SBA CHAP 1-L1-L3

Strategic Business Analysis

involves the thorough evaluation of all facets of

enterprise operations that starts with a good foothold in the knowledge and application

of basic principles of economics, human resource management, production and

operations management, marketing management, as well as financial management

to aid in decision-making.

Economic Analysis

allows business managers to compare

the different types of needs, goods, resources, and the outcomes from combining

those resources in the larger view of local and global economic activities.

Human Resource Management

underscores the process of developing a job analysis as a

requisite for the creation of a human resource management plan

Economics

is the study of how to manage money and the financial status of an

individual, an enterprise, an organization, or a country.

microeconomics

branch of economics that only deals

with individuals, households, and specific companies.

macroeconomics

branch of economics that deals with the

society as whole and its dynamic relationship with the rest of the world.

scarcity

It refers to the existence of limited resources that are not enough to address unlimited human needs or demands

shortage

refers to a market occurrence whereby the demand is more than the supply available

at a given time.

Rationalization

allows one to evaluate the value of the goods

being obtained based on the cost that must be expended for its exchange.

opportunity cost

The loss from setting

aside the value of pursuing other alternatives with the same amount is referred to

intrinsic

cost with no actual cash outlay

extrinsic

cost with identified cash effect

primary needs

are those that are essential for one's survival, these are resources that an individual cannot live without

secondary needs

those that are directly associated with one's happiness, or a person's elevated status in society

Utility

the degree of satisfaction derived from

the consumption of a good or service.

diminishing marginal utility

comes from the continued use of the same amount of product over a period of time.

diminishing marginal returns

When the consumption of a product is lower than the amount of energy spent on it

economic activity

refer to the movement of both goods and services in a production, consumption, and

distribution process to satisfy human needs and wants.

consumption goods

Goods that directly satisfy human

needs and wants are classified as

Capital goods

are those goods that indirectly

satisfy human needs and wants.

free resources

happen when the available resources exceed the current need for it.

scarce resources

if the need for it exceeds the available quantity.

man-made

are those goods that were produced by men from combining natural resources and were created for an identified purpose.

Human resources

come in the form of labor services such as a doctor, a writer, or a fisherman.

Human resources management

involves the monitoring of the culture of

the organization, and is responsible for the recruitment of appropriate workforce,

in the recommendation of market-based compensation and benefits that are in

accordance with the company's current and potential resources and in the crafting

of an overall strategic employee development plan.

Organizational design

is about ensuring that there is an employee-job fit for all the positions in an organization to fulfill its mission

Staffing

deals with the recruitment

of individuals whose skills, abilities, knowledge, and experiences are deemed

appropriate for the jobs in the organization that needs to be filled.

job analysis

is the process of collecting and studying various factors that are related to the operation

and responsibilities of a specific job.

Job description

contains the job title, location, summary of duties, machines, tools, equipment needed to perform the job, and materials and forms that will be used to perform the job, including the supervision that is expected to be given or received, as well as working conditions and possible risks.

job specification

contains the statement of manpower qualification for a specific job. This includes the required minimum education, experience, training, judgment, initiative, physical effort, skills, responsibilities, communication level, and emotional and social

characteristics.

Organizational Structure

considers efficient work process and

dynamics.

planning

pertains to formulating strategies of personnel programs ahead of use and

will contribute to overall organizational goals

organizing

is an essential process of allocation of tasks amongst members of a specific structure,

with identified relationships, responsibilities, and accountabilities within an integrated

activity toward the achievement of a common goal.

directing

is a function that allows for the activation of people at various levels of skills and tasks, and

ensures that each one is able to maximize his or her contribution to organizational

goals.

controlling

comes after planning, organizing, and directing, and necessitates the review of the

employees' actual performance. It also includes verifying deviations and comparing

results from identified plans, and offering corrective actions for improvement.

staffing

comes after job analysis and human resource planning. It includes recruitment, selection, placement, and orientation.

recruitment

is the process of searching for prospective employees and providing an encouraging environment

for them to pursue their job application in the organization.

selection

is the process of determining the qualifications, knowledge, skills,

attitude, experiences, and values of an applicant with the purpose of ascertaining job

suitability.

placement

is the process of giving the selected candidate the most suitable

job in terms of the organizational requirement and the prospective employees'

qualifications after the formalities of screening.

orientation

critical in improving employee morale in reducing employee turnover, in curtailing

absences, in lessening work accidents, and in avoiding industrial strife.

compensation

direct reward for the work done

benefits

emanate from a defined company incentive program.

benefits

are indirect payments for working beyond

what a job requires.

training and development

are the process of creating avenues for employee improvement, reskilling and up-skilling for managerial development, career planning,

and transfer or promotion.

training

is the imparting of technical and operational

skills that are needed for the current job

development

is the process of conducting suitable programs to improve one's human and managerial capability to handle a more expansive role in the organization.

Performance management and appraisal

defines the direction and movements

of the careers of people in the organization.

human resource management

also referred to as personnel management,

is a largely overlooked area in an enterprise, and which mainly functions as record

keeper and repository of personnel policies and directives that affect the workforce.

product or service

is the primary object of consumer interest in a market.

production and operations management

identifies the process that transforms

raw materials to finished products, and the series of processes that convert to

a service.

Place utility

happens when there is a change from the place of availability to the place of use through

transportation.

Time utility

happens when the input or the output is stored as part of the utilization process of the consumers.

Form utility

happens when inputs change in size, weight, color, shape, or all at the same time as it converts into a consumer product.

knowledge utility

happens when information is imparted to customers through presentations in the form of advertisements.

Production management

encompasses production planning and development, production administration, implementation function and other allied activities such as standardization, simplification, specialization, quality control, and

research and development.

Production system

deals with the functions of converting inputs to output using processes, on demand forecasting, and on manufacturing control.

Production process

refers to manufacturing activities that result in either semi-finished product, finished product, or a by-product.

Operations process

refers to activities that result in the availability of a complete service or an allied service.

Production and operations management

is the application of the management functions of planning, organizing, directing, and controlling in the process of manufacturing goods or in the provision of a service.

production

is about the creation of all goods and services, regardless of type or kind.

operations

refer to any process that accepts inputs and uses resources to change those inputs in useful ways.

operations management

is focused upon administration, planning, and execution of operations involved in production of goods and services and trying to minimize the resources, at the same time increasing

output

Production Management

deals with planning, control, and decision making necessary for carrying out the production process.

effectiveness

refers to goal achievement

efficiency

is related to the cost resource utilization involved in the production and operation activity.

system

provides an efficient and effective framework of activities necessary to attain an objective.

element

consists of men, materials, machines, process, and information network designed and located to interact harmoniously.

right quality

It is determined by the cost of the product and the technical characteristics as suited to the specific requirements.

right quantity

emphasizing that the manufacturing

organization should produce the products in the right number.

right time

an important parameterto judge the effectiveness of a production department, which must aim to make

the optimal utilization of input resources to achieve its objective.

right manufacturing cost

must be established before the product is manufactured. Hence, all attempts should be made to produce the products at pre-established cost, to reduce the variation between actual and the standard pre-established cost.

location of facilities

is a long-term capacity decision, which involves a long-term commitment about geographically related factors that affect a business organization.

manufacturing location study

is to find the optimal location that will result in the greatest advantage

to the organization.

productivity

is the aim in production and operations management.

product design

deals with conversion of ideas into reality, and every business

organization must design, develop, and introduce new products as a survival and

growth strategy.

Process design

is a macroscopic decision-making of an overall process route for converting the raw material into finished goods.

flow production

which is also referred to as

mass production, denotes a production process that runs in sequence.

batch production

divides production output in component

parts. In this category, the whole production process is divided in parts, with

the unfinished product in the form of various finished parts.

Unit production

happens when production is made according to when the customer specifically requires it.

Production planning and control

is about implementing plans in terms of job

schedule, machine appropriation, and actual workflow.

project

is an organized initiative that has a concept

phase, initiation phase, planning, execution, monitoring and control, and

a project closure.

Supply chain management

is the management of a network of business

activities and processes that includes procurement, manufacturing, transportation

of finished goods, warehousing, distribution, and inventory management.

vendors

The network of service providers of

the supply chain process,

logistics

acts as the post-procurement function of delivering raw materials from the source to the

production plant, and the transportation of finished goods from the production to the

various points of distribution.

warehouse management

completes the logistics process in ensuring the

security and safety of goods, finished or unfinished, at any stage of raw materials

procurement, production, and distribution.

Tangible products

are created from combining raw materials as inputs put together by labor using human capital.

services

are provided through the rendering of transactions in service entities such as in banks, schools, or hospitals.