MGT 1104 Final Exam

Manager-Led Teams

-little autonomy
- one central leader
-like head coach in football

Cross Functional Team

members of different jobs/expertise, often a committee/task force, sometimes a problem solving team

Self-Managing Teams

-considerable autonomy
-manager determines goals, members control activities to achieve them
- like a important task force that is on a time limit
-like a temporary team for a mission
-like marketing or advertising team

effective teamwork

-team members rely on them
-trust
-work better together
-boost each other
-more enjoyment
-rotating leaders

Macro environment

the larger societal forces that affect the microenvironment - demographic, economic, natural, technological, political, and cultural forces

PESTEL Analysis

Focuses on principal components of strategic significance in the macro-environment, Political factors, Economic conditions (local to worldwide), Sociocultural forces, Technological factors, Environmental factors (the natural environment), and Legal/regulatory conditions.

Accounting

-provide accurate and timely financial info to managers

financial accountant:

prepares financial statements to help people inside and out of company assess financial strength of company

managerial accountants

prepare info such as reports on costs of materials used in production process for internal use only

Marketing

-identifying customer's needs and design products that meet those needs
-determine benefits, features, price, and quality of products
-decide on best mode of delivery or promotion
-manage relationship w/ customers
-make customers aware of organization's desire and ability to meet their needs

Finance

-planning for, obtaining, and managing a company's funds

operations

-converts resources into goods and services
-like the process of making iPhones or something intangible like healthcare getting made to consumers
- designer and overseer of process is operations manager
- make them aware of organizations desire and ability to meet their needs

stakeholders

Those with legitimate interest in the success or failure of the businesses and the policies it adopts Types include:
-customers
-employees
-stockholders
-suppliers
-dealers
-landlords
-bankers
-hard to please them all
-all have interest in how business operates
-stakeholders have sometimes conflicting visions/ideas

Capitalism/socialism

-competition vs. cooperation
-independence vs. dependence
-private sector vs. public sector
- regulation vs. freedom
-a lack of balance between the above means there is something wrong with the system, and it will fall apart eventually if not fixed
-supporting others can support yourself
-all for one and one for all

four basic rights of capitalism

- right to own private property
-right to own a business
-right to keep business profits
-freedom of competition
-freedom of choice

perfect competition

-many small companies that sell identical products
-price determined by supply and demand.
-example is corn

oligolpoly

few sellers supply a sizable portion of products in the market. they exert some control over price but because similar products, when one firm's price falls the others also fall
-example is airline industry or television broadcasters

monopolistic competition

-many sellers
-differentiated products (not identical) but serve similar purpose
-differentiated by size, location, brand name, quality, and style
-example is toothpaste

demand

-price goes up, demand decreases
-price goes down, demand increases

supply

-more willing to sell when price goes up,
-less willing to sell when price goes down

lagging indicator

-past like average rate of unemployment or CPI
-GDP is neither lagging or leading

leading indicator

A leading indicator is a measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators are used to predict changes in the economy, but they are not always accurate.

GDP

market value of all goods and services economy produces in a year domestically

CPI

used to determine inflation through hypothetical baskets of goods

fiscal policy

increasing or decreasing taxes or government spending to influence the total money supply in economy

monetary policy

-the management of the money supply and interest rates by the Federal Reserve Board
- Fed Chair affects stock market by what they say or do

Corporate Social Responsibility

-balancing responsibilities to stakeholders while making PESTEL/ethical decisions
-giving owners reliable and accurate information about state of company
-giving employees a fair and safe work environment and making sure consumers have rights to complain about product and get more information about product
-this tends to be good for business in long run because it makes them favorable externally through pastel and internally through helping shareholders
- enhances their loyalty and reputation

ethical decisions/issues

controversial social questions that are controversial because of finding the RIGHT thing to do ---there exists a right and a wrong

ethical dilemma

situations in which it is hard to see what is ethically right because negative consequences are involved for the person and people involved -----there exists a right and a right

conflict of interest

-occurs when individuals must choose between taking action that benefit themselves over those that don't

whistle blower

-an individual who exposes illegal or unethical behavior in an organization
-sometimes seen as career suicide (new federal laws protect them)

Insider Trading

-insider info knowing info about company before public and acting on it

SEC

-Securities and Exchange Commission.
-enforces sarbenes oxley act (honesty to shareholders when doing accounting)
-protects investors

Balance of Trade

-Imports minus exports

trade deficit

imports > exports

trade surplus

exports exceed imports

importing

buying products overseas and reselling them in one's own country

exporting

selling domestic products to foreign customers

franchising

-grants a foreign company (the franchisee) the right to use its brand name and to sell its products or services.
-franchisee has to operate according to franchiser's business model
-franchiser provides advertising, training, and new product assistance
-franchise is responsible for all operations day to day

licensing

a license agreement allows foreign company (licensee) to sell the products of a producer (licenser) or to use its intellectual property in exchange for what is known as royalty fees

joint venture

alliance in which partners fund a separate entity to manage their joint operation ---like Hearst and Cosmo or Vogue

Foreign Direct Investment (FDI)

-Formal establishment of business operations (such as the building of factories or sales offices and distribution networks to serve local markets in a nation other than company's home country.
-A form of it is a foreign subsidiary which is an independent company owned by a foreign company which gives parent company full access to local market but also exempt from any laws or regulations that may hamper foreign firm

outsourcing

companies choosing to hire outside to own their home country because it is cheaper . People need to check on them quite a bit to make sure they are following standards. Example is Foxconn

contract manufacturing

a form of outsourcing. manufacturing in countries where labor cost is lower. A U.S company who does this will retain control of product design and development and put its own finished label on product.

royalties and when they arise

they arise when a licensing agreement is in place. this includes franchising. Royalties is an amount paid to the licensor or franchiser for using their intellectual property.

tariffs

-taxes on imports
-make foreign goods less competitive

quota

-impose a limit on the quantity of a good that can be imported over time
-used to protect certain industries

embargo

bans import or export of certain goods to and from countries (like Cuba and the USA)

dumping

-practice of selling a product abroad for less than the cost of production
-usually done to increase market share in foreign markets
-unfair to domestic industries that this is done against

Sole Proprietorship

complete control over business. profits earned are taxed as personal income so don't have to pay special federal and state income taxes. disadvantages are bearing unlimited liability and that any loan is a loan on you personally

partnership

-2 or more people controlling business
-while you can do yourself, should do with legal help and create a partnership agreement to clearly lay out responsibilities and right. disadvantage is unlimited liability

Limited Parnership

a type of partnership in which only one partner is required to be a general partner

LLC (Limited Liability Company)

Limited liability, pass through income taxation, flexibility. only one partner is focused on operations of business, others are more general and less involved and have little to lose in terms of liability

corporation

-differs because legal identity separate from parties who own it
-larger than other forms of business
- owned by shareholders who buy stocks of business
-shareholders elect board of directors ( a group of people primarily outside company who are legally responsible for company, oversee major policy, decisions, sets goals, and hires and evaluates CEO
-limited liablity
-it has its own legal life
-sometimes has an agency problem( a conflict of interest inherent in a relationship in which one part is supposed to act in the best interest of the other)

mergers

two companies combine to form a new company

acquistion

-purchase of one company to another

benefits or mergers and acquisitions

-gain complementary products
-attain new market share
-realize synergies

hostile takeover

an act of assuming control that's resisted by the targeted companies management and its board of directors

shareholders

People who own stock in a company

stock

A share of ownership in a corporation.

liability

an amount potentially owed by business

synergy

-enhanced/ added skills because they merged/acquisitions
-reduced costs and less factories because combined company

characteristics of entrepeneruial activity

-innovation: developing new things, opening a new market, or developing
-running a business-combining resources for production and setting it up
-risk taking- always uncertain conditions, have to be confident in their innovation, and understanding of business environment

intellectual property types

-trademarks: protects brands, Apple for cell phones
-patents:protects functional or ornamental features (like iPhone designs)
-copyrights: protects works of authorship (like books)
-trade secrets-protects secret information (like coke formula)

crowd funding

utilize a crowd-funding platform like Kickstarter to attract investors. offers appreciation or ownership stake for substantial enough investment

angel investor

affluent investor who provides capital to start-up in exchange for an ownership position in the company, already a successful entrepreneur

venture capital firms

invest at a larger stage to start ups in large dollar amounts. Higher expectations on making returns to this than angel investors

Advantages of starting a business

-independnce
-lifestly
-financial reward and potentially higher wage than at previous job
- learning oppurtunity
-creative freedom and personal satisfaction

disadvantages of starting a business

-financial risk
-stress
-undesirable futures

Ways to start a business

-from scratch
-buy an existing busines
-franchise

Four Functions of Management

planning, organizing, leading, controlling

Planning

-decide where you want to be and how to get there
- develop strategic plan

Free-rein leadership

-hands off approach
-little direction to subordinates

democratic leadership

-seek input from subordinates
-keep subordinates informed

transactional leadership

exercise their authority and reward and punish if expectation are or are not met

transformational leadership

mentor and develop subordinates

Steps in the Control Process

1. establish standards
2. measure performance
3. compare performance to standards
4. take corrective action, if necessary

benchmarking

-aims to improve firm's overall performance
-comparision to other organizations with objective of improvement
-can do this by monitoring public info about competition and work directly with companies in related industries or use an outside consultant who can collect data from all participants and make it anonymous

top management level

need conceptual skills in addition to lower level skills

middle managers

strong interpersonal skills needed

first line managers

requires technical skills

manager skills

good communication(clarity of meaning), time management, and problem solving skills , technical, interpersona(build strong working relationships) l, and conceptual ( ability to reason abstractly, and analyze complex situations

mission statements

organizations fundamental purpose--why its exists?

SWOT

-Assessment of an organization's fit with its environment
-examination of external factor that could influence company in a positive (opportunities) or negative way (threats)
examining internal factors like weaknesses and strengths
-including economic conditions, competition, emerging tech, laws and regulations, and consumer expecations

contingency planning

-develop alternative courses of action in case an an unanticipated change occurs
-also known as a backup or fallback plan

effectiveness and efficiency

Effective - Adequate to accomplish a purpose; producing the intended or expected result. Efficient - Performing or functioning in the best possible manner with the least waste of time and effort.

tactical plan

-an overall plan broken into a smaller more manageable parts
-specifies allocation of resources
-strategic plan is longer and tactical plans can be smaller parts of one
-for example is 1 year tactical plans could be made out of 5 year strategic plan

operational plan

-a type of plan designed to implement tactical plans
-very brief, like a month or so
-smaller part of a tactical plan

operations managment

-for both service and product companies
-consisits of activities that are involved in transforming a product idea into a finished product
-process of managing the turning of resources into goods and services

Make-to-order

-customized products for buyer
-long production and delivery cycle

mass customization

-accomodates customers needs but also produces faster than make to order
-letting consumer decide what color and style

mass production

Process of making large quantities of a product quickly and cheaply. kept in inventory for later sale

make to stock

A production environment where the customer is served "on-demand" from finished goods inventory. Forecast future demand and stock more to meet that

capacity planning

-forecasting demand for your product so you know how much you'll produce and purchase enough input to reach that capacity
-after demand forecast yo can calculate capacity requirement which is the maximum # of gapped that can be produced over a given period of time

production planning

how will good be produced? where will you produce it? how will manufacturing facilities be laid out? How much will everything cost?

Just-in-time (JIT)

materials arrive just in time to enter the manufacturing process

Material Requirements Planning (MRP)

A software application to determine material needs. It uses sales forecasts to anticipate materials that will be needed before ordering them

Gannt Chart

a program management charting method that provides a graphical illustration of the time frame for tasks to be completed and what has been completed to date

PERT chart

production schedule specifying the sequence of activities, time requirements, and critical path for performing the steps in a project

critical path

the sequence of activities that require the creates amount of time, operations manager has to think about how to reduce time of critical path