Introduction to business Flashcards
What is an organisation?
A social arrangement for the controlled performance of collective goals, with a boundary between it and the environment.
How do organisations differ?
Ownership
Control
Activity
Profit/non-profit
Size
Legal status
Technology
What is a business?
An organisation who’s primary objective is to maximise shareholder wealth
What are bot-for-profit organisations focussed on?
Providing goods and services to beneficiaries at minimised cost
What is a stakeholder?
A person with interest in the organisation
What is competitive pressure, profit satisficing and maximising revenue?
Mitigating need to focus on maximising wealth
Choosing to achieve a satisfactory level of profit
Increasing market share and discouraging competition
What is the planning and control system order?
Objectives
Plans and standards
Actual performance
Comparison with plans/standards
On target
What is a mission?
How the business will satisfy their shareholders
What are the elements of a mission?
RSVP
Reason (purpose) - why it exists
Strategy - what we do/how we do it
Values - principles
Policies
What is a vision?
Where we see ourselves in the future
What is a goal?
Intentions behind decisions
What should objectives be?
SMART
Specific
Measurable
Achievable
Relevant
Time-bound
What 3 plans and standards are there?
Physical, cost, quality
What is sustainability?
Ability to meet needs of present without compromising future generation
What 3 categories can sustainability be considered under?
Social, environmental, economic
