Management in the Digital age quiz 1 Terms and Solvency Ratios

What are the four key functions of management?

Planning, Organizing, Leading, and Controlling.

What is the purpose of the planning function in management?

To set goals and determine the best course of action to achieve them.

What is strategic planning?

Long-term planning that focuses on the organization as a whole, defining its mission, vision, and long-term goals.

What is tactical planning?

Shorter-term planning that focuses on how to implement the strategic plan, typically done by middle management.

What is operational planning?

Day-to-day planning that ensures the smooth running of the organization, carried out by lower-level managers.

What is contingency planning?

Developing alternative plans to be implemented if unforeseen events occur.

What does the organizing function in management involve?

Arranging and structuring work to accomplish the organization's goals, including assigning tasks and allocating resources.

What is the leading function of management?

Influencing and motivating employees to work towards organizational goals.

What is the controlling function in management?

Monitoring performance, comparing it with goals, and taking corrective action as needed.

What are the five steps in the strategic management process?

1. Mission and Vision (Goal-Setting), 2. Situation Analysis, 3. Setting Strategy (Strategy Formation), 4. Implementing Strategy (Strategy Implementation), 5. Assessing Outcomes (Strategy Monitoring).

What is a mission statement?

A clear definition of an organization's purpose and primary objectives.

What is a vision statement?

A description of an organization's desired future position.

What is PEST analysis?

A framework for analyzing macro-environmental factors: Political, Economic, Social, and Technological.

What does SWOT analysis stand for?

Strengths, Weaknesses, Opportunities, Threats.

What are Porter's Five Forces?

1. Threat of New Entrants, 2. Bargaining Power of Buyers, 3. Bargaining Power of Suppliers, 4. Threat of Substitute Products or Services, 5. Rivalry Among Existing Competitors.

What is a low-cost strategy?

Aiming to become the lowest-cost producer in the industry.

What is a differentiation strategy?

Aiming to be unique in the industry along dimensions valued by buyers.

What is the value in the middle strategy?

A combination of low cost and differentiation, providing customers more value for their money.

What is the difference between rivals and substitutes?

Rivals are firms in the same industry offering similar products, while substitutes are different products from other industries that satisfy the same customer need.

What is competitive analysis?

The process of identifying competitors and evaluating their strategies to determine strengths and weaknesses relative to your own business.

What are Key Success Factors (KSFs)?

The critical elements that a business must excel at to succeed in a particular industry.

What are some examples of KSFs in the fast-food industry?

Brand recognition and loyalty, cost-efficient operations, effective marketing, convenient locations, and product innovation.

What is differentiation in business?

The process of making a product or service stand out from the competition in a way that is valued by customers.

List the Eight Dimensions of Quality.

1. Performance 2. Features 3. Reliability 4. Conformance 5. Durability 6. Serviceability 7. Aesthetics 8. Perceived Quality

What are the three categories of financial ratios?

1. Solvency Ratios 2. Management Efficiency Ratios 3. Profitability Ratios

What do solvency ratios measure?

A company's ability to meet its long-term debt obligations.

What is the quick ratio?

A liquidity ratio that measures a company's ability to meet short-term obligations with its most liquid assets.

What does a quick ratio of 1 or higher indicate?

It indicates that the company has enough liquid assets to cover its current liabilities.

What are key economic indicators?

Statistics that indicate the general health of the economy, such as GDP, inflation rate, unemployment rate, interest rates, and CPI.

What were some key contributing factors to the 2008 financial crisis?

Subprime mortgages, housing bubble, securitization, lack of regulation, and interconnectedness of financial institutions.

What is the purpose of creating value for all stakeholders?

To consider the interests of shareholders, employees, customers, suppliers, and the community for sustainable success.

How can a company create value for customers?

By providing high-quality products and services at a fair price along with excellent customer service.

What is the role of corporate social responsibility (CSR)?

To engage in initiatives that benefit the community and operate in an environmentally sustainable manner.

What does the debt-to-assets ratio measure?

The proportion of a company's assets that are financed through debt.

What does the net profit margin indicate?

The percentage of each dollar in revenue that results in net income.

What is the return on equity (ROE)?

A measure of the rate of return on the ownership interest of common stockholders.

What is the significance of the inventory turnover ratio?

It measures how many times a company's inventory is sold and replaced over a period.

What does the consumer price index (CPI) measure?

The weighted average of prices of a basket of consumer goods and services.

What is the primary operating characteristic of a product?

Performance.

What does reliability measure in the context of product quality?

The probability of a product not failing within a specified time period.

What is the importance of effective marketing and advertising as a KSF?

It helps to attract and retain customers, thereby driving sales and profitability.

What does serviceability refer to in product quality?

The speed, courtesy, competence, and ease of repair of a product.

What is perceived quality?

The customer's perception of the overall quality or superiority of a product.