Lecture 1 Flashcards
What is Planning in an organization?
Choose appropriate organizational goals and courses of action to best achieve your goals.
What does Organizing involve?
Establish task and authority relationships that allow people to work together to achieve organizational goals.
What is Leading in an organization?
Motivate, coordinate, and energize individuals and groups to work together to achieve organizational goals.
What is Controlling in an organization?
Establish accurate measuring and monitoring systems to evaluate how well the organization has achieved its goals.
What is the role of an Organization?
Transforms resources into products/services, using production factors (e.g., capital and labor).
What is a Vision?
A dream without an expiration date that provides motivation, serves as guidance for actions and activities, and helps the organization and individuals to make sense of complexity.
What is a Mission?
Company’s present state and purpose that defines the business and establishes major goals.
What are Values in an organization?
Guiding principles serving as behavioral guidelines that should be part of the company culture and be actively supported by management.
What are Objectives?
Performance targets that can be financial or strategic.
What is Strategy?
Competitive moves and business approaches that managers employ to grow the business, attract and please customers, compete successfully, conduct operations, and achieve targeted levels of organizational performance. It is not a one-time event, but a continuous process.
What is a Purpose-driven business model?
The company prioritizes a social, environmental, or ethical mission.
Example: Patagonia (don’t buy this jacket anti-growth campaign, focus on repairing products rather than buying new ones).
5 stages of strategy formulation
Stage 1: Stage of vision and objective building
Stage 2: Stage of strategic analysis
Stage 3: Stage of strategy formulation
Stage 4: Stage of strategy implementation
Stage 5: Evaluation
Broadly speaking about the macro environment
▪ Is the broad environmental context in which a firm’s industry is situated.
▪ Includes strategically relevant components over which the firm has no direct control.
A business model is
- a storyline of how the strategy will be a moneymaker
- a blueprint for delivering value to the customer
Two central elements of a business model
Customer value proposition (V-P)
Profit formula (P-C)
