AP Business with Personal Finance · Summary

Unit 4 summary

  1. Managers plan, organize, lead and control; controlling measures results against goals and feeds back into planning.
  2. No leadership style is best everywhere: autocratic fits emergencies and new teams, democratic builds buy-in, laissez-faire fits skilled experts.
  3. A good KPI matches its goal, is measured the same way each period and is judged against a benchmark; check rates, not just counts.
  4. Strategic decisions are long-term and made at the top; tactical and operational decisions carry them out over shorter periods.
  5. In a weighted decision matrix, multiply each score by its weight and add; the highest weighted total wins, and the best option given up is the opportunity cost.
  6. In a SWOT, strengths and weaknesses are internal and opportunities and threats are external; strong strategies use a strength to seize an opportunity.
  7. Porter's Five Forces: rivalry, new entrants, substitutes, buyer power and supplier power; the stronger the forces, the less attractive the industry.