INTRODUCTION OF CONTROLLING benchmarks, which are the standards of excellence

against which to measure and compare.

Controlling - It’s the process of monitoring,
comparing, and correcting work performance. Employee theft is defined as any unauthorized
taking of company property by employees for their
Control process - is a three-step process of
personal use.
measuring actual performance, com- paring actual
performance against a standard, and taking service profit chain is the service sequence from
managerial action to correct deviations or to address employees to customers to profit.
inadequate standards.
Corporate governance, the system used to govern
immediate corrective action, which corrects a corporation so that the interests of corporate
problems at once to get performance back on track, owners are protected,
basic corrective action, which looks at how and
why performance deviated before correcting the
MANAGING OPERATION
source of deviation.
operations management- The term refers to the
Performance is all of these things.
transformation process that converts resources into
organizational performance—the accumulated finished goods and services.
results of all the organization’s work activities.
manufacturing organizations produce physical
Productivity is the amount of goods or services goods.
produced divided by the inputs needed to generate
service organizations that produce nonphysical
that output.
outputs in the form of services.
Organizational effectiveness is a measure of how
Value is defined as the performance characteristics,
appropriate organizational goals are and how well
features, and attributes, and any other aspects of
those goals are being met.
goods and services for which customers are willing
feedforward control—prevents problems because to give up resources (usually money).
it takes place before the actual activity.
value chain is the entire series of organizational
Concurrent control, as its name implies, takes work activities that add value at each step from raw
place while a work activity is in progress materials to finished product.
management by walking around, which is when a Value chain management is the process of
manager is in the work area interacting directly with managing the sequence of activities and information
employees. along the entire value chain.
feedback control, the control takes place after the organizational processes—that is, the ways that
activity is done. organizational work is done.
balanced scorecard approach is a way to evaluate intellectual property—that is, proprietary
organizational performance from more than just the information that’s critical to an organization’s
financial perspective. efficient and effective functioning and
competitiveness.
management information system (MIS) is a
system used to provide managers with needed ISO 9000 is a series of international quality
information on a regular basis. management standards established by the
International Organization for Standardization
benchmarking, which is the search for the best
(www.iso.org),
practices among competitors or noncompetitors that
lead to their superior performance.
Six Sigma is a quality program designed to reduce service is an activity or benefit that is intangible
defects to help lower costs, save time, and improve and does not take on a physical form, such as an
customer satisfaction. airplane trip or advice from an attorney.
Mass customization provides consumers with a Price is the amount of money consumers pay to buy
product when, where, and how they want it. a product.
lean organization, which is an organization that cost-based pricing, the list price is determined by
understands what customers want, adding a markup percentage to a product’s cost.
value-based pricing, the list price is determined by
estimating what consumers are willing to pay for a
MANAGING THE MARKETING FUNCTION
product and then backing off a bit to provide a
Marketing is, in essence, taking a view of the cushion.
whole business organization and its ultimate
price-quality attribution when looking at the price
objectives
of a product.
target market is the limited group of individuals or
Promotion refers to the activities the firm takes to
businesses that it tries to appeal to.
communicate the merits of its product to its target
Market segmentation is important because a new market.
firm typically has only enough resources to target
Advertising is making people aware of a product in
one market segment, at least initially
hopes of persuading them to buy it.
niche market is a place within a market segment
Public relations refer to efforts to establish and
that represents a narrow group of customers with
maintain a company’s image with the public.
similar interests
Social media consists primarily of blogging and
product attribute map, which illustrates a firm’s
establishing a presence and connecting with
positioning strategy relative to its major rivals.
customers and others through social networking
tagline is catchy phrase that’s used consistently in a sites like Facebook or Twitter
company’s literature, advertisements, stationery,
Social plugins are tools that Web sites can use to
and even invoices
provide its users with personalized and social
brand is the set of attributes—positive or experiences.
negative—that people associate with a company
viral marketing, which facilitates and encourages
brand management, which is a program used to people to pass along a marketing message about a
protect the image and value of an organization’s particular product
brand in consumers’ minds
Guerrilla marketing is a low-budget approach to
Brand equity is the term that denotes C It is marketing that relies on ingenuity, cleverness, and
important for firms to understand brand equity and surprise rather than traditional techniques.
how to use it to create value.
distribution channel is the route a product takes
marketing mix is the set of controllable, tactical from the place it is made to the customer who is the
marketing tools that it uses to produce the response end user
it wants in the target market.
Finance is the word used to describe the money
product, in the context of its marketing mix, is the resources available to governments, firms, or
good or service it offers to its target market individuals, and the management of these resources.
ESSAYS
Explain the role of operations management.

• Operations management is the

transformation process that converts
resources into finished goods and services.
Manufacturing organizations produced
physical goods. Service organizations pro-
duce nonphysical outputs in the form of
services. Productivity is a composite of
people and operations variables. A manager
should look for ways to successfully
integrate people into the overall operations
systems. Organizations must recognize the
crucial role that operations management
plays as part of their overall strategy in
achieving successful performance.
Define the nature and purpose of value chain
management.

• The value chain is the sequence of

organizational work activities that add value
at each step from raw materials to finished
product. Value chain management is the
process of managing the sequence of
activities and information along the entire
product chain. The goal of value chain
management is to create a value chain
strategy that meets and exceeds customers’
needs and desires and allows for full and
seamless integration among all members of
the chain. Value chain management provides
four main benefits: improved procurement,
improved logistics, improved product
development, and enhanced customer order
management.