What Is Business? Flashcards
What is business?
What it takes to produce and sell, for a profit, the goods and services that satisfy society’s needs
What are the 3 types of businesses?
Service Businesses, Manufacturing Businesses and Marketing Businesses
What is profit?
The reward owners receive for their product and services and the payment for taking the risk and operating a business
What are the 4 resources that you need to start a business?
Material resources, Human resources, Financial resources and Informational resources
What makes a business?
Owner, Employees and Customers
What are the 5 Functional areas to operate a business?
Management, Operations, Marketing, Accounting and Finance
What makes a business?
Owner, employees and costumers
What are the 5 functional areas to operate a business?
Business operates off of management, operations, marketing, accounting, and finance
What role do managers play in management?
Plan: Make up goals and develop strategies to achieve them.
Organize: Activities and resources
Staff: Hiring employees to reach the company’s goals
Direct: Make decisions and correct when needed.
Control: Measure performance
What is marketing?
• Design a product to meet the customers’ needs
• In charge of price and quality control, choose how the product will be delivered and how it will display
• Decide the best was to advertise the product
•Develop relationships to ensure the customers benefits of the product
What is operations?
Converts labor, material, money, info into goods or services
What is an operations manager?
Designs and oversees transformation of resources into goods and services and ensures they are high quality
What is Accounting?
Accountants measure, summarize and communicate financial and managerial information
Financial Accountant
Prepare financial statements to help users asses financial strength of the company
Managerial Accountant
Prepare information such as reports on costs of materials used in the production process
What is finance?
Planning for obtaining and managing a company’s funds. How much money the company needs and where it should spend it.
What external forces influence business activities? 6
Economy, government, consumer trends, corporate and citizenship
What is marketing?
Processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients partners, and society at large
What is the marketing concept? 
- Identifying what with customers or potential customers need or want.
- Developing products to meet those needs and wants
- Engaging the entire organization in efforts to satisfy those customers
Consumer markets
Consist of purchasers, who intend to consume or benefit from the purchase products, and who don’t buy products to make profit
Business business (Industrial) Markets
Consist of purchasers to buy specific kinds of products for use in making other products for resale or day-to-day operations
Producer market
Individuals or organizations, that by certain types of products to use when making other products
Reseller markets
Wholesalers and retailers that by finished products and sell them for profit
Governmental markets
Buy goods and services to provide citizens with highways, education, energy, and defense
Utility
The ability of a good or service to satisfy human need
Types of utilities 
Place utility, time utility, integrity and possession utility have real value in terms of both money and convenience
Marketing strategy
And organization come by and all of its marketing goals into one comprehensive plan. A marketing strategy has a fundamental goal of increasing sales and achieving a sustainable competitive advantage
1. Identifying, selecting and analyzing a target market
2. Developing and maintaining an appropriate marketing mix
Marketing mix
A combination of product price, place, distribution and promotion developed to satisfy a particular target market
Target market
Group of individuals or organizations, or both for which a firm develops and maintains a marketing mix suitable for the specific needs and preferences of that group. Ex: Daycare
Undifferentiated approach
The marketer ignores segment differences that might exist within the market and uses a marketing strategy that is intended to appeal to as many people as possible. Ex: Food
Market-segmentation
Divides a market into segments and directs a marketing mix to a particular segment or segments rather than at the total market. Its objective is to design a marketing mix that precisely matches the expectations of customers in the targeted segment.
Marketing Environment
Economic Forces
Socio-cultural forces
Political forces
Competitor Forces
Legal and Regulatory forces
Technological forces.
Transactional Leadership
A leadership style where leaders rely on rewards and punishments to achieve optimal job performance from their subordinates
Transformational Leadership
A leadership approach that causes change in individuals and social systems. In its ideal form, it creates valuable and positive change in the followers with the end goal of developing followers into leaders.
SWOT
Strengths
Weaknesses Opportunities
Threats
Core Competencies:
Approaches and processes that a company performs well and may give advantages over competitors.
Strategic Plan
Board of directors set the long term goals
Tactical Plan
1-3 year period plan that is easier to change
Operational Plan
Lasts 1 year or less, is more specific and helps reach tactical plans
Contingency Plan
Outlines alternative courses of action if other plans are disrupted
