Valerio, Cyrus Steven E.

BSMA-2A

Risk Capital- Is capital that cannot be recovered if a company

Fails and goes bankrupt. Fasdas Internal Operating Environment- Analyze the organization
Inte internal operating environment to identify the strength and
Shareholder Value- We mean the returns that shareholder earnAdasds weaknesses.
from purchasing shares in a company.
Sadsa Mission- Mission Statement. Definition: A sentence describing
a
Profitability- profitability of a company is by the return that it company's function, markets and competitive advantages; a
Makes on the capital invested in the enterprise. short written statement of your business goals and philosophies.

Profit Growth- profit growth of a company can be measured by Customer oriented business- focuses on giving satisfaction to
the increase in net profit over time. their customer.

Competitive Advantage- A Company with a competitive advan- Product oriented business- focuses on the characteristics of
tage over its rival when its profitability is greater than thethe products sold and the market served.
average profitability and profit growth of other companies
competing for the same customer. Business- it can be defined by giving satisfaction to customer
by giving what they need by distinctive competencies.
Sustained Competitive Advantage- when its strategies enable it to
maintain above-average profitability for a number of years. Vision- lays out what company desired future state: it
rt articulates, often in bold terms, what the company would like
Business Model- is a manager’s conception of how the set to of
ac achieve.
strategies his company pursues should mesh together into
a congruent whole, enabling the company to gain a competitive Values- the values of a company state how manager and
advantage and achieve superior profitability and growth. Employees should conduct themselves, how they should do
b business, and what kind of organization they should build to
General Manager- are responsible for the overall performance help a company achieve its mission.
of the organization or for one of its major self- contained division.
Goal- is a precise and measurable desired future state that a
Functional Manager- are responsible for a particular business co company attempts to realize.
function or operation.
Functional Level Strategies- are directed at improving the
R&D- Research and Development effectiveness of operations within a company, such as
man manufacturing, marketing, materials management, product
Multidivisional Company- Is a company that competes in a development and customer service.
Several different businesses and has created a separate, self-
contained division to manage each. Business Level Strategies- encompass the business’s overall
competitive theme, the way it positions itself in marketplace
CEO- CEO is the principal general manager. Chief Executive to gain a competitive advantage.
Officer
Global Strategies- address how to expand operations outside
Business Unit- is a self-contained division(with its owns function the home country to grow and prosper in a world where
For example Finance, purchasing, production and marketing competitive advantage is determined at a global level.
Departments) that provides a product or service for a particular
market. Corporate Level Strategies- answer primary question: what
business would we be in to maximize the long- run
Corporate Mission- a company mission describes what the profitability and profit growth of the organization.
company do.

Major Corporate Goal- is to maximize the returns that share-

holder get from holding shares in the company.

External Competitive Environment- Analyze the organization

external competitive environment to identify the opportunities
and threats