Chapter 3 (Business Management and Strategy) Flashcards
Creating a Code of Ethics must have
Honesty Integrity Confidentiality Conflicts of Interest Insider Information Gifts Personal Use of Company Assets Workplace Privacy Fairness
What is corporate responsibility (CR)?
business behavior that is focused on building external strategic relationships
What is sustainability?
behavior that doesn’t deplete the resources used to achieve an outcome
What is Enterprise Risk Management (ERM)?
practice of forecasting possible risks to the organization and taking steps to mitigate their impact on operations
Examples of ERM include…
HR Audits (SPHR); Insurance policies, Employee handbooks, Litigation Statistics, Other (UI rates, safety standards)
Change Management could include
Reengineering Corporate Restructuring Workforce Expansion Workforce Reduction Mergers and Acquisitions (SPHR) Offshoring and Outsourcing Decisions and Management
What are line functions?
Ex. Operations and Sales; which make decisions about operating needs
What are staff functions?
Ex. HR and Finance; which don’t make operating decisions but do advise line managers
What is a centralized organization?
decision making authority is concentrated at higher level in the organization
What is decentralized organization?
decision making authority is delegated to lower levels
What is span of control?
number of employees one manager can directly supervise
Examples of External Business Environment
Technological Developments Industry Changes Economic Environment Labor Pool Legal and Regulatory Activity
Types of Business Structures
Sole Proprietorship (one person has all the authority)
Partnership (two or more people share authority)
*General (GP) - partners share responsibility
*Limited (LP) - most partners are only investors
*Joint Venture (JV) - manage specific project/time
Corporation
*liability limited to assets owned by corporation
*life of corporation can extend beyond life of its owner
*central management structure
*ownership may be transferred freely by selling stock
Limited Liability Company (cross between a GP and a corporation and provides owners with the liability protection of a corporation with fewer operating restrictions)
Organizational Functions include…
Products and Operations Sales and Marketing Research and Development Finance and Accounting Information Technology People/Employees
What are the four “P’s” of marketing?
Product
Price
Placement
Promotion
What are the life cycles of an organization?
Start-Up
Growth
Maturity
Decline
Strategic Planning includes the following steps…
Planning to plan Environment scanning Strategy formulation Strategy implementation Develop a budget (SPHR) Strategy evaluation (SPHR)
Environmental scans identify…
General business environment Industry practice & development Technological advances Economic environment Changes in the labor force population Legal and Regulatory environment
Strategy formulation include…
Vision statement
Mission statement
Core competencies
Corporate values statement
What is the SMART model?
Goals are:
Specific, Measurable, Action-Oriented, Realistic, Time-Bound
What are tactical goals?
describes what will be accomplished to achieve the strategy
What is an action plan?
breaks down tactical goal into steps to be taken to accomplish the tactical goal
What does the Human Capital Management Plan consist of?
HR statement of strategic direction Desired results or goals Objectives Action plans Communication plan Measurement
What are the functions of operations?
- Capacity (how much product is available)
- Production layout (way in which goods/services will be produced)
- Scheduling (make sure available at times of peak customer demand)
- Quality Management (ensures acceptable standards are met)
- Inventory Management (cost of maintaining inventory vs. the need to satisfy customers)
- Technology (improve quality and amounts produced)
- Facility Location (best places for facilities)
- Cost Control (provide quality products at lowest possible cost)
