Intro to Business Study Notes PDF

Chapter 1: The Canadian Business System ​ Business vs. Non-profit Businesses aim to make a profit by producing or selling products. ​ Example: A clothing store buys clothes from manufacturers and sells them to consumers at a higher price, earning a profit. ​ Non-profit organ...

Chapter 1: The Canadian Business System ​ Business vs. Non-profit Businesses aim to make a profit by producing or selling products. ​ Example: A clothing store buys clothes from manufacturers and sells them to consumers at a higher price, earning a profit. ​ Non-profit organizations provide goods and services without seeking profit. ​ Example: A charity raises money to provide food and shelter for the homeless. ​ ​ Government Interactions with Business Customers: The government buys goods and services from businesses, such as office supplies and construction services. ​ Competitor: The government may compete with businesses in some industries, such as mail delivery (Canada Post) or transportation (Via Rail). ​ Regulator: The government sets rules and regulations for businesses to follow, such as environmental protection laws or consumer safety standards. ​ Taxation Agent: The government collects taxes from businesses on their profits and payroll. ​ Provider of Incentives: The government offers incentives to businesses, such as grants or tax breaks, to encourage certain activities, like innovation or job creation. ​ Provider of Essential Services: The government provides essential services, such as education, healthcare, and infrastructure, that businesses rely on. ​ ​ Canadian Market Economy: Based on private enterprise with little government restriction. ​ Individuals can own property, have freedom of choice, freedom to earn profits, and freedom to compete. ​ Degrees of Competition ​ ​ Perfect Competition: Many firms, identical products, no barriers to entry. ​ Example: Agricultural markets, where many farmers sell the same produce. ​ Monopolistic Competition: Many firms, differentiated products, low barriers to entry. ​ Example: Restaurants, where many businesses offer similar but differentiated food and dining experiences. ​ Oligopoly: Few firms, high barriers to entry. ​ Example: Telecommunications industry, with a few major players like Rogers, Bell, and Telus. ​ Monopoly: One firm, no competition. ​ Example: A utility company with an exclusive right to provide electricity in a certain region. Chapter 6: Managing the Business Enterprise ​ Management Process “P.L.O.C” ​ ​ Planning: Setting organizational goals and deciding how best to achieve them. ​ Example: Developing a five-year strategic plan for a company, outlining its growth objectives and strategies. ​ Organizing: Arranging resources and activities to implement the plan. ​ Example: Creating an organizational structure, assigning tasks to different departments, and allocating resources accordingly. ​ Leading: Guiding and motivating employees to meet objectives. ​ Example: Inspiring a sales team to achieve their targets, providing them with the support and guidance needed. ​ Controlling: Monitoring performance and making necessary adjustments. ​ Example: Comparing actual sales results to the sales targets set in the plan, and identifying areas for improvement. ​ Management Skills: “TS.HR.CS.DM” ​ Technical Skills: Knowledge and ability to perform specific tasks. ​ Example: A software developer's coding skills. ​ Human Relations Skills: Ability to work effectively with and through people. ​ Example: A manager's ability to motivate and communicate effectively with their team. ​ Conceptual Skills: Ability to see the big picture and think strategically. ​ Example: A CEO's ability to analyze market trends and develop a long-term vision for the company. ​ Time Management Skills: Ability to use time effectively and prioritize tasks. ​ Example: A manager's ability to delegate tasks effectively and avoid wasting time on unimportant activities. ​ Decision-Making Skills: Ability to identify, evaluate, and choose among alternatives. ​ Example: A manager's ability to analyze a problem, consider different solutions, and select the best course of action. ​ ​ Setting Goals and Formulating Strategy ​ Strategic Management: Aligning the organization with its external environment to achieve its goals. ​ Mission Statement: Defines the organization's purpose and how it will achieve it. ​ Example: A company's mission statement may be "to provide high-quality, affordable products that improve people's lives." ​ SWOT Analysis: Assessing the organization's internal strengths and weaknesses, and external opportunities and threats. ​ Example: A SWOT analysis for a coffee shop might identify its strength as a prime location, a weakness as limited seating capacity, an opportunity as growing demand for plant-based milk alternatives, and a threat as rising coffee bean prices. ​ Hierarchy of Plans: Strategic, tactical, and operational plans. ​ Example: Strategic plan: Open five new stores in the next three years; Tactical plan: Secure financing, find suitable locations, and hire and train staff; Operational plan: Design store layout, purchase equipment, and develop a marketing campaign for each new store.  ​ Levels of Strategies: Corporate-level, business-level, and functional-level strategies. ​ Example: Corporate-level: Diversify into new markets; Business-level: Differentiate our product by offering premium features; Functional-level: Improve our manufacturing process to reduce costs. ​ Contingency Planning and Crisis Management ​ Contingency Planning: Identifying potential changes and developing responses. ​ Example: A retailer develops a contingency plan in case of a supply chain disruption, identifying alternative suppliers and adjusting inventory levels. ​ Crisis Management: Dealing with emergencies. ​ Example: A company activates its crisis management plan after a product recall, communicating with customers, managing media relations, and coordinating the recall process. ​ ​ Corporate CultureDefinition: A firm's "personality," including shared values, beliefs, and norms. ​ Importance: It can direct employee efforts and influence decision-making. ​ Communication: Ensuring employees understand and maintain the culture through mission statements, training, and rewards. [15, 16] ​ ​ Porter 5 Forces: identifies the five main sources of competitive pressure in an industry ​ - Competitive Rivalry, Supplier Power, Buyer Power, Threat of Substitution, and Threat of New Entry. Chapter 2: Managing in a Global Environment ​ Organizational Boundaries and Environments ​ External Environment: Factors outside an organization's control, such as competition, economic conditions, and government regulations. ​ Organizational Boundaries: Separates the organization from its environment. ​ Example: The physical walls of a factory, or the legal framework under which a company operates, define its boundaries. ​ ​ Dimensions of the External Environment “E.T.P.S.B.G” ​ Economic Environment: The state of the economy, including factors like growth, inflation, and unemployment. [18, 19] ​ Scenario: A recession can reduce consumer spending, impacting businesses that sell non-essential goods and services. ​ Technological Environment: Advancements in technology, such as the internet, automation, and artificial intelligence. [18, 20] ​ Scenario: A new technology disrupts an industry, forcing existing businesses to adapt or face obsolescence. Example: The rise of streaming services impacting traditional television and movie studios.  ​ Political-Legal Environment: Government policies and regulations, such as tax laws, trade agreements, and environmental regulations. ​ Scenario: A change in government policy, like a trade war, can create barriers to international trade and impact businesses that rely on global supply chains. ​ Socio-Cultural Environment: Social and cultural trends, such as changing demographics, values, and lifestyles. ​ Scenario: An aging population creates opportunities for businesses specializing in senior care products and services. ​ Business Environment: Competitive forces within an industry, including rivalry among existing firms, the threat of new entrants, and the bargaining power of suppliers and buyers. [18, 21] ​ Global Environment: International factors, such as globalization, international trade, and currency exchange rates. ​ Scenario: A global pandemic disrupts supply chains and travel, impacting businesses worldwide. ​ Emerging Challenges and Opportunities ​ Focus on Core Competencies: Businesses are becoming leaner and more specialized. ​ Example: A company outsources its IT support to focus on its core competency of product design. ​ Outsourcing: Using external suppliers for certain business processes. ​ Social Media: Growing importance in communication and marketing. ​ Business Process Management: Shift towards process-oriented organizations. ​ Example: A company reorganizes its departments to focus on key business processes, such as customer service or product development, improving efficiency and customer satisfaction. ​ Redrawing Corporate Boundaries ​ Mergers and Acquisitions: Combining companies for growth or diversification. ​ Example: A technology company acquires a smaller start-up to gain access to its innovative technology. ​ Divestitures and Spinoffs: Selling or separating parts of the business. ​ Example: A conglomerate decides to spin off one of its divisions into a separate, publicly traded company to focus on its core businesses. ​ Strategic Alliances: Temporary partnerships between companies. ​ Example: Two companies collaborate on a research and development project to develop a new product. Chapter 5: Managing in a Global Environment (continued) ​ Contemporary Global Economy ​ Globalization: Integration of markets globally. ​ Imports: Products purchased in Canada made in other countries. ​ Exports: Canadian products sold in other countries. ​ Major World Marketplaces: North America, Europe, Pacific/Asia. [25, 26] ​ Emerging Markets: South Korea, Thailand, Indonesia, Ukraine, etc. ​ Forms of Competitive AdvantageAbsolute Advantage: A country's ability to produce a good or service more efficiently than any other country. ​ Example: Saudi Arabia's absolute advantage in oil production due to its vast reserves and low production costs. ​ Comparative Advantage: A country's ability to produce a good or service at a lower opportunity cost than another country. ​ Scenario: Even if a country can produce both cars and textiles efficiently, it might have a comparative advantage in textile production if it can produce textiles at a lower opportunity cost (what it gives up in terms of car production) compared to another country. This encourages specialization and trade, benefiting both countries. ​ Theory of National Competitive Advantage: “FDRS” ​ Factor Conditions: Availability of resources, such as skilled labor, infrastructure, and natural resources. ​ Demand Conditions: Sophisticated domestic demand for the product or service. ​ Related and Supporting Industries: Presence of competitive supplier industries. ​ Strategies, Structure, and Rivalries: Domestic competition that drives innovation and efficiency. ​ ​ Balance of Trade ​ Trade Surplus: Exports exceeding imports. ​ Trade Deficit: Imports exceeding exports. ​ Balance of Payments: Flow of money into and out of a country. ​ Foreign Exchange Rate: Ratio of one currency to another. ​ ​ International Business ​ Exporter: Sells products to foreign markets. ​ Importer: Buys products from foreign markets. ​ International Firm: Operates in multiple countries but primarily focused on domestic market. ​ Multinational Firm: Operates and invests in multiple countries with a global focus. ​ ​ International Organizational Structures: ​ Independent Agent: Represents the exporter's interests in a foreign market. ​ Licensing and Franchising: Granting rights to manufacture or sell products in a foreign market. ​ Branch Office: Establishing a physical presence in a foreign market. ​ Strategic Alliance: Partnering with a foreign company. [32, 33] ​ Foreign Direct Investment: Investing in tangible assets in a foreign market. ​ ​ Barriers to International Trade  ​ Social and Cultural Differences: Language, customs, values, and religious beliefs can create challenges. [33, 34] ​ Economic Differences: Variations in economic development, currency exchange rates, and government policies can create challenges. ​ Legal and Political Differences: Trade restrictions, tariffs, quotas, and political instability can hinder trade. [34, 35] ​ Overcoming Barriers to Trade GATT (General Agreement on Tariffs and Trade): Reduced trade barriers among member countries. ​ WTO (World Trade Organization): Regulates international trade and settles disputes. ​ Regional Trade Agreements:NAFTA (North American Free Trade Agreement) / USMCA (United States-Mexico-Canada Agreement): Eliminated tariffs between Canada, the US, and Mexico. [36-38] ​ CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership): Trade agreement among 11 Pacific Rim countries. ​ CETA (Canada-European Union Comprehensive Economic and Trade Agreement): Eliminated most tariffs between Canada and the EU. Chapter 4: Managing Entrepreneurially and Options for Organizing a Business ​ Small Business, New Venture Creation, and EntrepreneurshipSmall Business: Owner-managed business with fewer than 100 employees. ​ New Venture: Recently formed organization selling goods or services. ​ Entrepreneurship: Identifying and capitalizing on a marketplace opportunity. ​ Entrepreneur: Person who seizes opportunities. ​ Intrapreneur: Creates something new within an existing large organization. ​ Role of Small Business ​ - 98% of all employer businesses in Canada. ​ - Major job creators. ​ - Leaders in innovation. ​ Entrepreneurial Process ​ Identifying Opportunities: Generating and screening ideas. [42, 43] ​ Developing the Opportunity: Creating a business plan. ​ Accessing Resources: Bootstrapping, debt financing, equity financing. ​ Scenario: An entrepreneur needs to secure funding for their new venture. They can bootstrap by using personal savings and minimizing expenses, seek debt financing through loans from banks or suppliers, or pursue equity financing by selling ownership shares to investors. ​ Assessing the Fit: Ensuring the entrepreneur, opportunity, and resources align. ​ ​ Alternative Approaches  ​ Buying an Existing Business: Advantages: Established customer base, proven business model; Disadvantages: Potential hidden problems, inheriting previous owner's mistakes. ​ Taking over a Family Business: Advantages: Existing trust and relationships, understanding of the business; Disadvantages: Family conflicts, potential resistance to change. [45, 46] ​ Buying a Franchise: Advantages: Proven business model, brand recognition, support from franchisor; Disadvantages: Franchise fees, limited autonomy, dependence on franchisor's success. [46-48] ​ ​ Forms of Business Organizations ​ Sole Proprietorship: Owned and run by one person. [49-51] ​ Scenario: A freelance writer operating under their own name is a sole proprietor. ​ Advantages: Freedom, simplicity, low start-up costs, tax benefits. ​ Disadvantages: Unlimited liability, lack of continuity, difficulty raising money. ​ Partnership: Two or more people share ownership. [52-54] ​ Scenario: Two friends opening a restaurant together form a partnership. ​ Advantages: Larger talent and money pool, ease of formation, tax benefits. ​ Disadvantages: Unlimited liability, lack of continuity, potential conflict. ​ Types of Partnerships: [54-56] ​ General Partnership: All partners have unlimited liability. ​ Limited Partnership: Limited partners have limited liability. ​ Silent Partner: Known to the public but no active role. ​ Secret Partner: Unknown to the public but active role. ​ Nominal Partner: Lends their name but not involved. ​ Dormant Partner: Neither known nor active. ​ Corporation: Separate legal entity from its owners. [57-59] ​ Scenario: A technology company incorporated to raise capital and limit liability. ​ Advantages: Limited liability, continuity, professional management, easier to raise money. [60, 61] ​ Disadvantages: Initial cost, paperwork, double taxation. ​ ​ Types of Corporations: ​ Public Corporation: Shares widely traded on a stock exchange. ​ Private Corporation: Shares held by a few shareholders. ​ Co-operative: Owned and controlled by its members. [49, 62] ​ Scenario: A group of farmers forming a co-operative to market their products collectively. ​ Advantages: Democratic control, shared benefits. ​ Disadvantages: Potential for disagreements, limited growth potential. Chapter 7: Organizing the Business Enterprise ​ Organizational Structure Definition: Specification of jobs and their relationships. ​ Determinants: Purpose, size, technology, environment. ​ Building Blocks of Organizational StructureSpecialization: Identifying specific jobs and assigning people to them. ​ Example: In a car manufacturing plant, tasks are divided among specialized workers, such as welding, painting, and assembly. ​ Departmentalization: Grouping jobs into logical units. [65, 66] ​ Types of Departmentalization: [66, 67] ​ Functional: Based on functions, like marketing, finance, and production. ​ Customer: Based on customer groups, like retail, wholesale, and government. ​ Product: Based on product lines, like cars, trucks, and SUVs. ​ Geographic: Based on location, like North America, Europe, and Asia. ​ Process: Based on production processes, like cutting, sewing, and finishing. ​ Decision-Making Hierarchy ​ Chain of Command: Flow of decision-making power. ​ Responsibility: Duty to perform a task. ​ Authority: Power to make decisions. ​ Delegation: Assigning tasks and authority to subordinates. ​ Accountability: Obligation to complete tasks and justify outcomes. ​ ​ Centralization vs. Decentralization: ​ Centralization: Top managers make most decisions. ​ Decentralization: Lower-level managers have more decision-making authority. ​ Span of Control: Number of subordinates a manager supervises. ​ Wide Span: Many subordinates. ​ Narrow Span: Few subordinates. ​ ​ Forms of Authority ​ Line Authority: Direct chain of command. ​ Staff Authority: Advise and support line managers. ​ Committee/Team Authority: Granted to committees or work teams. ​ Basic Organizational Structures ​ Functional Structure: Based on job functions. [71, 72] ​ Divisional Structure: Based on product lines, customer groups, or geographic regions. [72, 73] ​ Project Organization: Temporary structure for specific projects. [72, 73] ​ Matrix Organization: Dual reporting relationships, with employees reporting to both a functional manager and a project manager. ​ International Organization: Designed for international operations. ​ ​ New Organizational Structures ​ Boundaryless Organization: Breaks down internal barriers and external boundaries.  ​ Team Organization: Relies heavily on teamwork. ​ Virtual Organization: Uses technology to connect geographically dispersed employees. [74, 75] ​ Learning Organization: Continuously adapts and improves. ​ Informal Organization: Informal communication network. Chapter 8: Managing Human Resources and Intro to Labour Relations ​ Human Resource Management (HRM) ​ Job Analysis: Studying job duties and required qualifications. ​ Forecasting HR Demand and Supply: Determining future HR needs. [76, 77] ​ Recruiting: Attracting qualified job applicants. ​ Selecting: Choosing the best candidate. [77, 78] ​ Training and Development: Enhancing employee skills and knowledge. [78, 79] ​ On-the-job Training: Learning while performing the job. ​ Off-the-job Training: Training conducted away from the workplace. ​ Performance Appraisal: Evaluating employee performance. ​ Compensation and Benefits: Rewarding employees for their work. [80, 81] ​ Basic Compensation: Wages and salaries. ​ Performance-Based Compensation: Bonuses, commissions, profit-sharing. ​ Benefits: Health insurance, retirement plans, paid time off. ​ Legal Context of HRM: Complying with laws and regulations related to employment. ​ Equal Employment Opportunity: Protecting employees from discrimination. ​ Employment Equity Act: Promoting employment opportunities for designated groups. ​ Comparable Worth: Ensuring equal pay for work of equal value. ​ Sexual Harassment: Preventing and addressing unwelcome sexual conduct. ​ Health and Safety: Providing a safe and healthy work environment. ​ ​ New Challenges in the Changing Workplace ​ Managing Workforce Diversity: Creating an inclusive workplace for diverse employees. ​ Managing Knowledge Workers: Attracting, retaining, and developing skilled employees. ​ Managing Contingent Workers: Effectively managing part-time, temporary, and contract workers. [85, 86] ​ ​ Organized Labour ​ Labour Unions: Organizations representing workers' interests. ​ Collective Bargaining: Negotiating employment terms and conditions between unions and management. ​ ​ Union-Management Relations ​ Union Organizing Strategy: Steps involved in forming a union. ​ Union Security: Levels of union membership required in a workplace.  ​ Closed Shop: Only union members can be hired. ​ Union Shop: All employees must join the union. ​ Agency Shop: Employees must pay dues but don't have to join. ​ Open Shop: Employees can choose whether to join the union. ​ Collective Bargaining Process: Negotiation, ratification, and potential impasses. [88, 89] ​ Collective Agreement Issues: Compensation, benefits, job security, working conditions. ​ Impasse Resolution: Third-party intervention (conciliation, mediation, arbitration). Chapter 9: Leadership: Part A Motivating and Satisfying Employees ​ Employee Behavior ​ Performance Behaviors: Actions that contribute to organizational goals. ​ Example: Meeting sales targets, completing projects on time. ​ Organizational Citizenship: Going above and beyond job duties. ​ Example: Helping colleagues, volunteering for extra tasks. ​ Counterproductive Behaviors: Actions that harm the organization. ​ Example: Theft, absenteeism, sabotage. ​ ​ Individual Differences ​ Personality: Stable traits that influence behavior. ​ Emotional Intelligence (EQ): Ability to understand and manage emotions. ​ Attitudes: Beliefs and feelings about ideas, situations, and people. ​ Job Satisfaction: Positive attitudes towards one's job. ​ Organizational Commitment: Identification with the organization and its mission. ​ ​ Matching People and Jobs ​ Psychological Contract: Unwritten expectations between employees and employers. ​ Example: Employees expect fair compensation and opportunities for growth, while employers expect hard work and loyalty. ​ Person-Job Fit: Matching employee skills and personality to job requirements. [93, 94] ​ ​ Motivation Theories ​ Classical Theory: Money is the primary motivator. ​ Scientific Management: Analyze jobs to improve efficiency. ​ Hawthorne Effect: Productivity increases when workers receive special attention. ​ ​ Human Resources Model (Theory X and Theory Y): [95, 96] ​ Theory X: Assumes employees dislike work and need strict control. ​ Theory Y: Assumes employees are motivated and responsible. ​ Maslow's Hierarchy of Needs: Needs are arranged in a hierarchy, with lower-level needs (physiological and safety) needing to be met before higher-level needs (social, esteem, self-actualization). [96, 97] ​  ​ Hertzberg's Two-Factor Theory: ​ Motivating Factors: Lead to satisfaction, such as achievement and recognition. ​ Hygiene Factors: Prevent dissatisfaction, such as pay and working conditions. ​ Expectancy Theory: Motivation depends on the perceived value of rewards and the belief that effort will lead to rewards. ​ Equity Theory: Individuals compare their input-output ratio to that of others and strive for fairness. [98, 99] ​ ​ Strategies for Enhancing Motivation ​ Reinforcement Theory: Using rewards and punishments to shape behavior. [99, 100] ​ Goal-Setting Theory: Setting specific, challenging goals increases motivation. ​ Example: SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound). ​ Management by Objectives (MBO): Collaborative goal setting between managers and employees. ​ Participative Management and Empowerment: Involving employees in decision-making. [101, 102] ​ Example: Quality circles, suggestion boxes. ​ Team Management: Using teams to accomplish tasks. ​ Job Enrichment: Expanding job responsibilities to increase motivation. ​ Job Redesign: Restructuring jobs to improve employee-job fit. ​ ​ Modified Work Schedules: [103-106] ​ Flextime: Flexible work hours. ​ Compressed Workweek: Longer workdays but fewer days per week. ​ Telecommuting: Working from home or a remote location. ​ Workshare Programs (Job Sharing): Two people sharing one full-time position. Chapter 9: Leadership: Part B Leading Employees ​ Leadership Definition: Motivating others to meet goals. ​ ​ Approaches to Leadership ​ Trait Approach: Identifying leadership traits. ​ Behavioral Approach: Analyzing leader behaviors. ​ Task-Oriented: Focus on getting things done. ​ Employee-Oriented: Focus on building relationships. ​ Situational Approach: Adapting leadership style to the situation. ​ ​ Leadership Styles ​ Autocratic: Leader makes decisions without input from subordinates. ​ Democratic: Leader involves subordinates in decision-making. ​ Free-Rein: Leader gives subordinates a lot of autonomy. ​ ​ Recent Trends in Leadership  ​ Transactional Leadership: Focus on maintaining stability and the status quo. ​ Transformational Leadership: Inspiring and motivating change. ​ Charismatic Leadership: Using personal charm and vision to influence followers. ​ Cross-Cultural Leadership: Adapting leadership to different cultures. ​ Strategic Leadership: Leading change and adapting to the environment. ​ Ethical Leadership: Leading with integrity and values. ​ Virtual Leadership: Leading remote teams using technology. Chapter 10: Part A Operations Management ​ Operations Management ​ Definition: Methods and technologies used in production. ​ Service Operations: Producing intangible services. ​ Goods Production: Producing tangible products. ​ ​ Creating Value Through Production ​ Utility: Adding value to products. [112, 113] ​ Time Utility: Making products available when needed. ​ Place Utility: Making products available where needed. ​ Ownership (Possession) Utility: Facilitating ownership transfer. ​ Form Utility: Transforming raw materials into finished goods. ​ ​ Operations ProcessesGoods-Producing Processes: ​ Classified by type of transformation, technology, and customer contact. ​ Service-Producing Processes: ​ Customer involvement can affect the process. ​ Low-contact vs. high-contact systems. ​ ​ Operations Planning ​ Capacity Planning: Determining production capacity. [114, 115] ​ Layout Planning: Arranging equipment and work areas. [115, 116] ​ Process Layout: Grouped by function. ​ Cellular Layout: Similar products follow similar paths. ​ Product Layout: Assembly lines for one product type. ​ Scheduling: Determining production timing. [116, 117] ​ Gantt Charts: Visual representation of project schedules. ​ PERT Charts: Critical path method for project management. ​ ​ Operations Control ​ Materials Management: Managing the flow of materials. ​ Inventory Control: Managing inventory levels. ​ Quality Control: Ensuring product quality. [118-121] ​ Just-in-Time (JIT): Delivering materials when needed.  ​ Materials Requirements Planning (MRP): Computerized system for planning material needs. ​ Manufacturing Resource Planning (MRP II): Integrates all aspects of production planning. Chapter 10: Part B Productivity and Quality ​ Productivity-Quality Connection ​ Quality: Fitness for use, meeting customer needs. ​ Productivity: Ratio of outputs to inputs. ​ ​ Total Quality Management (TQM) Definition: Comprehensive approach to quality improvement. ​ Principles: Customer focus, continuous improvement, employee involvement, leadership commitment. ​ ​ Quality Assurance Tools ​ Competitive Product Analysis: Studying competitors' products. ​ Value-Added Analysis: Identifying and eliminating wasteful activities. [122, 123] ​ Statistical Process Control (SPC): Monitoring production processes for variations. ​ Quality/Cost Studies: Analyzing costs associated with quality issues. ​ Quality-Improvement Teams: Cross-functional teams focused on improving quality. ​ Benchmarking: Comparing performance to industry leaders. [124, 125] ​ ISO 9000 and ISO 14000: International quality and environmental management standards. ​ Business Process Re-Engineering: Redesigning business processes. Chapter 11: Accounting ​ Accounting Definition: Collecting, analyzing, and communicating financial information. ​ Bookkeeping: Recording accounting transactions. ​ Accounting Information System (AIS): Organized procedure for managing financial information. ​ Users of Accounting Information: Managers, employees, investors, creditors, government agencies. ​ ​ Types of Accounting ​ Financial Accounting: Provides information to external parties. ​ Managerial Accounting: Provides information to internal managers for decision-making. ​ Accounting Professionals ​ Chartered Professional Accountant (CPA): Unification of accounting designations. ​ Private Accountants: Work for specific companies. ​ ​ Accounting Standards ​ International Financial Reporting Standards (IFRS): Global accounting standards. ​ Accounting Standards for Private Enterprises (ASPE): Canadian standards for private businesses. ​ Accounting Equation: Assets = Liabilities + Owners' Equity. ​ Financial StatementsBalance Sheet: Shows a company's financial position at a specific point in time, listing assets, liabilities, and owners' equity. [131-134] ​ Assets:Current Assets: Cash, accounts receivable, inventory.