UCI Management 1 Final Study Guide

The U.S. economy is dominated by the

Service Sector

production management

how to use resources to produce goods (manufacturing)

Operations Management

how to use resources to produce goods and provide services
GOAL: satisfy customers

Form Utility

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

Process Manufacturing

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

Assembly Process

that part of the production process that puts together components

continuous process

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

intermittent process

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

computer-aided design (CAD)

the use of computers in the design of products

computer-aided manufacturing (CAM)

the use of computers in the manufacturing of products

computer-integrated manufacturing (CIM)

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.
- Less workers
- less resources
- decrease in defects
- lower inventory

mass production

Process of making large quantities of a limited number of products quickly and cheaply

mass customization

The ability of an organization to tailor its products or services to the customers' specifications

Advantages of Robots in Manufacturing

- Ideal for repetitive tasks that require precision. - Can perform hazardous tasks.
- Do not tire or suffer from lack of concentration. - - Cost effective as can operate 24/7.

Important factors for location

- availability of qualified labor force
- transportation
- quality of life
- infrastructure

Technological impacts on location

- workforce can telecommute
- lessens significance of facility location
- internet makes it possible for companies to collaborate easier

facility layout

the physical arrangement of resources (including people) in the production process

Materials Requirement Planning (MRP)

getting necessary material and resources in the quantity when needed

Enterprise Resource Planning (ERP)

Enterprise wide database and software system that integrates all business functions
- leading ERP system: SAP

Purchasing

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

Inventory

- finished or semi-finished products
- raw materials and components
- tradeoff between storing cost and shortage cost

Just-In-Time Inventory Control

- holds inventory to a minimum
- relies on close relationship with suppliers

Quality Control

- getting quality products is a continuous process
- started with statistical process control(SPC)
- moved to modern statistical quality control(SQC)
--> monitors all phases of production

Six Sigma

Sets a benchmark of 3.4 defects per million

Program Evaluation and Review Technique (PERT)

- Divides a project into individual tasks and their relationships
- estimates project duration and critical path

Gantt Chart

monitors different phases of a project over time

The usefulness of information depends on

- Quality
- Completeness
- Timeliness
- Relevance

Big Data

amount of information and variety of information

Data Analytics

collecting, organizing, storing and analyzing information to create competitive advantages

Types of Networks

- Internet (public)
- Intranet (private)
- Extranet (semi-private)
- Virtual Private Networks(VPN)

Net Neutrality

data on the internet should be treated equally

Development of the Web

Web 1.0 - Static
Web 2.0 - Social
Web 3.0 - Personal
- Smart
- Mobile
- Immersive
- IOT

Marketing Mix (4 P's)

- Product
- Price
- Place
- Promotion

Production Era

Focus on increasing productivity, virtually unlimited demand

Selling Era

With mass production, focus shifted to advertising and selling

Marketing Concept Era

During the prosperous post-war years, modern marketing was born to focus on customers, service, and profit

Customer Relationship Marketing

develop long-term relationships with customers

Mobile/on-demand Era

Creatively use mobile technology and social media

Primary Data

data collected for the first time and specific purpose

Secondary Data

data previously collected and being reused
- the internet has revolutionized access to this data

Consumer Marker(B2C)

goods and services are bought for personal consumption and use

Business-to-business (B2B)

goods and services are bought for business use

Market Segmentation

dividing potential customers into groups of similar people, or segments. Can be based on:
- demographic
- geographic
- benefit
- volume

Target Marketing

focus on most profitable customer group

Mass Marketing

using a single marketing strategy to reach all customers

Niche Marketing

focuses on small, but very profitable market segments

One-to-one marketing

an individualized marketing method that utilizes customer information to build long-term, personalized, and profitable relationships with each customer

Relationship Marketing

a strategy that focuses on keeping and improving relationships with current customers

How does the B2B market differ from the consumer market?

- fewer but larger customers
- buyers are more rational and less emtional
- more reliance on personal selling than advertising

Total Product Offer

Everything consumers evaluate when deciding whether to buy something, both intangible and tangible

Value Enhancers

add to the core product and make it into an augmented product.
- branding
- packaging
- advertising

Product Line

a group of closely related product items
- Ex: the iPod shuffle, nano, classic, touch

Product Mix

consists of all of the product lines offered by an organization

Product Differentiation

a positioning strategy that some firms use to distinguish their products from those of competitors.
- can be real or perceived differences through:
- Branding
- Pricing
- Advertising
- Packaging

Convenience products

products bought frequently without much deliberation

Shopping products

products bought less frequently, consumers "shop" around

Specialty products

unique products with virtually no substitutes

Unsought products

products that potential customers don't yet want or know they can buy. Unexpected expenses.
- Ex: car towing

Industrial products

used by businesses mostly, but can be both consumer and business products
- more personalized, direct selling

Functions of packaging

1. contain and protect
2. attract attention
3. facilitate storage, use, and convenience
4. provide information

Types of Brands

- Manufacturers brand Ex: Sony
- Dealer brands Ex: Kirkland
- Generic brands
- Knockoff brands

brand equity

the value of a brand name

Developing brand equity

- Brand awareness
- Brand association Ex: celebrities
- Brand Preference
- Brand loyalty

Brand Managers

aka product managers
- manage all the elements of marketing a brand

Product Life Cycle

Phases:
- Introduction
- Growth
- Maturity
- Decline

Cost-based pricing

setting prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for effort and risk

Target costing

pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met

competition-based pricing

setting prices based on competitors' strategies, prices, costs, and market offerings

break-even analysis

a technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output

high/low pricing

a pricing strategy that relies on the promotion of sales, during which prices are temporarily reduced to encourage purchases

channel of distribution

sequence of market intermediaries

Types of market intermediaries

Agents and Brokers - facilitate deals between sellers and buyers without taking ownership of the product

Wholesalers - sell to other businesses

Retailers - sell to customers

Forms of Utility

- form
- time
- place
- possession
- information
- service

Agents tend to have ________ with clients

long-term relationships

_______ usually hired on a temporary basis

brokers

Intensive Distribution Strategy

designed to get products into as many outlets as possible.
- mostly convenience products

Selective Distribution Strategy

provide high quality sales service in selected locations
- mostly shopping goods

Exclusive Distribution Strategy

one retailer often has exclusive rights in a region
- mostly for specialty goods

Supply Chain

all parties and activities involved between raw materials and consumers

Value Chain

Effective and sufficient supply chains

promotion mix

the various techniques businesses use to sell their products

Advertising

- paid for by an identified sponsor
- non-personal
- informs consumer
- can be costly

What is the dominant medium for advertising?

TV

Direct Selling

- face-to-face promotion of product
- especially important in B2B

Accounting is often referred to as the

language of business

Managerial Accounting

- Internal focus
- support managerial decision making

Financial Accounting

- mainly external focus
- provide accurate and relevant info

Auditing

Reviewing and evaluation accounting info

Private Accountants

work for one particular organization

Public Accountants

provide account services to other businesses

Annual Report

provides comprehensive information about organization
- financial info often "certified" by unbiased auditor

Sarbanes-Oxley Act

A law passed by Congress that requires the CEO and CFO to certify that their firm's financial statements are accurate.
- established public-company accounting oversight board
- protects whistleblowers

Generally Accepted Accounting Principles (GAAP)

Sets standards defined by the Financial Accounting Standards Board (FASB)

Double-Entry Bookkeeping

Bookkeepers record all transactions in two places so they can check one list of transactions against the other for accuracy.

the 3 main financial statements

balance sheet, income statement, statement of cash flows

Fundamental Accounting Equation

Assets = Liabilities + Owner's Equity

order of assets on balance sheet

- in order of liquidity
- current assets --> can be turned into cash within a year
- fixed assets --> long-term assets
- intangible assets --> Ex: patents

Income Statement

reports the profitability of a firm over a period of time
- Revenues
- Gross profit = Revenues - cost of goods sold
- net income before taxes = gross profit - operating expenses
- net income/loss = net income before taxes - taxes