Management Flashcards
(38 cards)
What are organizational capabilities
Organizational capabilities are the processes, routines, and systems that a company uses to manage its resources and operations. These capabilities include things like supply chain management, financial management, and marketing strategies. Organizational capabilities
can be an important source of competitive advantage, as they allow a company to operate more efficiently and effectively than its competitors.
Organizational capabilities can be classified as?
Organizational capability: a firm’s capacity to undertake a particular activity.
Organizational competence: an internal capability that a company performs better than other internal capabilities.
Core competence: a well-performed internal capability that is central to a company’s strategy and profitability.
Distinctive competence: a competitively valuable capability that a company performs better than its rivals**
The objectives of the organizational design.
The main objective is to devide labour into tasksd the, coordination of these tasks will complete the activity.
So the labour is divided and people
can specialize in each task they’re assigned to.
With this organization the company will have Effectiveness (doing the right thing) and Efficiency (doing things right).
What is organizational structure?
Organizational structure a system that outlines how certain activities are directed in order to achieve the goals of an organization.
- Functional structure
- Multi-divisional structure
- Matrix structure
What is enterprise
An enterprise is a community of people at the service of the society. It is a private entity but of public interest. It is oriented to satisfy mainly costumers, owners and employees.
Main stakeholders’ categeories.
Tell about each something.
Employees
Risk capital providers
Suppliers
Loan capital providers
Insurance companies
Customers
Competitors
State and public administration
Local community
Responsibilities of managers
Managers in company have several responsibilities that can be divided into two different
categories: the first one contains responsibilities based on the economic aspects such as
being able to create wealth. The second one contains the responsibilities that managers have towards the social and environmental impact that a company may have.
What is entrepreneurship.
Entrepreneurship is a process which leads an individual or a group to invest personal resources for the creation and management of a new organisation designed to pursue an
innovative opportunity.
Economic and non economic goods
Economic goods are products or services that are scarce, meaning they have limited availability and require resources to produce. Because they are not freely available, they have a price and people must make choices about how to allocate them.
Non-economic goods (also called free goods) are goods that are abundant in supply and do not require resources to produce. Since they are not scarce, they have no price and are available to everyone for free. (ex. air, sunlight, rainwater)
Corporate governance duties
The corporate governance has to make decisions such as how to distribute the incomes between the stakeholders, sets rules about how to execute some tasks to prevent risks, give efficient information, compete for limited resources and distribute equally the power to balance the risks.
Define economic activities
Economic activity is the activity of making, providing, purchasing, or selling goods or services. Actions that involve the production, distribution and consumption of economic
goods and services at all levels within a society. Economic activities take place in social bodies such as families, firms, public administration and so on.
Corporate activities:
Developing the company’s mission, vision, and values
Setting corporate objectives and goals
Allocating resources across business units
Managing the company’s finances and investments
Overseeing the company’s legal and regulatory compliance
Business activities:
Developing and implementing marketing strategies for a specific product or service
Managing the production and distribution of a specific product line
Developing and implementing a sales strategy for a specific region or market
Conducting market research and competitive analysis for a specific business unit
Developing and implementing new product development initiatives
Functional activities:
Managing the company’s payroll and employee benefits
Providing customer support and handling customer inquiries
Developing and maintaining the company’s website and other digital channels
Managing the company’s supply chain and logistics operations
Conducting financial analysis and reporting for a specific department or business unit
Describe the entrepreneurial formula.
The entrepreneurial formula is what determines the success of a company and includes all the activities and resources that are developed for a specific product that is located in a
specific market segment.
Advantages and disadvantages of the multidivisional structure.
Advantages:
Better focus on customer needs
Improved decision-making
More efficient resource allocation
Better performance measurement
Disadvantages:
Higher administrative costs
Potential for competition between divisions
Limited integration
Loss of centralization
Overall, the multidivisional structure can be an effective way to manage a large, complex organization, but it requires careful management to ensure that the advantages outweigh the disadvantages.
Advantages and disadvantages of the functional structure.
Advantages:
Specialization
Clear career paths
Economies of scale
Efficient communication
Expertise
Disadvantages:
Silos
Slow decision-making
Lack of focus on customers
Lack of flexibility
Communication barriers
It is important to note that while the functional structure may have its disadvantages, it can be effective in certain industries or organizations where a high degree of specialization is required, such as in manufacturing or technology companies.
Advantages and disadvantages of the matrix structure.
Advantages of the matrix structure:
Allows for efficient use of resources and expertise across different projects and functions.
Facilitates cross-functional communication and collaboration.
Can lead to faster decision-making as different perspectives are taken into account.
Provides employees with diverse experiences and opportunities to develop new skills.
Disadvantages of the matrix structure:
Can lead to conflicts over priorities, resources, and responsibilities.
Requires a high level of coordination and communication, which can be time-consuming and
expensive.
May result in a lack of accountability and confusion over who is responsible for specific tasks
or projects.
Can create a complex and confusing reporting structure, which can be demotivating for
employees.
Management systems
A management system is a structured framework that helps organizations plan, control, and monitor their operations effectively.
Management systems provide the mechanisms of communication, decision-making and control that allow an organization to operate and develop. These systems are the primary means through which organizations solve the basic problems of achieving both coordination and cooperation.
The role of culture in companies
Culture in companies comprise the belief, values and behavioural norms of the company that influence how employees think and behave. The culture in companies is a difficult phenomenon; they are embedded with national cultures and incorporate elements of social
and professional cultures. A key problem is that cultures take a long time to develop and cannot easily be changed.
Describe the role and main characteristics of financial systems
Financial planning and control system relate to the budgeting activities and to financial targets. Two types of budgets are set: the capital expenditure budget and operating budget.
The first one is the money you need in order to make investments. The latter regards the required money in order to run a company.
What is macro enviroment?
A company’s macro-environment refers to the external factors and forces that can impact its operations, performance, and strategic decisions. These factors are beyond the control of the company but can have a significant influence on its success or failure.
Some of the key elements of a company’s macro-environment include:
(Explain each)
Economical factors
Sociocultural factors
Political and legal factors
Technological factors
Enviromental factors
What is the concept of economies?
An economy encompasses all activities related to production, consumption, and trade of goods and services in an area. An economy can be applied to everyone from individuals to entities such as corporations and governments.
