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35 Cards in this Set
- Front
- Back
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HISTORY OF DIVERSITY IN CORPORATIONS |
1970s - being diverse was a legal duty 1980s - being diverse is a moral responsibility millennium - diversity is good business practice |
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FIVE BUSINESS BENEFITS OF DIVERSITY |
1. We avoid costly lawsuits 2. It gives us a variety of points of view 3. We have a wider range of creative and innovative ideas 4. We get an increased ability to attract and retain valuable employees 5. We are better tuned into the needs of our diverse customers |
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INTERNATIONAL EXPANSION |
The fundamental question of international business: "To what extent do we customize our products for different national cultures, versus standardizing our products worldwide for global efficiency?" -Multi domestic -Global strategy |
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Multi domestic |
-Customize products in every local culture. - This is effective |
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Global Strategy |
-Strategy of selling the same product everywhere -This is efficient |
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Low Cost or Cost Leader |
Bottom of the market, basic products Requires much efficiency Low profit margin, high volume business |
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Differentiation |
Top of the market, luxury products Requires much effectiveness High profit margin, low volume business model |
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How do we choose whether to pursue a low-cost or a differentiation strategy? |
efficient = low cost effective = differentiation |
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Risk in low cost and differentiation strategy |
Stuck in the middle enhance your low cost product or cheapen your differentiated product to the point where you no longer stand out from the competition |
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Classical method/model |
Assumes that we can... 1. identify all possible alternatives 2. evaluate all possible alternatives using pure logic 3. forecast the consequences of every alternative 4. be perfectly rational, logical and analytical in choosing the one best course of action |
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Administrative Method/model |
for a world that is uncertain, risky, messy. It assumes that... 1. we are limited in our ability to be perfectly rational and logical: limits of time, money, brain power. This is called "bounded rationality" 2. we have incomplete, ambiguous (differing interpretations) information 3. instead of being perfectly rational, logical and analytical in choosing the one best option, we engage in satisfying: choosing the first good enough alternative |
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Decision making in groups |
groups tend to reduce the biases of individuals, and they tend to have greater combined skills and abilities than individuals. BUT groups can fall into the trap of groupthink. |
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Groupthink |
when a group of people agrees to something without really thinking through what they're doing. Like a mob mentality. |
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Four conditions when groupthink is likely to occur: |
1. there is high emotion in the group 2. there is pressure to have unanimous consensus 3. the culture of the group is not tolerant of diversity, criticism or innovation 4. one person dominates the others EX: the bay of pigs invasion during JFK's administration |
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How to break through groupthink |
1. Increase diversity of the group (both demographic and cognitive) 2. devil's advocacy: -one person is appointed as the devil's advocate -they point out problems with the selection of options -defend unpopular or opposing options -critique the process of choosing solutions EX: movie "twelve angry men", Henry Ford played an effective DA. |
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Holbein's chain of innovation |
Security->Teachability->Learning->creativity->innovation |
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Decision making |
The process by which people respond to opportunities and threats by analyzing options, choosing goals, and selecting courses of action |
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Two Examples of flawed decision making |
1. lesley fox, a bank branch manager saw that many places had an employee of the month program, so she started one too. It did not work as expected. It caused employees to compete against each other, eroding teamwork. She realized that an employee hall of fame would be much better-every employee could be recognized for good work. 2. Walmart tried to export american based management methods to other nations, assuming that what worked in the US would work well overseas too. it didnt. |
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Holbein Thumbtack |
in order to make effective decisions -broad and human and sharp and focused |
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Two types of decision making |
1. programmed decision making 2. non-programmed decision making |
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programmed decision making |
"routine, virtually automatic decision making that follows established rules and guidelines where we have made similar decisions before." This is what lesley fox and Walmart did. |
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non-programmed decision making |
"non-routine decisions that occur in response to unusual, unpredictable and unique circumstances when there are no rules to follow, and where we have uncertain or ambiguous info, thereby requiring us to use our intuition, judgment and discernment" |
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Four benefits from a good, cleat mission statement |
1. defines your business 2. allows us to establish major goals 3. provides a sense of direction and focus 4. a good statement will stretch everyone toward superior performance |
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concentration/focus strategy |
have a single type of product Mcdonalds, walmart, coke became dominant this way do "one" thing really well, better than anyone else |
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diversification |
1. related diversification 2. unrelated diversification |
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related diversification |
producing and selling products that are similar to each other. procter and gamble is a good example of this |
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unrelated diversification |
producing and selling products that are not at all similar to each other. Berkshire hathaway is a good ex. The point is to reduce the variability of returns by spreading out risks |
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Vertical integration |
1. P: procuring - getting stuff no one else has 2. T: transforming - like assembling a car, or refining oil 3. H: holding - keeping items in invty 4. P: promoting - marketing, advertising, selling 5. D: distributing - customers pay more for convenience 6. S: Servicing |
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forward vertical integration |
toward the customer |
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backward vertical integration |
toward the raw materials |
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creativity |
developing new or novel ideas -the light bulb goes on - Like "R" for research in R&D |
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innovation |
the implementation and commercialization (sale) of creative ideas. -Like "D" for development in R&D |
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How to get employees to be creative individually |
1. provide employees w/ both the opportunity and ability to take risks 2. if people take risks, they will sometimes fail 3. to build creativity, the manager must reward the right kind of failure |
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Good failure/ right kind of failure |
1. the failure did not occur because of laziness 2. didn't occur because of violations of ethics 3. the employee can explain how and why it happened, so that the employee has learned and changed 4. the failure is not repeated |
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group creativity (brainstorming) |
1. people must meet face to face, not online 2. encourage your people to offer "crazy" and "wrong" ideas 3. there is no evaluation or judgement of ideas at this point 4. write down every idea in front of the group 5. after every possibility is listed, the group must say something good and something bad about every idea |
