MGMT 105: EXAM 1
81 Cards in this Set
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Business
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organization that provides goods to earn profits
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Profits
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difference between a business's revenue and expenses
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External Environment
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everything outside an organization's boundaries that may affect it
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Economic System
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a nation's system for allocating its resources among its citizens, both individuals and organizations
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Factors of Production
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the resources that a country's businesses use to produce goods and services
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What are the factors of production?
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Labor, Capital, Investors/Entrepreneurs, Physical Resources, Information Resources (LCIEPI) (PLICIE)
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Labor
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human resources, man power
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Capital
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Money
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Investors/Entrepreneurs
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Guys who start something new
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Physical Resources
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People, materials, land, machinery, utilities
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Information Resources
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info on economic situation & environment
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Planned Economy
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Economy that relies on a centralized government to control all or most factors of production and to make all or most production and allocation decisions
- i.e. Communism/Socialism
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Market Economy
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Individual producers and consumers control production and allocation by creating combination of supply and demand
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Mixed-Market Economy
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feature characteristics of both planned and market economies
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Privitizations
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Process of converting government enterprises into privately owned companies
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Demand
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willingness and ability of buyers to purchase a product
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Law of Demand
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consumers buy more of a good when its price decreases and less when its price increases
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Supply
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willingness and ability of producers to offer a good or service for sale
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Law of supply
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When the price of a good rises, suppliers increase their quantity supplied for that good
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Private enterprise system
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One that allows individuals to pursue their own interest with minimal gov. restriction
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Private property rights
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ownership of the resources used to create wealth is in the hands of individuals
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Freedom of choices
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the freedom to make decision independently
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Competition
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when 2 or more companies vie for the same resources and customers
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Degrees of Competition
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Perfect Competition
Monopolistic Competition
Oligopoly
Monopoly
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How competition works
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The more stiff the competition:
- The higher the # of competitors
- The easier it is to enter the market
- Higher similarity of goods
- Less control on prices
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Sherman Anti-Trust Act 19
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First federal action against monopolies
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Clayton Act of 1914
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helps stop monopoly before it develops, stops price discrimination, tying contracts, exclusive dealing
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Conditions for Perfect Competition to Exist
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1. All industries must be small
2. # of industries must be large
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Monopolistic Competition
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A market structure in which barriers to entry are low and many firms compete by selling similar, but not identical, products
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Oligopoly
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Characterized by a handful of large sellers with price influence over their products
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Monopoly
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there is only one producer that can therefore set the prices of its products
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Natural Monopoly
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one company can most efficiently supply all needed goods or services
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Economic indicators
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stats that snow whether an economic system is strengthening, weakening, or remaining stable
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Ethics
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beliefs about what is right and wrong or good and bad in actions that affect others
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Business Ethics
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refers to ethical or unethical behaviors by employees in the context of their jobs
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Ethical Behavior
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behavior that conforms to individual beliefs and social norms about what's right and good
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Unethical behavior
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behavior that conforms to individual beliefs and social norms about what is defined as wrong and bad.
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What is the most formative source of our code of ethics?
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FAMILY
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Who influences you the most during teenage years?
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Peers, friends
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Managerial Ethics
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standards of behavior that guide individual managers in their work
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5 most common unethical behaviors in the workplace
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1. Misusing company time
2. Abusive behavior
3. Theft
4. Lying to employees
5. Violating company internet policies
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2 ways companies commit to ethical practices
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1. Adopting written codes
2. Institutes ethics programs
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Core and Principal Values
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Core Principals - don't change
Organizational Objectives - changed infrequently
Strategies and practices - revised frequently
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Corporate Social Responsibility (CSR)
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- Companies have a responsibility to the environment, where they live, commitment to groups and social environments.
- Companies are worried about society, not just money.
- Companies will reap success through helping the world.
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Stakeholder Theory
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the central focus is giving attention to every stake holder in the entire company
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Whistleblowing Act
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if you're a federal employee, and see an unethical act, you can feel free to report that act without fear of repercussion
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What is education?
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Freedom from perfection
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Pedagogy of Distress
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Ignorance is costing you information
Don't judge people you don't even know, you don't know their life
Know yourself so well that you are a holistic person
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3 muscles
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1. Curiosity
2. Appreciation
3. Imagination
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The whole is greater than the sum of its parts
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Only through parts does the whole exist
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Ethics (Musoma)
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Rules of life
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Veritas
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truth
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What should education of history bring you?
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Sorrow and grief
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Change is painful
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Pain is changeful
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Education is the _______
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Search for the truth
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Ladder of Inference
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https://solesadmissions.files.wordpress.com/2013/04/lucia.png
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Prejudice and Ethnocentrism
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Everyone is (America is the best)
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Musoma's 4 rules
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1. Be impeccable with your work (use integrity, truth, and love)
2. Don't take anything personally
3. Don't assume
4. Always do your best
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Organizational Stakeholders
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groups, individuals, and organizations that are directly affected by the practices of an organization and who therefore have a stake in its performance
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Advent GX
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Est. in 2004
Texas A&M University spin-off
Economic Analysis and Econometric modeling
Innovation and entrepreneurship
Business incubation
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Customers of Advent GX
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Rural & underserved urban communities
State governments
Private Industry: US, Mexico, Costa Rica
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Experimental Economics
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The use of experimental methods to evaluate theoretical predictions of economic behavior
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Financial Engineering & Business Analytics
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a cross-disciplinary field which relies on computational intelligence, mathematical finance, numerical methods and computer simulations to make trading, hedging and investment decisions, as well as facilitating the risk management of those decisions
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MGMT 9/18, recap
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...
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Trade and Investment
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immensely beneficial for Americans
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Trade has __________ of growth vs. the economy
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grown at double the rate
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80% of US products assembled _____
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outside the US
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Unemployment can mean higher ______
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output per worker
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As exports went up ____
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unemployment went down
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Import
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product made or grown abroad but sold domestically
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Export
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product made or grown domestically but shipped and sold abroad
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North American Free Trade Agreement
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Agreement to gradually eliminate tariffs and other trade barriers among the US, Canada, and China
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European Union
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Agreement among major European countries to eliminate or make uniform most trade barriers affecting group members
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Balance of Trade
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Economic value of all products a country exports minus the economic value of all products it imports
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Top 4 US Trading Partners
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1. China
2. Canada
3. Mexico
4. Japan
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Trade deficit
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situation in which a country's imports exceed its exports, creating a negative balance of trade
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Trade surplus
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Exports exceed imports
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Exchange rate
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rate at which the currency of one nation can be exchanged for the currency of another nation
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Euro
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a common currency shared among most of the members of the EU (Not demark, sweden and UK
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Absolute advantage
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the ability to produce a product more efficiently than any other country
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Comparative advantage
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the ability to produce some products more efficiently than others
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MGMT 105: EXAM 3