Introduction to Business Practice Chapter 6

  1. Management
    The process of planning, organizing, leading, and controlling a business's financial, physical, human, and information resources in order to achieve its goals
  2. Planning
    That portion of a manager's job concerned with determining what the business needs to do and the best way to achieve it
  3. Strategic plans
    Plans that reflect decisions about resource allocations, company priorities, and steps needed to meet strategic goals
  4. Tactical plans
    Generally, short-range plans concerned with implementing specific aspects of a company's strategic plans
  5. Operational plans
    Plans setting short-term targets for daily, weekly, or monthly performance
  6. Organizing
    That portion of a manager's job concerned with mobilizing the necessary resources to complete a particular task
  7. Leading
    That portion of a manager's job concerned with guiding and motivating employees to meet the firm's objectives
  8. Controlling
    that portion of a manager's job concerned with monitoring the firm's performance and, if necessary, acting to bring it in line with the firm's goals
  9. Top managers
    Those managers responsible for a firm's overall performance and effectiveness and for developing long-range plans for the company
  10. Middle managers
    Those managers responsible for implementing the decisions made by top managers
  11. first-line managers
    Those managers responsible for supervising the work of employees
  12. Human resources managers
    Those managers responsible for hiring , training, evaluating, and compensating employees
  13. Operation managers
    Those managers responsible for controlling production, inventory, and quality of a firm's products
  14. Information managers
    Those managers responsible for the design and implementation of a system to gather process, and disseminate information
  15. Marketing managers
    Those managers responsible for developing, pricing, promoting, and distributing goods and service to buyers
  16. Financial managers
    Those managers responsible for planning and overseeing the financial resources of a firm
  17. Technical skills
    Skills associated with performing specialized task with in a firm
  18. Human relations skills
    Skills in understanding and getting along with people
  19. Conceptual skills
    Abilities to thinks in the abstract, diagnose and analyze different situations, and see beyond the present situation
  20. Time management skills
    Skills associated with the productive use of time
  21. Decision-making skills
    Skills in defining problems and selecting the best courses of action
  22. Organizational politics
    The actions that people take as they try to get what they want
  23. Intuition
    An innate belief about something, often without conscious consideration
  24. Escalation of commitment
    Condition in which a decision maker becomes so committed to a course of action that she or he stays with it even when there is evidence that the decision was wrong
  25. Risk propensity
    Extent to which a decision maker is willing to gamble when making a decision
  26. Strategic management
    The process of helping an organization maintain an effective alignment with its environment
  27. Strategic goals
    Goals derived directly from a firm's mission statement
  28. Strategy
    The broad set of organizational plans for implementing the decision made for achieving organizational goals
  29. Mission statement
    An organization's statement of how it will achieve its purpose in the environment in which it conducts its business
  30. Long-term goals
    Goals set for extended periods of time, typically five years or more into the future
  31. Intermediate goals
    Goals set for a period of one to five years
  32. Short-term goals
    Goals set for the very near future, typically less than one year
  33. Strategy formulation
    Creation f a broad program for defining and meeting an organization's goals
  34. SWOT analysis
    Identification and analysis of organizational strengths and weaknesses and environmental opportunities and threats as part of strategy formulation
  35. Organizational analysis
    The process of analyzing a firm's strengths and weakness
  36. Environmental analysis
    The process of scanning the environment for threat and opportunities
  37. Corporate- level strategy
    Identifies the various businesses that a company will be in, and how these businesses will relate to each other
  38. Business-level (competitive) strategy
    Identifies the ways a business will compete I tis chosen line of products and services
  39. Functional strategies
    Identify the basic courses of action that each department in the firm will pursue so that it contributes to the attainment of the business's overall goals
  40. Concentration strategy
    Involves focusing the company on one product or product line
  41. Market penetration
    Boosting sales of present products by more aggressive selling in the firm's current market
  42. Geographic expansion
    Expanding operations in new geographic areas or countries
  43. Product development
    Developing improved products for current markets
  44. Horizontal integration
    Acquiring control of competitors in the same or similar markets with the same or similar products
  45. Vertical integration
    Owning or controlling the inputs to the firm's processes and/or the channels through which the products or services are distributed
  46. Diversification
    Expanding into related or unrelated products or market segments
  47. Investment reduction
    Reducing the company's investment in one or more of its lines of business
  48. Cost leadership
    Becoming the low-cost leader in an industry
  49. Differentiation strategy
    A firm seeks to be unique In its industry along some dimensions that is valued by buyers
  50. Focus strategy
    • Selecting a market segment and serving the customers in that market niche better than
    • competitors
  51. Contingency planning
    Identifying aspects of a business of its environment that might entail changes in strategy
  52. Crisis management
    An organization's methods for dealing with emergencies
  53. Corporate culture
    The shared experiences, stores, beliefs, and norms that characterize a firm
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Introduction to Business Practice Chapter 6
Introduction to Business Practice Chapter 6