MGM 101: Introduction to Management Functions - Study Flashcards

Comprehensive vocabulary flashcards covering the key terms, definitions, and frameworks from MGM 101 lectures on small business ownership, entrepreneurship, ethics and corporate social responsibility, organizational management, and customer-driven marketing.

Business Plan

A written document that details a company's goals, the methods it will use to achieve those goals, and the standards it will use to measure its achievements.

Business Development Bank of Canada (BDC)

A Canadian organization that assists, counsels, and protects the interests of small businesses by providing training, technical assistance, and education to prepare them for foreign markets.

Canada Small Business Financing Program (CSBFP)

A government program in which the government guarantees up to $85\%$ of a loan when a bank loans money to a small business and it is not repaid.

Business Incubator

A facility that provides low-cost, shared business space and resources to start-ups to help accelerate and encourage business development until they can operate on their own.

Franchising

A contract-based business arrangement between a manufacturer or supplier (franchisor) and a dealer (franchisee) that specifies how the dealer will market and sell the supplier's product or service.

Franchisee

The individual or business firm that purchases a franchise and operates under the franchisor's brand and business model.

Franchisor

The parent firm whose products, brand name, and operating systems are licensed to and sold by the franchisee.

Preferred Shares

Shares of stock in a corporation that typically offer preferential dividend rights but give shareholders limited voting rights.

Common Shares

Shares of stock that grant voting rights to holders but provide only residual claims on the firm's assets after creditors and preferred shareholders are satisfied.

Board of Directors

The governing body of a corporation, elected by shareholders, responsible for overseeing corporate governance and representing shareholder interests.

Merger

A combination of two or more firms to form a single company, categorized into vertical, horizontal, or conglomerate combinations.

Acquisition

An agreement in which one firm purchases another, acquiring its property and assets and assuming its liabilities and debt.

Joint Venture

A partnership between two or more companies for a specific activity or project, sharing costs, risks, management, and profits.

Entrepreneur

A risk-taker in the private enterprise system who seeks a profitable opportunity and takes the necessary risks to set up and operate a business focused on expansion and growth.

Seed Capital

The initial funds required to launch and establish a new company.

Debt Financing

Borrowed funds that must be repaid with interest, obtained from sources such as family and friends, commercial banks, finance companies, or credit cards.

Equity Financing

Funds raised in exchange for ownership shares in the business, commonly sourced from angel investors and venture capitalists.

Intrapreneurship

The process of promoting innovation, creative initiatives, and risk-taking within the structure of an existing, established organization.

Skunkworks

An intrapreneurial project initiated by an employee who conceives an idea and develops it into a commercial project.

Pacing Programs

Company-initiated projects that focus on a selected few products and technologies identified as having strong potential for commercial success.

Business Ethics

The standards of conduct and moral values that guide actions, decisions, and behaviours within the business environment.

Corporate Social Responsibility (CSR)

A management concept whose primary objective is the enhancement of society's welfare through philosophies, policies, procedures, and actions.

Sarbanes-Oxley Act of 2002

U.S. federal legislation establishing stringent rules and regulations for securities trading and accounting practices; applies to Canadian firms trading on U.S. stock exchanges.

Bill 198 of 2003 (C-SOX)

Canadian legislation enacted to mirror the U.S. Sarbanes-Oxley Act, strengthening corporate accounting governance and financial disclosures in Canada.

Code of Conduct

A formal corporate statement defining how an organization expects its employees to resolve ethical questions and uphold core values.

Four Levels of Shaping Organizational Ethical Conduct

The sequential framework organizations use to build an ethical climate: Ethical Awareness (base), followed by Ethical Education, Ethical Action, and Ethical Leadership (top).

Social Audit

A formal evaluation used by organizations to measure and evaluate their performance in fulfilling social responsibilities and community obligations.

Green Marketing

A marketing strategy that actively promotes environmentally safe products and sustainable production methods.

Management

The process of achieving organizational goals efficiently and effectively through people and other operational resources.

Strategic Planning

The primary planning process undertaken by top management to establish long-term organizational objectives, broad strategies, and overall company policies.

Tactical Planning

The planning level conducted by middle management focusing on quarterly and semi-annual plans, operational guidelines, and departmental policies.

Operational Planning

The planning level performed by supervisory (first-line) management to create daily and weekly work plans, departmental schedules, and specific rules.

Contingency Planning

Planning primarily led by top management with input from all levels that details ongoing actions and communications to execute in the event of an emergency or unforeseen crisis.

SWOT Analysis Strategic Matrix

A strategic tool assessing internal Strengths and Weaknesses against external Opportunities and Threats, yielding Leverage (Strengths-Opportunities), Vulnerability (Strengths-Threats), Constraints (Weaknesses-Opportunities), and Problems (Weaknesses-Threats).

Autocratic Leadership

A boss-centred leadership style where the manager makes decisions independently without consulting employees.

Democratic Leadership

A collaborative leadership style that actively includes subordinates in decision-making and emphasizes employee contributions.

Free-Rein Leadership

A hands-off leadership style involving minimal supervisory intervention, empowering employees to make most operational decisions.

Corporate Culture

An organization's shared collection of principles, values, and beliefs, communicated through managerial leadership, work environment, rituals, symbols, and stories.

Departmentalization

The managerial process of subdividing work activities into specialized organizational units based on product, geographical area, customer, function, or process.

Delegation

The managerial process of assigning activities, authority, and responsibility to employees while maintaining accountability for final outcomes.

Span of Management (Span of Control)

The specific number of direct subordinates that a single manager or supervisor directly oversees.

Centralization

An organizational approach in which decision-making authority is retained at the top tiers of the management hierarchy.

Decentralization

An organizational approach where decision-making authority is distributed downward to lower managerial and operating levels to enhance flexibility and market responsiveness.

Line Organization

An organizational structure featuring a direct, unbroken chain of command and authority flowing vertically from the CEO down to operational employees.

Line-and-Staff Organization

A structure combining direct line authority over core operations with specialized staff departments that provide advice, analysis, and technical support.

Matrix Structure

An organizational design that overlays functional departments with project teams, requiring employees to report simultaneously to a functional line manager and a project manager.

Marketing

An organizational function and set of processes for creating, communicating, and delivering value to customers, and for managing customer relationships to benefit the organization and its stakeholders.

Exchange Process

A foundational marketing transaction in which two or more parties voluntarily trade items of value (goods, services, or cash) for mutual benefit.

Utility

The ability of a good or service to satisfy the specific wants and needs of consumers, created via time, place, and ownership dimensions.

Marketing Concept

A companywide customer orientation with the overarching goal of achieving long-term profitability and success by discovering and fulfilling customer needs.

Eras in the History of Marketing

The chronological evolution of marketing focus: Production era ('a good product will sell itself'), Sales era, Marketing era ('the consumer is king'), Relationship era, and Social era.

Categories of Nontraditional Marketing

Five specialized marketing approaches outside traditional commercial products: Cause Marketing, Place Marketing, Event Marketing, Person Marketing, and Organization Marketing.

Target Market

The specific group of current and prospective customers toward whom a firm directs its marketing efforts and resources.

Marketing Mix

The coordinated blending of four core strategic elements—Product, Distribution (Place), Promotion, and Pricing—tailored to fit a targeted consumer segment.

Mass Customization

A strategy that allows a company to mass-produce goods or services efficiently while incorporating personalized, customized features for individual buyers.

Business Intelligence

A comprehensive field of research utilizing various technologies and activities to gather, store, and analyze internal and external data to enhance strategic business decision-making.

Data Mining

The application of specialized computer technology and algorithms to analyze large databases and detect meaningful trends, consumer patterns, and sales prospects.

Market Segmentation

The process of dividing a broad, heterogeneous market into distinct, identifiable subsets with shared characteristics, desires, or needs.

Psychographic Segmentation

Segmenting consumer markets based on psychological traits, values, lifestyles, attitudes, opinions, personality, and self-image.

Product-Related Segmentation

Dividing consumer markets into groups based on their relationship to the item, including perceived benefits sought (comfort, safety, luxury), brand loyalty, and usage rates.

End-Use Segmentation

A business-to-business (B2B) segmentation method categorizing corporate customers based on how they specifically employ a product within their own operations or manufacturing.

Consumer Behaviour

The end-to-end actions and decision-making processes of individuals involved in identifying needs, searching, evaluating, purchasing, consuming, and disposing of goods and services.

Lifetime Value of a Customer

The total projected revenue and intangible benefits (such as word-of-mouth and feedback) generated over the lifespan of a customer relationship, minus the expenses incurred to acquire and serve them.

Frequency Marketing

Promotional loyalty initiatives that reward repeated customer purchases with cash rebates, discounts, points, merchandise, or premiums.

Affinity Program

A targeted marketing effort that connects an organization with an established group of consumers sharing common interests, affiliations, or activities.

Co-Branding

A collaborative marketing arrangement in which two or more established brand names are joined and featured together on a single product or service.