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169 Cards in this Set
- Front
- Back
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absolute advantage
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country can maintain a monopoly or can produce the product at a lower cost than any competitor
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comparative advantage
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country can supply it more efficiently and at a lower price than it can supply other goods, compared with the outputs of other countries
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balance of payments
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the overall flow of money into or out of a country
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floating exchange rates
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currency traders create a market for the world's currencies based on each country's relative trade and investment prospects
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hard currencies
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can easily be converted into other currencies (euro, dollar, yen)
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infrastructure
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basic systems of communication, transportation and energy facilities
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quota
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limits the amount of particular products that countries can import during specified time periods (quantities or values)
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dumping
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a company sells products abroad at prices below its cost of production, or exports a large quantity of a product at a lower price than the same product in the home market and drives down the price of the domestic product
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exchange controls
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imposed through a central bank or government agency-- firms that gain foreign currencies through exporting are required to sell them to the central bank or another agency-- allows authority to allocate, expand or restrict foreign exchange in accordance with national policy
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GATT (General Agreement on Tariffs and Trade)
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sponsored a series of negotiations called rounds that reduced worldwide tariffs and other barriers (1947)
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WTO (World Trade Organization)
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international institution that monitors GATT agreements and mediates international trade disputes (1995)
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World Bank
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primarily funds projects that build or expand nations' infrastructure such as transportation, education, and medical systems and facilities (1996)
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IMF (International Monetary Fund)
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promotes trade through financial cooperation and eliminate barriers: makes short-term loans to member nations that are unable to meet their expenses
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NAFTA (North American Free Trade Agreement)
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1994 agreement between the US, Canada, and Mexico to break down tariffs and trade restrictions
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CAFTA-DR (Central America-Dominican Republic Free Trade Agreement)
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Created a free-trade area among the US, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua. Ends most tariffs.
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EU (European Union)
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combines 27 countries to form a huge common market. promotes economic and social progress
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Indirect exporting
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A company manufactures a product that becomes part of another product sold in foreign markets
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Direct exporting
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when a company seeks to sell its products in markets outside its own country
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Export management company
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offers advice and expertise to help exporters complete paperwork, make contacts and comply with local laws
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Offset agreement
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Matches a small business with a major international firm to help a new exporter
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countertrade
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payments made in the form of local products, not currency
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foreign licensing agreement
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one firm allows another to produce or sell its product, or use its trademark, patent, or manufacturing processes, in a specific geographical area
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subcontracting
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hiring local companies to produce, distribute, or sell goods or services
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Offshoring
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the relocation of business processes to a lower-cost location overseas
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Joint ventures
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allow companies to share risks, costs, profits, and management responsibilities with one or more host country nationals
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overseas division
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a thing a company sets up in order to conduct a significant amount of its business overseas
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MNC (multinational corporation)
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an organization with significant foreign operations
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global business/standardization strategy
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where a firm sells the same product in essentially the same manner throughout the world
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multidomestic business/adaptation strategy
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strategy where a firm treats each national market in a different way
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Electronic data interchange (EDI)
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computer-to-computer exchanges of invoices, purchase orders, price quotations, and other sales information between buyers and sellers
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extranet
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a secure network used for e-business and accessible through an organization's website; available to external customers, suppliers, and other authorized users.
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private exchange
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a secure website at which a company and its suppliers share all types of data related to e-business, from product design through order delivery
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electronic exchange
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an online marketplace that brings buyers and sellers together and caters to a specific industry's needs
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e-procurement
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web-based systems that enable all types of organizations to improve the efficiency of their procurement processes
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electronic storefronts
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websites that sell items to consumers
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encryption
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the process of encoding data for security purposes
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Secure Sockets Layer (SSL)
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technology that encrypts information and verifies the identity of senders and receivers
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electronic wallet
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a computer data file that contains electronic cash and credit card info, owner identification and address
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phishing
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high-tech scam that uses authentic looking email or pop-up ads to get unsuspecting victims to reveal personal information
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vishing
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voice phishing: email, text message, or telephone call supposedly from a credit card company
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pure-play dot-com retailers
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those without traditional stores or catalogs
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channel conflicts
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disputes between producers, wholesalers, and retailers
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newsgroups
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noncommercial internet versions of forums
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banner ads
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small messages placed in high-visibility areas of frequently visited websites (most common form of internet advertising)
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search marketing
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paying search engines a fee to make sure that the company's listing appears toward the top of the search results
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web-to-store shoppers
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a group that uses the internet to research and save time on purchases made in stores
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click-through rates
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the percentage of people presented with a banner ad who click on it
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conversion rate
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percentage of visitors to a website who actually make a purchase
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analytic production system
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reduces a raw material to its component parts in order to extract one or more marketable products
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synthetic production system
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combines a number of raw materials or parts or transforms raw materials to produce finished products
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continuous production process
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generates finished products over a lengthy period of time
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intermittent production process
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generates products in short production runs, shutting down machines frequently or changing their configurations to produce different products
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field robots
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robots that assist people in nonmanufacturing, often hazardous, environments
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computer-aided design (CAD)
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a process that enables engineers to design parts and buildings on computer screens faster and with fewer mistakes than they could achieve working with traditional drafting systems
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computer-aided manufacturing (CAM)
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electronic tools to analyze CAD output and determine necessary steps to implement the design, followed by electronic transmission of instructions to guide the activities of production equipment
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flexible manufacturing system (FMS)
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a production facility that workers can quickly modify to manufacture different products
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computer-integrated manufacturing (CIM)
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a production system in which computers help workers design products, control machines, handle materials, and control the production function in an integrated fashion
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process layout
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facility layout that groups machinery and equipment according to their functions
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product layout (assembly line)
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facility layout that sets up production equipment along a product-flow line, and the work in process moves along this line past workstations
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fixed-position layout
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facility layout that places the product in one spot, and workers, materials, and equipment come to it
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customer-oriented layout
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facility layout that arranges its facilities to enhance the interactions between customers and its services
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inventory control
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operations managers balance the need to keep stocks on hand to meet demand against the costs of carrying inventory
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perpetual inventory
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a system that continuously monitors the amounts and locations of a firm's stocks
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vendor-managed inventory
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where companies hand over their inventory control functions to suppliers
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just-in-time system
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broad management philosophy that seeks to eliminate anything that does not add value in operations activities by providing the right part at the right place and just the right time
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materials requirement planning (MRP)
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a computer-based production system that lets a firm ensure that it has al the parts and materials it needs
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production control
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creates a well-defined set of procedures for coordinating people, materials, and machinery to provide maximum production efficiency
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routing
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determines the sequence of work throughout the facility and specifies who will perform each aspect of the work at what location
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scheduling
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managers determine how long each operation in the production process takes and when workers should perform it
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Gantt chart
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a chart that tracks projected and actual work progress over time
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PERT (Program Evaluation and Review Technique)
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a chart that seeks to minimize delays by coordinating all aspects of the production process
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critical path
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the sequence of operations that requires the longest time for completion
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dispatching
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where a manager instructs each department on what work to do and the time allowed for its completion
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benchmarking
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the process of determining other companies' standards and best practices
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Six Sigma
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means a company tries to make error-free products 99.9997% of the time
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International Organization for Standardization (ISO)
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organization whose mission is to promote the development of standardized products to facilitate trade and cooperation across national borders
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marketing
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an organizational function and set of precesses for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders
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Types of utility
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time (when wanted)
place (where wanted) ownership (orderly transfer of good and services) |
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marketing concept
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a company-wide customer orientation with the objective of achieving long-run success
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person marketing
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efforts designed to attract the attention, interest, and preference of a target market toward a person
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place marketing
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attempts to attract people to a particular area, such as a city, state, or nation
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event marketing
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marketing or sponsoring short-term events such as athletic competitions and cultural and charitable performances
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cause marketing
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marketing that promotes awareness of, or raises money for, a cause or social issue, such as drug abuse prevention, childhood hunger, or homelessness
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organization marketing
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marketing that influences consumers to accept the goals of, receive the services of, or contribute in some way to an organization
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Marketing mix: 4 elements of marketing strategy
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Blending of the four elements of marketing strategy: product, distribution, promotion, pricing
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mass customization
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allows a firm to mass produce goods and services while adding unique features to individual or small groups of orders
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Secondary data/primary data
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previously published data
data collected firsthand |
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business intelligence
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uses various activities and technologies to gather, store, and analyze data to make better competitive decisions
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data mining
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using computer-based technology to evaluate data in a database and identify useful trends
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consumer behavior
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actions of ultimate consumers directly involved in obtaining, consuming, and disposing of products and the decision processes that precede and follow these actions
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customer relationship management (CRM)
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software technology that helps companies gather, sort, and interpret data about customers
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convenience/shopping/specialty products
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products that consumers purchase frequently and with little effort, products purchased after comparing competing products, products that a purchaser is willing to make a special effort to obtain
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capital items vs. expense items
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products that are long-lived and relatively expensive/ less costly products that are consumed within a year
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installations
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major capital items like new factories, heavy equipment, custom-made equipment
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steps of the product life cycle
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Introduction, growth, maturity, and decline
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trademark
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a brand that has been given legal protection
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brand loyalty stages:
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brand recognition, brand preference, brand insistence
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brand equity
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the added value that a respected and successful name gives to a product
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category manager
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a manager that oversees an entire group of products
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category advisor
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a vendor that is the major supplier designated by a business customer to assume responsibility for dealing with all the other vendors for a project and presenting the entire package to the business buyer
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distribution channel
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path through which products--and legal ownership of them--flow from producer to consumers or business to consumers
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marketing intermediary
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middleman-- moves goods between producers and consumers or business users
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wholesaler
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a distribution channel member that sells primarily to retailers, other wholesalers, or business users
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merchant wholesaler
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independently owned wholesaling intermediary that takes title to the goods it handles --> full-function and limited function
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retailers
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distribution channel members that sell goods and services to individuals for their own use rather than for resale
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nonstore retailing
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direct-response (catalogs, telemarketing, ads), internet retailing, automatic merchandising (vending machines), direct selling (representatives)
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"wheel of retailing"
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process by which new retailers enter the market by offering lower prices made possible through reductions in service
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lifestyle center
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an open-air complex containing retailers that often focus on specific shopper segments and product interests
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Distribution intensities
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Intensive (nearly every available outlet), Selective (limited number of retailers), Exclusive (relatively expensive specialty products)
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Logistics
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activities involved in controlling the flow of goods, services, and information among members of the supply chain
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Warehousing
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the physical distribution activity that involves the storage of products
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Materials handling
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moving items within factories, warehouses, transportation terminals, and stores
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Vendor-managed inventory
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where the producer and the retailer agree that the producer or the wholesaler will determine how much of a product a buyer needs and automatically ship new supplies when needed
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guerrilla marketing
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innovative, low-cost marketing efforts designed to get consumers' attention in unusual ways
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advertising
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paid nonpersonal communication usually targeted at large numbers of potential buyers
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types of advertising
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product, institutional, cause
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sales promotion
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nonpersonal marketing activities other than advertising, personal selling, and public relations that stimulate consumer purchasing and dealer effectiveness
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premiums
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items given free or at a reduced price with the purchase of another product
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specialty advertising
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the gift of useful merchandise carrying the name, logo, or slogan of a profit-seeking business or a not-for-profit organization
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trade promotion
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sales promotion geared to marketing intermediaries rather than to consumers
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Point-of-purchase (POP) advertising
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advertising that consists of displays or demonstrations that promote products when and where consumers buy them, such as in retails stores
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order processing
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related to retail and wholesale firms; salesperson identifies customer needs, points out merchandise to meet them, and processes the order
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creative selling
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a persuasive type of promotional presentation promoting a good or service whose benefits are not readily apparent
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missionary selling
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an indirect form of selling in which the representative promotes goodwill for a company or provides technical or operational assistance to the customer
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public relations
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an organization's communications and relationships with its various audiences
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publicity
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stimulation of demand for a good, service, place, idea, person, or organization by disseminating news or obtaining favorable unpaid media presentations
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pushing/pulling strategies
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how a company promotes their product--by explaining why they should carry it or by generating consumer demand for it
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profitability objectives
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maintain a steady price while reducing the size or amount
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volume objectives
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bases pricing decisions on market share
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prestige pricing
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establishing a relatively high price to develop and maintain an image of quality and exclusiveness
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cost-based pricing
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adding a percentage (markup) to the base cost of a product to cover overhead costs and generate profits
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breakeven analysis
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pricing technique used to determine the minimum sales volume a product must generate at a certain price level to cover all costs
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skimming pricing
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sets an intentionally high price relative to the prices of competing products
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penetration pricing
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sets a low price as a major marketing weapon
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Everyday low pricing (EDLP)
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a strategy devoted to maintaining continuous low prices rather than short-term price-cutting tactics
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odd pricing
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$9.99 instead of $10
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chief information officer (CIO)
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the executive responsible for directing an organization's information systems and related operations
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information system
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an organized method for collecting, storing, and communicating past, present, and projected information on internal operations and external intelligence
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operational support systems
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information systems designed to produce a variety of information on an organization's activities for both internal and external users
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management support systems
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information systems that are designed to provide support for effective decision making
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expert system
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a computer program that imitates human thinking through complicated sets of "if-then" rules
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hardware
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all tangible elements of a computer system
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server
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computer that supports network applications and allows for the sharing of software, output devices, and databases by all networked computers
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software
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all the programs, routines, and computer languages that control a computer and tell it how to operate
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intranet
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computer network that is similar to the Internet but limits access to authorized users
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VPN: virtual private network
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a secure connection between two points on the Internet
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VoIP: voice over Internet protocol
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an alternative to traditional telecommunication services: phone conversations over the internet
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malware
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any malicious software program designed to infect computer systems
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worm
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small piece of software the gets into a network and replicates itself: doesn't need a host program
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Trojan horse
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program that claims to do one thing but in reality does something else, usually malicious.
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ASP: application service provider
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an outside supplier that provides both the computers and the application support for managing an information system
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on-demand computing aka utility computing
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firms rent the software time and pay only for their usage
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could computing
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uses powerful wervers to store applications software and databases
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grid computing
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a network of smaller computers running special software that breaks down a complex job into smaller tasks and distributes them to the networked computers
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The ultimate level of global involvement
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Foreign direct investment
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Inclusionist/Exclusionist/Intersectionist
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Opinions on the relationship between supply chain management and logistics. Most people believe logistics is contained within SCM
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**3 types of business models
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Business to Business
Business to Consumer Consumer to Consumer |
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**Management Information Systems (MIS) must:
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collect data
store data update data process data present information |
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**The Nature of Operations Management
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the development and administration of the activities involved in transforming resources into finished products
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The connection between marketing and supply chain management?
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Utility (want-satisfying power of a good or service)
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4 P's of marketing
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Product
Price Place Promotion |
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Value
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the relationship between price and quality
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What is important about pricing
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It's the only element in the marketing mix that generates revenue
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Full-Cost (Approach to pricing)
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the standard: based on costs per unit of output + markup + profits
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Variable-Cost (approach to pricing)
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Price is only calculated on variable costs. no fixed costs added
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Product line
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group of related products that are physically similar or are intended for the same market
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Product mix
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a company's assortment of product lines and individual offerings
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Inventory control
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how many supplies and goods are needed, keeps track of quantities on hand, where each item is
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Economies of scale
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making more products makes unit cost go down
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