gestao2 Flashcards
Business
An organization that provides goods or services to make profits.
Profits
The difference between revenue and expenses.
Domestic business environment
The environment in which a firm conducts its operations and derives revenue
-close to costumers
-strong relationship with suppliers
-distinguish
Global business environment
International forces that affect a business,
-trade agreements
-global economic conditions
-political unrest.
Technological environment
ways by which firms create value for their constituents
-human knowledge
-work methods
-telecommunications.
Economic environment?
Relevant conditions in the economic system where a business operates
-economic growth
-monetary policy
-consumer confidence.
What is the political-legal environment?
The relationship between business and government
-product identification laws
-employee hiring restrictions
-local zoning requirements.
Sociocultural environment
Customs, mores, values, and demographic characteristics of the society in which an organization functions
-standards of business conduct.
Economic system
System a nation uses to allocate its resources among citizens (individuals and organizations.)
Planned economy
An economy that relies on a centralized government to control all or most factors of production and to make all or most production and allocation decisions.
-Lack of flexibility
-Lack of consumer choice
Characteristics of communism
-Assign people to jobs
-Own all businesses
-Control business decisions
-Idividuals contribute according to their abilities
-Individuals receive benefits according to their needs
-Government owns all factors of production
Mixed market economy
Characteristics from planned and market economies (some resources left to the free market and other scarcer resources are planed and organizes economy (defense, healthcare)
Market economy
Individuals control production and allocation decisions through supply and demand.
-market mechanism for exchange between buyers and and sellers of a particular good or service
-supply and demand determine prices and items produced
Private enterprise
Allows individuals to produce own interests with minimal government restrictions
Private property rights (ownership of resources to create wealth)
Freedom of choice (sell labour to any employer)
Profits (profits lure people to abandon stable work)
Competition (2+ business vie for some resources or costumers)
Privatization
The process of converting government enterprises into privately owned companies.
Demand
The willingness and ability of buyers to purchase a good or service at a given price (P↓ Qd↑).
Supply
Willingness and ability of sellers to sell a good or service at a given price (P↑ Qs↑).
Factors of production
Labor
Capital
Entrepreneurs
Physical resources
Information resources
Labor (factors of production)
Physical and mental capabilities of people as they contribute to economic production (human resources).
Capital (factor of production)
The funds and financial resources needed to operate a business (from starting it to keeping it running and growing).
Entrepreneur (factor of production)
An individual who accepts risks and opportunities involved in creating and operating a business.
Physical resources (factor of production)
Tangible items used by an organization to conduct business.
Information resources (factor of production)
Data and other information used by businesses (market forecasts, specialized knowledge, and economic data)
What are the degrees of competition?
Perfect competition
Monopolistic competition
Oligopoly
Monopoly
What is perfect competition?
A market characterized by numerous small businesses producing identical products.
What is an oligopoly?
A market characterized by a handful of large sellers with the power to influence prices of their products.
What is monopolistic competition?
A market characterized by numerous buyers and sellers trying to differentiate their products from competitors.
What is a monopoly?
A market in which there is only one producer that can set the prices of its products.
What are Economic Indicators?
Bussiness cycle
Aggregate output
Standard of living
GDP
Productivity
Balance of trade
National debt
Economic stability
What is economic stability?
Economic stability is the condition in which money in an economic system is growing at a steady rate.
What is inflation?
Widespread price increase throughout an economic system,
good for profits
bad for people.
What is unemployment?
Unemployment is the level of joblessness among people actively seeking work.
What is a recession?
aggregate demand decreases, which can lead to a depression—a prolonged and deep recession.
What are fiscal policies?
Fiscal policies are used by the government to regulate how it collects and spends revenue.
What is monetary policy?
Monetary policy is used by the government to control the size of its money supply.
What is monetary policy?
Monetary policy is used by the government to control the size of its money supply.
unethical behavior
does not conform with individual beliefs and social norms, representing what is considered wrong and bad.
ethical behavior mean in business ethics?
Ethical behavior conforms with individual beliefs and social norms, representing what is considered right and good.
What are managerial ethics?
Managerial ethics are the standards of behavior that guide individual managers in their work
Exemples:
-fair payment to employees,
-avoiding conflicts of interest in the organization, -dealing with economic agents in the external environment.
What are the steps in assessing ethical behavior?
1.Gather relevant and factual information
2.Analyze facts and determine appropriate values
3.Make an ethical judgment
What are the ethical norms?
Caring (responsibility towards each other)
Utility (benefits those affected)
Rights (individuals)
Justice (what’s fair)
What is social responsibility in business?
The overall way in which a business balances its commitments to stakeholders in a social environment
(Stakeholders employees, investors, local communities, suppliers, and customers)
What are the responsibilities of a business towards consumers?
Treat consumers fairly and honestly
Sell products at a fair price
Stand behind the quality of products
Meet delivery commitments
What are the responsibilities of a business towards employees?
Treat employees fairly and respectfully
Respect basic human needs and dignity
Ensure work-life balance
Help develop skills
Provide equal opportunities
Front: What are the responsibilities of a business towards Local and International communites?
Contribute to development
Be good corporate citizens
Minimize negative impact on community
What are the responsibilities of a business towards investors?
Use proper accounting procedures
Provide appropriate information about financial performance
Protect shareholders’ rights and investments
Accountability in contemporary social consciousness
The expectation of an expanded role for business in protecting and enhancing the general welfare of society.
Formal organizational dimensions of social responsibility
Legal compliance
Ethical compliance
Philanthropic giving
Approaches to social responsibility
Obstructionist
Defensive
Accommodative
Proactive
What are the characteristics of small business ownership?
Independent businesses with small influence in the market, supported by SBA (Small Business Administration). They play a big role in the economy by creating jobs, innovating, and contributing to larger businesses.
Front: How can businesses influence governments?
PAC (Political Action Committees)
Lobbying
Personal contacts
Favors
Define Limited Partnership
Limited partners invest money but are only tiable for debts to the extent of their investment
Define Master Limited Partnership
Master partner has majority ownership, minority partners have no management voice
Front: What is a corporate social audit?
An analysis of a firm’s success in using funds to meet its social responsibility goals.
Front: What is the defensive approach to social responsibility?
Meeting only the minimum legal requirements in social commitments.
Front: What is the obstructionist approach to social responsibility?
Doing as little as possible and possibly denying or covering up violations.
Front: What is the accommodative approach to social responsibility?
Exceeding the minimum legal requirements when specifically asked.
Front: What questions should you consider when starting a business from scratch?
Who are the consumers?
How much will they pay?
Who are the competitors?
How much will I sell?
Why will customers choose my product?
Front: What are the advantages and disadvantages of a franchise?
Advantages: Proven business model, access to management expertise
Disadvantages: High setup costs, ongoing payments, rules and restrictions
Front: What is the proactive approach to social responsibility?
Actively seeking opportunities to contribute to the well-being of society and groups.
Front: What are the key elements of a business plan?
Describe strategy for a new venture
Demonstrate how it will be implemented
Develop the idea on paper before launching it
Set goals, forecast sales, and plan finances
Front: What are the characteristics of an entrepreneur?
Resourcefulness
Concern for customer relations
Desire to be their own boss
Ability to deal with uncertainty and risks
Front: What are the characteristics of start-ups?
E-commerce.
Crossover from big business (people leave big corporations and use skills to their advantage)
Opportunities for minorities and women
GLobal opportunities (foreign markets)
Better survival rates (44% more 4 years)
What is a entrepeneur?
A business person who accepts risks and opportunities involved in creating and operating a new business venture.
Why are start-ups created?
Gain control over schedule
Saw market opportunity
Frustration with ‘glass ceiling’ at big companies
Front: What are common reasons for business failure?
Managerial inexperience (relying too much on common sense)
Neglect (not fully committing)
Weak control systems (failure to signal impending problems)
Insufficient capital (overly optimistic on profits)
Front: What are common factors for business success?
Hard work and dedication
Market demand for products
Managerial competence (training and experience)
Luck
Front: What are the advantages and disadvantages of sole proprietorship?
Advantages: Freedom, simple to form, low start-up costs, tax benefits
Disadvantages: Unlimited liability, limited resources, lack of continuity
What is a closely held corporation?
A corporation where stock is available for few people and not for sale to the general public.
What is a publicly held corporation?
A corporation where stock is widely held and for sale to the general public.
What is limited liability in a corporation?
Limited liability means owners are taxed as partners but have limited liability for the corporation’s debts.
What is a subchapter S corporation?
A corporation that is organized like a corporation but treated as a partnership for tax purposes.
Front: What are the advantages and disadvantages of a general partnership?
Advantages: More talent, easy to form, more capital, tax benefits
Disadvantages: Unlimited liability, disagreements, lack of continuity
What is a corporation?
It’s a business legal seperate from owners liable for its own debts, owners liable to extent of investment
Front: What are the advantages and disadvantages of a corporation?
Advantages: Limited liability, continuity, stronger fundraising capability
Disadvantages: Can be taken over, double taxation on profits, complicated and costly to form
Corporate entity key factors
Front: What is corporate governance?
The role of individuals in decision-making and accountability, including stakeholders such as stockholders, the board of directors, and officers (management team).
Front: What are the four key elements of business strategy?
Planning: Determining what the organization needs to do and how to achieve it.
Organizing: Arranging resources and activities into a coherent structure.
Leading: Guiding and motivating employees to meet objectives.
Controlling: Monitoring performance to ensure goals are being met.
Front: What are common corporate governance issues?
Joint ventures
Strategic alliances
Institutional ownership
Acquisitions and mergers
Divestitures
Spin-offs
Front: What are the three types of managers and their roles?
Top Manager: Responsible for overall performance, strategy formulation, and company representation.
Middle Manager: Implements strategies and works towards goals set by top managers.
First-Line Manager: Supervises employees and ensures company policy is followed.
Control Process
Establish and question standards
Measure performance against standards
Critical Evaluation
Reavaluate standards if reached or not reached
Front: What are the three main managerial roles?
Interpersonal: Leader, liaison, figurehead.
Informational: Monitor, disseminator, spokesperson.
Decisional: Entrepreneur, disturbance handler, resource allocator, negotiator.
What are the 3 types of managers?
- Top Manager: responsible for firms overall performance and effectiveness, formulates strategies and represents the company
- Middle Manager: responsible for implementing new strategies and working towards goals set up by top managers
First-Line Manager: Supervise work of employees and ensure these are trained and know company policy
Front: What are the types of business goals?
Mission statement: How a company will achieve its purpose.
Long-term goal: Business vision for the future.
Intermediate goal: Medium-term objectives.
Short-term goal: Immediate objectives.
What are the areas that are manageable
HR
Operations
Marketing
Informational
Financial
Front: Why are goals important in business?
Provide guidance
Help allocate resources
Define corporate culture
Assess performance
Front: What are the three levels of strategy in business?
Corporate: Overall attitude towards growth and how the business is managed.
Business: Focus on improving a firm’s competitive position.
Functional: Specific areas focus on achieving corporate goals through productivity.
Front: What are the key management skills?
Technical
Human relation
Conceptual
Decision-making
Time-management
Global
Technology
Front: What is the technical management skill?
The need to perform specialized skills within a particular field or job.
Front: What is strategic management?
The process of helping an organization maintain an effective alignment with its environment.
Front: What is the human relation management skill?
The ability to understand and get along with people, fostering positive interactions.
Front: What is the conceptual management skill?
The ability to think abstractly, diagnose, and assess different situations, seeing beyond the present.
Front: What is the decision-making management skill?
The skill of defining problems and selecting the best course of action from available alternatives.
Front: What are the steps in formulating a strategy?
Set strategic goals derived from the mission statement.
Analyze the organization and environment (SWOT analysis).
Match the organization with its environment by leveraging strengths, capitalizing on opportunities, counteracting threats, and shielding weaknesses.
Front: What are examples of environmental threats and opportunities in a SWOT analysis?
Threats: Hostile takeovers, changing tastes, new regulations.
Opportunities: Emerging need for products, press/media coverage, few competitors.
Front: What is the time-management skill?
Skills associated with managing time productively, avoiding common time-wasters like paperwork, meetings, emails, and phone calls.
Front: What is the global management skill?
Back: Understanding foreign markets and collaborating effectively with people around the world.
Front: What is the technology management skill?
Back: The ability to process information efficiently and interpret increasing amounts of data and inputs.
Front: What are examples of organizational strengths and weaknesses in a SWOT analysis?
Strengths: Surplus cash, dedicated employees, managerial talent, technical expertise.
Weaknesses: Resource limitations, competitors better than the company, things the company lacks.
Front: What does a SWOT analysis involve?
Identifies organizational strengths and weaknesses and environmental opportunities and threats.
Front: What is the hierarchy of plans in business strategy?
Strategic plan: Long-term resource allocation and goal-setting.
Tactical plan: Short-term actions to implement the strategic plan.
Operational plan: Day-to-day targets, usually on a daily, weekly, or monthly basis.
Front: What is corporate culture?
Shared experiences and norms that characterize an organization, helping define the work and business climate. Managers need to understand, transmit, and maintain culture, rewarding those who adhere to it.
What is contingency planning
Aspects of a business that may entail changes in strategy
What is crisis management?
It’s the methods used for dealing with emergencies
What is changing culture?
Analysis to highlight changes as effective in going against the problems
Top management need new vision
Create system to compensate employees who enforce values
Front: What is organizational structure?
The specification of jobs to be done within an organization and how they relate to each other.
What are organization charts
It’s a diagram depicting company’s strucuture and showing employees where they fit
Front: What are the determinants of organizational structure?
Mission
Strategy
Size
Internal environment
External environment
Front: What is departmentalization?
The process of grouping jobs into logical units based on function, product, process, customer, or geography.
Front: What are the building blocks of organizational structure?
Specialization
Departmentalization
Job specialization
What is functional
It’s dividing organization according to groups’ functions and activities
Front: What is the difference between centralized and decentralized authority?
Centralized: Most decision-making authority is held by upper-level management.
Decentralized: Decision-making authority is delegated to lower levels of management.
What is the department Product
Organizing into specific product or service being created
What is the department Process
It’s dividing according to production process used to create good
What is the department Customer
Dividing according to offer products and meet needs of identifiable customer groups
What is the department Geographic
Dividing according to areas of country or world
Front: What are the steps in the delegation process?
Responsibility: Duty to perform tasks.
Authority: Power to make decisions necessary to complete tasks.
Accountability: Obligation to ensure the task is completed successfully.
Front: What are the forms of organizational design?
Team: Project-type teams with no underlying hierarchy.
Learning: Facilitates learning and personal development within the company.
Virtual: No formal structure, few permanent employees, and modest administrative facilities.
Front: What is an informal organization?
A network unrelated to the firm’s formal structure, involving everyday social interactions among employees.
Front: What are the types of informal organization?
Informal groups: Groups of people who choose to interact among themselves.
Grapevine: Informal communication network within the organization, which can be minimized by opening channels of communication and addressing inaccuracies.
Intrapreneuring: The process of fostering innovation and flexibility within a large organization.
Front: What are business operations?
Activities involved in making goods and services for customers. They include service operations (intangible products) and goods operations (tangible products).
Front: What is utility in operations?
Utility is the ability to satisfy human wants or needs through time, form, and place.
Front: What is operations management?
The control of activities that transform resources into finished products that create value and provide benefits to customers.
Front: What are the two types of operations processes?
Make-to-order: Producing one-of-a-kind products.
Make-to-stock: Producing standardized products.
Front: What is the difference between low-contact and high-contact operations?
Low-contact: Customers are not part of the system to receive the service.
High-contact: Customers are part of the system to receive the service.
Front: What is operation capability?
The production process that does especially well, outperforming competitors and achieving multiple competencies over time.
What are key strategies in business operations?
Quality
Low cost
Flexibility
Dependability
Define quality
Quality: High-quality materials, specialized equipment, and staff expertise.
Define Low cost
Low cost: Reducing excessive costs, limiting inventory, and reducing labor and maintenance expenses.
Define Flexibility
Flexibility: Adapting to new products, equipment, and locations, and hiring personnel who thrive on change.
Define Dependability
Dependability: Utilizing electronic and online communication systems to improve reliability.
Front: What are the main aspects of operations planning?
Capacity: The amount of product a company can produce under normal circumstances.
Location: Determining where production will happen based on costs and flexibility.
Layout: Planning the arrangement of machines, equipment, and supplies.
Quality: characteristics of a product or service that bear on its ability to satisfy needs
Methods: improve process flows and improve customer service
Front: What are the two types of production layouts?
Process layout: Grouping production activities according to function (make-to-order).
Product layout: Fixed sequence of activities for producing a product (make-to-stock).
Front: What is the assembly line and the fixed position
Assembly line: step by step layout by which a product moves until it is finished
Fixed position: labor, equipment, materias and resources brought to the geographic location where all the production work is done.
What are key factors in operations scheduling?
Master: The overall “game plan” for production.
Detailed: Day-to-day activities in production.
Staff: Identifying who and how many people are working.
Project: Coordination of large-scale projects.
What are Gantt and PERT charts used for in operations scheduling?
Gantt chart: Breaks down large projects into steps and specifies the time required for each.
PERT chart: Specifies the sequence of activities, time requirements, and critical path for each step.
What is materials management?
The process by which managers choose, organize, and control the flow of materials from suppliers through distribution of finished goods. It includes supplier selection, purchasing, transportation, warehousing, inventory control, lean production, and just-in-time production.
What is operations control?
Monitoring production performance by comparing results and taking corrective action when necessary. It includes follow-up, quality control, and making corrections to ensure output meets standards.
What is quality management?
It involves evaluating the competition’s products (competitive product analysis) and assessing the value added by each activity (value-added analysis). Tools include quality improvement teams, ISO certifications, and business process reengineering.
What is the supply (value) chain?
The flow of information, materials, and services that starts with raw materials and continues through other stages in the network until the product reaches the end customer, adding value at each step.
What is supply chain management?
The process of managing the supply chain as a whole and improving its overall flow, often using strategies like outsourcing to expand capabilities and create new jobs.
Front: What is outsourcing in the context of business operations?
Replacing interanal processes by paying suppliers and distributors to perform processes or provide materials or services. Expands supply chains and moves jobs
Front: What is leadership in the context of business operations?
The process and behaviors used by someone, such as a manager, to motivate, inspire, and influence others’ behaviors.
Front: What is the difference between leadership and management?
Back:
Leadership: Agenda setting, aligning, inspiring, monitoring.
Management: Leading, controlling, organizing, and planning.
Front: What are the types of power in leadership?
Legitimate: Power granted by organizational hierarchy.
Reward: Power to give or take rewards (e.g., bonuses, promotions).
Coercive: Power to force compliance through psychological, emotional, or physical threats.
Referent: Power based on identification, loyalty, and charisma.
Expert: Power derived from information or expertise.
Front: What are the early approaches to leadership?
Trait approach: Focuses on identifying traits that distinguish leaders (e.g., intelligence, dominance, self-confidence).
Behavioral approach: Focuses on leader behaviors, divided into:
Task-focused: Ensuring tasks are performed to maintain goals and standards.
Employee-focused: Ensuring satisfaction, motivation, and well-being of employees.
Front: What is the path-goal theory of leadership?
Back: The path-goal theory posits that leadership is a direct extension of the expectancy theory of motivation, focusing on how leaders can help followers achieve their goals.
Front: What is the situational approach to leadership?
Assumes that appropriate leader behavior varies from situation to situation. It contrasts with the universal approach, which prescribes set forms of leader behavior for all situations.
Front: What is the decision tree approach in leadership?
Back: A set of decision rules for determining how much participation a leader should allow from followers in decision-making.
Front: What is the leader-member exchange model (LMX)?
Back: This model stresses the importance of the relationship between supervisors and their subordinates, focusing on the quality of exchanges between them.
Front: What are the types of leadership through the eyes of followers?
Transformational: Ability to recognize the need for change, create a vision, and execute it effectively.
Transactional: Focus on routine and regimented activities.
Charismatic: Influence based on the leader’s charisma, garnering support and acceptance from followers.
Front: What are the key elements in the changing nature of leadership?
Back:
Leaders as coaches: Moving from direct oversight to mentoring.
Gender and leadership: Differences in the leadership approaches of men and women.
Cross-cultural leadership: The influence of an individual’s native culture on their leadership approach when working in another culture.
Front: What are special issues in leadership?
Back:
Substitutes: Factors that can reduce the need for a leader, such as structured jobs, professional employees, or cohesive groups.
Neutralizers: Factors that render leader behaviors ineffective, such as rigid reward systems or high levels of group interdependence.
Front: What is strategic leadership?
Back: The ability to understand the complexities of both the organization and the environment, and to lead change in the organization to enhance competitiveness.
Front: What is ethical leadership?
Back: Leadership that reflects and maintains high ethical standards and holds others in the organization to the same standards.
Front: What is virtual leadership?
Back: Leadership in settings where leaders and followers interact electronically rather than in face-to-face settings.
Front: What are the steps in the rational decision-making process?
Recognizing and defining the decision situation
Identifying alternatives
Evaluating alternatives
Selecting the best alternative
Implementing the chosen alternative
Following up and evaluating results
Front: What are the conditions under which decisions are made?
Certainty: Knowing all alternatives and conditions.
Risk: Knowing alternatives and their payoffs or losses.
Uncertainty: Not knowing all alternatives, risks, or consequences.
Front: What are programmed and non-programmed decisions?
Programmed decisions: Structured decisions that recur frequently.
Non-programmed decisions: Unstructured decisions that occur with low frequency.
Front: What are key behavioral aspects of decision making?
Coalition: Informal alliance to achieve a common goal.
Intuition: Innate belief applied with conscious consideration.
Escalation of commitment: Continuing a course of action even when it may be wrong.
Risk propensity: Willingness to take risks or gamble.
Business Cycle
The pattern of short term ups and downs (or expansions and contractions)in an economy
Aggregate output
Primary measure of growth in the business cycle. The total quantity of services produced by an economic system during a given period
Standard of living
The total quantity and quality of goods and services that they can purchase with the currency used in their economic system
Gross domestic product
Measure of aggregate output. Refers to the total value of good and services produced within a given period by a national economy through domestic factors of production
Purchasing power parity
THE PRINCIPLE THAT EXCHANGE RATES ARE SET SO HAT THE PRICES OF SIMILAR PROducts in different countries are about the same
Balance of Trade
The economic value of all the products that a country exports minus the economic value of its imported (posite or negative)
