Parcial Flashcards
What is a Firm?
A firm is an individual or organization that tries to earn a profit by providing products that satisfy people’s need
What does a Firm need to earn profits?
To earn a profit, a business needs management skills to plan, organize, do staffing, and control. It needs marketing expertise to determine what products consumers need and want and to promote them. It also needs financial resources and skills
What do managers do?
In essence, managers plan, organize staff, and control, the tasks required to carry out the work of the company.
Stakeholders
People who have an interest in an organization. They are divided into inside stakeholders (Shareholders, managers, the workforce) and outside stakeholders (customers, suppliers, government, trade union, local communities or the general public)
What types of firm are there according to the economic sector?
Primary (Extraction), Secondary (Production), Tertiary (Services)
What types of firm are there according to the type of ownership?
Sole Trader, Partnership, Company (Private Limited and Public Limited) Franchises, Worker Co-Operatives
What is Social Responsibility?
Business´s obligation to maximize its positive impact and minimize its negative impact on society.
What is the importance of Management?
Managment is a process designed to achieve an organization´s objectives by using its resources effectively and efficiently in a changing environment.
Effectively means having the intended result; efficiently means accomplishing the objectives with a minimum of resources. Every organization, in the pursuit of its objectives, must acquire resources and coordinate their use to turn out a final good or service.
What are the functions of a manager?
A)Planning (Objectives and decisions that derive from the organization´s mission) -Strategic Plans -Tactical Plans - Operational Plans B) Organizing (Structuring of resources and activities) C) Staffing (Hiring) D) Directing (Motivate and leadI) E) Controlling (Evaluate and Measure)
What is competitive Advantage?
It refers to what sets the organization apart from others and provides it with a distinctive edge in the marketplace
What is Strategy?
Plan of action that prescribes resource allocation and other activities for dealing with the environment achieving a competitive advantage and attaining organizational goals.
Core Competence
Is something that the organization does well in comparison to its competitors.
Level Of Strategy
Corporate level strategy, business level strategy and functional level strategy
What is the PEST analysis and what does it analyze?
It analyzes the Political (Legislation, Stability, Taxes), Economical, Sociological (Trends, Demography, Attitude), Technological Environment outside the business.
What are the Porter´s forces and what do they do?
Industry Diagnosis
A) They are 5 key points to take into account to understand the present situation of an industry. It’s useful for defensive purposes and to shape action
B)The Forces are: New Competitors (Barries to entry and reactions from competitors); Suppliers Power, Customers Power; Product Substitutes; Rivalry Among Competitors.
Definition of a JIT
A way of producing where suppliers deliver materials when materials are needed and not before
What is Efficiency?
Relates the outcome with the resources used q
What is Effectiveness?
To get the job done
What strategies can be used to counter the Porter Forces?
Differentation, Cost Leadership, Focus (Concentrate on a specific regional market or buyer group)
What is the Life cycle analysis and what does it do?
It distinguish between 4 different time lapses in the life of a product to determine the position it has. The cycles are: introduction, growing, maturity (innovation), and decline
What strategies can be used with the life cycle analysis?
Innovate and positioning (Introduction), market share (Growth), Efficiency and investment Profitability (Maturity), Harvest and Exit (Decline)
What Is the Value Chain of a firm?
A) Is a set of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service. The appropriate level for constructing a value chain is the business unit, not division or corporate level. Each of the steps of the value chain add value to the end product
B) Primary Activities: Inbound logistics, operation, outbound logistics, marketing, service.
C) Using support activities helps make primary activities more effective. Increasing any of the four support activities helps at least one primary activity to work more efficiently.
D) Support Activities: infraestructure, technological development, Human Resources management, procurement.
