BU121 Final Exam Review

BU121 SI Session Resources: Final Exam Review Disclaimer: · SI leaders never see, write or mark exams! We do not know what questions will be asked. · This session will move faster than usual since we expect that you’ve come prepared · Please use chat for questions, answers or content related topics · To finish on time, we won’t go back to slides until the end of the session ! Make sure to take a screenshot of slides right away · We will not cover all the content, so make sure you review on your own! · Note: we do not send out our slide deck at the end of the session Marketing: What is a product? 1. What you offer customers to satisfy their needs 2. could be a good or a service 3. tangible or intangible Examples: Tangible: Starbucks, Mcdonalds Intangible: Apple Music, Spotify Total Product Concept: 1. everything a customer receives, including all intangible and tangible attributes 2. consumers do not define a product by features, to them the product is a total package of benefits/value package 3. must understand the product as seen from the eyes of the consumer, the entire experience they have with the product Elements that make up the total product concept:

- Packaging, brand, warranty, credit, atmosphere, image, reputation, location, delivery, price What is a brand? - What the company’s name, symbol, term or design means in the consumer’s mind - A collection of perceptions about their total experience What comes to mind when you see the following logos? - Dell: classy - McDonald's: hungry, fast-food - Apple: luxury, high-quality Brand Insistence: What is brand insistence? - When customers insist on using only your brand - Extremely loyal customers Practice Problem: Identify the 5 Drivers of brand insistence. Explain how McDonalds implements 2 of these drivers to create brand insistence/loyalty. (5 marks) - The 5 drivers of brand insistence are awareness, relevant differentiation, value, accessibility, and emotional connection. - Accessibility: Mcdonald's ensures that customers see their products as convenient and accessible by having stores in many locations. Additionally, they have drive-throughs and options to order online to make your experience with them even more convenient. - Awareness: McDonald's makes its customers aware of its brand by engaging in advertising. Additionally, the bright golden arches are an iconic symbol that are constantly recognizable, helping Mcdonald's be the first brand that comes to customers’ minds. Category/Effort Sub- Categories Consumer Behaviour Marketing Mix Tactics Example

Pricing Considerations: Factor Influences on Factor Impact on Price How to Determine Company costs Choice of Business Model, Economic Conditions Price Floor- allows us to identify the smallest price that can be possibly charged without losing money Break-even point- use fixed and variable costs to calculate Customer's Capacity & Willingness to Pay Economic conditions, stage of the life cycle, perception of value Price Ceiling and floor (creates both because you do not want to price something too high, so customer does not purchase but also do not want to price too low, so customer perceives it as low quality) Gain customer feedback Competitors' price Economic Conditions, Stage of Life Cycle Price Floor and Price Ceiling (If priced too high, consumers will go to competitors, if priced too low, the value for the product is not justified) Conduct competitive research Coordination with Marketing Mix Marketing Decisions Price Floor and Price Ceiling Communicating with colleagues Place/Distribution: - Distribution channel structure and options - Must coordinate with marketing mix - Reinforce unique benefit and reflect purpose - Marketing channels for consumer products: Direct, Retailer, Wholesaler, Agent Benefits and costs of using intermediaries

Benefits Costs - efficiency and assortment for consumers -break bulk shipments into smaller quantities -instant sales infrastructure - Valuable market information - each intermediary takes a cut for functions performed and manufacturer loses control over final price to customer Solution: demand backward pricing -loss of control over marketing and effort Solution: provide incentives to push products through channels What is the goal of promotion? - to convince customers to purchase Types of Promotion: 1. Advertising 2.Personal selling 3.Sales promotion 4.Public relations Finance: Types of budgets:

Dessertland is a build-your-own dessert bar & café. To help fund their business, they utilize loans from their local RBC that do not require a pledge of collateral. Identify which type of short-term financing the company uses. Describe 3 benefits to this type of funding. How might this type of financing creates limitations/drawbacks for the firm? - Identify: The type of short/term financing that Dessertland is using is an unsecured loan - Benefits: Unsecured loans do not require collateral, meaning the business does not need to pledge any Cash Budget Exercise: Prepare a cash worksheet for months March, April, and May Receipts: 60% of sales collected as cash in the month of the sale, 30% collected in the next month, and 10% is collected the month following Purchases: Assume purchases are 60% of next month's sale, assuming 40% is paid in the month of purchase and 60% is paid in the month following On March 4, you received $30,400 cash for the sale of equipment. Actual Sales Budgeted Sales January - $60,000 February - $65,000 March - $55,000 April - $70,000 May - $60,000 June - $75,000 Cash Worksheet: Jan Feb Mar Apr May Jun Net Sales $60,000 $65,000 $55,000 $70,000 $60,000 $75000 Collections

60% in month of sale $36000 $39000 $33000 $42000 $36000 $45000 30% in the following month $18000 $19500 $16500 $21000 $18000 10% 2 nd month after following month $6000 $6500 $5500 $7000 Other Cash $30,400 Total Receipts $36000 $57000 $88900 $65000 $62500 $70000 Net Purchases 60% of next month's sale $39000 $33000 $42000 $36000 $45000 - Payments 40% month of purchase $15600 $13200 $16800 $14400 $18000 60% in the following month $23400 $19800 $25200 $21600 $27000 Total Disbursement $15600 $36600 $36600 $39600 $39600 $27000 Cash Budget: · Minimum cash balance of $20,000 · 5% interest on outstanding bank loans charged at end of month (assume loans taken and paid at the end of the month) · As of February 28th, the firm had a cash balance of $20,000 · Selling and administrative expenses: $42,000/month, paid in full at end of month · Rent expense: $3,000/month, paid in full at end of the month · Capital Expenditure: $15,000 paid in cash on April 6 · Dividends payable: $11,000 due May 3 March April May Beg. Cash Balance $20,000 $27300 $20000 Add: Receipts $88,900 $65000 $62500 Total Cash Available $108900 $92300 $82500 Less: Purchases $36600 $39600 $39600 Selling & Admin. $42000 $42000 $42000

get employees up and runnning? Forecasting HR Supply: What are the 2 types of forecasting tools we can use to forecast HR supply? 1. Replacement chart- list of key employees and their possible replacements within the company 2. Skills inventory- a computerized database containing information on the skills and experiences of all current employees Job description vs. Job specification: Job description: a list of the responsibilities and objectives for a particular job Job specification: list of the qualifications required to perform the job Acquisition methods: When comparing candidates, what are the two things that methods must be? 1. Valid- the extent to which is measured is what is supposed to be measured 2. Reliable- the extent to which a measure is consistent over time Practice questions: Acquisition methods Identify what is the least valid candidate comparison method and explain why. Name 3 ways a business can increase the validity of this method and provide an example for each one. (5 marks) - The least valid candidate comparison method is the interview because there is bias present and incorrect practices. First, a business may improve their use of questioning by using job analysis to develop relevant questions. Second, they can eliminate interview bias by training interviewers. Lastly, they can implement testing by creating a policy .... Training and Advancement:

How can we teach employees new skills and prepare them for advancement opportunities? 1. Job-related training teaches employees how the job works and the daily tasks they are supposed to do 2. Off-the-job training- beyond the facets of your job, industry policies, workshops etc. 3. Development opportunities- long-term development and refinement of skills to build up resume and confidence How do these activities affect employee engagement and ‘turnover’? Employee Burnout: What is it? -A syndrome conceptualized as resulting from chronic workplace stress that has not been successfully managed

In general, we can work to improve in the areas of EDI by: 1. 2. 3. 4. 5. Practice Question: Compensation Define compensation. Explain 3 characteristics that a compensation plan must include for it to be motivating. Lastly, provide one example of a monetary compensation method, as well as an example of a non-monteray compensation method. (6 marks) - The payment employees receive in turn for their labour. (Refer to screenshot for whole answer) Operations: The conversion process: 1. Production Inputs-concept or idea for a new good/service, human, financial, material and informational resources 2. Conversion Process 3. Outputs Service vs. Manufacturing: - Both convert raw materials/inputs into finished products/outputs - But in a Service: Input=person with unsatisfied needs, focus on process and outcome, intangible characteristics

Differences Manufacturing/Good Service Types of Resources Used -use labour and materials to create finished products -Labour+ materials=Finished Product -Labour intensive- people are the most utilized resource -Labour+ Materials= Satisfied Customers Timing of Product Consumption Delayed Consumption -Goods Manufactured, shipped, stored, bought and then used by the customer Service immediately enjoyed/consumed by the customer Measuring Quality Number of rejected products or customer returns Number of satisfied customers Designing the Product Line: Long product line Short product line

4. Access to key resources Facility layouts: Process Product Fixed-Position Configuration Distinct tasks performed at each station Single assembly line Product remains stationary, people and machines move around to assemble Product Movement Any sequence Same sequence Product remains stationary Best Application Low-volume, customized products, batches High-volume, standardized products Extremely large, hard to move products Example Custom Furniture Manufacturing Household appliances Airplane Manufacturer Supply Chain Management: What is it? - The coordination of members of the supply channel from raw materials, manufacturers, distributors and retailers Benefits Limitations/Risks -reduces production lead time -minimizes inventory costs -increases customer satisfaction - lower financial costs ignored environmental and social costs -reputational risk -vulnerability of extreme interdependence

Trends in Supply Chain Management: 1.Purpose-Driven Ethical Enterprise Supply Network- This trend employs a circular supply network as opposed to a linear approach, keeps products and materials in use by designing products to last 2. Traceability- involves companies following products as they move through the supply chain Scheduling and Quality control: Questions: ( Use this section to write down questions you have and find the answer to them!)