BU121 Midterm Review Notes
Unit 1: Business Planning
First-rate business plan
- This document is a formal, written expression of the entrepreneur‘s vision for converting ideas into a profitable,
- The entry card for serious consideration by venture capitalists, banks and other sources of funding
- 60 % of small, new companies have no business plan
Entrepreneurs firmly believe in their ideas and their own ability to carry them through to success
Had little practice in writing formal documents
- Entrepreneurs who prepare excellent business plans are more likely to attain success than those who do not
o Reduces the chance of venture failure
o Increased the rate of new business and new product development
- Key: persuasion
Why Write a Business Plan?
- ― It is truly difficult to arrive somewhere unless you know where you want to go‖.
- Much more than a document to persuade skeptical people to invest in your new venture
o Also a detailed road map for converting your ideas and vision into a real, functioning business
- Address a number of complex issues
o How your product will be produced
o The price at which it will sell
o How and to whom it will be marketed
o How it will compare with existing or potential competitors
o What financial resources are needed and how these will be used
- A carefully prepared and well-reasoned business plan will indeed help you with the process of planning
o Explain what the new venture is trying to accomplish and how it will go about attaining these goals
o The clearer the links between the goals sought and the means for accomplishing them, the more
impressive/persuasive the business plan will be
- Provide themselves with a clearer understanding of the best ways of proceeding
- Often changes as new business develops
Successful planning business model
1. Develop a simple, basic business plan
2. Start the business
3. Take the information that is gained from starting and running the new business and use it to refine the plan and
obtain funding as this become necessary
- Orderly, succinct, and persuasive fashion
- Basic principles:
o The plan should be arranged and prepared in proper business form
Start with a cover page (name/address of the company/contact information)
Followed by a clear table of contents
Followed by executive summary
Various appendices (detailed financial projections/complete resume)
o The plan should be succinct
As short and succinct as possible
o The plan should be persuasive
Begin strong, and continue strong Executive Summary Executive Summary
- The exec summary takes the place of the title slide
- Clear, concise description of the problem, solution, business model and underlying magic
- Don‘t explain the entire business plan – convey it‘s essence and it‘s energy
- 2-3 pages max
- Answer key questions briefly, but in enough detail that a reader can form a clear picture of what your new venture
is all about.
- Most important part of the business plan, worthy of special effort
- First and best chance (or only) to generate interest in others (first impression)
- Major sections followed in orderly arrangement
o Background and purpose: A section describing your idea and the current state of your business
o Marketing: A section describing the market for your product and service
Who wants to use/buy it and why they would want to do so
Describe target market and your value proposition
o Competition: Information on the existing competition and how it will be overcome, pricing, and related
How you will build and sustain competitive advantage against current firms and future entrants
o Development, production, and location
Where the new venture‘s products and services are in the process?
o Management: A section describing the experience, skills, and knowledge of the new venture‘s management
o Financial Section: Provide information on the company‘s current financial state and offers projections for
future needs, revenue, and other financial measures.
o Risk factors: Discusses various risks the new venture will face and the steps the management team is
taking to protect against them
o Harvest or exit: Investors are interested in understanding precisely how they will gain of the company is
When and how the company might go public can often be very useful
o Scheduling and milestones: Information on when each phase of the new venture will be completed should
be included, so potential investors will know when key tasks will be completed.
o Appendices: Detailed financial information and detailed resumes of the top management team should be
The Seven Deadly Sins for New Venture Business Plans
1. The plan is poorly prepared and has an unprofessional look
- E.g. no cover page, a cover page without contact information, glaring typos
- Investor reaction: ― I‘m dealing with a group of amateurs‖
2. The plan is far too slick
- E.g. it is bound like a book, is printed on shiny paper, and uses flashy graphics.
- Investor reaction: ―What are they trying to hide behind all those fireworks?‖
3. The executive summary is too long and rambling
- It doesn‘t get right to the point
- Investor reaction: ―If they cant describe their own idea and company succinctly, I don‘t want to waste my
time with them‖.
4. It‘s not clear where the product is in terms of development
- Does it exist or not? Can it be readily manufactured?
- ―I can‘t tell whether this is real or just another pipe dream; I‘ll pass on this one‖.
5. No clear answer is provided to the question: ―Why would anyone ever want to buy one?‖
- Many entrepreneurs seem to assume that their new product or service is so great that it will virtually sell
- ―These are truly amateurs‖
6. There is no clear statement of the qualification of the management team
- ―They probably have no relevant experience‖
7. Financial projections are largely an exercise in wishful thinking (optimism)
- ―They have no idea what it‘s like to run a company‖
*** If one or more of these errors or problems are present in a business plan, it is likely to be rejected by potential
investors, no matter how good other aspects of the plan may be. Lecture – The Art of the Start – Guy Kawasaki
The most important things an entrepreneur must accomplish…
o The best reason to start an organization is to make meaning—to create a product or service that makes the
world a better place. So your first task is to decide what is driving you, the reasons that keep you going.
o Forget mission statements; they‘re long, boring, and irrelevant. No one can ever remember them—much less
implement them. Instead, take your meaning and make a mantra out of it. This will set your entire team on the
o Ex. PepsiCo – Refresh Everything
o Ex. AWAKE Chocolate – Stay AWAKE (straight-forward, obvious)
o Take action on your business plan and start creating and delivering your product or service.
o Don‘t focus on pitching, writing and planning.
o ―Don‘t worry about being embarrassed. Don‘t wait to develop the perfect product or service. Good is good
enough. There will be plenty of time for refinement later. Its not how great you start – it‘s how great you end
Define a business model:
o No matter what kind of organization you‘re starting, you have to figure out a way to make money. The greatest
idea, technology, product, or service is short-lived without a sustainable business model.
o Business model is essentially on how you going to make money.
o Take the information that is gained from starting and running the new business and use it to refine the plan and
obtain funding as this become necessary
Weave a MAT (milestones, assumptions, tasks):
o Major milestones you need to meet on a certain date (key dates), a way for you to track your progress
o Assumptions that are built into your business model; key ideas/facts/things that is the basic of what you are
doing. (Potential market place, sales cycle, etc.)
o Tasks you need to accomplish to create an organization. This will enforce discipline and keep your
organization on track when all hell breaks loose – Ex. Rent space, file a legal document.
The Art of Writing the Business Plan
Business plan: Cost of living document (execution and implementation)
Write for the right reasons
o Due-diligence stage of courting an investor
o Forces the founding team to work together
o Makes the team consider issues it glossed over in the euphoria
o Uncovers holes in the founding team
**The process is more important than the destination
**Write deliberate, act emergent: Be very conscious, and got to deal with reality and be flexibility, allow it to change as
needs arises. Unit 2: Business Communications
The task of preparing a written business message or a presentation is easier and more efficient if you have a systematic
process to follow.
For business messages ad oral presentations, your writing should be as follows:
4 principles of business writing
o Writing to solve problems and convey information
o Want your audience to believe and accept your message
o Try to present ideas clearly buy concisely
o Concentrate on looking at a problem from the reader‘s perspective instead of seeing it from your own.
3x3 Writing Process
- Breaks the entire task into three phases:
Decide on your purpose
Profile the audience
What techniques can you use to adapt your message to its audience and the audience‘s anticipated
Tone/empathy, the ―you‖ view
Gather data to provide facts
Group similar facts together
Organize direct message with the big idea first, followed by an explanation and an action request in the
Prepare a first draft, usually writing quickly
o Revise *takes the most time – major component of the writing process
Edit your message to be sure it is clear, conversational, concise, and readable
Take the time to read over every message carefully (spelling, grammar, punctuation, and format)
Decide whether this message will achieve your purpose
Lecture – Communication that “Stick” – Chip Heath & Dan Heath
Sticky message = understandable, memorable, and effective in changing thought or behavior
o Urban legends
Are ideas born interesting or made interesting?
o CSPI and movie popcorn
Interesting but not sensational, truthful but not mind-blowing, and important but not ‗life or death‘ 6 principles of stickiness: SUCCESs Model
Curse of Knowledge: Once we know something it is hard (almost impossible) to remember what it was like not to know
something. We cannot longer experience how it was like lacking the information. This leads to massive miscommunication
because we think the other person knows as much as us.
A huge gap in sharing knowledge.
The best example is tapping or humming a very simple worldwide recognizable song for someone. The other person
will have no idea what the song is, and the tapper/hummer can‘t believe the song is not guessed. This because he hears
the song in his head, so he is poised by the Curse of Knowledge.
There are 2 ways to beat the Curse of Knowledge:
1) Don‘t learn anything. (This doesn‘t sound very practical)
2) Transform your ideas into a sticky message.
o Simple = core + compact get to the core we want to say, and say it in the compact way.
o Find the ―core‖ of the message strip the message to the core
Helpful concept called ―Commander‘s intent‖
A technique used in the army to pass along the most essential information through the chain of
command. It forces officers to light the most important goal of an operation, with loss of
certain details but with still the core message alive. This because ‗No well laid out plan
survives contact with the enemy.‘ Like: ‗My intent is to have Third Battalion cleared Hill 4305
to protect the flank of the Third Brigade‘. Not a lot of details and you can lose the ability to
execute the plan, but you can never lose the responsibility of executing the intent.
Matter of forced prioritization
Don‘t ‗bury the lead‘ - Is when you express the core of the message in the middle or at the end
of the story and let it be overshadowed by too much information that isn‘t core. The lead, a
term used in the reporter and newspaper industry, is the most essential part of story, the 1st
sentence, the headline. In newspapers you get the most important info first and the less
important info at the end, to trigger your attention from the start.
o Communicate the core in a compact way
Simple but profound
Use existing schema: take something really complex but change it to really simple
Use something that attached something that already exist in someone‘s brain
Ex. Buy more stock, make more money (in your knowledge)
Ex. Hollywood: In pitching a Hollywood movie a producer would describe it in terms of other
hits: E.g., Speed will be Die-Hard on a bus, or Alien will be Jaws on a spaceship.
Use generative metaphors Use metaphors to generate new perception
Ex. Disney called their customers their guests like home and uses the term "cast member" to
describe their amusement park employees. This tells employees how to behave: Even if you
are just sweeping the park you are "on stage" and need to behave.
Contrast this to the poor choice by Subway to call their employees "sandwich artists". It is
completely useless as a guide to behavior: In no way does Subway wants their employees to
innovate when making sandwiches, they should instead follow the rules precisely.
o By being unexpected you can grasp the audience attention, but surprise doesn‘t last. You create interest and
curiosity. Use unexpectedness to break schemas of guessing what comes next.
o Get audience to pay attention
Need surprise and interest (break the pattern)
Use surprise to break the pattern and gets the attention, use interest to keep their attention
o Violate expectations
Be counterintuitive – uncommon sense
Nordstrom‘s – a fashion store that is well known for its far-reaching customer service
o Intend to provide customer service at the expense of efficiency o ‗We iron shirts for our clients.‘ ‗We giftwrap presents bought in other stores.‘ ‗We
keep your car warm in wintertime.‘
o Generate interest and curiosity
Open gap in knowledge
Fill those gaps
o Makes ideas clear and things understandable by using concrete images.
o Humans react on sensory/concrete information. Do not use abstract ideas; our brains respond best to concrete
o Fill with concrete images
Brown eyes, blue eyes
Credible - To offer something verifiable, a sort of ‗Try before you buy‘ or ‗See for yourself‘. Use Authorities or
sometimes better anti-authorities.
o External credibility – get someone to talk to that has authorities
Experts/celebrities/anti-authorities - Stephen Hawking, Michael Jordan
Anti-authority (most effective way)
Regular people who act as ambassadors of our ideas by their personal experiences
o Internal credibility
Vivid details use the details, people are most likely to believe one side in the other
Statistics very risky
Need to establish a relationship and related to something that they can understand (human
Testable credential most effective: you will believe if you check it out yourself
‗Where is the beef?‘
o Wendy‘s claimed they had more beef then other hamburger competitors. And this was
o Make people care and emotional like charity.
o Make them feel something
For people VS abstractions or statistics People feel people, not abstractions or statistics
o Power of association
Appeal to self-interest people mostly care about themselves
Emphasize benefits VS features
Appeal to identity
o Get people to act on stories like on concrete data
Need simulations and inspiration
o Mental flight simulators for the brain
o Inspiration stories
Jared V.s ―7 under 6‖ - Subway uses stories that tell people about possibilities
o Eat subs and lose weight – ―Subway saved my life‖
o Lost weight eating fast food
o Oversized pants
o Individual vs. mass, reaching potential – self-interest
Story o Inspiring challenge plot
o Spotting a story
Disc & Emotional Intelligence
LAB MANUAL (p.g.118 – 135)
Leaders often find that their cognitive intelligence is the threshold for their success, and they do need solid IQ smarts and a
good education to get in the door and to keep up with technical and professional developments.
To move beyond that threshold they need to be adept at relationships, influencing and leading staff and teams
effectively. The path for exhibiting this excellence is based on emotional intelligence
The most powerful and sustainable way to build those relationships requires using the four emotional intelligence skills:
o Understanding the emotions people are communicating and responding
o Key to building trust, engagement, and passion
o Communicates what is needed up front and the requirement of accountability is clear
o Ability to speak up, to make your points, to say no when called for
o Ability to manage impulses, be patient and to control the desire to be angry
o Thoughtful engagement on complex matters‘ help all involved recognize that big problems tae time to resolve
o Most influential and primary of all skills
o Leaves no doubt about your belief that the problem will be resolved
3 EQ factors that differentiated these “superstar” CEO from the rest:
o Combinations of feeling good about yourself as well as having an accurate reading of your strengths and
** Related to human resource
True use for hiring, training, and to access people in businesses
To determine whether you fit the job or not
Is EQ the same as IQ?
- People with the highest levels of IQ outperform those with average IQ just 20% of the time, while people with average
IQs outperform those with high IQs 70% of the time.
- IQ does not and cannot predict success in life – it can predict on average 6% of success in a given job.
IQ – book smart
Gate that you have to get through, need to have a certain amount of IQ in order to get in to a certain job.
Is EQ the same as Personality?
DISC = Personality – how you describe someone Difference between EI, IQ, and personality
- Way you describe a person/what a person is like. It is shaped and set by age 5. You can change minor components, but
not the core.
- A static trait
- Street smart
- It is your emotional/social skills that influence how you act
- It takes baby steps and conscious thoughts and reflection, but it can be developed and it goes up as your grow up as you
have different experiences
- The key to it is having balance, not a high score.
- It is also twice as indicative of success in comparison to IQ.
- NOT a static trait
- We can actually do something about EI, and from a business perspective it has a huge success factor –used to select
people, pick skill sets in particular jobs, train people, develop things
- Your book smarts.
- IQ is something that you are born with, and get stronger and stronger, but it is fully developed by age of 17
**IQ-EQ-Personality overlapped and works together
Models/Measure of EI
-The Encyclopedia of Applied Psychology suggest that there are 3 major EI measures:
Peter Salovey and John Mayer‘s MSCEIT
o Referring EI to the constellation of abilities through which people deal with their own emotions and
those of others
o Define EI as the ability to perceive emotional information and use it to guide thought and actions
o Distinguished it from cognitive intelligence (IQ)
Reuven Bar-On‘s EQi
o First scientifically validated, and most widely used
o Found that ten of sixteen skills and perspectives assessed by Benchmarks were strongly associated
with one or more emotional intelligence measures
Higher levels of certain emotional intelligence components appear to be connected to better
performance in those ten areas
Putting people at ease
Balance between personal life and work
Straightforwardness and composure
Building and mending relationship
Doing whatever it takes
Confronting problem employees
Daniel Goleman‘s ECI (Emotional Competence Inventory)
o Focus on 4 basic competencies
Social skills Basic Model of Disc - 4 personality styles
D style – Dominant, Direct, Decisive
- Active, positive movement in an antagonistic environment
- High ego strength, seeks authority
- Greatest fear – Being taken advantage of
- Desires change
- Does many things at once
- Responds to direct confrontation
―D‖ measures how a person solves problems and responds to challenges
- Active and aggressive instead of contemplative
Antagonized response: aggressive
Emotion measured: anger
I style – Influencing, interactive, interested in people
- Active, positive movement in a friendly environment
- Greatest fear – Rejection
―I‖ measures how a person attempts to influence or persuade others
- Verbal and persuasive instead of non-verbal and reserved
Antagonized response: negotiate
Emotion measured: optimism
S style – Stable, steady, secure
- Passive aggressive in a favorable environment
- Loyal gentle team player
- Person of substance
- Greatest fear – Loss of security
- High level of trust
- Resists change, adapts slowly
―S‖ measures the pace at which a person under takes activities and responsibilities
- Resists change, slow instead of flexible and fast paced
Antagonized response: Passive
Emotion measured: emotional expression
C style – correct, controlled, compliant
- Cautious, tentative response designed to reduce antagonistic factors in an unfavorable environment
- Greatest Fear – Criticism
- Asks many questions
- Requires details
―C‖ measures how a person responds to the rules and regulations set by others
- Comply with rules instead of seeks independence
Antagonized response: Passive
Emotion measured: fear Axes:
Active/passive resulting styles: assertiveness/receptiveness
Task/people resulting styles: control/openness
So what is it?
EQi Model of Emotional Intelligence
Self Awareness & Self Expression
Social Awareness & Interaction
o Social Responsibility
o Interpersonal Relationships
Emotional Management & Control
o Stress Tolerance
o Impulse Control
o Reality testing
o Problem solving
*** All together effective performance
Why does it Matter?
Human Potential = (Innate Intelligence + Technical Skills) x Emotional Intelligence
Daniel Goleman, after studying competency data for outstanding performers in several hundred organizations,
reported that ―for jobs of all kinds, emotional competencies were twice as prevalent among distinguishing
competencies as were technical skills and purely cognitive abilities combined… for individuals in leadership
positions, 85% of their competencies were in the EI domain.
** IQ and TQ are only going to get you to the door; EQ separates you.
71% of hiring managers in the US value EI in an employee more than IQ – recent study of 2,662 by Career Builder
o Reason#1: ability to remain calm under pressure
o Reason#2: ability to resolve conflict effectively Impact of EI on Human Resources
The value of EI in business:
Two Decades of research show that emotional intelligence contributes to bottom line performance because it leads to:
• More successful hiring
• Decreased attrition rates – less turnover
• Reduced training costs – easily trained
• Higher levels of productivity and success
• Greater individual performance
• Better leaders and managers
• Stronger relationships with employees and customers
CRITICAL THINKING **Lab manual & slides
What is Critical Thinking?
―…An approach to reading, thinking, and learning that involves asking questions, examining our assumptions, and
weighing the validity of arguments.‖
―…Can be developed as a frame of mind – a set of strategies that we will use as we determine whether or not to
believe what we read or hear.‖
Improves your arguments to make your communication more effective and persuasive
―The major conclusion of a piece of writing that the author is trying to persuade you to accept‖
Look for cues/indicator words
Uncontested vs. Contestable claims
Conditions in which people may accept a claim without challenge
Claim that is obvious, an event that already happened that is not new to you
Make sure the evidences are solid, back up the argument
Examine and evaluate the evidence given to justify the claim
Present ideas with clarity and emphasis; use visuals
Put your claim up front and use cue words
Use headings and subheadings to make your logic transparent
Read the following passage.
What is the main claim being made by the author?
What cues did you use to locate the claim?
Is it a contestable claim?
“Put six pots of jam on a table and offer people a $1 coupon towards buying jam. Some people will stop, try, and buy the
jam. But then put 24 pots of jam on the table and offer the same $1 coupon. Many more people will stop, of course, but
surprisingly to say, only one-tenth as many people will actually buy the jam. Why? Too much choice, according to the
research of Sheena Igenyar, a professor at the Columbia Business School in New York. In everyday life in Western
societies, people are faced with an overwhelming variety of choices. Whether you are choosing a box of cereal, a career,
music to listen to, a travel destination, or even a mate, it may be helpful to realize that too much choice can be crippling. In
fact, when limits are placed on our choices, these limits free us to act.”
Main claim: ―too much choice can be crippling‖ (should be a little bit more up front)
Cue word: ―it may be helpful o realize that‖
- It is contestable Evidence
―A statement in response to the question: Why is this true?‖
Examples of evidence: statistics and survey
Cue/indicator words: based on the fact that/firstable/in the study
Argument = claim + evidence
Quality of evidence: source need to be clear
Accuracy, precision, sufficiency, representativeness, authority, clarity
Clearly state the meaning/significance of the evidence
Present arguments in form of claim and supporting evidence
Treat evidence as claims – provide evidence to show soundness
Read the passage and state the major claim that is being made. Identify and evaluate the evidence presented on the
Accuracy: sources are reliable
Sufficiency: no evidence about sales
Clarity of expression: debatable (not well written but it is understandable)
―A logical link that fills the gap between the evidence and the claim‖
Underlying assumptions are implicit, unstated
Need to be examined explicitly
What the writer must believe to have written that
What must be true for the claim to follow from the evidence?
Reality assumptions vs. Value assumptions
Reality: the way the things really are
Value: the way the things should be (people have different value comes from different culture)
Make it clear that each piece of evidence is relevant by articulating your underlying assumptions and
Question your assumptions
Arguing ―that certain events or factors (causes) are responsible for bring about other events or situations (effects)‖
Cause and effect relationships are an important aspect of understanding – basis of cases
May be multiple or Rival causal explanations due to:
Differences between groups
This occurs whenever an author says that an outcome is caused by a specific difference between
Whenever an author presents a difference between groups causal claim, we must ask
ourselves if there is any other differences between these groups that may be relevant? If
there are any other such differences, we have a plausible rival cause.
Correlation between characteristics
Post hoc ergo propter hoc fallacy (after this therefore because of this)
This is a fallacy, an error in our reasoning. Just because an event is followed by another event, it
does not necessarily mean that that particular event caused the other.
Think through all possible causes – address them explicitly
Examine soundness of causal argument Techniques of Persuasion
Factors that affect persuasiveness:
Quality of evidence presented + evidence omitted
Soundness of causal argument
Extent to which reader/listener agrees with underlying assumption(s)
Language and writing style
Rhetoric - use of language to convince
Must know and consider your audience
Anticipate and counter objections
Negative evidence, rival causes, debatable assumptions
Limit your claims when you have no rebuttal
Use of Rhetoric
―The use of language to persuade‖
Present your reasoning in full and clear detail
Use an appropriate tone for the audience
Use vivid and precise language
―The intelligent use of rhetoric… goes hand-in-hand with the development of a sound, logical argument.‖
―You must expose and criticize the bare bones of the argument – the claims, evidence, and assumptions,
independent of the rhetorical devices… added for impact and readability.‖
Unit 3 Textbook – Understanding the Customer
The marketing Concept
- Create customer value
- Deliver customer satisfaction
- Build relationship
Identifying consumer needs, and then producing the goods or services that will satisfy them while making a profit for the
Focusing on customer wants, so the organization can distinguish its products from competitors‘ offerings
Integrating all of the organization‘s activities, including production, to satisfy theses wants
Achieving long-term goals for the organization by satisfying customer wants and needs legally and responsibly
** Ex. Enterprise Rent-A-Car found that its customers didn‘t want to have to drive to its offices. Therefore, Enterprise
began delivering vehicles to customer homes or places of work.
** Ex. Disney found that some of its patrons really disliked waiting in lines. In response, Disney began offering FastPass at
a premium price, which allows patrons to avoid standing in long lines waiting for attractions.
Production Orientation: An approach in which a firm works to lower production costs without a strong desire to satisfy the
needs of customers (industrial revolution in North America)
- Does not consider whether what the firm produces most efficiently also meets the needs of the marketplace
By implementing the marketing concept, an organization looks externally to the consumers in the marketplace and
commits to customer value, customer satisfaction, and relationship marketing.
The ratio of benefits to the sacrifice necessary to obtain those benefits, as determined by the customer; reflects the
willingness of customers to buy a product
- Core business strategy
- Rooted in the belief that price is not the only thing matters
** Ex. Automobile Industry – Lexus adopted a customer-driven approach, with particular emphasis on service. The service
quality goal is to treat each customer as one would treat a guest in one‘s home, to pursue the perfect person-to-person
relationship, and to strive to improve continually.
Enabled Lexus to establish a clear quality image and capture a significant share of the luxury car market. Customer Satisfaction
The customers‘ feeling that a product has met or exceeded expectations
Relationship marketing: A strategy that focuses on forging long-term partnerships with customers by offering value and
providing customer satisfaction
Companies benefits from repeat sales and referrals
o Costs fall because it is less expensive to serve existing customers than to attract new ones.
- Keeping an existing customer costs about ¼ of what it costs to attract a new one.
- Retaining a customer is more than 60%, landing a new one is less than 30%
Benefits from stable relationship with suppliers
o Essential to producing high quality products while cutting costs
Customer Relationship Management (CRM)
- Process used by organizations to track and organizes information about current and prospective customers.
Loyalty programs (frequent-buyer clubs)
o Excellent way to build long-term relationship
o Ex. Airl