Strategic Management

Front 1

sole proprietorships

Back 1

unlimited personal liability and final authority

Front 2

partnerships

Back 2

general partnerships- share responsibility
limited liability partnership - involed as investors but no input on operations
joint venture - like gp but for a limited time

Front 3

corporations

Back 3

4 chracteristics:
1. liability limited to assests ownd by co
2. life can etend beyond original owner
3. central management structure
4.ownership transferred freely by selling stock

Front 4

llc

Back 4

exists for a finite period of time and can be extended must have at most 2 characteristics of a corporation

Front 5

Organization functions

Back 5

-production and operations
-sales and marketing
-finance and accounting
-IT
-People

Front 6

Productions and operations

Back 6

*production
-process by which product is created
*operations
-all activities necessary to produce goods

Front 7

activities in operations

Back 7

*Product design
*capacity
*production layout
*scheduling
*quality management
*inventory management
*technology
*facility location
*cost control

Front 8

Capacity

Back 8

determining how much can be produced with what is available (inputs) and what changes of inputs are needed

Front 9

Production Layout

Back 9

way in which goods or services will be produced e.g. the design of assemby line or process to provide service

Front 10

scheduling

Back 10

making sure serices are available at peak of customer demand

Front 11

sales and marketing

Back 11

*sales
-transferring from business to customer
*marketing
-promote and distribute products, support sales, research design, determine pricing, determine target market

Front 12

4 p's of marketing

Back 12

*product
-product development
*price
-list price, discounts and allowances
*placement
-where to sell
*promotion

Front 13

finance and accounting

Back 13

*finance
-obtaining and granting credit
-investing and managing
-banking relationships
*accounting
-recording and reporting transactions

Front 14

finacial analyst

Back 14

-# employees needed at each production level
-cost data
-profit margin
-project staffing levels

Front 15

fiscal year

Back 15

annual reporting period for accounting
most on july 1

Front 16

balance sheet

Back 16

assets=liabilities+equity
financial condition of org for a specific day, usually end of accounting period: monthly, quarterly, and annual

Front 17

income statement (P&L)

Back 17

info about financial results of operations
-revenue
-cost
-overhead
-profit or los

Front 18

statement of cash flows

Back 18

where money came from and what i was used for
-cash from sales
-cash from investments
-cash to assets

Front 19

accrued expense

Back 19

expenses like vacation leave that have been incurred but not yet paid

Front 20

audited financial statements

Back 20

examined by auditor to see if they fairly represent the business

Front 21

budget

Back 21

projection of revenue and expenses to control current expenses

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equity

Back 22

value of the business to owners after all liabilities have been paid

Front 23

gross profit

Back 23

sales-cogs

Front 24

net profit

Back 24

gross profit-operating expenses

Front 25

gaap
generally accepted accounting principles

Back 25

established by fasb-financial accounting standrds board

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profit

Back 26

money earned after all expenses have been paid

Front 27

retained earnings

Back 27

net profits that aren't distributed to owners but remain in business as equity

Front 28

revenue

Back 28

money received from customers

Front 29

IT

Back 29

managing technology systems

Front 30

org. life cycles

Back 30

startup
growth
maturity
decline

Front 31

risks of stages

Back 31

startup - funding is an issue, work close together and many things at the same time
growth
-morale isues as more management comes in
-needs exceed infrastructure for operations
*maturity
-becomes bureaucratic and resistant to competitive change
*decline
-with no reinvigorationsm may cease to exist

Front 32

benefits of stages

Back 32

*startup
-work close together
*growth
-can provide more benefits to employees
*maturity
-compensation is enhanced and can bring in undeveloped talent to develop within
*decline
-acquisition
-chance for revival

Front 33

strategic planning

Back 33

systematic way of setting direction for success

Front 34

strategic planning process

Back 34

1. Pre-planning state
2. Environmental Scan
3. Formulate Strategy
4. Implement Strategy
5. Evaluate Strategy & adjust

Front 35

1. pre-planning stage

Back 35

sets the stage, reduces errors in planning, ensures commitment from leaders
Decide on:
-process
-participants
-time frame
-planning tools for environmental scan

Front 36

strategy

Back 36

uses strengths of a business for competitive advantage

Front 37

goal

Back 37

direction business will take and what it will achieve

Front 38

objective

Back 38

specific description of steps taken to achieve goals

Front 39

2. Environmental Scan
a. internal
b. external

Back 39

collect info about factors needed for planning
a. Internal(talent&material)
-statistical models
-swot analysis
b. external (business env.)
-swot analysis
-pest analysis
-porter's 5 forces

Front 40

Statistical Models

Back 40

quantitative analyzes to id trends e.g. turnover rates or buying habits

Front 41

SWOT Analysis

Back 41

As related to plan:
*stengths-internal support
*weakness-internal obstacles
*opportunity-external support
*threat-external obstacles

Front 42

PEST Analysis

Back 42

*political
-regulations & situations
*economic
-econ.strentgh,unemployment rate,inflation,fiscal policy
*social
-demographics:target market
*technology
-cost and advances

Front 43

Porter's 5 factor analysis

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1. threat of new competitors entering market
2. reliance on suppliers
3. diversity of customer base
4. replacement products available at reasonable cost
5. level of market competition

Front 44

3. Formulate strategy

Back 44

-vision statement
-mission statement
-corporate values statement
-corporate goals
*SMART model