ADMN 400 Final Exam exam with complete solutions

what is a business? - Answer-an organization that provides goods or services to earn a profit not-for-profit business - Answer-exist for a social purpose (i.e. environmental preservation, mental health, decreasing homelessness) what are the roles/impacts of business on society - Answer-1. Employment 2. Production of the goods and services that we want and need 3. Innovation of new goods/services that we don't know we want/need 4. OVERALL (profit and non-profit): influence an economy's standard of living (higher output=higher standard of living) Distinctive Competency - Answer-core skills and practices that increase the competitiveness of an organization and make it different from its competitors 2 categories of distinctive competencies - Answer-1. New niche in an established market 2. New market Product ecosystem (an emerging distinctive competency) - Answer-a set of products that are used complementary to one another (ex: smart home devices) Corporate Social Responsibility - Answer-the overall way in which a business attempts to balance its commitments to relevant groups and individuals in society (to its organizational stakeholders) while making decisions Who are organizational stakeholders? - Answer-customers, employees, owners/investors, local (and global) community, suppliersWhat are ethics? - Answer-guding principles that determine whats GOOD vs BAD or RIGHT vs WRONG How does social responsibility relate to ethics? - Answer-social responsibility is the practical application of ethical concerns for the benefit of society CSR determines what is allowable and what is not The Four Dimensions of CSR - AnswerThe Friedman Doctrine (1970) - Answer-Main argument: A company has no social responsibility to the public or society; its only responsibility is to its shareholders The 5 P's of the Marketing Mix - Answer-Product, Pricing, Place (Distribution), Promotion, People Target Marketing - Answer-particular group of people or organizations on which one's marketing efforts are focused Market Segmentation - Answer-process of dividing a market into categories of customer types/segments with similar interests, wants, and needs Product Positioning - Answer-the process of fixing, adapting, and communicating the nature of the product Competitive Advantage - Answer-a set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition 3 Types of Competitive Advantage - Answer-Cost - maintain profit margin at lower costs Product/Service Differentiation - includes brand names, image, product reliability, service quality, etc.Niche - Serving a specific segment of the population (and doing so really well) Identifying Market Segments - Answer-Geographic - where they live (neighborhoods, countries, etc.) Demographic - Age, income, gender, martial status, etc. Geo-Demographic - combo of first two Psychographic - lifestyles, interests, personalities Behavioral - how customers behave (those who buy inbulk, situation buyers during Halloween, etc.) 4 Methods of Market Research - Answer-Observation Surveys Focus Groups Experimentation