Chapter 1 Flashcards
Strategy
is a “game plan” that enables a company to attract customers by distinguishing itself from competitors
Customer Intimacy Strategy
Understand and respond to individual customer needs
Operational Excellence Strategy
Deliver products and services faster, more conveniently, and at lower prices.
Product Leadership Strategy
Offer higher quality products
3 Types- Work of Mangement
Planning, Directing and Motivating, Controlling
Planning - Work of Mangement
Identify alternatives - Select alternative that does the best job - Develop budgets
Directing and Motivating - Work of Management
involves managing day‐to‐day activities to keep the organization running smoothly.
Controlling - Work of Management
ensures that plans are being followed - Feedback is the form of performance report is vital
Business Plans
consists of information about the company’s basic product or service and about the steps to be taken to reach its potential market
The business plan is a key document for:
The organization’s internal management AND external use in attracting creditors and investors
Decentralization
is the delegation of decision- making authority throughout an organization
Line Positions
Are directly related to achievement of the basic objectives of an organization.
Staff positions
support and assist line positions.
The Controller
A member of the top management team
What is the Controller responsible for?
Providing timely and relevant data to support planning and control activities AND Preparing financial statements for external users
Certified Management Accountant (CMA)
A management accountant
who has the necessary qualifications and who passes a rigorous professional exam
4 Professional Ethics for Management Accountants
Competence, Confidentiality, Integrity, Objectivity
Why Have Ethical Standards?
Abandoning ethical standards in business would lead to a lower quality of life with less desirable goods and services at higher prices
Corporate Governance
The system by which a company is directed and controlled.
Corporate Social Responsibility (CSR)
is a concept whereby organizations consider the needs of all stakeholders when making decisions
6 Processes of Business?
R&D, Product Design, Manufacturing, Marketing, Distribution, Customer Service
4 Ways to Improve Business processes?
Lean Production, Six Sigma, Enterprise Systems, Risk Management
Lean Production:
Lean thinking may be used to improve business processes that link companies together
5 steps of Lean Production:
- Identify value in specific products/services
- Identify the business process that delivers value
- Organize work arrangements around the flow of the business process
- Create a pull system that responds to customer orders
- Continuously pursue perfection in the business process
