MGT 3013 Ronald Anderson - Exam 1
Questions and Answers 100% Pass
Organization - ✔✔A group of people who work together to achieve some specific
purpose
Management - ✔✔1. Pursuing goals Efficiently and Effectively
2. Integrating the work of people
3. Planning, organizing, leading, and controlling the organization's resources
Efficiency - ✔✔"the means" - the means of attaining an organization's goals
-use resources wisely and cost-effectively
Effectiveness - ✔✔"the ends" - achieve results, make decisions, and successfully carry
them out to achieve an organization's goals.
Multiplier effect - ✔✔Adding value that is multiplied throughout an organization that
is greater than the contribution of one person alone.
The 4 Principle Functions of Management - ✔✔POLC
Planning
Brittie Donald, All Rights Reserved © 2025 1
,Organizing
Leading
Controlling
Planning - ✔✔setting goals and deciding how to achieve them
Organizing - ✔✔arranging tasks, people and other resources to accomplish the work
Leading - ✔✔motivating, directing, and influencing people to work hard to achieve
goals
Controlling - ✔✔monitoring performance, comparing it with goals, and taking
corrective action as needed.
Competitive Advantage - ✔✔the ability to produce outcomes more EFFECTIVELY than
competitors
1. responsive to customers
2. innovation
3. quality
4. efficiency
2 Types of Differentiation - ✔✔1. Preference for the firms output
2. Cost advantage
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,Preference for the Firm's Output - ✔✔Value added - people choose the firm's output
over others/people are willing to pay more/premium
Cost Advantage - ✔✔Lower Price - Lower COGS
*Just because a firm can lower their price, does NOT mean that they will -- markets are
the only thing putting pressure on prices.
Economies of Scale - ✔✔[Efficiency] put downward pressure on costs as output
increases (bulk buying)
Economies of Scope - ✔✔[Efficiency] reduced cost because of shared activities (similar
packaging sizes for cigarettes and mac & cheese - 1 delivery man - 1 dolly - shared
activity)
Brand Name Recognition - ✔✔[Effectiveness] Association between brand and
something positive (Celebrity spokesperson, etc.)
Brand Loyalty - ✔✔[Effectiveness] the desire to pay more for the same product
(Switching costs)
Switching Costs - ✔✔costs that make customers reluctant to switch to another product
or service
Supply Channel - ✔✔[Efficiency & Effectiveness] Raw resources to end users
(integrated supply channel - downward pressure on costs OR flexible supply channel)
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, Integrated Supply Chain - ✔✔all the activities that organizations undertake to deliver
value to the customer, such as working with suppliers and distribution through
convenient channels
Flexible Supply Chain - ✔✔Components of a supply system are produced in different
parts of the world then brought together to meet consumer needs, allowing companies
to choose from where they attain parts to produce goods.
Ability to Innovate - ✔✔taking a product [Effectiveness] or a process [Efficiency] and
creating new cash flow from that
-Innovating products increase prices
-Innovating processes decreases costs
Other examples of differentiation - ✔✔-Unique, Specialized, and Valuable Assets
-" operational technologies
-" relationships
Cash Flow - ✔✔the total amount of money being transferred into and out of a business,
especially as affecting liquidity.
Capital - ✔✔Financing (Loans), Equity (Stocks/Ownership), Retained Earnings
(Previous year's profits)
-the purpose of a capital investment is to increase cash flows
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Questions and Answers 100% Pass
Organization - ✔✔A group of people who work together to achieve some specific
purpose
Management - ✔✔1. Pursuing goals Efficiently and Effectively
2. Integrating the work of people
3. Planning, organizing, leading, and controlling the organization's resources
Efficiency - ✔✔"the means" - the means of attaining an organization's goals
-use resources wisely and cost-effectively
Effectiveness - ✔✔"the ends" - achieve results, make decisions, and successfully carry
them out to achieve an organization's goals.
Multiplier effect - ✔✔Adding value that is multiplied throughout an organization that
is greater than the contribution of one person alone.
The 4 Principle Functions of Management - ✔✔POLC
Planning
Brittie Donald, All Rights Reserved © 2025 1
,Organizing
Leading
Controlling
Planning - ✔✔setting goals and deciding how to achieve them
Organizing - ✔✔arranging tasks, people and other resources to accomplish the work
Leading - ✔✔motivating, directing, and influencing people to work hard to achieve
goals
Controlling - ✔✔monitoring performance, comparing it with goals, and taking
corrective action as needed.
Competitive Advantage - ✔✔the ability to produce outcomes more EFFECTIVELY than
competitors
1. responsive to customers
2. innovation
3. quality
4. efficiency
2 Types of Differentiation - ✔✔1. Preference for the firms output
2. Cost advantage
Brittie Donald, All Rights Reserved © 2025 2
,Preference for the Firm's Output - ✔✔Value added - people choose the firm's output
over others/people are willing to pay more/premium
Cost Advantage - ✔✔Lower Price - Lower COGS
*Just because a firm can lower their price, does NOT mean that they will -- markets are
the only thing putting pressure on prices.
Economies of Scale - ✔✔[Efficiency] put downward pressure on costs as output
increases (bulk buying)
Economies of Scope - ✔✔[Efficiency] reduced cost because of shared activities (similar
packaging sizes for cigarettes and mac & cheese - 1 delivery man - 1 dolly - shared
activity)
Brand Name Recognition - ✔✔[Effectiveness] Association between brand and
something positive (Celebrity spokesperson, etc.)
Brand Loyalty - ✔✔[Effectiveness] the desire to pay more for the same product
(Switching costs)
Switching Costs - ✔✔costs that make customers reluctant to switch to another product
or service
Supply Channel - ✔✔[Efficiency & Effectiveness] Raw resources to end users
(integrated supply channel - downward pressure on costs OR flexible supply channel)
Brittie Donald, All Rights Reserved © 2025 3
, Integrated Supply Chain - ✔✔all the activities that organizations undertake to deliver
value to the customer, such as working with suppliers and distribution through
convenient channels
Flexible Supply Chain - ✔✔Components of a supply system are produced in different
parts of the world then brought together to meet consumer needs, allowing companies
to choose from where they attain parts to produce goods.
Ability to Innovate - ✔✔taking a product [Effectiveness] or a process [Efficiency] and
creating new cash flow from that
-Innovating products increase prices
-Innovating processes decreases costs
Other examples of differentiation - ✔✔-Unique, Specialized, and Valuable Assets
-" operational technologies
-" relationships
Cash Flow - ✔✔the total amount of money being transferred into and out of a business,
especially as affecting liquidity.
Capital - ✔✔Financing (Loans), Equity (Stocks/Ownership), Retained Earnings
(Previous year's profits)
-the purpose of a capital investment is to increase cash flows
Brittie Donald, All Rights Reserved © 2025 4
