BUSN 200.txt

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BUSN 200.txt
2011-10-19 16:45:44

Business 200 Flashcards up to midterm
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  1. Factors of Production
    Resources used by firms to create goods & services

    • Natural resources
    • Labour
    • Capital
    • Info resources
    • Entrepreneurs
  2. Economic systems
    • Command
    • Market
    • Mixed
  3. Perfect competition
    Many sellers, easy to enter the industry
  4. Monopolistic competition
    Many sellers, products seem different (brands, features)
  5. Oligopoly
    Few, large sellers. Tough to enter industry - large capital input needed
  6. Monopoly
    Only 1 producer, has complete control over product market
  7. Core principles & values
  8. Organization Objectives
    Change infrequently
  9. Strategies & practices
    Revised frequently
  10. Stakeholders
    • Customers
    • Employees
    • Investers
    • Suppliers
    • Local communities
  11. Corporate Social Responsibility
    Way a business tries to balance its commitments to organizational stakeholders

    • Obstructionist
    • Defensive - managerial capitalism
    • Accomadative
    • Proactive
  12. Social Audit
    Systematic review of how a firm is using funds earmarked for social responsibility goals and how effective those expenditures have been
  13. Trade deficit
    Imports > Exports
  14. Trade surplus
    Exports > Imports
  15. Absolute Advantage
    Country produces something better/ more cheaply than any other country

    (Between countries)
  16. Comparative Advantage
    Country produces some products more cheaply than others

    (Within a country)
  17. International Competitiveness
    Ability of a country to generate more wealth than other countries
  18. Small Business
    Owner managed, usually less than 100 customers
  19. New venture
    Open less than 12 months
  20. Entrepreneurship
    Process of identifying an opportunity in the marketplace & capitalizing on it
  21. Entrepreneur
    Recognizes & seizes opportunities

    *is the 1 who takes the risk*
  22. Intrapreneur
    Create something new in an existing large organization

    *less risk involved*
  23. Bootstrapping
    Doing more with less, ideally using others' resources
  24. Financial resource types:
    • Debt - borrowed, requires collateral
    • Equity - venture capitalists and private investors who take an ownership interest in the business
  25. Small business start-up options
    • Buy an existing business
    • Take over family business
    • Buy a franchise
  26. Buying a business pros
    • Established clientele & suppliers
    • Ease of financing
    • Less risk
  27. Buying a business cons
    • Possible skeletons in closet
    • Location predetermined
    • Possible poor repution
    • May need to change pricing structure
  28. Taking over family business pros
    • Established clientele & suppliers
    • Ease of financing
    • Less risk
  29. Taking over family business cons
    • Ongoing management issues
    • Emotional ties
    • Tough to pick successor
  30. Franchise pros
    • Name recognition
    • Shared ad costs
    • Training provided
    • Keep most of the profits
  31. Franchise cons
    • Need to pay franchise licence fee
    • Pay royalties on sales
    • Pay advertising fees
    • Have to buy from set suppliers (may not be best deal)
    • Relinquish control of some business aspects
  32. General partnerships
    Both partcipate in day-to-day management and have full liability
  33. Limited partnership
    • Pays to get into practice and has specialized role
    • Liability is only what they invested into it
  34. Corporations
    • Have limited liability
    • Costs more to set up
    • Complex

    *is an artificial entity*
  35. Public corporation
    Trades on the stock exchange
  36. Coop(erative)
    Dividends depend on your usage of the company
  37. Small business failure reasons
    • Poor management skills
    • Inadequate marketing
    • Inadequate financial capabilities
    • Inadequate production
    • Personal reasons
    • Disasters
  38. Management goals
    • Plan
    • Organize
    • Direct (Lead)
    • Control
  39. Levels of management
    • Top - responsible for overall firm performance
    • Middle - implement decisions of top managers
    • First line - supervise employees
  40. Areas of management
    • Marketing
    • Financial
    • Operations
    • Info
  41. Basic management skills
    • Technical *first-line*
    • HR
    • Time management
    • Decision making
    • Conceptual *top*
  42. Time management
    Productive use of time

    Paperwork, meetings, telephone & email are main time wasters
  43. Decision making skills
    • Recognize & define problem
    • Identify alternatives
    • Evaluate them
    • Select best alternative
    • Implement it
    • Evaluate results
  44. Types of goals
    • Long term: 5+ years
    • Intermediate: 1-5 years
    • Short term: less than 1 yr
  45. Mission statement
    • How an organization will achieve its purpose
    • Includes core values & ethical commitments
  46. SWOT
    • Internal:
    • Strengths
    • Weaknesses

    • External:
    • Opportunities
    • Threats
  47. Corporate Level Strategies
    • Concentration
    • Growth
    • Integration
    • Diversification
    • Investment Reduction
  48. Business Level Strategies
    • Cost Leadership
    • Differentiation - stand out
    • Focus
    • Functional Strategy -integration
  49. Contingency planning
    Identify in advance changes that may occur and ways the company can respond
  50. Crisis management
    Methods for dealing with emergencies
  51. Cultural Change
    An inevitable process as management formulates vision of new company and creates new systems of appraisal & compensation
  52. Basis' of Departmental Structure
    • Customer
    • Product
    • Geographic
    • Process
    • Functional (eg. marketing, accounting, finance, operations)
  53. Efficiency
    Minimum input gives maximum output
  54. Centralization
    Top managers reserve most of the decision making rights for themselves
  55. Decentralization
    Lower & middle managers have some discretion in making decisions on their own
  56. Tall Organization
    Many layers of management, more centalized
  57. Too many layers -> rigidity & bureauocracy
  58. Flat Organization
    Few layers of management

    Too few layers -> chaos & inefficiency
  59. Span of Control
    # of subordinates a manager controls

    Can be wide (many subordinates) or narrow (few subordinates)
  60. Informal Organization
    Network of social interactions & relationships among employeees

    Includes informal groups & organizational grapevine
  61. Time Utility
    When product is available
  62. Place Utility
    Where product is available
  63. Ownership Utility
    Consumption or use of a product
  64. Form Utility
    Form of a production
  65. Analytic Process
    Resources are broken down in production process
  66. Synthetic Process
    Resources are combined in the production process
  67. Low Contact System
    Customers do not need to be physically present to receive the service
  68. High Contact System
    Customers need to be physically present
  69. Capacity Planning
    Amount of a product a firm can produce under normal conditions

    Should slightly exceed normal demand to accomodate seasonal changes & peak times
  70. GANTT & PERT Charts
    Scheduling scenarios for projects

    PERT shows best pathway
  71. Productivity
    Ratio of outputs to inputs
  72. Labour Productivity
    GDP / # of workers

    Can be compared across firms, industries, & countries
  73. Total Quality Management (TQM)
    All activities & parts of the business
  74. Quality Assurance Tools
    • Value Added Analysis
    • Quality/Cost Studies
    • Benchmarking
    • Statistical Processs Control (control charts)
    • Quality Improvement Teams
    • Getting Closer to the Customer
  75. Benchmarking
    Compares the quality of a firm's output with the quality of the output of the industry's leader

    Can compare internally or externally
  76. Trends in Productivity
    • ISO9000 & ISO14000
    • Re-engineering
    • Adding value through supply chains
  77. Service Quality Criteria
    • Reliability
    • Responsiveness
    • Assurance
    • Empathy
    • Tangibles
  78. Consumerism
    Social movement that seeks to protect & expand the rights of consumers in their dealings with businesses
  79. Rights of consumers
    • Right to safe products
    • Right to be informed about all relevant aspects
    • Rigt to be heard
    • Right to choose what to buy
    • Right to be educated about purposes
    • Right to courteous service
  80. Triple Bottom Line Reporting
    Measures social, environmental & economic performance of a company
  81. National Competitive Advantage
    • Factor conditions - factors of production
    • Demand conditions
    • Related & supporting industries
    • Strategies, structures & rivalries
  82. Balance of Payments
    Difference between money flowing into & out of a country as a result of trade & other transactions
  83. Independent Agent
    Foreign individual or organization who agrees to represent an exporter's interests in foreign markets
  84. Licensing Agreement
    Arrangement by an owner of a process/product to allow another business to produce/disrribute/market it for a fee/royalty
  85. Branch Office
    Location an exporting firm establishes in a foeign country to sell its products more effectively
  86. Foreign Direct Investment (FDI)
    Buying/establishing tangible assets in another country
  87. Business Practice Laws
    Law or regulation passed by host countries to regulate business practices within their jurisdictions
  88. World Trade Organization
    Sucessor to GATT in 1995
  89. Organizational Structure
    Specification of jobs to be done within a business & how those jobs relate to one another
  90. Organization Chart
    Illustrates the company's structure & show employees where they fit into the firm's operations
  91. Profit Centre
    Separate company unit responsible for its own costs & profits
  92. Matrix Organization
    Variation of project structure in which the project manager & regular line managers share authority
  93. Learning Organization
    Works to integrate continuous improvement with continuous employee learning & development
  94. Team Organization
    Relies almost exclusively on project type teams, with little or no underlying functiinal hierarchy
  95. Operations Capability
    Activity or process that production must do especially well with high proficiency
  96. Process Layout
    Equipment & people are grouped together according to their function
  97. Cellular Layout
    Used to produce goods when families of products can follow similar flow paths
  98. Product Layout
    Equipment & people are set up to produce only 1 specific type of good
  99. U Shaped Production Lines
    Machines are in a U Shape to increase flexibility (can utilize more or less workers)
  100. Flexible Manufacturing System
    Allows a single factory to produce small batches of different goods on the same production line
  101. Soft Manufacturing
    Reducing huge FMS operations to smaller, more manageable groups of machines
  102. Control Chart
    Results of test sampling of a product are plotted on a diagram that reveals when the process is starting to depart from normal operating conditions
  103. Exchange Rates and Balance of Trade
    When currency value declines balance of trade should improve & vice versa
  104. Production Planning Sequence
    • Business plan
    • Long-range plan
    • Operations schedules
    • Operations control
    • Output to customers
  105. Fishbone Diagram
    Helps teams of employees investigate & track down causes of quality problems in their work
  106. Deciding to go Int'l
    • International demand for product
    • Modified to fit a foreign market
    • Foreign business climate is suited to imports
    • Firm has necessary skills & knowledge to do business abroad