RCC Business - Chapter 1 Quiz Review

Business

a profit-seeking organization that provides goods and services designed to satisfy customers’ needs

Revenue

Money 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

Money left over after all the costs involved in doing business have been deducted from revenue

competitive advantage

Businesses can choose which customers they want to focus on and and how they want to compete be it on price, availability, features, prestige, or other factors

moral hazard

irresponsible and unethical decision making

social environment

companies are affected by things like population trends, changing consumer lifestyles, evolving cultural values and attitudes, changes in education, and even fashion or popular culture

Technological Environment

The practical application of science to innovations, products, and processes

Potential to alter internal processes or create/destroy entire markets

Consumers expect businesses to utilize and adapt to new changes to technology

Economic Environment

Affect the cost and availability of goods, services, and labor

Shape the behavior of buyers and sellers

Reacting to changes in the economy requires a mix of short-term and long-term thinking on the part of managers

Legal and Regulatory Environment

The sum of the laws and regulations at local, state, national, and international levels that govern what businesses can and cannot do

Utility Companies, Banking, Healthcare, Airlines - heavily regulated

Consultants, Private Education, Graphic Design - little government regulation

Market Environment

Encompasses all of the markets the company operates within

Target customers

Buying influences of those customers

Competitors

Striving to Excel 

Be good at what you do and never stop improving

Take on new responsibilities and climb to new positions

Being Dependable and Accountable

Meet your commitments, stay on schedule, stay within budget

Never over-promise and under-perform

Own up to mistakes and learn from failure

Being a Team Player

Pull your own weight but make sure the team succeeds

Be loyal to your organization (If they have earned it)

Communicating Effectively

Listen actively

Provide practical information

Give facts rather than impressions

Don’t present opinions as facts

Communicate concisely and efficiently

Offer compelling, persuasive arguments and recommendations

Demonstrating Etiquette

Knowing the expected norms and behavior in any particular situation

Always conduct yourself with respect, courtesy, and common sense

Making Ethical Decisions and Maintaining a Positive Outlook

Conduct yourself with a clear sense of right and wrong

Successful people tend to be optimistic and believe in what they are doing

Personal demeanor is a vital element of workplace harmony

Operations Manager / General Manager

includes areas of engineering, assembly, testing, scheduling, QA, IT, forecasting, etc.

Technical acumen is always required

Work can be stressful as demand fluctuates and when there are supply problems

Goal setting, planning, scheduling, assigning work, ensuring tasks are completed

Human Resources Specialist

Direct personnel-related activities (recruiting, training, compensation/benefits)

Responsible for health and safety and managing employee records

Accommodate the firm’s strategy and motivate and manage a diverse workforce

Becoming a more tactical role to attract and keep the best talent

Information Technology Manager

Large companies may have a CIO (Chief Information Officer)

Design, implement, and maintain systems to deliver crucial information

Requires a degree in a technical field plus and understanding of business processes

Marketing Specialist

Identify and understand market opportunities 

Develop branding strategy, e-commerce, advertising, PR, social media

Can be in-house for larger companies while smaller companies would engage the services of an advertising agency or public relations firm

Sales Professional / Managers 

Building relationships with customers and help them make purchase decisions

Retail sales is just a small part of the sales world

Enjoy day-to-day freedom in scheduling

Stress can be high due to meeting quotas and potentially working for commission

Accountant

Responsible for collecting, analyzing, and reporting on financial matters

Analyze budgets, assess manufacturing costs, prepare state and federal taxes

Internal auditors verify a company’s accounting efforts

Public accountants offer accounting, tax prep, and investment advice

Forensic accountants investigate financial crimes

Accuracy, timeliness, communication skills, and computer skills are critical

Financial Manager (Controllers and Treasurers)

Also known as controllers who prepare income statements, balance sheets, reports

Treasurers have a more strategic role in establishing financial goals, budgets, investing, and raising capital

Financial managers are usually in-house as their work requires a broad understanding of the company