principles tools and techniques Flashcards
is the capacity of a system, network or process to handle a growing amount of work, or its potential to be enlarged in order to accommodate that growth.
scalability
Seven Steps in Effective Decision-Making
Identify the Decision to be Made
Gather Relevant Information
Identify Alternatives
Weigh Evidence
Choose among Alternatives
Take Action
Review Decision and Consequences
Used to evaluate all the options of a decision
decision matrix
Used when weighing the plusses and minuses of the options.
t-chart
What is decision tree?
A graph or model that involves contemplating each option and the outcomes of each.
Used when multiple people are involved in making a decision.
multivoting
What is pareto analysis?
A technique used when a large number of decisions need to be made.
Used when weighing the financial ramifications of each possible alternative as a way to come to a final decision that makes the most sense from an economic perspective.
cost benefit
Used by business leaders to determine consumer preferences when
making decisions.
conjoint analysis
When a business is able to offer the same quality product as its competitors but at a lower price.
cost leadership
Low cost is only one of many possible factors that
may set aside a business from others.
differentiation
It allows the business to further distance itself from its competition by, in some sense maintaining a competitive
advantage it has gained.
defensive strategies
Seek strategic alliances with other businesses in related
industries or within the same industry.
alliances
Types of Business Competition
Performance Competition
Head to Head Competition
Controlling Supplies
Advertising
Distribution
Predatory Competition
Are individuals or businesses that provide goods and
services to vendors in return for the agreed upon
compensation.
supplier
Business creates its own plan to expand its economic growth.
big ideas
all parts contribute to the success or failure of the whole.
system
must be dynamic able to thrive
through all economic conditions, in all markets, providing meaningful highly differentiated results to all of its customers.
sustainability
- is essential in business. Without continued growth, operations will stagnate.
growth
A business must manifest the
higher purpose upon which it
was seeded
vision
A business is the fruit of a
Higher Aim in the mind of the
person who conceived it.
purpose
What is autonomy?
A business is not part of the owner’s life, but is, in fact, its
own entity.
A small business creates a standard against which all
small businesses are measured as either successful, or not. All small businesses should aim to thrive beyond the standards that formerly existed.
standards
A business is an economic
entity, driving an economic
reality, creating an economic
certainty for the communities
in which it thrives.
profitability
