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MGT 301 - Exam 2
Terms in this set (79)
A good clear mission statement defines your _______
Facebook has invested in ______ ______ and plans to steer its investments to ______ ______
virtual reality, computing platforms
Twitter has been trying to refocus itself as the world's ______ place to get ______
Snapchat's 3 benefits of articulating a different mission
1) Be more than just a network of friends
2) Differentiates the company from Facebook
3) Being wary of being too dependent on Google and Apple
Snapchat wants to be known as a ______ ______
Investors are ______ ______ Snap's attempt at redefinition
not believing ("snapchat is not a camera company")
Step FOUR of the 5 characteristics of excellent problem solvers
They handle on thing at a time ("how do you eat an entire elephant? One bite at a time")
"Look at ______ __ ______. Let your staff and employees know that you are troubleshooting the ______, not the ______. If you approach things from this perspective, people will cooperate and open up regarding issues you need to hear about" - Mr. I
problems as processes, process, people (like Mary Parker Follet's teaching that managers are to be facilitators)
(Will be a True of False Question) "Stop, take a step back, and think logically about the situation at hand. You must first fully understand the ______. Secondly, understand that the answer does not ______ ___ ___ ______." -Dr. H
problem, reside in the computer
"Organizations promote people who are ______ ______. So welcome any opportunity to solve new challenges If you are successful in that, the rewards and promotions will take care of themselves" -Mr. G
Centralized decision making
BOSS makes the decisions. Associated with a formal structure. More EFFICIENT than flexible
De-centralized decision making
WORKERS make the decisions. Associated with a flexible structure. More EFFECTIVE than a formal structure
7 Types of Organizational Structures
(Test question will give you the nature of a company and you choose which structure fits best) (FPDCGMT)
1) Functional- for a young single product firm
2) Product- for a firm pursuing a strategy related to diversification (like P&G)
3) Divisional- for a firm pursuing a strategy UNrelated diversification (like Berkshire Hathaway)
4) Customer- for firms engaging in a strategy of forward vertical integration and customer service
5) Geographic- for a firm pursuing a multi-domestic strategy
6) Matrix- for high-tech firms, and those trying to promote organizational learning by breaking through silos
7) Team- for highly educated white collar professionals working on projects (law firms, consulting firms, advertising agencies, etc)
What organizational structure fits best for a company who is trying to diversify?
"If you want to make a difference, you must be ______." and, "To be outstanding, you must _____ _____." -Holbein
different, stand out
Illustrated by the value chain diagrams 6 ways that we can create value for potential customers and thus earn money from them (The strategy is vertical integration and the diagram is value chain)
Value Chain Diagram (6) (PTHPDS)
1) Procuring- getting stuff no one else has
2) Transforming- like resembling a car
3) Holding- keeping items in inventory
4) Promoting- marketing, advertising, selling
5) Distributing- customers pay more for convenience
Forward vertical integration is toward the ______
Backward vertical integration is toward the ______ ______
International Expansion asks the ______ _____ of international business
customize products in every local culture. This is EFFECTIVE.
strategy of selling the same product everywhere. This is EFFICIENT.
Low-Cost / Cost Leader (opposite of differentiation)
BOTTOM of the market, BASIC products. This requires much EFFICIENCY. This a low-profit margin, high volume business.
Differentiation (opposite of low-cost)
TOP of the market, LUXURY products. This requires much EFFECTIVENESS. This a high-profit margin, low volume business.
"Good leaders never embrace a ______ mentality" -Maxwell 16
victim (that would be an external locus of control)
"Self made millionaires have one thing in common: they ______ ______" -Maxwell 16
3 Important characteristics that make Mr. Eastwood so successful
1- His company is "not entitled to anybody's business" which demonstrates an internal locus of control. Successful people do NOT say "I deserve." they realize that ultimately we EARN what we GET.
2- Successful people may or may not prioritize schoolwork, but surely do have CLEAR PRiORITIES, and the firmly commit to living by them.
3- Example of handwritten notes. Notes show a commitment to BEING IN TOUCH WITH PEOPLE PERSONALLY
Lesley Fox and Walmart are both examples of ______ ______?
programmed decision making
made an employee hall of fame after employee of the month didn't work
tried exporting American-based management to other nations assuming it would work like it did in the U.S. . It did not.
The Thumbtack is _____, _____, _____, and _____.
broad, human, sharp, and focused
The broad top of the thumbtack represents ______.
discernment (human part)
The sharp point of the thumbtack represents _____.
Why must we be broad?
to interact with a wide variety of people, and thereby see much more than we could otherwise and get things done EFFECTIVELY.
Why must we be sharp?
to know many facts, numbers and details so that we can get things done EFFICIENTLY. Memorization is a power principle.
To be set apart you should ____ ______.
How to cultivate discernment (3 steps)
1- "value nontraditional thinking"
2 "embrace change, ambiguity, and uncertainty"
3- "broaden your horizons"
2 kinds of animals in Maxwell chapter 8
rabbits and lions
process by which people respond to opportunities and threats by analyzing options, choosing goals, and selecting courses of action
Decision making definition:
process by which people respond to _____ and _____ by analyzing _____, choosing ______, and selecting courses of _____.
opportunities, threats, options, goals, action
Programmed decision making
ROUTINE, virtually automatic decision making that follows established RULES and guidelines where we have made similar decisions before" (Lesley Fox and Wal-Mart)
Non-Programmed decision making
NON-routine decisions that occur in response to unusual, unpredictable and unique circumstances when there are NO RULES to follow, and where we have uncertain or ambiguous information, thereby requiring us to use our intuition, judgement, and discernment.
"The connection between leadership and a pilots license" What personality does this story represent?
openness to experience
"The connection between leadership and a pilots license"
It's a risky hobby but the fact that people still want to pursue flying shows you something about their drive. CEO's with intrinsic motivation to learn new things can create a LONG_TERM VALUE
1- Failure did NOT occur because of laziness
2- Failure did NOT occur beacause of violation of ethics
3-The employee can explain how and why it happened, so that the employee has learned and CHANGED
4-The failure is NOT REPEATED
"when making strategic decisions, it is the job of the ______ to think ______, but to think in a ______ way. This is how companies _______ _______. Just because a strategy worked in one situation does not mean that strategy will work in another."- Mr. B manufacturing CEO
manger, logically, different, competitive advantage
(warns us about programmed decision making)
What was the result of Mr. B manufacturing CEO's quote about strategic decision?
he gained a competitive advantage
"the strategic aspects of ______ require you to be fully aware of what is going on around you." - Mr. H mining CEO
"the strategic aspects of management require you to be fully aware of what is going on around you." - Mr. H mining CEO
This quote represents what kind of manager?
(True or False Question) "always look to the _____ for ______ _____ in the world's _____" - Mr. M. information technology CEO
future, paradigm shifts, culture
Steve Job's "Here's to the crazy ones"
"heres to the crazy ones. The misfits. The rebels. The troublemakers. The ROUND PEGS IN A SQUARE HOLE. The ones WHO SEE THINGS DIFFERENTLY. They're not fond of rules. And they have NO RESPECT FOR THE STATUS QUO. You can quote them, disagree with them, glorify or vilify them. But the only thing you can't do is ignore them. Because THEY CHANGE THINGS. They PUSH THE HUMAN RACE FORWARD. And while some may see them as the crazy ones, we see genius. Because the people who are crazy enough to think they can change the world, are the ones who do."
Walt Disney- "the cartoonist's ______ inspired him with a grand _____"
disappointment, vision (a career with meaning)
"You can't ___, ___, or ______ vision. It has to come from inside"
buy, beg or borrow (internal locus of control)
When you find your vision, you must do 2 things to make it real
1- write it down
2-talk to several key people ("personal board of directors"
5 questions of a corporate mission statement
1- WHO are the customers?
2- WHY are we in business? (to serve peoples needs and wants adding value to their lives)
3- WHAT products and services do we offer to serve those needs and wants?
4- WHERE are our operations?
5- HOW will we set ourselves apart from the competitions? (you must stand out and make a difference)
3 levels of planning
1- Strategic Plan: addresses whole organization over a three to five year period
2- Tactical Plan: each division within a company generates a plan for a year-long time period
3- Operating Plan: quarterly plan for a department within a division
Addresses WHOLE organization over a 3 -5 year period
Each DIVISION within a company generates a plan for a YEAR-long time period
QUARTERLY plan for a DEPARTMENT within a division
6 coperate startegies (FDVILD)
1- Concentration/Focus Strategy
3- Vertical Integration
4- International Expansion
5- Low Cost / Cost Leader
Have a single type of product, McDonalds, Wal-Mart, Coca-Cola became dominant this way. Do "one" thing really well, better than anyone else.
- Related Diversification- producing and selling products that are similar to each other. Procter & Gamble is a good example of this
- Unrelated Diversification- producing and selling products that are not at all similar to each other. Berkshire Hathaway is a good example of this. This point is to reduce the variability of returns by spreading our risks
Vertical Integration Strategy
Illustrated by the Value Chain diagram's six ways that we can create value for potential customers and thus earn money from them
1- Procuring (getting stuff no one else has)
2- Transforming (like assembling a car, or refining oil)
3- Holding (keeping items in inventory)
4- Promoting (marketing, advertising, selling)
5- Distributing (customers pay more for convenience)
a. Forward Vertical Integrating is toward the CUSTOMER
b. Backward Vertical Integration is toward the RAW MATERIALS
Ask the fundamental question of international business: "To what extent do we customize our products for different national cultures, versus standardizing our products worldwide for global efficiency?"
a. Multi-Domestic: customize products in every local culture. This is effective.
b. Global Strategy: strategy of selling the same product everywhere. This is efficient.
Low Cost / Cost Leader
Bottom of the market, basic products. This requires much efficiency. This is the low-profit margin, high volume business
Top of the market, luxury products. This requires much effectiveness. This is a high-profit margin, low volume business model
The risk in both the Low-Cost and the Differentiation strategies is _____?
getting stuck in the middle
Procter and Gamble is an example of _____?
"GM signals retreat from europe"
Question: What would they do with the freed up money?
1- improve their position in more profitable markets like china
2- pursue future technologies such as self-driving cars
3- invest more in the US
4- increase lending
5- invest more in aftermarket parts business
Main lesson from the "GM signals retreat from europe" story
they help their competition (value system and paradoxical actions)
Classical Decision Making
assumes we can...
1- identify all possible alternatives
2- evaluate all possible alternatives under pure logic
3- forecast the consequences of every alternative
5- be perfectly rational, logical and analytical in choosing the one best course of action
Administrative Decision Making (uncertain, risky, and messy)
1- we are limited to our ability to be perfectly rational and logical "bounded rationality"
2- we have incomplete, ambiguous (differing interpretations) information
3- we engage in satisficing: choosing the first good alternative
How to break through groupthink
1- increase diversity of the group
2- devils advocacy
Chain of innovation (STLCI)
3 reasons why insecure leaders are dangerous
1- "because a leadership position amplifies personal flaws"
2- "insecure people are on a continual quest for validation, acknowledgement, and love," "if you feel you must demand respect from others, you probably don't deserve that respect"
3- "you cannot give what you do not have"
"Nothing is greater ______ to being on _____ _____ with others than being ______ __ ______ with yourself" - Balzac
impediment, good terms, ill at ease
"As long as you're ____, you're ______. As soon as you're ______, you start to ___" - Ray Kroc
green, growing, ripe, rot
"He who makes no ______, makes no _______" -Teddy Roosevelt (relates to holbeins example of skiing)