Summary
Summary of Chapter 6
- Course
- Business Management 113
- Institution
- Stellenbosch University (SUN)
Summary of Chapter 6
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CHAPTER 6DEFINITIONS
WHAT IS MANAGEMENT? MANAGEMENT
The process of
Management is the process of coordinating people and other coordinating people
resources to achieve the goals of an organization. and other resources
to achieve the goals
Material resources: Tangible, physical resources an of an organization.
organization uses.
Human resources: Perhaps the most important resource of any
organization.
Financial resources: Funds than an organization uses to meet
its obligations to investors and creditors.
Information: External environmental conditions – including the
economy, consumer markets, technology – are all changing so
rapidly that if a business does not adapt it probably will not
survive.
PLANNING
BASIC MANAGEMENT FUNCTIONS Establishing
organizational goals
and deciding how to
At any given time, managers may engage in a number of functions
accomplish them.
simultaneously. However, each function tends to lead naturally to
others. How well managers perform these key functions determines
MISSION
whether a business is successful.
A statement of the
PLANNING basic purpose that
Planning is establishing organizational goals and deciding how to makes that
accomplish them. It is often referred to as the “first” management organization different
function because all other functions depend on planning. from others.
, An organization’s mission is a statement of the basic purpose that makes that
organization different from others.
Strategic Planning Process DEFINITIONS
The strategic planning process involves establishing an
organization’s major goals and objectives and allocating resources to STRATEGIC
achieve them. Top management is responsible for strategic planning, PLANNING
although customers, products, competitors, and company resources PROCESS
are some of the factors that are analyzed in the strategic planning Involves establishing an
process. organization’s major
goals and objectives
and allocating resources
to achieve them.
Establishing goals and objectives GOAL
A goal is an end result that an organization is expected to achieve
over a one- to ten- year period. An objective is a specific statement An end result that an
detailing what the organization intends to accomplish over a shorter organization is expected
period of time. Goals and objectives can deal with a variety of factors. to achieve over a one-
to ten- year period.
Goals are set at every level of an organization. Every member of an
OBJECTIVE
organization has a set of goals that he or she hopes to achieve.
A specific statement
The goals developed for these different levels must be consistent. detailing what the
However, it is likely that some conflict will arise. As part of goal organization intends to
setting, the manager who is responsible for both departments must accomplish over a
shorter period of time.
achieve some sort of balance between conflicting goals. This
balancing process is called optimization.
SWOT ANALYSIS
The identification and
evaluation of a form’s
SWOT Analysis strengths, weaknesses,
SWOT Analysis is the identification and evaluation of a form’s opportunities, and
threats.
strengths, weaknesses, opportunities, and threats. Strengths and
weaknesses are internal factors that affect a company’s capabilities.
CORE
Strengths refer to a firm’s favorable characteristics and core
COMPETENCIES
competencies.
Approaches and
Core competencies are approaches and processes that a company processes that a
performs well that may give it an advantage over its competitors. company performs well
These core competencies may help the firm attract financial and that may give it an
advantage over its
human resources and be more capable of producing products that competitors.
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