AP®︎ Business with Personal Finance: Topic 4.3 Flashcards

A plan or broad approach for achieving a goal; it explains how a business will move toward a desired outcome and should fit its capabilities and environment

Specific actions or approaches used to carry out and advance a strategy

Set a goal, gather evidence, select a strategy, align resources and tactics, track results, and then continue, revise, or replace the strategy

Consistency in which tactics advance the strategy and the strategy advances the goal

Consistency among decisions made in areas such as marketing, finance, operations, and human resources

A structured decision process: define the Problem, develop Alternatives, establish Criteria, Evaluate alternatives, and Decide on the best approach

Standards used to judge alternatives based on the business’s goals, strategy, constraints, and stakeholder concerns

Quantifiable costs and benefits can be expressed numerically; intangible ones are difficult to measure precisely but may still be important

Decision criteria involving costs, revenues, profit, cash needs, and return on investment

Decision criteria involving customers, demand, competitors, differentiation, and competitiveness

Decision criteria involving production, quality, technology, delivery, capacity, and supply chain risk

Decision criteria involving employees, management capacity, culture, skills, responsibilities, and stakeholder relationships

A table that organizes alternatives and criteria so their costs, benefits, tradeoffs, and assumptions can be compared

A tool for systematically evaluating relevant internal and external variables of an option against long-term goals and strategy

Additional profit generated by an investment ÷ investment cost; multiply by 100 to express it as a percentage