Business Management Quiz

A key advantage of corporations where shareholders' personal assets are protected from business liabilities.

A disadvantage of corporations where profits are taxed at both the corporate and individual levels (when distributed as dividends).

Borrowing money from external sources like banks, credit card companies, or family and friends.

A systematic approach to planning for the future, including defining the mission, assessing competitive position, setting objectives, creating strategies, taking action, and evaluating results.

The CEO is responsible for guiding the organization, aligning the team, mobilizing leaders, engaging the board, connecting with stakeholders, and managing their own effectiveness.

Aspects of employee performance that are not easily measured numerically, such as creativity, teamwork, and leadership skills.

A performance management framework that measures a company's success across various aspects, including financial, customer, internal processes, and learning and growth.

The drive to do something for its own sake, rather than for external rewards or pressure.

Appraisals should consider both quantitative and qualitative factors to provide a comprehensive evaluation of employee performance and to promote intrinsic motivation and overall company success.

The company pressured employees to create fake accounts to boost sales figures, prioritizing shareholder interests over ethical behavior and customer well-being.

Companies may engage in international trade to utilize surplus resources or production capacity that is not fully utilized in their domestic market.

Companies may seek to reduce costs by manufacturing or sourcing goods in countries with lower production costs.

Companies engage in international trade to meet demand for their products in specific foreign markets that may have unique preferences or needs.

Challenges associated with operating internationally, such as currency fluctuations, political instability, cultural differences, and natural disasters.

When the Canadian dollar weakens, exports become cheaper for other countries, imports become more expensive, potentially boosting GDP and improving the trade deficit.

Understanding and respecting local cultural practices, customs, and etiquette is crucial for success in international business.

The Chinese government's significant involvement in supporting and directing its companies, leading to rapid growth and dominance in certain industries.

China's ability to produce electric vehicles at lower costs due to massive production scale, standardized parts, and efficient supply chains.

Tariffs can protect domestic industries from foreign competition but can also stifle innovation, reduce consumer choice, and trigger retaliation from other countries.

Businesses can adjust their strategies in response to tariffs by localizing production, diversifying supply chains, and continuing to innovate to justify higher prices.

Businesses need to manage their supply chains effectively to mitigate risks, ensure quality, and optimize cost efficiency.

Businesses decide whether to control their entire production process (vertical integration) or outsource certain tasks to external specialists.

Dependence on a single country for critical components creates vulnerabilities to policy changes, disruptions, and a lack of bargaining power.

Businesses can mitigate risks associated with single-source dependence by forming partnerships, maintaining buffer stocks, and diversifying suppliers.

Local bottlers can tailor Coca-Cola products and marketing to specific regional preferences and customer needs.

Coca-Cola maintains a consistent global brand image, while bottlers handle local variations and promotions.

Local bottlers can ship products efficiently to nearby stores, reducing transportation costs.

Local bottling operations can lead to variations in taste and quality due to differences in water sources and production methods.

Local bottlers offer employees greater responsibility and ownership, boosting their motivation and performance.

Local bottlers have more control over pricing adjustments based on regional market conditions.

Local bottlers are vulnerable to negative global brand reputation impacts, such as controversies or product recalls.

Companies like Kilmer Group invest in bottlers to diversify revenue streams and enter new markets.

Companies look for businesses with strong growth potential, innovative products, and loyal customers to acquire.

Acquisitions are successful when businesses complement each other, providing cost savings, shared resources, or expanded reach.

Eaton's shifted from a mid-to-high-end department store to a high-end retailer focusing on luxury products and services. This involved changes in store appearance, marketing campaigns, and target audience.

Ashley Madison, known for facilitating extramarital affairs, attempted to rebrand itself as a platform for casual encounters and 'finding your moment'. This involved changing its messaging, target audience, and image.

Target's entry into the Canadian market was marked by aggressive expansion, opening 124 stores within 10 months. They failed to consider factors like Canadian population density, supply chain logistics, consumer preferences, and competitive landscape.

Costco employs a 'treasure hunt' strategy where customers are encouraged to explore the store, making impulse purchases and spending more time browsing. They also offer low markups, relying on membership fees for profit.

Big data raises moral questions about privacy, as it can be used to predict individual behavior and make decisions without consent. For example, Target's use of purchase history to predict pregnancy before the individual or their family knew.

Big data can be used for tasks such as predicting demand based on patterns and trends, identifying gaps in the market, and analyzing customer behavior to optimize online and offline retail strategies.

The old model prioritized profit, while the new model emphasizes environmental sustainability, social equity, and then profitability. This shift reflects a growing focus on social responsibility.

Big data is characterized by five key elements: Volume (massive amount of data), Variety (diverse formats), Velocity (speed of generation), Veracity (accuracy), and Value (worth of data).

Managing big data presents several challenges, including the high costs involved, processing and analyzing huge amounts of data, finding qualified personnel, and providing relevant training.

The Chief Information Officer (CIO) is responsible for all aspects of information technology within an organization, including strategic planning, technology management, budgeting, team leadership, compliance, and communication.

Shift is a non-profit organization dedicated to converting waste into energy. Its vision is to transform discarded resources into valuable energy sources, while its mission is to provide safe, affordable, and reliable energy to those in need.

Hiring a separate bottling company allows Coca-Cola to focus on brand management, marketing, and innovation, while the bottler handles distribution and logistics. This reduces overhead and allows Coca-Cola to scale more efficiently.

Local bottlers gain greater control over distribution networks and customer relationships within their territories. They also benefit from a lower cost structure and increased flexibility to adapt to local market needs.

Coca-Cola may lose some control over distribution and quality control, potentially impacting brand image. Collaboration becomes crucial to ensure consistency.

Local bottlers face a greater financial burden in running their operations and may struggle to compete with larger companies. They also may have less access to cutting-edge technology and resources.

Money already invested in a deal, which cannot be recovered even if the deal falls through.

Raising capital by selling ownership shares in your company to investors.

Exploring alternative ways to secure capital that go beyond traditional loans or equity investments.

Blending the values, goals, and work practices of the acquired company with those of the acquiring company.

Clearly defining the combined vision, goals, and growth plans for the acquired company after the takeover.

Identifying and capitalizing on opportunities to become more efficient or profitable by combining the strengths of two companies.

Amazon's strategy is to target smaller, weaker businesses (gazelles) to take over their market share, aiming to eventually dominate the entire market.

Amazon has made key decisions, like cutting delivery costs and using AWS profits to fund growth, allowing them to dominate the market.

Amazon uses vast amounts of data to understand customer behavior, predict purchasing patterns, and track worker productivity.

Amazon has been accused of using its market dominance to unfairly squeeze smaller businesses, potentially hindering competition.

Amazon expanding internationally faces challenges such as geopolitical tensions, cultural differences, and local competitor growth.

Amazon's ethical practices are debated regarding employee treatment, privacy concerns, vendor relationships, and the impact on society.