Mangement

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test 2

S.M.A.R.T goals

goals that are specific, measurable, attainable, realistic and timely (79)

How to make a plan that works 5.1

1. set goals 2. develop commitment 3. Develop effective action plans 4. Track progress toward goal achievement 5. Maintain flexibility (79)

Planning

choosing a goal and developing a method or strategy to achieve that goal

four benefits to planning

Intensified effort, persistence, direction, and creation of tasks strategies (78)

Planning Pitfalls- 3

1. impeding change 2. creating a false sense of certainty 3. attachment of planners to plan for things they don't understand (78)

Goal commitment

the determination to achieve goals

Action Plan

the specific steps, people and resources needed to accomplish a goal

Proximal Goals

Short term goals or subgoals

Distal goal

long-term or primary goal

option based planning

to keep options open by making small simultaneous investments in many alternative plans,(

slack resources

a cushion of extra resources that can be used in option based planning to adapt to unanticipated change problems or opportunities

Planning from top to bottom

5.3 (82) Chart. Top Manager- Mission; Middle Managers- Tactical Plans and Management by Objectives; First-level Managers- Operational plans, standing plans, single-use plans

Strategic Plans

overall company plans that clarify how the company will serve customers and position itself against competitors over the next 2-5 years

Purpose Statement (Top Manager)

A statement of a company's purpose or reason to exist often refer to as a organizational mission or vision

Strategic objective (Top Manager)

a statement of a company's overall goal that unifies a company's wide effort towards it vision. stretch and challenges the organization, and possesses a finish line and a time frame

Tactical Plans (Middle Management)

Plans created and implemented by middle managers that specifies how the company will use resources budgets and people over the next six months to two years to accomplish its goals and its mission

Management by objectives (MBO) (middle managers)

a four-step process in which managers and employees discuss and select goals, develop tactical plans and meet regular to review progress towards goal accomplishment

Four-steps of MBO

1. discuss possible goals 2.collectively select goals that are challenging and attainable and consistent with the company's overall goals 3. jointly develop tactical plans that lead to the accomplishment of tactical goals 4. meet regularly to review progress toward accomplishment of those goals

Operational Plans (First-level management)

day-to-day plans, developed and implemented by lower-level managers, for producing or delivering the organization's products and service over a products and services over a 30-days to six month period

Single-use plans (first-level Management)

plans the cover unique one time only events -operational

Standing Plans (First-level Mangers)

Can be used repeatedly to handle frequently reoccurring event - operational

Three types of standing plans

Policies, procedures, and rule and regulations

Policy

Standing plan that indicates the general course of action that should be taken in response to a particular event or situation

Procedure

A standing plan that indicates the specific steps that should be taken in response to a particular event

Rules and regulations

standing that describe how a particular action should be performed or what must happen or not happen in response to a particular event

Budgeting (First-level Managers)

quantitative planning through which managers decide how to allocate available money to best accomplish company goals -operational

Steps of the rational decision-making process

1.define the problem 2. identify decision criteria 3. weight the criteria 4. generate alternative course of action 5. evaluate each alternative 6. compute the optimal decision

Decision Making

the process of choosing a solution from available alternatives

Rational decision making

a systematic process of defining problems, evaluating alternatives and choosing optimal solutions

Problem (85)

a gap between a desired state and an existing state

How to fix a problem

1.Awareness 2. motivation 3. knowledge skill and abilities and resources

Decision Criteria

the standards used to guide judgments and decisions

Absolute comparison

A process in which each criterion is compared to a standard or ranked on its own merits

relative comparison

a process in which each criterion is compared directly to every other

Maximizing

using the optimal solution

satisficing

choosing a "good enough" alternative

Group-think

a barrier to good decision making caused by pressure within a group for members to agree with each other

Disadvantages to working a a group

group-think and takes considerable time also strong-willed group members

Group think conditions

(89) 4 points

What steps can a group do a better job than individuals, in the decision making process?

defining a problem and generating alternative solutions

Advantages to having a group

(89) chart in the corner!

c-type conflict (cognitive conflict)

disagreement that focuses on problem and issue related difference of opinion

a-type conflict (affective conflict)

disagreement that focuses on individual or personal issues often results in hostility anger resentment, distrust, cynicism and apathy.

Devil's advocacy (five steps)

1.generate a potential 2. assign a devil's advocate to criticize and question the solution 3. Present the critique of the potential solution to key decision makers 4. gather additional relevant information 5. decide whether to use, change, or not use the originally proposed solution (91)

Nominal group technique

a decision making method that begins and ends by having group members quietly write down and evaluate ideas to be shared with the group

delphi technique

a decision-making method in which members of a panel of experts responded to questions and to each other until reaching an agreement on an issue

Brainstorming

1. the more ides the better 2. all ides are acceptable, no matter how wild or crazy 3. other group members' ideas should be used to come up with even more ideas 4. criticism or evaluation of ideas is not allowed

electronic brainstorming

a decision making method in which group members use computers to build on each others' idea and generate alternative solutions

production blocking

a group member must wait to share and idea because another member is presenting (advantage to electronic brainstorming)

evaluation apprehension

fear of what others will think of your idea (advantage to electronic brainstorming)

Disadvantages to electi

1the expanse of other computers,networking, software and other equipment; 2. the anonymity of ideas may bother people who are used to having their ideas accept of virtue of their position 3. outgoing individuals who are more comfortable expressing themselves verbally may find it difficult to express themselves in writing 4.participants must be able to type

Chapter 6

...

Resources

Assets, capabilities, process, knowledge and information that an organization uses to improve its effectiveness ans efficiency, create and sustain competitive advantage, and fulfill a need or solve a problem

Competitive advantage

providing greater value to costumers than competitors can.

Sustainable competitive advantage

A competitive advantage that other companies have tried unsuccessfully to duplicate and have, for the moment, stopped trying to duplicate.

Valuable resources

resources that allow companies to improve efficiency and effectiveness.

rare resources

resources that are not controlled or processed by many competing firms

imperfectly imitable resources

resources that are impossible or extremely costly or difficult for other firms to duplicate

non substitutable resources

resources that produce value or competitive advantage and have no equivalent substitutes or replacements.

competitive inertia

a reluctance to change strategies or competitive [practices that have been successful in the past

strategic dissonance

a discrepancy between a company's intended strategy and the strategic actions that managers take when implementing that strategy

situational analysis (SWOT)

strengths, weaknesses. opportunities, and threats

distinctive competence

what a company can make do, or preform better than its competitors

core capabilities

the internal decision making routines, problem solving processes, and organizational cultures that determine how efficiently inputs can be made into outputs

strategic groups

a group of companies within an industry that top managers choose to compare, evaluate, and benchmark strategic threats and opportunists

core firms

the central companies in a strategic group

secondary firms

the firms in a strategic group that follow strategies related to but somewhat different from those of the core firms

Two basic alternative strategies

risk avoiding which aims to protect an existing competitive advantage
risk seeking- which aims to extend or create a sustainable competitive advantage

strategic reference points

the strategic targets that managers use to measure whether a firm has developed the core competencies it needs to achieve a sustainable competitive advantage

corporate level strategy

the overall organizational strategy that addresses the question what business or businesses are we in or should we be in?

Diversification

strategy for reducing risk by owning a variety of items so that the failure of one stock or business doesn't doom the entire portfolio

portfolio strategy

a corporate level strategy that minimizes the risks by diversifying investment among various businesses and product lines

acquisition

the purchase of a company by another company

unrelated diversification

creating or acquiring companies in completely unrelated businesses

star

a company with a large share of fast growing market

question mark

a company with a small share of a fast growing market

cash cow

a company with a large share of a sloe growing market

dog

a company with a small share of a slow growing market

related diversification

creating or acquiring companies that share similar products, manufacturing, marketing, technologies and cultures,

grand strategy

a broad corporate level strategic plan used to achieve strategic goals and guide the strategic alternatives that managers of individual business or subunits

growth strategy

a strategy that focuses on increasing profits,revenues, market shares, or the number of places in which the company does business

stability strategy

focuses on improving the way in which the company sells the same products or services to the same customer

retrenchment strategy

focuses on turning around very poot company preformance by shrinking size or scope of the business

recovery

the strategic actions taken after retrenchment to return to a growth strategy

CHAPTER EIGHT Global Business

the buying and selling of goods and services by people from different countries

multinational corporation

a corporation that owns businesses in two or more countries

direct foreign investment

a method of investment in which a company builds a new business or buys an existing business in a foreign country

trade barriers

government-imposed regulations that increase the cost and restrict the number of imported goods

protectionism

a government's use of trade barriers to shield domestic companies and their workers from foreign competition

tariff

a direct tax on imported goods

nontariff barriers

nontax methods of increasing the cost or reducing the volume of imported goods

quota

a limit on the number or volume of imported products

voluntary export restraints

voluntarily imposed limits on the number or volume of products exported to a particular country

government import standard

a standard ostensibly established to protect the health and safety of citizens but, in reality, often used to restrict or ban imports

subsidies

government loans, grants, and tax deferments given to domestic companies to protect them from foreign competition

customs classification

a classification assigned to imported products by government officials that affects the size of the tariff and imposition of import quotas

general agreement on tariffs and trade (GATT)

worldwide trade agreement that reduced and eliminated tariffs, limited government, government subsidies, and established protections for intellectual property

world trade organization (WTO)

as the successor to GATT, the only international organization dealing with the global rules of trade between nations

regional trading zones

areas in which tariff and nontariff barriers on trade between countries are reduced or eliminated

maastricht treaty of europe

A regional trade agreement between most European countries

North American Free Trade Agreement (NAFTA)

a regional trade agreement between the United States, Canada, and Mexico

Central America Free Trade Agreement (CAFTA_DR)

a regional trade agreement between Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States

Union of South American Nations (UNASUR)

a regional trade agreement between Argentina, Brazil, Paraguay, Uruguay, Venezuela, Bolivia, Colombia, Ecuador, Peru, Guyana, Suriname, and Chile

Association of South-east Asian Nations (ASEAN)

a regional trade agreement between Brunei Darussalem, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam

Asia-Pacific Economic Cooperation (APEC)

regional trade agreement between Australia, Canada, Chile, the People's Republic of China, Hong Kong, Japan, Mexico, New Zealand, Papua, New Guinea, Peru, Russia, South Korea, Taiwan, the US, and all members of the ASEAN, except Cambodia, Lao PDR, and Myanmar

Global consistency

when a multinational company has offices, manufacturing plants, and distribution facilities in different countries and runs them all using the same rules, guidelines, policies, and procedures

local adaption

when a multinational company modifies its rules, guidelines policies and procedures to adapt to differences in foeign cutomers, goverments, and regulatory agencies

exporting

Selling domestically produced products to customers in foreign countries

cooperative contract

an agreement in which a foreign business owner pays a company a fee for the right to conduct that business in his or her country

licensing

an agreement in which a domestic company, the licensor, receives royalty payments for allowing another company, the licensee, to produces the licensor's product sell its service, or use its brand name in a specified foreign market

franchise

a collection of networked firms in which the manufacturer or marketer of a product or service, the franchisor, licenses the entire business to another person or organization, the franchisee

strategic alliance

an agreement in which companies combine key resources, costs, risk, technology, and people

joint venture

a strategic alliance in which two existing companies collaborate to form a third, independent company

wholly owned affiliates

foreign offices, facilities, and manufacturing plants that are 100 percent owned by the parent company

global new ventures

new companies that are founded with an active global strategy and have sales, employees, and financing in different countries

purchasing power

a comparison of the relative cost of a standard set of goods and services in different countries

political uncertainty

the risk of major changes in political regimes that can result from war, revolution, death of political leaders, social unrest, or other influential events

policy uncertainty

the risk associated with changes in laws and government policies that directly affect the way foreign companies conduct business

national culture

the set of shared values and beliefs that affects the perceptions, decisions, and behavior of the people from a particular country

expatriate

someone who lives and works outside his or her native country

organizational structure

the vertical and horizontal configuration of departments, authority, and jobs within a company

organizational process

the collection of activities that transform inputs into outputs that customers value

departmentalization

subdividing work and workers into separate organizational units responsible for completing particular tasks

functional departmentalization

organizing work and workers into separate units responsible for particular business functions or areas of expertise

product departmentalization

organizing work and workers into separate units responsible for producing particular products or services

customer departmentalization

organizing work and workers into separate units responsible for particular kinds of customers

geographical departmentalization

organizing work and workers into separate units resonsilbe for doing business in particular geographic areas

matrix departmentalization

a hybrid organizational structure in which two or more forms of departmentalization, most often product and functional, are used together

simple matrix

a form of matrix departmentalization in which managers in different parts of the matrix negotiate conflicts and resources

complex matrix

a form of matrix departmentalization in which managers in different parts of the matrix report to matrix managers, who help them sort out conflicts and problems

authority

the right to give commands, take action, and make decisions to achieve organizational objectives

chain of command

the vertical line of authority that clarifies who reports to whom throughout the organization

unity of command

a management principle that workers should report to just one boss

line authority

the right to command immediate subordinates in the chain of command

staff authority

the right to advise, but not command, others who are not subordinates in the chain of command

line function

an activity that contributes directly to creating or selling the company's products

staff function

an activity that does not contribute directly to creating or selling the company's products, but instead supports line activities

10 steps to becoming a better delegator

pg 161

Porters 5 Industry forces

chart 6.6 pg 107

character of rivalry

is a measure of the intensity of competitive behavior between companies in an industry

Threat of new entrants

a measure of the degree to which barriers to entry make it easy or difficult for new companies to get started in an industry

Threat of substitute products or services

a measure of the ease with which customers can find substitutes for an industry's products or services

Bargaining power of suppliers

a measure of the influence that suppliers of parts, materials, and services to firms in an industry have on the prices of these inputs

Bargaining power of buyers

A measure of the influence that customers have on a firm's prices

cost leadership

the positioning strategy of producing a product or service of acceptable quality at consistently lower production cost than competitors can so that the firm can offer the product or service at the lowest price in the industry

differentiation

the positioning strategy of providing a product or service that is sufficiently different from the competitors' offerings that costumers are willing to pay a premium price

focus strategy

the positioning strategy of using cost leadership or differentiation to produce a specialized product or service for a limited, specially targeted group of customers in a particular geographic region or market segment

defenders

firms that adopt an adaptive strategy aimed at defending strategic positions by seeking moderate, steady growth and by offering a limited range of high-quality products and services to a well-defined set of customers

prospectors

firms that adopt an adaptive strategy that seeks fast growth by searching for new market opportunities, encouraging risk taking, and being the first to bring innovative new products to market

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