SHRM-CP 2022: Business Acumen Competency Flashcards
Value
Can be defined/measured several ways. Generally, refers to an orgs success in meeting strategic goals. Is influenced by mission, culture and more.
Value Chain
Process by which an organization creates a product or service it offers to the customer. Also known as a business model.
Service-Level Agreement (SLA)
Defines output customers can expect.
Organization Lifecycle: Intorduction
Revenue is low with little market awareness. Need to create an identity with customers and develop a value proposition.
Organizational Lifecycle: Growth
Revenue beings to increase. Growth will vary by industry, enterprise, product. Shifts to creating processes that will increase efficiency without stifling innovation.
Organizational Lifecycle: Maturity
Market is saturated with competitors and growth occurs through intro of new products/customer groups/acquisitions. Profit margins narrow and efficiency becomes more important.
Organizational Lifecycle: Renewal, No Growth, Decline
When demand decreases, organizations can:
RENEW - completely changing offerings where they compete or how they competed.
Take no action and accept continued low revenue.
Take no action and experience a decline in revenue that will make it impossible to compete or operate.
PESTLE Analysis
Political, Economic, Social, Technological, Legal, Environmental
Conducted to improve an org’s competitive market position.
PESTLE: Political
Governmental and other political forces that can exert influence.
PESTLE: Economic
Market and other economic conditions that affect an organization like interest and exchange rates, wages, COL and working hours.
PESTLE: Social
Events and trends ins ocity that can affect present and future availability of talent
PESTLE: Technological
Changes in tech capabilities and avialbility that can affect ability to produce/provide goods and services
PESTLE: Legal
Laws and regulations that can affect an orgs operations.
PESTLE: ENvironmental
Geographic and climate changes that might affect orgs operations.
Supply and Demand
Fundamental concept of economics. Demand - customers diesre to purchase goods/services and willingness to accept price. Supply - availability of goods or services.
Strategic Plan
Plan that defines an orgs prupsoe and direction to provide guidance on the org core values and objectives. Contains a vision/mission statement, core values, goals and objectives, SWOT analysis, Action plans
Competitive Advantage
The factors that enable an org to outperform its rivals. This can be branding, product quality, customer service, access to superiro resources etc.
Financial Projections
Estimate of an orgs future financial performance. Typically, address a specific 12 month peiord proken up monthly and by department/function
Quality
Measure of comparison for products and services
Business Intelligence
The ability to use information to gain a deeper understanding of an organization and its parts. Consists of 3 basic components of: Data Gathering, Data Warehousing, and Query and Reporting Capabilities
Data Gathering
Data is routinely gathered through different computer systems in all parts of an org.
Data Warehousing
Data gathered is translated into a standard format, cleaned or errors and duplications, and then stored in databases related to specific uses. ERGs can be used to integrate distinct databases to tap into the data warehousing capabilities.
Enterprise Resource Planning (ERP)
A system that can integrate these distinct databases and sort, describe, and analyze data in myriad ways to create report graphics such as bar or pie charts.
Query and Reporting Capabilities
Users need access to their information in order to make use of it - this can be done stand alone or integrated.
Balanced Scorecard
can provide a concise impression of an orgs overall performance and link long-term goals to short-term outcomes.
What makes a Balanced Scorecard effective?
Translating the vision - include accountability measurabile results
Communicating and Linking - gives org a clear ideaof what the overall objectives are and allows department to ensure they are alligned
Business planning - make it clear what goals have been set by the org and therefore enable departments to bette rintegrate their own plans.
Feedback and Learning - probides org with more opportunities to learn from onboing performance.
Analytical Processing
Also, OLAP (Online Analytical Processing). Allows you to leverage relational database sores in separate table that will allow for manipulating data and more automated actions.
