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Voc Review: Business Mgt Comp Exam Part 1

Terms in this set (36)

Mission statement
Company's message to customers about why the business exists.
Vision Statement
What a business aspires to accomplish
Goals
Achieved in more than 1 year (long-term)
Objectives
Achieved in less than 1 year (short-term)
'D' step in decision-making process (1st step)
Define your goal
'E' step in decision-making process
Establish your criteria
'C' step in decision-making process
Choose good options
'I' step in decision-making process
Identify pros & cons
'D' step in decision-making process (5th step)
Decide the most logical for your situation
'E' step in decision-making process (last step)
Evaluate your results
Strategic planning
long term - 3 to 5 years
Operational planning
Short-term - day to day goals
Budgets
Financial plan for a fixed period of time that reflects anticipated revenue and shows how it will be allocated in the operation of the business
Schedules
Allow employees to work more efficiently and productively.
Standards
Defines how your company acts which in turn builds trust in your brand; describes quality, performance, safety, terminology, testing or management systems.
Policies
Guidelines to guide actions. Clear statements of how an organization sets out to operate includes quality, environment, code of conduct, corporate social responsibility, employment, purchasing, the Internet and e-mail, equal opportunities and customer service.
Procedures
Detailed instructions - the official way of doing something
Research
Acquiring detailed information of all areas of business and using such information in maximizing the sales and profit of the business.
Business Plan
Describes how a business operates and how it makes profit
Capital resource allocation
Distributing and investing a company's financial resources in ways that will increase its efficiency and maximize its profits.
Online business
E-commerce: no physical location, electronic payments only (no cash/checks), digital advertising is more effective, difficult to provide personalized experience for customers, can be cheaper to start up but shipping and return expenses, costs of gaining new customers - loss of customers to competitors and growing expenditure for increasing web hosting.
Brick and mortar
physical location (physically see and touch goods), accepts all means of payment, uses traditional methods of advertising, provides immediate customer service, can be cheaper to maintain than e-commerce.
Sole proprietorship
Business owned by one person; A=complete control, keeps profits, easy to create, tax benefits; D= unlimited liability, sole responsibility, may need other expertise.
Partnership
Relationship between two or more people who join to create a business; A=individual strengths, shared risk & liability, easy to setup, tax benefits; D= personality conflicts, share profits & losses, bound by agreement.
Corporation
Legally separate from its owners but has rights of an individual; A=perpetual life, investors raise capital, personal liability protection; D=cost of entry, double taxation, rigid formalities & protocols.
Franchise
Right to sell a company's goods or services in a specific area in return for royalty fees; A=brand awareness, standards and procedures already in place; D=expensive and sometimes rigid in standards and procedures
LLC
Limited liability corporation= Alternate form of ownership that resembles both partnership & a corporation; A;= limit personal liability, tax benefits; D= limited life (ends on death or retirement of one member), expensive to form, subject to more state & federal regulations.
S-corporation
Corporations created that meet specific IRS requirements; A= protected assets, credibility; D= restrictive ownership, wages may be classified as dividends.
Line
Simplest form, authority flows from top to bottom, no specialized or support services exist.
Line and staff
More complex than Line Organization; specialized and supportive activities are attached to line of command.
Matrix
Teams of specialists from different functional areas
Team
Divide into four main groups: project teams, self-managed teams, virtual teams and operational teams
Centralized management structure
Rely on one individual to make decisions, provide direction for the company
Decentralized management structure
Rely on a team environment at different levels in the business. Each level of the business may have some autonomy to make decisions.
Short-term goal
achieved in less than one year.
Long-term goal
will take longer to achieve, more than a one year.
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