Exam reviews
- Supply and demand
- Business
- Economy
- Entrepreneurship
- Forms of business ownership
- Management
- Supply chain
- Inventory control
- Communication
- Growth
- Centralized vs decentralized management
- Human resources
- Marketing
Chapters 1, 4, 5, 6, 7, 8
Supply and demand
Explain the roles of equilibrium in a free enterprise system
- Show how the graphs move (demand, supply, equilibrium)
What is the role of competition?
- Gets the demand for a specific product
- Helps drive pricing
Be able to graph supply and demand and mark equilibrium price
Business
What is a fundamental goal of business
- Run and operate at a rate that is profitable
- Satisfy customers
- Deliver value
- Satisfy customer wants and needs
- Nonprofits
- Satisfy need
- Pay employees
- not making money
Economy
How do we measure a healty economy?
- National Deby
- GDP (sum of all goods and services produced in a given country in a year)
American economic system
- Regulated by government agencies
- Free market system
Entrepreneurship
Entreprenuers take on risk (financial, time, skills)
- Feel the growth of the economy
Forms of business ownership
Advantages of business organization reference
Small business ownership
Advantages and disadvantages of small business ownership
Why are large companies trying to think small
- How do they make their firms more flexible
- How to take advantage of innovation and better respond to the market
Business plan
Elements of a business plan reference
How to create a business plan
Management
Explain the role of management in achieving the goal of a business
- Look at resources and efficiently and effictely use them (planning)
- Organizing resources including people (organization) reference
Look at objectives of organization, determine how you want to get them done, then organize.
Operations
Everything that goes into creating a product or service
Manufacturing / production
Manufacturing the product
Supply chain
Summarize the supply chain
Inventory control
Just-in-time control
What you need, when you need it
Communication
How is communication done in an organization
- Text
- Written reports
- Formal and informal communications
- Formal communcations often go vertically
- Informal communication often go horizontally
(Organizational chart with lines of communication)
Growth
How could an organizational structure change?
- Who does what?
- People start specializing - Now you have a silo
- Now you have to get the silos talking to each other
Centralized vs decentralized management
For highly controled businesses a centralized management system is better
- You can control everything
- It is slow
For fast-moving, widespread businesses a decentralized management system is better
- Everyone can control what they need to
- It is fast
- It is harder to control
Human resources
Be able to identify the types of turnover
- Big deal because it is an overall look at how satisfied your workforce is
-
It is expensive to replace someone
- Promotions, transfers, and seperation create turnover
Wages vs salary vs commission
Job analysis: Watch the person, understand what they do, write down the job description
Marketing
Market orientation, PEST reference
4 P’s (Marketing mix)
Functions of marketing / role of marketing