CIS TEST 1

Value Chain

A series of activities an organization performs to deliver value, including primary and support activities.

Decision Process

Steps taken to solve problems: define problem, gather information, apply skills, develop solutions, execute, monitor & evaluate, and learn from the process.

Cognitive Bias

Mental distortions that affect decision making, including confirmation bias, stereotyping, and intuitive vs. logical thinking.

Porter's Five Forces

A framework analyzing the competitive forces in an industry: threat of new entrants, bargaining power of suppliers and buyers, threat of substitutes, and industry rivalry.

Bull-Whip Effect

The phenomenon where small shifts in consumer demand cause larger swings in supply chain orders, leading to inefficiencies.

Structured Decision-Making

A predictable, quantifiable decision-making approach based on logic and formal knowledge with clear steps.

Unstructured Decision-Making

An unpredictable decision-making approach reliant on experience and intuition, lacking a defined process.

Systems Thinking

The mindset of viewing a business as an interconnected system, predicting how decisions affect the whole organization.

Abstract Reasoning

The ability to create and manipulate models to represent complex processes.

Perfect Competition

A market structure with many firms offering identical products, resulting in no pricing power.

Monopolistic Competition

A market structure with many firms offering differentiated products, leading to some pricing power.

Oligopoly

A market structure dominated by a few firms, often with high barriers to entry.

Monopoly

A market structure where one firm controls the market, enjoying total pricing power.

Cost Leadership Strategy

A strategy where a company competes by being the lowest-cost provider.

Differentiation Strategy

A strategy where a company competes by offering unique products or services.

Product Innovation

The process of developing new or improved goods.

Process Innovation

Improvement in how products are made or delivered.

Organizational Effectiveness

The measurement of how well a company uses resources to achieve its goals.

Customer Focus

Building strong relationships by aligning with customer needs.

Disintermediation

The removal of middlemen in sales, selling directly to customers.

Channel Conflict

Tension that arises between direct and indirect sales channels.

Goal of Marketers

To identify and meet customer needs profitably through value creation and building long-term relationships.

Collaboration Purpose

The act of working together to solve problems, innovate, and share ideas.

Good Collaborator Traits

Effective communication, active listening, constructive criticism, support for group goals, and adaptability.

Constructive Criticism

Specific, respectful feedback aimed at improving outcomes.

Project Management Constraints

The balance of time, cost, and scope in determining project success.

Business Process Management (BPM)

The process of continuous improvement through modeling, analysis, implementation, and monitoring.

Process Efficiency

Performing tasks with fewer resources, at a lower cost, or faster.

Process Effectiveness

The achievement of desired outcomes by performing the right tasks.

Goods

Tangible items like canoes, phones, and clothing.

Services

Intangible activities such as consulting, banking, and repairs.

RFM Analysis

A method for evaluating customers based on Recency, Frequency, and Monetary value.

MRO Case – Sales & Profit

Sales increased by 5%, but profits only by 1%, indicating efficiency and cost issues.

MRO Case – Innovation

Only one new product developed in 2 years, highlighting a product development gap.

MRO Case – Competition

Emergence of a new high-end competitor poses a threat of new entrants in the market.

MRO Case – Employees

Employee desire for a flexible, engaged work environment leading to HR and culture issues.

MRO Case – Legal/Policy

Lawsuits and higher insurance premiums due to new safety regulations reflecting government policy impact.

MRO Case – Industry Growth

The canoeing/kayaking industry expected to grow by 8% in the Eastern US, with MRO growing 1.5 times the industry rate.