Mgmt101 - Midterm 1

Front 1

What are the INPUTS in the N and T Congruence Model?

Back 1

Environment
Resources
History

- what managers can not control (in the short term)

Front 2

What are the components of the TRANSFORMATION PROCESS in the N and T Congruence Model?

Back 2

Informal
Work
Formal
People

-Tools the organization uses to convert inputs into outputs

Front 3

What are the OUTPUTS in the N and T Congruence Model?

Back 3

Organization
Group
Individual

-Are we performing effectively?

Front 4

What concerns are in the STRATEGY in the N and T Congruence Model?

Back 4

What business should we be in? And how should we compete in these business?

Front 5

Characteristics of FORMAL ORGANIZATION in the Transformation Process

Back 5

explicit, codified aspects of the organization (structure, rewards, control systems)

Front 6

Characteristics of INFORMAL ORGANIZATION in the Transformation Process

Back 6

implicit, assumed aspects of the organization (culture, values, communication, patterns)

Front 7

Characteristics of WORK in the Transformation Process

Back 7

characteristics of jobs and how jobs are related to each other

Front 8

Characteristics of PEOPLE in the Transformation Process

Back 8

characteristics of members of the organization (demography, personality, skills, motivation)

Front 9

Define CONGRUENCE

Back 9

The degree to which the needs, demands, goals, objectives, and/or structures of one component are consistent with those of the other.

Greater congruence = more effective organization

Front 10

Define INTERNAL FIT

Back 10

between the transformation process and strategy

Front 11

Define EXTERNAL FIT

Back 11

between the strategy and environment

Front 12

What are the SIX components of the GENERAL ENVIRONMENT

Back 12

Demographic
Sociocultural
Political/Legal
Technological
Economic
Global

Front 13

Define/Give examples of DEMOGRAPHIC segment of the General Environment

Back 13

Demographics are the most easily understood and quantifiable elements of the gen envi. They are the root of many changes in society.

Ex: Aging population, rising affluence, changes in ethnic composition, geographic distribution of population, greater disparities in income levels

Front 14

Define/Give examples of SOCIOCULTURAL segment of the General Environment

Back 14

Sociocultural forces influence the values, beliefs, and lifestyles of a society.

Ex: More women in work force, increase in temporary workers, greater concern for fitness, greater concern for environment, postponement of family formation

Front 15

Define/Give examples of POLITICAL/LEGAL segment of the General Environment

Back 15

Political processes and legislation influence the environmental regulations with which industries must comply

Ex: tort reform, deregulation, increase in minimum wage, taxation, legislation on corporate governance reforms

Front 16

Define/Give examples of TECHNOLOGICAL segment of the General Environment

Back 16

Developments in technology lead to new products and services and improve how they are produced and delivered to the end user.

Ex: Genetic engineering, the Internet, research in synthetic and exotic materials, pollution and global warming, nanotechnology

Front 17

Define/Give examples of ECONOMIC segment of the General Environment

Back 17

Key economic indicators have impacts on all industries from suppliers of raw materials to manufacturers of finished goods and services, as wells as all organizations in the service, wholesale, retail, government, and nonprofit sectors.

Ex: Interest rates, unemployment, CPI, trends in GDP, changes in stock market

Front 18

Define/Give examples of GLOBAL segment of the General Environment

Back 18

Globalization provides both opportunities to access larger potential markets and a broad base of production factors but also carry many risks.

Ex: Increasing global trade, currency exchange rates, emergence of economies, trade agreements, tariffs and free trade

Front 19

What are the the THREE components of the COMPETITIVE ENVIRONMENT?

Back 19

Competitors
Customers
Suppliers

Front 20

What are the FIVE FORCES of Industry Competition

Back 20

Threat of New Entrants
Bargaining Power of Suppliers
Bargaining Power of Buyers
Threat of Substitutes
Rivalry among Existing Firms

Front 21

What are the considerations of the THREAT of NEW ENTRANTS in the 5 Forces Model?

Back 21

*Threat is lower when barriers are higher
*Profits can be eroded by new competitors


-Economies of Scale
-Product Differentiation
-Access to Distribution Channels
-Switching Costs
-Capital Requirements
-Cost Disadvantage

Front 22

What are the considerations of the BARGAINING POWER of BUYERS in the 5 Forces Model?

Back 22

*Buyers can force down prices
*Can force competitors against each other

-Concentrated Groups
-Purchase larger volumes of seller's sales
-Low product differentiation
-Few Switching costs

... all make power higher

Front 23

What are the considerations of the BARGAINING POWER of SUPPLIERS in the 5 Forces Model?

Back 23

*Can threaten to raise prices

Powerful if:
-Concentrated (dominated by few companies)
-industry not important customer of supplier
-Supplier's product (input) is important to industry
-poses threat of fwd integration

Front 24

What are the considerations of the THREAT of SUBSTITUTES in the 5 Forces Model?

Back 24

*Limit the potential returns of an industry - place price ceiling
*Lower price of subs = higher threat to industry

Front 25

What are the considerations of the INTENSITY of RIVALRY in the 5 Forces Model?

Back 25

*Rivalry diminishes profits, resources devoted to price competition, advertising, increased customer service, etc

Intensifies as:
-Number of competitors increase
-Industry growth slows
-Lack of differentiation/switching costs
-Equally balanced competitors
-High fixed or storage costs
-High exit barriers

Front 26

What are the THREE types of GOALS?

Back 26

1. Organizational-level goals
2. Group-level goals
3. Individual-level goals

Front 27

What are examples of ORGANIZATION level goals?

Back 27

Resources utilization, profits, sales, flexibility/adaptability, growth

Front 28

What are examples of GROUP level goals?

Back 28

Contribution to organizational-level objectives, cohesion, integration

Front 29

What are examples of INDIVIDUAL level goals?

Back 29

Satisfaction, productivity, ethical behavior, quality of work life

Front 30

What are the THREE characteristics of good goals?

Back 30

1. Specific (measurable, timeframe)
2. Difficult ("stretch goals")
3. Accepted but those who are expected to achieve them

Front 31

What are examples of metrics to MEASURE goals?

Back 31

Financial Measures (Profit growth/ratio, sales growth, mkt share, cost ratio)
New Product Development
Quality
Customer Satisfaction
Employee Satisfaction
Employee Turnover
Behaviors

Front 32

Who are the SIX STAKEHOLDERS that evaluate effectiveness of goals?

Back 32

1. Stockholders
2. Customers
3. Suppliers
4. Employees
5. Government
6. Lenders

Front 33

What are the FOUR rules for ETHICAL DECISION MAKING?

Back 33

1. Utilitarian Rule
2. Moral Rights Rule
3. Justice Rule
4. Practical Rule

Front 34

Define UTILITARIAN RULE in ethical decision making.

Back 34

An ethical decision should produce the greatest good for the greatest number of people.

Front 35

Define MORAL RIGHTS RULE in ethical decision making.

Back 35

An ethical decision should maintain and protect the fundamental rights and privileges of people.

Front 36

Define JUSTICE RULE in ethical decision making.

Back 36

An ethical decision should distribute benefits and harm among people in a fair, equitable and impartial manner.

Front 37

Define PRACTICAL RULE in ethical decision making.

Back 37

An ethical decision should be one that a manager has no hesitation about communicating to people outside the company because the typical person in society would think the decision is acceptable.

Front 38

What are the FOUR approaches to SOCIAL RESPONSIBILITY? (From low to high)

Back 38

1. Obstructionist approach
2. Defensive approach
3. Accommodative approach
4. Proactive approach

Front 39

Define OBSTRUCTIONIST approach in social responsibility.

Back 39

Companies choose not to behave in a socially responsible way and behave unethically and illegally.

Front 40

Define DEFENSIVE approach in social responsibility.

Back 40

Companies behave ethically to the degree that they stay within the law and abide strictly with legal requirements.

Front 41

Define ACCOMMODATIVE approach in social responsibility.

Back 41

Companies behave legally and ethically and try to balance the interest of different stakeholders as the need arises.

Front 42

Define PROACTIVE approach in social responsibility.

Back 42

Companies actively embrace socially responsible behavior, going out of their way to learn about the needs of different stakeholder groups and utilizing organizational resources to promote the interest of all stakeholders.

Front 43

What is the difference between CORPORATE level strategy and BUSINESS level strategy?

Back 43

Corporate - What businesses should we be in?
Business - How should we compete? => What products/services? Which markets? What technologies?

Front 44

What are the THREE types of COMPETITIVE ADVANTAGE?

Back 44

1. Overall Cost Leadership
2. Differentiation
3. Focus Strategy

Front 45

Define OVERALL COST LEADERSHIP in competitive advantage strategies.

Back 45

Firms create a low-cost position relative to their peers. Must reduce costs throughout entire value chain. Must have parity on the basis of differentiation relative to competitors.

Pitfalls: too much focus on one value-chain activity, all rivals share common input (raw materials), strategy is easily imitated, erosion of cost advantages when pricing info becomes available to customers

Front 46

Define DIFFERENTIATION in competitive advantage strategies.

Back 46

Firms create differences in their product/service by creating something that is perceived as unique and valued by customers (industry wide). Reduce costs in all areas that do not affect differentiation. Perceptions of product quality can be strongly influence by downstream primary activities in value chain.

Pitfalls: uniqueness that is not valuable, too much differentiation, premiums too high, easily-imitated differentiation, dilution of brand identification through product-line extensions.

Front 47

Define FOCUS in competitive advantage strategies.

Back 47

Firms put direct attention towards narrow product lines, buyer segments, or targeted geographic markets.

-Cost focus or differentiation focus
-"NICHES"

Pitfalls:erosion of cost advantage within narrow segment. competition from new entrants, can become too focused.

Front 48

What are the FOUR SUPPORT ACTIVITIES in the Value Chain?

Back 48

1. Firm Infrastructure
2. Human Resource Management
3. Technology Development
4. Procurement

Front 49

Give examples of HUMAN RESOURCE MANAGEMENT with a Cost Leadership Strategy.

Back 49

Mimimize costos associated with employee turnover through effective policies.

Effective Orientation and training programs to maximize employee productivity.

Front 50

Give examples of TECHNOLOGY DEVELOPMENT with a Cost Leadership Strategy.

Back 50

Effective use of automated technoloy to reduce scrappage rates

Expertise in process engineering to reduce manufacturing costs.

Front 51

Give examples of FIRM INFRASTRUCTURE with a Cost Leadership Strategy.

Back 51

Few management layers to reduce overhead costs.

Standardized accounting practices to minimize personnel required.

Front 52

Give examples of PROCUREMENT with a Cost Leadership Strategy.

Back 52

Effective policy guidelines to ensure low cost raw materials (with acceptable quality levels).

Shared purchasing operations with other business units.

Front 53

Give examples of FIRM INFRASTRUCTURE with a Differentiation Strategy.

Back 53

Superior MIS - to integrate value-creating activities to improve quality

Facilities that promote image

Widely respected CEO enhances firm reputation

Front 54

Give examples of HUMAN RESOURCE MANAGEMENT with a Differentiation Strategy.

Back 54

Programs to attract talented engineers and scientists

Provide training and incentives to ensure a strong customer service orientation

Front 55

Give examples of TECHNOLOGY DEVELOPMENT with a Differentiation Strategy.

Back 55

Superior material handling and sorting technology

Excellent applications engineering support

Front 56

Give examples of PROCUREMENT with a Differentiation Strategy.

Back 56

Purchase of high-quality components to enhance product image

Use of the most prestigious outlets

Front 57

What are the FIVE PRIMARY ACTIVITIES in the Value Chain?

Back 57

1. Inbound logistics (activities to receive, store and disseminate inputs)
2. Operations (Activities to transform inputs to outputs)
3. Outbound Logistics (Activities to collet, store and distribute outputs)
4. Marketing and sales (Activities to inform buyers and induce them to purchase)
5. Service (after-sales activities)

Front 58

Give examples of INBOUND LOGISTICS in a Cost Leadership Strategy.

Back 58

Effective layout of receiving dock operation

Shipping costs reduced

Front 59

Give examples of OPERATIONS in a Cost Leadership Strategy.

Back 59

Effective use of quality control inspectors to minimize rework on the final product

Front 60

Give examples of OUTBOUND LOGISTICS in a Cost Leadership Strategy.

Back 60

Effective utilization of delivery fleets

Front 61

Give examples of MARKETING AND SALES in a Cost Leadership Strategy.

Back 61

Purchase of media in large blocks

Sales force utilization is maximized by territory management

Front 62

Give examples of SERVICE in a Cost Leadership Strategy.

Back 62

Thorough service repair guidlines to minimize repeat maintenance calls

Use of single type of repair vehicle to minimize costs

Front 63

Give examples of INBOUND LOGISTICS in a Differentiation Strategy.

Back 63

Superior material handling operations to minimize damage

Quick transfer of inputs to manufacturing process

Front 64

Give examples of OPERATIONS in a Differentiation Strategy.

Back 64

Flexibility and speed in responding to changes in manufacturing specs

Low defect rates to improve quality

Front 65

Give examples of OUTBOUND LOGISTICS in a Differentiation Strategy.

Back 65

Accurate and responsive order processing

Effective product replenishment to reduce customer's inventory

Front 66

Give examples of MARKETING AND SALES in a Differentiation Strategy.

Back 66

Creative and innovative advertising programs

Fostering of personal relationship with key customers

Front 67

Give examples of SERVICE in a Differentiation Strategy.

Back 67

Rapid response to customer service requests

Complete inventory of replacement parts and supplies

Front 68

What are the FOUR stages of the LIFE CYCLE of an INDUSTRY

Back 68

1. Introduction
2. Growth
3. Maturity
4. Decline

Front 69

What are the characteristics of the INTRODUCTION stage of Industry Life Cycle?

Back 69

Generic Strategy: Differentiation
Mkt Growth Rate: Low
# of Segments: Very few
Intensity of Competition: Low
Emphasis on Product Design: Very High
Emphasis on Process Design: Low
Major Functional Areas of Concern: R&D
Overall Objective: Increase Mkt Share Awareness

Front 70

What are the characteristics of the GROWTH stage of Industry Life Cycle?

Back 70

Generic Strategy: Differentiation
Mkt Growth Rate: Very large
# of Segments: Some
Intensity of Competition: Increasing
Emphasis on Product Design: High
Emphasis on Process Design: Low to Moderate
Major Functional Areas of Concern: Sales and Marketing
Overall Objective: Create consumer demand

Front 71

What are the characteristics of the MATURITY stage of Industry Life Cycle?

Back 71

Generic Strategy: Differentiation/ Overall Cost Leadership
Mkt Growth Rate: Low to Moderate
# of Segments: Many
Intensity of Competition: Very Intense
Emphasis on Product Design: Low to moderate
Emphasis on Process Design: High
Major Functional Areas of Concern: Production
Overall Objective: Defend Mkt Share and extend product life cycles

Front 72

What are the characteristics of the DECLINE stage of Industry Life Cycle?

Back 72

Generic Strategy: Overall Cost Leadership, Focus
Mkt Growth Rate: Negative
# of Segments: Few
Intensity of Competition: Changing
Emphasis on Product Design: Low
Emphasis on Process Design: Low
Major Functional Areas of Concern: General Management and Finance
Overall Objective: Consolidate, maintain, harvest, or exit

Front 73

What is RELATED DIVERSIFICATION?

Back 73

Sharing tangible and intangible resources. - Has to do with primary activities

Front 74

What is UNRELATED DIVERSIFICATION?

Back 74

Value creation derives from corporate office. Leverages support activities.

Front 75

What are TWO ways to save costs from RELATED DIVERSIFICATION?

Back 75

Cost savings from...
1. Leveraging core competencies
2. Sharing related activities among business in corporation

Front 76

Define CORE COMPETENCY.

Back 76

Something that your firm is particularly food at, and is not easily imitated or substituted by your competitors.

Front 77

What are TWO ways to achieve VALUE (synergy) that can be created from RELATED DIVERSIFICATION?

Back 77

1. Pooled negotiating power
2. Vertical integration

Front 78

What are the THREE means to achieving DIVERSIFICATION?

Back 78

1. Acquisitions or mergers
2. Joint Ventures or Strategic Alliances (pooling resources of other companies with a firm's own resource base)
3. Internal Development (New products, markets, technology)