question

• What is the purpose of Management by Objectives (MBO)?

answer

o deals with alignment of subordinate objectives with that of management o systematic and organized approach that aims to increase organization performance by aligning the subordinate objectives throughout the organization with the overall goals set by management

question

Understand the different types of strategies a firm can chose to implement

answer

o Overall cost leadership strategy, differentiation strategy, focus strategy

question

• What is a straddling strategy?

answer

o Tries to implement two strategies at once o Firms with a straddling strategy face what problems? • Differing interests?

question

• Know Porter's Five Forces and what each implies

answer

o Threat of substitute products or services - power of customers to purchase alternatives • Ease with which buyers can switch to another product that does the same thing • Game systems, switching costs- apple products o Buyer power- the power of customers to drive down prices • Represents influence buyers have over firms • Firms seek the highest attainable profit margins, buyers however seek higher quality and better service at the lowest possible price • Cable provider vs candy industry o Threat of new entrants- the power of competitors to enter a market • The likelihood of new entry is a function of the extent to which barriers to entry exist • Toms shoes vs ford motors auto manufacturing o Supplier power- power of suppliers to drive up prices of materials • High supplier power means can largely set the terms and conditions • Potential ways suppliers can exert their power over firms: increasing prices, decreasing quality o Rivalry amongst existing competitors- power of competitors • Measures degree of competition between firms • Factors most likely affect firm rivalry: numerous competitors, slow industry grown, high fixed costs, lack of differentiation, high exit barriers, and high strategic stakes

question

o Understand how each of the forces affects industry attractiveness

answer

• Competitive advantage- cost uniqueness • Scope of operations broad target narrow target

question

• What is the Balanced Scorecard Framework?

answer

o Framework designed to translate an organization's mission and vision statements and overall business strategy into specific, quantifiable goals and objectives and to monitor the organization's performance in terms of achieving those goals o Customers- satisfaction and retention- o Learning and growth- explore the effectiveness of management in terms of measures of employee satisfaction and retention and information system performance) o Internal processes- looks at production and innovation- measuring performance in terms of maximizing profit from current products and following indicators for future productivity o Financial performance- most traditional, includes assessments of measures such as operating costs and return on investment o Leading indicators- measures that might be examined to predict poor performance of organization in the future- employee turnover o Lagging indicators- reflect performance that is in decline- decrease in sales

question

• Understand the concept of diversification

answer

o Number of different businesses that an organization is involved in o Related-occurs when a firm operates multiple business within the same industry or unrelated- occurs when a firm engages in businesses in different industries that lack similarity between each other

question

• What is organizational structure?

answer

o What are the various types of organizational structures? o Mechanistic-bureaucracy organic- structures are flexible and decentralized with low levels of formalization where communication lines are more fluid and flexible

question

• Know the building blocks of structure

answer

o Centralization,-formal decision making authority is held by a few people, usually at the top vs. dispersed- decentralized o Formalization- written rules and explicit regulations- extent to which an organization's policies, procedures, job descriptions and rules are written and explicitly articulated , o hierarchical levels- tall, flat more freedom o departmentalization- functional structures group jobs based on similarity in functions, stable- less producs divisional- departments represent the unique products, services, customers, or geographic locations the company is serving - each product or service has its own department turbulent environments o organizational structure -mechanistic- mcdonalds- organic- google o Mechanistic- resemble a bureaucracy and are highly formalized and centralized- most organizations follow a mechanistic structure o Organic- flexible and decentralized with low levels of formalization where communication lines are more fluid and flexible.

question

• Understand the contemporary forms of organizational structure

answer

o Matrix organizations-balance a traditional functional structure with a product structure... combination of functional and divisional structures- people become responsible to two managers- increase communication and cooperation among departments, quick responses to technical problems and customer demands o Boundaryless learning-eliminate traditional barriers between departments and the external environment.....modular (all nonessential functions are outsourced) vs. strategic alliances- (two or more companies combine their efforts to create a partnership that is beneficial for both parties) o Learning organiztions actively seek to acquire knowledge and change behavior as a result of the newly acquired knowledge.....experimenting, learning new things, reflecting on new knowledge take leading business managers and put them in charge of emerging business opportunities google cafes and 10% projects o Bob buddig- it is very important for an organization to be flexible and able to change

question

• Understand the elements of SWOT analysis, and the purpose of each element

answer

o Strengths- helpful to achieving objective- internal origin - attributes of the organization o Weaknesses- harmful to achieving the objective- internal origin (attributes of the organizations o Opportunities- helpful to achieving the objective- external origin- attributes of the environment o Threats- harmful to achieving the objective, external origin - attributes of the environment

question

• Know the internal and external industry analysis tools

answer

o Internal- value chain, vrio o External- pestel, industry analysis

question

• Know what the value chain, VRIO, PESTEL, and industry analysis tools are and what purpose they serve

answer

o Pestel- political, economic sociocultural, technological, environmental, and legal - directs managers to collect information about and analyze each environmental dimension to identify the broad range of threats and opportunities facing the organization

question

Ecigs-

answer

being aware of market changes what's going on out there so you can respond to adapt to what they need

question

o Industry analysis

answer

micro environment- competitive - organization's industry and the markets related to it

question

o Industry microenvironment

answer

consists of stakeholder groups that a firm has regular dealings with

question

o Primary purpose for internal analysis

answer

is to understand the unique resources, capabilities, and core competencies of organizations that may enable them to outperform their competitors overtime

question

Value chain

answer

primary and support activities that an organization uses to create value in the form of products or services primary activities involve creation and distribution of goods and services (direct value) support activities are important supplementary aids to primary activities (indirect value)

question

VRIO

answer

value,- if it allows the firm to exploit opportunities or negate threats in the environment - pixars human capital, coke's brand name rarity,-a resource is rare if it is not widely possessed by other competitors- monsanto's patents inimitability,-difficult to imitate or to create ready substitutes for it. Most difficult criteria to meet- toms shoes- example against. Organization- possession of this is a necessary but not sufficient condition to achieving a sustained competitive advantage, firm must have organizational capability to exploit the resources. • Resources- what an organization owns- tangible, intangible • Capabilities- what firms can do- dynamic capability

question

• What is organizational culture?

answer

o System shared assumptions, values and beliefs that indicate appropriate and inappropriate behavior within a given organization- organizing, organizational designs- culture has been found to relate to increased firm performance o Understand the levels of organizational culture o Artifacts- are on the surface and are visible tangible aspects of organizational culture o Values shared principles, standards, and goals o Underlying Assumptions, lie below awareness assumptions, are taken for granted and reflect beliefs about human nature and reality

question

o Understand the 7 dimensions of culture

answer

• Organizational culture profile organizations hold up can help us identify measure and manage culture • Innovative cultures- flexible, adaptable, experiment with new ideas • Aggressive cultures-value competitiveness and outperforming competitors • Outcome oriented cultures-emphasize achievement, results, action as important values • Stable cultures-predictable, rule oriented, bureaucratic stable environments may be a misfit for changing dynamic environments • People oriented cultures-fairness, supportiveness, respect for individual rights low turnover • Team oriented cultures-collaborative and emphasize cooperation among employees • Detail oriented cultures- emphasize precision and paying attention to detail-differentiate themselves in hospitality industry o Physical structures, rituals/ ceremonies, stories, language, beliefs, values-shared principles, standards and goals espoused- what members of an organization say they value enacted- reflected in the way individuals actually behave, assumptions o Artifacts are easy to copy, values and underlying assumptions are difficult to mimic from other organizations

question

• Know how organizational culture is created, and how it is maintained

answer

o Attraction, selection, attrition, onboarding, leadership, reward systems o Culture provides a sense of identity to members and increases their commitment to the organization o Culture- sense-making device for organization members o Culture reinforces values of organization o Culture serves a control for shaping behavior o Understand the attraction-selection-attrition (ASA) model • Attraction- employees are attracted to organizations where they will fit in • Selection- companies are looking for employees that will fit in the culture of the company • Attrition- natural process where candidates who do not fit in with the culture will leave the company • Process through which new employees learn attitudes, knowledge, skills, and behaviors required to function effectively within an organization o Onboarding- employees can feedback and network o Firm's can use formal orientation programs o Insiders can mentoring by supervisors and coworkers

question

• What is organizational change?

answer

o Movement of an organization form one form to another- many forms o Culture, company structure, strategy, policies, procedures, technology, culture

question

• Understand why organizations change (i.e., for what purposes)

answer

o Workplace demographics o Technology o Globalization o Changes in market conditions o Growth o Poor performance

question

• Understand how organizations change

answer

o Employee resistance- growth active, most negative reaction to a proposed change attempt o Passive disturbed by these changes without voicing these opinions o Compliance- go along with little enthusiasm o Enthusiastic support- defenders of the new way and those who actually encourage others to give support to the change effort -disrupted habits personality feelings of uncertainty fear of failure personal impact of change prevalence of change perceived loss of power cognitive dissonance o Resistance to change may prevent improving the status quo o Unfreeze, change, refreeze

question

• Know the change process model

answer

o Continue to provide support create small wins eliminate obstacles o Publicize success, reward change adoption, embrace continuous change

question

Smart goals

answer

specific, measurable, aggressive, realistic, time-bound More powerful way of controlling and managing employee behaviors than organizational rules and regulations align values with organization's Cultures that emerge within different departments, branches, or geographic locations- subcultures

question

Counterculture

answer

shared values and beliefs that are in direct opposition to the values of the broader organizational culture

question

Leadership

answer

role modeling, reactions to the actions of others around them

question

Results performance behaviors seniority

answer

types of behaviors are rewarded or ignored set the tone for the culture.

question

P.O.L.C Framework

answer

Planning, Organizing, Leading,Controlling

question

Planning

answer

1.Vision and mission 2. Strategizing 3. Goals & Objectives

question

Organizing

answer

1.Organization design 2. Culture 3. Social Networks

question

Leading

answer

1. Leadership 2. Decision making 3. Communications 4. Group/ Teams 5. Motivation

question

Controlling

answer

1.System/Process 2. Strategic human resources

question

Goals

answer

are outcome statements that tend to be broad and vague

question

Objectives

answer

are precise and measureable actions that support the completion of goals

question

Performance measures in the balanced scorecard can include both leading and lagging indicators - leading indicators

answer

measures that might be examined to predict poor performance of the organization in the future (such as increase in employee turnover)

question

lagging indicators

answer

flect performance that is in decline (such as a decrease in sales)

question

THE BALANCED SCORECARD Key Takeaways

answer

A framework that helps align mission, vision, and strategy to goals and objectives Looks at multiple performance measures, not just financial ones

question

What Are SMART GOALS?

answer

Specific Measurable Aggressive Realistic Time-bound

question

Specific

answer

A specific objective has a much better chance of being accomplished than a general one To set a specific objective, you must answer the six 'W' questions: What: what do I want to accomplish Where: Identify a location When: Establish a time frame Which: Identify requirements and constraints Why: Specific reasons, purpose or benefits of accomplishing the objective Disney: \"Increase the number of collaborative projects between Disney and Pixar employees by 50% next year\" versus \"become more culturally integrated\"

question

Measureable

answer

Establish criteria for measuring progress toward the attainment of each objective you set Questions to ask: How much? How many? How will I know when it is accomplished? Disney: The number of projects that both cultures do collectively can be quantified

question

Aggressive

answer

Shoot for the moon. Even if you miss, you'll land among the stars\" Improves motivation, and the likelihood you'll still hit a high level target

question

Realistic

answer

To be realistic, an objective must represent an objective toward which you are both willing and able to do Disney: What if they said, \"Increase the number of collaborative projects between Disney and Pixar employees by 100% next year\"? Most likely unattainable Impact employee buy-in/motivation

question

Time-bound

answer

An objective should be grounded within a time frame With no time frame, there's no sense of urgency

question

Microenvironment

answer

refers to an organization's industry and the markets related to it The industry microenvironment consists of stakeholder groups that a firm has regular dealings with

question

Tangible Resources

answer

Assets that can be seen and quantified. (Ex. Production equipment, manufacturing plants, property)

question

Intangible Resources

answer

Assets that are difficult to see, touch or quantify. (Ex. Firms reputation, organizational culture, unique firm history)

question

Dynamic capability

answer

When a firm is skilled at continually updating its array of capabilities to keep pace with changes in its environment E.g., Coca-Cola continuously builds new brands/products as the soft-drink market evolves

question

Value chain:

answer

The primary and support activities that an organization uses to create value in the form of products or services Useful tool for taking stock of organizational capabilities.

question

Primary activities provide direct value

answer

Secondary activities provide indirect value

question

VRIO Analysis

answer

Valuable A resource is said to be valuable if it allows the firm to exploit opportunities or negate threats in the environment E.g. Pixar's human capital, Coke's brand name Rare A resource is rare if it is not widely possessed by other competitors E.g. Monsanto's patents Inimitable A resource is inimitable if it is difficult to imitate or to create ready substitutes for it The most difficult criteria to meet E.g. TOMS shoes (example against) Organization Possession of the above criteria is a necessary but not sufficient condition to achieving a sustained competitive advantage The firm must have the organizational capability to exploit the resources

question

Intended Strategy

answer

Strategy that is initially thought of by managers and impetus for initial attempts at strategy implementation

question

Emergent Strategy

answer

A pattern of action that develops over time in the absence of mission, vision and goals, or in spite of mission, vision and goals or in addition to what was conceived of in the intended and deliberate strategies. (Result of managers interpretation of external environment and how the intended strategy is affected)

question

Deliberate Strategy

answer

A plan of action, that flows from the intended strategy, that an organization implements to support the mission, vision and goals

question

Realized Strategy

answer

Actual strategy that is implemented. Is a result of the deliberate and emerging strategies.

question

Types of Strategy

answer

A firm must choose to embrace one strategy, or risk not having a strategy at all Overall cost-leadership strategy Differentiation strategy Focus strategy

question

Centralization

answer

Formal decision making authority is held by a few people, usually at the top

question

Decentralization

answer

Decision making authority isdispersed throughout the organization

question

Formalization

answer

is the extent to which an organization's policies, procedures, job descriptions, and rules are written and explicitly articulated

question

Formalization Advantages: Disadvantages:

answer

Advantages: Makes employee behavior predictable Reduces ambiguity Provides direction to employees Disadvantages: May reduce innovation Employee motivation Job satisfaction Pace of decision making

question

High formalization generally means less creativity.

answer

Creativity

question

Hierarchical Levels Tall

answer

Several layers of management between frontline employees and the top level Fewer employees report to each manager Greater opportunities for managers to supervise and monitor employee activities

question

Flat

answer

Few management layers Larger number of employees reporting to each manager Can lead to greater levels of freedom for each employee

question

Advantages of Flat Organizations

answer

are successfully using flat structures within stores to build an employee attitude of job involvement and ownership. Disadvantages Greater levels of role ambiguity May not satisfy job security needs of employees Limited advancement opportunities

question

Departmentalization Functional structures

answer

group jobs based on similarity in functions -Marketing -Manufacturing -Finance -Accounting -Human Resources -Information Technology

question

Divisional structures

answer

departments represent the unique products, services, customers, or geographic locations the company is serving Each unique product or service the company is producing will have its own department

question

Advantages of Functional Structure:

answer

Best for a company that does not have a large number of products and services requiring special attention Perform better in stable environments

question

Advantages of Divisional Structure

answer

More agile Perform better in turbulent environments

question

Mechanistic Structure

answer

Those structures that resemble a bureaucracy and are highly formalized and centralized Most organizations follow a mechanistic structure

question

Organic Structure

answer

Those structures that are flexible and decentralized with low levels of formalization where communication lines are more fluid and flexible

question

Mechanistic

answer

Resemble a bureaucracy Highly formalized and centralized Rigid and resist change Unsuitable for innovativeness and limit individual autonomy and self-determination Maximizes efficiency and cost

question

Organic

answer

Flexible and decentralized Low levels of formalization Communication lines are fluid and flexible Employee job descriptions are broader Related to higher levels of job satisfaction Conducive to entrepreneurial behavior and innovativeness

question

Contemporary Forms of Organizational Structures

answer

Matrix Organizations Boundaryless Organizations Learning Organizations

question

Matrix Organizations

answer

Matrix Organizations balance a traditional functional structure with a product structure A combination of the functional and divisional structures Individuals who work in a matrix organization become responsible to two managers A combination of the functional and divisional structures Individuals who work in a matrix organization become responsible to two managers The project manager The functional area manager Advantages Facilitates the use of specialized personnel, equipment and facilities Provides professionals with a broader range of responsibility and experience Disadvantages Can cause uncertainty and lead to intense power struggles Working relationships become more complicated Decisions may take longer Two managers per individual can result in power struggles

question

Boundaryless Organizations

answer

Boundaryless Organizations eliminate traditional barriers between departments and the external environment

question

Learning Organizations

answer

Learning Organizations actively seek to acquire knowledge and change behavior as a result of the newly acquired knowledge

question

The purpose of a SWOT analysis is to analyze: A.The business environment in which an organization operates. B.The strategic capability of an organization. C.The business environment and the strategic capability of an organization relative to its competitors. D.The competitive advantages of competitors

answer

C.The business environment and the strategic capability of an organization relative to its competitors.

question

VRIO

answer

An internal analysis tool used to assess organizational capabilities Valuable Rare Inimitable Organization

question

The Balanced Scorecard focuses on four types of measures: A.Internal Measures, External Measures, Financial Measures, and Performance Measures B. Customers, Learning and Growth, Internal Processes, and Financial Measures C.Internal Processes, Managerial Performance, Customers, Financial Measures

answer

B. Customers, Learning and Growth, Internal Processes, and Financial Measures

question

Organizational Change

answer

The movement of an organization from one form to another Organizational change can take many forms - company structure -strategy -policies -procedures -technology -culture

question

What are the primary reasons why organizational change fails?

answer

Employee resistance

question

Active Resistance

answer

The most negative reaction to a proposed change attempt

question

Passive Resistance

answer

Being disturbed by changes without necessarily voicing these opinions

question

Compliance

answer

Going along with proposed changes with little enthusiasm

question

Enthusiastic support

answer

Defenders of the new way and those who actually encourage others to give support to the change effort

question

Why Do People Resist Change?

answer

-Disrupted Habits -Personality -Feelings of Uncertainty -Fear of Failure -Personal Impact of Change -Prevalence of Change -Perceived Loss of Power

question

Cognitive Dissonance

answer

The mental stress or discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time, or is confronted by new information that conflicts with existing beliefs, ideas, or values -When inconsistency (dissonance) is experienced, individuals tend to become psychologically uncomfortable and are motivated to attempt to reduce this dissonance

question

What can organizations do before change occurs to prepare employees?

answer

Communicate a Plan for Change Develop a Sense of Urgency Build a Coalition Provide Support Allow Employees to Participate

question

Executing and Facilitating Change

answer

Continue to provide support Create small wins Eliminate obstacles

question

What is Organizational Culture?

answer

A system of shared assumptions, values, and beliefs that indicate appropriate and inappropriate behavior within a given organization -It is related to the second of the three facets comprising the P-O-L-C function of ORGANIZING -The culture of the organization is closely linked to organizational design

question

Levels of Organizational Culture Artifacts

answer

are on the surface, and are visible, tangible aspects of organizational culture Physical Structures Rituals/ Ceremonies Stories Language Social prescriptions of desired behavior Demonstrate that organizational objectives are attainable -Rituals and Ceremonies Rituals programmed routines e.g., conducting meetings Ceremonies planned activities for an audience e.g., award ceremonies -Organizational Language Words used to address people, describe clients, etc. E.g., Zappos refers to employees as 'partners' Leaders use phrases and metaphors as cultural symbols e.g.. General Electric's \"grocery store\" - Jack Welch

question

Values

answer

Shared principles, standards, and goals

question

Assumptions

answer

lie below awareness. Assumptions are taken for granted, and reflect beliefs about human nature and reality

question

Values

answer

Shared principles, standards and goals Two types: Espoused: what members of an organization say they value Enacted: reflected in the way individuals actually behave

question

Espoused

answer

what members of an organization say they value

question

Enacted:

answer

reflected in the way individuals actually behave

question

Functions of Organizational Culture

answer

Culture provides a sense of identity to members and increases their commitment to the organization Culture is a sense-making device for organization members Culture reinforces the values of the organization Culture serves as a control for shaping behavior

question

Culture and Centralization

answer

employees. Given this information, would your organization benefit from a high degree of centralization? NO!

question

Culture and Formalization

answer

E.g., Your organization has a culture that emphasizes employee autonomy. Given this information, would your organization benefit from a low degree of formalization? YES!

question

Culture

answer

is a more powerful way of controlling and managing employee behaviors than organizational rules and regulations

question

Organizational culture

answer

A system of shared assumptions, values, and beliefs that indicate appropriate and inappropriate behavior within a given organization Levels of Culture? Artifacts Values Underlying assumptions

question

Dimensions of Culture

answer

The values that organizations hold can help us identify, measure and manage culture

question

Organizational Culture Profile (OCP)

answer

Typology for classifying organizational cultures Culture is represented by 7 distinct values

question

Dimensions of Culture

answer

Innovative cultures Aggressive cultures Outcome-oriented cultures Stable cultures People-oriented cultures Team-oriented cultures Detail-oriented cultures

question

Innovative Cultures

answer

Flexible Adaptable Experiment with new ideas Type of hierarchal structure? Tends to be flat Having an innovative culture does not necessarily imply that you will outperform competitors

question

Aggressive Cultures

answer

Companies with aggressive cultures value competitiveness and outperforming competitors Microsoft Faced numerous antitrust lawsuits and disputes with competitors How can you tell if a firm has an aggressive culture? Language \"we will kill our competition\" \"we are going to cut off Netscape's air supply...everything they are selling we are going to give away\" Legal trouble E.g., Bundling of internet explorer with MS Windows Operating System- squeezed out Netscape Navigator

question

Aggressive or Innovative?

answer

Aggressive culture tends to Result in incremental gains (i.e., reactive instead of proactive) Negative narrative extended to customer Lower employee morale

question

Outcome-Oriented Cultures

answer

Companies that have outcome-oriented cultures emphasize achievement, results, and action as important values Best Buy emphasizes sales performance Closely monitor sales performance Hold employees accountable for reaching objectives Instituted a Results Oriented Work Environment (ROWE) \"In return for absolute freedom, workers would need to produce\" \"A worker should be free to wake up, look at rush-hour traffic, and decide she'll be more productive if she stays home that day\" Any problems with a system? Requires self-motivated employees Could impede employee collaboration

question

Stable Cultures

answer

Companies that have stable cultures are: Predictable Rule-oriented Bureaucratic GM Slow decision making Several meetings for key decisions Slow adoption of new technology or to changing environment (e.g., Hummer) These cultures perform best in stable environments, and may be a misfit for changing, dynamic environments

question

People-Oriented Cultures

answer

Companies that have people-oriented cultures value: Fairness Supportiveness Respect for individual rights Starbucks Pays above minimum wage Full health benefits, stock awards, and free coffee for ALL employees \"Starbucks College Achievement Plan\" People tend to stay longer in such organizations (i.e., low turnover)

question

Team-Oriented Cultures

answer

Companies that have team-oriented cultures are collaborative and emphasize cooperation among employees Southwest Airlines Cross-trains employees so they are capable of helping one another when needed Train intact teams Only hire team players

question

Detail-Oriented Cultures

answer

Companies that have detail-oriented cultures emphasize precision and paying attention to detail Such a culture gives a competitive advantage to companies in the hospitality industry by helping them differentiate themselves from others A culture that is characterized in the OCP framework as emphasizing precision and paying attention to details The ritz Keeps records of all customer requests such as which news paper the customer prefers or what type of pillow the customer uses

question

Strength of Culture

answer

A strong culture is one that is shared by organizational members (aligned values) The stronger a company's culture, the more likely it is to affect the way employees think and behave. A strong culture can improve or hinder performance

question

Challenges of a Strong Culture

answer

Difficult to change E.g., Home Depot Can be a liability during a merger as each separate culture must merge together

question

Multiple Cultures Within an Organization

answer

Cultures that emerge within different departments, branches, or geographic locations are called subcultures. Sometimes, a subculture may take the form of a counterculture, shared values and beliefs that are in direct opposition to the values of the broader organizational culture.

question

How are Cultures Maintained?

answer

Attraction Selection Attrition Onboarding Leadership Reward systems

question

The ASA Framework

answer

Attraction Selection Attrition

question

Attraction

answer

Employees are attracted to organizations where they will fit in

question

Selection

answer

Companies are looking for employees that will fit in the culture of the company.

question

Attrition

answer

The natural process where candidates who do not fit in with the culture will leave the company

question

Learning Culture Through Onboarding

answer

The process through which new employees learn the attitudes, knowledge, skills, and behaviors required to function effectively within an organization -Onboarding Methods What employees can do=Feedback seeking & Networking What Firm's can do=Use of formal orientation programs What insiders can do=Mentoring by supervisors and coworkers

question

Leadership

answer

What leaders do directly influences the cultures of their organizations Part of the leader's influence over culture is through role modeling Leaders also shape culture by their reactions to the actions of others around them

question

Rewards Influence Culture

answer

The types of behaviors that are rewarded or ignored set the tone for the culture Behaviors? Results? Performance? Seniority?

question

What is diversification?

answer

Related Diversification occurs when a firm operates multiple business within the same industry Unrelated Diversification occurs when a firm engages in businesses in different industries that lack similarity between each other

question

The Balanced Scorecard focuses on four types of measures:

answer

1.Customers (looks at customer satisfaction and retention) 2.Learning and growth (explore the effectiveness of management in terms of measures of employee satisfaction and retention and information system performance) 3.Internal processes (looks at production and innovation, measuring performance in terms of maximizing profit from current products and following indicators for future productivity) 4.Financial performance (most traditional; includes assessments of measures such as operating costs and return-on-investment)

question

P.E.S.T.E.L

answer

Political: Economic Sociocultural Technological Environmental Legal

question

PESTEL framework

answer

directs managers to collect information about, and analyze, each environmental dimension to identify the broad range of threats and opportunities facing the organization

question

Political:

answer

Political: Using trade agreements as a loophole to skirt regulatory issues

question

Economic

answer

Recession proof Shrinking developed markets Growing emerging markets

question

Sociocultural

answer

Changing cultural trends (fewer people are smoking cigarettes)

question

Technological

answer

Electronic cigarettes

question

Environmental

answer

Perhaps draughts that hurt supplier

question

Legal

answer

Increasing regulation (opportunity - focus on developing countries)

question

PESTEL provides you with a good sense of the broader macro-environment

answer

Industry Analysis informs you about the organization's micro-environment (competitive) environment

question

Porters five

answer

Supplier power= The power of suppliers to drive up prices of materials Threat of substitute products or services = The power of customers to purchase alternatives Threat of new Entrants=The power of comparators to enter a market. Buying power=the power of customers to drive down prices Rivalry amongst existing competitors=the power of competitors

question

Rivalry Amongst Competitors

answer

This measures the degree of competition between firms Factors most likely to affect firm rivalry: numerous competitors, slow industry growth, high fixed costs, lack of differentiation, high exit barriers, and high strategic stakes

question

Threat of Entrants

answer

The likelihood of new entry is a function of the extent to which barriers to entry exist TOMS shoes (footwear/apparel) vs. Ford Motors (Auto manufacturing.)

question

Bargaining Power of Buyers

answer

Represents the influence buyers have over firms Firms seek the highest attainable profit margins, buyers (customers) however, seek higher quality and better service at the lowest possible price (Cable provider industry vs. candy industry)

question

Bargaining Power of Suppliers

answer

High supplier power means they can largely set the terms and conditions Potential ways suppliers can exert their power over firms: increasing prices, decreasing quality, etc.

question

Threat of Substitutes

answer

The ease with which buyers can switch to another product that does the same thing E.g., Game systems Switching costs - (Apple products)

question

Environmental analysis

answer

is a key input into strategy formulation

question

PESTEL provides

answer

understanding of the macro-environment

question

Industry analysis provides

answer

understanding of the micro-environment

question

primary purpose for internal analysis

answer

is to understand the unique resources, capabilities, and core competencies of organizations that may enable them to outperform their competitors overtime. Two tools for internal analysis: Value Chain VRIO

question

Tangible Resources

answer

Assets that can be seen and quantified. (Ex. Production equipment, manufacturing plants, property)

question

Intangible Resources

answer

Assets that are difficult to see, touch or quantify. (Ex. Firms reputation, organizational culture, unique firm history)

question

Value chain:

answer

The primary and support activities that an organization uses to create value in the form of products or services

Mangement Exam 2

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