chapter 7

Question 1

productivity

Answer 1

to perform a function that adds value to a company

Question 2

strategy

Answer 2

a company’s road map for success that outlines major goals and objectives

Question 3

strategic plan

Answer 3

a formal document that is developed by senior management; the strategic plan identifies how the company secures, organizes, utilizes, and monitors its resources

Question 4

directional statements

Answer 4

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

Question 5

mission statement

Answer 5

a company’s statement of purpose

Question 6

vision statement

Answer 6

part of a company’s strategic plan that describes the company’s viable view of the future

Question 7

values statement

Answer 7

part of a company strategic plan that defines what is important to (or what the priorities are for) the company

Question 8

stakeholders

Answer 8

entities that have a direct interest in a company

Question 9

goal

Answer 9

a target

Question 10

objective

Answer 10

short-term goals that are measurable and have specific time lines that occur within one year

Question 11

organizational structure

Answer 11

the way a company is organized

Question 12

organizational chart

Answer 12

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

Question 13

chain of command

Answer 13

identifies who reports to whom within the company

Question 14

president or chief executive officer (CEO)

Answer 14

the individual responsible for operating the company; this individual takes his or her direction from the board of directors

Question 15

board of directors

Answer 15

a group of individuals responsible for developing the company’s overall strategy and major policies

Question 16

operations

Answer 16

a business function that deals with the production and distribution of a company’s product

Question 17

information systems (IS)

Answer 17

a business function that deals with the electronic management of computer-based information within the organization

Question 18

marketing

Answer 18

a business function responsible for creating, pricing, selling, distributing, and promoting the company’s product

Question 19

legal counsel

Answer 19

a function within a business that handles all legal matters relating to the company

Question 20

product

Answer 20

what is produced by a company and offered to sell

Question 21

good

Answer 21

a tangible item that you can physically see or touch

Question 22

service

Answer 22

an intangible product produced by a company that one cannot touch or see

Question 23

quality

Answer 23

a predetermined standard that defines how a good is to be produced or a service is to be provided

Question 24

value

Answer 24

getting a good deal for the price paid for a product

Question 25

creativity

Answer 25

the ability to produce something new and unique

Question 26

innovation

Answer 26

the process of turning a creative idea into reality

Question 27

customer service

Answer 27

the treatment an employee provides the customer

Question 28

internal customers

Answer 28

employees within the company

Question 29

external customers

Answer 29

individuals outside the company