question

Planning

answer

Setting goals and deciding how to achieve them.

question

Business Model

answer

Outlines the need the firm will fill, the operations of the business, its components and functions and, the expected revenues and expenses

question

Strategy

answer

A large-scale action plan that sets the direction for an organization

question

Strategic Management

answer

A process that involves managers from all parts of the organization in the formation and the implementation of strategies and strategic goals

question

Mission

answer

A company's purpose or reason for being

question

Mission Statement

answer

Expresses the purpose of an organization

question

Vision

answer

A long-term goal describing "what" an organization wants to become. It is a clear sense of future and the actions needed to get there

question

Vision Statement

answer

Expresses what the organization should become, where it wants to go strategically

question

Strategic Planning

answer

Determine what the organization's long-term goals should be for the next 1-5 years with the resources they expect to have available

question

Tactical Planning

answer

Determining what contributions their departments or similar work units can make with their given resources during the next 6-24 months

question

Operational Planning

answer

Determining how to accomplish specific tasks with available resources within the next 1-52 weeks

question

Goal (Objective)

answer

A specific commitment to achieve a measurable result within a stated period of time

question

Means-end-chain

answer

A conceptual tool arranging strategic goals, tactical goals and operational goals

question

Strategic Goals

answer

Goals that are set by and for top management and focus on objectives for the organization as a whole

question

Tactical Goals

answer

Goals that are set by and for middle managers and focus on the actions needed to achieve strategic goals

question

Operational Goals

answer

Goals that are set by and for first-time managers and are concerned with short term matters associated with realizing tactical goals

question

Action Plan

answer

Defines the course of action needed to achieve the stated goal

question

Operating Plan

answer

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 flows, and market share

question

Standing plans

answer

Plans developed for activities that occur repeatedly over a period of time

question

Policy

answer

A standing plan that outlines the general responses to a designated problem or situation

question

Procedure

answer

A standing plan that outlines the response to particular problems or circumstances

question

Rule

answer

A standing plan that designates specific required action

question

Single-Use Plans

answer

Plans developed for activities that are not likely to be repeated in the future

question

Program

answer

A single-use plan encompassing a range of projects and activities

question

Project

answer

A single-use plan of less scope and complexity than a program

question

SMART goal

answer

One that is Specific, Measurable, Attainable, Results-oriented, and has Target dates

question

Management by Objectives (MBO)

answer

A four-step process in which (1) managers and employees jointly set objectives for the employee, (2) managers develop action plans, (3) mangers and employees periodically review the employee's performance and (4) the manager makes a performance appraisal and rewards the employee according to results

question

Planning/Controlling Cycle

answer

A feedback loop that goes as follows; (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- namely (a) by correcting deviations in the plan being carried out or (b) by improving future plans

question

Business Plan:

answer

A document that outlines a proposed firm's goals, the strategy for achieving them, and the standards for measuring success.

question

Strategy:

answer

A large-scale action play that sets the direction for an organization.

question

Strategic Management:

answer

A process that involves managers from all parts of the organization in the formulation and the implementation of strategies and strategic goals.

question

(1) provide direction and momentum, (2) encourage new ideas, and above all (3) develop a sustainable competitive advantage.

answer

Three reasons why organizations should adopt strategic management and strategic planning:

question

Sustainable competitive advantage occurs when an organization can stay ahead in four areas:

answer

(1) Being responsive to customers, (2) Innovating, (3) Quality, and (4) Effectiveness.

question

Michael Porter:

answer

Harvard Business School professor who is said to be "the single most important strategist working today, and maybe of all time," by Kevin Coyne of consulting firm McKinsey & Co.

question

Strategic Positioning:

answer

Attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company.

question

(1) Strategy is the creation of a unique & valuable product, (2) Strategy requires trade-offs in competing, and (3) Strategy involves creating a "fit" among activities.

answer

Three key principles underlying Strategic Positioning:

question

1. Establish the mission and the vision. 2. Establish the grand strategy with environmental scanning. 3. Formulate the strategic plans. 4. Carry out the strategic plans. 5. Maintain strategic control.

answer

The 5 steps of the Strategic-Management Process:

question

Grand Strategy:

answer

explains how the organization's mission is to be accomplished. examples- growth, stability, and defensive.

question

Growth Strategy:

answer

A grand strategy that involves expansion--as in sales revenues, market share, number of employees, or number of customers or (for nonprofit) clients served.

question

Stability Strategy:

answer

A grand strategy that involves little or no significant change.

question

Defensive Strategy (AKA Retrenchment Strategy):

answer

A grand strategy that involves reduction in the organization's efforts.

question

Strategy Formulation:

answer

The process of choosing among different strategies and altering them to best fit the organization's needs.

question

Strategy Implementation:

answer

Putting strategic plans into effect

question

Strategic Control:

answer

Consists of monitoring the execution of strategy and making adjustments, if necessary.

question

to keep a strategic plan on track

answer

(1) Engage people, (2) Keep it simple, (3) Stay focused, and (4) Keep moving.

question

Competitive Intelligence:

answer

Gaining information about one's competitors' activities so that you can anticipate their moves and react appropriately.

question

Environmental Scanning:

answer

Careful monitoring of an organization's internal and external environments to detect early signs of opportunities and threats that may influence the firm's plans.

question

SWOT Analysis (AKA Situational Analysis):

answer

A search for the (S)trengths, (W)eaknesses, (O)pportunities, and (T)hreats affecting the organization.

question

Organizational Strengths:

answer

The skills and capabilities that give the organization special competencies and competitive advantages in executing strategies in pursuit of its mission.

question

Organizational Weaknesses:

answer

The drawbacks that hinder an organization in executing strategies in pursuit of its mission.

question

Organizational Opportunities:

answer

Environmental factors that the organization may exploit for competitive advantage.

question

Organizational Threats:

answer

Environmental factors that hinder an organization's achieving a competitive advantage.

question

Forecast:

answer

A vision or projection of the future.

question

Trend Analysis:

answer

A hypothetical extension of a past series of events into the future.

question

Contingency Planning (AKA Scenario Planning & Scenario Analysis):

answer

The creation of alternative hypothetical but equally likely future conditions.

question

Porter's Model for Industry Analysis:

answer

Suggests that business-level strategies originate in five primary competitive forces in the firm's environment: (1) Threats of New Entrants, (2) Bargaining Power of Suppliers, (3) Bargaining Power of Buyers, (4) Threats of Substitute Products or Services, and (5) Rivalry Among Competitors.

question

Porter's Four Competitive Strategies:

answer

(1) Cost-Leadership, (2) Differentiation, (3) Cost-Focus, and (4) Focused-Differentiation.

question

Cost-Leadership Strategy:

answer

To keep costs, and hence prices, of a product or service below those of competitors and to target a wide market.

question

Differentiation Strategy:

answer

To offer products or services that are of unique and superior value compared with those of competitors but to target a wide market.

question

Cost-Focus Strategy:

answer

To keep the costs, and hence prices, of a product or service below those of competitors and to target a narrow market.

question

Focused-Differentiation Strategy:

answer

To offer products or services that are of unique and superior value compared to those of competitors and to target a narrow market.

question

Single-Product Strategy:

answer

A company makes and sells only one product within its market.

question

Focus.

answer

The benefit of a Single-Product Strategy:

question

Vulnerability.

answer

The risk of a Single-Product Strategy:

question

Diversification:

answer

Operating several businesses in order to spread the risk.

question

Unrelated Diversification:

answer

Operating several businesses under one ownership that are not related to one another.

question

Related Diversification:

answer

An organization under one ownership operates separate businesses that are related to one another.

question

Synergy:

answer

The economic value of separate, related businesses under one ownership and management is greater together than the businesses are separately.

question

BCG Matrix:

answer

A means of evaluating strategic business units on the basis of (1) their business growth rates and (2) their share of the market.

question

Stars:

answer

Have high growth rate, high market share--definite keepers.

question

Question Marks:

answer

Risky new ventures--some will become stars, some dogs.

question

Cash Cows:

answer

Have slow growth but high market share--income finances stars and question marks.

question

Dogs:

answer

Have low growth, low market share--should be gotten rid of.

question

Execution:

answer

Consists of using questioning, analysis, and follow-through to mesh strategy with reality, align people with goals, and achieve results promised.

question

The three core processes of business:

answer

People, Strategy, and Operations.

question

The first core process--People:

answer

Consider who will benefit you in the future.

question

The second core process--Strategy:

answer

Consider how success will be accomplished.

question

The third core process--Operations:

answer

Consider what path will be followed.

question

Know your people & your business. Insist on realism. Set clear goals & priorities. Follow through. Reward the doers. Expand the capabilities. Know yourself.

answer

Steps to building a foundation of execution:

question

Decision

answer

choice made from among available alternatives

question

Decision making

answer

process of identifying and choosing alternative courses of action

question

System 1 and 2

answer

Two Systems of Decision Making (Daniel Kahneman-winner of 2002 Nobel Prize in Economics)

question

System 1

answer

intuitive and largely unconscious: operates automatically and quickly; our fast automatic intuitive and largely unconscious mode, as when we detect hostility in a voice or detect that one object is more distant than another

question

System 2

answer

analytical and conscious (slow); filling out a tax form or parking car in narrow space; lazy and tires easily

question

Curse of Knowledge

answer

as our knowledge and expertise grow= less able to see things from an outsider's perspective

question

Rational Model of Decision Making (classical model)

answer

how managers SHOULD make decisions; logical decisions that will further organization's best interest

question

1. identify the problem 2. think of alternative solutions 3. evaluate alternative and select solution 4. implement solution chosen

answer

4 Steps of Rational Decision Making (logical and optimal)

question

Stage 1: Identify the Problem- Actual vs. Desirable

answer

customer complaints, supplier breakdown, staff turnover, etc

question

Problems

answer

difficulties that inhibit the achievement of goals

question

Opportunities

answer

situations that present possibilities for exceeding existing goals

question

Farsighted managers

answer

look past daily problems and seize the moment to actually do better than what is expected

question

diagnosis

answer

analyzing the causes

question

Step 2: Alternative solutions: Obvious & Creative

answer

employers greatest competitive resource? creative employees

question

Step 3: Evaluate Alternative and Select Solution

answer

Evaluate alternative at cost and quality but also at "is it ethical, feasible, effective"

question

1. plan carefully 2. be sensitive to those affected (why it helps to give employees and customers attitude

answer

For implementation to be successful two things:

question

things happen that you didn't expect

answer

Law of Unintended Consequences

question

1. give it more time (allow enough time for adaptability) 2. change it slightly 3. Another alternative 4. start over

answer

If the action is not working? (4)

question

-doesn't describe how managers actually make decisions -assumptions: complete information, no uncertainty, logical unemotional analysis, and best decision for organization

answer

What is wrong with the rational model?

question

it is prescriptive, describing how managers ought to make decisions rather than how they actually make decisions

answer

Non-Rational Decision Making

question

Satisficing and Intuition

answer

Two models of NonRational Decision Making

question

bounded rationality

answer

ability of decision makers to be rational is limited by numerous constraints

question

Satisficing Model

answer

Satisfactory is good enough; seek alternative until they find one that satisfies, but it not optimal

question

Intuition Model

answer

making a choice without the use of conscious thought; holistic hunch- intuition that comes from expertise & automated experience that is based on feelings; good for start up

question

speeds up decision making and resources are limited

answer

Two Benefits of the Intuition Model

question

Drawback of the Intuition Model

answer

difficult to convince others that your hunch makes sense

question

Ethics Officer

answer

someone trained about matters of ethics in the workplace, ethical dilemma

question

Greatest pressure on top executives

answer

maximize shareholder value; follow individual ideas about right and wrong

question

Decision Tree

answer

graph of decisions and their possible consequences; used to create a plan to reach a goal

question

Evidence based management (trump competition)

answer

best evidence—> organizational practice

question

analytics

answer

Purest application of E.B.M is the use of

question

Analytics

answer

sophisticated forms of business data analysis

question

Portfolio

answer

risk of various stocks

question

Time Series Forecast

answer

future data based on historical data

question

Thomas H. Davenport

answer

3 Attributes Among Analytics Competitors: 1. Use of modeling 2. Having multiple applications, not just one 3. Support from the Top

question

Predictive Modeling

answer

predict future behavior and anticipate the consequences of change

question

Big Data

answer

includes not only data in corporate databases, but also web browsing data trails, social network communication, sensor data, and surveillance data

question

Big Data Analysis

answer

process of examining large amounts of data

question

1. Relaxed Avoidance 2. Relaxed Change 3. Defensive Avoidance 4. Panic

answer

How do individuals respond to a decision situation? (ineffective)

question

Relaxed Avoidance

answer

"nothing bad is going to happen to me"; take no action in the belief that there will be no negative consequences Form of complacency: don't see or disregard signs of danger

question

Relaxed Change

answer

"easy way out"; complete inaction will have negative consequences but opts for the first available alternative lowers that risk form of satisficing

question

Defensive Avoidance

answer

"no reason to explore other options"; can't find a good solution and follows by procrastinating, passing the buck "let George do it", and denying any risk of any consequences

question

Panic

answer

frantic to get rid of the problem that can't deal with problem realistically; occurs in crisis situations

question

1. Importance- determine how much priority to give the decision situation 2. Credibility- how much is known about possible threat 3. Urgency

answer

Three Effective Reactions:

question

Deciding to decide

answer

agrees that a decision about a problem is to be made and take effective decision making steps

question

Heuristics

answer

strategies that simplify the process of making decisions

question

Availability Bias

answer

managers use readily available from memory to make judgments

question

Representativeness Bias

answer

tendency to generalize from a small sample or single event

question

Confirmation Bias

answer

when people seek info to support their point of view and discount data that doesn't

question

Sunk Cost Bias

answer

when managers add up all the money already spent on a project and conclude it is too costly to simply abandon it

question

Anchoring and Adjustment Bias

answer

making decisions based on an initial figure

question

Over compliance Bias

answer

people's subjective confidence in their decision making is greater than their objective accuracy

question

Hindsight Bias

answer

view events as being more predictable than they really are

question

Framing Bias

answer

influence by the way a situation or problem is presented to them

question

Escalation of Commitment Bias

answer

increase their commitment to a project despite negative info about it

question

Advantages of Group Decision Making

answer

greater pool of knowledge, different perspectives, intellectual stimulation, better understanding of decision rationale, and deeper commitment to the decision (has to be made up of diverse participants)

question

Disadvantages of Group Decision Making

answer

few people dominate or intimidate, groupthink, and goal displacement

question

Groupthink

answer

group members strive to agree for the sake of unanimity and avoid assessing the decision situation

question

Goal Displacement

answer

primary goal is subsumed by secondary goal

question

Less Efficient

answer

groups take longer, groups use less information and fewer communication channels

question

size affects decision quality

answer

lager group=lower quality of decision; odd number is better

question

they agree and disagree freely and safely= minority dissent (increase innovation within groups)

answer

Group decision is more effective when

question

Knowledge counts

answer

familiar people= make better decisions

question

Reach a consensus

answer

express opinions and reach agreement to support final decision

question

Brainstorming

answer

technique used to help groups generate multiple ideas and alternatives for solving problems

question

Electronic Brainstorming

answer

come together over computer network

question

The Delphi Technique

answer

a group process that uses physically dispersed experts who fill out questionnaires to anonymously generate ideas; face to face judgements are impractical; practical= conflicts likely to impair communications

question

Computer Aided Decision Making

answer

reduce roadblocks to group consensus; decision support system- flexible tool for analysis and helps managers focus on the future

question

strategy (228)

answer

the large scale action plan that affect the organizations vision and are used to set the firm's direction

question

politics (228)

answer

the different behavioral and psychological characteristics of a particular office means learning to understand the organization's culture

question

organizational culture or (228) corporate culture

answer

a system of shared beliefs and values that develop in an organization and guides the behavior of its members it is the "social glue", or the personality of the firm

question

organizational structure (229)

answer

a formal system of task and reporting relationships that coordinates and motivate an organizations members so that they can work together to achieve the firm's goals, there must be consistency among all 6 elements, vision,strategy,culture, structure and internal practices, collective attitudes and behaviors, achievement of goals

question

types of organizational culture (229)

answer

clan adhocracy market hierarchy

question

clan culture (229)

answer

has an internal focus and values flexibility rather then stability and control, like a family style operation, devote resources to hiring and developing their employees, they view costumers as partners

question

adhocracy culture (230)

answer

has an external focus and values flexibility, attempts to create innovative products by being adaptable, creative and quick to respond to change in the marketplace, well suited for startup companies, industries undergoing a constant change, mature companies that need innovation to enhance growth

question

market culture (230)

answer

a strong external focus and values stability and control, driven by competition,costumers, productivity and profits take precedence over employee development and satisfaction

question

hierarchy (230)

answer

has an internal focus, values stability and control over flexibility, these companies will likely have formalized structured work environments aimed at achieving effectiveness through a verity of control mechanisms they measure efficiency, timeliness, reliability in the creation and delivery of products

question

three levels of organizational culture (231)

answer

observable artifacts, espoused values, basic assumptions

question

espoused values (231)

answer

the explicitly stated values and norms preferred by an organization, may be put forth by the founder or top managers

question

enacted values (231)

answer

the values and norms that are actually exhibited in the company

question

core values (231)

answer

basic assumptions that are not observable, represent the core beliefs that employees hold about the company

question

symbol (232)

answer

an object, act, quality, or event,that conveys meaning to others

question

stories (232)

answer

a narrative based on true events which is repeated and can be embellished to emphasize a point, it is an oral history

question

hero (232)

answer

is a person whose accomplishments embody the values of the organization

question

rites and rituals (232)

answer

are the activities and ceremonies, planed and unplanned that celebrate important occasions and accomplishments in the firm's life

question

functions of organizational culture (233)

answer

it gives members of the firm identity it facilitates collective commitment it promotes social system stability it shapes behavior

question

strength perspective (234)

answer

assumes that the strength of a corporate culture is related to its long term financial performance, in a "strong" culture employees adhere to the values because they believe in its purpose, a week culture employees are forced to adhere to values through extensive procedures and bureaucracies

question

fit perspective (234)

answer

assumes that a firms culture must fit with its business or strategic context

question

adaptive perspective (235)

answer

assumes that the most effective cultures help organizations anticipate and adapt to environmental changes

question

organization (238)

answer

is a system of consciously coordinated activities or forces of two or more people

question

three types of organizations (238)

answer

for-profit organizations nonprofit organizations-hospitals, colleges mutual-benefit organization- union, trade associations

question

organization chart (239)

answer

a box-and-lines illustration showing the formal lines of authority and the firm's official position or work specialization

question

vertical hierarchy (239)

answer

a formal vertical hierarchy shows the official communication network, who talks to who

question

horizontal specialization (240)

answer

different jobs or work specialization

question

common elements of organizations (241)

answer

common purpose,coordinated effort, division of labor, hierarchy of authority

question

common purpose (241)

answer

unifies employees or members and gives everyone an understanding of the organizations reason for being

question

coordinated effort (241)

answer

the coordination of individual efforts into group of organization wide effort

question

division of labor (241) work specialization

answer

the arrangement of having a discreet parts of a task done by different people

question

hierarchy of authority (241) chain of command

answer

is a control mechanism for making sure the right people do the right things at the right time

question

unity of command (241)

answer

an employee should report to no more then one manager in order to avoid conflicting priorities and demands

question

span of control (242) span of management

answer

the number of people reporting directly to a given manager, narrow span of control means a manager has a limited number of people reporting, a firm is tall when there are many levels with narrow span of control, a wide span of control is a manager who has several people reporting, flat when there are only a few levels with wide span of control

question

authority (242)

answer

the rights inherent in managerial position to make decisions, give orders, and utilize resources

question

accountability (242)

answer

managers must report and justify work results to the managers above them

question

responsibility (242)

answer

the obligation you have to preform the tasks assigned to you

question

delegation (243)

answer

the process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy

question

line managers (243)

answer

have authority to make decisions and usually have people reporting to them

question

staff personnel (243)

answer

have authority functions, they provide advice, recommendations and research to the line managers

question

centralized authority (243)

answer

important decisions are made by higher level managers, advantages is that there is less duplication of work , and procedures are uniform thus easier to control

question

decentralized authority (243)

answer

important decisions are made by middle-level and supervisory-level managers, decisions are made more quickly increasing flexibility

question

organizational design (244)

answer

concerned with designing the optimal structures of accountability and responsibility that an organization uses to execute its strategies

question

simple structure (244)

answer

has authority centralized in a single person a flat hierarchy few rules and low work specialization, small mom-n-pop shops,landscaping

question

functional structures (244)

answer

people with similar occupational specialties are put together in formal groups

question

divisional structure (245)

answer

people with diverse occupational specialties are put together in formal groups by similar products or services, customers or clients, or geographic region

question

product division (245)

answer

group activities around similar products or services

question

customer divisions (245)

answer

tend to group activities around customer or clients

question

geographic division (245)

answer

group activities around defined regional locations

question

matrix structure (245)

answer

an organization combines functional and divisional chains of command in a grid so that there are two command structures, vertical and horizontal

question

horizontal design (246)

answer

teams or work-groups, permanent or temporary, used to improve collaboration and work on shared tasks by breaking down international boundaries

question

cross-functional teams (247)

answer

when managers from different functional divisions are brought together in teams to solve particular problems

question

boundary-less organization (249)

answer

a fluid, highly adaptive organization whose members linked by information technology, come together to collaborate on common tasks, the collaborators may include co-workers, suppliers, customers and even competitors

question

hollow structure (249) network structure

answer

the organization has a central core of key functions and outsources the other functions to vendors who can do them cheaper or faster, information technology is the glue of this structure

question

modular structure (250)

answer

a firm assembles product chunks or modules provided by outside contractors

question

virtual organization (250)

answer

a firm whose members are geographically far apart, usually working through e-mail, collaborative computing and other computer connections

question

virtual structure (250)

answer

a company outside a company that is created specifically to respond to an exceptional market opportunity that is often temporary

question

contingency design (251)

answer

the process of fitting the organization to its environment, factors that must be considered ; environment, life cycle, link between strategy and structure

question

mechanistic organization (252)

answer

authority is centralized, tasks and rules are clearly specified, employees are closely supervised, works best for companies with a stable environment, McDonald's

question

organic organization (252)

answer

authority is decentralized there are fewer rules and procedures, and networks of employees are encouraged to cooperate and respond quickly to unexpected tasks, they are sometimes called adhocracies because they improvise as they go along, it is a "loose structure"

question

differentiation (253)

answer

the tendency of the parts of an organization to disperse and fragment, all parts specialize so there is little coordination

question

integration (253)

answer

the tendency of the parts of an organization to draw together to achieve a common purpose, frequent communication and coordination of parts

question

organizational life cycle (253)

answer

has a natural sequence of stages, birth, youth, mid-life, maturity

question

birth stage (253)

answer

stage one, non-bureaucratic, the stage which an organization is created

question

youth stage (253)

answer

stage 2, per-bureaucratic, stage of growth and expansion

question

mid-life stage (253)

answer

stage 3, bureaucratic, a period of growth evolving into stability

question

maturity stage (254)

answer

stage 4, very bureaucratic, large and mechanistic, the danger is lack flexibility and innovation

Management: A Practical Introduction; 7th Edition Chapter – Flashcards

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