SMG SM 131 Study Guide - Midterm Guide: Cost Leadership, Role Model, Value Proposition

• School: Boston University
• Department: School of Management
• Course: SMG SM 131
• Professor: Kabrina Chang

Document Summary

A business = entity that creates value and trades that value with customer. Income statement: tells what happened to company over certain period: focuses on operating activities, revenue expense = profit (what you sold) (cost) = (left over, sales/revenue. = net income/profit/earnings: statement of cash flow: tells what happened in company in another way, cousin to (2) b, operating, investing, financing activities. Operating: creating and bringing value to customers. Build-in conflict of interest for accounting firms: cpa opinions rely on management integrity, companies pay auditors to give their opinion. Its all about value creation. (introducing oru kayak: marketing analysis: Consumers: market size, usage frequency, demographics, info sources, motives, where to buy, importance of features. Competitors: #, strengths and weaknesses, products offered. Segmenting: how do we segment the market? frequency of kayaking, type of kayak (recreational, sea, whitewater, fishing), benefits desired (convenience, durability, speed) Positioning: how do we position product to appeal to segment: the mix.