Lecture 1 Flashcards
What is a business
An organization that produces or sells
goods and services or services to make
a profit
Give an example of a tangible product/service targeting people
airlines, health, hotels, restaurants, hairdressers, gyms, etc.
Give an example of an intangible product/service targetting people
radio, consulting, training, psychotherapy
Give an example of a tangible product/service targeting possessions
repair, cleaning, landscaping, retail
Give an example of an intangible product/service targeting possessions
information, accounting, banking, insurance, lawyers
Put the type of managers in order from lowest to highest
Non-managerial workers, first-line managers, middle managers, top managers, Board
Put the types of managers in the Canadian Government in order from lowest to highest
Officers/Analysts, Deputy Directors, DGs and Directors, DM/ADM, Ministers (MP)
What is the equation for profit
Profit = Revenue - Expenses
What does ‘factor of production’ mean
resources used by firms to create goods and services
What are the 5 factors of production
- natural resources
- capital
- human resources (labour)
- entrepreneurs
- information resources
What is a Market Economy
a country whose economy is more towards capitalism (more towards the right)
What is a Command Economy
A country whose economy is more towards socialism and communism (more towards the left)
What type of economy is Canada?
Mixed Economy
What are the 4 types of Economic Systems around the world
Capitalism, Mixed Economy, Socialism, Communism
What is the relationship between demand, supply, and price
When the price increases, supply rises while demand declines.
When the price drops, supply constricts while demand grows.
What is a Private Enterprise
business or industry that is managed by independent companies or private individuals rather than by the state (ex// Mcdonalds)
In order for a Private Enterprise to occur, what economic system will have to be present?
A mixed/capitalist economy with little government restriction
What are the 4 degrees of competition of Private Enterprises
- Perfect Competition
- Monopolistic Competition
- Oligopoly
- Monopoly
Define Perfect Competition
A economy in which there are no monopolies. there are many buyers and sellers, and prices reflect supply and demand. Companies earn just enough profit to stay in business and no more. If they were to earn excess profits, other companies would enter the market and drive profits down.
A very rare, theoretical type of competition.
Define a Monopolistic Competition
An imperfect economy where many companies are present in an industry, and they produce similar but differentiated products. None of the companies enjoy a monopoly, and each company operates independently without regard to the actions of other companies.
What is Oligopoly Competition
a few companies rule over many in a particular market or industry, offering similar goods and services. Because of a limited number of players in an oligopolistic market, competition is limited, allowing every firm to operate successfully
What are the 4 functions of Management that constitute the management process
PLOC
1. Planning
2. Leading
3. Organizing
4. Controlling
What is the planning part of the management process?
Determining what the business needs to do and the best way to achieve it
What is the ‘Organization’ part of the management process?
Determining how to use existing resources to implement the plan.
Arranging jobs in a structure to create an efficient task system
What is the ‘Leading’ part of the management process?
Guiding and motivation subordinates to meet objectives.
Managers have various responsibilities with regard to their employees
What is the control process of the management process
Setting and Achieving performance standards. Analyzing short-comings
What are the 5 areas of management
- Marketing Managers
- Financial Managers
- Operations Managers
- Human Resources Managers
- Information Managers
What is strategic movement
process of aligning the organization with its external environment
What are strategic goals
perfomance objectives that a firm plans to achieve
What are the three types of goals in terms of duration
Long term: more than 5 years
Intermediate: 1-5 years
Short term: less than 1 year
what is SMART goals (an acronym)
Specific
Measurable
Achievable
Relevant
Time-Framed
What is a mission statement
how the organization will achieve its purpose (reason for being)
clarifies who the organization serves, what it offers, and how it will be provided
What is the SWOT analysis
an analysis of an organization and its environment
Internal - Strengths
Internal - Weaknesses
External - Opportunities
External - Threats
What is the hierarchy plans for setting goals
Strategic Plans: Associated with senior managment, long term plans (2-5 years)
Tactical Plans: middle manager. Support strategic plans and define resource allocation (1-2 years)
Operational Plans: executed and finalized by first-line managers. For short term targets of less than a year.
What are the three levels of strategy
- Corporate-level strategy : what businesses will we pursue? How do these businesses relate to each other?
- Business-level (competitive) strategy: How will we compete in our chosen area?
- Functional strategy: what actions can our department pursue to reach the overall goals?
What is contingency planning
identify in advance changes that might occur and ways the company can respond to changes
What is crisis management
methods for dealing with emergencies
What is the formula for GDP
GDP = Consumption + Government Spending + Investement + Net Exports
