MGMT Flashcards by Charlotte Machan

What is a pure monopoly?

Only one firm in the entire industry
Firm has major power to set prices
High barriers to entry

A pure monopoly exists when a single firm dominates the market.

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What characterizes monopolistic competition**?

Many firms in the industry
Low barriers to entry
Each firm has limited power to influence price
Firms differentiate their products to gain some pricing power

Example: restaurants differ in food type, quality, service.

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Despite the similar name, monopolistic competition is not a _______.

monopoly

Product differentiation gives firms some control over price, but competition keeps this limited.

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List the benefits of studying business.

Helps you choose a career
Improves your career opportunities
Makes you a better-informed consumer and investor
Helps you become a more influential community member
Can lead to more fulfilling jobs, higher income, and stronger communities

Understanding business principles is essential for personal and professional growth.

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What are the business contributions to society?

Provide valuable products and services
Create employment
Improve quality of life
Must balance profit goals with social responsibility

Businesses play a crucial role in societal development.

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What are the five environmental factors that firms should monitor?

Economic
Technological
Sociocultural
Competitive
Legal

Monitoring these factors helps create effective management, marketing, and financial strategies.

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True or false: Economic freedom influences your ability to earn income and build wealth.

TRUE

Economic freedom affects consumer choices and prices.

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What are the three primary components of business ethics?

Legality
Ethical standards
Responsibility

These components help evaluate the moral implications of business decisions.

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List the benefits of international trade.

More jobs and income
Access to more resources
Lower prices and more choices for consumers
More efficient global use of resources

International trade enhances economic growth and consumer welfare.

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What do currency rate changes affect?

Prices of imported/exported goods
Trade volume
Employment
Inflation
Consumer choices

Currency fluctuations can significantly impact the economy.

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What are the primary goals of the WTO, IMF, and World Bank?

WTO: promote free trade, settle disputes
IMF: stabilize economies, support exchange-rate stability, crisis lending
World Bank: fund development projects, reduce poverty

These organizations aim to foster global economic stability.

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What are the four guidelines for ethical decisions?

Is it legal?
Is it fair?
How will it impact stakeholders?
How would I feel if it became public?

These guidelines help navigate complex ethical dilemmas in business.

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What are the four basic consumer rights?

Right to safety
Right to be informed
Right to choose
Right to be heard

These rights protect consumers in the marketplace.

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What are the phases of HRM?

Acquisition
Development
Maintenance

These phases encompass the entire employee lifecycle in an organization.

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List the advantages of workplace diversity.

Greater creativity and innovation
Better understanding of diverse customers/markets
Improved teamwork, morale, and problem-solving

Diversity enhances organizational performance and adaptability.

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What are the three main ownership structures in business?

Sole proprietorship
Partnership
Corporation

Each structure has distinct legal and financial implications.

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What are the five major objectives of unionization?

Better wages
Improved working conditions
Job security
Fair treatment and protection from unfair management practices
Representation in disputes and negotiations

Unions advocate for workers’ rights and interests.

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What are the four components of the marketing mix (4 Ps)?

Product
Price
Promotion
Placement (distribution)

These elements are crucial for developing effective marketing strategies.

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What are the three influences on the consumer decision process?

Situational factors
Psychological factors
Social factors

Understanding these influences helps marketers tailor their strategies.

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What are the four stages of the Product Life Cycle (PLC)?

Introduction
Growth
Maturity
Decline

Each stage presents different challenges and opportunities for businesses.

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What is a campaign in marketing?

Coordinated use of advertising
Personal selling
Sales promotion
PR

Designed to achieve specific marketing goals.

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What are the types of product innovation?

Incremental innovation
Radical/Revolutionary innovation
Disruptive innovation

Incremental innovation enhances existing products, while radical innovation creates new products and disruptive innovation modifies existing products dramatically.

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What are the four stages of the Product Life Cycle (PLC)?

Study These Flashcards

Introduction
Growth
Maturity
Decline

Each stage has distinct revenue and profit patterns.

What are some reasons for changing the product mix?

Study These Flashcards

Respond to changing consumer needs
Stay competitive
Take advantage of new technology
Improve profitability
Eliminate outdated items
Expand into new markets

These reasons help businesses adapt and thrive in the market.

Name some **online marketing tactics**.

* Search engine optimization (SEO) * Content marketing * Social media marketing * Email marketing * Online advertising * Influencer partnerships * E-commerce * Affiliate marketing * Retargeting ads ## Footnote These tactics are essential for effective online marketing strategies.

What are the **three considerations for adapting to mobile devices**?

* Mobile-friendly design * Mobile-specific features * User behaviour differences ## Footnote These considerations ensure effective engagement with mobile users.

What does **innovation** transform in business?

* How consumers live * How businesses operate * New products * New business models * New ways of working ## Footnote Innovation drives significant changes across various aspects of business.

What are the **inputs** in the production process?

* Raw materials * Labour * Capital * Equipment * Information ## Footnote These inputs are transformed into outputs through the production process.

What are the **differences between goods and services** in operations management?

* Goods: tangible, produced then stored * Services: intangible, produced & consumed simultaneously ## Footnote Goods are easier to control for quality, while services are often customized and labor-intensive.

What is the role of **supply chain management (SCM)**?

* Coordinates suppliers * Production * Distribution * Reduces production time * Keeps inventory optimal * Improves customer satisfaction ## Footnote SCM is crucial for efficient operations and customer service.

What are the **primary distribution channels**?

* Direct: producer → customer * Retail: producer → retailer → customer * Two-step: producer → wholesaler → retailer → customer * Agent channel: producer → agent → wholesaler → retailer → customer ## Footnote These channels define how products reach consumers.

What are the **three key considerations when setting price**?

* Your costs * What customers are willing to pay * Competitor pricing ## Footnote These factors are essential for effective pricing strategies.

What is the **break-even point** formula?

Fixed Costs ÷ (Price – Variable Cost per unit) ## Footnote This formula shows how many units must be sold to cover all costs.

What are the **three key financial statements**?

* Balance sheet * Income statement * Statement of cash flows ## Footnote These statements provide essential insights into a company's financial health.

What is the difference between **financial accounting** and **managerial accounting**?

* Financial accounting: external users, historical statements * Managerial accounting: internal users, future-oriented ## Footnote Financial accounting follows strict rules (GAAP/IFRS), while managerial accounting focuses on budgets and forecasts.

What are the effects of **money supply** changes?

* Increase → stimulates growth, may cause inflation * Decrease → slows economy, reduces inflation ## Footnote Changes in money supply have significant impacts on economic conditions.

What tools does the **Bank of Canada** use?

* Adjusts interest rates * Open-market operations * Sets reserve requirements ## Footnote These tools help manage the money supply and economic stability.

What is the purpose of **deposit insurance (CDIC)**?

* Protects deposits up to $100,000 per account category * Reduces risk for consumers if a bank fails ## Footnote This insurance provides security for depositors.

What are the **three primary types of budgets**?

* Operating budget * Capital budget * Cash budget ## Footnote Each budget serves a different purpose in financial management.

What are the **five considerations when choosing financing**?

* Cost of financing * Impact on ownership/control * Repayment terms * Risk level * Flexibility ## Footnote These considerations help businesses make informed financing decisions.

What is the difference between **debt financing** and **equity financing**?

* Debt financing: must be repaid, no ownership loss * Equity financing: sell ownership, no repayment required ## Footnote Each type of financing has different implications for ownership and financial obligations.

What are the **four factors influencing investment choices**?

* Investment horizon * Risk tolerance * Liquidity needs * Asset allocation goals ## Footnote These factors guide investors in making suitable investment decisions.

What is the formula for calculating **rate of return**?

(Gain or Loss) ÷ (Original Investment) ## Footnote This formula helps investors assess the performance of their investments.

If Brazil, Argentina, Colombia, Peru, and Chile decided to form the South American Union to increase trade with one another, this would exemplify which of the following?

Economic community

If the Chinese government wished to increase the amount of Canadian beef that is allowed to be imported into China, which of the following would it enact?

An increase in quota

Josh lost his job after 20 years as a successful marketing specialist. Because Josh has a strong internal drive, he opened a marketing consulting firm and ended up making more money than he did as an employee. This is an example of which factor contributing to high levels of entrepreneurship?

Downsizing and outsourcing

Lin has successfully launched his wireless speaker business, which is growing quickly. He would like to expand into overseas markets but was told by several banks that this idea was too risky. That may be fine, though, because, in addition to funding Lin would also like technical advice to help grow the business. What type of funding would best fit Lin’s situation and needs?

Angel investor

Air Canada is completing a SWOT analysis as part of its yearly strategic planning process. It finds out from factory managers that the machinists are threatening to go on strike if wages and benefits aren’t increased soon. Until then, the machinists are threatening a work slowdown. This labour dissention would be classified as which of the following for the company?

Weakness

A manufacturing firm produces fire extinguishers at a high volume and low cost for export to markets all over the world. It must maintain precise processes throughout the organization. How would this organization likely prioritize for efficiency and control?

High efficiency, high control

Johnson & Johnson has a Consumer group, a Professional group, a Pharmaceutical group, and an Industrial group. Johnson & Johnson has which form of departmentalization?

Customer

In the first set of Hawthorne experiments dealing with lighting, what was the main conclusion?

Employees work harder when they receive added attention

Assume that after the last round of performance appraisals, managers across all departments at Hudson’s Bay realized that their newest employees did not meet standards on customer satisfaction scores. As a result, the company created a series of training modules that specifically addressed how to provide exceptional customer service at Hudson’s Bay. Creating the training modules is an example of using performance appraisals to accomplish which of the following objectives?

Assessing HRM practices

For Minute Maid's new line of juice drinks to be successful, the company developed a promotion mix to reach a wide audience. The most effective promotion mix for reaching a wide audience would include advertising and which of the following?

Sales promotion

In which stage in the development of new products are ideas that match company objectives analyzed as to whether the firm has the required expertise for the product’s development and marketing?

Product analysis

A department store interacts with consumers by uploading a pin on Pinterest that shares how to choose jeans that will elongate your legs. This is an example of which online marketing tactic?

Social media marketing

MGMT Flashcards

(55 cards)