COMMERCE 2BC3 Chapter Notes - Chapter 2: Total Quality Management, Strategic Management, Strategic Planning

• School: McMaster University
• Department: Commerce
• Course: COMMERCE 2BC3
• Professor: Aaron Schat

Document Summary

Lo 1: describe the components of a business model. A business model is a story of how the firm will create value for customers. Contribution margin difference between what you charge for your product and the variable cost of your product. If you charge for each widget your contribution margin is ( price - variable cost) Gross margin is the total amount of margin you made and is calculated as the number of units sold times the contribution margin. Lo 2: describe the components of the strategic management process and its linkage to hrm. Lo 3: discuss the role of hrm function in strategy formulation and its linkages to the process. Two-way linkage: allows for consideration of hr issues during strategy formulation process, occurs in three sequential steps, 1. Strategic planning team informs the hrm function of the various strategies the company is considering: 2.