Business Essentials Chapter 6
The process of planning, organizing, leading and controlling a business’s financial, physical, human and information resources in order to achieve its goals.
Achieving the greatest level of output with a given amount of input.
Achieving set organizational goals.
That portion of a manager’s job concerned with determining what the business needs to do and the best way to achieve it.
Plans that reflect decisions about resource allocations, company priorities and steps needed to meet strategic goals.
Generally, short-range plans concerned with implementing specific aspects of a company’s strategic plans.
Plans setting short-term targets for daily, weekly or monthly performance.
That portion of a manager’s job concerned with mobilizing the necessary resources to complete a particular task.
That portion of a manager’s job concerned with guiding and motivating employees to meet the firm’s objectives.
That portion of a manager’s job concerned with monitoring the firm’s performance and if necessary acting to bring it in line with the firm’s goals.
Those managers responsible for a firm’s overall performance and effectiveness and for developing long-range plans for the company.
Those managers responsible for implementing the decisions made by top managers.
Those managers responsible for supervising the work of employees.
Human Resource Managers
Those managers responsible for hiring, training, evaluating and compensating employees.
Those managers responsible for controlling production, inventory, and quality of a firm’s products.
Those managers responsible for the design and implementation of systems to gather, process and disseminate information.
Those managers responsible for developing, pricing, promoting and distributing goods and services to buyers.
Those managers responsible for planning and overseeing the financial resources of a firm.
Skills associated with performing specialized tasks within a firm.
Human Relations Skills
Skills in understanding and getting along with people.
Abilities to think in the abstract, diagnose and analyze various situations, and see beyond the present situation.
Time Management Skills
Skills associated with the productive use of time.
Decision Making Skills
Skills in defining problems and selecting the best courses of action.
The actions that people take as they try to get what they want.
An innate belief about something, often without conscious consideration.
Escalation of Commitment
Condition in which a decision maker becomes so committed to a course of action that he or she stays with it even when there is evidence that the decision was wrong.
Extent to which a decision maker is willing to gamble when making a decision.
The process of helping an organization maintain an effective alignment with its environment.
The broad set of organizational plans for implementing the decisions made for achieving organizational goals.
Vision (or Purpose)
A statement indicating why an organization exists and what kind of organization it wants to be.
An organization’s statement of how it will achieve its purpose in the environment in which it conducts its business.
Goals set up for extended periods of time, typically five years or more into the future.
Goals set for a period of one to five years.
Goals set for the very near future, typically less than a year.
Goals that are Specific, Measurable, Achievable, Realistic and Time-framed.
Creation of a broad program for defining and meeting an organization’s goals.
Long-term goals derived directly from the firm’s mission statement.
Identification and analysis of organizational strengths and weaknesses and environmental opportunities and threats as part of strategy formulation.
The process of analyzing a firm’s strengths and weaknesses.
The process of scanning the environment for threats and opportunities.
Identifies the various businesses that a company will be in, and how these businesses will relate to each other.
Business-Level (Competitive) Strategy
Identifies the ways a business will compete in its chosen line of products or services.
Identify the basic courses of action that each department in the firm will pursue so that it contributes to the attainment of the business’s overall goals.
Involves focusing the company on one product or product line.
Boosting sales of present products by more aggressive selling in the firm’s current markets.
Expanding operations in new geographic areas or countries.
Developing improved products for current markets.
Acquiring control of competitors in the same or similar markets with the same or similar products.
Owning or controlling the inputs to the firm’s processes and/or the channels through which the products or services are distributed.
Expanding into related or unrelated products or market segments.
Reducing the company’s investment in one or more of its lines of business.
Becoming the low-cost leader in an industry.
A firm seeks to be unique in its industry along some dimension that is valued by buyers.
Selecting a market segment and serving the customers in that market niche better than competitors.
Identifying aspects of a business or its environment that might require changes in strategy.
An organization’s methods for dealing with emergencies.
The shared experiences, stories, beliefs and norms that characterize a firm.
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