BUS 100 Exam 2

top management

highest level of management consisting of the president and other key company Executives who develop strategic plans

Enterprise zones

specific geographic areas to which governments try to attract private businesses investment by offering lower taxes and other government support

Organizational culture

widely shared values within a company that provide unity and cooperation to achieve common goals

Chain of command

Authority that moves from the top of the company to the lower levels

What are the advantages of a sole proprietorship?

Ease of starting Being your own boss Retention of company profits

Networking

Establishing relationships with staff within and outside of one's organization. To build/weave strong relationships

Partnership

a business owned by two or more people

Franchisor

a company that develops a product and sells others the rights to make and sell the product (McDonald's, Jiffy Lube, 7-Eleven)

Business Plan

a detailed written statement that describes the nature of business, the target market, the advantages the business will have in relation to competition, and the resources and qualifications of the owner(s)

planning

a management function that includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives

organizing

a management function that includes designing the structure of the organization and creating conditions and systems in which everyone and everything work together to achieve organizational goals and objectives

Entrepreneurship

accepting the risk of starting a business

Disadvantages of a corporation

additional taxes and more paperwork

Intrapreneurs

creative people who work as entrepreneurs within corporations

empowerment

giving Frontline workers the responsibility, authority, freedom, training, and Equipment they need to respond quickly to customer requests

enabling

giving workers the education and tools they need to make decisions

Participative ( democratic) Leadership

leadership style that consists of managers and employees working together to make decisions

autocratic leadership

leadership style that involves making managerial decisions without consulting others

free rein leadership

leadership style that involves manager setting objectives and employers being relatively free to do whatever it takes to accomplish those objectives

Restructuring

redesigning an organization so that it can more effectively serve its customers

conceptual skills

skills that involve the ability to picture the organization as a whole and the relationships among its various parts

objectives

specific, short-term statements detailing how to achieve the organization's goals

goals

the broad, long-term accomplishments and organization wishes to attain

strategic planning

the process of determining the major goals of the organization and policies and strategies for obtaining and using resources to achieve those goals

contingency planning

the process of preparing alternative courses of action that may be used if the primary plans don't achieve the organization's objectives

problem solving

the process of solving the everyday problems that occur ( less formal than decision making)

Franchisee

A person who buys a franchise

Decision making

choosing among two or more alternatives

brainstorming

coming up with as many solutions to a problem as possible in a short time

Leading

create a new vision for the organization and guiding, training, coaching, motivating others to work effectively to achieve the organization's goals and objectives

Entrepreneurial team

A group of experienced people from different areas of business who join together to form a managerial team with the skills needed to develop, make, and market a new product

Sole Proprietorship

A business owned by one person

Centralized authority

An organization in which decision making authority is centralized at the top Apple Tesla

Decentralized authority

An organization in which decision making authority is delegated to the lower levels Johnson & Johnson Amazon

Matrix organization

An organization in which specialists from different areas come together to work on a specific project

Flat organization structures

An organization that has fewer layers of management Netflix Google

Tall organization structures

An organization that has many layers of management Department stores McDonald's

Bureaucracy

An organization with many layers of management who set the rules Government Universities Police Dept

Economies of scale

Companies can lower production costs by buying raw materials in bulk.

Benchmarking

Comparing an organization's practice, process against the worlds best

Cross functional self-management teams

Groups of employees from different departments who come together on a long-term project

Formal organization

Has an organizational chart that shows lines of responsibility, authority, and positions

Disadvantages of a franchise

Large start-up costs Share the profits Management regulations

Advantages of a corporation

Limited liabilities Extensive paperwork Size

Advantages of a franchise

Management and marketing assistance Personal ownership Nationally recognised name

Advantages of Partnership

More financial resources shared management longer survival

Why people take the Entrepreneurial challenge

Opportunity Profit Independence Challenge

What does it take to be an entrepreneur?

Self directed Self nurturing Action Oriented Highly energetic Tolerant of uncertainty

Disadvantages of Partnership

Unlimited liabilities Division of profits Disagreement between partners

Disadvantages of Sole Proprietorship

Unlimited liability Limited financial resources Management difficulties (No person is good at everything)

SWOT analysis

a planning tool used to analyze an organization's strengths weaknesses opportunities and threats

vision

an encompassing explanation of why the organization exists and where it's trying to head

Informal organization

an organization where employees meet and form relationships outside the formal organization. The human side of a company that does not appear on any organization chart

mission statement

an outline of the fundamental purposes of an organization

Franchise agreement

business sells the rights to use the business name and sell a product of service to others in a given territory.

Corporations

businesses that sell portions of ownership called stock shares

Limited liabilities

can only lose what one has invested in an organization

Incubators

centers that offer new businesses low-cost offices with basic business services

Venture Capitalists

individuals or companies that invest in new businesses in exchange for partial ownership of those businesses

S corporation

looks like a corporation but is taxed like sole proprietorships and partnerships

supervisory management

managers who are directly responsible for supervising workers and evaluating their daily performance

Acquisition

one company buying the property and liabilities of another organization

human relation skills

skills that involve communication and motivation; they label managers to work through and with people

technical skills

skills that involve the ability to perform tasks in a specific discipline/ Department

middle management

the level of management that includes general managers, division managers, and branch and plant managers who are responsible for tactical planning and controlling

Span of control

the optimum number of subordinates a person should oversee

Management

the process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other organizational resources

Merger

the result of two firms forming one company

Franchise

the right to use a specific business name and sell goods and services in a given area

Core competencies

those functions that the organization can do as well or better than any other organization