BSSE Business Management flashcards
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32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- SWOT analysis
- A strategic diagnostic that classifies internal strengths and weaknesses alongside external opportunities and threats, providing input to strategy formulation rather than a strategy itself.
- VRIO framework
- A test of resources for sustained competitive advantage: resources must be valuable, rare, costly to imitate, and the firm must be organized to capture their value.
- Porter's Five Forces
- An industry analysis model covering rivalry among existing competitors, threat of new entrants, threat of substitutes, supplier bargaining power, and buyer bargaining power.
- Ansoff matrix
- A growth framework with four options: market penetration, market development, product development, and diversification, ordered from lowest to highest risk.
- Price elasticity of demand
- The percentage change in quantity demanded divided by the percentage change in price. Values above one in absolute terms indicate elastic demand; below one indicates inelastic demand.
- Customer lifetime value
- The expected net profit attributable to a customer over the entire relationship, often estimated as average purchase value times purchase frequency times customer lifespan.
- Accounting equation
- The fundamental identity stating that total assets equal total liabilities plus owners' equity; every recorded transaction preserves this balance.
- Current ratio
- A liquidity measure calculated as current assets divided by current liabilities, indicating the firm's ability to meet short-term obligations as they come due.
- Net present value
- The sum of future cash flows discounted at the cost of capital minus the initial investment. Positive NPV indicates a project adds value.
- Break-even point
- The sales volume at which total revenue equals total costs, computed as fixed costs divided by the difference between price and variable cost per unit.
- Economic order quantity
- The order size that minimizes total inventory ordering and holding costs, calculated as the square root of twice annual demand times order cost divided by holding cost.
- Little's Law
- A queuing relationship stating that average work-in-process equals throughput rate multiplied by average flow time through the process.
- Bullwhip effect
- The amplification of demand variability as orders move upstream in a supply chain, driven by forecast updating, batch ordering, and price promotions.
- Six Sigma DMAIC
- A structured quality improvement cycle with five phases: Define the problem, Measure performance, Analyze causes, Improve the process, and Control the gains.
- Herzberg's two-factor theory
- A motivation model separating hygiene factors, which prevent dissatisfaction when adequate, from motivators, which produce satisfaction and engagement when present.
- Expectancy theory
- Vroom's model stating motivation equals expectancy times instrumentality times valence; if any component is zero, motivation is zero.
- Tuckman's team stages
- A model of group development with five sequential stages: forming, storming, norming, performing, and adjourning, each with distinct behavioral patterns.
- Equity theory
- Adams's model proposing that employees compare their own outcome-to-input ratio with referents and adjust effort or attitudes when inequity is perceived.
- Minimum viable product
- The smallest product version that allows a team to test core business assumptions with real users before committing resources to full development.
- Cash runway
- The number of months a venture can operate before exhausting cash, calculated as current cash balance divided by average monthly net cash burn.
- Rule of 40
- A heuristic for software businesses stating that revenue growth rate plus profit margin should equal or exceed forty percent to balance growth and profitability.
- Business model canvas
- A one-page framework with nine blocks covering customer segments, value propositions, channels, relationships, revenue streams, key resources, activities, partnerships, and cost structure.
- Statute of frauds
- A legal rule requiring certain contracts, such as land sales or goods over five hundred dollars, to be evidenced in writing to be enforceable.
- Fiduciary duty
- A legal obligation of loyalty and care owed by agents, directors, or trustees to act in the principal's best interest rather than their own.
- Consideration
- Something of legal value exchanged between contracting parties, such as money, services, or a promise, making an agreement enforceable.
- ACID properties
- Four transaction guarantees in databases: atomicity, consistency, isolation, and durability, ensuring reliable processing of data changes.
- Correlation versus causation
- A statistical principle noting that two variables moving together does not prove one causes the other; confounding variables may explain the association.
- Prescriptive analytics
- The analytical stage that recommends actions using optimization and simulation, building on descriptive and predictive analysis of past and forecast data.
- Kotter's eight steps
- A change framework: create urgency, build a coalition, form a vision, communicate it, empower action, generate short-term wins, consolidate gains, and anchor changes.
- Lewin's change model
- A three-stage change process of unfreezing existing behaviors, implementing the change, and refreezing new norms to make them permanent.
- Emotional intelligence
- Goleman's construct comprising self-awareness, self-management, social awareness, and relationship management, enabling leaders to handle emotions effectively.
- Situational leadership
- A leadership approach in which the leader adjusts between directing, coaching, supporting, and delegating styles based on follower readiness and competence.