Business Midterm

team

• (or work team) is a group of people with complementary skills who work together to achieve a specific goal

group

• go about their jobs more independently and meet primarily to work towards a shared objective.

manager-led teams

• manager is the team leader and is in chare of setting team goals, assigning tasks, and monitoring the autonomy (overseeing the team and how well they work together)

self-managed teams 

• known as self-directed teams) have considerable autonomy. rather than having one specific person manage their goals, the memebers of this team control the activities needed to achieve those goals (make their own decision on how to complete and manage work)

cross-functional teams 

• cuts across an organization’s functional areas (almost like the different departments; operations, marketing, finance, and so on)

virtual teams

• a group of people who collaborate to achieve a common goal from different physical location while using technology

group cohesiveness

the attractiveness of a team to its members, are the members drawn to the group, do they feel comfortable/connected to the group

groupthink 

• the tendency to conform to group pressure in making decisions, while failing to think critically or to consider outside influences

task-facilitating roles

• adress the challenges at hand, espeically the number on challenge which is accomplishing the goal. providing information when someone needs it or when you need it. in addition, you’ll continue to monitor the progress and enforcing how team decisions are carried out. most valuale when assignments aren’t clear or progress is slow

relationship building roles

• challenging umotivated behavior or help other team members understand their roles, also improving or maintaining group cohesiveness

blocking roles 

• consist of behavior that inhibits either team performance or that of individual members

entrepreneurs

• those who take the risks and reap the rewards associated with starting a new business enterprise

revenue

• the funds an enterprise receives in exchange for its good or services

profit 

• what’s left (hopefully) after all the bills are paid

owners

• whose primary role is to invest money in the business

employees

• those that work for the company

customers 

• a third group of participants, those who buy from the business and who needs to be satisfied

stakeholders

• those with a legitimate interest in the success or failure of the business and the policies it adopts (consumers, vendors, employees, landlords, bankers, and more)

functional areas

• management, operations, marketing, accounting, and finance

managment 

• involves planning for organizing, leading, and controlling a company’s resources so that it can achieve its goals

operations manager

• the person who designs and overseas the transformation of resources into good or services (also ensure products are of high quality)

marketing

• consists of everything that a company does to identify customer’s (market research) and desgin products to meet those needs

accountants

• measure, summarize, and communicate financial and mangerial information and advice other managers on finacial matter

finance 

• involves planning for, obtaining, and managing a company’s funds

macro-enviornment

• the big picture would external to a company over which the business exerts very little if any control (economy, government, consumer trends, technological developments, public pressure to act as good corporate citizens, and other factors)

economics

• the study of production, distribution, and consumption of goods and services (the study of how people use limited resources to satisfy their needs and wants; good and services: things you van touch, actions people do for others.)

resources 

• the inputs used to produce outputs (the people, materials, money and/or land (things) we use to make goods and services

household

• a person or a group of people living together who use resources and provide resources to businesses.

economic system

• the means by which a society (household, businesses, and government) makes decisions about allocating resources to produce products and about distributing those products (a simple way to understand this is by saying that this is a way a country/society organizes the production, distribution, and use of goods and services)

planned system 

• gov’t exerts control over the allocation and distribution of all/some goods and services

communism

• the political and economic system that seeks to create a classless society in which the major means of production, such as mines and factories, are owned and controlled by the public

socialism

• industries that provide essential services, such as utilities, banking, and health care, may be gov’t owned (a political and economic theory where the community, rather than private individuals, owns or controls the means of production and distribution)

central planning 

• allocates the goods and services produced by gov’t-run industries and tries to ensure that the resulting wealth is distributed equally (the government controls and makes all major decisions about the economy)

free market system

• • • • • prices, production, and distribbution are determined by supply and demand, with minimal/no gov’t control (decisions are based on profit as well); known as capitalism as well (Adam Smith in his book The Wealthh of Nation 1776)

private property rights

• business owners can expect to own their own land, buildings, and machines, et., and keep majority of their profits, except for taxes

mixed market economy 

• relies on both markets and the gov’t to allocate resources

privatization

• he transfer (of a business, industry, or service) from public to private ownership and control

nationalization

• the transfer of a major branch of industry or commerce from private to state ownership or control. (when a government takes control of private business/industries and makes them state owned)

laissez-faire 

leaving things alone 

perfect competition

• many consumers buying a standardized product from numerous small businesses (stock market)

monopolistic competition

• many businesses sell similar but not identical products (clothing brands)

oligopoly 

• a few large businesses dominate an industry (smartphone companies, airlines)

monopoly

• a single company controls an entire industry/market (utilities companies)

demand

• the quantity (amount) of a product that buys are willing to purchase at various prices

supply 

• the quanitiy (amount) of a product that sellers are willing to sell at various prices

equilibrium price

• the point in which the two curves (of supply and demand) intersect

shortage

• demand for a good/service is higher than the supply available

surplus

• supply of a good/service is higher than the demand

differentiated

• products that differ somewhat/are perceived to differ, even though they serve a similar purpose

natural monopolies

• one company can provide a good or service more efficiently and cheaply than many competing companies could

legal monopoly

• the government allows or creates by law — meaning only one company/organization is legally permitted to provide a certain product/service.

gross domestic product 

• the market value of all goods and services produced by the economy in a given year

business cycle

• the patterns of ups and downs in the economy over time

prosperity

• “the honeymoon phase” the economy is strong and growing (economic success, high employment, and strong growth)

recession 

• the “awkward” phase the economy slows down for several months/longer (shrinks instead of grows)

recovery

• economy starts to grow again after a recession (improving and moving back toward growth and prosperity)

depression

• a severe and long-lasting downturn in the economy (economic collpase, hardship, and very low activity)

full employment 

• when everyone who wants to work has a job

unemployment rate

• the percentage of the labor force that’s unemployed and actively seeking work

inflation

• when the overall prices levels goes up

delfation 

• when the price level goes down (very rare)

price stability

• occurs when the average of the prices for goods and services either doesn’t change/changes very little

consumer price index

• measures the rate of inflation by determining price changes

economic indicator 

• a statistic that provides valuable information about the economy

lagging economic indicator

• statistics the report the status of the economy looking at past data

leading economic indicators

• indicators that predict the status of the economy three-twelve months into the future

monetary policy 

• the way a country’s central bank controls the money supply and interest rates to keep the economy stable

fiscal policy

• relies on the gov’ts power of spending and taxation

government policy

• to increase spending, reduce taxes, or both

budget surplus 

• gov’t income (mainly from taxes) is greater than its spending

budget deficit

• gov’t spends more money that it collects in revenue

national debt

• total amount of money a gov’t owes to lenders

ethical business

• organizations are more in tune with their key stakeholders (customer, suppliers, local communtiy, physical enviornment); application of ethical behavior

ethical

• to know right from wrong and to know when you’re practicing one instead of the other

ethical issues

• difficult social questions that involve some level of controversy over what is the right thing to do

ethical dilemmas 

• situations in which it is difficult for an individual to make decisions

ethical decision

• entails a :”right-versus-right” decsion- one in which there is a cear right (ethical) and wrong (unethical/illegal) choice

reputation

• the overall opinion/image people have of a person/group/company/organization based on their actions, behavior, and values.

rationalization 

• when someone justifies/makes excuse(s) for unethical behavior to make it seem acceptable/less wrong/ lighten the blow

honesty

truthful, sincere, and transparent in your words and actions.

integrity

doing the right thing even when no one is watching—staying true to your values and being honest and consistent in your actions.

time and pressure 

sometimes we are not blessed with enough time to do things and have to make an erupt decision, however that is when your ethical skills come into play, it is important to apply those skills in your decision making CONSTANTLY because you may have to may a sudden decision and may not even be prepared.

conflict of interest

individuals must choose between taking actions that promote their personal interests over the interest of others/taking actions that don’t

insider trading (illegal)

acting on information that is not avaliable to the general public (either by trading on it/providing it to others who trade on it); illegal act of buying or selling a company’s stock using confidential information that isn’t available to the public.

loyal 

• being faithful and supportive to a person, group, or organization, especially during challenging times

bribe

• money or something of value given to influence someone’s actions or decisions dishonestly

theft (of time)

• when an employee misuses work hours—for example, doing personal tasks or being unproductive—while still being paid

deception 

• • the creation of something that does not exist, lying or some form of misrepresentation

lying

• saying things that are not true, falsely assigning blame/inaccurately reporting conversations

whistleblower

• an individual who exposes illegal/unethical behavior in an organization (must be an individual not a company)

corporate social responsibility (CSR)

• • approach that an organization takes in balancing its responsibilities toward different stakeholders when making legal, economic, ethical, and social decisions

stakeholders

those who have interest in the sucess/failure of the business andd the policies it adopts

environmental , social, and governance (ESG)

•businesses acknowledge the additional influences of government and climate change

CSV

creating shared value

board of directors (BOD)

• made up of key stakeholders that are working to influence the organization and guide managment

creating shared value

• an aspirational viewpoint, views business in an ideal position to solve big problems

managers 

• • representatives of the busiess organization and those that must balance stakeholder influences as they manage the organization

owners

• • • (or shareholders) are the stakeholders who invest risk capital in the firm in expectation of a financial return; also known employees, suppliers, communtities; invest money in companies

Sarbane Oxley Act of 2002

a U.S. law that strengthens corporate accountability by requiring accurate financial reporting and stricter oversight to prevent fraud in public companies.

minimum wage 

• • set by the federal govenment however the states can set their own rates as long as they are higher.