MGM101H5 Chapter 3: MGM101 Ch.3
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MGM101H5 Full Course Notes
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Document Summary
Commercial endeavors: the markets the organization serves, the products/services it offers, and the needs it professes to meet in the marketplace. Employee interaction: the value-creating skills an organization"s employees bring to the marketplace. Assets: infrastructure and resource base of the organization. Capital: the money needed to support asset-based expenditures, meet operating cash requirements, and invest in the development of new products/services. Managerial acumen: the foresight, drive, knowledge, ability, decision-making competency, and ingenuity of the organization"s key individuals (owners and top-level managers) Business model/system: operational platform or structure that a business uses to generate revenue and profit. Assets + labour + capital + managerial acumen = business model composition. Competitive advantage: an advantage an organization has over its competitors that enable it to generate more sales, achieve greater margins, achieve a lower cost base, or attract and retain more customers. Fundamental objectives of business managers: short-term profit, long-term growth and profitability, social and environmental responsibility.
