CLEP Principles of Management 1

110 111 cost leadership strategy strives to keep

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110. 111. Cost Leadership Strategy strives to keep operating costs low by being efficient and maintaining tight controls. A company utilizing such a strategy endeavors to manufacture a product that is already on the market more cost effectively. 112. 113. Differentiation Strategy strives to set its products apart from those of another company by setting itself up in the market as the company to always be the first one out with the latest and greatest product. 114. 115. CONCURRENT CONTROLS monitor performances while they are occurring to ensure that they are meeting standards. 116. 117. Liquidity Ratio demonstrates a company's ability to generate cash. 118. Activity Ratio measures how efficiently a company operates. 119. Profitability Ratio demonstrates a company's ability to generate profits. 120. Debt Ratio measures a company's ability to pay its debts. 121. Marketing Ratio measures market shares, sales quotas and profitability. 122. 123. Classifying is assuming something about someone because he or she is a member of a particular group. 124. Projection is the act of ascribing one's own ideas or emotions to another. 125. Selective perception is focusing on particular aspects of a situation that are consistent with one's own beliefs or values. 126. Pygmalion effect notion of self-fulfilling prophecy, whereby individuals will act accordingly with what another's expectations are. IE, a summer intern is aware that her manager thinks that she is lazy and she therefore acts accordingly 127. Self-serving bias error of perception which involves perceiving a situation in whatever way best suits the viewer. IE, an individual with a self-serving bias would likely take credit for a project if it results in success, but would not take credit for it if it resulted in failure.
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128. 129. Feedforward Controls are preliminary controls that aim to prevent problems with below-standard performance before they happen. Human resources and material resources such as capital, machinery or inventory can all be subject to feedforward controls. A standardized admissions exam prescreens applicants to ensure that they possess the skills necessary to meet with success at the university. 130. 131. According to Larry Greiner's organizational development theory , before an organization can evolve to the next stage of growth, there must be a crisis. The primary phase, the creativity phase , is dominated by an organization's founders and their focus on creating a product and a market for that product. As the organization grows, the founders start to get overburdened with management responsibilities and begin to have leadership conflicts with employees. This crisis marks the beginning of the first revolutionary period. Direction phase
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