EC-907
This 4-letter acronym helps a firm identify its internal strengths and weaknesses alongside external opportunities and threats.
What is SWOT?
The primary goal of a "for-profit" business, calculated by subtracting expenses from revenue.
What is Profit?
The number of subordinates a manager can effectively direct.
What is the span of control?
This "P" involves the various channels a company uses to get the product to the final consumer.
What is place?
In a PESTEL analysis, this letter represents the influence of laws regarding labor, consumer protection, and health and safety.
What is L (Legal)?
Michael Porter defined three "Generic Strategies"; this one involves being the lowest-cost producer in an industry.
What is Cost Leadership?
An individual who risks time and money to start and manage a business.
What is an Entrepreneur?
An organizational structure that creates dual lines of authority, combining functional and product-based departmentalization.
What is matrix structure?
A pricing strategy where a firm sets a very low price to discourage competition from entering the market.
What is penetration pricing?
This economic indicator measures the change in the price of a "basket" of goods and services purchased by households.
What is the consumer price index?
This framework is used to analyze a company's macro-environment, covering Political, Economic, Social, and Technological factors.
What is PESTEL
The people who stand to gain or lose by the policies and activities of a business, including customers, employees, and stockholders.
Who are stakeholders?
The process of assigning decision-making authority to lower-level employees
What is Delegation?
This term refers to a group of products that are physically similar or intended for a similar market
What is a product line?
These are the actions of a central bank to manage the money supply and interest rates to control inflation.
What is Monetary Policy?
A firm achieves this when it implements a value-creating strategy that competitors are unable to duplicate.
What is Sustainable Competitive Advantage?
The standard of living is often measured by the amount of these two things that people can buy with the money they have.
What are goods and services?
A visual representation of a company's formal structure, showing reporting relationships and levels of hierarchy.
What is an organization chart?
The process of "branding" falls under this "P" of the marketing mix.
What is Product?
When a government changes its spending levels and tax rates to monitor and influence a nation's economy.
What is Fiscal Policy?
According to the BCG Matrix, a product with high market share in a low-growth industry is known by this bovine-inspired name.
What is a Cash Cow?
This term describes the trend toward a more integrated and interdependent world economy.
What is globalization?
This type of organization centralizes authority at the top, resulting in many layers of management.
What is a tall organization?
A strategy where a firm sets a high price for a new product to "skim" the maximum amount of revenue from layers of the market.
What is price skimming?
This demographic trend refers to the statistical study of human populations, such as age, race, and gender, which affects market demand.
What is demographics?