Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

M92 > Chapter 3 > Flashcards

Chapter 3 Flashcards

1
Q

Strategy

A

A proposal for the longer-term deployment of resources to meet objectives against competition from rival organisations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Strategic Planning

A

A process whereby the future direction of the business entity is agree and a statement is developed detailing long-term goals

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Implementation of a Strategic Plan

A
  • setting objectives
  • creating organisational structure
  • allocating duties
  • setting budgets
  • planning resource use
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Corporate Planning

A

Key areas include
- setting objectives
- identifying necessary actions
- creating organisational structure
- staff incentives

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Business Plans

A

Should include SMART objectives, strategy for achieving objectives, responsibility allocation, cost estimates and estimated results

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Control Systems

A

Track whether original objectives and expected results are achieved using SMART objectives

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Control Models

A

Include management accounting, budgeting, critical success factors, KPIs and benchmarking

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Management Accounting

A

Involves providing information to managers to track financial performance throughout the year

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Critical Success Factors

A

Factors critical to realising an organisation’s mission
CSFs need to be SMART

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Key Performance Indicators

A

KPIs are quantifiable points that show whether a company is reaching it’s targets and objectives

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Key risk Indicators

A

Metrics used to monitor risks inherent in a business and the effectiveness of controls

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Balanced Scorecards

A

A strategic planning and management system used to align business activities to the vision statement of an organisation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Perspectives of Balanced Scorecards

A
  1. Learning and growth
  2. Internal processes
  3. Customer perspective
  4. Financial perspective
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Benchmarking

A

A process that allows a company to compare it’s progress with a comprehensive standard

It includes:
- internal
- external
- functional benchmarking

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Management by Objectives (MBO)

A

A process of defining objectives within an organisation so that both management and employees agree to the objectives

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Advantages of MBO

A
  • increased motivation
  • better communication
  • clarity of goals
  • higher commitment to objectives
  • alignment of organisational objectives
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Disadvantages of MBO

A
  • potential for paperwork
  • emphasis on short term goals
  • difficulty in quantifying subjective goals
  • risk of distorting results to achieve short-term goals
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Budget

A

A budget is a statement of planned performance in the immediate future, typically broken down on a monthly basis

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Budgeting in Organisational Control

A

Budgeting is not only a plan but also a target and tool for managers to exercise organisation control

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Variance Analysis

A

Involves identifying and explaining significant differences between predicted and actual financial outcomes

21
Q

Forecasting in Budgeting

A

Forecasting involves predicting levels and types of business, turnover and income

22
Q

Reforecasting

A

Adjusts the budget plan based on actual experience or changes in the business environment

23
Q

Advantages of Budgeting

A
  • unification of effort
  • encouraging planning
  • increasing financial awareness
  • providing a basis for comparison
24
Q

Budgeting Process

A

Creating budgets which are then incorporated into the master budget.

Includes steps like:
- issuing guidelines
- consultation
- preparation
- review
- communication
- monitoring

25
Chief Executive in Budgeting Process
Issues general guidelines for the master budget, including performance commentary, explanations of differences and views on expected changes
26
Budget Committee Review
Reviews departmental budgets to ensure they conform to master budget policies, show how objectives will be achieved
27
Top-Down Budgeting
Owners or directors decide on the individual plans for each department and function, which are then given to managers to implement
28
Bottom-Up Budgeting
Individual department managers construct their own budgets within set guidelines, which are then incorporated into the organisation’s master budget
29
Fixed vs Flexible Budgets
A fixed budget remains unchanged regardless of actual performance, while a flexible budget adjusts according to the organisation’s real activity levels over time
30
Zero-Based Budgeting (ZBB)
ZBB requires managers to justify their expenditure from scratch, starting with nothing in their budget for an item
31
Rolling Budgets
Constantly looks forward by adding a new month at the end of the twelve-month period as each month ends
32
Variance Analysis
Identifies and explains differences between actual and budgeted performance
33
Causes of Variance
- inadequate pricing - higher expenses - random events - operation efficiency
34
Decision Making Main Steps
1. Understanding why a decision must be taken 2. Prior consideration and discussion of the options 3. Taking the most appropriate decision 4. Review
35
Five C’s of Decision Making
1. Consider 2. Consult 3. Commit 4. Communicate 5. Check
36
Essential Management Information
- available resources - level of productivity - achievement of objectives - financial data for recruitment - sales data - property market information
37
Strategic Information
Refers to the “what” and “why” the business chooses to do something
38
Tactical Information
Helps identify “how” to accomplish strategic objectives
39
Operational Information
Relates to day-to-day operations and is used by front-line managers to ensure specific tasks are planned and carried out properly
40
Management Information Systems (MIS)
Collects data from various sources, processes, and organises it to help business make decisions
41
Dissemination of Information
- communicating information clearly - tailoring communication to recipients - ensuring confidential information does not pre-empt action - initially giving information at meetings for open discussion - informing employees about planned changes that may affect them
42
Codification Strategy
Involves carefully codifying and storing knowledge in databases, making it easily accessible and usable by appropriate employees
43
Personalisation Strategy
Involves sharing knowledge through direct person-to-person contracts and structured training programs
44
Knowledge Management Technology
- online learning platforms - document management systems - simulation tools - learning management systems
45
Challenged of Knowledge Management Technology
Challenges include control, security and ownership of shared knowledge
46
Knowledge vs Information Management
Information management organises data Knowledge management uses that data to make decisions and innovate
47
Change Management
It’s the process of managing and implementing changes in a business
48
Drivers of Change
Changes can be caused by competition, cost pressures, new management, growth opportunities, merges and new technology
49
Change Management Process
It involves planning, handling stakeholders, and moving from the current state to a future vision

M92 (10 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions