Five factors of
production: Land
Labor
Capital
Entrepreneurship
Knowledge
Resource development- the study of how to increase resources and to create favorable
conditions for resource harvesting
Gross output- A measure of total sales volume at all stages of production
Disinflation- price increases are slowing (the inflation rate is
declining) Deflation- prices are declining
Stagflation- economy is slowing but prices are still going up
Monetary policy- management of money supply and interest rates by the Federal Reserve
Fiscal policy- increasing or decreasing taxes or government spending
Business cycle- Economic boom, Recession, Depression, Recovery
Types of partnerships:
General- All owners share in liability
Limited- One or more general partners and one or more limited partners
(Limited partner=No responsibility/liability beyond money invested)
Master limited- Traded like a corporation, but taxed like a partnership
Merger- Two firms forming one company
Acquisition- One company purchases
another
Types of mergers:
Vertical- Soft drink and sugar (different
stages) Horizontal- Soft drink and water
Conglomerate- Soft drink and snack food (unrelated)
Affiliate marketing- online marketing strategy in which a business rewards people for each
visitor the affiliate sends to its website
Four functions of management:
Planning- Setting goals and
strategies Leading-
Organizing- Employee allocation
Controlling- Measuring results against
goals
Types of planning:
Strategic- long term planning
Tactical- medium range
Operational- short term
Contingency- “What if” planning
Span of control- The optimal number of subordinates a manger should supervise
Matrix organization- Departments come together to complete a single
project Cross-Functional Self-Managed-Teams- Medical team during surgery
Computer-Integrated-Manufacturing- CAD+CAM
MRP- Uses sales to make sure needed parts and materials arrive at the right
time ERP- Combines MRP, finance, and ordering into single software
Job description- Talks about the job
Job specifications- Talks about educational and other skills required by employee
Human Resource Planning:
Preparing a human resource inventory of the organization’s employees
Preparing a job analysis
Assessing future demand
Assessing future supply
Establishing a plan for recruiting, educating, and paying employees
Marketing Eras:
Production
Selling
Marketing Concept
Customer relationship
Mobile
4 P’s of Marketing
Product
Price
Place
Promotion
Market segmentation- dividing the market into groups with similar characteristics
Distributed Product Development- handing off parts of the innovation process to other firms
Product Line- Diet Coke, Diet Vanilla Coke, Diet Cherry Coke
Product Mix- all the product lines offered by a company
Manufacturer’s Brands- brand names that distribute nationally (Xerox, Sony, Dell)
Dealer Brands- Products that carry the name of distributor or retailer (Kenmore)
Target costing- Using price as an input to the development process
Merchant wholesalers- Independently owned firms that take title to the goods they handle
Corporate distribution system- one firm owns all the organizations in the channel of distribution
Promotion mix-
Advertising
Personal selling
Public relations
Sales promotion
