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44 Cards in this Set

  • Front
  • Back
sole proprietorships
unlimited personal liability and final authority
general partnerships- share responsibility
limited liability partnership - involed as investors but no input on operations
joint venture - like gp but for a limited time
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
exists for a finite period of time and can be extended must have at most 2 characteristics of a corporation
Organization functions
-production and operations
-sales and marketing
-finance and accounting
Productions and operations
-process by which product is created
-all activities necessary to produce goods
activities in operations
*Product design
*production layout
*quality management
*inventory management
*facility location
*cost control
determining how much can be produced with what is available (inputs) and what changes of inputs are needed
Production Layout
way in which goods or services will be produced e.g. the design of assemby line or process to provide service
making sure serices are available at peak of customer demand
sales and marketing
-transferring from business to customer
-promote and distribute products, support sales, research design, determine pricing, determine target market
4 p's of marketing
-product development
-list price, discounts and allowances
-where to sell
finance and accounting
-obtaining and granting credit
-investing and managing
-banking relationships
-recording and reporting transactions
finacial analyst
-# employees needed at each production level
-cost data
-profit margin
-project staffing levels
fiscal year
annual reporting period for accounting
most on july 1
balance sheet
financial condition of org for a specific day, usually end of accounting period: monthly, quarterly, and annual
income statement (P&L)
info about financial results of operations
-profit or los
statement of cash flows
where money came from and what i was used for
-cash from sales
-cash from investments
-cash to assets
accrued expense
expenses like vacation leave that have been incurred but not yet paid
audited financial statements
examined by auditor to see if they fairly represent the business
projection of revenue and expenses to control current expenses
value of the business to owners after all liabilities have been paid
gross profit
net profit
gross profit-operating expenses
generally accepted accounting principles
established by fasb-financial accounting standrds board
money earned after all expenses have been paid
retained earnings
net profits that aren't distributed to owners but remain in business as equity
money received from customers
managing technology systems
org. life cycles
risks of stages
startup - funding is an issue, work close together and many things at the same time
-morale isues as more management comes in
-needs exceed infrastructure for operations
-becomes bureaucratic and resistant to competitive change
-with no reinvigorationsm may cease to exist
benefits of stages
-work close together
-can provide more benefits to employees
-compensation is enhanced and can bring in undeveloped talent to develop within
-chance for revival
strategic planning
systematic way of setting direction for success
strategic planning process
1. Pre-planning state
2. Environmental Scan
3. Formulate Strategy
4. Implement Strategy
5. Evaluate Strategy & adjust
1. pre-planning stage
sets the stage, reduces errors in planning, ensures commitment from leaders
Decide on:
-time frame
-planning tools for environmental scan
uses strengths of a business for competitive advantage
direction business will take and what it will achieve
specific description of steps taken to achieve goals
2. Environmental Scan
a. internal
b. external
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
Statistical Models
quantitative analyzes to id trends e.g. turnover rates or buying habits
SWOT Analysis
As related to plan:
*stengths-internal support
*weakness-internal obstacles
*opportunity-external support
*threat-external obstacles
PEST Analysis
-regulations & situations
-econ.strentgh,unemployment rate,inflation,fiscal policy
-demographics:target market
-cost and advances
Porter's 5 factor analysis
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
3. Formulate strategy
-vision statement
-mission statement
-corporate values statement
-corporate goals
*SMART model