Management final class notes for FINAL Flashcards
What is the mission statement?
A statement of a company’s purpose
What should the mission statement address and include?
Should address the key stakeholders for organization and should include key skills and resources that a company can offer
What is the vision statement?
Future-oriented statement of what a company wants to become
What is the process by which a company creates a strategy?
Strategic management
What are the 2 types of strategic management strategies?
Corporate and business-strategy
What should the corporate strategy answer?
What business to be in
What are two types of corporate strategies?
Synergy and diversification
What is a technique used to spread out risk (i.e. investment)
Diversification
What is synergy?
2 or more activities that create an effect (greater than the sum of the parts)
What should the business-strategy answer?
How to compete (ie cost and marketing)
What does a SWOT analysis measure?
Internal scans such as strengths, weaknesses, opportunities and threats
What was fayol’s definition of control?
Ensuring performance doesn’t deviate from standards
What are 3 steps that comprise controlling?
1) establish performance standards, 2) compare actual vs standard performance, 3) taking corrective action
What is the definition of financial control?
The management of a firm’s cost and expenses in relation to budgeted amounts
What are the 3 types of financial statements?
Balance sheets, income statement, and cash flow statement
What is an intangible asset?
Non-physical assets that give a company a preferred position in the marketplace (goodwill, patents, copyrights, franchises)
What is the amount willing to pay for a company over and above book value?
Goodwill
What is a current asset?
What a company owns that can be readily converted to cash (cash, accts receivable, inventory)
What are long term/fixed assets?
Assets not readily converted to cash (property, plant, equipment, LT investments, intangible assets)
What is a liability due within 1 year?
Current Liabilities (accts payable, payroll, taxes, st portion of LTD)
What is long term debt?
Liabilities due 1 year or more into future (LT portion of LTD)
What is owners equity?
amount of money shareholders invested in the firm (common stock and retained earnings)
What is the Balance sheet formula?
CA + CL = owners equity
What are labor expenses and cost of finished goods sold?
COGS
What are operating expenses?
Not directly related to making a product ( rent, commission, sales general administrative SGA)
What are the portions of the Cash flow statement?
Net income and types of cash flow
What are the 3 types of cash flow?
1) operational (sales revenue - inventory and accts receivable) 2) investment ( cash received or spent on LTA) 3) financing (cash received and spent on debt
