MGT 3013 Ronald Anderson - Exam 1
1. Organization: A group of people who work together to achieve some specific
purpose
2. Management: 1. Pursuing goals Efficiently and Effectively
2. Integrating the work of people
3. Planning, organizing, leading, and controlling the organization's resources
3. Efficiency: "the means" - the means of attaining an organization's goals
-use resources wisely and cost-effectively
4. Effectiveness: "the ends" - achieve results, make decisions, and successfully
carry them out to achieve an organization's goals.
5. Multiplier effect: Adding value that is multiplied throughout an organization that
is greater than the contribution of one person alone.
6. The 4 Principle Functions of Management: POLC
Planning
Organizing
Leading
Controlling
7. Planning: setting goals and deciding how to achieve them
8. Organizing: arranging tasks, people and other resources to accomplish the work
9. Leading: motivating, directing, and influencing people to work hard to achieve
goals
10. Controlling: monitoring performance, comparing it with goals, and taking
corrective action as needed.
11. Competitive Advantage: the ability to produce outcomes more
EFFECTIVELY than competitors
1. responsive to customers
2. innovation
3. quality
4. efficiency
12. 2 Types of Differentiation: 1. Preference for the firms output
2. Cost advantage
13. Preference for the Firm's Output: Value added - people choose the firm's
output over others/people are willing to pay more/premium
14. Cost Advantage: Lower Price - Lower COGS
, MGT 3013 Ronald Anderson - Exam 1
*Just because a firm can lower their price, does NOT mean that they will -- markets
are the only thing putting pressure on prices.
15. Economies of Scale: [Efficiency] put downward pressure on costs as output
increases (bulk buying)
16. Economies of Scope: [Efficiency] reduced cost because of shared activities
(similar packaging sizes for cigarettes and mac & cheese - 1 delivery man - 1 dolly
- shared activity)
17. Brand Name Recognition: [Effectiveness] Association between brand and
something positive (Celebrity spokesperson, etc.)
18. Brand Loyalty: [Effectiveness] the desire to pay more for the same product
(Switching costs)
19. Switching Costs: costs that make customers reluctant to switch to another
product or service
20. Supply Channel: [Efficiency & Effectiveness] Raw resources to end users
(integrated supply channel - downward pressure on costs OR flexible supply
channel) 21. Integrated Supply Chain: all the activities that organizations
undertake to deliver value to the customer, such as working with suppliers and
distribution through convenient channels
22. Flexible Supply Chain: Components of a supply system are produced in
different parts of the world then brought together to meet consumer needs,
allowing companies to choose from where they attain parts to produce goods.
23. Ability to Innovate: taking a product [Effectiveness] or a process [Efficiency]
and creating new cash flow from that -Innovating products increase prices
-Innovating processes decreases costs
24. Other examples of differentiation: -Unique, Specialized, and Valuable Assets
-" operational technologies
-" relationships
25. Cash Flow: the total amount of money being transferred into and out of a
business, especially as affecting liquidity.
26. Capital: Financing (Loans), Equity (Stocks/Ownership), Retained Earnings
(Previous year's profits)
-the purpose of a capital investment is to increase cash flows
-only time capital should be used as a cash flow is in the case of a startup.
-capital investments = competitive advantage
-" that yield a better cash flow = better competitive advantage
, MGT 3013 Ronald Anderson - Exam 1
27. Equity: -Ownership/property
-Dividends
28. Debt: -Interest
-Loans and Bonds
29. Retained Earnings: -last year's after tax profit -growth
30 Non-Competitive Market Strategies: -demographic trends
-international events
-technological change
-legal/political conditions
-economic climate
-cultural trends
31. Porter's Five Forces: Model developed by strategy expert Michael Porter
that identifies five competitive forces that influence planning strategies. -threat of
rivalry
-" buyers
-" suppliers
-" substitutes -
" entrants
32. Threat of Rivalry: the intensity of competition among a firm's direct
competitors 33. Threat of Buyers: powerful buyers can 'squeeze' (lower profits)
the focal firm by demanding lower prices and/or higher levels of quality and
service
34. Threat of Suppliers: The extent to which firms that make critical resources
available have leverage over the industry
35. Threat of Substitutes: the idea that products or services available from
outside the given industry will come close to meeting the needs of current
customers 36. Threat of Entrants: New entrants can shake up an industry and
cause increased competition as they seek to take market share from existing
companies in the industry.
37. Organizational Design: A firm's structure and control mechanisms need to be
aligned
38. Functional Structure: Specialization/Divided work
39. Codified work: written down work, lowers requirements of employee wages
40. Central Control: A few people making decisions impacting everything
1. Organization: A group of people who work together to achieve some specific
purpose
2. Management: 1. Pursuing goals Efficiently and Effectively
2. Integrating the work of people
3. Planning, organizing, leading, and controlling the organization's resources
3. Efficiency: "the means" - the means of attaining an organization's goals
-use resources wisely and cost-effectively
4. Effectiveness: "the ends" - achieve results, make decisions, and successfully
carry them out to achieve an organization's goals.
5. Multiplier effect: Adding value that is multiplied throughout an organization that
is greater than the contribution of one person alone.
6. The 4 Principle Functions of Management: POLC
Planning
Organizing
Leading
Controlling
7. Planning: setting goals and deciding how to achieve them
8. Organizing: arranging tasks, people and other resources to accomplish the work
9. Leading: motivating, directing, and influencing people to work hard to achieve
goals
10. Controlling: monitoring performance, comparing it with goals, and taking
corrective action as needed.
11. Competitive Advantage: the ability to produce outcomes more
EFFECTIVELY than competitors
1. responsive to customers
2. innovation
3. quality
4. efficiency
12. 2 Types of Differentiation: 1. Preference for the firms output
2. Cost advantage
13. Preference for the Firm's Output: Value added - people choose the firm's
output over others/people are willing to pay more/premium
14. Cost Advantage: Lower Price - Lower COGS
, MGT 3013 Ronald Anderson - Exam 1
*Just because a firm can lower their price, does NOT mean that they will -- markets
are the only thing putting pressure on prices.
15. Economies of Scale: [Efficiency] put downward pressure on costs as output
increases (bulk buying)
16. Economies of Scope: [Efficiency] reduced cost because of shared activities
(similar packaging sizes for cigarettes and mac & cheese - 1 delivery man - 1 dolly
- shared activity)
17. Brand Name Recognition: [Effectiveness] Association between brand and
something positive (Celebrity spokesperson, etc.)
18. Brand Loyalty: [Effectiveness] the desire to pay more for the same product
(Switching costs)
19. Switching Costs: costs that make customers reluctant to switch to another
product or service
20. Supply Channel: [Efficiency & Effectiveness] Raw resources to end users
(integrated supply channel - downward pressure on costs OR flexible supply
channel) 21. Integrated Supply Chain: all the activities that organizations
undertake to deliver value to the customer, such as working with suppliers and
distribution through convenient channels
22. Flexible Supply Chain: Components of a supply system are produced in
different parts of the world then brought together to meet consumer needs,
allowing companies to choose from where they attain parts to produce goods.
23. Ability to Innovate: taking a product [Effectiveness] or a process [Efficiency]
and creating new cash flow from that -Innovating products increase prices
-Innovating processes decreases costs
24. Other examples of differentiation: -Unique, Specialized, and Valuable Assets
-" operational technologies
-" relationships
25. Cash Flow: the total amount of money being transferred into and out of a
business, especially as affecting liquidity.
26. Capital: Financing (Loans), Equity (Stocks/Ownership), Retained Earnings
(Previous year's profits)
-the purpose of a capital investment is to increase cash flows
-only time capital should be used as a cash flow is in the case of a startup.
-capital investments = competitive advantage
-" that yield a better cash flow = better competitive advantage
, MGT 3013 Ronald Anderson - Exam 1
27. Equity: -Ownership/property
-Dividends
28. Debt: -Interest
-Loans and Bonds
29. Retained Earnings: -last year's after tax profit -growth
30 Non-Competitive Market Strategies: -demographic trends
-international events
-technological change
-legal/political conditions
-economic climate
-cultural trends
31. Porter's Five Forces: Model developed by strategy expert Michael Porter
that identifies five competitive forces that influence planning strategies. -threat of
rivalry
-" buyers
-" suppliers
-" substitutes -
" entrants
32. Threat of Rivalry: the intensity of competition among a firm's direct
competitors 33. Threat of Buyers: powerful buyers can 'squeeze' (lower profits)
the focal firm by demanding lower prices and/or higher levels of quality and
service
34. Threat of Suppliers: The extent to which firms that make critical resources
available have leverage over the industry
35. Threat of Substitutes: the idea that products or services available from
outside the given industry will come close to meeting the needs of current
customers 36. Threat of Entrants: New entrants can shake up an industry and
cause increased competition as they seek to take market share from existing
companies in the industry.
37. Organizational Design: A firm's structure and control mechanisms need to be
aligned
38. Functional Structure: Specialization/Divided work
39. Codified work: written down work, lowers requirements of employee wages
40. Central Control: A few people making decisions impacting everything
