Metro Materials

Strategy and Management

Strategy Chapter 1 Important Points and their Keywords by Ko Lapai

Purpose of Corporate Activities
-contribution to society

Corporate activities for contributing to society

CSR (Corporate Social Responsibility) - response to local, citizens, communities, etc…

 Green IT – promotion of energy conservation, efficient use of resources

 CI (Corporate Identity) – create awareness

Corporate Governance - Promote wholesome practices, Monitoring

 Disclosure – publicize business and financial state

 IR (Investor Relation) – provision of information to investors

Going Concern (Continuous Business Entities)

 BCP (Business continuity plan) – avoid risk in advance, quickly recover, business impact analysis

Corporate Organizational Structure

1st sector: Public enterprise – funded by countries, local public enhance public profit

2nd sector: Private enterprise – individual, private, individual proprietorship (single individual),
incorporate enterprise (two or more equity participants)

 Limited partnership (Ownership and Management are same)

Classifications of this enterprise –

 General partnership company – all employees are members with unlimited liability
 Limited partnership company – both members with limited and unlimited liability
 Limited liability company – all employees are members with limited liability

Stock company (Ownership and Management are separated)

- issuing stocks, stocks bought/sold -> IPO

IPO (Initial Public Offering) – enable unspecific number of investors to buy and sell unlisted stocks of a
company in the stock market

 Stockholders’ Meeting – highest decision making body

 Board of directors – CEO (aka) External representative, select outside directors
 Auditor – audits for accounting, execution, present result at stockholders’ meeting

3rd sector: Mixed enterprise – funded by countries and local public entities, individuals or private entities

4th sector: Other corporations – foundations

Some information may not be as detail as in the textbook. This is for fast-scanning near exam only.
Personally prefer to read this sheet after reading details in the book. Thank you 
Metro Materials
Strategy and Management

Corporate Hierarchy Structure

 Executive tier (Top management) – CEO, Vice president, Executive managing directors
 Management tier (Middle management) – Department managers, section chiefs
 Supervisor tier (Lower management) – on-site supervisors, assistant managers, chiefs
 General employee tier (Staff members)

CEO – Chief Executive Officer

COO – Chief Operating Officer

CIO – Chief Information Officer

CFO – Chief Financial Officer

CISO – Chief Information Security Officer

CCO – Chief Compliance Officer

CCO – Chief Customer Officer

CIO – information strategy planning, execution, company-wide information management, effective use
of information management.

Management Organization
 Hierarchical Organization (Vertical structure) – pyramid organization.
 Functional Organization (Horizontal structure) – specializations and roles.

Flat management – extremely small amount of middle management

1) Line and Staff Organization

 Line department – production and sales
 Staff department – general affairs and accounting
2) Project Organization – formed temporarily, specialists
3) Matrix Organization – exchange between project and functional organizations, overlap
4) Divisional Organization
 In-house company system – independent accounting system
 In-house venture system – semi-independent business

Business Management
Human resource development and management methods

 OJT – education and training while actual business

 Case study – past examples.
 Role-Play – simulated business activities
 Debate – discussion between two groups
 In-basket – large number of issues within specific time period
 e-learning – utilize computers and other information devices
 Competency – behavioral characteristics of high level performance employees
 CDP – future plan

Some information may not be as detail as in the textbook. This is for fast-scanning near exam only.
Personally prefer to read this sheet after reading details in the book. Thank you 
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Strategy and Management

 Work-life balance – balance between work and life

 Mental health – counseling to prevent negative psychological effects
 MBO – progress toward objectives
 Work-sharing – limited employment is shared multiple workers
 Discretionary labor system – actual working hours left up

Management Science
Statistics
Frequency Distribution

Correlation –

- the closer the correlation coefficient is to 1, the stronger positive correlation / the closer the
correlation coefficient is to -1, the stronger negative correlation.

Regression Analysis –

- describe with scatter diagram. y = ax + b

Probability Distribution –

- Discrete probability variables (scatter values)

- Continuous probability variables (within continuous range)

Queueing Theory

- Estimate the amount of waiting time or number of people

- Use M/M/1 model

Linear Programming

- Find the solution with greatest effect

- Solve allocation problems / production volume / transportation problems

Scheduling

Scheduling methods – PERT (For estimating an activity), CPM (shortening the schedule with minimum
cost)

There are different methods to shorten the work schedule other than CPM –

- Crushing – additional staff members and cost

- Fast-tracking – breaking down into smaller parts and perform in parallel

Some information may not be as detail as in the textbook. This is for fast-scanning near exam only.
Personally prefer to read this sheet after reading details in the book. Thank you 
Metro Materials
Strategy and Management

Inventory Problems
Inventory Control

Total inventory cost = Storage cost + Ordering cost

Storage cost = Annual average inventory quantity * Annual Storage cost per stock

Ordering cost = Number of orders * Ordering cost per order

EOQ (Economic Order Quantity) – minimize the total inventory cost

Safety Stock – to prevent out of stock

Ordering Method

Periodic Ordering Method

- Ordering interval is set in advance/ demand is forecast

Fixed Ordering Method

- Ordering interval is fixed

Two Bin Method

- When one shelf goes out of stock, the order is placed for that shelf meanwhile the inventory
from other shelf is used.

Some information may not be as detail as in the textbook. This is for fast-scanning near exam only.
Personally prefer to read this sheet after reading details in the book. Thank you 
Metro Materials
Strategy and Management

Some information may not be as detail as in the textbook. This is for fast-scanning near exam only.
Personally prefer to read this sheet after reading details in the book. Thank you 