COMM 1010 Final Review Summary
Chapter 6
•Sole Proprietorship: The advantages of sole proprietorships include ease of starting and ending the business, being your own boss, pride of ownership, retention of profits, no special taxes, and less regulation than for corporations.
•Partnerships: General partners are owners (partners) who have unlimited liability and are active in managing the company. Limited partners are owners (partners) who have limited liability and are not active in the company.
•Advantages of corporations: more money for investment, limited liability, size, perpetual life, ease of ownership change.
•Franchises: benefits include a nationally recognized name and reputation, a proven management system, promotional assistance, and pride of ownership.
Co-operatives are organizations owned by members/customers. Some people form co-operatives to give members more economic power than they would have as individuals
Chapter 7
•Definition of Small Business & Entrepreneurship
•Small business: Independently owned, limited size, non-dominant in its field
•Entrepreneurship: Starting and running a business, often with an innovative idea
•Motivations for Entrepreneurship
•Opportunity, profit, challenge, independence, family influence
•Attributes of Successful Entrepreneurs
•Self-directed and self-nurturing
•Action-oriented and highly energetic
•Tolerant of uncertainty and quick learners
•Importance of Small Business to the Economy
•Maintains Canadian identity and economic independence
•Significant contribution to employment and innovation
•Ways to Enter Entrepreneurship
•Learn from others and gain experience
•Buy an existing business or franchise
•Start from scratch or take over a family business
•Common Small Business Challenges
•Insufficient capital, underpricing/overpricing, time management
•Financing Options
•Bootstrapping, Angel Investors, Venture Capital, Crowdfunding
•Going Global
•Opportunities and challenges for small businesses entering global markets
Chapter 8
•Management: Managers must practice the art of getting things done through organizational resources.
•Four functions of management
•Planning – achieving organizational goals
•Organizing – for success
•Leading – different from managing
•Controlling – five steps
•The three levels of management require different skills
•Top managers require more conceptual skills, middle managers require more human relations skills and supervisory managers require more technical skills
•Leadership is creating a vision for others to follow and is different than management autocratic, participative (Democratic) and free-rein
Chapter 9
•Historical theories: Fayol and Weber
•Fayol introduced principles such as unity of command, hierarchy of authority, division of labour, subordination of individual interests to the general interest, authority, clear communication channels, order, and equity.
•Weber added principles of bureaucracy such as job descriptions, written rules and decision guidelines, consistent procedures, and staffing and promotions based on qualifications.
•Issues involved in structure:
•Specialization versus decentralization,
•span of control
•tall versus flat organization structures
•departmentalization
•Organizational models
1)line organizations
2)line-and-staff organizations
3)Matrix style
•Organizational (or corporate) culture is the widely shared values within an organization that foster unity and co-operation to achieve common goals.
Chapter 11
•Frederick Taylor’s Scientific Management: Emphasizes efficiency through time, methods, and rules of work.
•Elton Mayo’s Hawthorne Effect: Highlights human and psychological factors influencing productivity.
•Maslow’s Hierarchy of Needs: Motivation stems from satisfying unmet needs across five levels: physiological, safety, social, esteem, and self-actualization.
•Herzberg’s Motivating and Hygiene Factors: Differentiates between factors that drive satisfaction (motivators) and those that prevent dissatisfaction (hygiene factors).
•McGregor’s Theory X and Theory Y: Contrasts managerial assumptions about employee motivation, from control-oriented to empowerment-driven approaches.
•Intrinsic vs. Extrinsic Rewards: Recognizing good work internally (intrinsic) and externally (extrinsic) motivates employees.
•Goal-Setting Theory & MBO: Encourages ambitious yet achievable objectives aligned with organizational goals.
•Expectancy and Equity Theories: Stress fairness and clarity in performance-reward relationships.
Strategies for Motivation:
•Job Enrichment: Enhances tasks for skill variety, autonomy, and significance.
•Open Communication: Builds trust through transparent information sharing.
Personalization: Adapts motivational approaches across cultures and generations
Chapter 12
•HRM: Process of recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals.
•HR Planning Steps: Prepare HR inventory, conduct job analysis, assess future HR demand and supply, establish strategic plans
•Key HR Functions: Recruitment & selection, employee training & development, performance appraisal, compensation & benefits, scheduling and career management
•Training Methods include on-the-job, off-the-job, and online training as well as job simulation, orientation and onboarding
•Flexible Work Options include flextime, compressed workweeks, job sharing and home-based work
•Employee Development methods include mentorship and networking, career advancements through promotions
•Legal Considerations include employment equity, gender wage gap, pay equity
Chapter 14
Different Eras of Marketing
•Production Era (Up to Early 1900s):
•Focused on maximizing production to meet high demand.
•Selling Era (1920s–1950s):
•Shifted focus to selling and advertising due to overproduction.
•Marketing Concept Era (1950s–1990s):
•Adopted a three-part philosophy: customer orientation, service orientation, profit orientation.
•Customer Relationship Era (1990s–Present):
Emphasis on Customer Relationship Management (CRM)
Four Ps of Marketing (Marketing Mix):
•Product: Develop offerings that meet consumer needs.
•Price: Set appropriate prices for value exchange.
•Place: Distribute products to target markets effectively.
•Promotion: Use advertising, PR, and sales techniques to motivate purchases.
Understanding Consumer Behaviour:
•Investigate consumer thought processes and purchase behavior and adjust marketing strategies to reflect cultural, demographic, and psychographic factors.
•Relationship Marketing:
•Shift from mass production to custom-made offerings.
Chapter 15
•Total Product Offer: Everything consumers evaluate when purchasing, including quality, price, and packaging.
•Product Differentiation: Real or perceived differences to stand out in the market.
•Branding and Brand Equity: Importance of brand value and loyalty for long-term success.
•Pricing Strategies: Target profit and market share, cost-based and demand-based approaches, competitive pricing and breakeven analysis.
•Retail Distribution: Intensive, selective, and exclusive strategies and non-store retailing: online, kiosks, and direct selling.
• Promotional Mix Components include:
•Advertising: Paid communication to inform and persuade.
•Personal Selling: Face-to-face interactions for relationship building.
•Sales Promotion: Short-term incentives to boost interest.
•Public Relations: Managing public perception.
•Direct Marketing: Direct communication with consumers.
• Channels of Distribution
•Roles: Intermediaries like agents, wholesalers, and retailers with the goal of efficient transportation and storage of goods.
•Strategies: Supply chain integration for seamless delivery and non-price competition focusing on attributes like style and durability.