chapter 7 Flashcards
productivity
to perform a function that adds value to a company
strategy
a company’s road map for success that outlines major goals and objectives
strategic plan
a formal document that is developed by senior management; the strategic plan identifies how the company secures, organizes, utilizes, and monitors its resources
directional statements
a company’s mission, vision, and values statements; these statements are the foundation of a strategic plan explaining why a company exists and how it will operate
mission statement
a company’s statement of purpose
vision statement
part of a company’s strategic plan that describes the company’s viable view of the future
values statement
part of a company strategic plan that defines what is important to (or what the priorities are for) the company
stakeholders
entities that have a direct interest in a company
goal
a target
objective
short-term goals that are measurable and have specific time lines that occur within one year
organizational structure
the way a company is organized
organizational chart
a graphic visual display of how a company organizes its resources; identifies key functions within the company and shows the formal lines of authority for employees
chain of command
identifies who reports to whom within the company
president or chief executive officer (CEO)
the individual responsible for operating the company; this individual takes his or her direction from the board of directors
board of directors
a group of individuals responsible for developing the company’s overall strategy and major policies
operations
a business function that deals with the production and distribution of a company’s product
information systems (IS)
a business function that deals with the electronic management of computer-based information within the organization
marketing
a business function responsible for creating, pricing, selling, distributing, and promoting the company’s product
legal counsel
a function within a business that handles all legal matters relating to the company
product
what is produced by a company and offered to sell
good
a tangible item that you can physically see or touch
service
an intangible product produced by a company that one cannot touch or see
quality
a predetermined standard that defines how a good is to be produced or a service is to be provided
value
getting a good deal for the price paid for a product
creativity
the ability to produce something new and unique
innovation
the process of turning a creative idea into reality
customer service
the treatment an employee provides the customer
internal customers
employees within the company
external customers
individuals outside the company
