Business Fundamentals: A Comprehensive Guide
Loan: Source of external financing. Large companies and public entities require significant capital, often exceeding the lending capacity of individual financial institutions.
Leasing: A lease with an option to buy allows firms to manage assets and liabilities by paying a fee. After the lease term, the lessee can return the property or purchase it at a residual price.
Renting: A commercial contract where a company transfers the use of property to a client for a defined term, conveying use and enjoyment but not ownership, in exchange for a monthly payment. This often includes the provision of services to ensure the property’s functionality.
Discounts: A transaction where the maker gives a bill of exchange to a third party to receive the amount in advance. Types include bank discounts, trade discounts, and financial discounts.
Business Area: A subsystem focused on market needs analysis and selecting optimal product/service introduction, sales, and marketing strategies.
Marketing Plan: A document outlining business goals, action programs, resources, and a schedule for implementation. Key tasks include business environment analysis and developing appropriate marketing strategies for product distribution.
Market: A group of individuals or organizations needing, wanting, or potentially wanting a particular product and possessing the economic and legal capacity to purchase it. Financial and legal capacity are both essential.
Human Resources Area: A business subsystem managing all aspects related to company employees.
Departmentalization: Grouping homogeneous units with common objectives. It’s related to company size and operational complexity.
Organization: A graphical representation of organizational units and their interrelationships.
Motivation: A combination of intellectual, physiological, and psychological factors determining the force and direction of energy in a given situation.
Market Research: Studying market characteristics, segmenting into meaningful groups, selecting a target market, and developing a successful marketing plan. Common objectives include gathering market information, assessing access methods, and defining significant market segments. Phases include information collection and conclusions.
Product: A good, service, or idea offered to the market with consumer value. It addresses consumer needs and is a key marketing mix variable. Consumers buy products based on problem-solving or benefits received, not just physical attributes.
Marketing Mix: A set of tools to achieve goals through a combination of marketing elements. The company uses these tools to meet requirements and achieve objectives.
Price: The value exchanged for a product or service. Price is a highly competitive, short-term marketing tool with significant psychological impact on consumers.
Promotion: A direct marketing tool communicating product existence, characteristics, advantages, and benefits to persuade potential buyers and stimulate demand.
Distribution: A marketing tool linking production and consumption. It delivers the product to the consumer when and where needed. Distribution channels include:
- Direct channel (no intermediaries)
- Short channel (manufacturer-retailer-consumer)
- Long channel (manufacturer-wholesaler-retailer-consumer)
Leadership: The personality attributes and abilities to guide and supervise individuals.
Total Quality Management: An evolved approach to quality management, encompassing continuous improvement and integrating previous quality control and assurance phases.