Business unit 3

Functions of a Business test review. Includes, marketing, branding CSR, ect.

CSR definition

Corporate Social Responsibility

Why CSR is important

Improves brand image and encourages loyalty

CSR Principles

Provide safe and healthy work environment

adopting fair labor polices

protecting the environment

being truthful in advertising

avoiding price discrimination

donating to charity

Duty to report (who it applies to)

corporations and their employees

Duty to report (Definition)

they must disclose all important information to shareholder, partners, consumers, etc..

6 laws that govern corporate ethics

workplace safety

Antidiscrimination issues

Harassment

Accessibility issues for people with disabilities

Environmental Responsibility

Labor practices

Ethics (Def.)

rules that help us understand the difference between right and wrong. They encourage us to do the right thing

Ethical behavior

individual beliefs and social standards about what is right and wrong

Values (def.)

tells us what is important and helps us to decide about right and wrong

Morals (def.)

rules we use to decide what is good or bad

values (ex.)

loyalty, honesty, respect

morals (ex.)

laws - don’t steal, lying, cheating

values (learnt from)

media, teachers, friends

morals (learnt from)

parents, media, idols

utilitarian view

greatest good to greatest number of people

individualism view

primary commitment to one’s long-term self-interests

Moral-rights view

respect the fundamental rights of all people

Justice view

fair and impartial treatment of people according to rules and stanards

hammurabi’s code

harsh punishments for not following the law

cultural relativism

ethical behavior is always determined by cultural context

ethical imperialism

behavior that is unacceptable in ones home country should not be acceptable anywhere else

code of ethics

a document that explains how employees should respond in certain situations

ethical dilemma

moral problem with a choice between potential right and wrong

whistle-blowing

when a employee informs officials or the public about an illegal or ethical violation

Fraud

crime of lying or pretending

accounting scandals

occurs when accountants or senior executives alter accounting records for personal benefit

embezzlement

a type of account fraud when accountants or senior executives creates false accounts to redirect money for personal gain

insider trading

buying or selling shares based on confidential information

workplace safety (3 basic rights)

the right to know

the right to refuse

the right to participate

antidiscrimination issues

denying a qualified person based on discrimination

gender discrimination

treating an employee differently based on their sex

Glass ceiling

invisible barriers that may affect career path of senior leaders in corporate positions

Harassment (def.)

behavior that is threatening or makes others feel uncomfortable

harassment (ex.)

threats, assault

accessibility

employers have a duty to accommodate

duty to accommodate

an employers liability to ensure accessibility

environmental responsibility

duty to protect to environment

labor practices (ex.)

work hours, overtime pay, equal pay

pay equity

equal pay between both sexes

privacy laws

explains what information they need from someone and why

Production

when an individual, business or organization makes a product, provides a service or generates an idea or concept

the 6 factors of production

natural resources

raw materials

labor

capital

information

management

6 types of natural resources provided by primary industries

agriculture

fishing and trapping

mining

water

fuel and energy

logging and forestry

extractive resources

when primary industries take something out of the earth or sea

raw materials (def.)

any good used in the manufacturing of another good

2 types of raw materials

Ingredients

supplies

ingredients

raw materials combined or converted to become apart of a finished product

supplies

raw materials that do not become a part of the final product but are used in the production process

labor (def.)

all types of physical and mental work used to make a product

outsourcing

hiring of another company to preform tasks for the company

capital (monetary)

the money invested into the business

capital (liquid)

money used to run the business (Ie. a new truck)

capital (non-liquid)

apart of business operation but cannot be converted to liquid capital easy

intellectual property

the ideas or the talent of a business’s workforce - it is non-tangible

information

information on customers, competition, political conditions and sources of supply to produce goods/services in a competitive global market

Management

management allocates company resources’ and makes choices that affect day to day and long-term operations.

purchasing considerations (within a business)

quality of raw materials

price of raw materials

any additional costs

processing (conversion processing)

all non-service businesses covert one item to another through processing

quality control

standards to ensure all produced products are within prescribed levels of excellence

conversion processing (ex.)

sugar cane into sugar

wheat into flour

Grading

the act of checking products for size and quality against fixed standards

increased productivity factors

maintaining quality while increasing speed

increasing quality while maintaining speed

increasing both quality and speed

what maintaining and increasing productivity are often defendant on

training

capital investment

investment in tech

new inventory systems

training (def.)

training helps to develop a persons knowledge and experiences

4 major types of training

initial training

ongoing training

retraining

specialized training

initial training

initial training to grasp knowledge and skills to work productively and safely

ongoing training

continuous learning to help expand knowledge over time

retraining

redoing training to expand knowledge due to change in circumstances or qualifications

specialized training

focused training based on one specialized field

capital investment (def.)

investing capital into things to increase productivity

capital investment (ex.)

computers, machinery, buildings

investment in tech

using up to date tech to improve productivity

New inventory systems (de

JIT systems allowing businesses to coordinate suppliers and keep track of factory production

New inventory systems (benefit)

saves time, money space, reduces waste

Marketing (def.)

all activities involved in getting goods and services from the businesses that produce them to the consumer.

Marketing (fundamental roles)

to sell what a business makes and to manage the brand

Marketing (activities)

research

development

sales

distribution

advertising

promotion

Branding

creating an image for products and services with a brand name, logo or trademark, and a slogan

Marketing (major concepts)

the product concept and the market concept

the product concept (4 P’s)

product

place

price

promotion

product and services (sectors)

quality, design, features, and benefits

quality (benefit)

Improvements made to the quality of a product attracts more customers

design (why)

Consumers will often buy one product over another because of the way it looks

features (ex.)

materials, scent, size, taste

benefits (why)

to make consumers aware of the advantages of a product to be motivated to buy it

product-service mix

(mix of product and service company) can increase sales to existing customers and attract new ones

price

Businesses need to be price sensitive and look at their competitors’ prices for the same products to ensure success

place

the channels of distribution

Channels of distribution

paths of ownership that goods follow as they pass from the producer or manufacturer to the consumer

the 3 channels of distribution

direct

indirect

specialty

direct channels

connect the consumers to the producers of the goods or services

B2C

indirect channels

have one or more intermediaries who import products, wholesale goods, or retail products

B2B

intermediaries

person who acts as a link between people in order to try to bring about an agreement

Specialty Channels

an indirect way to distribute products by using vending machines, telemarketing, catalogue sales, etc.

Promotion

is an attempt to sell a product by some hype

Sales promotion

encourages consumers to buy products by getting up to 100% off a product or service

2 C’s of marketing

competitive market

consumer market

competitive market

refers to the sellers of a specific product

market share

the percentage of the market that a company or brand has

market segment

a part of the overall market with similar characteristics