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Chapter

Comm 103

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Department
Commerce
Course
COMM 103
Professor
Gregory Libitz
Semester
Fall

Description
Chapter 1 1. Commercial Endeavours: the markets the organization serves, the products & services it offers, & the needs is professes to meet in the marketplace 2. Employee Interaction: the value-creating skills and organization’s employees bring to the marketplace. The success of many businesses lies with the specialized skills that exist within its labour force 3. Organizational Efficiency and Structure: a reflection of the complexities of the business activities that circulate within an organization 4. Business: the mission-focused activities aimed at identifying the needs of a particular market(s), & the development of a solution to such needs through the acquisition & transformation of resources into goods &services that can be delivered to the marketplace as a profit 5. Assets: the infrastructure & resource base of the organization 6. Labour: the human resources of the business 7. Capital: the money needed by an organization to support asset-based expenditures, meet operating cash requirements,& invest in the development of new products &/or services which the organization desires to introduce into the market 8. Managerial Acumen: the foresight, drive, knowledge, ability, decision-making competency, & ingenuity of the organization’s key individuals- its owners or top-level managers 9. Business Model (System):the operational platform or structure that a business uses to generate revenue and profit 10. Competitive Advantage: an advantage an organization has over its competitors that enables it to generate more sales, achieve greater margins, achieve a lower cost base or attract & retain more customers 11. For-profit companies: organizations whose overarching objective is profitability and wealth creation on behalf of their shareholders & stakeholders 12. Not-for-profit organizations: organizations whose overarching objective is not profitability & wealth creation but to deliver services to the people, groups, & communities that they serve via a model of collective interest & social goal achievement 13. Stakeholders: individuals/groups/organizations that have a direct/indirect relationship with an organization, & that can be impacted by its policies, actions, & decisions. Stakeholders could include customers, suppliers, government, employees, etc. 14. Profit: the “bottom line” result an organization has realized for an identified, immediate period of time. Total Revenue – Total Expenses 15. Profitability: measures how well a company is using its resources over a specific period of time to generate earnings relative to its competitors 16. Stockholders: any person/company/organization that owns at least one share of stock in a specific company 17. Value Proposition: a statement that summarized whom a product/service is geared toward & the benefits the purchaser will realize as a result of using the product 18. Market Segment: a portion of the market that is deemed to posses unique characteristics businesses can target in order to generate a preference for their products and/ or services 19. Asset-based expenditures: expenditures for the purchase of assets required by a firm in order to support the company’s business operations, & which contribute to the firm’s ability to earn a profit 20. Operating expenditures: expenses incurred as a result of a company performing its normal business operations 21. Strategy: the development of plans & decisions that will guide the direction of the firm & determine its long-term performance 22. Tactics: the immediate term actions which a firm executes in order to meet the short- term objectives set forth in the current planning cycle Chapter 2 1. G7/8: a quasi-organization comprising the world’s major fully developed economies. Including U.S., Japan, Germany, Great Britain, France, Italy & Canada, later Russia. Meet once a year to discuss major economic, political & societal issues challenging the global marketplace. China attended recent meetings 2. Comparative Advantage: the ability of a country to produce/supply goods or services at a lower cost than other countries or to possess resources or unique services that are unavailable elsewhere 3. Foreign Direct Investment (FDI): occurs when a company or individual from one country makes an investment into a business within another country. This investment can reflect the physical ownership of productive assets or the purchase of a significant interest in the operations of a business 4. Law of Supply and Demand: refers to the ability of the market, independent external influences, to determine the price for which a product or service will be bought & sold 5. Open System: an economic system that adheres to the principles of economic freedom: the law of supply & demand, full & open access to the principles of private ownership, entrepreneurship, & wealth creation, & an absence of regulation on the part of the government 6. Controlled System: refers to an economic system where the fundamentals of the law of supply & demand, private ownership, entrepreneurship, & wealth creation are largely restricted or absent, & the government fully controls the economic direction & activity 7. Mixed Economic System: an economic system that contains components of both open an controlled systems. It includes the core principles of economic freedom, with some degree of centralized economic planning & government regulation & involvement 8. Expenditures: the purchases you make in support of your day-to-day economic activity that are deemed to be of value in meeting sustenance needs & in improving your overall quality of life 9. Savings: dollars you set aside today that will support economic activity & wealth creation in/for the future 10. Capital Asset Investments: investments you are making today to further expand your capacity to conduct & expand your productivity & overall economic capacity 11. Credit: the borrowing of dollars to support expenditures of investments being made 12. Gross Domestic Product (GDP): the total market value of the goods & services a nation produces domestically over a period of time 13. Recession: a period of time that marks a contraction in the overall economic activity within an economy. A recession is typically believed to occur when an economy experiences two or more quarters of negative GDP movement 14. Chartered Banks: financial institutions regulated under the Canada Bank Act. Their primary responsibility is to bring together borrowers *lenders by accepting deposits & lending out money- all in a manner that safeguard the interest of their customers 15. Inflation: a rise in the level of prices of goods & services within an economy over a period of time 16. Parity: being equal of equivalent to; specifically the value of one currency being equal to that of another 17. Purchasing Power Parity (PPP): a measure that takes into account the relative cost of living & the inflation rates of each country, & adjusts the total value of economic activity accordingly 18. Hostile Takeover: refers to an attempt by a company to take over another company whose management & board of directors are unwilling to agree to the merger or takeover 19. PESTEL Analysis: a macro-level assessment of the political, economic, social, technology, environmental, & legal trends that can or will impact the markets within which an organization competes 20. Protectionism: the outcome of the intent of economic policies that are put in place to protect or improve the competitiveness of domestic industries via impeding or restricting the openness of a market or markets to foreign competitors through the use of tariffs, trade restrictions, quotas, artificial control of currency values, or other related activities 21. Purely Competitive Markets: markets that are characterized by a number of similar (undifferentiated) products or services, the absence of a dominant market leader, & few barriers to entry 22. Monopolistic Markets: markets that possess a number of different suppliers of products & services, but the nature of the product of service, along with the marketing effort initiated by businesses within the sector, has enabled true differentiation to set it 23. Oligopoly-based Markets: markets that contain a small number of suppliers that control a large percentage of market share within the market, & that compete on the basis of products &/or services that have achieved success in distinguishing themselves from their competitors 24. Monopoly-based Markets: markets that are served by a single product/ service supplier Chapter 3 1. IPO (Initial public offering): the sale of the company’s stock for the first time in the public marketplace with the intent to raise equity (money) to fund company growth & operations 2. Offshoring: transferring a component (operations, service, support) of a firm’s business systems to another country for the purpose of reducing costs, improving efficiency or effectiveness, or developing a competitive advantage 3. Out sourcing: contracting out a portion of, or a component of, a firm’s business system for the purpose of reducing costs, improving efficiency or effectiveness, acquiring expertise, or developing a competitive advantage 4. Economies of Scale: reductions in the cost base of an organization as a result of greater size, process standardization, or enhanced operational efficiencies 5. Liquidity: refers to the cash position of a company & its ability to meet its immediate debt & operational obligations. It also refers to the ability of the company to convert existing assets to cash in order to meet such obligations 6. Solvency: refers to the long-term ability to meet its ongoing debt and operational obligations, & to fund future growth 7. Credit Facilities: a general term that describes the variety of loans that could be offered to a business or country 8. Black Market: the illegal market that arises within economies where goods are scarce, taxation on such goods is high, or the prices of legitimate foods are beyond the capacity of significant segments of the population to buy 9. Sovereign Debt: debt issued or guaranteed by the national government 10. Balance of Trade: the relationship between imports & exports over a defined period of time. A positive balance (where exports exceed imports) is known as a trade surplus. A negative balance (where imports exceed exports) is known as a trade deficit 11. Current Account: a country’s net trade in goods & services (balance of trade surplus of deficit), plus net earnings from interest & investment & net transfer payments to & from the rest of the world during the period specified 12. Free trade Agreement: facilitates international trade between companies that is not constrained or regulated by governments, & that is not impacted via the use of tariffs, duties, or other monetary restrictions Chapter 4 1. Environmental Stewardship: the integration of sustainability values into the managing of environmental resources 2. Degradation: the deterioration of the environment through the depletion of resources & the destruction of ecosystems 3. Kyoto protocol: the 1997 international agreement that binds participating nations into stabilizing & reducing greenhouse gas (GHG) emissions 4. BTU British Thermal unit: a measure of heat required to raise the temperature of one pound of water by 1degree F. 5. Peak Model Theories: based on the belief that resources are finite & that, at some point in time, the availability of such resources will pass their maximum production point & begin to decline 6. Feed-in Tariffs: are government payments subsidy arrangements whereby participants are paid a guarantee premium for energy developed through the adoption of alternate energy sources 7. Resource Management: the ability to actively manage existing supplies & regenerate new supplies of materials in such a way that we minimize resource depletion 8. Sovereign Wealth Funds: are country or state owned investment funds 9. Cost of Capital: the cost of company funds (both debts and equity) 10. Financial Protectionism: refers to government actions or policies that restrict or restrain the outflow of funds from on economy to another 11. Eco-efficiency Management:: the tactical shift required within our business operations to maximize the efficiency of our resource utilization & minimize or eliminate the resulting current degradation to the planet. 12. Productivity Cycle: includes the processes involved in the transforming materials into a product or service available for sale in the marketplace Chapter 5 1. Ponzi Scheme: a type of investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors 2. Ethics: a reflection of the moral principles or beliefs about what an individual views as being right or wrong 3. Integrity: honesty, reliability, ethics, moral judgement 4. Board of Directors: the term for the governing body of a corporation, comprising individuals chosen or elected to oversee the management of the organization 5. Whistleblowing: the process through which an individual informs someone in authority of a dishonest act of the dishonest behaviour of another person 6. Code of Conduct: the name for a statement that describes the required responsibilities, actions, & rules of behaviour of an organization’s employees 7. Forensic Accounting: the integration of accounting, auditing, & investigative skills 8. Corporate Social Responsibility (CSR): the understanding that the purpose of an organization is to create shared value (business & society) by strategically integrating into its actions a partnership mentality with society where the objectives of both parties are met Chapter 6 1. Mission: defines an organization’s purpose or reason for existence 2. Vision: a forward-thinking statement that defines what a company wants to become and where it is going 3. Harvesting: a strategy that reflects a reduced commitment to a particular market given its perceived weak future growth or profitability potential 4. S.W.O.T.: Strengths, weaknesses, opportunities & threats 5. Corporate-Level Strategy: defines what the organization intends to accomplish & where it plans to compete 6. Business-Level Strategy: outlines specific objectives the organization hopes to achieve for each of its identified business initiatives and/or business units. 7. Operating Plan: a detailed, immediate-term set of objectives & correspo
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