9/6/23, 7:17 PM
BUSI 411 Key Terms Ch. 1 and 2
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BUSI 411 – Key Terms
Ch. 1 and 2
Goods: physical items produced by business organizations
Services: activities that provide some combination of time, location, form, and
psychological value.
Agility: the ability of an organization to respond quickly to demands or opportunities.
Craft Production: system in which highly skilled workers use simple, flexible tools to
produce small quantities of customized goods.
Division of Labor: the breaking up of a production process into small tasks, so that each
worker performs a small portion of the overall job.
E-Business: the use of electronic technology to facilitate business transactions.
E-Commerce: consumer-to-business transactions
Ethical Framework: a sequence of steps intended to guide thinking and subsequent
decision or action.
Ethics: a standard of behavior that guides how one should act in various situations.
Interchangeable Parts: parts of a product made to such precision that they do not have
to be custom fitted.
Lead Time: the time between ordering a good or service and receiving it.
Lean Systems: system that uses minimal amounts of resources to produce a high volume
of high-quality goods.
Mass Production: system in which low-skilled workers use specialized machinery to
produce high volumes of standardized goods.
Model: an abstraction of reality; a simplified representation of something.
Operations Management: the management of systems or processes that create goods
and /or provide services.
Outsourcing: buying goods or services instead of producing or providing them in-house.
Pareto Phenomenon: a few factors account for a high percentage of the occurrence of
some events.
Process: one or more actions that transform inputs into outputs.
Six Sigma: a process for reducing costs, improving quality, and increasing customer
satisfaction.
Supply Chain: a sequence of organizations – their facilities, functions, and activities –
that are involved in producing and delivering a product or service.
Sustainability: using resources in ways that do not harm ecological systems that support
human existence.
System: a set of interrelated parts that must work together.
Technology: the application of scientific discoveries to the development and
improvement of products and services and operations processes.
Value-Added: the difference between the cost of inputs and the value or price of outputs.
9/6/23, 7:17 PM
BUSI 411 Key Terms Ch. 1 and 2
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Chapter 2
Competitiveness: how effectively an organization meets the wants and needs of
customers relative to others that offer similar goods or services.
Core Competencies: the special attributes or abilities that give an organization a
competitive edge.
Environmental Scanning: the monitoring of events and trends that present threats or
opportunities for a company.
Goals: provide detail and scope of the mission
Mission Statement: states the purpose of an organization
Operations Strategy: the approach, consistent with the organization strategy, that is used
to guide the operations function.
Order Qualifiers: characteristics that customers perceive as minimum standards of
acceptability to be considered as a potential for purchase.
Order Winners: characteristics of an organization’s goods or services that cause it to be
perceived as better than the competition.
Productivity: a measure of the effective use of resources, usually expresses as the ratio
of output to input.
Quality-Based Strategies: strategy that focuses on quality in all phases of an
organization.
Strategies: plans for achieving organizational goals.
SWOT: analysis of strengths, weaknesses, opportunities, and threats.
Tactics: the methods and actions taken to accomplish strategies.
Time-Based Strategies: strategies that focus on the reduction of time needed to
accomplish tasks.
