Strategic Management (Ch 3)

Front 1

accounting

Back 1

Accounting is the organizational function concerned with recording financial transactions, paying bills, collecting revenue from customers, and producing financial statements.

Front 2

balanced scorecard

Back 2

A balanced scorecard is a business measurement tool utilized by managers to track information in four key areas: financial results, customer results, key internal processes, and how people are hired and trained to achieve organizational goals

Front 3

business process outsource (RPO)

Back 3

is the practice of engaging a third-party provider to assume operational control of and responsibility for a particular business function

Front 4

centralized organization

Back 4

In a centralized organization, decision-making authority is held at senior levels or is concentrated at corporate headquarters

Front 5

decentralized organization

Back 5

In a decentralized organization, decision-making authority is held by the managers who are closest to the operating activities

Front 6

fiduciary responsibility

Back 6

Fiduciary responsibility is a legal obligation placed upon executives to make decisions that benefit the organization or a pension trust fund instead of making decisions that benefit them personally

Front 7

finance

Back 7

Finance is the organizational function responsible for obtaining credit to meet the organization’s needs, granting credit to customers, investing and managing cash for maximum return on investment, and establishing banking relationships for the organization

Front 8

Financial Accounting Standards Board (FASB)

Back 8

the board that establishes standards of financial accounting and reporting intended to regular and guide financial accounting practices. Such standards arc essential to the efficient functioning of the economy because investors, creditors, auditors, and others rely on credible, transparent, and comparable financial information.

Front 9

goal

Back 9

A goal is a statement that describes a desired achievement and keeps employees focused on what is important to the organization

Front 10

high-context culture

Back 10

people rely on nonverbal clues and relationship to discern meaning.

Front 11

HR audit

Back 11

identifies practice areas in an organization that are working well and those that may be out of compliance with legal requirements or need to be realigned with changes in strategic direction.

Front 12

human capital management plan HCMP)

Back 12

a document that describes the tactical goals and action plans HR will execute to align its operations during a specified period with the corporate goals and strategy for the same period.

Front 13

information technology lIT)

Back 13

IT is the organizational function responsible for managing systems such as voice mail, computer networks, software, websites, and the Internet, and the data collected by these systems

Front 14

inside director

Back 14

An inside director is a member of an organization’s board of directors with management responsibilities, such as a CEO or CFO)

Front 15

Just-in-time (JITI inventory

Back 15

designed to reduce inventory costs by the frequent purchase of small amounts of supplies

Front 16

line functions

Back 16

an organization are concerned with making decisions about operating needs, such as production and sales

Front 17

Lobbying

Back 17

an activity designed to influence new laws and regulations

Front 18

long-range plans

Back 18

business strategies, goals, or objectives projected to he achieved in three to five years

Front 19

low-context culture

Back 19

people rely on what is said to discern what is meant

Front 20

Marketing

Back 20

an organizational function that promotes and distributes products in the marketplace, provides support for the sales staff, conducts research to design products that customers will he interested in purchasing, and determines the appropriate pricing for new product

Front 21

mid-range plans

Back 21

business strategies, goals, or objectives projected to be achieved in one to three years.

Front 22

Objective

Back 22

a specific description of practical steps taken to achieve business goals

Front 23

operations

Back 23

This function encompasses all the organizational activities necessary to produce the goods or services of the business, such as product design, capacity, production lay out, schedules, quality, inventory, technology, and cost control

Front 24

outside director

Back 24

a member of the board of directors who is not employed by the corporation and does not have operational responsibilities

Front 25

production

Back 25

the organizational function responsible for creating the product or service offered to customers. Traditionally, this means manufactured goods, but with the growth of service and information businesses, it has come to include some services as well

Front 26

Sales

Back 26

This function is responsible for transferring the product or service from the business to the customer

Front 27

short-range plans

Back 27

business strategies, goals, or objectives projected to the achieved in one year or less.

Front 28

span of control

Back 28

the number of employees that one manager can directly supervise

Front 29

staff functions

Back 29

not involved with making operating decisions but are involved with advising line managers

Front 30

strategic planning

Back 30

a dynamic, systematic way of setting the direction for an organization and developing strategies, tactics, and operational plans that ensure its success

Front 31

strategy

Back 31

a plan for generating revenue that describes how a business will use its strengths to obtain a competitive advantage in the marketplace