MCE TEST 2 KEY TERMS

Economies of scale

factors that cause a producer's average cost per unit to fall as output rises

Accounting

keeping records

Human resources

managing your employees

Effectiveness

meeting the objective

Social Power

the capacity to alter the actions of others

Yerkes-Dodson Law

the principle that performance increases with arousal only up to a point, beyond which performance decreases

Accountability

the requirement of one person to answer to a higher authority

Enacted Values

the values you see a company actually enacting/practicing

Efficiency

using the smaller amount of resources possible

Espoused Values

what an organization says it values

Value Congruence

when espoused and enacted values align

Sustainable

when the advantage persists despite the best efforts of competitors to match or surpass

Productivity

amount of output generated given amount of input

Vision

creates an idealized future state for your organization that everyone is motivated to pursue wholeheartedly

Abandoned strategy

elements that no longer fit with the company's ongoing strategy

Manager

- A person that uses influence to set and achieve goals. - A person who directly supervises, supports, and activates work effort to achieve performance goals of individuals, groups, and organizations.

Informational role

- Exchanging and processing information - Ex: monitoring and disseminating

interpersonal role

- Interacting with people - Ex: building relationships, influencing

Planning

- Mission, vision, and values - Strategic and financial objectives

decisional role

- Using information to make decisions - Ex: resource allocation, address opportunities

Conceptual

- think analytically - work with abstract ideas - solve complex problems

Technical

- use expertise - perform tasks with proficiency - apply strong skill set to operations

Human

- work well with others - relate to people - develop social capital - build and manage relationships

Organization

A group of people who work together to achieve some specific purpose

Middle manager

A manager who supervises first-line managers and is responsible for finding the best way to use resources to achieve organizational goals.

Financing

Budgeting for marketing activities,obtaining the necessary funds needed for operations,and providing financial assistance to customers so they can purchase the business products and service.

Reward power

Ability to control the allocation of rewards valued by others, or remove negative sanctions (e.g., professor can reward with grades)

Coercive power

Ability to harm, penalize, or punish someone (e.g., a mugger with a gun demanding your wallet)

Value drivers

Actions, processes, or results that are needed to deliver a desired value.

Stakeholders

All the people who stand to gain or lose by the policies and activities of a business and whose concerns the business needs to address.

Objectives

An organization's specific performance targets

Organize

Arranging tasks, people, and other resources to accomplish the work

Positional power

Based on position and authority

Expert power

Capacity to influence others by possessing knowledge or skills that they value. Based on a perception of competence (e.g., Einstein)

Financial Objectives

Communicate management's goals for financial performance

Operations

Deciding on logistics

Mission

Describe the organization's current business operations and purpose

Personal power

Does not need to be associated with position

Lead

Inspiring people to work hard to achieve high performance

Strategic Objectives

Lay out target outcomes concerning a company's market standing, competitive positions, and future business prospects

Front line manager

Lowest level of managers in the hierarchy; responsible for the work of operating employees only and does not supervise other managers

Control

Measuring performance and taking action to ensure desired results

Referent power

Occurs when others idolize, identify with, and/or are inspired by the person (e.g., celebrities, social media influencers).

Broad differentiation strategy

Offer unique product attributes that a wide range of buyers find appealing and worth paying more for

Broad low-cost strategy

Produce goods or services for a broad base of buyers at a lower cost than rivals

Plan

Setting performance objectives and deciding how to achieve them

SMART goals

Specific, Measurable, Attainable, Realistic, Timely

Strategy

The coordinated set of actions that managers take to outperform organization's competitors and achieve superior success

Management

The process of getting things done effectively and efficiently, with and through people.

Governance

The process of governing

Goal Setting Theory

The types of goals we set impact our achievements

SBA

US government agency that advises and assists small businesses by providing management, financial advice, and loans

Upside-down pyramid

View of organizations that puts consumers at the top and positions upper levels of management as supporters of lower levels of management

Realized strategy

a combination of proactive and reactive strategy

Top manager

an upper-level executive who guides and controls the overall fortunes of an organization

Legitimate power

associated with having status or formal job authority. There is a mutual agreement that people in certain roles can request certain behaviors of others (e.g., police officers)

Values

beliefs, traits, and behavioral norms that company personnel are expected to display in conducting the company's business and pursuing its strategic vision and mission

Crowdfunding

donation based or debt-investment (peer-to-peer lending)

Cost drivers

factors that cause, or drive, the incurrence of costs

Influence

having an effect or impact on the actions, behavior, opinions, etc., of another or others

Venture Capitalists

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

Consumer market

people with unsatisfied wants and needs who have both the resources and willingness to buy

Deliberate/proactive strategy

planned initiative to improve the company's financial performance and secure a competitive edge

Angels

private individuals who invest their own money in potentially hot new companies before they go public

Emergent/reactive strategy

responding to unanticipated developments and fresh market conditions

Value chain

set of activities that an organization carries out to create value for its customers

Competitive advantage (sustained)

some type of edge over rivals in attracting buyers and competing with competitive forces