SMG SM 131 Study Guide - Summer 2018, Comprehensive Midterm Notes - Fiduciary, Capitalism, Business Ethics
12 Oct 2018
School
Department
Course
Professor
SMG SM 131
MIDTERM EXAM
STUDY GUIDE
Fall 2018
Lecture 1:
The purpose of business:
To create sustainable, long-term value for stakeholders
o Stakeholders: Owners, employees, customers, communities, suppliers
Essential Ingredients to drive performance:
Compelling Strategy
Effective Execution
Flexibility
Talented, Aligned, Engaged People
Top Management Structure:
Board of Directors: Governance & Oversight
o Duty of Loyalty – Represent Interest of Owners
o Duty of Care – Understand the company
o Exercise Business Judgment - Use Experience
o Hire & Fire CEO – Most Important Rule
Responsibilities
o Runs the Company
o Establishes the Strategy
o Role Model for the Culture
o Sets financial and non - financial goals
o Achieves Results
o Develops Leadership Talent
CEO Role in Ethical Decision-Making
o Sets the tine
o Walks the talk
o Drives accountability for integrity
Senior Management Structure: Chairman/President & CEO (C-Suite)
The Line
o Face the Customer
o P&L Responsibility
The Staff
o Support Business Operations
Line Management Roles: Face the Customer
Business Managers/Group Presidents
o Create Strategy, Grow the Business (Revenue & profits), Achieve
Budgets
Sales
o Set pricing and mix, retain the gain customers
Supply Chain Management
o Obtains materials, build the product, warehouse, ship
Service
o Address customer concerns
Staff Management Roles: Support Business Operations
Quality/Process Improvement
find more resources at oneclass.com
find more resources at oneclass.com
Corporate Marketing
Research & Development
Finance/Business Development
Legal/Compliance/Risk Management
Regulatory Affairs
Information Technology
Human Resources
Communications
Measuring Performance: Financial
Profit & Loss (Income) Statement
o Revenues/Costs/Incomes/Taxes & Interest
Balance Sheets
o Assets/Liabilities/Shareholders Equity
Cash Flow Statement
o Sources and uses of cash
Measuring Performance: Non-Financial
Employee Satisfaction
o Great Place to Work/Voluntary Attrition
Customer Satisfaction
o Market Share/Growth/Churn
Corporate Reputation
o Corporate Social Responsibility (CSR)
o Ethics
Corporate Social Responsibility: Who Decides?
Recommendation by CEO
Board of Directors Discussion
Board of Directors Approval
Types of Businesses:
For profit
o Raw materials/commodities
o Manufacturing – consumer, industrial products
o Services – information technology, distribution
o Advisory services – consulting, banking
Not for profit
o Arts and culture
o Education
o Health
o Charitable Foundations
Globalization
Adds complexity
Financial
o Foreign Currency Exchange Rates
o Hedging
o Country Risk
Cultural
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
To create sustainable, long-term value for stakeholders: stakeholders: owners, employees, customers, communities, suppliers. Ceo role in ethical decision-making: sets the tine, walks the talk, drives accountability for integrity, face the customer, p&l responsibility. The (cid:498)staff(cid:499) (cid:498)line(cid:499) management roles: face the customer. Business managers/group presidents: support business operations, create strategy, grow the business (revenue & profits), achieve. Sales: set pricing and mix, retain the gain customers. Supply chain management: obtains materials, build the product, warehouse, ship. Service: address customer concerns (cid:498)staff(cid:499) management roles: support business operations. Profit & loss (income) statement: revenues/costs/incomes/taxes & interest. Cash flow statement: sources and uses of cash. Employee satisfaction: great place to work/voluntary attrition. Corporate reputation: corporate social responsibility (csr, ethics. For profit: raw materials/commodities, manufacturing consumer, industrial products, services information technology, distribution, advisory services consulting, banking. Not for profit: arts and culture, education, health, charitable foundations. Financial: foreign currency exchange rates, hedging, country risk.
