Business Basics
This strategic analysis tool evaluates a company’s internal strengths and weaknesses along with external opportunities and threats.
What is a SWOT Analysis?
What does ROI stand for in finance?
Return on Investment
A specific group of consumers a company aims to reach
What is a target market?
This is a specific, measurable objective that the company aims to achieve.
What is a goal?
This strategy focuses on creating unique products and services.
What is Differentiation strategy (the luxury marketer)?
This term describes the amount of money a business earns before expenses are deducted?
What is Revenue?
This is the term for the cost of borrowing money?
What is Interest?
This term describes dividing a market into groups based on shared characteristics.
What is market segmentation?
This is the ‘road map’ for launching a new product.
What is a business plan?
This strategy focuses primarily on price.
What is a Cost Focus strategy (an analytic approach)?
This occurs when you don't produce enough product and miss sales opportunities.
What are lost sales?
Companies cannot pay this to shareholders if they made a loss in the prior quarter.
What are dividends?
These are the “4 Ps” of marketing.
What are Product, Price, Place, & Promotion
This is the goods and materials held in stock by a business for selling in the market to earn a profit.
What is inventory?
This is the main goal of a cost leadership strategy.
Sell as much as you can to increase market share.
is financial statement shows income, expenses, taxes, and profits.
What is the income statement?
This represents normal wear and tear of the plant and is not a cash expense.
What is depreciation?
This is what SEO stands for in digital marketing.
What is Search Engine Optimization?
This term describes when a company is trying to find new product ideas.
What is Research & Development? (or Product Development in BizSim)
The key characteristic of this strategy is flexibility in response to market conditions.
What is an emergent strategy (the opportunist)?
This financial statement is a snapshot in time that shows assets, liabilities, and equity.
What is the Balance Sheet?
This is what remains if you liquidate the company by selling assets and paying off all loans.
What is Equity?
This is the value a brand adds to a product, based on customer perception and loyalty; it allows premium pricing and customer trust.
What is brand equity?
This business strategy encourages organizations to continuously improve internal processes for efficiency and quality.
What is [total] quality management?
This strategy has a lower price on average and budgets more than competitors do in the area of marketing.
What is a cost leadership strategy (the mass merchant)?