General Business Administration Overview

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Questions and Answers

Which of the following best describes the relationship between equity and debt in a financial context?

Equity represents deposits, whereas debt represents credit and interest. (correct)

Equity involves credit, while debt encompasses profits.

Debt involves the distribution of profits.

Equity is used exclusively for government financing.

Human resources are primarily associated with the production of finished goods.

False

What are the two primary markets mentioned in the content?

Money and equity markets

The primary focus of accounting and controlling in a business context is on __________.

financial information Signup and view all the answers

In the context provided, what does 'B2G' refer to?

Business to Government Signup and view all the answers

Match the following terms with their respective descriptions:

B2B = Business transactions involving other businesses B2C = Sales directed towards individual consumers B2G = Interactions between businesses and government agencies Supply Chain = Process from sourcing to delivery of materials Signup and view all the answers

Which of the following is NOT a source of financing listed in the content?

Sales revenue Signup and view all the answers

Sales and marketing are exclusively focused on finished goods.

False Signup and view all the answers

Which philosopher expressed skepticism toward the pursuit of profit?

Aristotle Signup and view all the answers

Maslow's hierarchy of needs suggests that growth motives should be satisfied before deficit needs.

False Signup and view all the answers

What economic principle emphasizes the state's role in maximizing wealth?

Mercantilism Signup and view all the answers

According to Maslow's hierarchy, self-realization comes after satisfying __________ needs.

deficit Signup and view all the answers

Match the following concepts with their descriptions:

Capitalism = Economic system focusing on private ownership Socialism = System advocating for collective ownership Mercantilism = Economic theory emphasizing state power Maslow's hierarchy = Theory of human motivation Signup and view all the answers

Which period is referred to as the birth of modern business?

1900 onwards Signup and view all the answers

Thomas Aquinas supported the charging of interest on loans.

False Signup and view all the answers

What do import duties refer to in the context of trade?

Taxes imposed on imported goods Signup and view all the answers

Which phase comes directly after 'Idea selection' in the product development process?

Development suggestions Signup and view all the answers

Operational safety is a key consideration in product design.

True Signup and view all the answers

What do market surveys help determine in the product development process?

Customer preferences and market demand Signup and view all the answers

The ________ is considered the central element of a product's design.

product core Signup and view all the answers

Match the following product design elements with their descriptions:

Functionality = How well the product performs its intended purpose Packaging = The external covering that protects and promotes the product Durability = The ability of the product to withstand wear and tear Serviceability = Ease of maintenance and repair of the product Signup and view all the answers

Which of the following is NOT a part of the product design considerations?

Market surveys Signup and view all the answers

Product policy only concerns the pricing strategy of the product.

False Signup and view all the answers

What is the outcome of the prototyping stage in product development?

Creation of a preliminary model of the product Signup and view all the answers

What is the primary goal of logistical distribution?

To provide right products at minimal costs Signup and view all the answers

Franchising allows a franchisee to operate independently from the franchisor without any guidelines.

False Signup and view all the answers

What term defines the cooperation between franchisor and franchisee?

Franchising Signup and view all the answers

The right products must be delivered at the right _____ and right quality.

time Signup and view all the answers

Which of the following is NOT typically provided by the franchisor to the franchisee?

Legal representation Signup and view all the answers

Match the components of the conditions policy with their appropriate description:

Rebates = Discounts provided on bulk purchases Discounts = A reduction on the regular price Credit financing = Loan agreements for purchasing products Prices = Set monetary value for products or services Signup and view all the answers

Which of the following is NOT a method of cost-oriented pricing?

Value-based pricing Signup and view all the answers

Pricing policy decisions only depend on a company's internal factors.

False Signup and view all the answers

What is the overall objective of logistics as mentioned?

High delivery service at minimal costs Signup and view all the answers

Profit-oriented pricing is derived from specific cost components of a product.

False Signup and view all the answers

What is the key aspect in determining the minimum price for a company?

Cost accounting Signup and view all the answers

In cost-oriented pricing, the formula for price can be expressed as Price = Total unit costs plus __________.

profit mark-up Signup and view all the answers

Match the pricing orientations with their descriptions:

Cost-oriented = Pricing based on costs incurred Profit-oriented = Pricing derived from profit targets Demand-oriented = Pricing based on consumer demand Industry-oriented = Pricing according to industry standards Signup and view all the answers

What is a long-term price floor?

The minimum price necessary for a company to survive Signup and view all the answers

Demand-oriented pricing focuses predominantly on competition.

False Signup and view all the answers

In progressive costing, pricing can be done on the basis of __________ cost accounting and partial cost accounting.

full Signup and view all the answers

What does break-even analysis primarily demonstrate?

The point at which revenues equal costs Signup and view all the answers

Demand-oriented pricing is focused on the company's past prices.

False Signup and view all the answers

Name one type of competitive pricing mentioned in the content.

Price leadership or price cartel Signup and view all the answers

In price differentiation, companies may price based on the _______ of a product as perceived by the buyer.

value Signup and view all the answers

Match the pricing strategies with their definitions:

Demand-oriented pricing = Based on consumer perceived value Competitive pricing = Based on competitors' prices Price leadership = Setting a price that other competitors follow Price cartel = An agreement among firms to set prices together Signup and view all the answers

Study Notes

General Business Administration - Bachelor's Degree

Offered by Wiesbaden Business School
Instructor: Prof. Dr. Markus Faber
Focused on general business administration

Agenda

Introduction
Basics of business administration
Materials
Production
Marketing
Objectives
Management
Organization
Human resources
Financing and Investment
Accounting/Controlling
Mega trends and perspectives

Introduction - Why?

Relevance for the student
Reason for choosing Business Administration

Introduction - What?

Understanding Business Administration/Management as a Science
Knowing core concepts of Business Administration
Comprehending a Company as an Organism
Preparing for further courses
Shifting perspective from customer to producer

Introduction - What? (Systems)

Focus on systems theory within Business Administration

Introduction - What? (Data)

Visualized data on top 50 most valuable companies in 2023 (by market cap)
Includes country breakdown of top 50 companies
Categorizes companies by market sectors
Data on market cap values, in billions of dollars (USD)

Introduction - How/When?

See StudIP for relevant information
List of course literature provided, including specific titles and editions.

Basics of Business Administration (Science)

Parameters of Science:
- Identification and increase of knowledge (research), including qualitative and quantitative methods
- Imparting and broadening knowledge (teaching), including education, training for jobs, and universities & in-company-training
Characteristics of science with four elements:
- Object of knowledge (economic side of business, principles/processes)
- Knowledge target (theoretical and practical knowledge)
- Methods (interdisciplinary approaches)
- System (cause-and-effect mechanisms in context)

Basics of Business Administration (Science) - Context

Business Administration in the context of science- the sciences overview:
- Ideal sciences: Logic, Mathematics, Methods
- Real sciences: Natural sciences (Biology, Chemistry, Physics), Humanities, Social Sciences (Sociology, Political Science, Psychology), Economic sciences

History of Business Administration (BA) Science

Main steps of development:
- Antiquity (400 BCE) lively trade, skepticism towards profit pursuit
- Middle Ages (1200) compatibility of economy/religion, just price, interest prohibition
- Modern Times (1650) state promotes trade, mercantilism, import duties
- 19th century (1800) Trade as industry, national economy, First Industrial Revolution
- 20th century (1900) birth of modern business administration, development of business schools

Science and BA - Needs

Maslow's hierarchy of needs:
- Basic needs: food, water, warmth, rest
- Safety needs: security, safety
- Belongingness and love needs: intimate relationships, friends
- Esteem needs: prestige and feeling of accomplishment
- Self-actualization: achieving one's full potential, including creative activities

Science and BA - Needs

Deficit and growth motives
Means to satisfy needs: necessity of economic activity and application of economic principle

Science and BA - Principles

Kinds of individual economies: producers (private/governmental), consumers (private/governmental)
Company characterization: open, dynamic, complex, autonomous, market-oriented, social system.
Principles: Maximizing (max output), Minimizing (min input), Optimizing (max output/min input)

Science and BA - Effectiveness/Efficiency

Effectiveness: assessment of target achievement, measured by efficiency and profitability, doing the right things
Efficiency: assessment of relationship between service provided and use of resources, measured by productivity, doing things right

Science and BA - Goods/Physical/Non-Physical

Physical goods
Non-physical goods
Services

Science and BA - Economic Systems

Comparison of market economy and planned economy
- Socialist centrally planned economy: centralized control, state ownership, plan fulfilment, without freedom of choice
- Capitalist market economy: control via economic system, private property, market regulates supply, demand & prices, freedom of choice

Science and BA - Code of Conduct

Visible reality: Experience object of business administration
Value judgements: practically normative direction, norm derivation from data.

Materials - Basics

Decision- and function-oriented overall model,
Company constitutive decisions (location, legal form, cooperation)
Procurement and storage

Materials - Basics (Objective)

Supply and disposal of materials for all areas, according to requirements

Materials - Procurement

Ensuring the needs-based supply of goods used in operational services
Strategic: Outsourcing decisions, supplier quantity & locations
Operational: planning of needs, stocks, and procurement policies, supplier policies.

Materials - Requirements Planning

Procurement planning (raw, auxiliary materials, other goods/services)
Production planning (unfinished/finished goods)
Sales planning

Materials - Deployment Principles

Single procurement: short storage times, lower capital, lower storage costs.
Stock procurement: cheaper per product, no production delays & wait for better prices, risk of ageing/quality loss & high storage costs
Just-in-time (JIT): lower/no storage, lower procurement costs, risk of supply chain delay

Materials - Storage

Comparison of manual & automatic bearings: manual (flexible space, short training), automatic (high picking performance, low error rate, paperless)
Barcode shapes: Linear (EAN), Stacked (PDF417), 2D (QR), 3D
Schematic structure of a passive RFID system
- RFID tags, antennas, scanner
Palets and containers cycle
- Supply chain stages (forwarding, commerce, industry, provision, depot)
- Challenges: returning empty containers (filling), documenting exchanges, defect container identification

Production - Basics

Production management: Economic design and implementation of transformation of production factors into marketable products/services

Production - Objectives

Deadline compliance and throughput time
Production costs, manufacturing costs

Production - Organization

Production types based on run size/batch size
- Individual production, Serial production, Mass production
Shop floor manufacturing and assembly (immovable equipment grouped in workshops, sequence-based product transfer)
Floor production and assembly (Fixed equipment, high employee productivity, high inflexibility regarding product type)
Group production and assembly/series production (combination of workshop and flow production)

Production - Planning

Differences between inventory management and production planning
- Inventory management (stock levels, forecasts for optimum quantity)
- Production planning (demand for end product, plan intermediate product production depending on end product demand)
Process of production planning
- Steps ranging from business planning to process planning

Production - Planning - Aggregation

Dimensions of Aggregation: time, spatial, factual elements

Production - Control

Push (centralised control – order by machine/feedback/approval)
Pull (decentralized control – take-principle)

Marketing - Basics

Problemsolving process: analysis of situation, definition marketing objectives, strategy, instruments, creation of mix, implementation, evaluation
Monitoring functions: controlling & planning
Sales market: actual & potential buyers
Characteristics of a market: object of purchase, purchasing goals, influencers, decision-makers, buyer, user, purchase process, purchase location

Marketing - Segmentation

Market segmentation: Division of overall market into homogeneous submarkets

Marketing - Product

Product ideas – idea selection: factors affecting decision (economic interest, fit in portfolio, technical feasibility, company capacity),
Product development: research stages (idea search, concentration, selection, suggestions), development stage (definition, construction, prototyping, tests, optimization, market surveys), product launch (Marketing tools/corrections)

Marketing - Product Design

Product design elements: functionality, service ability, functional safety, operational safety, susceptibility to failure, durability, value retention

Marketing - Product Policy

Product policy: design of company's sales program (type/quantity, services)
- Retention, diversification, changes, innovation, elimination
- Product policy with subtypes (horizontal, vertical, lateral)

Marketing - Place

Distribution: Design and control of product transfer from producer to buyer
Sales channels (direct, indirect, mixed)
Sales bodies (own bodies, others)
Logistics (storage, order processing, transportation)
Degree of distribution: availability of product over a period of time
Direct vs. Indirect sales path (producer directly to consumer, vs. wholesaler, retailer to consumer)
Franchising: contractually regulated cooperation between companies, franchisor grants rights, name for specific fee.
What can franchisor provide franchisee: trade name, management methods, goods/formulations, marketing concepts, staff training

Marketing - Place (Logistical Distribution)

Logistical distribution as part of company logistics, transferring products to customer;
Main objectives: right products at right time/location/quality/quantity, minimal costs; overall objective: high delivery service with minimal logistics cost.

Marketing - Price

Conditions policy: policy for terms and conditions (price, purchasing)
Pricing policy decision: all decisions in sales program to shape price/performance ratio
Practice-oriented price determination: consider risk appetite, competitor behavior, marketing strategies.
Causes for price setting: introduction of new products, price modification, price changes, looking at optimized prices.
Different perspectives for price setting: Cost-oriented, profit-oriented, demand-oriented, competitor/industry-oriented
Cost orientation: based on cost accounting (progressive/markup costing), full & partial cost accounting; (total unit costs + profit margin)
Profit orientation: specify a profit target from which price can be derived (break-even analysis)
Demand orientation: based on perceived value by customer

Marketing - Price (Difference)

Price differentiation: can be distinguished in relation to target customer groups, sales paths/ bodies, order sizes, and time/quantities.

Marketing - Price Increases/Reductions

Price increases: economically necessary or active strategy (promotional/loss leader) - oversupply/low capacity utilization causes cost increases, market share, general economic conditions, production volume regression
Price reductions: Price awareness is strongest for frequently purchased items, higher costs can lead to price increases for maintaining a price floor, economic/structural conditions can lead to excess demand.

Marketing - Promotion

Communication policy & public relations: policy to communicate information about products/company to current and potential customers/public; aim to create trust & relationships between partners/interest groups
Functions of advertisements: conveys information about the product's characteristics and availability, purchase conditions(price)
Main objectives of advertising (announcement, information, image-building, action trigger)
Advertising concept: definition/design of communication between advertiser & recipient including: advertising object, target group, advertising objectives, advertising budget and period, advertising media/material, advertising message

Marketing - Promotion (AIDA)

Correspondent AIDA-concept: Attention – Interest – Desire – Action
Promotional message components: Brand, properties, benefits, needs, status, advantages, identification, availability, conditions/price, and special services.

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Description

This quiz covers the fundamentals of General Business Administration as part of a Bachelor's Degree program. Students will explore essential topics including marketing, management, and financing. It aims to equip students with a comprehensive understanding of business concepts and prepare them for advanced studies.