Intro to Business

Final Exam

Study Guide

Chapters 8-13
In preparation for the final exam- please review the following terms:

OM (Operations Management): the development and administration of the

activities involved in transforming resources into goods and services.
Inputs: the sources such as labor, money, materials and energy that are converted
into outputs
Outputs: the goods, services, and ideas that result from the conversion of inputs.
Operations: the activities and processes used in making both tangible and
intangible products.
Production: the activities and processes used in making tangible products; also
called manufacturing.
Manufacturing: same as production.
Standardization: the making of identical interchangeable components or products.
Modular design: the creation of an item or modules that can be combined or
interchanged to create different products.
Customization: making products to meet a particular customers needs or wants
Capacity: the maximum load that an organizational unit can carry or operate.
Cad (computer-assisted design): the design of components, and processes on
computers instead of on paper.
Continuous manufacturing organizations: companies that use continuously
running assembly lines, creating products with many similar characteristics.

Purchasing: the buying of all the materials needed by the organizations; also called
procurement.
Inventory: all raw materials, components, completed or partially completed
products, and pieces of equipment a firm uses.
JIT (just-in-time inventory management): a technique using smaller quantities of
materials that arrive just-in-time for use in the transformation process and therefore
require less storage space and other inventory management expense.
TQM (total quality management): a philosophy that uniform commitment to quality
in all areas of an organization will promote a culture that meets customers
perception of quality.
Intrinsic rewards: the personal satisfaction and enjoyment feel after attaining a
goal.
Extrinsic rewards: benefits and/or recognition received from someone else.
Maslows Hierarchy of Needs: a theory that arrange five basic needs of people
physiological, security, social, esteem, and self-actualization into the order in which
people strive to satisfy them.
Job rotation: movement of employees from one job to another in an effort to relieve
the boredom often associated with job specialization.
Job enlargement: the addition of more tasks to a job instead of treating each task
as separate.
Job enrichment: the incorporation of motivational factors, such as opportunity for
achievement, recognition, responsibility, and advancement, into a job.
Job sharing: performance of one full-time job by two people on part-time hours.
Compressed workweek: a four-day (or shorter) period during which an employee
works 40 hours.

Flextime: a program that allows employees to choose their starting and ending
times, provided that they are at work during a specified core period.
Selection: the process of collecting information about applicants and using that
information to make hiring decisions.
Recruiting: forming a pool of qualified applicants from which management can
select employees.
Title VII of the Civil Rights Act: prohibits discrimination in employment and crated
the Equal Employment Opportunity Commission.
Orientation: familiarizing newly hired employees with fellow workers, company
procedures, and the physical properties of the company.
Training: teaching employees to do specific job tasks through either classroom
development or on-the-job experience.
Development: training that augments the skill and knowledge of managers and
professionals.
Turnover: occurs when employees quit or are fired and must be replaced by new
employees.
Transfer: a move to another job within the company at essentially the same level
and wage.
Promotion:

advancement

to

higher-level

job

with

increased

authority,

responsibility, and pay.

Commission: an incentive system that pays a fixed amount or a percentage of the
employees/ sales.
Labor unions: employee organizations formed to deal with employers for achieving
better pay, hours, and working conditions.

Collective bargaining: the negotiation process through which management and

unions reach an agreement about compensation, working hours, and working
conditions for the bargaining unit,
Boycott: an attempt to keep people from purchasing the products of a company.
Affirmative Action programs: legally mandated plans that try to increase job
opportunities for minority groups by analyzing the current pool of workers identifying
areas where women and minorities are underrepresented and establishing specific
hiring and promotion goals, with target dates, for addressing the discrepancy.
Marketing: a group of activities designed to expedite transactions by creating,
distributing, pricing and promoting goods, services, and ideas.
Value: a customers subjective assessment of benefits relative to cost in determining
the worth of a product.
Benefits: nonfinancial forma of compensation provided to employees, such as
pension plans, health insurance, paid vacation and holidays, and the like.
Target market: a specific group of consumers on whose needs and wants a
company focuses its marketing efforts.
Marketing mix: the four marketing activities product, price, promotion and
distribution that the firm can control to achieve specific goals within a dynamic
marketing environment.
Primary data: marketing information that is observed, recorded, or collected direct
Secondary data: information that is complied inside or outside an organization for
some purpose other than changing the current situation.
Retail: intermediaries who buy products from manufactures (or other intermediaries)
and sell them to consumers for home and household use rather than for resale or for
use in producing other products.

Wholesale: intermediaries who buy from producers or from other wholesalers and
sell to retailers.
Motivation: an inner drive that directs a persons behavior toward a goal.
Separation: employment changes involving resignation, retirement, termination, or
layoff.
Layoff: the a company let people go because of a financial problem.
Scabs: people hired by management to replace striking employees, also know as
strikebreakers.
Test marketing: a trial mini launch of a product in limited areas that represent the
potential market.
Branding: the process of naming and identifying products.
Push strategy: an attempt to motivate intermediaries to push the products down to
their customers.
Pull strategy: the use of promotion to create consumer demand for a product so
that consumers exert pressure on marketing channel members to make it available.
Blogs: web-based journals in which writers can editorialize and interact with other
Internet users.
Wiki: software that creates an interface that enables users to add or edit the content
of some types of Web sites.