Exam (elaborations)
MIE 201 Test #1 – Makanui – Q’s and A’s
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MIE 201 Test #1 – Makanui – Q’s and A’s
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MIE 201 Test #1 – Makanui – Q’s and A’sEnvironments of Business - -- economic
- market
- technological
- social
- legal and regulatory
-market environment - -- a company's target customers, the buying
influences that shape the behavior of those customers, and competitors that
market similar products to those customers
-economic environment - -- conditions and forces that affect the cost and
availability of goods, services, and labor and thereby shape the behavior of
buyers and sellers
- influences almost every decision a business makes
-technological environment - -- forces resulting from the practical
application of science to innovations, products, and processes
- changes have the ability to change every facet of business
-disruptive technologies - -- those that fundamentally change the nature of
an industry
- can be powerful enough to create or destroy entire companies
ex: music recording and playing devices changed the music industry
-social environment - -- population trends, social values and behaviors,
relationship of society and business AT LARGE (large scale)
-stakeholders - -- internal and external groups affected by a company's
decisions and activities
-legal and regulatory environment - -- laws and regulations that restrain,
support, and protect businesses at local, state, national, and international
levels
(some industries are heavily regulated ex: electricity)
-business - -- any profit-seeking organization that provides goods and
services designed to satisfy customers' needs
-not-for-profit organizations - -- organizations whose primary objective is to
provide goods and services to society without the goal of making a profit
- also have to bring in revenue in order to satisfy their stakeholders' needs
, -what is the driving force behind most businesses? - -- the prospects of
earning profit and building assets
-what are assets? - -- can be defined as anything owned by the company
that can be of meaningful value (from patents and brand names to real
estate and company stock).
-goods-producing businesses - -- create value by making things most of
which are tangible
- tend to be capital intensive
-service businesses - -- create value by performing activities that deliver
some benefit to customers
- tend to be labor intensive
-revenue - -- money that a company brings in through the sale of goods and
services
-business model - -- a concise description of how a business intends to
generate revenue
-profit - -- the amount of money left over after expenses (all the costs
involved in doing business) have been deducted from the revenue
-expenses - -- all the costs of doing business that are necessary to earn
revenue
-competitive advantage - -- some aspect of a product or company that
makes it more appealing to its target customers
-risk and reward relationship - -- fundamental to modern day economies
- a company needs some promise of reward before it is willing to take the
risks involved in creating/selling products
- risks are attached directly to decisions so bad decision = company suffers
-barrier to entry - -- any resource or capability of a company must have
before it can start competing in a given market (large sum of money,
equipment, land, etc.)
-business mindset - -- a view of business that considers the myriad
decisions that must be made and the many problems that must be overcome
before companies can deliver the products that satisfy customer needs
-what to consider using the business mindset? - -- functionality of products?
- marketing of products?
- image of company?
, - price of products?
- availability / where to sell product through?
- services?
-relationship b/w business and society - -- weighing the positive and
negative effects
- businesses can benefit communities and nations in multiple ways but they
can also negatively impact society it just depends
-major functional areas in a business enterprise - -- research and
development
- information technology
- manufacturing / production / operations
- marketing and sales
- finance and accounting
- human resources
- business services
-research and development (R&D) - -- functional area responsible for
conceiving and designing new products
- sometimes known as product design or engineering
- essential for survival b/c it provides the ideas and designs that allow
business firms to meet customer needs in competitive markets
-information technology (IT) - -- systems that promote communication and
information usage through the company or that allow companies to offer new
services to their customers
-manufacturing, production, or operations (operations managers) - -- an
area where the company makes whatever it makes (for goods-producing
businesses) or does whatever it does (for service businesses)
- responsible for purchasing, logistics, facilities management
-marketing and sales - -- charged with identifying opportunities in the
marketplace
- working with R&D to develop the products to address those opportunities
- creating branding and advertising strategies to communicate with potential
customers, and setting prices
- sales and marketing might not be aligned in some businesses
- 3 functions (sales/distribution/customer support)
-what are the three functions of marketing and sales? - -- sales function
- distribution function
- customer support function
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