Class notes

Management Tools and Principles Concepts and Vocabulary

2 purchases

Course
Management Tools and Principles

Institution
IE University

Book
Business in Action, Global Edition

All basic concepts of Business Administration and Management are covered here. It includes all the key vocabulary and explanations of the chapters.

[Show more]

Preview 3 out of 26 pages

View example

Uploaded on June 16, 2021
Number of pages 26
Written in 2020/2021
Type Class notes
Professor(s) Leticia ponce
Contains All classes

business
business administration
bba
management
management tools
mangement tools and principles
ie
ie university

Book Title:Business in Action, Global Edition

Author(s):Courtland Bovee, John Thill

Edition:Unknown
ISBN:9781292160634
Edition:8

Institution
IE University
Education
Business Administration And International Relations
Course
Management Tools and Principles

macatr02

Member since 4 year 6 documents sold

$11.18

Add to cart

Add to wishlist

100% satisfaction guarantee
Immediately available after payment
Both online and in PDF
No strings attached

MANAGEMENT TOOLS AND PRINCIPLES

CHAPTER 1: Developing a Business Mindset

Intro VOCAB
-Business: Any profit-seeking organization that provides goods and services designed to satisfy
customers’ needs. Also called firm
- Revenue: Money a company brings in through the sale of goods and services.
- Business model: A concise description of how a business intends to generate revenue.
- Competitive advantage: Some aspects of a product or company that makes it more appealing to
target customers.
- Goods-producing businesses: Companies that create value by making “things” (most tangible)
-Service business: Companies that create value by performing activities that deliver some benefit to
customers.
-Barrier to entry: Any resource or capability a company must have before it can start competing in
a given market.

MANAGERS
-Human skills (communicative, motivate, lead, inspire enthusiasm and trust)

RISK AND REWARD
-A company needs to see some promise of reward before it will decide to accept the risks involved
in creating and selling products.
- if the decisions turn out bad, that company should suffer the consequences, not someone else.

BUSINESSES
- Composed of ppl, have a purpose, a deliberate structure
-Businesses add value by transforming lower-value inputs to higher-value outputs.
- 2 categories: goods producing (need + money) and services businesses (need + ppl)

BUSINESS MODEL CANVAS
- Value: the advantages of the product/service
- Costumer Target: audience (mass, or specific)
-Costumer relations: How to get people to buy it
-Channels: How to sell the product (online, retails stores).
-Retail activities: marketing, design, R&D (investigation)
-Key resources: people, tech, patents
-Key partners: Original Equipment Manufacturers (OEM)
-Revenue streams:
-Costs: manufacturing, labor, marketing, distribution

3 STEPS TO MAKE THE LEAP FROM CONSUMER TO BUSINESS PROFESSIONAL
- develop a business mindset that views business from the inside out rather than the outside in
-Recognize the positive and negative effects that business can have on society
- Develop a business vocabulary and explore the wide variety of jobs in the field of business

FIVE MAJOR ENVIRONMENTS IN WHICH EVERY BUSINESS OPERATES

,-Social: trends
- Tech: can create and destroy markets
- Economic: cost and availability of goods, services, labor
-Legal and regulatory: rules and regulations relating to business activity
- Market: target costumers, the buying influences that shape the behavior of those customers, and
competitors that market similar products to those customers.

PESTLE (environments for business)
-Political: type of government, situation of the country
-Economic: conditions, GDP, inflation
-Social: trend, culture, demographics, religion
-Technology: number of patents, innovation, penetration of internet, number of smartphones,
infrastructure of a country. Tech can also disrupt businesses.

DISRUPTIVE TECH
-3D Printing
-Artificial intelligence
-Automation
-Internet of things
-Mobile connectivity
- Augmented reality (seeing something in the phone that isn’t there pokemon go)

PURPOSE OF THE SIX MAJOR FUNCTIONAL AREAS IN A BUSINESS ENTERPRISE
-Research and development (R&D): designs and creates the goods and services that a company can
manufacture or perform for its customers.
- Information Technology (IT): Systems that promote communication and information usage
through the company or that allow companies to offer new services to their customers.
-Manufacturing: production, or operations is the part of the company where the firm makes
whatever it makes or performs whatever services it performs.
-Marketing: sales, distribution, and customer support are responsible for identifying market
opportunities, crafting promotional strategies, and making sure customers are supplied and
satisfied with their purchases.
- Finance and accounting: plan for the company’s financial needs, control spending, and report on
financial matters.
- Human resources: recruits, hires, develops, and supports employees.

SEVEN OF THE MOST IMPORTANT BUSINESS PROFESSIONS.
-Operations managers: oversee all the people and processes involved in creating the goods and
services that a company sells.
-HR specialists and managers: plan and direct HR activities such as recruiting, training and
development, compensation and benefits, employee and labor relations, and
health and safety.
-Information Technology managers: oversee the design, implementation, and maintenance of
systems that help deliver the right information at the right time to the right people in the
organization. Communication aswell.

, -Marketing specialists: perform one or more tasks involved in identifying and understanding
market opportunities and shaping the product, pricing, and promotional strategies needed to
pursue those opportunities.
-Sales professionals: build relationships with customers and help them make purchase decisions.
-Accountants: collect, analyze, and report on financial matters; they also perform audits to verify
financial reports or find ways to lower costs.
-Financial managers: plan for the company’s financial needs, invest funds, and raise capital.

SEVEN COMPONENTS OF PROFESSIONALISM.
-Professionalism is the quality of performing at a high level and conducting yourself with purpose
and pride.
-Seven key traits of professionalism are:
- striving to excel
- being dependable and accountable
- being a team player
- communicating effectively
- demonstrating a sense of etiquette
- making ethical decisions
- maintaining a positive outlook.

CHAPTER 2: Understanding Basic Economics
L.Os
1. Define economics, and explain why scarcity is central to economic decision making
2. Differentiate among the major types of economic systems
3. Explain the interaction between demand and supply.
4. Identify four macroeconomic issues that are essential to understanding the behavior of
the economy.
5.Outline the debate over deregulation, and identify four key roles that governments play in
the economy.
6. Identify the major ways of measuring economic activity.

ECONOMICS
-Study of how a society uses its scarce resources to produce and distribute goods and services.
-Scarcity is a crucial concept in economics because it creates competition for resources and forces
everyone to make trade-offs.

VOCAB
-Microeconomics: The study of how consumers, businesses, and industries collectively determine
the quantity of goods and services demanded and supplied at different prices.
-Macroeconomics: The study of “big-picture” issues in an economy, including competitive behavior
among firms, the effect of government policies, and overall resource allocation issues
-Natural Resources: Land, forests, minerals, water, and other tangible assets usable in
-Human resources: All the people who work in an organization or on its behalf.
-Capital: The funds that finance the operations of a business as well as the physical, human-made
elements used to produce goods and services, such as factories and computers.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller macatr02. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $11.18. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

69411 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling

Class notes

Management Tools and Principles Concepts and Vocabulary

Document information

Subjects

Connected book

Written for

Seller

Reviews received

Content preview