MGMT 2150 STUDY GUIDE
Why study business? - Answers - -Help choose a career
-Improve your career →learn interpersonal, analytical, technical and conceptual skills
-Become a better informed consumer and investor →understand purchase decisions
-Influential community member →direct purchasing power and influence that aligns with
values
Business - Answers - organization that offers products to satisfy society's needs and
wants often in exchange for money
Good - Answers - tangible product, can see and touch
Service - Answers - intangible product, experience or use
Successful businesses combine four types of resources: - Answers - - material (raw in
manufacturing, buildings machinery),
- human (provide labor to business for wages),
- financial (money to pay employees, purchase etc),
- informational (tells manager how effectively other resources are being combined.
Key Business Activities - Answers - marketing and sales, accounting and finance,
production and operations, HR. research and development
Employees key activities in a successful business: - Answers - - marketing and sales
- accounting and finance
- production and operations
- human resources
- research and development
The benefits of Business to Society - Answers - -Offering valuable goods and services
-Providing employment
-Improving quality of life
-Improving Standard of living
-Driving innovation and creativity
How is Offering valuable goods and services a benefit of business to society? - Answers
- satisfy needs of stakeholders
How is providing employment a benefit of business to society? - Answers - -companies
(auto industry) improve over the decade by increasing quality, choice, convenience,
health and safety, value for money
,How is Improving quality of life a benefit of business to society? - Answers - - paying
taxes
-charitable giving and community development (cash, products, employee time) and
contributing to economic growth (create employment by growth for company and
suppliers)
Quality of Life - Answers - the general well-being and happiness of people,
communities, and societies; includes measuring such things as access to healthcare,
education, and food
Standard of living - Answers - amount of products available, wealth of the nation and
lifestyle opportunities
How is driving innovation and creativity a benefit of business to society? - Answers -
generate new idea, process, product, technology and the like
Concerns about the impact of business on society - Answers - -Health and safety risks
-Environmental damage
-Community impact
Health and safety risks: - Answers - production environ, unsafe materials in
manufacturing and unsafe product design, physical or psychological
Environmental damage - Answers - production causes consumption of natural
resources (when not sustainable causes irreversible damage)
Community impact - Answers - increased traffic, crowd schools, damage businesses
change culture of community in unwanted ways, employee feels they don't benefit from
success of company because of poor compensation, business failing can put people out
of work
Environmental scan - Answers - the process of gathering info about the external
environment to determine how it may impact the business's operations
The six factors of business environment are: - Answers - -political/economic
-competitive
-global
-technology
-social
Political factor - Answers - affect job opportunities, potential income, quality of life
Economic Factor - Answers - downturn unemployment increases/consumer spending
for discretionary items decrease/gov receives less tax revenue and in upturn it
decreases, consumer spending for discretionary items increases
, competitive factor - Answers - focus on strategies such as cutting costs, development of
new products, and increased marketing/branding efforts, compete with other Canadian
business
global factor - Answers - compete with businesses across the globe
technology factor - Answers - change production and distribution products,
communication with customers changed
social factor - Answers - change in demographics of population
Business Success Factors - Answers - -Understanding the target market
-Providing a perception of value for the customer
-Achieving financial performance
-Creating and innovating
-Gaining employee commitment
Business risk - Answers - any factor that will lower profits, prevent a business from
meeting its goals, or even cause business failure
Risk Management - Answers - identify, evaluate, and prioritize risks so that the business
can coordinate business resources to minimize, monitor, and hopefully remove the risk
Strategies to managing risk - Answers - - risk control and reduction
-risk avoidance
-risk transfer
Types of risk - Answers - -compliance (violate laws and regulations)
-financial (internal and external loss)
-market and competition (customer pref change and comp challenges)
-operational (company not operating at peak performance)
-reputational (loss of credibility)
-technology (tech not functioning because of data or security issues)
Technical skills - Answers - perform responsibilities and understand integrated nature of
business, numeracy, reading, writing
Business skills - Answers - technology/digital, communication, analytical
thinking/effective decision making/complex problem solving, adaptability/flexibility,
creativity/innovation, time management, teamwork, leadership
Economics - Answers - the study of how choices affect the acquisition, production, and
distribution of scarce resources
--Includes what materials are used to produce products, who owns the factors of
production, how much product available, and who receives the products
Why study business? - Answers - -Help choose a career
-Improve your career →learn interpersonal, analytical, technical and conceptual skills
-Become a better informed consumer and investor →understand purchase decisions
-Influential community member →direct purchasing power and influence that aligns with
values
Business - Answers - organization that offers products to satisfy society's needs and
wants often in exchange for money
Good - Answers - tangible product, can see and touch
Service - Answers - intangible product, experience or use
Successful businesses combine four types of resources: - Answers - - material (raw in
manufacturing, buildings machinery),
- human (provide labor to business for wages),
- financial (money to pay employees, purchase etc),
- informational (tells manager how effectively other resources are being combined.
Key Business Activities - Answers - marketing and sales, accounting and finance,
production and operations, HR. research and development
Employees key activities in a successful business: - Answers - - marketing and sales
- accounting and finance
- production and operations
- human resources
- research and development
The benefits of Business to Society - Answers - -Offering valuable goods and services
-Providing employment
-Improving quality of life
-Improving Standard of living
-Driving innovation and creativity
How is Offering valuable goods and services a benefit of business to society? - Answers
- satisfy needs of stakeholders
How is providing employment a benefit of business to society? - Answers - -companies
(auto industry) improve over the decade by increasing quality, choice, convenience,
health and safety, value for money
,How is Improving quality of life a benefit of business to society? - Answers - - paying
taxes
-charitable giving and community development (cash, products, employee time) and
contributing to economic growth (create employment by growth for company and
suppliers)
Quality of Life - Answers - the general well-being and happiness of people,
communities, and societies; includes measuring such things as access to healthcare,
education, and food
Standard of living - Answers - amount of products available, wealth of the nation and
lifestyle opportunities
How is driving innovation and creativity a benefit of business to society? - Answers -
generate new idea, process, product, technology and the like
Concerns about the impact of business on society - Answers - -Health and safety risks
-Environmental damage
-Community impact
Health and safety risks: - Answers - production environ, unsafe materials in
manufacturing and unsafe product design, physical or psychological
Environmental damage - Answers - production causes consumption of natural
resources (when not sustainable causes irreversible damage)
Community impact - Answers - increased traffic, crowd schools, damage businesses
change culture of community in unwanted ways, employee feels they don't benefit from
success of company because of poor compensation, business failing can put people out
of work
Environmental scan - Answers - the process of gathering info about the external
environment to determine how it may impact the business's operations
The six factors of business environment are: - Answers - -political/economic
-competitive
-global
-technology
-social
Political factor - Answers - affect job opportunities, potential income, quality of life
Economic Factor - Answers - downturn unemployment increases/consumer spending
for discretionary items decrease/gov receives less tax revenue and in upturn it
decreases, consumer spending for discretionary items increases
, competitive factor - Answers - focus on strategies such as cutting costs, development of
new products, and increased marketing/branding efforts, compete with other Canadian
business
global factor - Answers - compete with businesses across the globe
technology factor - Answers - change production and distribution products,
communication with customers changed
social factor - Answers - change in demographics of population
Business Success Factors - Answers - -Understanding the target market
-Providing a perception of value for the customer
-Achieving financial performance
-Creating and innovating
-Gaining employee commitment
Business risk - Answers - any factor that will lower profits, prevent a business from
meeting its goals, or even cause business failure
Risk Management - Answers - identify, evaluate, and prioritize risks so that the business
can coordinate business resources to minimize, monitor, and hopefully remove the risk
Strategies to managing risk - Answers - - risk control and reduction
-risk avoidance
-risk transfer
Types of risk - Answers - -compliance (violate laws and regulations)
-financial (internal and external loss)
-market and competition (customer pref change and comp challenges)
-operational (company not operating at peak performance)
-reputational (loss of credibility)
-technology (tech not functioning because of data or security issues)
Technical skills - Answers - perform responsibilities and understand integrated nature of
business, numeracy, reading, writing
Business skills - Answers - technology/digital, communication, analytical
thinking/effective decision making/complex problem solving, adaptability/flexibility,
creativity/innovation, time management, teamwork, leadership
Economics - Answers - the study of how choices affect the acquisition, production, and
distribution of scarce resources
--Includes what materials are used to produce products, who owns the factors of
production, how much product available, and who receives the products
