ABME 10 2ND EXAM

business

entitites involved in transforming resources to products or services, offering it to custoemrs, in order to address their needs, profitably

business functions

processes or operations executed by businesses to ensure the proper function of an organization

marketing

• addressing customer needs profitably through products and services

• also in charge of branding and promoting for customers to know better what they offer

operations

• transforming resources to products or services

• also oversees the processes from coordinating with suppliers to ensure delivery to customers

finance

• ensures where to source money (capital) and how to use it efficiently and effectively

• ensures every account is in good position

• also ensures that profits and revenues are maximized and return-of-investment (ROI) is realized

human resource

• involved in transformation and offering of products or services

• scopes in attracting and recruiting work force, developing them to their full potential, and ensuring that they will stay

• responsible for ensuring that there are right number of right people, with the right skills, in the right place at the right time

business planning

serves as a blueprint on how one will make the business possible and successful

business model canvas

simple tools which illustrates or visualizes the business model

business model

shows how an organization creates, delivers, and captures value

marketing 

art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering and communicating superior customer values

brand

mark of ownership which distinguishes itself from other makers in the industry

identity

communicated through a name, term, design, symbol, or a logo

pricing

art and science of assigning values to your offering

cost plus

price depensd on costs + patong (mark-up)

going rate

price depends with competitors (tapatan)

low-cost

pricing affordably to be bought by many

premium

pricing at a premium (high) to show quality/image/differentiate/user

discount

pricing at a discount to trick customers, but actually has profits already

psychology

pricing to seemingly deceive and trick the brain

operations management

function concerned in transforming resources (inputs) to become products and services (outputs) conforming to the specifications desired by the customers

supply chain

focuses on the flow of goods from raw materials to consumption

value chain

processes of activities which traces the value addition and transformation happening in a product from resources until it reaches the customers

financial decision

• where to source the funds

• raise capital to start the business

debt financing

borrowing money and paying it back with interest

equity financing

selling a portion of the company in exchange for the capital need 

venture capitalist

business, firms, or industry experts who put their money on start-ups and other companies with high growth potential in exhcange for shares of the company

angels

individuals, often successful business people who uses their own fund to invest in early stage companies who they consider to have great potential

investment decision

• where to put the funds

• assessing the viability of the venture to be pursued

capital expenditure

expenditures which are laid out to create benefits in the future

direct cost

tied directly to the production of goods and delivery of services

indirect cost

expenses related to running the business but not directly to the production of the goods or services

working capital

investment in certain operating expenses that need to be funded externally initially because it can’t be paid for by revenues which are yet to be earned

initial investment

amount the entrepreneur will need in setting up the business

pitch

• presentation of a business idea to an audience, usually, potential investors, partners, and for some the customers themselves

• “selling” activity

elevator pitch

main intent is not to sell but to intrigue

business pitch

aim to seal a deal or gain attention for evaluation