Ch 1 & 4 Flashcards
(78 cards)
1
Q
Any organization or activity that provides both goods and services to earn profit
A
Business
2
Q
Money a business earns in sales(revenue) minus expenses
A
Profit
3
Q
When a business brings in less money (expenses are greater than revenue)
A
Loss
4
Q
People who risk their time, money and other resources to start and manage a business
A
Entrepreneurs
5
Q
The quality and quantity of goods and services available to a population
A
Standard of Living
6
Q
The overall sense of well-being expended by either an individual or a group
A
Quality of Life
7
Q
What do businesses do that increases the standard of living?
A
They generate taxes
8
Q
Era that aims to build long term relationships.
- Better to keep good old customers than always have new customers
- They gather detailed info about customers
A
The Relationship Era
9
Q
Era 2nd half of the 1800s
- business empires grew and made lots of money
- They increased the standard of living
- Dominate markets, force out competition, manipulate prices, exploit workers, hurt environment.
- Gov stepped in late 1800s and created laws to regulate and protect consumers
A
Entrepreneurship Era
10
Q
Era after WWII
- power was in the consumer
- distinctions = brands
- Marketing concept - consumer focus creates successful companies in every department and level
A
Marketing Era
11
Q
Era early 1900s
- refine production process and increase efficiencies
- jobs become more specialized
- increase productivity and lower cost
- 1913 Henry Ford Assembly line
- customer became an after thought (hard sell)
A
The Production Era
12
Q
Era mid 1700s - mid 1800s
- mass production
- huge factories
- increase production
- lower individual ownership
- no skilled artisans
A
Industrial Revolution
13
Q
Business like establishments that employ people and produce goods and services with goal of contributing to the community rather than financial gain.
A
Nonprofit
14
Q
Why nonprofit is like a business?
A
- Employs workers
- Revenue
- Produces goods and services
- Employees have salaries
15
Q
How nonprofit differs from a business?
A
Revenue goes back into the business. Goal is to contribute back to the business.
16
Q
What are the 4 factors of production?
A
- Natural Resources
- Capital
- Human Resources
- Entrepreneurship
17
Q
Natural Resources
A
- land, water, wind, and minerals
- Not be created
- NOT Agriculture products
- demand based on supply
18
Q
Capital
A
- machines, tools, technology and info
- synthetic goods
- NOT $$
19
Q
Human Resources
A
- education and motivation = important
20
Q
Entrepreneurship
A
- creates opportunities
- economic freedom - freedom to choose (whom to hire what to produce)
- protection from corruption
21
Q
The setting in which a business operates
A
Business Environment
22
Q
What are the 5 key components of the Business environment?
A
Economic environment
Competitive environment
Technological Environment
Global Environment
23
Q
Economic Environment
A
The state of the economy influences businesses
- tax deals attract new firms (state govs)
- small business administration
- Federal Trade Commission
- legislation with enforceable contracts (comply or face legal consequences)
- Corruption hinders the economic environment
24
Q
Competitive Environment
A
Customer Satisfaction increases profit
- less expensive to get old customers to buy more and spread the word
- quality is important
- value = gap between benefits and price
- creates speed to market and work force advantage
25
The rate at which a new product moves from conception to commercialization
Speed-to-Market
26
A business that launches products and fails because too far ahead of the market
Bleeding-Edge Firms
27
A business that releases products right when consumers are ready
Leading-Edge Firms
28
Have to work to keep customers and employees. Employee satisfaction from great product and great management. Workforce satisfaction = better results.
The Workforce Advantage
29
Technological Environment
Any tool/tech that makes businesses more efficient and effective
- Tech makes and breaks companies
- Online shopping
- Creates security issues
- Adapt to tech changes
30
Any tools - especially computers, telecommunications and digital products that businesses use to be more efficient and effective
Business Technology
31
Allows computers to easily access and share info on Internet in forms of text graphics, video, apps, and animation
World Wide Web
32
Business transactions conducted online typically via internet. Creates personalized shopping recommendations, and easy access to customers.
e-commerce
33
Measurable characteristics of a population ex. population size and density, age, gender and race, education and income
Demographics (social environment)
34
Social Environment
- Demographics are evaluates
- Diversity
- Target an ethnic group, or age group
- Workers have high expectations for salary job responsibility and flexibility
- Ethics and Social responsibility, companies are expected to be responsible and make community a better place
35
The Global Environment
Global economics and markets working together as one
- North America Freed Trade Agreement (NAFTA) - free trade throughout North America
- Free trade
- Problems such as war, terrorism, disease, and natural disasters hurt the econ.
36
An international economic and political movement designed to help goods and serves flow more freely across international boundaries
Free Trade
37
International trade agreement that has taken steps to lower tariffs and promote free trade worldwide
General Agreement on Tariffs and Trade (GATT)
38
Aggressive persuasion designed to separate consumers from cash
Hard sell
39
Consumers faces that permeates successful companies in every department at every level
Marketing concept
40
Era that used the Hard sell method?
The Production Era
41
A set of beliefs about right and wrong, good and bad.
Ethics
42
Application of ethics beliefs in the workplace
Business Ethics
43
Obligation of business to contribute to society
Social Responsibility
44
Who does business have social responsibility to?
Stakeholders, employees, customers, community and environment
45
Ethics that come from who you are, your family, social group, and culture
Individual Ethics
46
Why is it hard to define ethics?
USA is divers and so is globe
47
Established to enforce ethical norms that apply to everyone with in our society.
Laws (some can be legal action but unethical, illegal and ethical)
48
Laws should be floor of how we behave in a business it is really our _______ ______
free choice
49
Ethical norms that apply to all people across a broad spectrum of situations
Universal ethical standards
50
Are ethics relative or not?
Relative because depend on situation
51
A decision that contains a conflict of values, every potential course of action has some significant negative consequence.
Ethical dilemmas
52
What characteristic of bosses helps to increase leadership and guide problems?
Empathy
53
Influence is through rules or actions?
Actions
54
What has the most influence over ethical conduct in a business
Organizational Culture
55
A formal written document that defines the ethical standards of an organization and gives employees into they need to make ethical decisions across a range of situations
Code of Ethics
56
Good ways to enforce Code of Ethics
Incorporate in training, good for multinational company because diversity, have throughout actions and communication.
TIPS
- executives should buy into and follow through (lead by example),
- Ethics throughout company from CEO to janitors
- Mandatory staff training
- code = global and local scope in all languages necessary
- trusting and clear ethical concern reports that are anonymous
- Protections from whistle blowers
- Enforce code of ethics. If violated must respond
57
People who report illegal and unethical behavior in a company
Whistle Blower
58
Obligation of a business to contribute to society. Depends on a company after they start making profit.
Social Responsibility
59
Any group that has a stake or personal interest in the performance and actions of an organization.
Stakeholders
60
How business considers stakeholders?
Thinks of them during decision making, balance needs and priorities. Example of stakeholders : employees, customers, investors, community and the environment.
61
Two approaches a company's reaction
Reactive - put on the band aid when it goes wrong. only does good stuff when bad press
Proactive - do good on own terms
62
Social Responsible to employees?
Not social responsible is laws: equal opportunity, safety, min wage, overtime, protection from sexual harassment, and family and medical unpaid leaves.
BEYOND 0 respect value of employees, talents pay off, more about safety, balance work and social life
63
A social movement that focuses on 4 key consumer rights
Consumerism
64
4 key consumer rights
1. Right to be safe
2. Right to be informed
3. Right to choose
4. Right to be heard
65
Strategy of deliberately designing products to fail in order to shorten time between purchase
Planned obsolescence
66
Responsibility to Investors
- achieve long term earnings in responsibility to all stakeholders
- trading short term profit for long term success
- full disclosure
67
Federal legislation that sets higher ethical standards for public corporations and accounting firms. Limit conflict of interest issues and require financial officers and CEOs to certify validity of financial statements. And spend money wisely
Sarbanes-Oxley Act
68
Donations to nonprofit groups as in money and products or donations of employee time.
Corporate philanthropy
69
Marketing partnerships between business and nonprofit organization designed to spike sales for a company and increase revenue for nonprofit
Cause-related Marketing
70
Business contributes to community through actions of business itself rather than donations of time and money ex. committing to hiring veterans or pay workers more than the minimum wage. These things benefit society as well
Corporate Responsibility
71
To meet needs of current generation without hindering ability of future generations to meet their needs
Sustainable development
72
Refers to the amount of harmful greenhouse gases a firm emits through operations both directly and indirectly.
Carbon footprint
73
Developing and promoting environmentally sound products and practices to gain a competitive edge.
Green Marketing
74
Act that states no Bribery
Foreign Corrupt Practices Act
75
Systematic evaluation of how well a firm is meeting its ethics and social reasonability goals. Goals are established and carried out.
Social Audit
76
What is the Triple Bottom Line?
Financial success, social success, and protecting the environment
77
Difference between positive and negative ethics?
Negative - tells us what should not doo. Look in handbook, Compliance code of ethics.
Positive- guidelines for what we should do. Everybody is accountable for behavior. no rules. More like statements. Integrity code of ethics.
78
4 words you should never use?
Can't, Problem, Failure, Bordom
