Business Management & Strategy

Corporate governance includes the 5 following principles:

Compliance, integrity and ethical behavior, rights and responsibilities, interests of stakeholders, oversight and control.

7 major HR functions

Staffing, performance evaluations, compensation and benefits, training and development, employee relations, safety, health and security, and HR research.

Asset

something the business controls that will bring future benefit

Liability

Something the business owes that will require a future outflow

Expense

Something that decreases the business’s economic benefit during a period (using up asset or increasing liability)

Income

Something that increases the business’s economic benefit during a period (bring in asset or decrease liability)

Equity

Assets - Liability = Equity. Your stake in the business

Organizational Strategy

the plan for how the organization will succeed and gain an edge over others

Competitive Advantage

The ability to do something better than competitors, allowing you to make more profit over time.

Cost leadership

Low cost, good enough

Differentiation

Unique product, higher price

Focus strategy

pick a small pond and be the biggest fish

SWOT method

strengths, weaknesses, opportunities, and threats

SW in SWOT are?

analyzing resources

OT in SWOT are?

analyzing environment

Structure

fixed relationships of the organization

Systems

patterned activities that keep an organization operating

An organization is made up of 4 puzzle pieces following the vision and strategy:

structure, systems, culture, processes

Culture

system of shared values and beliefs that influence the workers behavior

Processes

interactions among members of the organization

What is the core asset of an organization?

Intellectual property of the founder

Control Systems

rules & rewards = control

Commitment Systems

strong links = committment