MGTA02H3 Chapter Notes - Chapter 1: Canadian Business, Value Chain
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MGTA02H3 Full Course Notes
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Working to accomplish a task: a business is an organized effort, formed for a purpose. Responsibility for defining purpose, a(cid:374)d setti(cid:374)g the dire(cid:272)tio(cid:374) lies (cid:449)ith the (cid:271)usi(cid:374)ess" leader. All business exists in order to satisfy customer needs and wants, and to make a profit: mission: the reason why a business exists, and the goals it is trying to accomplish. Usually expressed as a quantity or value of inputs: example, we want to sell 24,000 boxes of our product this month, we want each of our salesmen to make 20 sales call per month. The performance is then set to the standard: example, we sold 12,000 boxes, just half of our target. Revenue is only ,000: all of our salesmen are making 20 sales call per month, which is what we asked of them. Our sales are averaging . 4 million per month. If necessary, managers can take action to improve or correct performance, to bring it into line with the standard.
