BUS 200

The flashcards below were created by user jo73 on FreezingBlue Flashcards.

  1. How do businesses seek to make a profit?
    By selling goods or services
  2. For-Profit Organizations
    Formed to make money by selling something
  3. Non-Profit Organizations
    Formed to offer products or services purpose is to further its goals
  4. Selling
    The exchange of goods for an agreed sum of money
  5. Goods are tangible and services are intangible
  6. Profit
    Amount of money a business makes after paying its expenses
  7. How do wealthy make money?
    Most are entrepreneurs
  8. Risk
    Possibility that the owner of a business may invest time and money and the business may fail
  9. Traditional factors of production
    • Natural resources
    • Capital 
    • Human resources
    • Entrepreneurship
    • Knowledge
  10. What are the forces in the business environment?
    • Economic
    • Technological
    • Competitive
    • Global
    • Social
  11. Rule 1 for business success
  12. Rule 2 for business success
  13. Rule 3 for business success
  14. Rule 4 for business success
    Common Economy
  15. Rule 5 for business success
  16. Rule 6 for business success
    Societal differences
  17. Rule 7 for business success
  18. Caroll's Social Pyramid (global corporate social responsibility pyramid)
    • Profit
    • Law 
    • Ethics
    • Citizenship
  19. Both illegal and unethical
    • Embezzlement 
    • consumer fraud
    • Sexual Harrassment
    • Cash payments to avoid taxes
  20. Legal but unethical
    • Making sleazy products
    • Canceling company retirement plan
    • Avoiding taxes on US revenues by using offshore banks
  21. Ethical but illegal
    • Paying more despite union contract limits
    • Selling raw milk for human consumption
  22. Legal and Ethical
    • Green businesses
    • Consumer friendly behavior 
    • Employee fringe benefits
    • Community contributions
  23. Values
    Underlying beliefs that determine human behavior
  24. Ethics and Laws
    Standards of right and wrong
  25. Corporate Social responsibility
    Benefiting Society as well as the organization
  26. Top managers strongly support an ethical climate
  27. Sarbanes Oxley
    • Protects whistleblowers
    • Provides specific requirements for CEO CFO
  28. What are the two views on social responsibility?
    • Companies are part of society
    • Problem based
    • Resources based
    • Positive public image
    • Companies are set up just to make profit
  29. Corporate Policy
    Positions on political and social issues
  30. Community Activities
    Sponsorship, fund raising, donations and other support
  31. Cause-Related Marketing
    Supporting worthy causes
  32. Social Entrepreneurship
    leveraging business for social change
  33. What are negative Effects of being bad?
    • High costs of employer fraud
    • Diminished stock price and sales growth
    • Damaging lawsuits
  34. What are positive effects of being good?
    Benefiting customers, owners, employees, suppliers, local and national community, and international community
  35. Economics
    Studies production, distribution and consumption of scarce goods and services
  36. The economic system has a large impact on businesses and their ability to operate
  37. What is part of the free-market system?
  38. Macroeconomics
    Study of large economic units and focuses on things such as GDP job growth and unemployment, CPI, and political factors
  39. Resource development
    • Natural resources
    • Capital 
    • Human resources
    • Entrepreneurship
    • knowledge
  40. Three main types of economies
    • Command Economies
    • Free-Market Economies
    • Mixed Economies
  41. Three major indicators of economy
    GDP, Price-Changes Indexes, Unemployment Rate
  42. How companies enter foreign Markets. Low risk to high risk
    • Importing and exporting
    • Franchising
    • Global outsourcing
    • Joint venture
    • Foreign subsidiaries
  43. Import Quotas
    Limits on how many products are allowed in
  44. Embargoes
    bans on certain import or export products
  45. Organizing Facilitating International Trade
    • The World Trade Organization
    • The World Bank
    • The International Monetary Fund
  46. Management Skills
    Technical skills, Human skills, Conceptual skills
  47. Technical Skills
    The ability to perform a specific job
  48. Human Skills
    The ability to interact well with people
  49. Conceptual skills
    The ability to think analytically
  50. SWOT analysis
    • Internal Strengths
    • Internal Weaknesses
    • External Opportunities
    • External Threats
  51. Strategic Planning Evolves
    • Have an action plan
    • research/environmental scan
    • Mission values
    • SWOT analysis
    • Strategic directions
  52. Strategic Planning
    • Done by top managers
    • they look at how they can achieve long term goals with the resource they have
    • 1-5 years
  53. Tactical Planning
    • Done by middle managers
    • They are looking at what contributions their groups can make with their existing resources to meet the strategic goals of the organization.  
    • 6-24 months
  54. Operational Planning
    • Done by supervisory managers
    • They look at how to accomplish specific tasks with existing resources
    • 1-52 weeks
  55. Four benefits of planning
    • Dealing with uncertainty
    • Thinking ahead
    • Coordinating activities
    • Evaluate progress
  56. Vision
    What you want to become
  57. Mission
    Fundamental Purposes
  58. Decision Making
    • Identify problem
    • Dream up possible solutions
    • Weigh alternative solutions and select one
    • Implement the solution, then evaluate it
  59. What happens with existing products and existing markets?
    • Market penetration strategy
    • Seek to increase sales of existing products to existing markets
  60. What happens with existing Markets and new products?
    • Product development strategy
    • Create growth by selling new products in existing markets
  61. What happens with a new market and existing products?
    • Market development strategy
    • Introduce existing products to new markets
  62. What happens with new markets an new products?
    • Diversification strategy
    • emphasize both new products and new markets to emphasize growth
  63. Four functions of management
    • Planning
    • Organizing
    • Leading
    • Controlling
  64. Planning (management)
    set goals and decide how to achieve them
  65. Organizing (management)
    arrange tasks, people, and other resources to accomplish the work
  66. Leading (management)
    motivate people to work hard to achieve companies goals
  67. Controlling (management)
    monitor performance, compare it with goals and take corrective action if needed
  68. Effectiveness
    realizing goals
  69. Efficiency
    means of realizing goals
  70. Why small businesses fail
    • Inadequate management skills
    • lack of finances
    • difficulty hiring and keeping good employees
    • aggressive competition
    • government paperwork
  71. Why write a business plan?
    Help you get financing, think through different details, and plan for success
  72. Buying business reduces uncertainty and generates profits quickly
  73. Contributions of small businesses
    • Employment
    • innovation
  74. Business Improve quality of life and Raise the standard of living
  75. How do businesses help society?
    • Producing goods and services
    • Providing paychecks and benefits
    • Paying Taxes
    • Donating Funds and goods to charity
  76. What undergirds ethical and legal systems?
  77. Corporate Social Responsibility is synonymous with corporate citizenship
  78. Ethical Dilemma
    Situation in which people have to decide whether to pursue a course of action that may benefit them or their organization, but that is unethical or even illegal.
  79. In business, a
    frequent source of ethical dilemmas is the conflict between the competing
    demands to make money yet also be fair and honest in business relationships.
  80. Ethics Officer
    Integrates the organization's ethics and values initiatives, compliance activities, and business conduct practices into the company's decision-making processes
  81. Compliance based ethics code
    attempt to prevent criminal misconduct by increasing control and by punishing violators
  82. Integrity-based ethics code
    Creates an environment that supports ethically desirable behavior
  83. When utilizing the CSR approach that looks at both social and economic outcomes, it
    is hard to measure success beyond using profits so they use social audit
  84. Social Audit
    • A social audit is a
    • systematic assessment of a company’s performance in implementing
    • socially responsible programs, often based on predefined goals
  85. Social entrepreneurship
    • is defined as innovative, social value–creating activity that can occur within or
    • across for-profit or nonprofit sectors
  86. Globalization- development of two opposite kinds of international business huge firms and quick internet small firms
  87. Some barriers to international trade are tariffs or taxes on imported goods which
    increase the price and thereby decrease demand for the product.
  88. Departmentalization
    • dividing up of an organization into smaller units, or departments, to facilitate management. 
    • four arrangements
    • functional, division, hybrid, and matrix
  89. Process divisions (chart)
    Group by work specialization
  90. Product divisions (chart)
    Grouping by similar products or services
  91. Industry divisions (chart)
    conglomerate structures
  92. conglomerate structure
    groups divisions around similar businesses or industries
  93. Six basic structural characteristics of an organization
    • authority, accountability, and responsibility
    • division of labor
    • heiarchy of authority 
    • span of control
    • delegation 
    • centralization verses decentralization of authority
  94. Authority
    the legitimacy an organization confers on managers in their power to make decisions, give orders, and utilize resources. Authority has to do not with a manager’s personality but with his or her defined place in the organization. With authority goes accountability and responsibility.
  95. Accountability
    Reporting and justifying results to superiors
  96. Responsibility
    an obligations to perform the tasks assigned to you
  97. Organizational culture, sometimes called corporate culture, consists of the shared beliefs and values that develop within an organization
    and guide the behavior of its members.
  98. corporate culture communicated through
    • heroes 
    • stories
    • symbols
    • rites and rituals
  99. hero
    person whose accomplishments embodies the value of the organization
  100. story
    narrative based on true events which is repeated to emphasize a particular value
  101. How culture can influence organization
    • first is to help them understand goals 
    • also helps sense of organizational identity
    • there is a collective commitment to the goals of the organization
    • social system stability is where people feel they are a part of the system
  102. Steps to control process
    • establish standards
    • monitor performance
    • compare performance against standards
    • take corrective action if needed
  103. Results of globalization
    • ¤ Development
    • of the global workplace and electronic commerce

    • ¤ Consolidation
    • of many national markets into one big world market

    • ¤ Development
    • of two opposite kinds of international business: huge firms and quick,
    • Internet-enabled small firms.
  104. Top managers
    • highest level of management
    • make long term decisions
  105. supervisory managers
    make short term operating decisions
  106. How to Keep a Small Business Healthy
    Staying in business means constantly staying on your toes. Some suggestions are:

    Keep Good Records & Know When to Ask for Help

    Stay in Tune with Your Customers

    Learn How to Manage Employees
  107. Economies
    of Scale—the
    savings realized from buying materials or manufacturing products in large
  108. small business is defined by the U.S. government
    as a business that is (a) independently owned and operated, (b) is not dominant
    in its field of operation, and meets certain criteria set by the SBA for (c)
    number of employees and (d) annual sales revenue.
  109. business plan
    a document that outlines a proposed firm’s goals, methods for achieving them, and standards for measuring success
  110. business model
    the need the firm will fill, the operations of the business, its components and functions, as well as its expected revenues and expenses. basic idea behind the business
Card Set:
BUS 200
2014-10-03 07:13:45
Show Answers: