09.26.06: What does it All Mean? A career glossary
Accounting
What exactly is accounting, and why do we need it? Accounting is a system by
which economic information is identified, recorded, summarized and reported
to be used by decision makers.
Advertising
Advertising is defined as the art of positioning and creating brands and persuading
consumers to buy them through messages in mass media. The clothes you wear,
the cars you drive, the food you eat and the soft drinks you consume are all
brands.
Aerospace & Defense
The aerospace industry consists of companies which produce aircraft, missiles,
satellites and propulsion systems, as well as the firms which maintain and
develop these products. Aerospace and defense are closely allied, with the
same companies frequently serving both civilian and military markets. The majority
of civil aerospace ventures are related to the manufacture of planes for the
transport of goods or passengers, while defense uses planes for combat, transport
and reconnaissance.
Agriculture
The agriculture industry's broad scope includes everyone from farmers and ranchers
to scientists who devise new and better foods and the businesspeople who keep
it all running. The various disciplines within the industry seek ways to more
efficiently feed Earth's ever-growing population while improving profit margins
for food-related businesses.
Airlines
The airline industry consists of companies that move people and cargo with
planes. The International Air Transport Association (IATA) claims that this
$450 billion worldwide industry stimulates 8 percent of global GDP through
tourism, shipping and business travel. But despite its enormous contribution
to world commerce, the industry has historically gone through dizzying booms
and alarming busts as it reacts to changes in regulation and the economy.
Biotech
"Biotechnology," or "biotech" for short, refers to the
application of biological research techniques to develop products and processes
using biological systems, living organisms, or derivatives of organisms. Biotech
processes have been used for thousands of years, yet the industry we know today
is scarcely more than a quarter century old.
Book Publishing
We are surrounded by a sea of thoughts, opinions, stories, philosophies, advice,
and information of every conceivable stripe. The responsibility of sifting
through this overwhelming amount of "stuff" and figuring out what
is enlightening, what is vitally important, and what is entertaining falls
to the clever folks in the publishing business.
Commercial Banking
Commercial banks differ from investment banks because, in general, they are
"lenders" rather than "bankers." In other words, they loan
money, rather than raise it.
Communic. Equipment
Information is becoming the most important commodity after food and shelter,
and the ability to access it is key to survival and success in the business
world. The firms that make this happen connect computers to each other with
routers and switches, modems and hubs, Ethernet cable and wireless. Communication
via telephone and Web is practically a reflex for people in prosperous nations,
but much of what goes into communication is taken for granted.
Consumer Products
Encompassing everything from dish soap to automobiles, the consumer products
industry is a vast empire made up of the multitude of material products available
to customers, stretching across dozens of related industries. To get a handle
on the market, analysts often divide it into two categories, durable and non-durable
goods.
Energy/Utilities
The energy sector produces, converts and distributes fuels for heat, light
and propulsion. Oil, natural gas and coal are burned to make heat and electricity.
Wind, flowing water and sunlight are converted into electricity. Oil is refined
to propel cars, planes and industrial machines. And to achieve these things,
the companies who are producing, transporting, converting and distributing
these energy sources are supported by a variety of service firms, investors,
equipment providers, and government regulators.
Engineering
Engineers are involved in any industry where a product is made, designed or
repaired. They perform such tasks such as designing software, creating and
developing mechanical systems, improving civil infrastructure, designing and
developing aircraft and spacecraft and evaluating industrial systems. Engineering
is the art of applying scientific and mathematical principles, experience and
judgment to design, build and repair a technical product or system to meet
a specific need.
Fashion
Do you thrill to the thought that gray might just might be the new black?
Do you tire of fashion trends before they even hit the stores? Then a career
in fashion could be the right choice for you. Those who truly love the field
say that the perks fabulous clothes, exposure to famous people and brands,
extraordinary diversity, awareness of upcoming trends and cool job status
are worth the struggle. Still, fashion is not all glitz and glamour. Even more
than talent, an understanding of the industry is what lands the job. Even though
the fashion industry is difficult to break into, opportunities abound there
creative jobs in design and marketing; retail sales and buying positions;
corporate careers in finance, planning and distribution.
Financial Services
Financial services is an umbrella category that can encompass a variety of
services, including securities dealers and brokers, investment management and
mutual fund firms, insurance companies, credit card companies, and investment
and commercial banks. In this industry overview, we will focus on brokerage
and credit card services. (See other Vault industry overviews for more information
on sectors such as insurance, investment management and investment banking.)
Hardware
It has been said that hardware can be defined as those parts of a computer
that you can hit with a hammer, while software is the part you can only curse
at. In other words, computer hardware includes everything from the central
processing unit (CPU), to the microprocessors (also called microchips or chips),
the hard drive, CD-ROM drive, DVD drive and the monitor or display. The term
hardware also includes items such as computer cables and peripheral devices
like the keyboard, mouse, speakers and printer. Other types of hardware include
workstations and servers, as well as automated teller machines (ATMs), point-of-sale
(POS) devices, data storage systems and networking equipment.
Health Care
You can't live with it and you can't live without it -- this pretty much sums
up the attitude many Americans have toward today's health care industry, which
is made up of a variety of providers of patient care, including hospitals,
nursing homes and physicians, as well as those who help coordinate, manage
and pay for that care, like HMOs and other health insurers.
Hedge Funds
Over the past decade, hedge funds have grown tremendously in terms of assets
under management and also garnered a lot of media attention. Despite their
growth and popularity, hedge funds still remain a mystery to many people who
do not understand exactly what they are and how they work.
Hospitality & Tourism
The hospitality and tourism industry is made up of a variety of interconnected
sectors, including lodging (everything from roadside motels to luxury resorts),
recreational activities (theme parks, cruises and the like), rental cars and
food services.
Human Resources
Every organization has people, which means every organization needs Human Resources
(HR) professionals. HR helps manage and develop the people in an organization.
Sometimes called "Personnel" or "Talent Management," HR
is the function in charge of an organization's employees, which includes finding
and hiring employees, helping them grow and learn in the organization, and
managing the process when an employee leaves. Human Resources takes care of
people from the time they're interested in the organization to long after they
leave.
IT and Operations Consulting
Technology consulting traces its roots back to several parents. As information
technology (IT) grew in complexity in the early 1990s, management consultants
found that their strategic recommendations often involved complex and costly
internal IT changes. Consulting clients demanded information system implementation
assistance along with high-level business advice, so management consulting
firms like McKinsey and Booz Allen Hamilton built up practice areas to provide
it.
Insurance
The insurance industry is a multi-trillion-dollar market dealing in risk. In
exchange for a premium, insurers promise to compensate individuals and businesses
for future losses, thus taking on the risk of personal injury, death, damage
to property, unexpected financial disaster and just about any other misfortune
you can name.
Interior Design
Interior designers are hired to plan the interiors, and to some extent, exteriors
of private homes, hotels, restaurants, cruise ships, hospitals, offices and
countless other spaces. They work with clients, contractors, architects and
any number of specialists to create functional and pleasing living and working
environments. They make decisions about flooring materials, wall and ceiling
paints and treatments, lighting, window treatments, appliances, furnishings
and accessories.
Internet
Despite scars that remain from the "Bubble Burst" at the beginning
of the century, the Internet continues to engage the imagination of businesses,
consumers and information junkies across the globe. Today there are few aspects
of modern life untouched by the Internet, an interconnected set of computers
and networks fused together by copper wires and cables. More commonly, however
inaccurately, when most people today refer to "the Internet," they
mean the World Wide Web, an interrelated set of documents, files and data joined
together by hyperlinks. One has to search far and wide to find an American
business without a significant presence on the Internet, and the Web's seemingly
unlimited real estate provides aspiring entrepreneurs the space to build their
dreams upon.
Investment Banking
Tom Wolfe called them "Masters of the Universe" in The Bonfire of
the Vanities; Michael Lewis called them a few unprintable things in Liar's
Poker. To the rest of the world, they are investment bankers, salespeople and
traders. Investment banks aren't your local branch offices with their ubiquitous
ATMs (those are commercial banks, like Citibank or Bank of America); instead,
investment banks work with corporations, governments, institutional investors
and extraordinarily wealthy individuals to raise capital and provide investment
advice.
Investment Management
Investment management, also known as asset management, is pretty much what
it sounds like: a client gives money to an asset manager, who then invests
it to meet the client's objectives. The potential clients of an asset manager
can vary widely. Asset managers who work for mutual funds, for example, manage
money for retail clients, while asset managers at investment banks often invest
money for institutional investors like companies or municipalities (often for
pools of money like pension funds.) Asset managers can also work for hedge
funds, which combine outside capital with capital contributed by the partners
of the fund, and invest the money using complex and sometimes risky techniques,
with the goal of receiving extraordinary gains.
Law
One of the basic divisions in the practice of law is between litigation and
corporate, or transactional, law. Litigation attorneys, or litigators, deal
with the judicial process, with civil disputes or criminal cases that are headed
to court. Corporate lawyers advise businesses on their legal obligations, rights
and responsibilities.
Management Consulting
Consulting, in the business context, means the giving of advice for pay. Consultants
offer their advice and skill in solving problems, and are hired by companies
who need the expertise and outside perspective that consultants possess. Some
consulting firms specialize in giving advice on management and strategy, while
others are known as technology specialists. Some concentrate on a specific
industry area, like financial services or retail, and still others are more
like gigantic one-stop shops with divisions that dispense advice on everything
from top-level strategy, to choosing training software, to saving money on
paper clips.
Manufacturing
America's manufacturing industry is a powerful engine driving the nation's
economy, making up 11 percent of employment and 12 percent of the US gross
domestic product (GDP) in 2005. In the past decade, the industry contributed
22 percent of the country's economic growth, or 28 percent with the addition
of software production.
Media & Entertainment
The media and entertainment universe is dotted with veritable galaxies of companies
from multi-billion dollar diversified conglomerates to small, independent
movie studios and production facilities. High school dropouts and PhDs in philosophy,
MBAs and computer programmers, septuagenarians and twentysomethings, all work
cheek by jowl to bring to life creative endeavors, to grow sustainable billion-dollar
franchises like Batman and Harry Potter, and to create new ways to keep the
American public entertained and spending money on leisure.
Nonprofit
The need for more and better trained nonprofit administrators is fueling the
development of many well respected degree programs at universities and colleges
nationwide. At the same time, more people, particularly college age and recent
graduates are showing an interest in pursuing a career in nonprofit administration.
Oil & Gas
The price of oil sends a ripple effect throughout the world's economy, affecting
not only how much drivers have to shell out at the pump, but other forms of
transportation, the cost of all goods and services, and the availability of
basics like food and shelter.
Online/New Media
Online media is the place where all other media now intersect with one another.
Throughout the history of media, the introduction of new technologies has always
heightened fears about making existing technologies obsolete, but this has
yet to happen. However, subsequent technologies do force established technologies
to evolve and change, from the advent of radio, the first mass electronic medium
in a media world exclusively dominated by print, to the rise of television.
Now the Internet is leaving no traditional medium untouched by its influence.
Pharmaceuticals
Strictly speaking, the term "pharmaceuticals" refers to medicines
composed of small, synthetically produced molecules, which are sold by large,
fully integrated drug manufacturers. The largest of these players--companies
like Pfizer, GlaxoSmithKline and Merck--as well as a handful of others are
referred to as "Big Pharma" because they are huge research, development,
and manufacturing concerns with subsidiaries all over the globe. Indeed, Big
Pharma is where over 50% of the industry's sales are generated. Big Pharma
is responsible for all those television commercials urging us to contact our
doctors if we suspect we suffer from acid reflux disease or social anxiety
disorder. Yet despite life-saving, cancer-fighting drugs and significant corporate
philanthropy, Big Pharma's recent product recalls and safety testing troubles
(Vioxx and Celebrex) have made it the industry many have come to love to hate.
Politics/Capitol Hill
Behind the headlines on any given day in the nation's capital there are a thousand
sub-plots taking form: the Member of Congress and her staff working at breakneck
pace to prepare a bill to reform Federal education programs; a last minute
compromise to pass a key piece of legislation; a House member positioning himself
for a run for even higher office; a reporter about to break a big story about
a new scandal.
Private Equity
Careers at private equity firms (which raise funds to invest in private companies)
are considered plum jobs in the finance world because of the intellectual challenge
and potentially huge financial payoffs. Although private equity is a relatively
young business -- the first of today's large private equity firms, Warburg
Pincus, was founded in the late 1960s -- now there are more than 2,700 such
companies worldwide. This Vault guide brings you the scoop on the major players.
Public Relations
The public relations industry has grown vastly in scope over the last decade.
It has moved beyond simply drafting press releases for the launch of a new
product or doing damage control for a corporate entity, tasks most commonly
associated with the profession. The practice of public relations has become
more and more sophisticated as the media world has grown in complexity.
Real Estate
Real estate is tangible. It's a piece of land and any building or structures
on it, as well as the air above and the ground below. Everyone comes into direct
contact with real estate. The places we live, work, vacation, shop and exercise
are all assets to be bought, sold and rented.
Retail
Unless you happen to be living in a tree, chances are good that you've had
at least one interaction with the retail industry today. From the corner drugstore
to the online bookstore, retail -- the business of selling things made by others
-- is a constant presence in American life.
Software
A computer without software is merely an expensive paperweight. Software programs
tell computers what to do, whether that be creating a spreadsheet, simulating
the effect of car crashes to test automotive safety or helping Lara Croft raid
tombs. That amounts to a large quantity of necessary products in this high-tech
age. Beyond the necessary, there is the burgeoning field of entertainment software,
everything from interactive games to music sharing software. While there's
a lot of "free" software out there (either legitimately downloaded
from the Internet, pirated or otherwise copied), computer software is a lucrative
business. The largest company in the field is Microsoft, with fiscal 2004 revenue
of $36.8 billion.
Technology
There are certainly many companies that can be considered "technology"
companies because the products or services they produced involve computers,
software or networking systems. Prominent examples include Microsoft, IBM,
Cisco Systems and Dell Computer. But technology careers also extend beyond
high tech industries. IT is integral in most businesses, and its definition
is continually being redefined.
Web Consulting
Consulting companies, who once courted Y2K and ERP (enterprise resource planning)
specialists, now confidently turn to these consultants for "the next big
thing": solving problems connected with electronic business (or e-business)
and electronic commerce (e-commerce) on a widespread basis.
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