FBLA Introduction to Business Procedures

Sharp decrease in volume, profits continue to fall. Cover costs, maintain market share, reduce inventory. Retain or eliminate product.

Decline

All products that an organization sells.

Product Mix

A group of closely related product items.

Product Line

Name, symbol, term, and design.

Brand

Use a different brand for each product.

Individual Branding

Use the same brand for all or most of the products.

Family Branding

Highest possible price during the introduction.

Price Skimming

Low price for a new product; quickly build market share.

Penetration Pricing

Price through bargaining.

Negotiated Pricing

Temporary reduction on a systematic basis.

Periodic Discounting

Temporary reduction on an unsystematic basis.

Random Discounting

- Odd-number

- Multiple-unit - single price for two or more units.

- Bundle - complementary products at a single price

- Everyday low prices (EDLPs)

Psychological Pricing

The process of systematically collecting, analyzing, and reporting financial information.

Accounting

Assets - liabilities

Networth (equity)

moral principles by which people conduct themselves personally, socially, or professionally

ethics

company that is registered by a state and operates apart from its owners

corporation

contractual agreement to use the name and sell the products or services of a company in a designated geographic area

franchise

a business that moves goods from one business to another

intermediary

a claim that holds a firm's owners responsible for no more than the capital that they have invested in it

limited liability

the process of achieving company goals by planning, organizing, directing, controlling, and evaluating the effective use of resources

management

a corporation

What kind of company would most likely hire a professional manager?

organizing

which managerial function comes first when executing business goals?

creating strategies

What is NOT an aspect of the organizing function?

who is in charge of whom in a firm

What does an organizational chart show?

operational management

Which deals with non-management workers most often?

hiring employees

What is NOT part of the leadership function for a manager in charge of a project?

a middle manager

In a large company, to whom would an operational manager generally report?

desktop computers, laptops, phones and wireless devices

Hardware

programs and applications

software

central computer that shares data, files, and applications and allows you and your employees to access the Internet or use the same printer

server

router, hubs, and stitches that tie workstations together and provide security features, such as firewalls

networking devices

allows you to covert paper into electronic files

documentimaging system

basically an electronic cash register that allows you to track sales

point-of-sale system

allows you to collect, store, and organize data, such as contact information for you customers, suppliers, and vendors

database program

customer relationship management software used for sales and marketing, which organizes contact information for current and prospective customers, and allows multiple users to track customers' buying habits

CRM software

used to promote your business via electronic newsletters that helps you develop targeted, spam-free emails to send to your distribution lists

email marketing software

enterprise resource planning system that pulls from both hardware and software programs to integrate various functions, such as distribution, shipping, and invoicing. It can be used to help a business owner figure out the amount of inventory needed to prevent overstocking.

ERP system

helps organize your business finances, track outstanding invoices and figure out how much cash your company has available.

accounting software program

something a business owner might invest in that culls data from arious areas and delivers reports and analysis. It can be used to figure out what's driving profits and pinpoint areas that aren't running smoothly.

business intelligence software

planning projects

What management task is part of the controlling function?

Managers sometimes lack the specialized help they need.

What is a disadvantage to the line authority structure of management?

It gives all authority to top-level management

What is true of centralized organization?

decentralization

What term refers to management responsibility divided among managers?

Employees can share duties. This is typically for small companies

How can a business be run informally?

Entry-level position

At what level do most managers begin their careers?

He or she should spend most of the time doing paperwork

What is NOT true of a manager's job?

getting blamed when things go wrong

What is a disadvantage to being a manager?

Use formal channels of communication that assigns each organization member a specific one, the line of communication is as direct as possible, the complete chain of command is used to issue orders, the manager possesses adequate communication skills

How can a manager raise the odds that their commands will be accepted and obeyed?

line authority, staff authority, functional authority

what three main types of authority are there?

money or wealth needed to produce goods and services

capital

an organization that puts authority in one place, with top management

centralized organization

keeping the company on track and making sure goals are met

controlling

an organization that gives authority to a number of different managers

decentralized organization

dividing responsibility among specific units, or departments

departmentalization

job suitable for a worker who is new to a job, field, or subject

entry-level job

an organizational structure with direct lines of authority as well as staff who advise line personnel

line and staff authority

managers who carry out the decisions of top managaement

middle managers

managers who are responsible for the daily operations of a business

operational managers

a chart that shows how the firm is structured and who is in charge of whom

organizational chart

managers responsible for setting goals, planning for the future, and leading and controlling the work of others

top-level managers

a leadership style in which one person runs everything and makes all decisions without consulting others

autocratic leadership

giving managers and employees the power to run things and make decisions

delegating

a leadership style in which managers work with employees to make decisions

democratic leadership

inspire others

An ideal leader should...

the ability to make decisions on your own

initiative

a specific knowledge of the mentoree's job

What is NOT necessary in a mentor

Free-rein

What kind of leader does the most delegating?

The motivate other team members

How are team leaders like managers?

Competition, business agreements, and creative rights

What do laws protect?

a group of companies that band together to form a monopoly

trust

the exclusive legal right given to artists to own their creations

copyright

a legal grant for the sole right to own and invention

patent

a name, symbol, or characteristic that identifies a product

trademark

20 years

patents offer protection for how long?

created by the federal government to enforce antitrust laws

Federal Trade Commission

shows where and how money goes in and out of a company for a period of time

income or Profit and Loss Statement

shows how cash is flowing in and out of a business; used as a guide for business decisions like adding employees or planning major purchases

cash flow statement

an ethical business issue that is associated with human relations;

Money laundering

selecting, evaluating, and firing employees

human resources does:

the process of helping new employees adjust to a company

Orientation

formal organization with several levels of management

bureaucracy

outlines the financial projections about a new firm or venture; include the amount of money a business will need to start and operate

financial plan

estimates the financial outlook for a business over the next few years

financial forecast

collects, records, and reports financial transactions that affect the operation of a business

accounting system

assets = liabilities + owner's equity

accounting equation

generally accepted accounting principles which are rules that provide a way to communicate financial information to others

GAAP

property or other items of value owned by a business; doesn't include insurance

assets

assets that are either used up or converted to cash during the normal cycle of the business

current assets

the total amount of money owed to a business. It represents money to be recieved in payments after goods or services are sold on credit

accounts receivable

items of value that are held for more than one year

fixed assets

value of a piece of property less the amount still owed on the money borrowed to purchase it; how much is actually owned

equity

creditors' claims to the assets of a business

liabilities

the total amount a business owes to creditors

accounts payable

an owner's claims to the assets of a business

owner's equity

documents summarizing the changes resulting from business transactions that occur during an accounting period

financial statements

a report of the revenue, expenses, and net income or net loss for an accounting period; typically over 12 months)

income statement

a report of the balances in all asset, liability, and owner's equity accounts at the end of an accounting period; gives a snapshot, as it essentially gives only one day of a company

balance sheet

the amount of money that is available to a business at any given time, esp. to pay upcoming bills

cash flows

a financial report that shows incoming and outgoing money during an accounting period (often monthly or quarterly)

statement of cash flows

information technology; using computing, electronics, and telecommunications to process and distribute information in digital and other forms

IT