Chapter 2: Decisions and Processes: Value Driven Business

Question 1

Operational

Answer 1

• employees develop, control, and maintain core business activities required to run the day-to-day operations
• structured decisions

Question 2

Managerial

Answer 2

• employees are continuously evaluating company operations to hone the firm’s abilities to identify, adapt to, and leverage change
• semistructured decisions

Question 3

Strategic

Answer 3

• managers develop overall business strategies, goals, and objectives as part of the company’s strategic plan
• unstructured decisions

Question 4

Critical success factors (CSFs)

Answer 4

are the crucial steps companies perform to achieve their goals and objectives and implement their strategies

ex. increase customer satisfaction

Question 5

Key performance indicators (KPIs)

Answer 5

• are the quantifiable metrics a company uses to evaluate progress toward critical success factors
• far more specific than CSFs

ex. number of new customers

Question 6

Streamlining

Answer 6

improves business process efficiencies by simplifying or eliminating unnecessary steps

ex. streamlining software will likely decrease the amount of paper in workplace

Question 7

Automation

Answer 7

are static, routine, daily business processes

ex. inventory stocking, customer checkout, or daily opening and closing processes

Question 8

Reengineering

Answer 8

are dynamic, non-routine, long-term business processes such as financial planning, expansion strategies, and stakeholder interactions

e. T-Mobile creating TEX to reduce calls to customer service