DECA - Principles of Marketing (Business Management & Administration cluster)

organizational control

the process of establishing and maintaining authority over and throughout a business; what managers and other leaders to ensure the company reaches its goals

output control, behavioral control, clan control

output control

any type of organizational control that focuses on things you can directly manage; specializes in final product or results from an action

ex. sales quotas, potential customers in period of time, number of unused ingredients at the end of the week

behavioral control

describes the policies and systems that manage output control actions

ex. dress codes, safety procedures, attendance policies

clan control

an indirect form of control that uses shared expectations, values and social norms to encourage people to work toward a company's goals; links to company culture and helps the organization reach its goals by motivating the people who work there

ex. company retreats, team meetings, company newsletters

electronic purchase order

a legal document between a buyer and a seller that describes the quantity, price and products ordered, terms of payment, and delivery that is transmitted over the internet

supply chain management

oversees the materials, information, and finances as a product moves through the channel of distribution from manufacturer to consumer; management of the flow of goods

blanket purchase order

A long-term order by a buyer to a seller for supplying specific good(s) or service(s), for a fixed period or in a fixed quantity, at agreed-on prices or pricing method. After its acceptance by the supplier, purchases can be made on an as-and-when-required basis, or as specified in the order, without calling for new purchase orders

total quality management (TQM)

An overall approach to long-term success that views continuous improvement in all aspects of an organization as a process and not as a short-term goal. It aims to transform an organization through changes in the attitudes, practices, structures, and systems. (PHILOSOPHY)

solvency

the ability of an organization to meet its’ financial obligations

quality management

the process of overseeing that a business’ activities and/or tasks meet a certain standard (systems and procedures)

quota

a limit on either the quantity or value of a product that may be imported

business analysis

Investigation into the operations of a business to demonstrate the causes behind the results achieved, and the effects of those results on the business

strategic management

Analysis of the factors associated with customers and competitors and the business itself to provide the basis for maintaining optimum management practices

balance of trade

the difference in value between exports and imports of a nation

channels

the path through which messages are delivered

absolute advantage

the ability for a country or company to produce a product (good or service) more ‘efficiently’ (inexpensively) than others

embargo

a complete ban on specific goods coming into or out of a country

change management life cycle

process through which an organization implements change, using a three-phase process that includes, identify, engage and implement

streamline

implementing a process to make an organization more efficient

organizational goals

the overall objectives, purpose and mission of a business that have been established by its management and communicated to its employees

research report

a document prepared by an analyst or strategist who is a part of the investment research team in a stock brokerage or investment bank; generally have “actionable” recommendations.

economics

attempts to explain how wealth is created and distributed in communities, how people allocate their resources and any matter that deals with human wants and their satisfaction

global trade

the worldwide business that involves making and collecting payments for transactions in goods and services, and transporting them to various markets

six sigma

the strategy involves creating groups of people within the business or organization who have expert status in various methods, and then each project is carried out according to a set of steps in an effort to reach specific financial milestones. A six sigma process is defined as one in which 99.99966% of products created are expected to be statistically free from defects.

data analytics

the science of analyzing raw data to make conclusions about that information (descriptive, diagnostic, predictive, prescriptive)

descriptive analytics

describes what has happened over a given period

diagnostic analytics

focuses on why something happened; involves more diverse data inputs and a bit of hypothesizing

predictive analytics

predicts what is likely going to happen in the near term

prescriptive analytics

suggests a course of action

MOST (business analysis)

Mission

Objective

Strategies

Tactics

primarily internal

PESTLE (business analysis)

Political

Economic

Social

Technological

Legal

Environmental

primarily external

gap analysis

the process of measuring the difference between a company’s present operations (current state) and its ideal performance (desired state)

feasibility analysis

an assessment of the practicality of a proposed plan or project — analyzes the viability of a project to determine whether the project or venture is likely to succeed; also designed to identify potential issues and problems that could arise while pursuing the project

PRE-PROJECT

executive summary

allows business professionals and job candidates to summarize important topics and give themselves the best chance at making strides for their business or careers

arbitration

a private, legally binding process where one or more neutral arbitrators resolve a dispute between two or more parties; usually a faster, more cost-effective and private process when compared to court proceedings; generally allows the parties to be involved in selecting their arbitrator

adversarial (law)

(of a trial or legal procedure) in which the parties in a dispute have the responsibility for finding and presenting evidence

variable expense

expenses that fluctuate based on usage, production volume, or behavior, changing from month to month

ex. groceries, gas

PDCA

plan-do-check-act

plan: recognize an opportunity and plan a change.

do: test the change, carry out a small-scale study.

check: review the test, analyze the results, and identify what you’ve learned

act: take action based on what you learned in the study step

risk retention group (RRG)

a liability insurance company owned by its members, who are businesses or organizations from the same industry or facing similar risks; for workplace liabilities that might not be common in other jobs

captive insurance

a wholly owned subsidiary created by a parent company to provide insurance coverage and risk management for itself and its affiliates

sources of law

constitution, statutes and ordinances, rules and regulations, case

MRO goods

maintenance, repair, operation goods; consumable materials, equipment, and supplies required to keep a business operating, without becoming part of the finished product

ex. gloves, computers, office supplies

capital goods

physical, man-made assets businesses use to produce other goods or services

settlement

an official agreement intended to resolve a dispute or conflict; an agreement that ends a dispute and results in the voluntary dismissal of any related litigation

free-cash flow

cash a company generates after covering its operating expenses and capital expenditures; the cash left over for discretionary spending after subtracting money spent on capital expenditures from the money generated by normal business operations

operating cash flow - capital expenditures

operating cash flow

the cash that's generated from normal business operations—like selling the products a company manufactures

revenue - subtracting operating expenses for the period

working capital

the amount of money a company has available to operate after deducting its current liabilities from its current assets

current assets

items like cash, accounts receivable/customers’ unpaid bills, and inventories of raw materials and finished goods

non-disclosure agreements (NDA)

a legally binding contract—also known as a confidentiality or secrecy agreement—used to protect sensitive, proprietary, or private information shared between parties

4 functions of management

planning, controlling, leading, organizing

compromise/reconciliation (conflict resolution strategy)

involve both parties making concessions to reach a mutually acceptable, partial solution, often described as a "lose-lose" or "split-the-difference" approach

force/direct (conflict resolution strategy)

an assertive, win-lose approach where one party imposes their viewpoint or solution on others, often used for quick, high-stakes decisions

accountability matrix

a project management tool that maps tasks, milestones, or decisions against roles to define who is responsible, accountable, consulted, and informed

tacit knowledge

unspoken, intuitive, and experiential knowledge acquired through personal experience, practice, and observation; knowledge from experience

accrual (accounting)

method of recording revenue when earned and expenses when incurred, regardless of when cash actually changes hands; used to provide a more accurate picture of profitability compared to cash-basis accounting, which only tracks cash movement

credit (CR)

represents the right side, increasing liabilities, equity, and revenue while decreasing assets and expenses (OUTFLOW)

debit (DR)

represent the left side of an account, increasing assets and expenses while decreasing liabilities, equity, and revenue (INFLOW)

digital assets

any digital item with value, ownership, and discoverability; refers to an organizations’ website, social media and email.

ex. data, images, cryptocurrency

tactical planning

a type of planning that involves breaking down a long-term strategic plan into smaller and more distinct short-term plans (1-3 yrs)

long-term planning

defines an organization's 3–10 year vision, goals, and direction

work breakdown structure

hierarchical, deliverable-oriented decomposition of a project into smaller, manageable components, used to define total scope **NOT chronological

project network-modeling step in which the entire job is graphically subdivided into manageable work tasks; displays the relationship of each task to the other tasks, to the whole and the end product as well as the allocation of responsibility, resources required and time available at each stage for project monitoring and management.

network diagram

project workflows to display connections, dependencies, and component relationships

vendor

a person or business that sells something

inventory management

the process of buying and storing materials and products while controlling costs for ordering, shipping, handling and storage

risk management

the process of controlling an individual, business or other organizations opportunity for damage, loss or injury to ensure the safety of the community, environment and legal responsibilities

process control

activities involved in ensuring a process is predictable, stable, and consistently operating at the target level of performance with only normal variation

managerial control

a process of achieving defined goals within an established timetable, and usually understood to have three components: setting standards, measuring actual performance, and taking corrective action

change management

utilizes a systematic approach to implement change within an organization

business services

accounting, design, maintenance, printing, and supply of temporary personnel, etc., provided by specialized firms to other firms

operations

jobs or tasks consisting of one or more elements performed typically in one location

chain of command

the order in which authority and power in an organization is delegated from top management to every employee at every level of the organization

project

planned set of interrelated tasks to be executed over a fixed period and within certain cost and other limitations

risk retention

a strategy in which an entity sets aside a sum as a protection against a probable loss, instead of transferring the risk by purchasing an insurance policy

project management software

software used for project planning, scheduling, budgeting, and documentation; also used for collaboration and communication between project participants

comparative advantages

concept in economics that a country should specialize in producing and exporting only those goods and services which it can produce more efficiently (at lower opportunity cost) than other goods and services (which it should import)

directing

the process of building an effective work climate and creating opportunity for motivation, supervising, scheduling, and disciplining

rules of conduct

a written set of guidelines issued by an organization to its workers and management to help them conduct their actions in accordance with its primary values and ethical standards

purchasing

to acquire goods or services to accomplish the goals of an organization

business equipment

an asset used for the operating functions of a company

Capability Maturity Model Integration (CMMI)

a process improvement technique for evaluating how efficiently a company is able to deliver technology products to its customers

business supplies

the materials that are consumed within an office setting during normal business operations

quality management framework

the act of overseeing all activities and tasks needed to maintain a desired level of excellence

data mining

reviewing very large amounts of data for useful information; often uses advanced statistical tools to determine trends, patterns and relationships; also referred to as data surfing

knowledge management

strategy designed to identify, document and share an organization’s intellectual assets to benefit performance

competitive advantage

a circumstance that puts a company in a favorable or superior business position

information technology infrastructure library (ITIL)

a comprehensive set of documents, which defines best practices and accepted techniques in the Information Technology community

controlling

the process of setting standards and evaluating performance

business risk

the probability of loss inherent in an organization’s operations and environment that may impair its ability to provide returns on investment

cash-flow statements

a financial statement used by organizations that shows the cash in and out for a set period of time

free trade

commercial trade between nations through free market principles and without regulation

ethics

the basic concepts and fundamental principles of decent human conduct

project management

the use of knowledge, skills and techniques to execute a temporary group activity designed to develop a product, service or outcome both effectively and efficiently

digital customer data

includes information that a business maintains about customers – such as credit card numbers, passwords and transactions

economic risk

the probability that conditions like exchange rates, government regulation, or political stability will affect an investment, usually one in a foreign country.

internal business correspondance

any written or digital communication exchanged by two or more parties within an organization

risk avoidance

technique of risk management that involves taking steps to remove a hazard, engage in alternative activity, or otherwise end a specific exposure

seller’s market

a market condition characterized by a shortage of goods available for sale, resulting in pricing power for the seller

when to use credit card vs. debit card

credit cards for online shopping, travel, large purchases, and to earn rewards, as they offer superior fraud protection and build credit

debit cards for small, daily purchases, ATM cash withdrawals, and to avoid debt or interest fees

the choice depends on maximizing security and perks versus maintaining strict budget control

productivity

Productivity = Total Output / Total Input

measuring what you create (output) versus what resources you use (input, like hours or money) to create it, often expressed as units per hour or revenue per employee