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Comm103 Final Notes.docx

75 Pages

Course Code
COMM 103
Gregory Libitz

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Douglas He Comm 103 Sept. 10, 2012 Business Management & Communications Chapter 1 What is Business? 3 Fundamental Characteristics of a Business -> Business Foundation Commercial Endeavours: market business serves, goods/services it offers, and needs business meets Employee Interaction: skills of staff Organizational Efficiency & Structure: culture of business and its command infrastructure Business: firm that identifies needs of a particular market, delivering goods/services to consumers for quantitative/qualitative profit --------------------------------------------------------------------------------------------------------------------- Assets: resources, raw/buildings of an organization + Labour: human resources of a firm + Capital: money needed to support ventures, innovations and operations of a firm + Managerial Acumen: ingenuity and intelligence of top level managers = Business Model: operational structure on which business uses to generate revenue --------------------------------------------------------------------------------------------------------------------- Business Planning Cycle 1) Strategy (objectives of firm) and 3C Assessment (capability, competency, capacity) -> 2) Development -> 3) Execution -> 4) Performance and Profitability -> 5) Growth and Reinvention Competitive Advantage: firm offers service that is more valuable than similar ones offered by rivals Douglas He Comm 103 Sept. 10, 2012 -businesses grow by executing new planning cycles to reposition firm as dynamic marketplace changes, in order to link mission and vision of organization in line with profitability and success Such objectives should be -> Specific, Measurable, Actionable, Controllable -failure to meet objectives of planning cycle can be a result of poor execution or poor positioning --------------------------------------------------------------------------------------------------------------------- Fundamental Objectives of Business 1) Short-Term Profit 2) Long Term Growth and Profitability 3) Social and Environmental Responsibility stakeholders: those who have direct/indirect stake in firms success/policies stockholders: those who have at least a share of stock in a company profit: Total Revenue Total Expenses = Profit profitability: efficiency of assets used over a period of time, benchmarked against competitors --------------------------------------------------------------------------------------------------------------------- value proposition: statement stating who the service/product is for, and the benefits of such ->how the product is different from rival products ->Service Benefits + Product Benefits + Brand Benefits + Cost Benefits + Emotional Benefits -higher quality of the product, better pricing it will display -> quality also depends on brand recognition, loyalty and emotional value to consumers market segment: unique niche in which a business can target customers --------------------------------------------------------------------------------------------------------------------- asset-based costs: costs incurred from start-up or expansion operating costs: costs from day-to-day operations strategy: long-term decisions and plans of a firm tactics: immediate actions which a firm executes to meet concurrent objectives --------------------------------------------------------------------------------------------------------------------- Douglas He Comm 103 Sept. 10, 2012 Business Decision-Making Model 1) visualize business opportunity -> 2) check market size and profitability potential -> 3) determine position in market, approach and sustainability -> 4) assess firms resources and capability -> 5) execute strategy and tactics business is not about producing and distributing goods, but about meeting desires/needs of consumers --------------------------------------------------------------------------------------------------------------------- Case For Discussion 1. Manufacturers have been marketing to consumers largely on the basis of pricing differences from competitors. What businesses in this particular market have failed to do is differentiate their particular product or model in a fashion that would take consumer focus away from pricing. In essence, no firm or business in this market has ensured profitability, and will have to incessantly lower prices to remain competitive. 2. Sylvie must be able to present Cruiser Laptops Inc. with a value proposition that has a unique selling point, or competitive advantage over all the other firms in the marketplace. There must be a distinctive form of differentiation her firms laptops hold over rivals. This change does not have to be cost benefits, as everyone has been focussing on. Rather, this distinction can be based on service benefits and improved software that no one else has. If this initial proposition is taken with success, other benefits such as emotional attachments and brand recognition will continue to give Cruiser an edge in the market. 3. cut costs by using cheaper suppliers, and then reducing prices to remain competitive -engage in a highly focussed marketing campaign that will increase consumers perceived benefits of Cruiser brand -employ CSR and communicate such to consumers (proceeds of profits will go towards charity) Chapter 4 The Environment and Sustainable Business Practices environmental stewardship: integration environmental practices into business operations degradation: continued deterioration of environment through depletion of resources and destruction of ecosystems the goal is to design businesses in a way that incorporates sustainability of this earth into practices that will mean profitability and a competitive advantage Douglas He Comm 103 Sept. 10, 2012 Five Great Sustainability Challenges 1)Resource Depletion 2)Energy Crunch 3)Climate Change 4)Pollution & Health 5)Capital Squeeze Kyoto Protocol: 1997-2005 binding agreement to participating nations into reducing emissions --------------------------------------------------------------------------------------------------------------------- Resource Availability peak model theory: resources are finite, and eventually maximum production point will decline 7 Factors of Demand/Supply Current Supply Development Constraints: rate at which existing known resources can be developed Political impact factors: legal barriers to carry out business productions (taxes and tariffs) Rate of new Discoveries: discovery of new fossil fuel reserves Declines in current production: reduction in current supply of resources Immediate access to additional capacity: ability of suppliers to tap into excess capacity of resources Geopolitical instability: instability of regions that supply global energy needs Development speed of alternate energy sources: rate at which alternate energies can be made applicable to mass consumers ------------------------------------------------------------------------------------------------------------------------------------------ Resource Depletion resource management: to actively managed existing supplies and minimize waste sovereign wealth funds: state-owned investments -resource depletion in developed nations has led to exploitative activities in third world nations rich in natural resources Mass capital squeeze leads to ->lack of access to capital for developed nations ->reduction of savings in developing states -> cost of capital will increase, and thus increase debts worldwide ->financial protectionism could creep up, which would slow down the global markets
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