Foundations of ENTR Final Flashcards
(313 cards)
1
Q
Transfer funds from savers to borrowers
Disperse money from saving ppl to ppl who need to borrow
A
Financial Markets
2
Q
Financial intermediaries that obtain funds by accepting checking and savings deposits and then lending those funds to borrowers
Banks, allow you to open savings to disperse to other ppl
A
Depository institutions:
3
Q
3 Depository institutions:
A
Commercial banks
Credit unions:
Savings and loan associations:
4
Q
Owned by its depositors
A
Credit unions:
5
Q
Obtain funds by accepting savings account deposits used to make mortgage loans
Primarily used for mortgages
A
Savings and loan associations:
6
Q
Institutional Investors
Securities Brokers
Securities Dealers
Investment Banks
A
Nondepository Financial Institutions
7
Q
Amass financial capital and use it to acquire a portfolio of different assets
A
Institutional investors
8
Q
Act as agents for investors who want to buy and sell financial securities
agents who make the connections, so they can make the deals. They make a commission on deals they make
A
Securities brokers
9
Q
Participate directly in securities markets, buying and selling stocks for their own accounts
buying and selling on their own
A
Securities dealers
10
Q
Specialize in helping firms raise financial capital by issuing securities in primary markets
goal to help borrowers raise financial capital; finding private purchasers
A
Investment banks
11
Q
Established the Federal Reserve System as the central bank of the United States
A
Federal Reserve Act of 1913
12
Q
Established Federal Deposit Insurance Corporation to insure bank deposits
Prohibited commercial banks from selling insurance or performing the functions of investment banks
insure deposits, established fdic
A
Banking Act of 1933
13
Q
Required firms issuing new stocks in a public offering to file a registration statement with the Securities Exchange Commission (SEC)
make sure filing is accurate and know
A
Securities Act of 1933
14
Q
Don’t go through this, not on final
Established the Securities and Exchange Commission to regulate and oversee the securities industry
A
Securities Exchange Act of 1934
15
Q
know what this is- if auditing an accountant, can not have a conflict of interest byt providing other services for you. AKA you are not connected through accountat
Ensured that external auditors offered fair, unbiased opinions when they examined a company’s financial statements
A
Sarbanes-Oxley Act, 2002
16
Q
Not as important
Overturned the section of the Banking Act of 1933 that prohibited commercial banks from selling insurance or performing the functions of investment banks
A
Financial Services Modernization Act of 1999
17
Q
KNOW
- Gave govt more authority over non banking institutions
Expanded the Fed’s regulatory authority over nondepository financial institutions
A
Dodd-Frank Act of 2010
18
Q
Common Stock Preffered Stock Bond Convertible Securities Mutual Fund Exchange Traded Fund (ETF)
A
Types of Securities
19
Q
if firm goes bankrupt, they get money back before common stock, need to pay them first anyways for dividends
Gives its holder preference over common stockholders in terms of dividends and claims on assets
A
Preferred stock
20
Q
Basic form of ownership in a corporation
last on list
A
Common stock
21
Q
Formal debt instrument issued by a corporation or government entity
A
Bond
22
Q
Bond or share of preferred stock that gives its holder the right to exchange it for a stated number of shares of common stock
shared of preffered stocks that u can exchange to common stock
A
Convertible securities
23
Q
Institutional investor that raises funds by selling shares to investors and uses the accumulated funds to buy a portfolio of many different securities
invest in a more diverse portfolio, mixes up all securities and slices them to share stocks from x firms
A
Mutual fund
24
Q
Shares traded on securities markets that represent the legal right of ownership over part of a basket of individual stock certificates or securities
market basket of individual stock securities, different types
A
Exchange-traded fund (ETF)
25
Basic Rights of Common Stock
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Voting rights -
Right to dividends -
Capital gains:
Preemptive right -
Right to a residual claim on assets
```
26
Right to vote on important issues in the annual stockholders’ meeting
Voting rights -
27
- Distribution of earnings to the corporation’s stockholders
They get dividends if earner
Right to dividends
28
Return on investment received if the price of the stock rises above the amount paid for it
if stock rises higher than paid for, taxable, get money
Capital gains:
29
Right to purchase new shares in proportion to existing holdings
u have 1st dibs to purchase new stock if adding more in proportion
Preemptive right
30
Assets Prolly not gonna get any tho
Right to a residual claim on assets
31
Maturity Date
Par Value
Coupon Rate
Current Yield
Features of Bonds
32
Date when a bond will come due
Maturity date:
33
Value of a bond that the issuer promises to pay the bondholder when the bond matures
what they pay u when bond matures
If u sell bond early, u can sell at premium or loss
Par value:
34
Interest paid on a bond
| Expressed as a percentage of the par value
Coupon rate
35
Amount of interest earned
| Expressed as a percentage of the bond’s current market price
Current yield:
36
Bonds can be sold to other investors before maturity, but the price received _____ correspond to the bond’s par value
might not
Bond higher than par value- premium, if not, discount
37
When the market price is above the par value
Premium -
38
When the market price is below the par value
Discount -
39
Market in which newly issued securities are traded
Primary Securities Market
40
New securities are offered to any investors who are willing and able to purchase them
Anyone who has resources can buy stock
Public offering:
41
Negotiated between the issuing corporation and a small group of accredited investors
investment bank identifies accredited investors, only to x ppl
Private placement:
42
Previously issued securities are traded
Any stock sold b4 1st one does not make firm money
Secondary Securities Market
43
Organized venue for trading stocks and securities that meet listing requirements
Stock (securities) exchange:
44
Securities that are listed on exchanges are traded
Over-the-counter market (OTC):
45
Automated, computerized securities trading system that automatically matches buyers and sellers
computerized system, tinder for stocks
Electronic communications networks (ECN):
46
Members of the general public cannot directly trade stocks and other securities
Enlist the services of a brokerage firm to carry out their trades
Personal Investing
47
Person who makes connection to sell stocks
brokers
48
Provide a wide range of services in addition to carrying out trades
Full-service brokers -
49
Provide basic services needed to buy and sell securities but offer fewer additional services
no personal transaction
Discount brokers
50
Market & Limit Orders
Types of Orders When Buying and Selling Securities
51
Tell brokers to buy or sell a specific security at the best currently available price
Market orders
52
Tell brokers to buy a specific stock only if its price is below a certain level, or to sell a specific stock only if its price is above a certain level
Limit orders
53
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Investing for income
Market timing
Investing for growth
Value Investing
Buying & Holding Stock
```
Strategies for Investing in Securities
54
Buying bonds and stocks to generate a steady income
Investing for income -
55
Investing by analyzing when prices of specific stocks are likely to rise and fall
guess when the stock is gonna be as low as possible, and sell when as high as possible
Market timing
56
Investing in companies that have the potential to grow much faster than average for a sustained time
Investing for growth
57
Investing in stocks that are undervalued in the market
believe that you have knowledge others don’t
Value investing
58
Purchasing a diversified set of securities and holding them for a long period of time
Buying and holding stocks
59
Stock index statistics that track how the prices of specific sets of stocks have changed
Stock Indices
60
Tracks stock prices of 30 large, well-known U.S. corporations
Looks at 30 big strong performing firms
Dow Jones Industrial Average (DJIA)
61
Based on prices of 500 major U.S. corporations in a variety of industries and market sectors
500 major corps
Standard & Poor’s 500
62
Organizational function and a set of processes
Create, communicate, and deliver value to customers
Manage customer relationships in ways that benefit the organization and its stakeholders
Create long term value for organization
Marketing:
63
Ability of goods and services to satisfy wants
Utility:
64
Form
Time
Place
Ownership
Utility types
65
Satisfies wants by converting inputs into a finished form
the form the product is in, good use of product, makes u feel good
liquid hand soap, audio book (CD, Mp3)
Form utility:
66
Satisfies wants by providing goods and services at a convenient time for customers
Amazon Prime, audio books, Video on Demand, 24 hour Hy-Vee
Time utility
67
Satisfies wants by providing goods and services at a convenient place for customers
Redbox, audio books (accessible via phone in car), car DVD players for kids on long drive
Place Utility
68
Satisfies wants by smoothly transferring ownership of goods and services from seller to buyer
iTunes, Audible.com, vehicle financing, brokers
Ownership Utility
69
People
Place
Event
Idea
Types of Marketing
70
Used by people in the field of sports, politics, and art
Sports stars, YouTubers,
People marketing
71
Used to draw people to a particular place
Place marketing
72
Used for athletic, cultural, or charitable events
about 1 event
Event marketing
73
Used to change how people think or act
stay safe, philosophies
Used to change how people think or act
74
Changed as the ratio of products to consumers shifted.
Relationship- long term customer value
Production- making enough
Evolution of Marketing
75
Ongoing process of acquiring, maintaining, and growing profitable customer relationships by delivering unmatched value
Customer Relationship Management (CRM)
76
Felt by customers when they perceive that a good or service delivers value above and beyond their expectations
Customer satisfaction
77
Customers buy a product from the same supplier again and again
Customer loyalty
78
Formal document that defines marketing objectives and the specific strategies for achieving those objectives
Planning involves deciding where to target those objectives and evolving strategies through market segmentation
Marketing Plan
79
Dividing potential customers into groups of similar people, or segments
Market segmentation
80
Group of people who are most likely to buy a particular product
Target Market
81
Target Market Characteristics
Size
Profitability
Accessibility
Limited competition
82
Consumer Market Segmentation
Demographic
Geographic
Psychographic
Behavioral
83
Dividing the market based on characteristics about people such as age, income, ethnicity, and gender
Demographic
84
Dividing the market based on where consumers live
Geographic
85
Dividing the market based on consumer attitudes, interests, values, and lifestyles
Psychographic
86
Dividing the market based on how people behave toward various products
Behavioral
87
Direct their efforts toward people who are buying products for personal consumption
People
Consumer marketers (B2C)
88
Direct their efforts toward people who are buying products to use either directly or indirectly to produce other products
Business marketers (B2B)
89
Categories of Business Segmentation
Geographic
Customer-Based
Product use based
90
Marketing Mix
Know this!
```
Blend of marketing strategies for:
Product
Price
Distribution
Promotion
```
91
Firm evaluates its marketing mix when it enters foreign markets
Global marketing mix -
92
Elements That Influence the Consumer Decision-Making Process
Cultural
Social
Personal
Psychological
93
Elements That Affect the External Marketing Environment
```
Competitive
Economic
Social/ Cultural
Technological
Political/ Legal
```
94
Begins with analysis of the market share
Competitive -
95
Involves identifying and responding to changes as soon as possible
Economic
96
Includes lifestyle, customs, language, attitudes, interests, and population shifts
Social or cultural
97
Affects marketers in ways that are less directly visible
Technological
98
Includes laws, regulations, and political climate
Political or legal
99
People's actions when they are buying, using, and discarding goods and services for their personal consumption
Consumer Behavior
100
Consumer discomfort with a purchase decision, typically for a higher-priced item
Cognitive dissonance
101
Process of gathering, interpreting, and applying information
To uncover opportunities and challenges, and to make better decisions
Marketing Research
ex: your own surveys, focus groups, customer comments, mall interviews
102
Existing data that marketers gather or purchase for a research project
Secondary data
ex: Census, Wall street journal, time magazine, product sales history
103
New data that marketers compile for a specific research project
Primary data
104
Primary Research types
Observation & Survey
105
Does not require the researcher to interact with the research subject
Observation
106
Requires that the researcher interact with the research subject
Survey
107
Development and promotion of products with ecological benefits
Green marketing
108
Creation of products tailored for individual consumers on a mass basis
Mass customization
109
Anything that an organization offers to satisfy consumer needs and wants
Something they want
Product
110
Product by any other name
Service
111
Qualities of a Service
```
Intangibility
- Can't touch
Inseparability
- Cab't be separated from practitioner
Variability
-Difference btwn 2 ppl with skills
Perishability
- Can't keep in a stockpile
```
112
Products that do not include any service
Pure goods
113
Products that do not include any goods
Pure services
114
Layers of a Product
Core Benefit
Actual Product
Augmented Product
115
Consumers buy a core benefit that satisfies their needs
Why they're buying it
Core benefit
116
Physical good or the delivered service that provides the core benefit
What it is
Actual product
117
Additional goods and services provided with the actual product that sharpen their competitive edge
Augmented Product
118
Purchased for personal use or consumption
Consumer Products
119
Inexpensive goods and services that consumers buy frequently with limited consideration and analysis
don’t think a lot, buy frequently, not a lot of thought
Convenience products
120
More expensive products that consumers buy less frequently
Shopping products
121
Much more expensive products that consumers seldom purchase
Specialty products
122
Goods and services that hold little interest or even negative interest for consumers
Unsought products
123
Purchased to use either directly or indirectly in the production of other products
formal process/ checklist u go through when shopping
Used to make product
Or inderrict
Components are not expected to be sold but also not broken down enough to be raw materials (kinda put together)
Business Products
```
ex:Installations
Accessory equipment
Maintenance, repair, and operating products
Raw materials
Component parts and processed materials
Business services
```
124
Attributes that make a good or service different from other products that compete to meet the same or similar customer needs
Product Differentiation
Could be at a high quality level but need to be willing to pay for that
Fast food- best food at X amount of price, consistent
125
Measures how well a product performs its core functions
Quality level
126
Reliability of a product in delivering the promised level of quality
Product consistency
127
Specific characteristics of a product
Product features
128
Advantages that a customer gains from a specific product feature
Customer benefits
129
Group of products that are closely related to each other
Similar, makeup line, but may substitute one product for another. Need one that fills all the gaps
Product line
130
Risk of adding new product lines
Cannibalization
131
Total number of product lines and individual items sold by a single firm
Everything that you sell
Product mix
132
Overall value of a brand to an organization
Brand equity
133
Purchasing the right to use another company’s brand name or symbol
allow you to use my brand name and symbil in exchange for percentage of rev
(selling someone’s coffee brand at their store)
Licensing:
134
Established brands from different companies joining forces to market the same product
Target designers work with target as target exclusive
Cobranding
135
: Brands that the producer owns and markets
National brands
136
Brands that the retailer both produces and distributes
Known as private-label brands
Private label brands, convience items off brand, hyvee brand
Store brands
137
Similar products offered under the same brand name
similar products, new kellogs cereal
Line extensions
138
New product, in a new category, introduced under an existing brand name
new category in brand, Heinz mustard, used to only be Heinz ketchup. Define category
Brand extensions
139
Discontinuos
Dynamically Continuos
Continous
Types of Innovation
140
Brand-new ideas that radically change how people live
brand new, never been done before, changes everything
Discontinuous innovation
141
Characterized by marked changes to existing products
| significant changes to existing products
Dynamically continuous innovation
142
```
Features a slight modification of an existing product
slight modifications (1/3 less sugar)
```
Continuous innovation
143
New Product Development Process
Not as important
```
Idea Generation
Idea Screening
Analyisis
Development
Testing
Commecialization
```
144
Characteristics That Determine Product Diffusion Rate
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Observability
Traibility
Complexity
Compatability
Relative advantage
```
145
Visibility of a product to other potential consumers
More I see product being consumed, I’m more interested in consuming the product
aggressive sampling, using social influencers
Observability -
146
Ease in which potential consumers sample a new product
Trialability -
147
Ease with which potential consumers easily understand a product
Complexity -
148
Consistency of a product with the existing way of doing things
Can we use it with stuff we already have
Compatibility -
149
Benefits of the new product compared to the existing product
Relative advantage
150
4 Product Life cycles for product
know
Introduction
Growht
Maturity
Decline
151
Influences consumer purchase decisions through information, persuasion, and reminders
Promotion
152
Coordination of marketing messages through every promotional vehicle to communicate a unified impression about a product
Integrated marketing communication
153
How the marketer would like the target market to envision a product relative to competition
What's special
Positioning statement
154
Meaningful, believable, and distinctive concept used to cut through the competition
Big idea
155
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Specific marketing communication vehicles that include tools such as:
Advertising (humour cited as memorable)
Sales promotion
Direct marketing
Personal selling
Emerging tools
```
Know this
Promotional Channels
156
```
Internet Advertising
Social Media
Native Advertising
Product Placement
Advergaming
Buzz Marketing
Sponsorship
```
not improtant
Emerging Promotional Tools
157
```
Advertising
Sales Promotion
Consumer Promotion
Trade Promotion
Public relations
Personal Selling
```
Traditional Promotional Tools
158
Paid, nonpersonal communication designed to influence a target audience with regard to a product, service, organization, or idea
Advertising
159
Stimulates sales activity through specific short-term programs aimed at either consumers or distributors
Sales promotion:
160
Designed to generate immediate sales
| Through premiums, promotional products, samples, coupons, rebates, and displays
Consumer promotion
161
Stimulates wholesalers and retailers to push specific products aggressively
Trade promotion
162
Creates positive relationships with all of a firm’s different publics
Public relations
163
Unpaid stories in the media that influence perceptions about a company or its product
Publicity:
164
Person-to-person presentation of products to potential buyers
Personal selling
165
```
Prostpect & Qualify
Prepare
Present
Handle Objections
Close Sale
Follow Up
```
Not important
Steps in the Sale Process
166
```
Product characteristics
Product life cycle
Target audience
Push and pull strategies
Competitive environment
Budget
```
Factors Determining the Right Promotional Mix
167
Plan for delivering the right product to the right person at the right place at the right time
Distribution Strategy
168
Network of organizations and processes that links producers to consumers
Channel of distribution
169
: Physical movement of products along the distribution pathway
Physical distribution
170
Distribution process that links a producer and a customer with no intermediaries
Direct channel
171
Distribution organizations that facilitate the movement of products from a producer to a consumer
Channel intermediaries
172
Distributors that buy products from producers and sell them to other businesses
Wholesalers
173
Independent distributors who buy products from different businesses and sell them to different customers
Independent wholesaling businesses
174
Take legal possession or title of the goods they distribute
Merchant wholesalers
175
Do not take title of the goods they distribute
Agents/brokers
176
```
Full-service merchant wholesalers
Limited-service merchant wholesalers
Categories
Drop shippers
Cash and carry wholesalers
Truck jobbers
```
Types
| Merchant Wholesalers
177
Distributors who sell products directly to users in small quantities
Retailers
178
Providing multiple distribution channels for consumers to buy a product
Multichannel retailing:
179
Intensive distribution
Selective distribution
Exclusive distribution
Strategic options of store retailers
180
```
Include:
Online
Direct response retailing
Vending
Direct selling
```
Nonstore Retailers
181
Involves hiring independent contractors to sell products to their personal network
Multilevel marketing (MLM):
182
All organizations, processes, and activities involved in the flow of goods from raw materials to the final consumer
Supply chain
183
Planning and coordinating the movement of products along the supply chain
Supply chain management (SCM)
184
Subset of SCM that focuses on the tactics involved in moving products along the supply chain
Logistics:
185
```
Raw Materials
Logistics
warehouse/ storage
Production
Warehouse/storage
Logisitics
Distributors
```
N?A
Elements of the Supply Chain
186
Firms express long-term profitability goals in terms of return on investment (ROI) or return on sales (ROS) to:
Build profitability
| Boost volume
187
: Product pricing strategy that aims to capture the market through rock-bottom prices
Penetration pricing
188
Long-term discount pricing that is designed to achieve profitability through high sales volume
Everyday-low pricing (EDLP)
189
Designed to drive traffic to retail stores by special sales on a limited number of products, and higher everyday prices on others
High/low pricing:
190
Pricing a handful of items temporarily below cost to drive traffic
Loss-leader pricing
191
Aims to maximize profitability by offering new products at a premium price
Skimming pricing
192
Process of determining the number of units a firm must sell to cover all costs
Alternatives to cover costs
Raise prices
Decrease variable costs
Decrease fixed costs
Breakeven Analysis
193
Gap between the cost and the price of an item on a per-product basis
Profit margin
194
Method of establishing a fixed margin starts with determining the actual cost of each product
Cost-based pricing -
195
- Begins by determining what price consumers would be willing to pay
Demand-based pricing
196
Consumers use price as an indicator of quality unless they have additional information to guide their decision
Price-quality relationships
197
Practice of ending prices in numbers below even dollars and cents in order to create a perception of greater value
Odd pricing
198
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Achieving the goals of an organization using organizational resources through:
Planning
Organizing
Leading
Controlling
```
Management
199
Managers who set the overall direction of the firm, articulating a vision, establishing priorities, and allocating time, money, and resources
Communicate Goals
Top management
200
Managers who supervise lower-level managers and report to higher-level managers
Help get pieces in place
Middle Management
201
Managers who directly supervise nonmanagement employees
First-line (supervisory) management
202
```
Technical Skills (important early)
Human Skills (Important Late)
Conceptual Skills (especially important late)
```
Management Skills
203
Suggests that human needs fall into a hierarchy, and as each need is met, people become motivated to meet the next need in the pyramid
Only motivated when previous unmet needs are met
Physiological and safety are different
Safety- protects physical needs
Maslow’s hierarchy of needs theory
204
Suggests that management attitude toward workers fall into two opposing categories based on management assumptions about worker capabilities and values
Employees are slackers vs work is meaningful
Theory X and Theory Y
205
Concerns the relationship among individual effort, performance, and reward
Expectancy theory
206
```
include in goal-setting
avoid winner-takes-all rewards
explain transferable skills when assigning new task(s)
```
If the employee doesn’t believe goals are achievable, they won’t try
Or if they aren’t rewarded
Expectancy theory Implications
207
Suggests that perceptions of fairness directly affect worker motivation
Equal rewards
Workers seek to balance equation by:
Increasing output (asking for raise)
Decreasing input (working less)
Changing comparison target (rationalize a reason why they are treated differently)
Leave to find a more fair environment (employee turnover)
Equity theory
208
Seek to make their employees productive and engaged rather than happy
Emphasize the health and well-being of their employees
Provide generous sabbaticals to their long-serving employees
Companies:
209
Establishes a vision for the company by:
Defining long-term objectives and priorities
Determining broad action steps
Allocating resources
Strategic planning:
210
Applies strategic plans to specific functional areas
Tactical planning
211
Applies tactical plans to daily, weekly, and monthly operations
Operational planning:
212
Planning for unexpected events
| Involves a range of scenarios and assumptions that differ from the assumptions behind the core plans
Contingency planning
213
If its probable and harmful
Contingency Planning Paradigm FOCUS AREA
214
Definition of an organization’s purpose, values, and core goals
Mission
215
Helps management evaluate an organization in terms of internal strengths and weaknesses, and external opportunities and threats
SW (Internal)
OT (External)
SWOT analysis
216
Benchmarks that managers use to measure performance in key areas
Strategic goals
217
Action plans that help an organization achieve its goals by forging the best fit between the firm and the environment
Strategies
218
```
Defining the Mission
Evaluating Competitive Position
Setting Goals
Creating Strategies
Implementing Strategies
Evaluating results & incorporating lessons learned
```
Strategic Planning Process
219
Creating a logical structure for people, their jobs, and their patterns of interaction
Organizing
220
Extent to which decision-making power is held by a small number of people at the top of the organization
where the decision making is done
Degree of centralization
221
Number of people a manager supervises
Span of control
222
Division of workers into logical groups
how u divide workers
Departmentalization:
223
Clear, simple chain of command from top to bottom
Line organization
224
Line managers form the primary chain of authority, and staff departments work alongside line departments
Line-and-staff organization
225
Flexible structure that brings together specialists from different areas of the company to work on individual projects on a temporary basis
Matrix organization
226
Hoard decision-making power for themselves and issue orders without consulting followers
DO X
Autocratic leaders
227
Share power with followers, and solicit and incorporate input from followers before making final decisions
Which is better, x or y?
Democratic leaders
228
Set objectives for followers but give them freedom to choose the way to accomplish those goals
let your employees figure out how to get there,
Do x or y as you see fit
Free-rein leaders (laissez faire)
229
Monitoring performance of the firm or individuals within the firm and making improvements when necessary
Controlling
230
Establishing clear performance standards
Measuring actual performance against standards
Taking corrective action if necessary
Steps in the control process
231
are there more skills you’d like to learn
Job enrichments
232
Focuses on maximizing the effectiveness of a workforce to boost organizational effectiveness by:
Recruiting world-class talent
Promoting career development
Determining workforce strategies
Make the org more effective by delivering workforce that meets needs of org
Recruit talent
Human Resource (HR) Management
233
Managing layoffs and outsourcing
Maintaining the link between pay and performance
Losing key talent and experience to other companies or through retirements
Managing young employees who have a sense of entitlement
Discrimination faced by women resulting in a brain drain
Offering work–life balance
Avoiding lawsuits by knowing the law and encouraging legal practices
HR Challenges
234
Examination of specific tasks that are assigned to each position, independent of who might be holding the job at any specific time
Job analysis
235
Explanation of the responsibilities for a specific position
Job description
236
Specific qualifications necessary to hold a particular position
Job specifications
237
Seeking employees who are currently within the firm to fill open positions
Internal recruitment
238
Seeking new employees from outside the firm
External recruitment
239
Tool to reject unqualified candidates, rather than to actually choose qualified candidates
Application
240
Developing a list of questions beforehand and asking the same questions in the same order to each candidate
Testing, references, and background checks
Designing appropriate job offers
Structured interviews
241
Employees who do not accept regular, full-time jobs
Contingent workers
242
Introducing employees to company culture and providing administrative information
Orientation
243
Employees beginning their jobs and learning as they go
On-the-job training
244
Beginner serves as an assistant to a fully trained worker before gaining full credentials to work in the field
Apprenticeship
245
Classroom training happens away from the job during work hours
Off-the-job training
246
Training delivered via the Web plays a crucial role in off-the-job training
Computer-based training
247
Helps current and potential executives develop the skills required to move into leadership positions
Management development
248
Formal feedback process that requires managers to give their subordinates feedback on a one-to-one basis
Performance appraisal
249
Create evaluation tools that tie directly into the company’s objectives
Coordinate the actual appraisal process
Ensure that managers are trained in providing relevant and objective feedback
HR's role in performance appraisals
250
Combination of pay and benefits that employees receive in exchange for their work
Compensation
251
: Employees receive in exchange for the number of hours or days that they work
Wages
252
Employees receive over a fixed period
Salaries
253
Health insurance, vacation, and childcare
Noncash compensation
254
Gives employees a set dollar amount that they are required to spend on company benefits
Cafeteria-style
255
Scheduling option that allows workers to choose when they start and finish their workdays, as long as they complete the required number of hours
Flextime
256
Allows employees to work a fulltime number of hours in less than the standard workweek
Compressed workweek
257
Working remotely and connecting the office via phone lines, fax machines, or broadband networks
Telecommuting
258
- Allows two or more employees to share a single full-time job
Job sharing
259
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Employees may be:
Promoted or lured to another firm
Fired
Transferred or laid off
Facing personal reasons such as family needs, retirement, or a change in career aspirations
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Reasons to leave a job
260
Prohibits discrimination in privileges of employment based on race, color, religion, sex, or national origin
Civil Rights Act of 1964, Title VII
261
Federal agency designed to regulate and enforce the provisions of Title VII
Equal Employment Opportunity Commission (EEOC)
262
Policies meant to increase employment and educational opportunities for minority groups
Groups defined by race, ethnicity, or gender
Seeks to make up for the systematic discrimination of the past by creating more opportunities in the present
Affirmative Action
263
Workplace discrimination against a person based on his or her gender
Range from requests for sexual favors to the presence of a hostile work environment
Sexual Harassment
264
Managing all the activities involved in creating value by producing goods and services and distributing them to customers
Impacts a firm’s revenues and its costs, and thus its overall profitability
Operations Management
265
Shift in focus from:
Efficiency to effectiveness
Goods to services
Mass production to mass customization
Local to global competition
Simple supply chains to complex value chains
Exploiting the environment to protecting the environment
Characteristics of a Changing Environment
266
Producing output or achieving a goal at the lowest cost
Efficiency:
267
Using resources to create value by providing customers with better goods and services
Effectiveness
268
Production of customized goods and services to precisely meet the needs of specific customers
Mass customization
269
Set of related activities that transforms inputs into outputs
Process:
270
Involves:
Determining efficient processes
Deciding the best sequence in which to arrange processes
Designing the appropriate layout of production and distribution facilities
Process selection and facility layout
271
Considering the volume of production and the degree of standardization of the product
Deciding the location of the facility
Inventory control
Project scheduling
Designing and managing value chains
Responsibilities of Operations Managers
272
assembly based on product
Product
273
Moving item along and everyone adding the value to the widget, assembly/ different types of widget manufacturing techniques are grouped together
Process
274
Everyone can do everything in their cell
Cellular-
275
teams work on it until it is finished
Fixed position-
276
Adequacy of utilities
Land and labor market conditions
Transportation and quality-of-life factors
Legal and political environment
Deciding the location of the facility
277
Stocks of goods held by organizations
Inventories:
278
): Illustrates the relationships among all the activities and identifies the sequence of activities likely to take the longest to complete
Critical path method (CPM):
279
Activities that must be completed before another activity can begin
Immediate predecessors
280
: Network of relationships that channels flow of inputs, information, and financial resources through all the processes
Directly or indirectly involved in producing goods and services and distributing them to customers
Value chain
281
Performance of processes internally that were previously performed by other organizations in a supply chain
Vertical integration
282
Arranging for other organizations to perform value chain functions that were previously performed internally
Outsourcing:
283
: Moving production or support processes to foreign countries
Offshoring:
284
Software-based approach to integrate an organization’s information flows
Enterprise resource planning (ERP):
285
Environment in which a customer and service provider interact
Servicescape
286
Servicescape design centers on three factors
Ambience
Functionality
Signs, symbols, and artifacts
Selection of capacity needs to be considered due to fluctuations in demand
287
Replacing human operation and control of machinery and equipment with some form of programmed control
Automation:
288
Reprogrammable machine that is capable of manipulating materials, tools, parts, and specialized devices to perform tasks
Robot:
289
Drawing and drafting software that enables users to create and edit blueprints
Computer-aided design (CAD)
290
Enables users to test, analyze, and optimize their designs
Computer-aided engineering (CAE):
291
Takes the electronic design for a product and creates programmed instructions that robots must follow to produce the product
Computer-aided manufacturing (CAM):
292
Combination of software used to design output and send instructions to automated equipment
To perform the steps needed to produce output
Computer-aided design and computer-aided manufacturing (CAD/CAM)
293
Combination of CAD/CAM software with flexible manufacturing systems to automate almost all steps involved in designing, testing, and producing a product
Computer-integrated manufacturing (CIM)
294
Expects everyone in an organization to take responsibility for improving quality
Emphasizes the need for a long-term commitment to continuous improvement
Total Quality Management (TQM)
295
Methods incorporated into a production process designed to eliminate or reduce errors
Poka-yokes
296
Characterized by:
Quality goals
Extensive training of employees
Long-term commitment to working on quality-related issues
Six Sigma
297
Encourages American firms to focus on quality improvement
Baldrige National Quality Program
298
Family of generic standards for quality management systems established by the International Organization for Standardization
ISO 9000 Certification
299
Emphasizes the elimination of waste in all aspects of production processes
Lean production:
300
Production system that emphasizes the production of goods to meet actual current demand
Service firm has less control over how processes are conducted while employing lean principles
Just-in-time (JIT) production:
301
Firms try to become greener by finding environmentally friendly ways to carry out processes required to produce and distribute goods and services
Goal is to achieve sustainability
Green Practices
302
Family of generic standards for environmental management established by the International Organization for Standardization
ISO 14000:
303
One of the key roles of an investment bank is to arrange for
the actual sale of the securities
304
When it comes to creating customer satisfication
percieved value is just as important as actual value
305
The marketing concept holds that
delivering unmatched value to the customers is the only effective way to achieve long term profitability
306
In the context of the marketing mix, the distribution strategy
does not includ eall the ways that marketers communicate about their products
307
The product life cycle can be dramatically different across individueal product categories and predicting the exact shape and length of the life cycle is
impossible
308
Product diffusion happens at different speeds depending on
individual consumer and the product itself
309
Technical skills
expertise in a specific functional area or department
310
Sales above the breakeven point
will generate a profit
311
Firms
can determine upfront how much money it neds to make for each item it sells
312
Maslow
healthcare plans and life insurance don't serve to satisfy the esteem needs of employees
313
constant communication
matrix organizations
