Module 1 Flashcards
Transaction costs
Expenses incurred form market exchanges between different states in the value chain. Results when the company interacts with the outside world ( buying raw materials)
Organization costs
Arise from managing and controlling various internal units of a business. Arise from coordinating and managing activities inside the company
Organizations operate in broader contexts
Economic context : supplier relationship, marker demand, competition
Social and political context : legal frameworks, local cultures, political influences
Natural context : geographic resources and environemental conditions
Environmental spheres :
Technological
Economic
Social (politics, law)
Natural
Ethics
Economic goals of business processes
Innovation
1. Customer value (price/ willingness to pay)
2. Added value
3. Company value
=> contribution to sustainability/ corporate social responsibility
Behavioral outcomes
- Willingness to pay
- Repeat purchase
- Word-of-mouth advertising
Benefit
A product’s ability to satisfy specific consumer needs
Value
The importance of a product based on the expected benefits it provides
Mechanistic view
Assumes clear goals and measureable processes
Constructivism
Recognizes that reality is socially constructed and goals may be diverse and uncertain
Efficiency
Achieved through standardization and stabilization
Adaptability
Requires differentiation and flexibility to respond to environmental changes
Growth phase
Employees and the human-resource maker jet are prioritized
Start-up phase
Customer market takes precedence over
Sustainability
Focusing on the development that meets present needs without compromising the future, considers 3 spheres : economy, society, nature
Horizons of meaning
- Normative management “who are we ?”
2., Strategic management “where are we going?” - Operational management “be sure that enough will be produced?”
Normative management
- owner/ board of directors
- conceptual principles (mission statement)
- legitimacy
- viability
Strategic management
-=long term ressources, opportunities , positioning missions
- board of directors / executive board
- conceptual principles
- competitiveness
- potential for success/resources / market positions
Operational management
- executive board/ head profit center
- conceptual principles : operational planning/monitoirns /process management
- economic viability / added value
- success/ liquidity
Company
Socio-technical system that produces goods and services for third parties in exchange for money
Support processes
Infrastructure
Personnel
Finances
R&D
Primary processes
Input logistics
Production
Output logistics
Marketing and sales
Customer service
Objective of performance processes
To deliver actual products designed to satisfy customer needs and provide benefits.
