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63 Cards in this Set
- Front
- Back
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3 stages of innovation streams
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1.) Technological discontinuity
2.) Discontinuous Change 3.) Dominant Design |
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6 Components that encourage Creativity
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1.) Challenging Work
2.) Organizational Encouragement 3.) Supervisory Encouragement 4.) Work Group Encouragement 5.) Freedom 6.) Lack of Organizational Impediments |
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Experiential approach to innovation
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assumes that innovation is occurring within a highly uncertain environment and that the key to fast product innovation is to use intuition, flexible options and hands-on experience to reduce uncertainty and accelerate learning and understanding.
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Compression approach
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•Manage innovation in more certain environments during periods of incremental change.
•Goal is to lower costs and improvements in the performance/function of the existing dominant design. •Assumes that innovation is a predictable process, that incremental innovation can be planned using a series of steps and that compressing time to complete those steps can speed up the innovation. |
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5 Aspects of the Compression Approach
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1.) Planning
2.) Supplier Involvement 3.) Shorten the Time of Individual Steps 4.) Overlapping Steps 5.) Sequential Steps |
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3 steps in the strategy making process
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1.) Assessing need for strategic change
2.) Situational Analysis 3.) Choosing Strategic Alternatives |
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Grand Strategy
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A broad corporate-level strategic plan used to achieve strategic goals and guide the strategic alternatives that managers of individual businesses or subunits may use.
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Growth Strategy
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A strategy that focuses on increasing profits, revenues, market share, or the number of places in which the company does business.
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Stability Strategy
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A strategy that focuses on improving the way in which the company sells the same products or services to the same customers.
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Retrenchment Strategy
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A strategy that focuses on turning around very poor company performance by shrinking or the size scope of the business.
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Recovery
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The strategic actions taken after retrenchment to return to a growth strategy.
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Five Industry Forces
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1. Character of the Rivalry
2. Threat of new entrants 3. Threat of substitute products or services 4. Bargaining power of suppliers 5. Bargaining power of buyers |
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Cost Leadership
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The positioning strategy of producing a products or service of acceptable quality at consistently lower production costs than competitors can so that the firm can offer the products or service at the lowest price in the industry.
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Differentiation-
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The positioning strategy of providing a product or service that is sufficiently different from competitors offerings that customers are willing to pay premium price for it.
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Focus Strategy
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The positioning strategy of using cost leadership or differentiation to produce a specialized product or service for a limited, specially targeted group of customers in a particular geographic region or market segment.
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Defenders
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An adaptive strategy aimed at defending strategic positions by seeking moderate, steady growth and by offering a limited range of high quality products and services to a well defined set of customers.
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Prospectors
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An adaptive strategy that seeks fast growth by searching for new market opportunities, encouraging risk taking, and being the first to bring innovative new products to market.
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Analyzers
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An adaptive strategy that seeks to minimize risk and maximize profits by following or imitating the proven success of prospectors.
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Reactors
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An adaptive strategy of not following a consistent strategy, but instead reacting to changes in the external environment after they occur
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4 Stages of Organizational Decline
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1.) Inactive Stage
2.) Faculty Action Stage 3.) Crisis Stage 4.) Dissolution Stage |
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When does organizational decline occur?
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occurs when companies don’t anticipate, recognize, neutralize, or adapt to the internal/external pressures that threaten their survival. USUALLY occurs when organizations don’t recognize the need for change.
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Change Forces (According to psychologist Kurt Lewin)
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the forces that produce differences in form, quality, or condition of an organization over time.
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Resistance Forces
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support the status quo, that is, the existing conditions in organizations.
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Resistance to Change
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is caused by self interest, misunderstanding and distrust and a general intolerance for change. People resist change out of self interest because they fear that change will cost or deprive them of something they value.
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People with Low Tolerance for Change
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feel threatened by the uncertainty associated with change and worry that they wont be able to learn the new skills and behaviors needed to successfully negotiate change in their companies.
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3 Steps of the Organizational Change Process
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1.) Unfreezing
2.) Change Intervention 3.) Refreezing |
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Transition MGT Team (TMT)
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a team of 8-12 people who coordinate a companys change process.
• Report to CEO daily to decide which projects need to be funded and approved |
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Responsibilities of TMT
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• Establish a context for change and provide guidance
• Stimulate conversation • Provide appropriate resources • Coordinate and align projects • Ensure congruence of messages, activities, policies, and behaviors • Provide opportunities for joint creation • Anticipate, identify, and address peoples problems • Prepare the Critical Mass |
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5 types of nontariff barriers
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1. quotas
2. voluntary export restraints 3. government import standards 4. government subsidies 5. customs valuation/classification |
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Global Consistency
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When a multinational company has offices, manufacturing plants, and distribution facilities in different countries and runs them all using the same rules, guidelines, policies, and procedures.
If companies lean too much toward global consistency, they run the risk of using management procedures poorly suited for that country. |
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Local adaptation
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When a multinational company modifies its rules, guidelines, policies, and procedures to adapt to differences in foreign customers, governments, and regulatory agencies. This type of adaptation is general more important to the local managers in charge of making the business successful in that country.
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3.5 Global New Ventures
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New companies that are founded with an active global strategy and have sales, employees, and financing in different countries.
This type of venture is happening because of airplanes, low cost communication, such as email, and a mass of businesspeople with extensive personal experience in all aspects of global business. |
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Two factors help companies determine the growth potential of a foreign market:
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Purchasing Power - A comparison of the relative cost of a standard set of goods and services in different countries
Second part of assessing growth potential of global markets involves analyzing the degree of competition. |
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Political uncertainty
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The risk of major changes in political regimes that can result from war, revolution, death of political leaders, social unrest, or other influential events.
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Policy uncertainty -
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The risk associated with changes in laws and government policies that directly affect the way foreign companies conduct business.
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Expatriate
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someone who lives and works outside his or her on native country.
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Control
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regulatory process of establishing standards to achieve organizational goals, comparing actual performance against the standards, and taking corrective action, when necessary.
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Standards
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basis of comparison for measuring the extent to which organizational performance is satisfactory or unsatisfactory
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A good standard
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must enable goal achievement, listen to customers observing competitors, and benchmarking.
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Benchmarking
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the process of determining how well other companies perform business functions or tasks. 3 steps-determine what to benchmark, identify the companies against which to benchmark your standards, gather data to determine other companies performance standards.
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Three basic control methods
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feedback control, concurrent control, and feedforward control.
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Feedback control
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a mechanism for gathering information about performance deficiencies after they occur.
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Concurrent control
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a mechanism for gathering information about performance deficiencies as they occur, thereby eliminating or shortening the delay between performance and feedback.
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Feedforward control
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a mechanism for monitoring performance inputs rather than outputs to prevent or minimize performance deficiencies before they occur.
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Control loss
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when behavior and work procedures do not conform to standards.
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Bureaucratic control
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top down control, in which managers try to influence employee behavior by rewarding or punishing employees for compliance or noncompliance with organizational policies, rules and procedures. Bureaucratic control is highly resistant to change and slow to respond to customers and competitors.
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Objective control
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the use of observable measures of worker behavior or outputs to assess performance and influence behavior. It focuses on the observation or measurement of worker behavior or output.
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Behavior Control
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regulation of the behaviors and actions that workers perform on the job.
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Output control
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regulation of workers results or outputs through rewards and incentives.
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Normative control
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regulation of workers behavior and decisions through widely shared organizational values and beliefs. Normative control is created by: companies that use normative controls are careful with who they hire and managers and employee learn what they should and should not do by observing experienced employees and by listening to the stories they tell about the company.
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Concertive control
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regulation of workers behavior and decisions through work group values and beliefs. It arises when companies give autonomous work groups complete autonomy and responsibility for task completion.
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The balanced scorecard
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encourages managers to look beyond traditional financial measures to four different perspectives on company performance. Two advantages- focus managers at each level of the company to set specific goals and measure performance. It also minimizes the chances of suboptimization(performance improvement in one part of an organization but only at the expense of decreased performance in another part).
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Cash flow analysis
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predicts how changes in a business will affect its ability to take in more cash than it pays out.
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Budgets
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project costs and revenues.
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Quality is measured in three ways:
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excellence, value, and conformance to expectations
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Raw data
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facts and figures but may not be useful if they don’t have meaning
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Companies need to address 3 issues to sustain a competitive advantage through information technology:
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1) Does the information technology create value for the firm by lowering costs or providing a better product or service? If not, the firm is put at a competitive disadvantage by investing in it. 2) Is the information technology the same or different across competing firms? If it’s all the same then no firm has an advantage. 3) Is it difficult for another company to create or buy t he information technology used by the firm? If so, then the firm has established a sustainable competitive advantage. If not, then the advantage is just temporary.
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The key to sustaining a competitive advantage
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using the information technology to continuously improve and support the core functions of a business.
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Data Mining
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the process of discovering unknown patterns and relationships in large amounts of data through complex algorithms. Many managers do not know what how these algorithms find the patterns but that isn’t a problem; they just have to know that they find the patterns that are already in the data but are too complex to be found by a single person. Data mining typically finds patterns by splitting the data set into halves, finding a pattern in one half and then checking that pattern against the data in the second half of the original data set.
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purpose of information technology
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to monitor, process, and disseminate information to assist in managing, decision making, and controlling the organization.
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A decision support system (DSS
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helps managers understand problems and potential solutions by acquiring and analyzing information with sophisticated models and tools. Where EIS programs a broad in scope and permit managers to retrieve all kinds of information, DSS programs are usually more narrow in scope are targeted to helping managers solve specific types of problems.
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4 Characteristics of Information
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1.) Accurate
2.) Complete 3.) Relevant 4.) Timely |
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5 Costs of infotmation
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1.) Acquisition
2.) Processing 3.) Storage 4.) Retrieval 5.) Communication |
