MGT 3300 exam 2

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planning
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Terms in this set (58)
planning
setting goals and deciding how to achieve them
business plan
document that outlines a proposed firm's goals, the strategy for achieving them, and the standards for measuring success
business model
outlines the need the the firm will fill, the operations of the business, its components and functions, as well as the expected revenues and expenses
strategy
large scale action plan that sets the direction for an organization
strategic management
a process that involves managers from all parts of the organization in the formulation and the implementation of strategies and strategic goals
mission
an organization's purpose or reason for being
mission statement
expresses the purpose of the organization
vision
long term goal describing "what" an organization wants to become. It is a clear sense of the future and the actions needed to get there
vision statement
expresses what the organization should become, where it want to go strategically
strategic planning by top management
determine what the organization's long term goals should be for the next 1-5 years with the resources they expect to have available
tactical planning by middle managementdetermine what contributions their departments or similar work unites can make with their given resources during the next 6-24 monthsoperational planning by first line managementdetermine how to accomplish specific tasks with available resources withing the next 1-52 weeksgoal (objectives)specific commitment to achieve a measurable result within a stated period of timeaction plandefines the course of action needed to achieve the stated goaloperating plantypically designed for a one-year period, defines how you will conduct your business based on the action plan; it identifies clear targets such as revenues, cash flow, and market sharestanding plansplans developed for activities that occur repeatedly over a period of time. Consist of policies, procedures, and rulespolicystanding plan that outlines the general response to a designated problem or situationprocedurestanding plan that outlines the response to particular problems or circumstancesrulestanding plan that designates specific required actionsingle-use plansplans developed for activities that are not likely to be repeated in the futureprogramsingle-use plan encompassing a range of projects or activitiesprojectsingle-use plan of less scope and complexity than a programSMART goslSpecific, Measurable, Attainable, Results-Oriented, and Target dateManagement by objectives (MBO)four step process in which (1) managers and employees jointly set objectives for the employee, (2) managers develop action plans, (3) managers and employees periodically review the employee's performance, and (4) the manager makes a performance appraisal and rewards the employee according to resultsfor MBO to be successful, three things have to happen1) Top management must be committed 2) it must be applied organizationwide 3) objectives must "cascade"-cascading objectives down through the organization; objectives are structured in a unified hierarchy, becoming more specific at lower levels of the organizationplanning/control cycletwo planning steps (1&2) and two control steps (3&4): 1) make the plan 2) carry out the plan 3) control the direction by comparing results with the plan 4) control the direction by taking corrective action in two ways: (a) by correcting deviations in the plan being carried out or (b) by improving future plansWhat are the steps in rational decision making?Stage 1 Identify the problem or opportunity Stage 2 think up alternative solutions Stage 3 Evaluate alternative & select a solution Stage 4 Implement & evaluate the solution chosenWhat are two models of non rational decision making1 Bounded rationality & the Satisficing model 2 The intuition modelWhat are four ethical questions a manager should ask when evaluating a proposed action to make a decision1 Is the proposed action legal 2 If "yes" Does the proposed action maximize shareholder value 3 If "yes" is the proposed action ethical 4 If "No" would it be ethical not to take the proposed actionCompetitors using analytics have what three keys attributes1 Use of modeling: Going beyond simple deceptive statistics 2 Having multiple applications, not just one 3 Support from the topWhat is big data?includes not only data in corporate databases but also web-browsing data trails, social network communications, sensor data, and surveillance dataDescribe the four general decision making stylesAnalytical Conceptual Directive BehavioralDiscuss the four ineffective and three effective ways that individuals can respond to a decision-making biases- IneffectiveIneffective 1 Relaxed Avoidance 2 Relaxed Change 3 Defensive Avoidance 4 PanicDiscuss the four ineffective and three effective ways that individuals can respond to a decision-making biases- EffectiveEffective 1 Importance 2 Credibility 3 UrgencyWhat are the advantages and disadvantages of group decision making- AdvantagesAdvantages - Greater pool of knowledge - Different perspectives - Intellectual stimulation - Better understanding of decision rationale - Deeper commitment to the decisionThe nine decision making biases1 Availability 2 Representativeness 3 confirmation 4 sunk-cost 5 anchoring and adjustment 6 overconfidence 7 hindsight 8 Framing 9 escalation of commitmentWhat are the advantages and disadvantages of group decision making- DisadvantagesDisadvantages - A few people dominate or intimidate - Group thinking - Satisficing - goal displacementWhat are three group problems-solving techniques1 Brainstorm 2 The Delphi Technique 3 Computer-Aiding Decision makingTo implement an organization's strategy, what are the two kinds of important areas that managers must determine?The challenge for top managers is to align the organization's vision and strategies with its organizational culture and organizational structure.How would you describe the four kinds of organizational cultures, according to the competing values framework?(1)clan, which has an internal focus and values flexibility; (2) adhocracy, which has an external focus and values flexibility; (3) market, which has a strong external focus and values stability and control; (4) hierarchy, which has an internal focus and values stability and control.Describe and explain the three levels of organizational culture.Level 1 is observable artifacts, the physical manifestations of culture. Level 2 is espoused values, explicitly stated values and norms preferred by an organization, although employees are frequently influenced by enacted values, which represent the values and norms actually exhibited in the organization. Level 3 consists of basic assumptions, the core values of the organization. Culture is transmitted to employees in symbols, stories, heroes, and rites and rituals.What are four ways in which culture is transmitted to employees?(1) A symbol is an object, act, quality, or event that conveys meaning to others. (2) A story is a narrative based on true events, which is repeated—and sometimes embellished on—to emphasize a particular value. (3) A hero is a person whose accomplishments embody the values of the organization. (4) Rites and rituals are the activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments in the organization's life.Name 12 mechanisms by which an organization's members teach each other preferred values, beliefs, expectations, and behaviors.(1) formal statements; (2) slogans and sayings; (3) rites and rituals; (4) stories, legends, and myths; (5) leader reactions to crises; (6) role modeling, training, and coaching; (7) physical design; (8) rewards, titles, promotions, and bonuses; (9) organizational goals and performance criteria; (10) measurable and controllable activities; (11) organizational structure (12) organizational systems and procedures.What are seven common elements of organizations?(1) common purpose, which unifies employees or members and gives everyone an understanding of the organization's reason for being; (2) coordinated effort, the coordination of individual efforts into a group or organization-wide effort; (3) division of labor, having discrete parts of a task done by different people; (4) hierarchy of authority, a control mechanism for making sure the right people do the right things at the right time. (5) span of control, which refers to the number of people reporting directly to a given manager; (6) authority and accountability, responsibility, and delegation. (7) centralization versus decentralization of authority. With centralized authority, important decisions are made by higher-level managers. With decentralized authority, important decisions are made by middle-level and supervisory-level managers.Describe the four types of traditional organizational designs.(1) In a simple structure, authority is centralized in a single person; this structure has a flat hierarchy, few rules, and low work specialization. (2) In a functional structure, people with similar occupational specialties are put together in formal groups. (3) In a divisional structure, people with diverse occupational specialties are put together in formal groups by similar products or services, customers or clients, or geographic regions. (4) In a matrix structure, an organization combines functional and divisional chains of command in grids so that there are two command structures—vertical and horizontal.Explain what is meant by horizontal organizational designs.In a horizontal design or team-based design, teams or workgroups are used to improve horizontal relations and solve problems throughout the organization.What are three designs that open boundaries between organizations?(1) In a horizontal design or team-based design, teams or workgroups are used to improve horizontal relations and solve problems throughout the organization. (2) In a network structure, the organization has a central core that is linked to outside independent firms by computer connections, which are used to operate as if all were a single organization. (3) In a modular structure, a firm assembles product chunks, or modules, provided by outside contractors.What are three factors to consider in designing an organization's structure?(1) The first is that an organization may be either mechanistic or organic. In a mechanistic organization, authority is centralized, tasks and rules are clearly specified, and employees are closely supervised. In an organic organization, authority is decentralized, there are fewer rules and procedures, and networks of employees are encouraged to cooperate and respond quickly to unexpected tasks. (2) an organization may also be characterized by differentiation or integration. Differentiation is the tendency of the parts of an organization to disperse and fragment. Integration is the tendency of the parts of an organization to draw together to achieve a common purpose. (3) the link between strategy, culture, and structure. If the managers of an organization change its strategy, they need to change the organization's culture and structure to support that strategy.What is strategic positioning, and what are the three principles that underlie it?Strategic positioning attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company. Based on the principles that strategy is the creation of a unique and valuable position, requires trade-offs in competing, and involves creating a "fit" among activities, so that they interact and reinforce each other.What are the five steps in the strategic management process?(1) is to establish the mission statement and the vision statement. The mission statement expresses the organization's purpose. The vision statement describes the organization's long-term direction and strategic intent. (2) is to do a current reality assessment, to look at where the organization stands and see what is working and what could be different so as to maximize efficiency and effectiveness in achieving the organization's mission. Among the tools for assessing the current reality are SWOT analysis, forecasting, benchmarking, and Porter's model for industry analysis. (3) is strategy formulation, to translate the broad mission and vision statements into a grand strategy that explains how the organization's mission is to be accomplished (4) is strategy implementation—putting strategic plans into effect. (5) is strategic control, monitoring the execution of strategy and making adjustments.Name some characteristics of good mission and vision statements.A mission statement should express the organization's purpose or reason for being. A vision statement should be positive and inspiring, and it should stretch the organization and its employees to achieve a desired future state that appears beyond its reach.What is competitive intelligence?gaining information about one's competitors' activities, through public news sources, investor information, and informal sources, so that you can anticipate their moves and react appropriately.What are the tools that can help you assess the current reality?competitive intelligence, SWOT analysis, forecasting, benchmarking, and Porter's model for industry analysis.Explain what SWOT is.a search for the Strengths, Weaknesses (Internal), Opportunities, and Threats (external) affecting the organization.Describe three techniques that can help you formulate a grand strategy.(1) Porter's four competitive strategies, (2) diversification and synergy, (3) the BCG matrix.What are three common grand strategies?(1) a growth strategy, which involves expansion—as in sales revenues; (2) a stability strategy, which involves little or no significant change (3) a defensive strategy, which involves reduction in the organization's efforts.Explain Porter's four competitive strategies.(1) The cost-leadership strategy is to keep the costs, and hence the prices, of a product or service below those of competitors and to target a wide market. (2) The differentiation strategy is to offer products or services that are of unique and superior value compared with those of competitors but to target a wide market. (3) The cost-focus strategy is to keep the costs and hence prices of a product or service below those of competitors and to target a narrow market. (4) The focused-differentiation strategy is to offer products or services that are of unique and superior value compared with those of competitors and to target a narrow market.In execution, what are the three core processes of business?(1)people: You have to evaluate talent by linking people to particular strategic milestones, developing future leaders, dealing with nonperformers, and transforming the mission and operations of the human resource department. (2)strategy: In considering whether the organization can execute the strategy, a leader must take a realistic and critical view of its capabilities and competencies. (3)operations: The third core process, operations, or the operating plan, provides the path for people to follow. The operating plan should address all the major activities in which the company will engage and then define short-term objectives for these activities, to provide targets for people to aim at. By linking people, strategy, and operating plans, execution allows executives to direct and control the three core processes that will advance their strategic vision.