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Comm 103 Midterm Exam Review.docx

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COMM 103
Gary Bissonnette

Comm 103 Midterm Exam Review Shannon Bailey Chapter 1 An efficient and effective operating platform will possess 3 fundamental characteristics against which it can be assessed: 1. Commercial endeavours the markets which the organization serves, the products which it offers, and the needs which it professes to meet in the marketplace 2. Employee interaction the value-creating skills which an organizations employees bring to the marketplace, human resource model 3. Organizational efficiency and structure a reflection of the complexities of the business activities which circulate within an organization Business mission focused activities aimed at identifying the needs of a particular market(s) and the development of a solution to such needs through the acquisition/transformation of goods and services that can be delivered to the marketplace at a profit -composed of four fundamental resource areas: assets, labour, capital, and managerial acumen Managerial acumen the foresight, drive, knowledge, ability, decision-making competency, and ingenuity of the organizations key individuals 3 C assessment assess capabilities, competencies, and capacity of a business Competitive advantage a company possesses this when it can offer customers a product/service that has more value to them than similar products offered by other companies BUSINESS PLANNING CYCLE company performance company and growth and profitability reinvention START: business plan strategy and execution 3C assessment business plan development -the failure to meet the objectives of a planning cycle can be the result of poor positioning, poor operational execution, or a combination of the two Not-for-profit organizations those that are not in business to make a profit, but seek to deliver services to the people, groups and communities which they serve. They still need a business plan, operating mode and business system so that they can cover operating costs and fund the delivery of services Fundamental objectives of business: Short term profit Long term growth and profitability Social and environment responsibility -too much emphasis on short term profitability may result in decisions which are detrimental to long term market opportunities and fall short of social responsibility expectations Profits strictly the bottom line results which an organization has realized for a given period of time (revenue expenses) Profitability the efficiency and effectiveness of an organization to use its assets and its capital to generate profits for the organization over a period of time. Profitability analysis takes into consideration capital invested, return on equity, competitors, etc. Return on sales = profit Sales Return on assets = profit Assets Return on equity = profit Equity Value proposition a statement which summarizes whom a product or service is geared towards and the benefits which the purchaser of the product/service will realize as a result of using the product, and differentiates a product from its competitors. Developed for the purpose of communicating to customers how their products/services are different and the important benefits which they offer Value proposition = service benefit + product benefits + brand benefits + cost benefits + emotional benefits -in general, the more unique, important, and value-driven your product is, the greater the opportunity to communicate, to the potential producer, a value proposition which has a positive price/quantity relationship, and which can be considered to be superior to those of your competitors -price of a product may be lower than perceived benefits in quality 4 Ps product, price, place, promotion Positioning the ability of an organization to develop a unique, credible, sustainable place in the minds of customers for its brand, product, and services -combination of strategy, the match between our offer (value prop) and target market, and place relative to competitors; communication of price and deliver Asset based expenditures expenditures which you incur in commencing a business operation or expanding its capacity confirm determine determinethe visualizeand market size market assess tactics assessthe and position, company requiredto business profitability approach,and resourcesand acheive opportunity potential community capabilities objectives Operating expenditures expenses incurred as a result of normal business operations i.e. salaries of employees, costs of shipping and raw materials, etc -a key component of managing any business is in understanding the expenses which must be considered when setting the price of a product/service offering Strategy the development of plans and decisions which will guide the direction of the firm and determine its long term performance. Focuses on vision and opportunity for future. Tactics immediate term actions which a firm executes in order to meet the short term objectives set forth in the current planning cycle well directed and positioned strategy + efficient and effective tactics execution = business growth and profitability VUGA Volatility, Uncertainty, Globalization, Adverse -volatility is the variation of price over time, which breeds uncertainty -forecasting tries to minimize volatility and creates certainty -globalization contributes to volatility and certainty because of new entrants, substitute products etc. -all three together create an adverse environment: we shy away from investment Chapter 4 The Environment and Sustainable Business Practices -the goal is to design and redesign business processes in a way which, while allowing for increased wealth and enhanced competitive advantage, incorporate the principles of human mankind and resource protection and sustainability for the future The challenges: 1. Climate change 2. Pollution & Health pollution triggered disease i.e. pneumonia, bronchitis & toxic threats at worksites are a problem 3. The Energy Crunch we are increasing consumption of energy; we must manage resource depletion and look at alternative sources 4. Capital Squeeze access to capital, especially for fully developed economies becoming more difficult due to low savings rates of citizens so little investment capital generated internally and increasing need of developing countries to use their capital reserves internally. Cost of capital (interest rates) will increase, and financial protectionism could happen 5. Resource Depletion -trade management is shifting the impact of trade and economic development away from being the primary driver of environmental harm and planet degradation, to that of a process which exists in an arena of environmental sustainability -the goal is to create a sustainable resource management model geared towards reducing the material and energy intensity of creating products and services, while still being able to produce economically viable products and services which enhance lives Strategic integration businesses need to see environmental sustainability as an integral part of value creation and that this creation includes sustaining and enhancing the resources which we depend on well into the future Chapter 5 Ethics and Corporate Social Responsibility -in many ways, ethics can be thought of an invisible hand which is inside each of us and guides us as we make decisions -the components of ethics are societal, business culture, individual, and professional -we need to think in terms of what is in the best interests of stakeholders and the public at large rather than our personal best interests Triple Yes Rule: Yes #1 Does the decision which I am making fall within the accepted values or standards that typically apply to all organizational environments? Yes #2 Would I be willing to have this decision communicated to all of my organizations stakeholders, and have it reported publicly? Yes #3 Would the people in my life with whom I have a significant personal relationship as well as managers of other organizations, approve of and support my decision? -to truly create a culture of ethical behaviour and financial decision integrity, the board of directors must be active in the ongoing monitoring of the organization, and take a leadership role in the tightening of such processes when and where it is required Forensic Accounting audits and investigations in determining the potential extent of damage which an organization may have incurred due to unethical employee behaviour or financial integrity issue Corporate social responsibility (CSR) business and society are interconnected and interdependent on one another, and decisions being made within the business organization need to result in profitability but also need to be in the best interests of society Chapter 13
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