BM Unit 1

Test 2/28

Standard of living

How well we live

Employment generates

income and investments

Labor market

The supply and demand of jobs

• number of different jobs available

• who is obtaining jobs and who is not

• jobs being created

Bureau of Labor Statistics

The agency that collects and processes a large amount of labor market data.The government uses this data to create economic policies and make important decisions.

Labor Force

1. Anyone at least 16 years old

2. Has a job (employed)

3. Actively looking for a job.

Discouraged workers

1.Those who have given up looking for work (discouraged)

2. Retired

3. Disabled and not working

Unemployment rate

Economists use the unemployment rate to determine the number of people who can’t find a job. The percentage of people that are in the labor force who want to work but can’t find a job.

Low unemployment rate

1. 3%-6%

2. more jobs

3. better wages

4. stronger economy

High Unemployment rate

1. fewer jobs

2. weak economy

3. lower wages

Cyclical unemployment

Anytime there is a direct link between a downturn in the economy and an increase in unemployment.

Seasonal unemployment

When a certain job is needed during a particular time but not during other times of the year. During these times, the unemployment rate is higher (e.g. construction, retail, landscaping)

Frictional unemployment

When people change jobs or are looking for their first job. There is always this unemployment in the job market.

Structual unemployment

When people become unemployed because they lack certain skills or education.

Revenue

How much money you make. You can have a lot of revenue but no profit.

Profit

Money after bills are pad. What you take home

Stakeholders

Anyone having connection to the company (consumers, employees, management)

Production

Making a product or providing a service.

1. manufacturing

2. service

marketing

Activities between businesses and customers involved in buying and selling goods.

Finance

All money involved in a business

Industrial

Produce goods used by others.

Gross Domestic Product (GDP)

• Total market value of all goods and services in a year (wages)

• Compared from year to year

• Specifies to country or to the world.

Underground economy

• Income that escapes being recorded in the GDP.

  • illegal activities, counterfeit merchandise

• Cash transactions

Consumer spending

• 2/3 of GDP

• Personal income and outlays provide input on consumer spending.

Supply Chain

The way in which businesses produce goods and services. Involves how goods and servers are distributed to the consumer in the most efficient and effective way.

Supply chain network

• Supplier of raw materials

• manufactuer

• warehouse

• distribution

• retailer

• costumer

Procurment

The purchasing of supplies of business components a business needs. Businesses need to identify and reach out to suppliers.

• quality

• delivery and time

• reputation and reliability

• payment terms

• quantity

Logistics

The movement of products, people, and equipment to the final end user.

• Transportation: sea, air, rail, road

• storage

• distribution

Stock Control

Stock is available for use and if needed.

Goods that are not yet finished products stored in a factory but completed.

Just in case stock

• keep if needed

• extra stock

• inefficent based on store size

Just in time stock

• created by walmart

• less stock: scheduling the flow of production so that products are available when needed.

Effectiveness

• What consumers want and the best way to produce them

  • Doing the right thing

  • Knowing what customers want

    • buying habits

    • new features

  • Total Quality Managment - commitment to excellence

    • teamwork

    • work procedures

Efficency

• Producing quickly, low cost without wasting resources (time, material, money)

  • doing things well

  • measured by output (quantity produced in a given time)

  • Productivity (largest quantity in the least amount of time)

Generation X

Workers from post-baby boom generations (1965-1979)

• Reduced adult supervision as a child

• less loyal to a particular employer

• Expect to change jobs many times.

Gen Y (Millineals)

1980-1997

• Major surge of birth rates

• marked by increase use of technology

Generation Z

1997-early 2000s

• Digital natives

• comfortable with technology and social media

US Economy Indicators

• GDP

• Employment numbers

• consumer spending

• industrial product

• infaltion

• home sales

• retail sales

• stock market

CSR (Corperate Social Responsibility)

Businesses need to benefit all stakeholders. A companies effort to do business ethically.

ESG (environmental social corporate governance)

A new trend that is a set of factors used to measure a companies impact on the environment and society.company's

Individual well-being

A person’s overall health, happiness, and life satisfaction.

Glass ceiling

Barrier to job advancement

Sticky floor

Inability of workers to move up in their careers.

Inflation

Rapid increase in prices caused by inadequate supply of goods and services.

Labor force participation rate

(unemployed+employed)/adult population (Excludes people in prison and the military)

Current unemployment rate

4.0%

inventory control

The process of managing stock to ensure the right amount of products is available at the right time.