Business foundations exam 1

Business

The organized effort of individuals to produce and sell goods or services for profit.

Economic Value

Value generated through job creation, innovation, and economic growth.

Social Value

Value created through ethical practices, corporate social responsibility, and community support.

Five Primary Components of Business

Operations, Marketing, Finance, Human Resources, Strategy.

Complex Problems in Society

Issues like climate change, poverty, and healthcare that businesses can address.

Evolving Nature of Business

Adaptation through automation, remote work, and the gig economy.

Social Responsibility

Ethical decision-making that ensures long-term sustainability and consumer trust.

Global Business

Interconnection of businesses worldwide through trade and technology.

Trade Restrictions

Tariffs, quotas, embargos, and sanctions that impact market access and pricing.

Global Competition

Startups and multinational corporations leverage innovation and strategic partnerships.

Cultural Challenges in Business

Language barriers, business etiquette differences, and varying consumer behaviors.

Cultural Awareness Models

Hofstede’s Cultural Dimensions and the Lewis Model.

Entrepreneurial Mindset

A mindset fostering innovation, adaptability, and problem-solving.

Growth vs. Fixed Mindset

A growth mindset embraces challenges; a fixed mindset resists change.

Entrepreneurial Mindset Traits

Risk-taking, resilience, opportunity recognition, and adaptability.

Influence of Practice on Thinking

Deliberate practice reshapes thought processes and decision-making.

VUCA

Volatility, Uncertainty, Complexity, and Ambiguity requiring agile and resilient entrepreneurs.

Importance of Entrepreneurship

Drives innovation, job creation, and economic growth.

Common Myths about Entrepreneurship

Entrepreneurs are not always extreme risk-takers or solely profit-driven.

Types of Entrepreneurship

Small business, scalable startups, social entrepreneurship, and corporate entrepreneurship.

Pathways of Idea Generation

Problem-solving, trend analysis, identifying market gaps, and personal experience.

IDEATE Method

A structured process for identifying and evaluating business opportunities.

Business Model

A framework for how a company creates, delivers, and captures value.

Business Model Components

Key partners, activities, value proposition, customer relationships, channels, revenue streams, cost structure, and key resources.

Common Business Models

Subscription, freemium, direct-to-consumer, and marketplace, among others.

Business Model Canvas

A visual tool outlining business model components for strategic planning.

Business Model Disruption

Startups challenge traditional industries, like Uber and Airbnb.

Marketing vs. Sales

Marketing attracts customers; sales convert leads into buyers.

Marketing Mix (4Ps)

Product, Price, Place, Promotion.

B2B vs. B2C Sales

B2B is relationship-driven; B2C is direct and transaction-focused.

Sales Cycle Stages

Prospecting, Preparation, Approach, Presentation, Handling Objections, Closing, Follow-up.

Modern Selling Techniques

Social selling, AI-driven sales, consultative selling, and digital marketing.

Customers Create Markets

Demand and consumer needs shape industries and product development.

Types of Customers

Innovators, Early Adopters, Early Majority, Late Majority, Laggards.

Consumer Behavior

Study of how consumers make purchasing decisions.

Buying Process Steps

Problem recognition, Information search, Evaluation of alternatives, Purchase decision, Post-purchase behavior.

Market Segmentation

Demographic, psychographic, geographic, and behavioral methods of market division.

Organizational Structure Impact

Affects communication, efficiency, and scalability.

Key Elements of Organizational Structure

Hierarchy, span of control, centralization vs. decentralization, departmentalization.

Traditional Organizational Structures

Functional, divisional, and matrix structures.

Contemporary Organizational Structures

Flat, network, team-based, and agile structures.

Factors Influencing Organizational Design

Company size, industry, technology, strategy, and external environment.