Summary Business essentials

A snapshot of the summary - Business essentials Author: Ronald J Ebert, Ricky W Griffin ISBN: 9780132664028

• 5 Business Management

• 5.1 The Management Process

• What are the three main components of planning?

  
  It begins when managers determine the firm’s goals. Next, they develop a comprehensive strategy for achieving those goals. After a strategy is developed, they design tactical and operational plans for implementing the strategy.

• 5.4 Strategic Management Setting Goals and Formulating Strategy

• What is a Intermediate Goal

  
  Goal set for a period of one to five years into the future.

• 5.5 Contingency Planning and Crisis Management

• What is Crisis Management?

  
  An organization’s methods for dealing with emergencies.
• What is Contingency Planning?

  
  Identifying aspects of a business or its environment that might entail changes in strategyc.
• What is a Strategic Goal goal 

  
  A goal derived directly from a firm’s mission statement

• 6 Organising the Business

• 6.2 The Building Blocks of Organisational Structure

• What are the steps to developing structure in a business?

  
  1.Specialization - Determining who will do what
  2 Departmentalization - Determining how people performing certain tasks can best
  be grouped together
  3 Establishment of a Decision-Making Hierarchy - Deciding who will be empowered to make which decisions and who will have authority over others
• What is a Proffit Center?

  
  A separate company unit responsible for its own costs and profits.
• What is a Functional Departmentalisation?

  
  Dividing an organization according to groups’ functions or activities.
• What is a Customer Departmentalization

  
  Dividing an organization to offer products and meet needs for identifiable customer groups. 
• What is a Geographic Departmentalisation?

  
  Dividing an organization according to the areas of the country or the world served by a business.