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131 Cards in this Set

  • Front
  • Back

What are the three kinds of environment that make up the general "business environment"?

The Global Environment, General Environment, and Specific Environment.

What kind of thing falls into the Global Environment?

Global Legal-Political issues, Global Trade, Culture, Global Markets, Global competitors

What is included in the General Environment?

Things that MIGHT have a direct impact on an organization. Legal-political issues, socio-cultural issues, technology, demographics, and economics.

What is the specific environment?

Suppliers, customers, competitors, and public pressure groups. These things WILL have a direct impact on an organization if they change.

What is Environmental Uncertainty?

The extent to which managers have knowledge of and are able to predict change.

What are stakeholders?

People in the organization's specific environment that are affected by the organization's decisions and actions.

What are some of the stakeholders in a business?

Banks, investors, customers, the surrounding community, environmentalists, dealers, employees, government, suppliers.

What does PLOC stand for?

Planning, Leading, Organizing, and Controlling.

...Of organizational resources.

What is Efficiency?

Getting work done with a minimum of effort, expense, and waste. Get the most output from the least amount of input, in order to minimize resource costs.

What is Effectiveness?

Completing activities/tasks so that organizational goals/objectives are achieved.

What is Planning, in the context of PLOC?

Defining goals, and establishing a means, a strategy, for achieving them.

What is Organizing, in the context of PLOC?

Determining what needs to be done, how it will be done, and who is to do it.

What is Leading, in the context of PLOC?

Inspiring and motivating employees to work hard.

What is Controlling, in the context of PLOC?

Monitoring activities to ensure that they are accomplished as planned.

What are the four kinds of Managers?

Top-Level Managers, Middle Managers, First-Line Managers, and Team Leaders.

What are the responsibilities of top managers?

Change, Commitment, Culture, Scan Environment, Develop Goals and Strategies.

What are the responsibilities of middle managers?

Allocate resources, set objectives for sub-units, coordination, monitor performance for sub-units, strategy implementation.

What are the responsibilities of first-line managers?

Supervising non-managerial workers, teaching, training, scheduling, facilitation.

What are the responsibilities of team leaders?

Facilitation, External Relationships, Internal Relationships.

What are technical skills?

Knowledge and proficiency in a specific field.

What are human skills?

Working well with other people.

What are conceptual skills?

The ability to think and conceptualize about abstract and complex situations concerning the organization.

Who most needs conceptual skills?

Top managers

Who most needs human skills?

Middle managers.

Who most needs technical skills?

Lower level managers.

Why are managers' roles evolving?

- Global Competition
- Business Scandals
- Constant Change
- Better Educated Workers
- Downsizing/Rightsizing

What are the three kinds of management roles?

Interpersonal roles, Informational roles, and Decisional Roles.

What are the different kinds of interpersonal roles?

Figurehead, leader, liaison

What are the different kinds of informational roles?

Monitor, disseminator, spokesperson.

What are the different decisional roles?

Entrepreneur, disturbance handler, resource allocator, negotiator

What are the four parts of Organizational Design?

Departmentalization, Location of Authority, Specialization, Formalization.

What distinguishes a mechanistic (tall) structure?

- High Specialization


- Rigid Departments


- Clear chain of command


- Narrow spans of control


- Centralized decision making


- High formalization

What distinguishes an organic (flat) structure?

- Low specialization


- Cross-functional teams


- Free flow of info


- Wide spans of control


- Decentralized decision making


- Low formalization

What is Organizational Structure?

The formal arrangement of departments, authority, and jobs within an organization.

AKA "Who does what?" "Who reports to whom?" "Where is the work done?"

What are the five traditional forms of departmentalization?

Functional, product, customer, geographic, and process.

What is functional departmentalization?

Grouping jobs by the functions performed.

Pro: The work is done by specialists who are highly skilled, and it's efficient because people who are similarly skilled can work together.

Cons: t might also lead to poor communication & slow decision-making.

What is product departmentalization?

Grouping jobs by the product/service line.

Pro: Specialized to certain products, managers can become experts in the industry, and they're closer to customers.

Cons: There's a duplication of certain functions/activities (they can't all share admin/accounting files), and it's difficult to coordinate.

What is customer departmentalization?

Grouping jobs on the basis of the type of customer and their needs.



Pro: Focuses on customer needs, which can be met by specialists, and tailored to their tastes!



Cons: Duplication of functions and resources, difficult to coordinate.

What is geographic departmentalization?

Grouping jobs on the basis of territory or geography.



Pros: Effective & efficient in handling regional issues, responsive to different markets



Cons: Duplication of functions and resources, difficult to coordinate.

What is process departmentalization?

Grouping jobs on the basis of product or customer flow.



Pros: More efficient flow of work activities



Cons: Only works with certain types of products

What is a matrix structure?

It's when specialists from different functional departments work together on projects, led by project managers.

Pros: Efficient way to manage large complex tasks, increases pool of resources, avoids duplication



Cons: Requires high levels of coordination & management skills, can cause conflict due to multiple bosses involved

What is the Chain of Command?

The continuous line of authority that extends from upper levels of an organization to the lowest levels of the organization and clarifies who reports to whom

What is the Span of Control?

The number of employees who can be effectively and efficiently supervised by a manager.

What affects the width of the Span of Control?

- Skills of the manager


- Capabilities of the employees


- Characteristics of the work


- Similarity of tasks


- Complexity of tasks


- Physical proximity of subordinates


- Standardization of tasks


- Strength of the Organization's Culture


- Sophistication of the organization's information system

What is centralization?

The degree to which decision making is concentrated at a single point in the organization



Usually happens if: Environment is stable, lower-level managers aren't experienced, decisions are significant, organization is facing a crisis, company is large

What is decentralization?

The degree to which lower-level employees provide input or actually make decisions. AKA Employee Empowerment.



Usually happens if: Environment is uncertain, lower-level managers are experienced, company is geographically dispersed

What is a Line Manager?

Somebody responsible for the essential activities of the organization, including production and sales. Line managers have the authority to issue orders to subordinates in the chain of command.

What are Staff Managers?

Managers with advisory authority, who cannot issue orders to those in the chain of command, except for those in their own department.

What is formalization?

The degree to which jobs within the organization are standardized and the extent to which employee behaviour is guided by rules and procedures.

What is work specialization?

The degree to which tasks in the organization are divided into separate jobs with each step completed by a different person.

Pro: Easy to learn



Con: Can lead to low job satisfaction, and employee turnover

How do you avoid the problems with work specialization?

Job rotation (moving people from one job to another)



Job enlargement (increasing the number of tasks performed)



Job enrichment (adding more tasks and authority)

What is a modular organization?

Except for their core business activities - the things they do better, faster and cheaper than others, all tasks are outsourced.



Think Nike.

There are a ton of diagrams in the Chapter 9 slides (week 2) - you should really check that out.

Seriously, read the slides as well as these flash cards if you wanna be thorough.

What is globalization/

When companies manufacture, finance, and market goods and services worldwide.

Why do countries trade?

So we can get stuff that isn't available here. Obviously.



Maybe we can't get it here, or we don't have enough of it here. Either way, we need it.



(Yes, I may have given up on being professional)

How much of Canada's national income (GDP) comes from exports?

Approximately 40%.

What is a comparative advantage?

When you can do something better than the other guy. For example: Canada is better at providing lumber than Japan.

How did Canada try to manage the US' comparative advantage?

We tried to hold them back with duties, tariffs, and legislation - trying to give our producers the advantage instead.

Is small business responsible for a lot of trade?

Yup. They account for a majority of exports in Canada.

How much of our trade goes to the US?

73% of exports, 69% of imports. Holy cow.

What are the strategies for reaching global markets, in order from least to most risk?

Exporting, licensing, franchising, contract manufacturing, international joint ventures and strategic alliances, foreign direct investment.

What is global sourcing?

Accessing production process inputs from overseas.

I.E. Bringing skilled labour in from overseas.

What is licensing?

Giving another organization the right to use brand names, technology, or product specifications. They get the right to manufacture a product or use its trademark.

What is franchising?

Giving another organization the right to use brand names, technology, or product specifications. They get the right to use the business name and sell the product and service under their name.

What is contract manufacturing?

A foreign company producing private-label goods to which a domestic company then attaches its own brand name or trademark. This is included in outsourcing.

What is a strategic alliance?

A long-term partnership between two or more companies established to help each company build competitive market advantages through the sharing of resources and knowledge.

What is a joint venture?

Basically a partnership in which two or more companies (often from other countries) join to undertake a major project or to form a new company.

What is Foreign Direct Investment/

A method of investment in which a company builds a new business or buys an existing business in a foreign country.

Where have Canadian companies made their largest foreign direct investments?

The US and UK. SURPRISE!

What industries have restrictions on foreign ownership in Canada?

Broadcasting, aviation, liquor sales, mining, oil and gas, pharmacies - and more!

What are multi-national corporations?

Entities that own businesses in two or more countries, and they're key driver of foreign direct investment around the world.

What forces affect trade in global markets?

Social-Cultural Differences, Economic Forces, Technological Forces, Legal and Regulatory Forces, Trade Barriers

What is protectionism?

The use of trade barriers to protect local companies and their workers from foreign competition. This includes tariffs, quotas, labeling rules, health and safety standards, emissions standards, and paperwork/customs facilities.

There is a TON of extra information about tariffs and other trade barriers in the slides. Go read it if you want to.

Seriously this is too much to cover in here, I think I'm already overdoing it. Is anybody still reading? I've been making flash cards for 6 f-ing hours.

What are regional trading alliances?

Trading alliances in which countries block together in regions to organize trade deals. Like the EU, NAFTA (North American Free Trade Agreement) , UNASUR (Union of South American Nations), APEC (Asia-Pacific Economic Cooperation) or ASEAN (Association of Southeast Asian Nations).

The slides have a big section on all of the regional trading alliances and the pros and cons of globalization. Seriously, do I need to repeat it all here?

No, I do not.

What is economics?

The study of how society chooses to employ scarce resources (land, labour, capital goods, entrepreneurship, knowledge) to produce goods and services and distribute them for consumption among various competing groups and individuals.

What are the factors of production?

Land


Labour


Capital Goods


Entrepreneurship


Knowledge

What is a Free-Market Economy?

Capitalism, brah. An economy where the market (individuals) largely determines which goods and services are produced, who gets them, and how the economy grows.

What is a Command Economy?

Communism or Socialism, comrade. An economy in which the government largely decides which goods and services are produced, who gets them, and how the economy grows.

What is a Mixed Economy?

Canada is one of these. Economic systems in which some allocation of resources is made by the market and some by the government.

How does a free market work?

Many buyers and sellers trading freely determine the prices at which they will exchange goods and services. The constant interplay between supply and demand determines an equilibrium price at which a transaction will occur.



Note: No market is truly free.

Has Canada started deregulating industries recently?

Yup. Airlines, banks, trucking industry included. Also, some private companies are competing with Crown Corporations in areas like health care, education, and security.

Now there's a bunch of graphs about supply and demand. Those definitions are in the terminology flashcards, I ain't typing them again.

Guess I'm getting lazy. Coffees and a risotto will only get you so far.

What are the four different degrees of competition within free markets?

Perfect competition, monopolistic competition, oligopoly, monopoly.

What is perfect competition?

The market situation in which there are many sellers in a market and no seller is large enough to dictate the price of a product.

What is a monopolistic competition?

The market situation in which a large number of sellers produce products that are very similar but that are perceived by buyers as different.

What is an oligopoly?

A form of competition in which just a few sellers dominate the market. Sometimes this can be because the price of starting in the industry is $$$$.

What is a monopoly?

A market in which there is only one seller for a product or service.



And his name is Uncle Pennybags.



...Not really.



...That's a terrible board game joke.

What are the Economic Goals?

Growth, full employment, and price stability.

What is the GDP?

The measure of the market value of all goods and services produced by the nation's economy in a given year. It ONLY counts products that were produced domestically.

What are the four portions of a business cycle?

Prosperity/Boom, Recession, Recovery, Depression

What is prosperity?

When the economy expands, unemployment is low, incomes rise and consumers buy more products.

What's a recession?

When GDP decreases for two consecutive quarters, unemployment goes up, business revenues decline.

What is a recovery?

When the economy stabilizes and starts to grow again.

What's a depression?

Unemployment remains high, production is severely curtailed. (Lasts more than 10 years)

What is full employment?

A condition under which everyone who wants to work has a job (about 95%)

What is the unemployment rate?

The percentage of the total labour force that is unemployed and actively seeking work.

What is price stability?

A condition under which the average of the prices for goods and services changes very little.

What is inflation?

The overall price level goes up.

What is deflation?

The overall price levels go down.

What is the Consumer Price Index?

The index that measures the rate of inflation by determining price changes of a hypothetical basket of 12 broad categories of goods such as food, housing, and clothing.


Then there's a bunch of stuff about Canada's Business Confidence Index Survey.

So many graphs.

What's a surplus?

When, in a given year, the government takes in more money through taxes than it spends on goods and services.

What's a deficit?

When, in a given year, the government spends more than it takes in.

What is the national debt?

The accumulation of government surpluses and deficits over time.

Why is it important for a business to be socially responsible?

People will get angry at you if you aren't, basically.

What is greenwashing?

Using PR or green marketing tactics in order to PRETEND you're going green and reducing your company's ecological footprint.

What is Social Responsibility?

A business's obligation to pursue policies, make decisions, and take actions that benefit the welfare of society.

What is Social Responsiveness?

A company's actions (strategy) in responding to expectations concerning social responsibility.

What are the two parties people decide between when determining the extent of their social responsibility?

Shareholders, or Stakeholders (Employees, Constituents in the Specific Environment, and Broader Society).

Who was the guy who thought businesses should only serve their shareholders by maximizing profit?

Milton Friedman. What the heck, dude.

What are the arguments against Stakeholder View?

- Dilutes the purpose of corporations


- Gives them too much power without accountability


- Managers lack mandate and skills to make decisions about society's welfare


- Organizations are not "moral agents"


- Adds to the cost of doing business


- Undermines market efficiency

What are some primary stakeholders?

Shareholders, employees, customers, suppliers, governments, local community, and society.

What are secondary stakeholders?

Media, special interest groups, and trade associations.

What are the arguments in favour of stakeholder view?

- Increasing public expectations


- Maximizes long-run profits and shareholder value


- Ethical/Moral obligation


- Fewer government regulations; preventative approach


- Balances power and responsibility


- Corporations have the resources

What are the four approaches to sustainable management?

Legal, market, stakeholder, and activist approaches.

What is the legal approach to sustainability?

Obeying laws, rules, and regulations willingly and without legal challenge - and that's it. The minimum!

What is the market approach to sustainability?

Responding to the demands of your customers as well as all legal requirements.

What is the stakeholder approach to sustainability?

Working to meet environmental demands of multiple stakeholders, like employees, suppliers, and the community, as well as customers and legal requirements.

What is the activist approach to sustainability?

An organization which exhibits the highest degree of environmental sensitivity. They actively look for ways to respect and preserve the Earth and its natural resources.

Then there's a bunch of stuff about companies that are socially reponsible, and how to be socially responsible, and how we measure it. Enjoy reading about that.

Moving on to the last section. Hour 7 begins! I think it shall be the last.

What is Entrepreneurship?

The process of starting new organizations/new businesses, generally in response to profit-making opportunities (can include Social Enterprises & Ventures)

In what ways do Entrepreneurs differ from Significant Differences?

1. Amount of Wealth Creation


2. Speed of Wealth Creation


3. Risk


4. Innovation

Basically, a small business WANTS to stay small.

What is a small business?

A business that is independently owned, operated, and financed:



- Has fewer than 100 employees


- Doesn't necessarily engage in any new or innovative practices


- Has relatively little impact on its industry

Why do people take the entrepreneurial plunge?

- New idea, process, or product


- Independence


- Challenge


- Family Pattern


- Profit


- Immigrants

What are micro-enterprises?

Businesses with fewer than 5 employees. Often out of a home.



Hey, my dad runs one of these.

What is a business establishment?

- It has at least one paid employee
- Annual sales revenue of $30,000 or is incorporated


- Has filed a federal corporate income tax return at least once in the past three years

SMALL BUSINESS FACTS

98% of businesses in Canada have less than 100 employees! 104,000 new small businesses are created in Canada each year! Small businesses employ 48% of the total private labour work force! They contributed a bit more than 30% to our GDP! 86% of exports are small business generated!

What are some ways to get into your first business venture?

- Get some experience and start your own


- Buy an existing business


- Buy a franchise unit


- Inherit/take over a family business

Okay, it's 1:15am and I've hit the section about business ownership methods - straight up, ladies and gents, this is from Law last term. If you want to read about those - read my law final flash cards again. ;)

There's also some stuff about a business plan and how to borrow money, but they're just long blocks of text. Reading the slides is more efficient.



Okay, I love you, buh-bye!