Intro to business management final

ADM 1300 Final

What is Management?

What is Management?

The planning, organizing, leading and controlling of resources to achieve goals effectively and efficiently

What is Corporate Culture?

Consistent Values, Norms, and Beliefs throughout the company

What is a SWOT analysis?

Large scale analysis of strengths, weaknesses, opportunities, and threats

What are examples of EXTERNAL factors that must be taken into account as a business manager

1. Government, Regulation, Central Bank Policy

2. Global Supply Chains

3. Market and Culture Trends

4. Relationships with your Customers and Vendors

5. Your Competition

What are some areas to look at when developing Strengths and Weaknesses for SWOT

1. Strength of Customer Base

2. Share of Market

3. Brand Awareness

4. State of the Economy Macro level Writ large

5. Financial Stability of the Firm

6. CSR Track Record

What are examples of things to put for Threats on a SWOT

1. Strength of competitors

2. Stability of Industry

3. State of Economy

4. Changing consumer habits

5. "The unknown" (feb 2020 re COVID as an example)

What are examples of things to put for Opportunities on a SWOT

1. Potential for Growth

2. Economy Writ Large

3. Product Innovation

4. Potential for customer acquisition

Why would a company potentially go global?

• Increase Customer base

• Cheaper labour and Less regulation

• Access to resource

What options are there for companies who want to expand globally?

• Licencing

• Franchising

• Strategic Alliance

• Foreign Direct Investment

What is licensing?

Manufacturers give organizations the right to use brands, name, and technologies (Example: purchase of intellectual property)

What is a franchise?

Service organisations give right to sell products using standardised methods (Example: McDonald's)

What is a strategic alliance?

Partnerships between businesses where resources are shared for mutual gain (Examples: Chapters and Starbucks, Coke and McDonald's, FIFA and Adidas)

What is foreign direct investment?

Direct investment in a foreign country is the practice of expanding into a market through purchasing some or all equity in firms occupying the market (RBC buying Citibank, CIBC buying Simpli financial... both are examples of Canadian banks acquiring American financial institutions in the effort of getting a foot in the door of the US industry)

What are some advantages of a sole proprietorship?

• Easiest form to set up

• 100% claim to profits

• Maintained privacy of company info

• lowest government regulation

• form with the lowest taxation

What are some Disadvantages of a Sole Proprietorship?

• Unlimited Liability

• Extreme Time Commitment

• No Delegation ability

What is a partnership?

A business relationship between 2 or more people

Define common shares

Shares in a company that allows the holder to vote

What are the advantages of corporations?

• Limited liability in ownership

• Capital raised easily

• Longevity

What are the disadvantages of corporations?

• Poor Public Image

• Diluted (Low) Decision making ability for ownership

• Double Taxation (Corporate and Capital Gains)

• Stock Price validity

Define competitive advantage

The ability to deliver a product better or more efficiently than your competitors are able to

Why is HR essential to the smooth running of an organization?

Human Resources is the management of the company's most valuable and critical resource, people

Does salary refer to all benefits given to workers in exchange for input of factors of production?

No, Salary refers to the money you get on pay day, the term defined in the question is "Worker Compensation"

Name 5 leadership traits

1. Intelligence

2. Motivation

3. Self-confidence

4. A desire to Lead

5. Industry Relevant Knowledge

6. Interpersonal Skills

What is a SMART Goal?

A goal that is Specific, Measurable, Achievable, Relevant, and Time-Bound

What are the 3 contemporary views of Leadership?

1. Transactional Leaders

2. Transformational Leaders

3. Charismatic Leaders

Can contemporary leadership views overlap or have multiple applications to one person?

Yes

Define transactional leadership

Use of tasks, rewards, and structure to gain influence and power (Quid Pro Quo Leaders)

Define transformational leadership

Recognize the need for change, and create a collective vision to guide, engage, and execute (Motivates their followers)

Define charismatic leadership

They excite, energize, and enable their followers (use charm or rhetoric to get followers based on the behaviours of the leader)

What 4 factors drive goods and service operations?

1. Quality

2. Price

3. Flexibility

4. Dependability

Describe capacity planning (G&S Production)

1. Making sure you have the capacity to fill higher-than-average demand

2. Preparing for situations where you'll experience higher demand

3. Addressing what to do with excess capacity

Describe location planning and what should be taken into account (G&S Production)

• Proximity to other markets

• Price of Real Estate

• Demand in given market

• Proximity to Ports and supply chains

• Labour Laws

• Availability of Labour

What is the function of accountants?

To focus on historical data and trends to make forward-looking decisions and actions which will benefit their clients

What are the 2 main types of accountants and what functions do they serve?

Financial Accountants: Serves External clients as advisors on a contractual basis. They aid their clients with financial procedures and decision-making.

Managerial Accountants: Works internally for a firm and serves the firm with decision-making and planning for the financial success of the business.

What is an asset?

Something an individual or firm owns that they expect to derive benefit from in the future

Simplify the Term "Accounts Payable" (Accounting)

Money owed by you (Net Negative)

Define "Current Asset" (Accounting)

An asset expected to derive benefit within the next year

Define "Fixed Asset" (Accounting)

Assets which we expect to be beneficial to us past 12 months from now

Define/ Simplify "Liability" (Accounting)

All debts and money you owe (Net Negative)

Define/Simplify "Accounts Receivable" (Accounting)

Money owed to you (Outstanding loans and Credits) (Net positive)

Define "Depreciation" (Accounting)

The Value an asset loses due to use

Define "Shareholders Equity" (Accounting)

Shares of the Company + retained earnings from the company

Define "Straight-Line Depreciation" (Accounting)

When an asset loses the same amount of value every year

Where are Current Assets Listed in a balance sheet? (Accounting)

Declining Liquidity

Calculate Assets (Accounting)

Liabilities + Shareholder Equity

Calculate Liabilities (Accounting)

Assets - Shareholder Equity

What is COGS (Accounting)

Cost Of Goods Sold

Calculate Inventory Turnover (Accounting)

COGS / Average Inventory

Calculate COGS (Accounting)

Beginning Inventory + Purchases - Ending Inventory (Left overs)

Define "Ending Inventory" (Accounting)

All the goods or services that are not sold

Calculate Average Inventory (Accounting)

(Beginning inventory + Ending Inventory) / 2

Calculate "Current Ratio" (Accounting)

Current Assets/Current Liabilities

Calculate "Average Collection Period" (Accounting)

Accounts Recievable / Average Daily Sales

Calculate "Average Daily Sales"(Accounting)

Total Sales / 365

What is the optimal Average Collection Period? (Accounting)

31 days because Consumers ideally pay off their minor debts like credit cards every month.

What are some Examples of Current assets? (Name 4) (Accounting)

• Cash on hand

• Inventory

• Accounts receivable -Marketable Securities

What are some examples of fixed assets? (Name At least 3) (Accounting)

-Land (Like the dirt under the firm) -Buildings -Capital Equipment

Why do Businesses Require Money? (Name at least 4)

-Purchasing Inventory -Paying Employees -Capital Investment -Advertising -Product Development

What are the 2 streams firms can acquire short term funding?

-Secured Loans -Unsecured Loans (More common)

What is "Secured Loan"?

A loan from a financial institution which accounts receivable or inventory used as Collateral

Define Collateral (In the context of a loan)

an asset from the borrower that is transferred to the loaner in the event of default or failure to pay.

What are some examples of Unsecured Loans?

-Line of Credit -Revolving Credit

What are 2 ways Firms can raise long-term funds?

-Debt Financing: Long term loans similar to mortgages

-Equity Financing: Issuance of Ownership stock or royalty rights in exchange for funding (Dragons Den)

What does RRSP Stand for?

Registered Retirement Savings Plan

How do RRSPs and TFSAs effect taxes?

Contributing to them will subtract the contribution amount from your taxable income... it will then be taxed when you take out the money from the account.

Name 4 Investment Vehicles easily accessible to all middle-class and above Canadians for wealth management

• TFSA

• RRSP

• Bonds (Both Gov't and Corporate

• Stocks, Mutual Funds, and EFT

Define "Marketing"

The process for Creating, Communicating, and delivering Value to customers

What does marketing, Market? (3 groups)

-Consumer Goods -Industrial Goods -Services

THERE IS OVERLAP, LIKE EVERYTHING IN BUSINESS ITS NUANCED

What are the 3 Sub-Categories of Consumer goods?

-Convenience goods -Shopping goods -Speciality goods

Define "Convenience Goods" Which is a sub-group of consumer goods

Goods which are used frequently by most/all consumers and are easily accessible (Groceries, Gas)

Define "Shopping Goods" Which is a sub-group of consumer goods

Goods which are sold by many different brands where consumers are willing to shop around, do their research and make an important decision as to what and if to purchase (Cars, Furniture, Leisure travel)

Define "Speciality goods" Which is a sub-group of consumer goods

Luxury or complex items (Expensive Clothes, Pharmaceuticals, Tech Devices)

What are the 4 P's of Marketing? whats the 5th some people include?

-Product -Price -Place -Promotion (Sometimes)-People

Define/Simplify "Price Lining"

strategy stores employ to make it simple for consumers to understand quality of the product by grouping similar quality products into the same Price making it seem as they are the same (Employed in clothing retail as an example)

Explain the Marketing Strategy of "Loss Leader"

Businesses operating at a loss for a period of time to gain a customer base with low prices

Explain the Marketing strategy "Price Skimming"

Selling newly released and overhyped products at a higher price (Example: IPhone, Cars, etc at initial release items)

What are the 4 functions of management?

1. planning

2. organizing

3. leading

4. controlling

What are the 3 levels of managers?

1. Top managers

2. Middle managers

3. First-line managers

What are the 5 basic management skills?

Technical, HR, Conceptual, Time Management, Decision-Making

What is contingency planning?

Identify in advance changes that might occur and ways the company can respond to changes

What is crisis management?

methods for dealing with emergencies

what is corporate culture?

• a firm's 'personality': "how we do things around here" • shared experience of employees • stories, beliefs, and norms that characterize the organization • culture directly affects employee's efforts

What is the PEST framework?

Political, Economical, Sociocultural, Technological

What is globalization?

The process by which the world economy is becoming a single interdependent system

What are imports?

products purchased in Canada that are manufactured in other countries

What are exports?

goods produced domestically and sold abroad

Where are the emerging markets?

China, India, Thailand, Indonesia

What is absolute advantage?

a country can produce certain items more efficiently than any other country

What is comparative advantage?

a country can produce certain items more efficiently (often more cheaply) than it can other items

4 conditions of competitive advantage

Factor Conditions, Demand Conditions, Related and Supporting Industries, Strategies, Structures and Rivalries

What is Balance of Trade?

the difference in value between total exports and total imports

What is a trade surplus?

when a country exports more than it imports

What is a trade deficit?

when a country imports more than it exports

What is a quota?

A limit on the number of goods that can be imported

What is the Embargo Act?

forbidding export/import from a nation, ex: Russia

What is a tarrif?

A tax on imported goods

What are subsidies?

government financial assistance for domestic firms

What is protectionism?

Protects domestic businesses: to support those industries, for national security reasons.

What us dumping?

selling goods abroad for less than a firm charges at home is illegal in most nations

What is an international firm?

• conducts much of its business abroad

• basically, a domestic firm with international operations