BMGT 110F Final

Importing

Buying products from another country.

Exporting

Selling products to another country.

Free trade

The movement of goods an services among nations without political or economic barriers.

Comparative advantage theory

Countries should sell other countries those products they produce most effectively and efficiently.

Absolute Advantage

The advantage that exists when a country has a monopoly on producing a specific product or is able to produce it more efficiently than all other countries.

Balance of Trade

The total value of a nations exports compared to its imports,measured over a particular period of time.

Trade surplus

A favorable balance of trade; occurs when the value of a countries exports exceeds their imports.

Trade deficit

An unfavorable balance of trade;occurs when the value of a country's import ants exceed its exports.

Balance of payments

The difference between money coming in and money going out. Plus money flows from other factors.

Dumping

selling products in a foreign county at a lower pice that those charged in the pro ducting country.

Licensing

a global strategy in which a firm allows a foreign company to produce for a small royalty fee.

Contract manufacturing

A foreign countries production of private-label goods to which a domestic company then attaches its brand name or trademark.

Joint venture

A partnership in which two or more companies join to undertake a major product.

Strategic alliance

a long term partnership between two or more companies established to help each company build competitive market strategies.

FDI (Foreign Direct Investment)

The buying or permanent property or businesses in foreign nations.

Foreign Subsidiary

A company owned in a foreign country by anther company called a "Parent Company"

Multinational Corporation

An organization that manufactures and markets products in many different countries and has multination stock ownership and management.

SWFs (Sovereign wealth funds)

Investment funds controlled by governments holding large stakes in foreign companies.

Exchange Rate

The value of ones nations currency relation to the currencies of other countries.

Devaluation

Lowering the value of a nations currency relative to other currencies.

Countertrading

a complex form of bartering in which several countries may be involved, each trading goods or services.

trade protectionism

the use of government regulations to limit the import of goods and services

tariff

a tax imposed on imports

import quota

a limit on the number of products in a certain category that a nation can import

embargo

a complete ban on the import or export of a certain product, or the stopping of all trade with a particular country

GATT ( general agreement on tariffs and trade)

a 1948 agreement that established and inter nation forum for negotiating mutual reductions in trade restrictions

WTO

The inter nation organization that replacer the general agreement on tariffs and trade was assigned the duty to mediate trade disputes between countries

common market

a regional group of country

Economies of scale

Average cost of goods goes down as production levels increase

hierarchy

a system in which one person is at the top of the organization and there is a sequential rank from top down

chain of command

the line of authority that moves from the top of a hierarchy to the lowest level

bureaucracy

an organization with many layers of managers who set rules regulations

centralized authority

an organization structures in which decision making is maintained at the top level of management

decentralized authority

an organization structure in which decision making is delegated to lower level authorities

span of control

the optimal number of subordinates a manager supervises or should supervise

departmentalization

the dividing of organizations functions into separate units

line organization

an organizations that has direct two way lines of responsibility , authority and communication running from the top to the bottom of the organization.

line personnel

employees who are part of the chain of command that are responsible for achieving organization goals

matrix organization

an organization in which specialists from different parts of the organization are brought together to work on specific projects

networking

using communications technology and other means to link organizations and allow them to work together

virtual corporation

a temporary networked organization made up of replaceable firms that and join and leave as needed

benchmarking

comparing and organizations practices processes and products against the worlds best

core competencies

those functions that the organization can do as well as or better than any other organization in the world

restructuring

redesigning an organization so that it can more effectively and efficiently serve its customers

inverted organization

an organization that has contact people at the top and the chief executive officer at the bottom of the organization chart

organizational culture

widely shared values within an organization that provide unity and cooperating to achieve common goals

formal organization

the structure that details lines of responsibility, authority and position.

production

the creation of finished goods and services using the factors of production

production management

the term used to describe all the the activities managers do to help their firms create goods

operations management

a specialized area in managment that converts or transforms resources

form utility

the value producers add to materials in the creation of finished goods and services

process manufacturing

the part of the production process that physically or chemically changes materials

assembly process

the part of the production process that puts together components

continuous proces

a production process in which long production runs turn out finished goods over time

intermitten process

a production process in which the production run is short and the machines are changed frequently to make different products

CAD (computer aided design)

the use of computers in the design of products

CAM (computer aided manufacturing)

the use of computers in the manufacturing of products

CIM (computer integrated manufacturing)

The uniting of computer aided design with computer aided manufacturing

flexible manufacturing

designing machines to do multiple tasks so that they can produce a variety of products

lean manufacturing

the production of goods using less of everything compared to mass production

mass customization

tailoring products to meet the needs of individual customers

facility location

the process of selecting a geographic location for a companys operation

telecommuting

working from home via a computer

facility layout

the physical arrangement of resources in the pro ducting process

purchasing

the function in a firm that searches for high quality material resources, finds the best suppliers, and negotiates the best price

JIT ( just in time ) inventory control

a production process in a which a minimum of inventory is kept on the assembly line

quality

consistently producing what the customer wants while reducing errors before and after delivery to the customer

six sigma quality

a quality measure that allows only 3.4 defects per million opportunities

SQC (statistical quality control)

the process some managers use to continually monitor all phases of the production process to assure that the quality is being built into the product from the .

ISO 9000

the common name given to quality management and assurance standards

ISO 14000

a collection of the best practices for managing an organizations impact on the enviroment

PERT

a method for analyzing the tasks involved in completing a given project, estimating the time needed to complete each task and identifying the minim time needed to complete the total project.

critical path

in a PERT network, the sequences of tasks that teas the longest time to complete

Gantt chart

bar graph showing production managers what projects are being worked on and what stage they are in at any given time

Market concept

a three part business philosophy: a customer orientation, a service orientation and a profit orientation

CRM (customer relationship management)

the process of learning as much as possible about customers and doing everything you can to satisfy them

marketing mix

product, price, place and promotion

product

any physical good, service, or idea that satisfies a want or need

brand name

a word letter or group of words or letters that differentiates one sellers goods and services from another's

marketing research

the analysis of markets to determine opportunities and challenges

secondary data

information that has already been complied by others and published in journals and books or made available online

primary data

data that you gather yourself (not from secondary sources)

environmental scanning

the process of identifying the factors that can affect marketing success

consumer market

all the individuals or households that want goods and services for personal consumption or use

B2B market

all the individuals and organizations that want goods and services to use in producing other goods and services or to sell rent or supply goods to others.

market segmentation

the process of dividing the total market into groups whose members have similar characteristics

target marketing

marketing directed toward those groups (market segments) that an organization think will serve profitably

geographic segmentation

dividing a market by cities countries states or regions

demographic segmentation

dividing the market by age income and education levels

psychographic segmentation

dividing the market using group values attitudes and interests

benefit segmentation

dividing the market by deterring which benefits of the product to talk about

volume segmentation

diving the market by usage

niche marketing

the process of finding small but profitable market segments and designing or finding products for them

one-to-one marketing

developing a unique mix of goods and services for each individual customer

mass marketing

developing products and promotions to please large groups of people

relationship marketing

marketing strategy with the goal of keeping individual customers over time by offering them products that meet their exact requirements

distributed product development

handing off various parts of your innovation process- often to companies in other countries

total product offer

everything that consumers evaluate when deciding whether to buy something, also called a value package

product line

a group of products that are physically similar or are intended for a similar market

product mix

the combination of product lines offer by a manufacturer