principlesof management mid term(1-9)

Flashcard maker : Lily Taylor
New Competitive Landscapes
four ongoing challenges that characterize the current business landscape: globalization, technological change, the importance of knowledge and ideas, and collaboration across organizational boundaries.
the sources of competitive advantage for a company
Because business is a competitive arena, you need to deliver value to customers in ways that are superior to what your competitors do. Competitive advantages result from
innovation,
quality,
service,
speed,
cost,
and sustainability.
the functions of management
planning, organizing, leading, and controlling
planning
is analyzing a situation, determining the goals that will be pursued, and deciding in advance the actions needed to pursue these goals.
organizing
is assembling the resources needed to complete the job and coordinating employees and tasks for maximum success.
leading
is motivating people and stimulating high performance.
controlling
is monitoring the progress of the organization or the work unit toward goals and then taking corrective action, as necessary.
the functions of management more broadly require
creating strategic value, building a dynamic organization, mobilizing people, and learning and changing.
management levels
top- level , middle – level , and low level
top level managers
the senior executives responsible for the organization’s overall management.
middle – level managers
tactical managers translate general goals and plans into more specific objectives and activities.
low level mangers
Frontline, operational managers are lower-level managers who supervise operations.
managers at all levels must perform a variety of interpersonal, informational, and decisional roles.
true
the best managers think strategically and operate like complete business people.
true
To execute management functions successfully, managers need what skills?
technical skills, conceptual and decision skills, and interpersonal and communication skills.
a technical skill
is the ability to perform a specialized task involving certain methods or processes.
conceptual and decision skills
help the manager recognize complex and dynamic issues, analyze the factors that influence those issues or problems, and make appropriate decisions.
interpersonal and communication skills
enable the manager to interact and work well with people.
As you rise to higher organizational levels, which levels become less important and more important
technical skills tend to become less important and conceptual skills become more important,
interpersonal and communication skills remain extremely important at every level
true
macroenvironment
is composed of economic, legal and political, technological, demographic, social, and natural environment forces that influence strategic decisions.
micro (competitive) environment
is composed of forces closer to the organization, such as current competitors, new entrants, substitute and complementary products, suppliers, and customers.
what is the simplest distinction between the macroenvironment and the competitive environment is in the amount of control a firm can exert on external forces?
Macroenvironmental forces such as the economy and social trends are much less controllable than are forces in the competitive environment such as suppliers and customers.
Porter’s 5 Forces
risk of new entrants, threat of substitutes, bargaining power of buyers, bargaining power of suppliers all effect rivalry among established firms.
bargaining power of buyers
a measure of the influence that customers have on a firm’s prices
bargaining power of suppliers
a measure of the influence that suppliers of parts, materials, and services to firms in an industry have on the prices of these inputs
rivalry among firms
A high level of rivalry typically results in price competition
new entrants
The threat of ________ is considered high when it is easy for new suppliers to start selling in a market.
Most important managerial decisions
are ill-structured and characterized by uncertainty, risk, and conflict.
decision-making process
identifying and diagnosing the problem
generating alternative solutions
evaluating alternatives
a solution is chosen
implement the decision
evaluate how well the decision is working
dentifying and diagnosing the problem (or opportunity)
requires recognizing a discrepancy between the current state and a desired state and then delving below surface symptoms to uncover the underlying causes of the problem.
generating alternative solutions
requires adopting ready-made or designing custom-made solutions.
evaluating alternatives
means predicting the consequences of different alternatives, sometimes through building scenarios of the future.
a solution is chosen
the solution might maximize, satisfice, or optimize
implement the decision
this phase requires more careful planning than it often receives.
evaluate the decision
This means gathering objective, valid information about the impact the decision is having.
true or false = true
If the evidence suggests the problem is not getting solved, either a better decision or a better implementation plan must be developed.
vigilance
A process in which a decision maker carefully executes all stages of decision making
intuition
Personal perception or feeling used to solve a problem (as opposed to logic).
decision biases
Tendency to base judgements on information that is readily available
steps in the planning process
situational analysis, alternative goals & plans using SMART Goals, goal & plan evaluation, goal & plan selection, implementation, monitor & control
situation analysis
helps identify and diagnose issues and problems and may bring to the surface alternative goals and plans for the firm.
implementation
communicating the plan to employees, allocating resources, and making certain that other systems such as rewards and budgets support the plan.
strategic planning process,
making decisions about the organization’s long-term goals and strategies.
ethical decision making
Making ethical decisions requires moral awareness, moral judgment, and moral character.
ethical issues
should consider societal and human needs in their business decisions because corporations are members of society and carry a wide range of responsibilities. Critics of corporate responsibility believe managers’ first responsibility is to increase profits for the shareholders who own the corporation.
corporate responsibility pyramid
Includes everything from hiring minority workers to making safe products, minimizing pollution, using energy wisely, and providing a safe work environment.
entrepreneurs
are individuals who establish a new organization without the benefit of corporate support.
intrapreneurs
are new venture creators working inside big companies
new ventures
a company’s business model is based on using its technology to innovate new kinds of products for related markets.
business plans
detailed written statement describing nature of business, target market, advantages and resources/qualifications
types of structures
on the basis of function, division (product, customers, or geographic), matrix, and network. Each form has advantages and disadvantages.
standardization
Establishing common routines and procedures that apply uniformly to everyone
Integration
The degree to which differentiated work units work together and coordinate their efforts
Coordination
The procedures that link the various parts of an organization for the purpose of achieving the organization’s overall mission
Logistics
The movement of the right goods in the right amount to the right place at the right time

Get instant access to
all materials

Become a Member