Business Management Basics

Chapter 1 - Test Bank

• Primary goal of a business: To generate profit.
• Primary focus of Business Management: Setting strategic objectives and leading the organization toward long-term goals.
• Role of the manager in Business Management: Focused on developing and executing strategic plans, implementing procedures, and developing policies.
• "Customer-centricity" principle: Prioritizes meeting customer needs and expectations.
• External factors influencing a business: Company culture, employee morale, and the economy.
• SMART business objective example: To launch a new product line within the next year, increasing revenue by 20%.

Chapter 1 - Non-profit

• Focus of non-profit organizations: Providing social welfare.

Chapter 1 - Business Administration

• Definition of Business Administration: Managing day-to-day operations such as finance, HR, and compliance.

Chapter 1 - Business Management vs Business Administration

• Key difference between Business Administration and Business Management: Business Administration focuses on internal operations, while Business Management focuses on overall strategy.

Chapter 1 - Corporate Social Responsibility

• Corporate Social Responsibility (CSR): A company's commitment to ethical and sustainable practices.
• Value Proposition: The unique value a business offers customers.

Chapter 1 - Business Objectives

• SMART objective: Specific, Measurable, Achievable, Relevant, and Time-bound.

Chapter 1 - Economic Goals

• Primary economic goal of businesses: To generate profits.

Chapter 2 - Risk-Taking

• Risk-taking in business: Typically involves taking calculated risks to achieve goals.

Chapter 2 - Resources

• Resources businesses allocate: Money, time, and personnel.

Chapter 2 - Innovation

• Importance of innovation: Businesses innovate to stay competitive, improve efficiency, and create new products or services.

Chapter 2 - Social Enterprises

• Defining social enterprises: Businesses that combine business principles with social goals.

Chapter 2 - Customer-Centricity

• Prioritizing for customer-centricity: To build loyalty and create value by prioritizing customer needs, wants, and expectations.

Chapter 2 - Continuous Improvement

• Process involving continuous improvement: Encouraging experimentation.

Chapter 3 - Integrity

• Integrity's role in business conduct: Prioritizing high moral principles and values with honesty and transparency.

Chapter 3 - Respect

• Respect in business: Treating all stakeholders with dignity and empathy.

Chapter 3 - Open Communication

• Importance of open communication: Avoid conflicts and promote a productive work culture.

Chapter 3 - Social Responsibility

• Social responsibility goal for businesses: Recognizing the impact on society and contributes positively through corporate social responsibility initiatives

Chapter 3 - Financial Health Objectives

• Core objective related to a company's financial health: Obtaining/securing funding.

Chapter 3 - Customer Focus Objectives

• Objective falling under the category "Customer Focus": Improving customer satisfaction.

Chapter 4 - Operational Efficiency

• Objective focusing on improving operational efficiency: Reduce costs within a company.

Chapter 4 - Positive Work Environment

• Objective related to a positive and productive work environment: To hire and retain talent.

Chapter 4 - Adapting to Trends and Competition

• Adapting to future trends and staying competitive: Embrace new technologies.

Chapter 4 - Characteristics of Business Goals

• Characteristic of a business goal: Specific and measurable.

Chapter 5 - Business Objectives

• Purpose of business objectives: To establish a roadmap for achieving goals and provide a sense of direction.

Chapter 6 - Decision Making:

• Definition of Decision Making: Choosing among two or more alternatives.
• Problem solving: Focusing on daily issues.
• Techniques for problem solving: Brainstorming, PMI (listing the pluses, minuses, and implications of a solution.)

Chapter 6 - Leadership:

• Leadership responsibilities: Communicating a vision, encouraging others.

Chapter 6 - Planning Functions:

• Strategic Planning: Identifying and developing major goals.
• Tactical Planning: Creating detailed plans related to short-term goals.
• Operational Planning: Creating standards and schedules for implementing tactical objectives.

Chapter 6 - Contingency Planning :

• Contingency Planning: Planning for alternative paths or courses of action for when the primary plan doesn't work.

Chapter 6 - Management Level Skills:

• Types of management skills: Technical, conceptual, and human relations skills.

Chapter 7 - Management Definitions

• Definition of Management: Coordinating and overseeing the work of others to achieve organizational goals efficiently and effectively.
• Definition of Manager: An individual who guides and oversees other people's work.
• Definition of Efficiency: Maximizing output with minimum input.
• Definition of Effectiveness: Achieving organizational goals and objectives.

Chapter 7 - Skills Needed By Managers

• Managerial skills: Technical, interpersonal, conceptual, and professional skills are crucial for managers.

Chapter 7 - Defining the Role of a Manager

• Planning function: Defining goals, strategies, and plans to achieve the goals.
• Organizing function: Arranging and structuring work tasks to accomplish the objectives.
• Leading function: Guiding and inspiring people to perform tasks and achieve goals.
• Controlling function: Monitoring progress, comparing results to plans, and taking corrective actions if needed.

Chapter 10 - Marketing Environments

• Factors affecting pricing: Competitor pricing, production costs, and distribution costs.
• Techniques for Product Promotion: Advertising, public relations, and sales promotions.

Chapter 10 - Marketing Research

• Marketing Research Definition: Analyzing markets to identify strengths, weaknesses, opportunities, and threats and collect information for good decisions.
• Secondary Data: Existing information from sources like the government; data already collected.
• Primary Data: Original research conducted by marketers to gather information.
• Focus Group: A group of people discussing the opinions and observations regarding a topic, product, or service.
• Market Segmentation: Dividing the total market into groups with similar characteristics.

Chapter 10 - Target Marketing

• Market Segmentation: Dividing the total market into groups with similar characteristics.
• Target Marketing: The process of selecting specific groups to target.
• Marketing Techniques: Includes niche marketing, one-to-one marketing, and mass marketing.