Intro to Business Management Lessons 1-4

Employee Learning Curve

The period during which employees adapt to a new system, affecting productivity and morale.

Phased Training Sessions

A recommended approach to minimize disruption during system upgrades by gradually implementing training.

Customer Satisfaction

A measure of how products or services meet customer expectations; critical for repeat business.

Opportunity Cost

The potential benefits lost when choosing one alternative over another in decision-making.

Hidden Costs

Intangible expenses that may not be directly measurable but significantly impact business outcomes.

Strategic Costs

Long-term investments aimed at driving future growth, focusing on value creation rather than immediate returns.

Cost of Customer Acquisition (CAC)

The costs associated with acquiring a new customer, crucial for assessing business growth strategies.

Lifetime Value (LTV)

A prediction of the net profit attributed to the entire future relationship with a customer.

Sunk Costs

Expenses that cannot be recovered, often leading to irrational decision-making to justify past investments.

MECE Framework

Stands for Mutually Exclusive, Collectively Exhaustive; a framework for systematically categorizing costs.

Customer Feedback

Insights collected from customers that can help identify pain points and improve services.

IT Support Costs

Expenses incurred for maintaining IT systems and support, often increasing during system upgrades.

Fixed Costs

Expenses that remain constant regardless of sales volume, such as rent and salaries.

Variable Costs

Costs that fluctuate based on production levels and sales volume, such as materials and labor.

Quality Costs

Expenses associated with ensuring product quality, including maintenance and repairs.

Brand Development

The process of creating a strong brand that fosters customer loyalty and justifies premium pricing.

Training Effectiveness

The measure of how well training programs enhance employee skills and knowledge.

Change Management

A systematic approach to managing the transition of individuals, teams, and organizations from a current state to a desired future state.

Business Process Improvement

An approach to improving organizational processes to enhance efficiency and quality.

Net Promoter Score (NPS)

A metric used to gauge customer loyalty and likelihood of recommending a company’s products or services.

Operational Efficiency

A measure of how well an organization uses its resources to produce goods or services.

Return on Investment (ROI)

A performance measure used to evaluate the efficiency of an investment or compare the efficiency of several investments.

Employee Engagement

The emotional commitment of employees to their organization and its goals.

Service Level Agreement (SLA)

A contract that outlines the expected level of service between a service provider and a client.

Market Segmentation

The process of dividing a target market into smaller, more defined categories.

Benchmarking

The practice of comparing business processes and performance metrics to industry bests or best practices from other companies.

Lead Generation

The process of identifying and attracting potential customers to a business.

Digital Marketing

The use of online platforms and technologies to promote products or services to consumers.

Customer Retention

Strategies and activities designed to keep existing customers engaged and satisfied.

Customer Relationship Management (CRM)

A strategy for managing a company’s interactions with current and potential customers.

Market Research

The action of gathering information about consumers' needs and preferences.

Competitive Analysis

The process of identifying and evaluating the strengths and weaknesses of competitors.

Sales Funnel

A model that represents the stages a customer goes through before making a purchase.

Upselling

A sales technique aimed at convincing customers to purchase a higher-end product or upgrade.

Cross-selling

A practice in which a seller suggests additional products to a customer who is making a purchase.

Brand Loyalty

The tendency of consumers to continue buying the same brand of goods rather than competing brands.

Employee Training Programs

Structured activities designed to improve skills and knowledge of employees in an organization.

Change Resistance

The reluctance of employees to accept new changes or innovations in the workplace.

Process Mapping

A visual representation of the steps involved in a business process, used to identify inefficiencies.

Key Performance Indicators (KPIs)

Metrics used to evaluate the success of an organization or of a particular activity in which it engages.

Root Cause Analysis

A method of problem-solving that aims to identify the underlying reasons for a problem.

Continuous Improvement

An ongoing effort to enhance products, services, or processes over time.

Stakeholder Engagement

The process of involving individuals or groups that have an interest in the outcome of a project's actions.

Value Proposition

A statement that explains how a product or service solves customers' problems or improves their situation.

Innovation Management

The process of managing innovations to encourage forward-thinking and improve competitiveness.

Sales Conversion Rate

The percentage of leads or potential customers that are converted into actual sales.