BMGT 110 Study Guide - Final Guide: Moral Agency, Systems Development Life Cycle, Corporate Social Responsibility
SchoolUniversity of Maryland
DepartmentBusiness and Management
Course CodeBMGT 110
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BMGT Final Exam:
The Business Environments
Economic and Legal Environment:
oGovernment can help create a positive business environment through a variety of areas including:
Freedom of Ownership: allowing private ownership is a boost to the business environment.
Contract and Business Laws Being able to write and enforce contracts to minimizing risk.
The Business Environment:
oEconomic and Legal Environment
Currency: Creating and maintaining a tradable currency is vital for global trade.
Taxes and Regulation: Low taxes and less restrictive regulation attracts entrepreneurs and promotes
oTech is anything that increases business efficiency and productivity
Manufacturing tech: create complex products with high levels of quality
Computer Hardware/Software/Network: All information technologies associated with business creation and
Symbologies: A computer/machine readable language, which expresses numbers and/or letters in a form,
which can be read easily automatically.
oMeeting/Exceeding Customer Expectations: Becoming more customer-driven
oIncreasing Speed of Delivery Response
oCorporate Restructuring: Changes in organization empowerment
oThe social environment is a distinctive economic organization of interacting people who share a geographical
region, a sense of common identity, and a common culture. In general this extends to such areas as mutual
interests, beliefs, and a common system of political authority.
Demography: study of human population with regard to its size, density, age, race, and gender.
Global Environment: global international competition and free trade are on the rise.
Macro- vs. microeconomics: Macro: overall unemployment, inflation, GDP; Micro: individual firms.
“Scholastics”: created economic dogma that was particularly concerned with property, justice in economic exchange,
money, and usury.
“School of Salamanca”: economic matters including “just price”, scarcity theory, and supply-and- demand.
“Mercantilists”: sought advantage for trade, merchant, joint-stock company; main goal is to increase nation-state
Free market Capitalism: Adam Smith. Problem with hunger, homelessness, and pollution.
Socialism: is a system where the government, rather than private individuals, owns and operates much of the basic
production and distribution, so (in theory) the benefits can be more evenly distributed among the people.
oHigher taxes, but more health insurance, income distribution, and other services
oBrain-drain: more talented/educated people leave the country for high wages.
Communism: gov. make all decisions. Shortages are common.
GDP: Gross Domestic Product: total value of goods & services produced by a country in a given year.
Unemployment rate: % of pop. over 16 who are unemployed and have tried to look for work within the last 4 weeks.
oInflation: rise in price results in a decline in the purchasing power of money.
oDeflation: occur during recession & is characterized by exceeding demand and prices declining.
oConsumer price index: A measure of the average prices paid for a market basket of about 400 goods and
services purchased by a typical US consumer in comparison to the average paid for the same basket in an
earlier base year.
oProducer price index: PPI measures price changes received by domestic producers of goods and services
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(sellers). More than 8,000 PPIs for individual products and groups of products are released each month.
oEconomic boom: a pd. of increased bus. activity.
oRecession: 2 or more consecutive quarters of decline in GDP.
oDepression: severe recession with deflation
Fiscal & monetary policy: gov. use it to keep inflation, recession, etc. in check.
oFiscal policy: use of gov. spending and taxation to try to influence the level of eco. activity.
Recession: more spending and less taxation
Inflation: increase taxation and/or cut spending to reduce demand
oMonetary Policy: used to influence interest inflation, and credit availability through change in supply or money
available in the eco.
Forms of business ownership:
Sole proprietorship: one person, no special taxes, unlimited liabilities, responsible for all debts and damages.
Partnership: 2 or more people
oLimited partnership: One or more partners are designated as general partners and have unlimited liability for
the debts of the firm, while the other partners are designated as limited partners and are only liable for their
own initial contribution.
oConventional: (C) taxed under the subsection C of the IRS code
oS: function like corporation, with major restrictions, but taxed like a sole proprietorship.
oLimited Liability Company: like a s, but does not have many of the same restrictions.
Merger: 2 firms join together into one (vertical, horizontal, or conglomerate.
Acquisition: 1 firm purchases another
Franchise: an organization that grants a license to a group to market their company’s good.
Cooperatives: memberships have some ownership in business.
Entrepreneurship: willingness to take risks to involve in starting a business.
oNeed to be: self-directed, self-nurturing, and action-oriented.
Micropreneurs: small, home-based bus.
Intrapreneurs: allow employees operate as entrepreneurs and use own creativity to improve bus.
SCORE, Small Business Development Centers, Chambers of Commerce.
Management and Organizations:
Leading: communication, vision, and accept to change
oAutocratic: dictatorial form of leadership. (little outside input)
oParticipative: opposite of autocratic. Staff members have a say in meetings
oFree-rein: employee empowerment and freedom
Planning: determine the best strategies and tactics
Leading: creating a vision and communicating, guiding, training
Controlling: rewards and correcting non-performance
oEstablish clear standards, monitor performance, evaluate results, and communicate results, corrective action.
Organizing: create conditions and systems and design organization structure
oOrganization chart: display relationship among business personnel.
Centralized vs. decentralized: authority can either be focused at the top or be delegated to lower level
Span of control: higher level control smaller groups of people.
“Tall” vs. “flat”: flat: few layers of management; tall: pyramid shape
Departmentalization: generally separated into separate units.
oOrganization models: function, level of staffs
oLine organization: has direct, two-way, top to bottom, lines of responsibility and communication. Line orgs
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have limited or no specialized support staff.
oMatrix organization: connections between divisions to help create enterprise synergies.
oCross-functional self-managed teams: (self-directed work groups): teams are made up of staff from different
departments. Teams make their own decisions
Vision: explain why organization exists and where it’s attempting to head.
Mission statement: outline and organization goals, and purposes.
Strategic planning: determine major goals
Tactical planning: developing detailed directives about who, what, and when.
Operational planning: establish standards and processes that will execute
Contingency planning: developing alternative courses to be deployed in the
event of changing circumstances.
oRestructuring: the basic, periodic, redesign of the organization model.
Change in the lines of authority and communication.
oReengineering: complete, radical, redesign with dramatic improvements as the goal. Open to more advanced
forms of organization in the minds of managers.
oLinking External Organization:
Extensive info. make it easier to swap data for sales, order status, quantities on hand.
Supply Chain Management:
Supply chain management: is managing every business activity across all business disciplines, from supplier to
customers in a way that doesn’t cause corporate difficulties or disconnects, save money, and doesn’t anger customers.
Logistics: management of the flow of goods or materials from point of origin to point of consumption, while
performing to customer requirements.
oInbound logistics: revolve around material management. (Anticipating material requirements, sourcing &
obtaining materials, introducing material into the organization, monitoring that status of materials as a current
oOutbound logistics: linked to customer service and marketing:
4 key to excellent customer service: time, communications, dependability, convenience.
Procurement: activities associated with the acquisition of materials: purchasing of materials, quality management,
vendor relationships, and coordination with other departments.
Just-in-time inventory: founded by W. Edwards Deming and Taiichi Ohno.
Materials are used until a pre-arranged order point of reached.
Communicate back to procurement, which places a short lead-time order.
Frequent, small shipments arrive just in time fore depleted materials.
Decrease inventory, but hard to forecast demand.
Materials requirement planning: production planning, inventory control and tracking, demand
analysis & forecasting, financial risks, general ledger reporting, work-in process tracking.
Channels of distribution:
oDistributor: markets or sells merchandise to retail rather than directly to consumers
oRetailers: purchase products for the purpose of reselling them to ultimate consumers.
Quick response/efficient consumer response:
oEfficient consumer response: extensively consumer driven and heavily dependent on information systems to
transmit demand data, especially point-of-sale.
Distribution requirements planning: determining product demand and using that info. throughout the supply chain.
Inventory control: raw material, work in progress and finished goods that are held by a company.
Warehousing: building used to receive and store goods and merchandise.
oConsolidation/break-bulk: making up full vehicle shipment or breaking shipments into smaller quantities.
oCustomer service support: having goods available to consumers.
oContingency protection and smoothing
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