Comm 1800 ch 3
Terms
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- manger
- some who who is responsible for looking after the interests of the business owners and other stakeholders
- Board of Directors (the board)
- representaties tha serve on a business's governing body
- senior managers
- responsible for decisions regarding the total business and coordinating all areas of the business
- CEO
- Chief executive officer; highests senior manager; president
- Vice presidents
- reports to president
- CFO
- Chief financial officer; treasurer
- COO
- Chief operating Officer
- CIO
- Chief information officer; VP of technology
- CMO
- chief Marketing officer
- Controller
- The chief accountant
- fuctional/divisional managers
- middle and junior level managers that run functional areas or divisions of the business
- span of influence
- scope of a manager's responsibilities
- Planning
- forecasting and envisioning the futue and deciding what actions the business will take
- Visioning
- first step of planning; process of looking at the past and present, embracing the forces of change, and forecasting the future
- strategic paln
- used to set and communiate the business's broad goals and long term objectives; broad, less details (may be used by senior management)
- Tactical plans
- break down the broad goals and long term objectives into more precise goals and actions (functional managers)
- Operational Plans
- very specific about activites and standards; show details of how actions are to be performed and goals reached (middle and junior mangers)
- Contingency plans
- plans that detail what course of action the company should take in case the unexpected occurs
- Execution
- involves using systems to operate the business, according to plans, to create value, and achieve the desired goals; implementing decisions and getting the job done
- Reviewing
- involes using systems to compare the desired outcomes from planning to the actual results of execution; monitoring how plans are being executed and holding managers accountable for their decisions
- Control
- using systems to monitor execution and attempt to ensure that execution meets the goals of planning
- Accountability
- holding managers responsible for meeting standards
- external environment
- composed of those importnat factors that the business does not directly control (ex: overall economy, consumer wants, competitor actions)
- internal environment
- composed of those factors that the business can control (ex: what business will sell, where it will ocnduct business, how to manage employees)
- Porter's Five forces
- five external forces that affect a business and how much power it has
- Supplier power
- the power that suppliers have in a business's value chain
- Barriers to entry
- the difficulty new businesses may have in entering the market (ex: government policy, overcoming customer preferences, and financial requirements)
- Customer power
- the power customers have in the business's value chain
- Threat of substitute products
- the avaiability of products that the customer can substitute for the business's product
- Rivalry
- the intensity of competition in the industry
- SWOT analysis
- process of recognizing a company's strengths, weaknesses, opportunities, and threats
- strengths and weaknesses
- internal to the business; things a business can control
- opportunities and threats
- external to the business; out of the business's control
- Networks
- communication processes that bring people and organizations together for a common purpose
- formal network
- the business's organization structure adopted by senior management
- Informal networks/social networks
- chatter from employees and customers
- team
- group of people working together
- centralized organization
- one in which the authority to make decisions rests on a few senior managers, seeking consistency and standardization
- decentralized organization
- one in which authority to make and implement decisions rests in many managers, often junior or middle managers, seeking flexibility and creativity and quick adaptations
- divisional organization
- one in which the business is divided into divisions where a divisions is defined as a certain market
- functional organization
- one in which the business is organized based on functions (line or staff)
- line functions
- includes those functions that are directly involved in a company's value chain, specifically the inputs, the processes used to convert inputs to outputs and the outputs sold to customers (ex: purchasings, production, maketing)
- Staff functions
- functions that are indirectly involved in the company's value chain, supports activities of line functions (ex: accounting, finance, and information systems)
- Matrix organization
- combination of divisional model and a functional model; blending
- change management
- embracing change, sensing when to be flexible and not to be flexible
- formal leaders
- have formal authority based on posistion they hold in the company
- informal leaders
- do not have formal authority but are empowered by team members
- transactional leaders
- leaders that help their team reach a clearly defined, desired objective
- transformational leades
- help their team envision possibilites and the need to change
- Autocratic leaders
- make decisions without seeking the input of others; dictate
- participative leaders
- democratic leaders, attempt to involve as many people as possible in decision making
- Laissez-fare leader
- one who sets the overall direction and guidelines but permits other sto make the decision about implementation