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192 terms

Mangement

test 2
STUDY
PLAY
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
analyzers
firms that adopt an adaptive strategy that seeks to minimize risk and maximize profits by following or imitating the proven successes of prospectors
reactors
firms that take an adaptive strategy of not following a consistent strategy, but instead reacting to changes in the external environment after they occur
firm level strategy
a corporate strategy that addresses the question "How should we compete against a particular firm?"
direct competition
the rivalry between two companies that offer similar products and services, acknowledge each other as rivals, and act and react to each others strategic actions
market commonality
the degree to which two companies have overlapping products, services, or customers in multiple markets
resource similarity
is the extent to which the firm's tangible and intangible resources are comparable to a competitor's in terms of both type and amount.
attack
a competitive move designed to reduce a rival's market share or profits
response
a competitive countermove promoted by a rivals attack, to defend or improve the company's profits or market share.
organizational innovation
the successful implementation of creative ideas in organizations
creativity
ability to produce novel and valuable ideas
organizational change
a difference in the form, quality, or condition of an organization over time
technology cycle
a cycle that begins with the "birth" of a new technology and ends when that technology reaches its limits and is replaced by a newer, substantially better technology
s-curve pattern of innovation
a pattern of technological innovation characterized by slow initial progress, then rapid progress, and then slow progress again as a technology matures and reaches its limits
innovation streams
patterns of innovation over time that can create sustainable competitive advantage
technological discontinuity
when a scientific advance or a unique combination of existing technologies creates a significant breakthrough in performance or function
discontinuous change
the phase of a technology cycle characterized by technological substitution and design competition
technological substitution
the purchase of new technologies to replace older ones
design competition
competition between old and new technologies to establish a new technological standard or dominant design
dominate design
a new technological design or process that becomes the accepted market standard
technological lockout
when a new dominant design prevents a company from competitively selling its products or makes it difficult to do so
incremental change
the phase of a technology cycle in which companies innovate by lowering costs and improving the functioning and performance of the dominant technological design
creative work environment
workplace cultures in which workers perceive that new ideas are welcomed, valued, and encouraged
flow
a psychological state of effortlessness, in which you become completely absorbed in what you're doing and time seems to pass quickly
Components of a creative work environment
chart 7.3 pg 120
experiential approach to innovation
an approach to innovation that assumes a highly uncertain environment and uses intuition, flexible options, and hands-on experience to reduce uncertainty and accelerate learning and understanding
design iteration
a cycle of repetition in which a company tests a prototype of a new product or service, improves on that design, and then builds and tests the improved prototype
product prototype
a full-scale working model that is being tested for design, function, and reliability
testing
the systematic comparison of different product designs or design iterations
milestones
formal project review points used to assess progress and performance
multifunctional teams
work teams composed of people from different departments
compression approach to innovation
an approach to innovation that assumes that incremental innovation can be planned using a series of steps and that compressing those steps can speed innovation
generational change
change based on incremental improvements to a dominant technological design such that the improved technology is fully backward compatible with the older technology
change forces
forces that produce differences in the form, quality, or condition of an organization over time
resistance forces
forces that support the existing state of conditions in organizations
resistance to change
opposition to change resulting from self interest misunderstandings and distrust or a general intolerance for change
unfreezing
getting the people affected by change to believe that change is needed
change intervention
the process used to get workers and managers to change their behavior and work practices
coercion
using formal power and authority to force others to change
results driven change
change created quickly by focusing on the measurement and improvement of results
general electric workout
a three-day meeting in which managers and employees from different levels and parts of an organization quickly generate and act on solutions to specific business problems
organizational development
a philosophy and collection of planned change interventions designed to improve an organization's long-term health and performance
change agent
the person formally in charge of guiding a change effort
different kinds of organizational development interventions
7.6 page 131