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Definition
| an organization that provides goods or services |
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| core skills and practices that increase the competitiveness of an organization and make it different from its competitors |
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| New niche in an established market (a category of distinctive competency) |
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Definition
Identifying a segment of the market that is not currently being exploited by other
companies |
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| New market (a category of distinctive competency) |
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Definition
| Identifying new markets by either transferring a product/service from one established geographic market to another, or by creating entirely new industries |
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a set of products that are used
complementary to one another |
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| the value derived from a product ecosystem is to enable other products to use your product interface as a medium to consume their already created product |
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Definition
ethical or unethical behavior by employees
(managers, staff, etc.) in the context of their jobs |
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Term
| corporate social responsibility |
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Definition
the concern of a business for the
welfare of society
The overall way in which a business attempts to balance its commitments to
relevant groups and individuals in society (or, in other words, to its organizational stakeholders) when making decisions |
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| Who are organizational stakeholders? |
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Definition
• Customers
• Employees
• Owners/Investors
• Local (and global) community
• Suppliers |
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Definition
the practical application of ethical
concerns for the benefit of society |
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| Four dimensions of CSR (corporate social responsibility) |
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Definition
| Economic (be profitable), legal (obey laws), ethical (do what's right), philanthropic (give back) |
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Definition
Main argument: A company has no “social responsibility” to the public or
society; its only responsibility is to its shareholders.
Why- 1. expensive 2. using company money for your own purposes (social causes) 3. social change shld be done by indivs |
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Term
| Arguments for CSR (corporate social responsibility) |
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Definition
For:
• Address social issues brought on by business
• Wards off government intervention
• Businesses well equipped to address issues in dynamic and efficient way
• Public support (additional profits) |
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| Arguments against CSR (corporate social responsibility) |
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Definition
• Constrains the classic economic goal of profit maximization
• Business not equipped to handle social activities
• Dilutes primary purpose of business
• Limits the power of business |
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Term
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Definition
a set of activities, institutions and processes for creating, communicating, delivering, and exchanging offerings that have value
for customers, clients, partners, and society at large |
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Term
| Three Types of Competition |
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Definition
1. Substitute product (choice among similar products, like vacations)
2. Brand competition (benefits of product over another)
3. International competition (domestic vs foreign products) |
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Term
| competitive advantage (or differential advantage) |
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Definition
| a set of unique features of a company and its products that are perceived by the target market(s) as significant and superior to those of the competition |
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| 3 Types of Competitive Advantage |
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Definition
1. cost (maintain lower costs for higher profit)
2. product or service differentiation (brand names, service quality, etc)
3. niche (serving a specific part of the population) |
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Definition
| the systematic and objective study of customers and competitors in an industry |
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| Primary research (type of market research) |
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Definition
| Provides results specifically about your company |
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| Secondary research (type of market research) |
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Definition
| Applying previously completed studies to your situation |
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| Four Methods of Primary Market Research |
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Definition
1. Observation (watching and recording consumer behavior)
2. Surveys
3. Focus groups
4. Experimentation (using different sample groups to test variations of a product) |
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Definition
| Factors outside an organizations boundaries or control that marketing decisions need to consider |
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| Sociocultural Environment |
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Definition
| This refers to the buying behaviors, the customs, values and demographic characteristics of the society in which the organization functions |
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Definition
| Economic conditions/variables (e.g., inflation, interest rates, employment rates, recessions, etc.) that influence spending patterns by consumers, businesses and governments |
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Definition
| all the marketing activities that a business will use to achieve its marketing goals. Product, Price, Place, Promotion |
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Definition
| a comprehensive system for collecting, analyzing, and communicating financial information (to business owners, employees, the public, regulatory agencies, etc.) |
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| The primary role of accounting |
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Definition
| Provide tangible information on the financial strength of the organization |
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Term
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Definition
1. Financial: (concerned with external user’s of a company’s financial information, such as consumer groups, unions, stockholders, suppliers, creditors, and government agencies)
• Reports (e.g., income statements and balance sheets) are focused on the
financial activities of the company as a whole, rather than individual departments
2. Managerial: (serves internal users, such as managers and employees)
• Used to make departmental decisions, monitor projects, set performance goals,
and plan future activities |
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Term
| 3 Broad Categories of Financial Statements: |
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Definition
• Income Statements (PROFITABILITY)
• Statements of Cash Flows (LIQUIDITY)
• Balance Sheets (NET WORTH) |
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Term
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Definition
| (Profit-and-Loss Statement) – financial statement that lists an org’s annual revenues and expenses resulting in a figure showing its annual profit or loss (or, bottom line) |
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Term
| timeframes for a balance sheet versus an income statement |
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Definition
• Balance sheet: financial condition at a specific point in time
• Income statement: financial results during a period of time, or reporting period (e.g., a month, quarter, or year |
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Term
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Definition
| Financial statement describing an org’s yearly cash receipts and cash payments |
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| Three categories of cash flows on the statement of cash flows |
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Definition
• Cash Flows from Operations – cash transactions involved in buying and selling goods and services
• Cash Flows from Investing – includes cash receipts and payments from buying and selling stocks, bonds, property, equipment, and other productive assets
• Cash Flows from Financing – reports net cash from all financing activities such as
inflows from borrowing or issuing stock, and outflows for payment of dividends and
repayment of borrowed money |
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Term
| Why is financial information like cash flows important to creditors and stockholders? |
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Definition
| When they know how an org obtained and used funds throughout the year, they can more easily interpret year-to-year changes in the balance sheet and income statement and determine whether the business has access to the cash needed to pay off its debts |
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Term
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Definition
| financial statement that supplies detailed information about an org’s assets, liabilities, and owner’s equity |
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Term
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Definition
Assets = Liabilities + Owner’s Equity
• Used by accountants to balance data for the org’s financial transactions at various points in the year
• Underlies all record-keeping procedures
• Must be in balance after each financial transaction (e.g., payments to suppliers, sales to customers, wages to employees, etc.) |
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Term
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Definition
Economic Resources (things of value owned by person or business) example:
• Land • Buildings • Property/Equipment
• Office Supplies • Patents • Accounts Receivable (payments due to the
company) |
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Term
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Definition
Financial Obligations (debts; amounts owed to 3rd parties) example:
• Salaries/Wages Payable
• Rent Payable
• Taxes Payable |
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Term
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Definition
Owners’ Claims (on the assets of the business) (Amount of money the owner would receive if they sold all the org’s assets and paid all of its liabilities) example:
• Retained Earnings
• Preferred Stock
• Common Stock
• Capital Stock
• Dividends |
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| the main idea, or the simple intuition, behind the accounting equation |
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Definition
| everything the company has belongs to the owners or someone else |
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Term
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Definition
LLM = Large Language Model
GPT = Generative Pre-Trained Transformer
(both neural nets) |
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Term
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Definition
| An ML algorithm that is structured like (and therefore functions like?) the human brain. Best at predicting |
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Definition
| Obtaining funding for the firm’s operations and investments and seeking an “optimal” balance between debt (borrowed funds) and equity (funds raised through the sale of ownership in the business) |
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Term
| What do new vs experienced firms need financing for? |
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Definition
• NEW Firms: Starting costs
• EXPERIENCED Firms: Finance growth and working capital |
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Term
| How do organizations raise the funding they need? |
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Definition
• By borrowing money (debt),
• By selling ownership shares (equity)
• By retaining earnings (profits) |
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Term
| What are the most common sources of funding for a small business? |
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Definition
• Family and friends
• Personal savings
• Lending institutions (i.e. “Banks”)
• Investors (i.e. Venture Capital, Angel Investment)
• Governmental agencies |
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Term
Commercial Lenders (i.e. “Banks”)
• Much more likely to finance ______ businesses than they are _______ |
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Definition
established
startups
...why? - Federal banking laws prohibit them from risking the savings from depositors |
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Term
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Definition
Due within one year (whereas long-term loan mature after one year)
-Short-term financing is shown as a current liability on the balance sheet and is used to finance current assets and support operations
-can be secured or unsecured loans |
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Term
| Secured and unsecured loans |
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Definition
• Unsecured loans: based on the organization’s creditworthiness and the lender’s previous experience with them
• Secured loans: loan connected to a piece of collateral that is owned by the business that is taking out the loan |
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Term
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Definition
obtained by selling new ownership shares (external financing), by retaining earnings (internal financing), or through venture capital (external financing)
• Major advantages: there is no loss of
ownership; interest deductible for taxes
• Major drawbacks: Financial risk (the chance that the firm will be unable to make scheduled interest and principal payments): The lender can force a borrower that fails to make debt payments into bankruptcy |
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Term
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Definition
includes term loans, bonds, and mortgage loans
• Major advantage: Form of permanent financing that places few restrictions on the firm (they’re not required to pay dividends or repay the investment.
• Major drawback: Equity is more costly than debt. Unlike the interest on debt, dividends to owners are not tax deductible |
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Term
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Definition
• An increasingly popular form of equity financing
• NOT a common source of funding
• Available to exceptional start-ups with a great likelihood of high value within the next few years
• Typically reserved for new growth industries, high-technology products, etc in new markets that project increasing sales |
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Term
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Definition
individuals or groups who invest their own money in companies
• More common than venture capital
• Angel investors invest during the earlier growth stages |
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Term
| Human resource management |
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Definition
| the process of hiring, developing, motivating, and evaluating employees to achieve organizational goals |
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Term
| Google's “Project Aristotle” |
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Definition
Studied how team composition and team dynamics impact team effectiveness
• 180 teams (115 engineering teams and 65 sales teams)
• Included mix of high and low performing teams
Findings: who is on a team matters less than how they work together |
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Term
| Google’s Five Dynamics of a Successful Team from "Project Aristotle" |
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Definition
1. Psychological Safety: Team members feel safe to take risks and be vulnerable in front of each other
2. Dependability: Team members get things done on time and meet high expectations of the organization
3. Structure and Clarity: Team members have clear roles, plans, and goals.
4. Meaning: Work is personally important to team members.
5. Impact: Team members think their work matters and creates change. |
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Term
| Things that Google found didn't matter on a Successful Team (from "project aristotle") |
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Definition
• Colocation of teammates (sitting together in the same office)
• Consensus-driven decision making
• Extroversion of team members
• Individual performance of team members
• Workload size
• Seniority/Tenure
• Team size |
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Term
| internal and external labor markets (sources of job applicants) |
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Definition
• Internal: potential applicants currently employed by the organization
• External: potential applicants outside the organization |
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Term
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Definition
| A study of the tasks required to do a job well |
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Term
| Job Description and Specification: |
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Definition
Job description: the tasks and responsibilities of a job
Job specification: the skills, knowledge, and abilities a person must have to fill a job (i.e., the required qualifications) |
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Definition
Direct pay: salary
Indirect pay: pensions, health insurance, social security, etc |
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Definition
Data- a statistic/numbers
Information- interpreted data (w/ context) |
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Term
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Definition
Done to reassure ourselves and have an easier world view to digest
Mental shortcut
Help limit risk
Being wrong is way more difficult and mentally taxing
Biases simplify the world around us |
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Term
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Definition
| For example, “contains 10% fat” is seen as worse than “90% fat free” |
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Term
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Definition
| Herd behavior. We want to do it because everyone else is |
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Term
| KPIs (Key performance Indicators) |
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Definition
Objective measures of the performance of your business.
• They provide crucial information on sales, marketing, finances, productivity, or any other organizational goals as defined by the company.
• They enable you to make changes
A good KPI is easily quantified |
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Term
| Examples of KPIs (Key performance indicators) |
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Definition
-Profit
-Number of new customers
-Monthly website traffic
-Employee satisfaction
-Philanthropic contributions |
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