Chapter 1 Flashcards
(21 cards)
Adding value
Every company adds value to the next customer and in the end for ultimate customer
Business
Profit seeking organization provides goods and services designed to satisfy customers needs
Revenue
Money company brings in through sale of goods or service
Business model
Concise description of how a business intends to generate revenue
Profit
Money left over after all costs have been deducted
Revenue-expenses=profit
Competitive advantage
Some aspects of a product or company that makes it more appealing to target customers
Non profit
Provides goods or services without profit motive
Good producing company
Creates value by making things which are tangible
Capital intensive
Service business
Create value by performing activities that deliver some benefit to customers
Labor intensive
Barrier to entry
Any resource or capability a company must have before it can start competing in a given market
Business mindset
A view of business that considers the myriad decisions that must be overcome before companies can deliver the products that satisfy customer needs
Social environment
Trends and forces in society
Stakeholders
Internal and external groups affected by a company’s decision and activities
Technology environment
Forces resulting from the practical application of science to innovation, products, and process
Disruptive technologies
Fundamentally change the nature of industry,
Can be powerful enough to create or destroy entire companies
Economic environment
Conditions and forces that affect the cost and availability of goods , services and labor that shape the behaviors of buyers and sellers
Legal regulatory environment
Laws and regulations at local, state and national levels
Market environment
Company targets customers, the buying influences that shape the behavior of those customers and competitors that market similar products
Major functional areas
How company is broke into different areas
R&D
Responsible for conceiving and designing new products
Marketing dept
Identifying opportunities in marketplace
