Management Exam #1

Front 1

Planning

Back 1

Involves defining the organization’s goals, establishing an overall strategy, and developing a comprehensive set of plans to integrate and coordinate organizational work

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Informal planning

Back 2

Nothing is written down there is little or no sharing of goals and it is general and lacking in continuity

Front 3

Formal planning

Back 3

Is written and defines specific goals. It also has specific action programs that exist to achieve goals

Front 4

Goals

Back 4

Desired outcomes

Front 5

Plans

Back 5

Outline how goals are going to be met

Front 6

Strategic plans

Back 6

Apply to the entire organization. They establish organizations overall goals and seek to position the organizations in terms of its environment

Front 7

Operational plans

Back 7

Specify the details of how to overall goals are to be achieved and tend to cover short time periods

Front 8

Long-term plans

Back 8

Time frame beyond three years. The actually definition of long term has changed with increasingly uncertain organizational environments.

Front 9

Short-term plans

Back 9

Cover one year or less

Front 10

Specific plans

Back 10

Clearly defined with little room for interpretation. Required clarity and predictability often do not exist.

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Directional plans

Back 11

Are flexible plans that set out general guidelines and provide focus without limiting courses of action.

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Management By Objectives (MBO)

Back 12

Specific performance goals are jointly determined by employees and their managers. Rewards are allocated after periodic reviews of progress that is made toward accomplishing these goals. MBO consists of four elements. (Odiorn)

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MBO steps (4)

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1.Goal specificity
2. Participative decision making
3. Explicit time period
4. Performance feedback.

Front 14

Strategic planning

Back 14

Making decisions about long term goals and stratigies of an organization.

Front 15

Strategic goals

Back 15

Major targets or end results that relate to the long term survival, value, and growth of the organizations

Front 16

Strategy

Back 16

A pattern of actions and resource allocations designed to achieve the goals of the organization

Front 17

Corporate strategy

Back 17

Identifies the set of businesses, markets, or industries in which the organization competes. Identifies the distribution of resources among these businesses.

Front 18

Business strategy

Back 18

Defines the major actions of a business through which it competes a particular industry or market.

Front 19

Functional strategy

Back 19

Implements business strategy in each of the functional areas. Allocates resources in an efficient and effective manner.

Front 20

Strategic Management Process (4)

Back 20

1. Identifying the Organization’s Current Mission, Objectives, and Strategies
2. Analyzing the Environment
3. Identifying Opportunities and Threats
4. Identifying Strengths and Weaknesses

Front 21

Mission

Back 21

A statement of the purpose of the organization

Front 22

Opportunities

Back 22

Positive trends in the external environment

Front 23

Threats

Back 23

Negative trends in the external environment

Front 24

Strengths

Back 24

Activities the organization does well or any unique resource

Front 25

Weaknesses

Back 25

Activities the organization does not do well or resources it needs but does not possess

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SWOT analysis

Back 26

Analysis of the organization’s strengths, weaknesses, opportunities, and threats

Front 27

Corporate level strategy

Back 27

Determines what businesses a company should be in or wants to be in, the direction that the organization is going and the role that each business unit will play

Front 28

Grand strategy stability

Back 28

Has no significant change is proposed, the organization finds its performance satisfactory. The environment appears to be stable and unchanging. There are very few organizations today that pursue this strategy.

Front 29

Grand strategy growth

Back 29

They seek to increase the level of the operations within the organization.

Front 30

Concentration

Back 30

Growth through direct expansion of organization’s own business operations

Front 31

Backward (vertical integration)

Back 31

Because you become your own supplier

Front 32

Forward (vertical integration)

Back 32

Become your own distributor

Front 33

Horizontal integration

Back 33

Grow by combining with other organizations in the same industry. This needs approval by U.S. Federal Trade Commission

Front 34

Related diversification

Back 34

Grow by merging with or acquiring firms in different, but related industries “Strategic Fit”.

Front 35

Unrelated diversification

Back 35

Grow by merging with or acquiring firms in different and unrelated industries.

Front 36

Retrenchment

Back 36

Designed to address organizational weaknesses that are leading to performance declines. These are intended to stabilize operations, revitalize organizational resources and capabilities, and prepare to compete once again.

Front 37

Corporate Portfolio Analysis

Back 37

Used when corporate strategy involves a number of businesses

Front 38

Boston Consulting Group (BCG) Matrix

Back 38

Provides a framework for understanding diverse businesses. It helps managers establish priorities for making resource allocation decisions. The businesses are classified in terms of Market Share (Horizontal Measurement) and Anticipated Market Growth (vertical measurement).

Front 39

Cash cows

Back 39

Milk, they use this money to invest in stars and question marks

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Stars

Back 40

Require heavy investing and eventually become cash cows

Front 41

Question marks

Back 41

Have two strategies either invest to transform them into stars and divest

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Dogs

Back 42

Sold off or liquidated

Front 43

Business level strategy

Back 43

Determines how an organization should compete in each of its businesses.

Front 44

Strategic Business Units

Back 44

Independent businesses that formulate their own strategies

Front 45

Role of Competitive Advantage

Back 45

Competitive advantage sets an organization apart by providing a distinct edge. It comes from the organizations score competencies. Although not every organization transforms core competencies into competitive advantage, and once you create it you have to sustain it.

Front 46

Michael Porter

Back 46

A gooro in strategies said that industry analysis is based on five competitive forces.

Front 47

Five competitive forces

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1. Threat of New Entrants- Affected by barriers to entry
2. Threat of Substitutes- Affected by buyer loyalty and switching costs
3. Bargaining Power of Buyers-Affected by number of customers, availability of substitute products.
4. Bargaining Power of Suppliers- Affected by degree of supplier concentration
5. Existing Rivalry- Affected by industry growth rate, demand for firm’s product or service, and product differences.

Front 48

Cost leadership (Michael Porter's 3 Generic Strategies)

Back 48

Goal is to become the lowest producer in the industry. It tries to identify efficiencies in all operations, keep overhead to a minimum and the product or service must be perceived to be of comparable quality to that offered by competitors

Front 49

Differentiation (Michael Porter's 3 Generic Strategies)

Back 49

Offer unique products that are widely valued by customers. It sets the firm apart from competitors; differentiation is based on quality, service, product design, brand name. Customers must be willing to pay a price premium that exceeds the cost of differentiation.

Front 50

Focus (Michael Porter's 3 Generic Strategies)

Back 50

Aims at cost advantage or differentiation advantage in a narrow segment. There’s no attempt to serve the broad market. The feasibility of the strategy depends on the size of the segment and the ability of the firm to support the cost of focusing.

Front 51

Strategic planning

Back 51

Is outward looking, resource orientated, usually long term, and concerned with market positioning beyond current operating budget.

Front 52

Operational planning

Back 52

Which is inward looking, control-orientated, short term, concerned with the current operating budget.

Front 53

Planning to Plan (strategic model 1)

Back 53

Has three parts One getting an Organizational commitment, two you identify a planning team, and three time.

Front 54

Values Audit (strategic model 2)

Back 54

Values of the managers, executives, and individuals directly impact success of the organization. Then Individual values, and lastly organizational values/culture.

Front 55

Mission Formulation (strategic model 3)

Back 55

You ask what function does the organization perform and for whom does this organization perform this function?

Front 56

Strategic Business Modeling (strategic model 4)

Back 56

The process by which the organization more specifically defines success in the context of the business(es) it wants to be in, how that success will be measured, and what will be done to achieve it, consistent with the newly established mission statement.
The two parts of the modeling are
A. Strategic profile, or quantified business objective( where do we want to be in 3-5 yrs)
B. Statements of how the quantified objectives will be achieved( i.e. Reduce effective tax rebate to 25% by sheltering 70% of income and purchasing $500k of Capital Equipment.)

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Performance Audit (strategic model 5)

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Examines the Recent performance of the organization in terms if basic performance indices that have been identified in the strategic profile. This includes information about “competitor analysis”.

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Gap Analysis (strategic model 6)

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Is a comparison of the date generated during the performance audit with the strategic profile. It’s also a “Reality Test” of the strategic business model indices. The key indices of success are first identified during the strategic business modeling and their feasibility is checked later- with the information generated during the performance audit- by means of the “Gap Analysis”.

Front 59

Contingency Planning (strategic model 7)

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is the assumption that the ability to forecast accurately the significant factors that somewhat limited. There are two trigger points one is higher level monitoring and two is action.

Front 60

Integrating Functional Planning (strategic model 8)

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Functional plans generated by departments and married to strategic business plan. Each unit functional plan must be checked against the values audit and mission statement- CONSISTENCY.

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Implementation (strategic model 9)

Back 61

Sell action plans integrated with organization. The most important test is the degree to which organizational members, especially managers, integrate the strategic plan into their everyday management decisions

Front 62

Environmental Scanning (strategic model 10)

Back 62

- Monitoring four environments. 1. Macro 2. Industry 3.Competitive(Present and potential competition) 4. Internal(Turnover, morale and retirement)