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71 Cards in this Set
- Front
- Back
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What's the importance of planning?
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Helps...
-Check on progress -Coordinate activities -Think Ahead -Cope with uncertainty |
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Planning Strategy:
Who are Defenders? |
“Let’s Stick with What We Do Best, Avoid Other Involvements”
-Expert at producing and selling narrowly defined products or services |
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Planning Strategy:
Who are Prospectors? |
“Let’s Create Our Own Opportunities, Not Wait For Them to Happen”
-Focus on developing new products or services and in seeking out new markets rather than waiting for things to happen -Aggressive |
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Planning Strategy:
Who are Analyzers? |
"Let Others Take the Risks of Innovating, & We’ll Imitate What Works Best"
-Let other organizations take the risks of product development and marketing and then imitate (or perhaps slightly improve on) what seems to work best. |
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Planning Strategy:
Who are Reactors? |
Let’s Wait Until There’s a Crisis, Then We’ll React”
-Passive and Reactive -Make adjustments only when finally forced to by environmental pressures |
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What are the steps of the Planning/Control Cycle?
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1. Make the plan
2. Carry out the plan 3. Control direction by comparing results with plan 4. Control direction by A. correcting deviations in plan, B. improving future plans |
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Types of Planning:
Corporate (Strategic)- Top Management |
Determines what the organization’s long-term goals should be for the next 1-5 years with the resources they expect to have available; objectives for the organization as a whole
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Types of Planning:
Business (Tactical)- Middle Management |
Determines what contributions their departments of similar work units can make with their given resources during the next 6-25 months; focus on actions needed to achieve strategic goals
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Types of Planning:
Functional (Operational)- First-Line Management |
Determine how to accomplish specific tasks with available resources within the next 1-52 weeks; short-term matters associated with realizing tactical goals
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Importance of a Mission Statement
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-Expresses the purpose of the organization
-Responsibility of top management and the board of directors |
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SMART Goals:
S |
Specific: Goals should be stated in specific rather than vague terms
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SMART Goals:
M |
Measurable: Goals should be measurable or quantifiable
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SMART Goals:
A |
Attainable: Goals should be challenging, but realistic and attainable
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SMART Goals:
R |
Results-Oriented: Goals should support the organization’s vision- “Complete, acquire, increase”
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SMART Goals:
T |
Target Dates: Should specify the target dates or deadline dates when they are to be attained
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What are core competencies?
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Companies that are supposed to focus only on businesses that best fit their skills and distribution channels.
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What is a single-business strategy?
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-Company makes and sells only one product within its market
-Benefit --> Focus -Risk--> Vulnerability |
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What is unrelated diversification?
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-Operating several businesses under one ownership that are not related to one another
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What is related diversification?
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-Organization under one ownership operates separate businesses that are related to one another.
-Reduced risk, management efficiencies, synergy |
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What is a conglomerate?
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Form of organization in which a large company would do business in different, unrelated areas.
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What is SWOT Analysis?
(Situational Analysis) |
Search for Strengths, Weaknesses, Opportunities, and Threats affecting an organization.
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Porter's 5 Competitive Forces:
Threats of New Entrants |
New competitors can affect an industry almost over night
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Porter's 5 Competitive Forces:
Bargaining Power of Suppliers |
Some companies are readily able to switch suppliers in order to get components or services, but others are not.
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Porter's 5 Competitive Forces:
Bargaining Power of Buyers |
Customers who buy a lot of products or services from an organization have more bargaining power than those who don't.
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Porter's 5 Competitive Forces:
Threats of Substitute Products or Services |
An organization is in a better position to switch to other products or services when circumstances threaten their usual channels
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Porter's 5 Competitive Forces:
Rivalry Among Competitors |
Refer to Porter's 4 Competitive Strategies
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4 Competitive Strategies:
Cost-Leadership (Low Cost) |
Keeps the cost/prices or a product below those of competitors and to target a wide market.
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4 Competitive Strategies:
Differentiation |
Offer products or services that are of unique and superior value compared to those of competitors but to target a wide market.
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4 Competitive Strategies:
Focused- Low Cost |
Keep the costs (prices) of a product or service below those of competitors and to target a narrow market.
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4 Competitive Strategies:
Focused Differentiation |
Offer Products or services that are of unique and superior value compared to those of competitors and to target a narrow market.
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What is scenario planning?
(contingency planning) |
creation of alternative hypothetical but equally likely future conditions
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What is forecast planning?
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Vision of projection of the future- trend analysis or contingency planning
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What is competitive intelligence?
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Gaining information about one's competitors' activities so that you can anticipate their moves and react appropriately.
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How do you build a foundation of execution?
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-Know your people & business
-Insist on realism -Set clear goals & priorities -Follow through -Reward the doers -Expand people's capabilities -Know yourself |
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What is decision-making?
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The process of identifying and choosing alternative courses of action.
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What is systematic decision-making?
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Rational, analytical; linear, focused, needed when explanation is required
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What is intuitive decision-making?
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Flexible/spontaneous; dynamic, non-linear, non-focused, subjective
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Decision Making Environments:
Certain |
Alternative courses of action and their outcomes are known to decision-maker.
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Decision Making Environments:
Risk |
Decision maker views alternatives and their outcomes in terms of probabilities.
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Decision Making Environments:
Uncertain |
Decision maker does not know all alternatives and outcomes, even as probabilities.
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Decision-Making Process:
Step 1- Identify & Define the Problem |
-What are the gaps?
-Defining too broadly or narrow -May take time and experience |
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Decision-Making Process:
Step 2- Generate & Evaluate Alternatives |
-Gather data; as much as you need! May be time consuming-crisis
-May be costly: time, resources |
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Decision-Making Process:
Step 3- Decide On A Preferred Course of Action |
-Which has the greatest benefits and fewest costs
-What is the contingency plan or alternative actions if the primary course of action is not approved |
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Decision-Making Process:
Step 4- Implement the Decision |
-Try to discover impediments early - goal conflicts, resource problems, timing problems
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Decision-Making Process:
Step 5- Evaluate the Results |
-Timeliness is important
-You may need to recycle to an earlier point in the decision model |
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What is the programmed decision type?
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Applies a solution from past experience
Decision-rules or guidelines often exist |
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What is the non-programmed decision type?
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Applies a specific solution crafted for unique problem
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What is some criteria to consider when assessing business decision?
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-Cost and benefits
-Timeliness -Feasability -Acceptability -Ethical soundness |
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How are decisions often actually made? H. Simon
Bounded Rationality (limitations) |
Decision makers limited by their values, belifes, skills, habits
-Limited by incomplete info. and knowledge |
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How are decisions often actually made? H. Simon
Satisficing |
Decision-makers tend to search for alternatives until they identify one that meets some minimum standard of sufficiency
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Escalating Commitment?
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Continuing a course of action even though it is not working.
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Incremental decision making?
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Managers take small short-term steps to alleviate a problem.
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Functional Structure (U-form)
Positives |
-Greater efficiency
-Better control -Easy to manage |
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Functional Structure (U-form)
Negatives |
-Differing agendas
-Communication and coordination issues -Stress short-term |
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Product Departmentalization/Geographic/Custom
Positives |
-Greater efficiency
-Tailoring of activities -Better coordination with market |
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Product Departmentalization/Geographic/Custom
Negatives |
-Allowable Uniformity vs. diversity issues
-Adds another layer -Duplication of staff and support services $$$$$ |
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Matrix- Positive
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-Great cooperation and coordination
-Enhance communications between entities -Best for projects |
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Matrix- Negative
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-Must serve 2 masters
-Hard to move quickly -Complex to manage at the corporate level -Expensive due to skilled employee costs |
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FLAT structure
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-Few levels, quicker communication
-Wide span of control, fewer controls -Greater flexibility -More economical -More decentralized |
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TALL structure
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-Harder to communicate
-More managers -Narrow span of control, more controls -Costlier, stricter policies |
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What is DELEGATION?
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process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy
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What is CHAIN OF COMMAND?
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Control mechanism for making sure the right people do the right things at the right time.
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What is SPAN OF CONTROL?
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Refers to the number of people reporting directly to any given manager.
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What is a LINE MANAGER?
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Have authority to make decisions and usually have people reporting to them.
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What is a STAFF MANAGER?
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Authority functions; provide advice, recommendations, and research to line managers.
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Levels of Organization Culture
Level I: Observable Artifacts |
Physical Manifestations- manner of dress, awards, myths and stories
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Levels of Organization Culture
Level II: Espoused Values |
Explicitly Stated Values and Norms
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Levels of Organization Culture
Level III: Basic Assumptions |
Core Values of the Organization
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How do employees learn culture?
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-Symbols
-Stories -Heroes -Rites and Rituals |
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What is the importance of culture?
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1. Organizational Identity
2. Collective Commitment 3. Social System Stability 4. Sense-Making Device |
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Ways cultures become embedded in organizations?
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-Formal statements
-Slogans and Sayings -Stories, Legends, Myths -Leader Reactions to Crisis -Role Modeling, Training, and Coaching -Physical Design -Rewards, Titles, Promotions, and Bonuses -Organizational Goals -Measurable and Controllable Activities -Organizational Structure -Organizational Systems and Procedures |
