Digital Management 1

A business focuses on creating products that meet people's needs while aiming to generate profit.

A product can be a tangible good like a car or a smartphone, or an intangible service like a haircut or insurance.

Profit is the difference between the cost of making and selling a product and the price the customer pays. It's essential for a business's survival and growth.

Nonprofit organizations are different from businesses as their primary goal is not to generate profit. Instead, they focus on social missions and public benefit.

Management involves the process of planning, organizing, leading, and controlling to efficiently achieve the company's goals through its employees.

Marketing is about creating and delivering goods and services that satisfy consumers' needs and wants.

Finance involves overseeing the financial resources of a business, including obtaining and managing funds, making investments, and ensuring financial stability.

Stakeholders are individuals or groups who have vested interests in the success and outcomes of a business, such as owners, employees, customers, and the community.

A situation where a country can produce a particular good or service more efficiently and at a lower cost than other countries.

The practice of transferring manufacturing and other tasks to countries where labor and supplies are less expensive.

When a country is the only or most efficient producer of a specific resource or product.

The buying, selling, and trading of goods and services across national boundaries.

The ethical issues related to high unemployment, such as protests and widening gap between rich and poor.

The practice of companies donating to local and national charitable organizations as a form of community responsibility.

Ethical concerns regarding factory closures due to job losses and economic hardship.

The practice of employers setting unreasonable hiring standards that make it difficult for applicants to qualify.

A lack of funds needed to operate a business.

A detailed written document that outlines a business's goals, strategies, and financial projections.

A structured approach to managing a business, including planning, organizing, leading, and controlling.

A situation where a business struggles to adapt to rapid growth, often due to lack of experience or resources.

Money provided by the owner or investors to start and operate a business.

A legal structure where one person owns and manages the entire business.

A legal structure where two or more individuals share ownership and management responsibilities.

A legal structure where the business is a separate entity from its owners, offering limited liability and the ability to raise capital through stock sales.

An agreement where one company (licensor) allows another (licensee) to use its brands, patents, or production processes for a fee.

A form of licensing where a company (franchiser) provides a franchisee with its brand, operating methods, and advertising in exchange for a fee and agreement to follow specific business rules.

When a company hires a foreign company to manufacture its products according to its specifications. The final product carries the original company's name.

Relocation of a business process (or a subsidiary) to another country.

Two companies from different countries partnering to achieve a shared business goal. Often involves sharing costs and running operations.

A partnership formed to create competitive advantage on a global scale.

A strategy where companies adapt their products, promotions, and distribution to the specific cultural, technological, and regional differences of each market.

Giving employees the power to make decisions and take responsibility for their work.

A systematic process to make informed choices, involving recognizing the situation, exploring options, analyzing them, choosing the best one, putting it into action, and monitoring the results.

Identifying and clearly defining the problem or opportunity that needs a decision.

Generating a list of possible solutions to address the identified problem or opportunity.

Evaluating each option's feasibility, practicality, and alignment with the company's objectives.

Selecting the most suitable option based on analysis and risk assessment, considering potential tradeoffs.

Putting the chosen solution into action, involving appropriate resources and teams.

Monitoring the consequences of the implemented decision, evaluating its effectiveness, and making adjustments as needed.

Operations management (OM) involves planning, organizing, and controlling the transformation of resources (inputs) into goods or services (outputs) offered to customers. It encompasses all activities related to producing goods and services, ensuring efficiency and quality.

The transformation process is the core of operations management. It involves converting inputs (labor, materials, and energy) into outputs (goods, services, or ideas). This process is influenced by equipment, procedures, and technology.

Operations management is equally vital in service-based organizations, such as airlines, colleges, and nonprofits. These entities also transform inputs into outputs (services) tailored to meet specific customer needs.

Unlike tangible goods, services are intangible actions or performances delivered directly to customers. This creates a significant customer interaction component in most service operations.

The ideal service provider effectively combines high technology (modern tools and systems) with high touch (personalized and caring interactions). This balance ensures efficient service delivery while maintaining a strong customer connection.

Service operations face the challenge of managing intangible products that are often perishable (cannot be stored or saved). For example, if an airline flight isn't full, the unsold seats are lost.

Manufacturers and service providers differ in the nature and consumption of their products. Manufacturers produce tangible goods that can be stored and consumed later, while service providers deliver intangible actions or performances consumed immediately.

Operations managers use measurements to track the transformation process at various stages and compare them to established standards. This feedback allows for improvements in efficiency and product quality.