MGM101 Midterm Preparation

What is a key requirement for a successful first mover in the market?

To be the very first or very early into the market and capture a large percentage quickly.

What are switching costs?

Costs or difficulties a customer faces when changing from one product, brand, or service to another, which can include financial, time/effort, emotional, and ecosystem factors.

Why do first movers rarely win in the market?

Because it is an expensive strategy and often leads to competition from firms with more resources.

What three factors should strategies be based on to win in the market?

Cheaper, faster, and better; one must be ten times more effective than competitors.

Name one industry included in the communication services sector.

Netflix

What does the consumer discretionary sector include?

Goods where customers' income influences demand, such as luxury items like Nike.

What characterizes the consumer staples sector?

Goods that are in demand regardless of the economic climate, like those sold by Walmart.

Which company is an example of the energy sector?

Shell

What services are included in the financials sector?

Banking, insurance, and asset management services, exemplified by TD Bank.

What type of products does the healthcare sector provide?

Healthcare products and services, as seen with companies like Johnson and Johnson.

What does the industrials sector involve?

Heavy equipment and manufacturing, construction, and transportation, represented by Caterpillar.

Which company is known for information technology development?

IBM

What does the materials sector provide?

Raw materials for manufacturing and other industries, such as Sherwin-Williams.

What is the focus of the real estate sector?

Involvement in real estate investment trusts (REITs), represented by Brookfield Asset Management.

What role do utilities play in the economy?

Providing public utilities like electricity or gas, exemplified by Fortis Inc.

What is a significant trend regarding future jobs?

Increased usage of technologies like cloud computing, big data, and e-commerce.

What skills gaps are prevalent in the workforce?

Critical thinking, analysis, problem-solving, and active learning.

What is the goal of automation in the workplace?

To complement and enhance human capabilities, allowing workers to focus on unique strengths.

What are the three areas with the highest probability of technology adoption by 2025?

Cloud computing (17%), big data analytics (2%), and IoT and connected devices (9%).

What are stationary robots used for?

Performing repetitive tasks efficiently in manufacturing and assembly lines.

What is the expected impact of automation on full-time employment by 2022?

50% of companies forecast a reduction in their full-time workforce.

What are emerging in-demand roles in the workforce?

Data analysts, software developers, e-commerce specialists, and roles leveraging human skills.

What skills are necessary for success in today's workforce?

Analytical thinking, innovation, technology design, creativity, emotional intelligence, and leadership.

What are some current strategies to address skills gaps?

Hiring new staff with relevant skills, automating tasks, retraining employees, and using contractors.

What are examples of disruptive technologies?

Robotics, AI, IoT, data science, fintech, and blockchain.

What are NFTs?

Non-fungible tokens that are unique and cannot be exchanged 1-for-1, built on blockchain technology.

What is the significance of the unique digital signature in NFTs?

It proves ownership and authenticity of the digital asset.

What was the trend in NFT sales during mid-2021?

A spike in daily NFT sales and Ethereum prices, with sales rising from $200M/day to $830M/day.

How do NFTs disrupt traditional markets?

They create trust through transparent blockchain records and enable direct monetization for creators.

What are asset-backed tokens?

Tokens backed by real estate or physical goods, representing real-world assets on a blockchain.

What is the primary goal of artificial intelligence (AI)?

To build computer systems that think and act like humans.

Who defined an AI computer program in 1950?

Computer scientist Alan Turing.

What is an expert system in AI?

The oldest form of AI that uses if-then rules to make decisions like a human expert.

How does machine learning differ from traditional programming?

Machine learning learns from data instead of being programmed with rules.

What are neural networks and deep learning inspired by?

The human brain, resembling layers of neurons that process information.

What is the function of genetic algorithms in AI?

They work like evolution, trying many solutions and keeping the best to improve over time.

What does Natural Language Processing (NLP) enable computers to do?

Understand and communicate in human language.

What is the role of computer vision systems in AI?

To help computers see and understand images and videos.

What is the purpose of robotics in AI?

To combine AI with sensors and mechanical systems to perform physical tasks.

What are the four degrees of competition in a private enterprise system?

Pure competition, monopolistic competition, oligopoly, and monopoly.

What is a major reason small businesses fail within the first year?

Management shortcomings, such as overconfidence in abilities.

What is a business plan?

A written document that illustrates a company's goals and framework.

What is the role of the Business Development Bank of Canada (BDC)?

To train, advise, and fund small businesses.

What is franchising?

A contract-based agreement where one business markets another's product or service.

What are preferred shares?

Shares with no voting rights but fixed dividends, paid first in bankruptcy.

What is a merger?

The joining of two companies, which can be vertical, horizontal, or conglomerate.

What is the difference between a classic entrepreneur and a serial entrepreneur?

A classic entrepreneur starts one business focusing on growth, while a serial entrepreneur starts many businesses one after another.

What are the benefits of entrepreneurship?

Being your own boss, financial success, job security, and quality of life.

What is seed capital?

The initial money used to start a business.

What is the significance of social responsibility in business?

It involves the standards of conduct and moral values in decision-making.

What are the three main categories of economic systems?

Private enterprise system, planned economies, and mixed market economies.

What is the role of competition in a private enterprise system?

It regulates economic activity with minimal government interference.

What challenges do small businesses face regarding financing?

Underestimating start-up costs and taking too long to make a profit.

What is a joint venture?

A temporary partnership for a specific goal, sharing costs, risks, and profits.

What is the function of intelligent systems in AI?

To combine multiple AI types to make decisions or solve complex problems.

What are the main factors of production?

Natural resources, capital, human resources, and entrepreneurship.

What is a classic entrepreneur?

An entrepreneur who starts one business and focuses on growth and stability.

Define a serial entrepreneur.

An entrepreneur who starts many businesses, one after another.

What characterizes a social entrepreneur?

An entrepreneur who starts ventures to solve social or environmental issues.

List three reasons for choosing entrepreneurship as a career path.

Being your own boss, financial success, job security, and quality of life.

What are some expanded opportunities for entrepreneurs?

Globalization, education, information technology, and demographic and economic trends.

What is debt financing?

Borrowed money that must be repaid with interest, such as bank loans.

Define equity financing.

Investors provide money in exchange for ownership instead of repayment.

What is the role of angel investors?

Individuals who provide capital for startups, often in exchange for convertible debt or ownership equity.

What is intrapreneurship?

Innovation within an existing company where employees act like entrepreneurs.

What are the three levels of management?

Top management, middle management, and supervisory management.

What is the primary focus of top management?

Developing long-term plans, inspiring executives and employees, and being visionary.

What is the main responsibility of middle management?

Focusing on specific operations within an organization and developing detailed plans and procedures.

What are the four managerial functions?

Planning, organizing, directing, and controlling.

What does SWOT analysis stand for?

Strengths, Weaknesses, Opportunities, and Threats.

What is the first step in the decision-making cycle for managers?

Recognizing a problem or opportunity.

Name three leadership styles.

Autocratic, democratic, and free rein.

What is departmentalization in organizations?

Dividing work into smaller units or departments so employees can specialize in specific tasks.

What is the goal of product departmentalization?

To group people by the products or services they make or sell.

Describe geographical departmentalization.

Grouping people based on location or region to adapt to local markets.

What is the purpose of customer departmentalization?

To focus on the needs of different types of customers.

What is the advantage of a matrix organization?

It allows for flexible and efficient use of resources by combining people from different departments.

What are the three main objectives of human resources management?

To provide well-trained employees, maximize employee effectiveness, and satisfy individual employee needs.

What is the difference between voluntary and involuntary layoffs?

Voluntary layoffs occur when employees choose to leave, while involuntary layoffs happen when the company must let employees go due to financial issues.

What factors are considered in recruitment and selection?

Age, gender, education, experience, training, and specialized skills.

What is the first step in finding qualified candidates?

Perform a job analysis, which includes job posting and job specification.

What are the two sources of candidates for recruitment?

Internal and external sources.

What process is used to screen applicants?

Review applicants and resumes, potentially using automated software.

What is the purpose of performance appraisals?

To evaluate and provide feedback on an employee's job performance for decisions about compensation, promotion, training needs, transfers, or termination.

What percentage of a performance bonus is typically based on individual performance?

50% of the bonus comes from individual performance.

What are the two types of compensation mentioned?

Wage (hourly rate) and salary (periodic pay).

What are the five factors affecting compensation decisions?

Competing companies' compensation rates, government regulation, cost of living, company profits, and employee productivity.

What is an annual incentive plan?

A yearly reward based on achieving specific goals.

What is the definition of downsizing?

Reducing the number of employees within a firm by eliminating jobs.

What are the positive effects of downsizing?

Improvements in profits, market share, and employee productivity.

What is outsourcing?

Using outside vendors to produce goods or fulfill services that were previously handled in-house.

What are flexible benefits?

Benefits that allow employees to choose how to use their compensation, such as Paid Time Off (PTO).

What is flextime?

A benefit that allows employees to set their own work hours.

What is a compressed workweek?

Working longer hours on fewer days.

What does a job-sharing program entail?

Flexible delegation of tasks among two or more employees.

What is the role of employee morale?

It reflects employees' mental attitude toward their job and employer, including their sense of purpose.

What is the purpose of orientation in employee training?

To introduce new employees to the workplace, including meeting coworkers and job-shadowing.

What is the typical timeline for employee training and contribution?

Orientation in the first week, learning in the first 1-3 months, and contributing after 6-12 months.

What is a retention bonus?

Extra pay to keep a key employee during critical times.

What is a project bonus?

A reward for completing a project successfully within the deadline.