strategy?
After identifying their target markets, retailers must choose merchandising, customer service, pricing, and location strategies that will attract customers in those markets segments
What is distribution intensity?
Distribution intensity is the number of intermediaries or outlets or which manufactured distributes it’s good
Seven steps in the sales process
- Prospecting and qualifying, identify potential customer.
- Approach, prepare for the sales interview.
- Presentation, tell the story.
- Demonstration, involve the customer in the presentation.
- Handling objections answered the prospects questions, and proposed solutions
- Closing the sale, ask for the order
- Follow up, thank the customer and begin the process of maintaining, mutually beneficial relationships that result in future sales.
Types of production layout
Process layout, product layout, fixed position layout, customer oriented layout
What is considered the heart of any information system?
Database
Municipal bonds
State and local government bonds, backed by the credit where issued
Government bonds
U.S. treasury bonds, mature in 2,3,5,7, or 10 years from date issued.
Materials requirement planning
Computer-based production planning system that lets a company ensure that it has all the parts and materials it needs to produce its output at the right time and place and in the right amounts.
Network
a. : an interconnected or interrelated chain, group, or system. a network of hotels. b. : a system of computers and peripherals that are able to communicate with each other.
Five non traditional non profit
- Event
- Person
- Cause
- Organization
- Place
Factoring
Factoring allows the company to convert its receivables into cash quickly without worrying about collections
