Terms
An organization’s mission is formalized in its mission statement, a document that states the purpose of the organization and its reason for existing
Mission
Absolute advantage
The ability of an individual or group to carry out a particular economic activity more efficiently than another individual or group
Expert Power
Derived from an individual's extensive knowledge in one or more areas
Consensus ________
Consensus estimate
Living in a wealthy country with all the basics covered means one is experiencing a high degree of ________ __ ______
Standard of Living
The value in the present of a sum of money, in contrast to some future value it will have when it has been invested at compound interest
Present Value
Modeling for business analytics
The process of quantifying production with the goal of creating the most seamless, efficient process
Referent Power
Derived from an individual's personal charisma and the respect and/or admiration the individual inspires
_______ statement
Mission statement
Revenue: $10K
Cost: $5K
Profit
Number of units that can complete the system per unit of time
Flow Rate
Planning
begins by anticipating potential problems or opportunities the organization may encounter
Derived from an individual's position in an organization
Legitimate Power
Bottle____
Bottleneck
Purchasing a cottage with the goal of renting it on AirB&B
Investment
An economic system in which a capitalist market economy exists alongside an authoritarian government
Authoritarian Capitalism
Comparative advantage
The ability of one country, individual, or entity to produce goods or services at a lower opportunity cost than another
Coercive Power
Derived from an individual's ability to threaten negative outcomes
Strategic ________
Strategic planning
Buying pasta from Italy because its the best in the world
Imports
Recognizing and reacting to international business opportunities, being aware of threats from foreign competitors in all markets, and effectively using international distribution networks to obtain raw materials and move finished products to the customer
Global Vision
Loss
A company whose costs are greater than revenues shows
Derived from an individual's control over rewards
Reward Power
______________ behavior
Organizational behavior
One landscaper is able to cut 2 acres of grass per hour
Productivity