Learning Outcomes
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Mission
A organizations purpose or reason for being Top managements responsibility to develop a mission with clear measurable objectives. States the unique advantage the firm offers to customers that differentiates it from its competitors. Is relevant to all stakeholders interests.
Copyright 2003 by South-Western/Thomson Learning. All rights reserved. 24
Exhibit 21
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Exhibit 22
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Systems Process
The method used to transform inputs into outputs. Process components Inputs Transformation Outputs Feedback
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Exhibit 23
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Customer value
The purchasing benefits used by customers to determine whether or not to buy a product.
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Exhibit 24
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Organizational Culture
Learning the Organizations Culture
Heroes Stories Ceremonies Slogans Symbols
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Exhibit 25
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Weak Cultures
Have employees who do not behave as expected and do not agree with the shared values.
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Learning Organizations
Organizations with cultures that value sharing knowledge to adapt to the changing environment and continuously improve. Strong adaptive cultures are created through leadership and open sharing of knowledge and information.
Copyright 2003 by South-Western/Thomson Learning. All rights reserved. 217
Competition
Competitors business practices often have to be duplicated to maintain customer value.
Suppliers
Poor quality suppliers mean poor quality products.
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Shareholders
The board of directors monitors management and provide direction for the organization.
Society
Businesses are pressured by societal forces to behave in an acceptable manner.
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Economy
Economic activity has both short and long-term effects on an organizations ability to provide customer value.
Government
Policies, rules and regulations affect what, how much, and how business is conducted.
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Exhibit 26
Copyright 2003 by South-Western/Thomson Learning. All rights reserved. 222
Business Ethics
Simple Guides to Ethical Behavior
Golden Rule Do unto others as you would want them to do unto you. Four-Way Test Is it the truth? Is it fair to all concerned? Will it build goodwill and better friendship? Will it be beneficial to all concerned? Stakeholders Approach to Ethics Creating a win-win situation for all stakeholders so that everyone benefits from the decision.
Copyright 2003 by South-Western/Thomson Learning. All rights reserved. 223
Exhibit 27
Copyright 2003 by South-Western/Thomson Learning. All rights reserved. 225
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Reengineering
The radical redesign of work in a systematic manner to combine fragmented tasks into streamlined processes that save time and money by requiring fewer workers and far fewer managers.
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