mgmt unit 1 study guide

Planning

Setting objectives and determining a course of action for achieving them.

Organizing

Developing an organizational structure and allocating human resources to ensure the accomplishment of objectives.

Leading

Using social and informal sources of influence to inspire others to take action.

Controlling

Ensuring that performance does not deviate from standards.

Strategic planning

Analyzing SWOT and then determining how to position the organization to compete effectively in its environment (long-range).

Tactical planning

Developing relatively concrete and specific means to implement the strategic plan (intermediate-range).

Operational planning

Assuming the existence of goals and objectives and specifying ways to achieve them (short-range).

Mission statement

Describes who the company is and what it does.

Vision statement

A future-oriented declaration of the organization's purpose and aspirations.

Three critical roles of mission and vision

Communicate the purpose of the organization to stakeholders, Inform strategy development, Develop the measurable goals and objectives by which to gauge the success of the organization's strategy.

Porter's Five-Force Framework (definition)

A model that analyzes the competitive forces within an industry.

Porter's Five-Force Framework (forces)

Barriers to entry/threat of new entrants, buyer power, supplier power, threat from substitutes, rivalry among industry competitors.

Barriers to entry/threat of new entrants (Five Forces)

New entrants threaten market share in industry.

Buyer power (Five Forces)

Buyers bargain for higher quality and lower prices.

Supplier power (Five Forces)

Suppliers can determine the terms on which business is conducted (price, quality).

Threat from substitutes (Five Forces)

Ease with which buyers can switch to a product in a different industry.

Rivalry among industry competitors (Five Forces)

Higher degree of rivalry makes it more difficult to generate profits.

Corporate strategy

The set of strategic alternatives that an organization chooses from as it manages its operations simultaneously across several industries and several markets.

Business strategy

The set of strategic alternatives that an organization chooses from as it conducts business in a particular industry or market.

Diversification

The number of different businesses that an organization is engaged in and the extent to which these businesses are related to one another.

Corporate social responsibility

How companies manage the business process to produce an overall positive impact on society.

Strategy (CSR)

Integrating long-term economic, environmental, and social aspects in business strategies while maintaining global competitiveness and brand reputation.

Financial (CSR)

Meeting shareholder demands for sound financial returns, long-term economic growth, open communication, and transparent financial accounting.

Customer and Product (CSR)

Fostering loyalty by investing in customer relationship management and product & service innovation that focuses on technology and systems which use financial, natural, and social resources in an efficient, effective, and economic manner.

Governance and Stakeholder (CSR)

Setting the highest standards of corporate governance and stakeholder engagement, including corporate codes of conduct and public reporting.

Human (CSR)

Managing human resources to maintain workforce capabilities and employee satisfaction.

Goals

Outcome statements that define what an organization is trying to accomplish, both programmatically and organizationally.

Objectives

Very precise, time-based, and measurable actions that support the completion of a goal.

Measures

The actual metrics used to gauge performance of objectives.

Centralization

The degree to which decision-making authority is concentrated at higher levels in an organization.

Formalization

The extent to which policies, procedures, job descriptions, and rules are written and explicitly articulated.

Hierarchical levels

The number of levels a company has in its hierarchy.

Tall structure

Several layers of management between frontline employees and top level.

Flat structure

Few layers, often with many employees reporting to a single manager.

Departmentalization

How a company structures teams.

Functional structure

Jobs are grouped based on similarity in functions (marketing, accounting, HR, etc.).

Divisional structure

Departments represent unique products, services, customers, or locations that the company serves.

Matrix organization

Crosses a traditional functional structure with a product structure.

Modular organization

All of the nonessential functions in an organization are outsourced.

Boundaryless organization

Eliminates traditional barriers between departments and between the organization and external environment.

Organizational culture

A system of shared assumptions, values, and beliefs that indicate appropriate and inappropriate behavior within an organization.

Artifacts

Visible, tangible aspects of culture.

Values

Shared principles, standards, and goals.

Assumptions

Beliefs about human nature and reality that are taken for granted.