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36 terms

MGMT Exam 2

Ch 6-10 MGMT 2009-2010
STUDY
PLAY
BCG Matrix
a portfolio strategy developed by the Boston Consulting Group that categorizes a corporation's businesses by growth rate and relative market share and helps managers decide how to invest corporate funds.
SWOT Analysis
A comparison of strengths, weaknesses, opportunities, and threats that helps executives formulate strategy.
Grand Strategies
stability, growth, retrenchment
Organizational Change
a difference in the form, quality, or condition of an organization over time
Organization Development
A philosophy and collection of planned changes and designs to improve long term health and performance of an organization.
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
change forces
forces that produce differences in the form, quality, or condition of an organization over time
Ways to enter global markets
Outsourcing, exporting, licensing, and direct investment
Licensing
An agreement in which one firm sells another firm the right to use a brand name for a specific purpose and for a specific period of time.
direct foreign investment
a method of investement in which a company builds a new buisness or buys a existing business in a foreign country
power distance
Extent people accept differences in power among institutions, organizations, and people
Cultural differences
power distance, individualism, masculinity and femininity, uncertainty avoidance, and short-term vs. long-term orientation
short-term/long-term orientation
Addresses whether cultures are oriented to the present and seek immediate gratification or to the future and defer gratification. Short-term countries are consumer driven, while long-term countries are savings driven. USA, Russia, West Africa are short-term, while China and Hong Kong are long-term.
Masculine cultures
cultures that value agressiveness, strength, and material symbols of success. Ex: Japan, US, and Germany.
Feminine cultures
A culture that emphasizes characteristics stereotypically associated with feminine people, such as sexual equality, nurturance, quality of life, supportiveness, affection, and a compassion for the less fortunate. Ex: Netherlands
uncertainty avoidance
the degree to which individuals in a society feel uncomfortable with situations that are unstructured, unclear, or unpredictable. Strong ex: Japan, France, and Russia. Weak: Hong Kong
Stages of team development
Forming (orientation, breaking the ice), Storming (conflict, disagreement), Norming (establishment of order and cohesion), Performing (cooperation and problem solving), Adjourning (task completion)
Chain of Command
Related to unity of command and the scalar principle.
Tall structure
Has a narrow span and more hierarchical levels
5 Departmentalization structures
Functional, Product, Customer, Geographic, Matrix
Functional departmentalization
organizing work and and workers into separate units responsible for particular buisness functions or area of expertise
Product departmentalization
organizing work and workers into separate units responsible for producing particular products or services
Customer departmentalization
organizing work and wokers into separate units responsible for particular kinds of customers
Geographic departmentalization
organizing work and workers into separate units responsible 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
work specialization
the degree to which organizational tasks are subdivided into individual jobs; also called division of labor
span of management
The number of employees reporting to a supervisor; also called span of control
organizing
management process of determining how best to arrange an organization's resources and activities into a coherent structure
organization structure
the framework in which the organization defines how tasks are divided, resources are deployed, and departments are coordinated
Bargaining Power of Suppliers
Many suppliers = companies can bargain for lower prices. Few suppliers = suppliers can set prices.
Bargaining Power of Buyers
Many customers = company sets prices. Ex: Walmart. Few customers (high volume) = company is dependent on its customer base, therefore the customers can bargain the prices down.
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
Character of Rivalry
measure of the intensity of competitiveness between companies
centralization
the degree to which decision making is concentrated at a single point in the organization
decentralization
the process of pushing decision-making authority down the organizational hierarchy.