Credit 1
Three Reporting Agencies Equifax, transunion, Experian
What was Glass-Steagall Act? Prevent investment bank and commercial bank merging and/or
working together. Investment bank get their money from investors. Commercial cannot use
depositors money to invest but they can loan. trying to reduce risk for investors/depositors.
And what was the Gramm Leach Bliley Act? Removed Glass-Steagall Act. So now, investment
bank and commercials are able to touch and use depositors money for investment. Increasing
risk because more money available and the moneys does not only belong to the investors, so a
wider range of people who are risking their saving (something like that) [use the money in high
risk DERIVATIVES] <<-- and that too, which increases the risk even more
-Created mainly by Steven Teng, Helen Yuan, Manna Chang
The business final will consistent of the follow:
Marketing - Chapters 13/14/15/16; 10/17/11, 10/24/11
Small businesses - Chapter ; 11/14/11
Documentary of credit cards (The secret history of credit cards)
Managerial theories of how to motivate workers (theories X Y Z) - Chapter 10; 10/31/11
notes
Basic questions on management - Chapters 5/6/(19)?
Leadership - Chapter 7; 11/7/11
Enterprise - Chapter 6; 11/21/11
Statistics (regarding small businesses) - notes
Union - notes 11/28/11
Market Research - Chapter 16
NOTES:
Marketing: process of planning, executing the conception, pricing, promotion, and distribution
of goods and services to facilitate exchanges that satisfy individual/organizational objectives
Four Ps of Marketing
Price: How do we price a product? What is its impact on marketing?
Product: what is it?
Promotion: How can we market our product in a way that it will make a return on our
investment? (ROI)
Place: where are we selling the product? Online/in-store? Where is this store?
Intermediaries - the middleman in distribution between the producers and
consumers
4 Eras of revolution:
Production: 1920s-1940s - produced as much as possible to persuade people to buy it.
Selling: 1950s - the golden era of the American economy marketed to those who came
back from WWII
Marketing concept (Aggressively implemented in the 1980s): we want the consumers to
have a response to our product.
Customer Orientation: What does the customer want?
Service Orientation: Customer satisfaction?
Profit Orientation: Focus on what generates profit, and expand on it.
Customer relationship (Started in 1990s/2000s)
2
Customer relationship management (CRM)
Encouraged buying as a life-style - buying doesnt entail only a product, a
relationship come with it!
Managing a relationship between customers to make them come back/create
loyalty
Marketing Research - analysis of markets to determine opportunities/challenges and to find
information to make good decisions
Process:
1) defining the question (problem/opportunity) and determining the present situation
2) Collecting Data
- Existing Data aka Secondary Data - data that was already gathered, HOWEVER it
should be used first so the company doesnt need to spend money to gather information that
has already been gathered
- New Data aka Primary Data - conducted through surveys and interviews... what have
you.
3) Analyzing Data
4) Choosing and implementing a solution
Environment Scanning- identifying factors that affect marketing success
Factors:- its usually for challenges or opportunities
Global - trade agreements; how is it affecting us?
Technological - bar codes; Track a consumers buying habits
Sociocultural - demographics; more non-whites than before; more diverse marketing
Competitive - what our competitors are doing that is better in marketing that we must do
Economic - how to market our products in a recession
Consumer Market - individuals or households that want goods/services for personal use
B2B or Business to Business Market - individuals or organizations that want goods/services
to use in producing more goods
Market Segmentation - dividing total market into several groups whose markets are similar
Target Segmentation - selecting groups an organization can serve profitably
Geographic Segmentation - dividing market by geographics
Demographic Segmentation - dividing market by age/income/education level etc.
Psychographic Segmentation - dividing market based on
lifestyle/morals/values/attitudes/interest
Benefit Segmentation - dividing the market by determining which benefits to talk about
Volume/Usage Segmentation - dividing the market by its volume
Niche Marketing - process of finding small but profitable market segment and finding/designing
products for that market
One to One Marketing - developing a unique mix of goods for each customer
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Mass-Marketing - developing products/promotions to please large groups
Relationship Marketing - goal is to keep customers over time by offering products that meet
their needs
Consumer Behaviors
Learning - through trial and error
Reference Groups - like magazines, other people (celebrities, business people you try to
emulate)
Culture
Subculture
Cognitive Dissonance - psychological conflict after a purchase
PROMOTIONS:
efforts by marketers to inform/remind people in the target market about
product/persuade them to participate in an exchange
Advertising - TV, posters, Internet, movies, commercials
Convinces people that they need an item when in reality they only want it
Emulating - An American thing; celebrity and sports endorsements.
Public Relation - evaluates the public and changes policies in response to the public;
great way to remind people of a companys brand
Personal Selling: physically involved with selling products
Sales Promotion - TV, Radio, Mix, how will we promote our sales?
IMC: Integrated Marketing Communication - combines all promotional tools into one
comprehensive unified promotional strategy using all these to create a positive brand image
How do we want our consumer to perceive our product? CONSTANT REMINDER;
combines with promotional mix to enhance the brand image; meet the customer needs
and promote the goal of the firm
Advertising - paid/non personal communication through various media by organizations and
individuals who are identified in the advertising message (tb definition)
Goals of Advertising:
i.
Inform
ii.
Persuade
iii.
Remind
Statistics: Over $200 billion spent on ads yearly in the US- 289 billion to be specific
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AAC Nielson - one of the most successful marketing research companies in the world aware of the current advertising trends (who advertises the most, what is changing, what
is going on in the world of marketing)
Google changed everything because companies are using google as a means to sell their
product.
Google is the #1 searching engine - people pay top dollar to increase their page rank
And google purchased Youtube - where they have advertisements as well
Google Analytics - analyzes clicks and the person to find out what sites they go on; this is realtime information; it allows google to understand the consumer and send out advertisements that
suit the consumer; allows Google to understand the buying profile of the customer
Propaganda - non-personal communication that does not have an identified sponsor
Infomercial - full length tv program devoted to promoting goods/services
Interactive Promotion - promotions that allow marketers to create a dialogue where buyers
and sellers WORK TOGETHER to create mutually beneficial exchange relationships
Global Advertising - a promo strategy that can be implemented worldwide
Advertising is moving from globalism to regionalism
Personal Selling - face to face presentation and promotion of goods and services
-> listens to the needs to reach solution and to do everything easier make things smoother!
1) Prospecting - researching potential buyers and seeing who is most likely to buy
Qualifying - selection process - making sure people have a need for that product;
authority to buy and willingness to listen to a sales message - these people are called
prospects
2) Preapproach - learn as much as possible about customers/wants and needs
3) Approach - give friendly professionalism, create rapport, build credibility and start relationship
4) Make a presentation - match a benefit to clients need
5) Answer objections - resolve doubts
6) Close sale - trial close- provide a question or statement that moves selling process
7) Follow - up - sales relationship may continue for years
Business to Consumer Sales - salesperson doesnt have to prospect/qualify
Retail doesnt have to go through pre-approach.
ROI - Return on Investment on Marketing - what is the best use of our money on advertising?
Purpose of advertising - sell more of product - are we getting an increase in sales?
Product Placement: product physically placed in a movie or a show where theyll be seen
Top Three: Coke, AT&T, Nike
Celebrity Endorsement
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Tiger Woods (Nike)
LeBron James (Coke)
Michael Phelps (Power Bar)
Threats: DVR/TIVO (people can skip the ads)
People started to watch less TV
Target Ideal Age Group: Single males 18-35 years old - no commitment; disposable income;
men at that age want to be COOL
Branding: A name, symbol, or design that identifies a good or services and
distinguishes it from competitors
Network is the key to advertising.
Psychographics
The combination of promotional tools an organization uses; it is made up of advertising,
personal selling, public relations, sales promotion.
Looks at a variety of characteristics of the ideal customer; attributes relating to
personality, values, interests, lifestyles; subconscious mind; very accurate
Major categories of advertising:
Advocacy - cheap advertising for businesses that support runs/walks (events)
Comparative - used to compare two products to make sure you will prefer theirs
Interactive - one on one
Online
Mobile - ads sent to your cellphone
Advertising expenditures as of 2008 in decreasing order:
1. Direct Mail
2. Broadcast TV
3. Newspaper
4. Cable TV
5. Radio
6. Yellow Pages
7. Consumer Magazine
8. Internet - was 4.3%; on the test put it as under 10%
However, TV is still the dominant media for advertising
Public relations: evaluates the public and changes policies in response to the public.
3 steps of a good PR program:
1. Listen to the public
2. Change policies and procedures
3. Inform people youre responsive to their needs
6
Publicity: Any information about an individual, product or organization thats distributes to the
public through the media and is not paid for or controlled by the seller.
Advantages of Publicity:
Free
Reaches people who would not look at an advertisement
More believable than advertising
Disadvantages of publicity:
No control over whether the media will use a story or when they may release it
It can be good or bad
Once a story has been run, it isnt likely to run again.
Viral marketing: paying customers to say positive things on the Internet or giving commission
to invite people to the site (invite a friend and get 10 dollars)
Blogs, podcasts, and emails are considered good ways to get information about a product
1-800- India - clash between old culture and new; impact on women becoming more
independent
TATA sold cars for 2,500 in India - marketing specifically targeted at the customer service reps
because they make 5,000 a year.
Marketing - Apple is amazing at marketing
Efficient marketing on a stock price - return on investment!
Apple store on 5th ave has the highest profit per square foot in the US
Ipad is effective with helping children with autism etc.
Steve Jobs was humble even though he was a billionaire
Those who work at the apple store are bright and know what theyre talking about
Developing Prices (TEXTBOOK)
Value - good quality at a fair price
Total Product Offer - everything consumers evaluate when deciding to purchase (aka value
package)
Product Line - group of products that are physically similar or intended for similar market
(Vanilla Coke, Diet coke, Cherry Coke, Coke Zero)
Product Mix - combination of all product liners offered by a manufacturer (Proctor and Gamble;
chips, laundry detergent, etc)
Product Differentiation - creation of real/perceived product differences
Convenience Goods/services - products consumer wants to purchase frequently with little
effort (Internet takes convenience to a whole new level)
Shopping Goods/Services - products consumers buy after comparing value/quality/price/style
from other sellers
Specialty Goods/Services - products with unique characteristics -> Brand identity -> People
think these are unique, customers will make that extra effort to purchase it
7
Unsought goods/services- products consumers are unaware of/dont think of buying right
away (coffin, etc)
Industrial goods - products used in production of other goods (B2B)
Installations - major capital equipment
Capital - products that cost a lot and last a long time
Accessory - products that are not as expensive/dont last as long and require less capital
-Packaging and branding make huge differences in attracting consumers
- Packaging MUST perform certain things because of the Fair Packaging and Labeling Act
1) Protect the goods/tamper-proof/deter theft/easy to open and use
2) Attract buyers
3) Describe contents/give information on contents
4) Explain the benefits of the goods
5) Provide information on the warranties/warnings/ other matters
6) Indicate price/value/uses
Brand - name/symbol/design or combination of those that identifies the goods/services from
competitors
Trademark - brand that is given legal protection for name and pictorial design - used to protect
reputations
Manufacturers Brand names - brand name of manufacturer that distribute nationally
Dealer (private label) - products that dont carry the manufacturers name but a distributor
name (CVS pretzels or something)
Generic name - name for a product category (nylon, zipper, kerosene) The names were so
popular that when thought of, it would be affiliated for those products, so it lost its status and
became a generic name which is decided in court
Generic Goods - non branded products that sell at sizable discount compared to private brands
- it has basic packaging and minimal/no advertising
Knockoff brands - illegal copies of national brand-names
Brand equity - combination of factors - awareness, loyalty, perceived quality, images, and
emotions people associate with a brand name
Brand loyalty - degree to which customers are satisfied with brand and are committed to
further purchase
Brand awareness - how quickly and easily a brand name comes to mind when a product
category is mentioned
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Brand association - linking a brand to other images
Brand manager - a product manager that has direct responsibility for one brand/product line
(product, price, promotion, place)
-80% of new products introduced fail to reach its objectives
Process of creating new products
1. Idea generation
2. product screening (reducing a lot of ideas to choosing one)
3. product analysis (cost estimates/sales forecast)
4. development
5. testing - taking product idea to consumers to see their reaction
6. commercializing - promoting product to distributors/retailers/developing strong
advertising/sales campaigns
-There are four stages in a product life cycle (theoretical model of sales/profit for product
overtime)
1) Introduction
2) Growth
3) Maturity
4) Decline
Differently cycles call for a different marketing strategy.
Objectives of pricing:
1) achieving target return/ making a profit
2) building traffic (making people come in to attract for other services)
3) achieving greater market share
4) creating an image
5) furthering social objectives
Target Costing (demand based) - designing a product so it satisfies customers/meets profit
fmargins
Competition Based Pricing - strategy based on what all other competitors are doing (above or
below)
Price Leadership - procedure which one/more dominant firms set prices that competitors follow
Breakeven analysis - process used to determine profitability at different levels of prices
Function: (Total Fixed Costs) / (price of 1 unit - variable cost of 1 unit)
FC / ( p - VC)
Total Fixed Costs - all expenses that remain the same no matter how many things are
sold/made
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Variable Costs - costs that change according to how much is produced
Skimming Price Strategy - new product is priced high to make optimum profit while there is
little competition
Penetration Strategy (LOL) - product is priced low in order to attract customers and discourage
competition
Every Day Low Pricing (EDLP)- setting prices lower than competitors but not having any
special major sales
High- Low Pricing strategy - setting prices higher than EDLP but having many special sales
where prices are lower than competitors (the problem with this is consumers will wait til a sale
occurs which takes a toll on profits)
Bundling - two or more products put together and sold as one unit
Psychological Pricing - making something look less expensive than it really is (390 dollars
instead of 400)
Demand-Oriented Pricing - price based on consumer demand
Demand collection system - buyers post what they are willing to pay and sellers either
accept or reject the offer
For the small organizations, they promote their customer service in order to compete with the
lower prices.
Small Business and statistics
5 reasons people why would set up their own business:
to control how they want to run a business
freedom
opportunity that exists in the market
necessity
challenge
Major challenges:
Time management
Separating work from family
Getting new customers
Reputation is like glass, once broken, it is forever damaged
Statistics: More than 20 million US business are micropreneurs (run from home)
50% are men; many are run by families
S.B.A. = Small Business Administration
Importance of Small Business:
Stats:
750,000 tax-paying employee hiring business started every year? .what does this
mean?
There are 26.8 million small businesses in the US
10
Create 75% of ALL jobs
Account for 50% of GDP in US
80% of Americans find their first job in a small business
Small businesses generate 60-80% of new jobs
Of all nonfarm business in the US, almost 97% are considered small
1. About 6 million women own small business
2. Minority run the businesses are the fastest growing segment of the US economy
For the past 10 years
Asian up 463%
Hispanics up 417%
African Americans 108%
Business Failures: 60% fail over the first 6 years, 80% first year
Businesses are made up of: 72% sole proprietorship, 8% partnerships, 20% corporation
Total receipts: 81% corporations, 13% partnership, 6% sole proprietorship
Credit Cards (Documentary)
-biz first began to take off in a farm: Sioux Fall, South Dakota
-post office
-meat industry
-now: processes a lot of credit card bills
-then: recession
-strict credit card laws: what interest rate they paid
-lifted ceiling on usury laws
-usury laws-limit max. interest rate lenders can charge on a loan
-1981- Citibank moved from NY to S. Dakota
-Marquette decision:
-1978: Supreme Court ruled that credit card issuers could charge out-of-state
customers with rate legal in issuers home state
-allowed to charge higher interest rates to riskier customers
-attracted banks by removing their usury caps on interest rates
http://www.creditcards.com/credit-card-news/marquette-interest-rate-usury-lawscredit-cards-1282.php
-Delaware copied S. Dakotas credit card legislation
-144 mil Americans have credit cards
-banks make money from credit card transactions
-dead beats are the ppl who pay their bills on time (55 million)
-90 mil Americans dont pay off their debts; pay minimum balance the revolvers
-average family debt: $8,000
-7 mil American families filed for bankruptcy in last five years
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-Andrew Karl - Credit Card Industry Consultant...innovations to get Americans to pay more on
their credit cards
-FICO score: medium: 720; highest: 850
-how likely they are to pay their bills
-lenders use this to calculate risk of potential customers
-1996: Smiley vs. Citibank
-lifted state restrictions on fees that credit card banks could charge e.g. late fees went
from $5 to $10, $15, $29, $39are these fees fair?
-doubled revenue generate from fees such as late fees, limit fees and return check fees
-interest rates not regulated. Can with 15 days notices. And fees now no longer
regulated. Changing fees, adding new feesanti-consumer market place
Office of comptroller of currency (the OCC)
-obscure agency in Washington
-part of the treasury department and regulates national banks that issue most of the
credit cards.
-Three goals: make sure banks dont fail, integrity of how banks operate their corporate
govt, and they deal fairly and honestly with customers
-ability to take enforcement action on bank i.e. with Providian
Providian:
-targeting ppl with questionable credit. Doubt digit growth. Ppl couldnt get credit cards
elsewhere. Number of complaints filed against them. Involved in questionable offers, policies,
procedures and operations. Was accepting payments from consumers on their accounts,
depositing their checks, but not crediting their accounts. Net result: consumers got charge with a
late fee. Holding payments so they could charge late fees, overdraft fees25% of their income
were from fees. Got by with it for a period of time.
-OCC contacted June Cravett (district attorney; San Francisco)OCC issued a challenge
instead of cooperating with the district attorney. Pre-emption was raised. They had federal
authority->real jurisdiction.
-Julie Williams Acting Comptroller, OCC: collaborative process. Says that they did cooperate.
-joint investigation: 300 mil$ settlement. Providian refused to be interviewed.
-Attorney General of NYS: occ is trying to squeeze out state presence to prevent them from
protecting consumers.
-issues of credit cards from major banks
-try to deal with credit companies
-heard from banks that they dont need to deal with state entities b/c occ told the banks
not to deal with state entities.
-one way turf battle b/w state entities and OCC. State entities acknowledge that OCC
has jurisdiction but occ is trying to squeeze states out in consumer protection (one area).
-2004: occ declared itself as is exclusive regulator of national bank. Cited Providian case as
proof of its commitment to consumer protection.
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-occ does not say that theyre going to stop unsound practices but just say its a problem.
-out of a thousand industries, most complaints in banking +credit card industry
-Andrew Kahr: credit card industry consultant: came up with 2% minimum monthly payment
instead of the usual 5%
2004-Senator Chris Dodd introduced a reform bill that would curb industry practice but many of
his previous attempts to reform the industry have all failed
-in the reform bill, he wanted banks to disclose how long customer wills need to
pay off their min. monthly payment
Managerial Theories that motivate workers
Hierarchy of needs: (Abraham Maslow)
1. The need for self-actualization (highest)
2. Experience purpose, meaning and realizing all inner potentials
3. Esteem need: need to be unique
4. Love and belonging needs
5. Security need
6. The physiological needs (lowest) - need for food, water, shelter, and clothing
McGregors theories X and Y:
X: average human beings have an inherent DISLIKE of work and want to avoid it. Their
motivators are FEAR AND MONEY
Y: average human beings seek responsibility in their work and learn to LIKE it.
Motivators are personal satisfaction
Herzbergs theory: motivators and hygiene factors. People love titles. (<-- offering incentives,
there is something to look forward to)
Ouchis theory Z: Long term employment instills loyalty. Workers will producer more the happier
they are. Loyalty is the key. This idea originated in Japan; however, long term employment does
not exist anymore, as people can be cut at any moment.
Outsourcing has turned these theories upside down. (India and China)
Elton Mayo Hawthorne: changing the environment, productivity went up and down.
Frederick Taylor: The principles of scientific management, father of time management
3 aspects of his findings: time; methods and rules of work
Victor Vroom: Expectancy theory - employee expectation can affect an individuals motivation.
Amount of EFFORT exerted depends on EXPECTATION of outcome. Endure pain
something that motivates people.
Reinforcement theory and behavior modification: positive and negative comments have
specific effects on how people behave in a work place. Good job! as opposed to
Youre horrible!
Pavlov: 1849-1936 (and his dog)
He believed that humans can be trained like dogs. Automatons
Management
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Management: process used to accomplish (it equals =>) organizational goals through:
Four Functions of Management (POLC)
1. Planning
a. anticipating trends and determine the best strategies and tactics to achieve
organizational goals and objectives
2. Organizing
a. designing structure of the organization and creating conditions and systems in
which everyone and everything works together to achieve it
3. Leading (Independency)
a. creating a vision for organization and guide everyone else in a way that everyone
can achieve goals and objectives in a timely manner
4. Controlling
a. establish clear standards to determine whether an organization is progressing
toward its goals and objective
i.
reward the good
ii.
correct the existing mistakes
Bad Managers
James Cayne (Bear Sterns)
Richard Fuld (Lehman Brothers)
Kerry Killinger (Washington Mutual)
Phillip Schoonover (Circuit City)
SWOT Analysis
Part of management notes are in Leadership section:
Leadership
Qualities of a good leader:
1. Action through example
2. Listening to all parties
3. Conflict resolution
4. Decisive but not a bully
5. Understand personal weaknesses
6. Fearless, willing to stand up
7. Persistent
8. Willingness to take risk
9. Ready for resistance
Great leaders create visions based on universal values and rally others around their vision,
inspiring action on a consistent basis.
Respect and how to get it:
1. Strong management
2. Sound business strategy
3. Ethical practices
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4. Competitive edge
5. Product innovation
Mission statement: outlines the organizations fundamental purposes. Includes:
self-concept
philosophy
long-term survival needs
customer needs
social responsibility
nature of the product or service
Set goals and objectives: goals are the broad long-term accomplishments an organization
wishes to attain. Objectives are the specific short-term statements detailing how to achieve the
goals.
Planning**
Strategic planning: long term
Tactical planning: short-mid term
Operational planning: day to day
Contingency planning: disaster management; looks at problems and how we deal with it
What successful leaders have in common:
They achieved what was deemed, at the time, impossible, through sheer will and
determination
By also inspiring others to follow their vision
Process:
1. Vision
2. Inspiration
3. Meticulous planning
4. Efficient execution
5. Achievement
Enterprise:
Components of a Business Plan (20-100pgs): For more info, look all the way down
Executive Summary
Company Background
Management Team
Financial Plan (most important)
Capital Requirement
Marketing Plan
Location analysis
Manufacturing plan
Forms of Business
Sole proprietorship: managed by one person
Partnership: two or more people agree to become co-owners
15
General Partnership vs. Limited Partnership/Master Limited Partnership vs.
Limited Liability Partnership
looks much like a corporation
who pays the debt and who doesnt
General Partner vs. Limited Partner
limited partner who invests money in business and enjoy limited
liability
Corporation: a legal entity with authority to act and have liability apart from its owner
owners are not responsible for debt if business goes bankrupt
Following with a lot of pro and cons for each: You can look that up yourself. --- Or update later.
Private vs Public Corporation:
Going public: getting access to capital.
Private: dont want to lose control. Private companies have a huge impact but not too
well known. Cannot buy shares of private corporations at a stock exchange.
Other forms of business:
S Corporation: unique government creation that look like a corporation
tax as a sole proprietorship
have shareholders, directions and employees, and the benefit of limited liability
taxed only as the personal income of the shareholder
have no more than 100 shareholders
have only one class of stock
LLC (limited liability corporation): similar to a S corporation but without eligibility requirements
choice of taxation
limited liability
too much paperwork
Merger vs. Acquisitions [difference can be determined whether the purchase is friendly or
hostile]
[friendly] Merger: the result of two firms joining to form one company
Vertical mergers: joins two firms in different stages of related business
Horizontal mergers: joins two firms in the same industry and allows them to diversify or
expand their products
Conglomerate merger: unites firms in completely unrelated industries in order to diversify
business operations and investments (Google taking over YouTube)
[hostile] Acquisition: one companys purchase another companys property and obligations
Bank of America acquired Merill Lynch
Leveraged buyout (LBO): an attempt by employees, management or a group of investors to buy
out the stockholders in a company.
LBOs have ranged in size from $50 million to $31 billion and have involved everything
from small businesses to giant corporations
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In 2007, foreign investors poured $414 billion into US companies
Unions
Unions are very important but they can become corrupt.
Goals of organized labor
To work with fair and competent management
Be treated with human dignity
Receive a reasonable share of wealth in the work it generates
Unions: employee organizations whose main goal is to represent members in employeemanagement negotiations of job-related issues
Labor unions were responsible for: minimum wage laws, overtime rules, workers
compensation, severance pay, child-labor laws, job-safety regulations.
History of organized labor:
Craft union: an organization of skilled specialists in a particular craft or trade
Emergence of labor organizations
Knights of labor: first national labor union-1869
Fell after a riot in Chicago
American Federation of Labor (AFL): an organization of craft unions that
championed fundamental labor issues-1886
Industrial unions: labor unions of unskilled or semiskilled workers in mass
production industries
Congress of Industrial Organizations (CIO): Union organization of unskilled
workers; broke away from the AFL in 1935 and rejoined in 1955
The AFL-CIO today has affiliations with 56 unions and about 10.5 million
members
Most of the Yankee states are heavily unionized while the Southern states are against
unions
Methods of resolving disagreements:
Grievances: a charge by employees that management isnt abiding by the terms of the
negotiated agreement
Shop stewards: union officials who work permanently in an organization and represent
employee interests on a daily basis
Bargaining zone: range of options between initial and final contract offers that each side
will consider before an impasse is reached
Mediation: the use of a third party to help negotiations. not binding
Arbitration: use of a third party to render a binding agreement
How business fight back
Lockout: locking out union members and bringing cheap labor
Injunctions: court order for unions to stop strikes
Strikebreakers: essentially..cheap labor
Weapons used by labor unions:
Strikes
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Boycotts
Refusal to conform
Work slowdowns
Pickets: people standing around with signs
Textbook:
The Marketing Research Process (p.354)
Four key steps
1. Determine question (problem/opportunity). Determine present situation.
2. Collect research data.
-secondary data: already compiled by others (i.e. published in books and journals)
-least expensive method of gathering information
-marketers should gather this first to avoid unnecessary expense
-primary data: additional in-depth information
-can be gathered by conducting survey
-focus group: meet under directions of a discussion leader
-communicate ideas about an organization, its products, and other given issues
3. Analyze research data.
4.Choose best solution and implement it.
*Marketing research is a continuous process of responding to changes in the marketplace and
in consumer preference.
Things that we MIGHT need to know:
Best way to remember this:
C. Every Cow meets for crappy marriage locations..M.
The components of a business plan:
1. CoverLetter
2. Executive summary: two to three page summary of the proposed venture. Gives an
overview of what the business does and hopes to achieve.
3. Company background: Legal consideration, areas of risk and financial condition of a
business.
4. Management team: a better chance of getting financed if you have a group of people
working together to make things work. Expertise in key positions. Angel investors: stepping up
and replacing the duties of banks in the current environment.
5. Financial plan: 5 year projection of income, expenses and FUNDING SOURCES. Jan-Feb:
low business. Nov-Dec: high business. (most important)
6. Capital requirement: indicates amount of capital needed to commence operations and use
of funds.
7. Marketing plan: how do we get our products out to the masses. Includes industry size,
trends, target market, SWOT of idea. (2nd most important)
8. Location analysis: comprehensive demographic analysis and pedestrian/vehicular count. On
the corner or an avenue, etc. Everything has to be balanced, this one is often neglected.
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9. Manufacturing plan: plant size, machinery, capacity and inventory. Warehouse vs factory
imageetc.
Emotional intelligence quotient: empathy for other people, a situation, etc.
EQ refers to:
Personality traits
Communication abilities
Social graces
Language usage
Effectiveness in relating to others
EQ measured
Emotional empathy (ability to associate with others experience)
Achieving tendency (ability to stick with it and endure obstacles)
Emotional Thinking (go beyond immediate logic and think on a deeper level)
Relaxed temperament (ability to let go or go with the flow and wisdom to differentiate)
Cahills commandments
Know what you want your audience to do, think or feel
Decide what your listener needs to know. Less is more
Do not speak unless you are looking at a pair of eyes
The secret is energy. Use your voice and your body to tell your story
Use mind-jogger notes