Business Administration
Business Administration University of St. Gallen
Business Administration University of St. Gallen
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Flashcards
Definition: Benefit
a good's ability to satisfy a specific need of the consumer. (chop wood for need for warmth)
Definition: Value
the expression of a product's importance for satisfying the subjective needs.
(chops more wood than needed --> makes woodpile --> econ. value)
Definition: system
A set of organized elements with qualities linked by relations.
(different cocoa producers, milk producers, means of transport)
Definition: Transaction costs
Costs that arise from using the market.
Definition: Companies and other productive organizations
Socio-technical systems that provide goods and services for third parties.
(purpose oriented --> create added value --> arises from difference between input and output)
Aspects: Management cycle according to Fayol
- Preview and planning (analysis, basis for organization)
- Organization
- Management
- Coordination
- Controlling
Definition: Management
A reflective shaping practice.
(necessary to reach common views, agree on goals, achieve conviction about necessity of measures)
(communicate, reflect, convinve, stabilize, intervene and make decisions in a stream of events)
Definition: Environment
What is included?
The possibility and survival space pertinent to an organization.
Included:
- economic context (supplier relations, demand, markets)
- social/political context (local culture, political interests, legal framework)
- natural context (natural resources, location, etc.)
Definition: Model
What does a management model do?
A simplified image of a complex reality.
It lets management become a "criticizable and optimizable reality". Offers structures and perspectives as an orientation in management practice --> strengthens ability to act.
Definition: SGMM
A formal orientation model with the main objective of offering company decision-makers an orientation in their work, and a letter case for the meaningful.
Definition: Stakeholders
Organization-relevant representatives of different environmental spheres or discourses.
(employees, suppliers, customers)
--> calculate the value of a company from their perspective --> from their potential added value shares. --> value of future dividends
Definition: Coopetition
A situation where a company cooperates with another even though they compete on other markets at the same time.
Definition: Sustainable development
A development that meets the needs of the present without compromising the ability of future generations to meet their own needs.
--> Not using more resources than it generates or which can be regenerated.
Definition: Social responsible leadership
Sustainable management with the objective of a balance between the value demands of internal and external stakeholders in the context of an increasingly global and networked stakeholder society.
(effect of a company's actions on different environmental areas are recognized, assessed and lead to action consequences)
Aspects: The three horizons of meaning of management
- normative
- strategic
- operational
Description: Normative management
Concerns itself with questions of long-term corporate objectives, values and norms that should inform actions in a company and with the underlying objective, which it is supposed to achieve in society and in the economy.
--> responsible: owner/board of directors
--> Objective: viability/ securing long-term legitimacy of enterprise
Description: Strategic management
Shaped at intersection of board of directors and the executive board.
--> objective: securing and developing profit potentials
--->form of resources: inside-out perspective
--->form of external sources: exploitation of external resources (--> positive image of well-established brand)
Description: Operational Management
The actors on every level of a company deal with it.
--> objective: economic viability or securing a sufficient added value. --> success/liquidity/cash flow
--> tools: budget planning and process management (production/application of tools)
Definition: Company
A purposeful, socio-technical system that produces goods and services for third parties for money.
-->people produce goods/services to create added value. --> compensate stakeholders
--> without business processes: company doesn't create added value
--> business processes as indirect main purpose
Definition: Process
A collection of activities that takes one or more kinds of input and creates an output that is of value to the customer.
--> input derived directly from supplier/wholesale market
--> output delievered to customers/markets
--> important not to miss important developments and changed
Description: Normative level as structure of the contributions to business processes' objectives.
Raises question: What meaning do the goods and services of a company have for society?
If no longer seen as meaningful: company loses legitimacy+stakeholders
Consideration of: primary added value (goods/services rendered, produced foods,...) and additional added value (organization's image contribution to a location's image)
Description: Strategic level as structure of the contributions to business processes' objectives.
About contributions of business processes to developing resources, such as generating new competencies (internal resources) or opening and securing market positions, in the form of image in target markets (external resource).
Description: Operational level as structure of the contributions to business processes' objectives.
Concerned with objectives that manifest themselves in fiscal (finanziell) parameters.
--> basis for company's profit = creation of customer value --> leads to customer's willingness to play --> profitt
Definition: Customer Value
The relative perceived value of a product or service compared to the relative perceived cost of a product or service from the customer's perspective.
Description: Customer benefit
Results from juxtaposition of needs or expectations and the meeting of those expectations through a product or service.
--> High quality if individual expectations are met/exceeded --> leads to customer satisfaction.
Description: Customer satisfaction
Assessed by the customer by comparing it to the expected satisfaction provided by alternative offers.
Description: Customer cost
The material cost (purchase price) and the intangible cost (waiting time).
Description: Behavioral outcomes
Come from the relative perceived customer benefit. Include willingness to pay and other behaviors and actions like recommendations, customer loyalty, repeat purchases, readiness to complain.
Description: How to calculate the added value of a company.
Deducting the cost for the input factors from the total customers' sales revenue.
--> added value --> deduce company value
Definition: Added value
The difference beteween the value of the input and the value of the output of business processes.
-> Net added value determined by deducing necessary deoreciations.
--> sum of all added value of every company in a country = gross domestic product
--> maximize willingness to pay --> produce effectively
Description: Effectiveness
Doing the right things.
Description: Efficiency
Doing the things right.
Description: performance processes
Objective of providing the actual products of a company.
--> supported by customer processes and innovation processes
--> can be depicted as added-value chains. --> every stage creates added value independently
Definition: Product
A performance that is geared for satisfying needs and produces a benefit for customers.
Description: Outsourcing
Stages of the added-value chain can be split off --> performed by other companies.
Description: Transaction interfaces
Between the stages of added-value chain where products or services are committed from one technically defined processing stage to the next.
Description: Transaction interfaces
Between the stages of added-value chain where products or services are committed from one technically defined processing stage to the next.
Description: Services
Are performed on or for an object.
--> in the added-value chain of a service chain --> performance stages take the place of processing stages.
Description: Objective of customer processes
The long-term creation of customer value. -->not about making short-term profit.
--> long-term satisfaction of customer needs in a longer-term customer process the sense of relational marketing.
--> divided into: branding or reputation processes, customer acquisition and customer retention.
--> in customer's point of view: customer process becomes a buying cycle.
Definition: reputation or branding process (customer process)
An overlaying process radiating to the public at large via the entire buying cycle with its contact, evaluation, purchase, use and repeat-purchase stages.
-->image or brand effect and tactical sales effect --> keep the brand attractive for important customers at all time