Business Management Capstone Test 1 Questions and answers with 100% accuracy(GUARANTEED SUCCESS)

Strategy

A plan, method, or series of maneuvers for obtaining a specific goal

Vision

A one sentence statement that answers the question, "What do we want to become?"

Social Responsibility

Refers to actions an organization takes beyond what is legally required to protect or enhance the wellbeing of living things

Porter's Five Forces Model

A theoretical model devised by Michael Porter, who suggests that the nature of competitiveness in a given industry can be viewed as a composite of five forces: 1) Rivalry among competing firms, 2) Potential entry of new competitors, 3) Potential development, 4) Bargaining power of suppliers, and 5) Bargaining power of consumers

Hierarchy of Strategy

Corporate-Level (CEO, Board, Corporate Staff): What business to be in

Business-Level (Business A - B - C): How to compete in that business

Functional-Level (Business Functions): How best can each function support the business-level strategy

SWOT

(Strengths, Weaknesses, Opportunities, Threats)

Looks at internal as well as environmental conditions

Resource Based Model

An approach that suggests internal resources to be more important for a firm than external factors in achieving and sustaining competitive advantage

Value Chain Analysis

The process whereby a firm determines the costs associated with organizational activities from purchasing raw materials to manufacturing product(s) to marketing those products, and compares these costs to rival firms using benchmarking

Parts: Inbound logistics, operations, outbound logistics, sales and marketing, and service

Also includes: Procurement, Technology, Human Resources, and General Administration

Stakeholders

Groups who are affected by a firm's performance and who have claims on its performance

Such as; customers, employees, shareholders and creditors

Core Competency

A value chain activity that a firm performs especially well

Company Culture

Personality of a company

Company Values

What the employees are going to exhibit

Environmental Scanning

Another term for external audit; conducting research to gather and assimilate external information

(predict & detect) - (critical trends)

The External Factor Evaluation (EFE) Matrix

Only Opportunities and Threats

Weight (has to equal 1 or 100), Rating (1:strategies not capitalizing on opportunities or avoiding threats to 4: means outstnading to threats and weaknesses), Weighted score

Competitive Profile Matrix

Identifies firm's major competitors and their strengths & weaknesses in relation to a sample firm's strategic positions

(company 1, company 2, company 3)

Ratio Analysis Keys

Environmental Monitoring

Further exploration from the scanning process

Empowerment

The act of strengthening employees sense of effectiveness by encouraging them to participate in decision making and to exercise initiative and imagination, and rewarding them for doing so.

External Audit

Process of identifying and evaluating trends and events beyond the control of a single firm, in areas such as social, cultural, demographic technology, economic, political, and competition; reveals key opportunities and threats confronting an organization, so managers can better formulate strategies

The Industrial Organization View (I/O) Industrial Org

Firm performance is based more on industry properties;

economies of scales, barriers to market entry, product differentiation, the economy, level of competitiveness

Functional Groups

Economies of Scale

Price goes down when you produce more which drives the cost down based on volume

Culture

Pattern of behavior developed by an organization as it learns to cope with its problem of external adaptation and internal integration...is considered valid and taught to new members

Breakeven Point

The point in which revenue is enough to pay for both fixed and variable costs

equation:

BE=Total Fixed Cost/Contribution Margin (SP-VC)

Fixed Costs

Variable Costs

Margin

% Margin = Unit contribution Margin/Sales Price