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Business Management

Terms in this set (76)

The 5 C's of Management
Compass
Courage/Confidence
Communication Skills
Consistency
Competency
Social Responsibility
The way a company's managers and employees view their duty or obligation to make decisions that protect, enhance, and promote the welfare and well-being of stakeholders and society as a whole. (Pg124)
Ethics
The inner guiding moral principles, values, and beliefs that people use to analyze or interpret a situation and then decide what is the right way to behave
Stakeholders
The people and groups that supply a company with its productive resources and so have a claim on and stake in the company
Types of Stakeholder
Company Stakeholders- customers, suppliers distributers, employees, community, society, nation, government. stockholders. ANYONE/THING THAT HAS AN INTEREST IN THE CO. AND. ITS INVESTMENTS
Four Approaches to Social Responsibility
left- Steve Jobs
right- Toms gives back
1. Obstructive Approach
2. Defensive Approach
3. Accommodative Approach
4. Proactive Approach
Planning
Identifying and selecting appropriate goals and courses of action for an organization. w/ STEPS
Organizing
Grouping people into departments according to the kinds of job-specific tasks they perform.
A formal system of task and reporting relationships that coordinates
Leading
Articulating a clear vision and energizing and enabling organizational members so that they understand the part they play in achieving organizational goals; one of the four principal tasks of management
Controlling
Evaluating how well an organization is achieving its goal and taking action to maintain or improve performance; one of the four principal tasks of management
Organizational performance
A measure of how efficiently and effectively a manager uses resources to satisfy customers and achieve organizational goals
Efficiency
A measure of how well or how productively resources are used to achieve a goal
Effectiveness
A measure of the appropriateness of the goals an organization is pursuing and of the degree to which the organization achieves those goals
Competitive advantage
The ability of one organization to outperform other organizations because it produces desired goods or services more efficiently and effectively than they do
Outsourcing
Contracting with another company, usually abroad, to have it perform an activity the organizations previously performed itself
Centralized vs Decentralized
The concentration of authority at the top of the managerial hierarchy VS Giving lower-level managers and non managerial employees the right to make important decisions about how to use organizational resources
Centralized
The concentration of authority at the top of the managerial hierarchy
Decentralized
Giving lower-level managers and non managerial employees the right to make important decisions about how to use organizational resources
Turnaround management
The creation of a new vision for a struggling company based on a new approach to planning and organizing to make better use of a company's resources to allow it to survive and prosper
Total quality management (TQM)
A management technique that focuses on improving the quality of an organization's products and services
Just- in-time inventory (JIT)
A system in which parts or supplies arrive at an organization when they are needed, not before
Factors of the Task Environment
The set of forces and conditions that originate with suppliers, distributors, customers, competitors
Factors of the General Environment
The set of forces and conditions that effect the organization & the task environment. Economical, technological, social cultural, demographics, political & legal.
Difference between the two environments and their factors' impact on the company
TE- immediate change, short term, $$ increase input
GE- Longer time, delayed change,
both impact business, but no control
Mission statement.
A broad declaration of an organization's purpose that identifies the organization's products and customers and distinguishes the organizations from its competitors
SWOT analysis.
A planning exercise in which managers identify organizational Strengths and Weaknesses and environmental Opportunities and Threats.
Corporate level (strategy)
A plan that indicates in which industries and national markets an organization intends to compete.
Single industry concentration
Technology, food/bev, airline, how to grow
Training & development.
T- teaching perform current jobs better. literacy training, diversity or sensitivity training, technical training, technology training

D- building the knowledge and skills of employee to enable them to take on new responsibilities and challenges. varied work experiences and formal education- masters degree
vertical integration
Backwards and foward- backwards taking over. Foward- creating own business, franchise "worldwide exposure"
diversification strategy
diversification strategy
Expanding a company's business operations into a new industry in order to produce new kinds of valuable goods or services
related diversification
Entering a new business or industry to create a competitive advantage in one or more of an organization's existing divisions
unrelated diversification
When they establish divisions or buy companies in new industries that are not linked in any way to their current business or industries
International expansion
comprises market entry strategy including crucial choices in regard to primary markets of focus, determination of target customer and channel strategy, resource allocation, product and service value offerings, brand positioning, and creation of an operating model.
Business/Divisional level
A plan to gain a competitive advantage in a particular market or industry
low-cost strategy
Driving the organization's total costs down below the total costs of rivals
focused low-cost strategy.
Serving only one market segment and being the lowest-cost organization serving that segment
differentiation strategy
Distinguishing an organization's products from the products of competitors on dimensions such as product, design, quality, or after- sales service
focused differentiation strategy
Serving only one market segment as the most differentiated organization serving that segment
Functional level departments (plan)
Functional managers' decisions pertaining to the goals that they propose to pursue to help the division attain its business-level goals
Research and Development
A team whose members have the expertise and experience needed to develop new products
Marketing Function
A role that helps a company to identify and source potentially successful products for the marketplace and then promote them by differentiating them from similar products. Typical marketing function types within a larger business might include performing market research, producing a marketing plan, and product development, as well as strategically overseeing advertising, promotion, distribution for sale, customer service and public relations.
PERSUADE CUSTOMERS THAT THE PRODUCT MEETS THEIR NEEDS AND CONVINCE THEM TO BUY IT
Functional-level strategy
A plan of action to improve the ability of each of an organization's functions to perform its task-specific activities in ways that add value to an organization's goods and services
Material management function
controls the movement of physical materials from the procurement of inputs through production and to distribution and delivery to the customers
Production function
Creating, assembling, or providing a good or service -- for transforming inputs into outputs
Sales Function
locating customers and then informing and persuading them to buy the company's products
Customer service function
provide after-sales service and support
Human resource management (HRM)
Activities that managers engage in to attract and retain employees and to ensure that they perform at a high level and contribute to the accomplishment of organizational goals
The Big 5 personality Traits
Extraversion, Negative affectivity, Agreeableness, Conscientiousness, and Openness to Experience
Extraversion
high on sociability, talkativeness, energy, and assertiveness. Tendency to experience positive emotions and moods and feel good about oneself and the rest of the world
Negative affectivity
tendency to experience negative emotions and moods, feel distressed, and be critical of oneself and others
Agreeableness
Tendency to get along well with others
Conscientiousness
Tendency to be careful, trustworthy, and determined
Openness to Experience
Tendency to be original, have broad interests, be open to a wide range of stimuli, be a daring and take risks
Locus of Control
Extent to which an entity believes the current and anticipated circumstances, and its response to them (behavior), are within its control.
Internal locus of control
belief that you are responsible for your own fate
Own actions and behaviors are major and decisive determinate of job outcomes
External locus of control
the tendency to locate responsibility for one's fate in outside forces and to believe one's own behavior has little impact on outcomes
Maslow's Hierarchy of Needs
Needs for Affiliations and needs for achievement
need for affiliations
individual is concerned about establishing and maintaining good interpersonal relations, being liked, and having other people getting along
Need for achievement
individual has a strong desire to perform challenging tasks well and to meet personal standards for excellence
Motivation - intrinsic vs extrinsic
psychological forces that determine the direction of a person's behavior in an organization, a person's level of effort, and a person's level of persistence
Intrinsic
behavior that is performed for its own sake
Extrusive
behavior that is performed to acquire material or social rewards or to avoid punishment
Emotional intelligence
the ability to understand and manage one's own moods and emotions and the moods and the emotions of other people
Organizational culture
The shared set of beliefs, expectionations, values, norms, and work routines that influence the ways in which individuals, groups, and teams interact with one another and cooperate to achieve organizational goals.

values of founder, stories, ceremonies/Rites, socialization
Transformational leader
Leadership that makes subordinates aware of the importance of their jobs and performance to the organization and aware of their own needs for personal growth and that motivates subordinates to work for the good of the organization
Transactional leader
Leadership that motivates subordinates by rewarding them for high performance and reprimanding them for low performance
Type of organizational commitment
Believe in what their organizations are doing
proud of what their organizations stand for
more likely to go above and beyond the cal of duty
less like to quit
Type of organizational commitment
Affective Commitment- staying bc you want to. job is rewarding and enjoy going to work
Continuance Commitment- staying bc you need to. working to live for money
Normative commitment- staying bc you ought to. people have invested time in you at work, feel like you can't leave
Diversity
Feature of a mixed workforce that provides a wide range of abilities, experience, knowledge, and strengths due to its heterogeneity in age, background, ethnicity, physical abilities, political and religious beliefs, sex, and other attributes.
Recruitment & selection.
Activities to develop a pool of candidates for open positions. determine/ verify job applicants qualifications
External recruiting
looking outside the organization to fill position. larger applicant pool, bring in newcomers who may have a fresh approach to problems and latest technology
Internal recruiting
fill positions with existing employees. familiar with the organization, managers know candidates, boost levels of employee motivation and morale
3 Elements of Strategy
Winning
Comp. Advantage, Resources, costs → pricing
Efficieny, quality, innovation, responsiveness to customers.
human, capital= $$$ and physical assets, natural

Low cost or differentiation= product features, unmatched service, reliability, image, HR
Active-
Industry
Market Segments
Single Industry, product diversification

demographics, psychographics, product usage, geographic, benefits derived, pains or gains= ways to target customers
Growth
Internal - SWOT, goal setting, strategy
External - Franchise, Joint Ventures, Acquisitions
SW-Interanal, OT-External. SWOT Analysis finding leading to new opportunities, short and long term planning (SMART GOALS), vertical integration, backwards integration, restructuring

Outsource, licensing, franchising, joint venture( 2 more companies merging together), acquisitions (Taking custody of records/Taking possession of an asset by purchase./Taking control of a firm by purchasing 51 percent (or more) of its voting shares.
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