Business Essentials Flashcards
BWL basics
Descripe the conditions of the national competitive advantage
1.Factor conditions are the factors of production we discussed in Chapter 1—labor, capital, entrepreneurs, physical resources, and information resources.
2 Demand conditions reflect a large domestic consumer base that promotes strong
demand for innovative products.
3 Related and supporting industries include strong local or regional suppliers
industrial customers.
4 Strategies, structures, and rivalries refer to firms and industries that stress cost
reduction, product quality, higher productivity, and innovative products.
What are the factors of production?
labour, physical resources, informational resources, entrepreneurs, capital
How to formulate a business strategy
- Set strategic goals (short, mid, long)
- Analyze the environment / organization (SWOT)
- Match the env / orga
- Formulate strategy
3 Types of plans for business strategy
Strategic Plan plan reflecting
decisions about resource
allocations, company priorities,
and steps needed to meet strategic
goals
Tactical Plan generally short-
term plan concerned with
implementing specific aspects of a
company’s strategic plans
Operational Plan plan setting
short-term targets for daily, weekly,
or monthly performance
countermeasures if a business strategy goes wrong
Contingency Planning
identifying aspects of a business
or its environment that might entail
changes in strategy
Crisis Management
organization’s methods for dealing
with emergencies
What are the four main purposes of setting goals in an
organization?
- Direction and Focus
- Motivation and Engagement
- Performance Measurement
- Strategic Alignment
What are the areas of management function
planning, organizing, leading, and controlling
Common management techniques (8)
- Management by Objectives (MBO)
Description: A strategic management model that aims to improve the performance of an organization by clearly defining objectives that are agreed upon by both management and employees.
Application: Setting specific, measurable goals at various levels of the organization and then regularly reviewing the progress. - Management by Exception (MBE)
Description: A management strategy where only significant deviations from set standards and goals are brought to the attention of management.
Application: Focusing managerial time on major issues or exceptions, allowing for more efficient use of time and resources.
- Management by Walking Around (MBWA)
Description: A style of business management where managers walk around in an unstructured manner, through the workplace, to check with employees, equipment, or on the status of ongoing work.
Application: Encouraging open communication, staying informed about the operations, and fostering a more approachable leadership style. - Management by Delegation
Description: Delegating authority and responsibility to employees to complete tasks or make decisions.
Application: Empowering employees, improving decision-making speed, and developing employees’ skills and competencies. - Management by Results (MBR)
Description: Focusing on the outcomes and performance rather than the processes used to achieve results.
Application: Setting clear performance targets and metrics, and evaluating employees based on their achievements. - Management by Collaboration
Description: Emphasizing teamwork and collaboration across different departments or teams to achieve common goals.
Application: Facilitating cross-functional teams, encouraging collaborative projects, and using collaborative tools to enhance communication. - Management by Values (MBV)
Description: Aligning the organization’s operations and decisions with its core values.
Application: Defining clear organizational values, making decisions that reflect these values, and ensuring that all employees understand and align with them. - Management by Empowerment
Description: Giving employees the authority, resources, and responsibility to take initiative and make decisions within their areas of operations.
Application: Encouraging innovation and fast decision-making by empowering frontline employees and reducing bureaucracy.
The first steps in developing the structure of any business
- Specialization. Determining who will do what
2 Departmentalization. Determining how people performing certain tasks can (Functional, Product, Customer, geographic or Process driven)
best be grouped together
3 Establishment of a Decision-Making Hierarchy. Deciding who will be empow-
ered to make which decisions and who will have authority over others
How to establish
the decision-making
hierarchy
Centralized Organization
organization in which most
decision-making authority is held
by upper-level management
Decentralized Organization
organization in which a great deal
of decision-making authority is
delegated to levels of management
at points below the top
flat and tall Structure
The basic forms of organizational structures
Old froms
Functional Structure organization
structure in which authority is
determined by the relationships
between group functions and
activities
Divisional Structure
organizational structure in which
corporate divisions operate as
autonomous businesses under the
larger corporate umbrella
Matrix Structure organizational
structure created by superimposing
one form of structure onto another
NEW forms
Team organization, Learning organization, virtual organization
the five basic forms of departmentalization
- Functional Departmentalization
- Product Departmentalization
- Geographical Departmentalization
- Process Departmentalization
- Customer Departmentalization
What are Operations and what are the types?
Operations (or Production)
activities involved in making
products—goods and services—for
customers
Types:
Service Operations (or Service
Production) activities producing
intangible and tangible products,
such as entertainment, transporta-
tion, and education
Goods Operations (or Goods
Production) activities producing
tangible products, such as radios,
newspapers, buses, and textbooks
Utility
the ability of a Product or service to fulfill its customers needs and wands.
Difference between project scheduling between Gantt Chart and Perl (Program Evaluation and
Review Technique) Chart
Gantt Charts focus on visualizing project timelines and task durations, making them ideal for straightforward project scheduling and tracking. PERT Charts, on the other hand, emphasize task dependencies and the identification of the critical path, which is crucial for managing complex projects with intertwined tasks. While Gantt Charts offer a clear timeline view, PERT Charts provide a deeper analysis of project dynamics and potential bottlenecks.
Explain the Lean Production System and give on example of it
Lean Production System
production system designed for
smooth production flows that avoid
inefficiencies, eliminate unneces-
sary inventories, and continuously
improve production processes.
Just-in-Time (JIT) Production
type of lean production system that
brings together all materials at the
precise time they are required at
each production stage
What is the Human Resources Model: Theories X and Y
Theory X theory of motivation
holding that people are naturally
lazy and uncooperative
Theory Y theory of motivation
holding that people are naturally
energetic, growth-oriented,
self-motivated, and interested
in being productive
What are the 5 steps of the Maslov pyramid
- Physiological needs
- Stability needs
- Social needs
- Esteem needs
- Self Actualization
What is the two factor Theorie in People Management
Two-Factor Theory theory
of motivation holding that job
satisfaction depends on two
factors, hygiene and motivation
What are the 4 types of Utility (product’s ability to satisfy a
human want or need)
Form Utility providing products
with features that customers want
Time Utility providing products
when customers will want them
Place Utility providing products
where customers will want them
Possession Utility transferring
product ownership to customers by
setting selling prices, setting terms
for customer credit payments, and
providing ownership documents
5 forces of marketing
(1) The political and legal environment
(2) the sociocultural environment involves people’s values, beliefs,
(3) thet echnological environment
(4) the economic environment
5) the competitive environment
what is the value of a product
Value = Benefits / Costs
