Management Exam #2

Front 1

The mission and plan together are known as the

Back 1

overall strategy

Front 2

Strategic Management

Back 2

overall, long-run management including planning, organizing, leading, and controlling effectively and efficiently over the long-run

Front 3

Strategic Planning

Back 3

the process of making plans and decisions that are focused on long-run performance

Front 4

Strategic Plan

Back 4

the resulting comprehensive plan that provides an overall direction for the organization

Front 5

The strategic management process is divided into how many stages?

Back 5

4

Front 6

The feedback lines in the strategic management process suggest that the process is ___ and ___, continually evolving as changes in the environment or in the organization create a need for revised strategic plans.

Back 6

interactive and self-renewing

Front 7

What are the four phases of the strategic management process?

Back 7

Analysis (current position of the org), formulation (estalish strategy tactics), implementation (carry out day-to-day operations), and evaluation/control (assess operations and make sure that the mission will be achieved)

Front 8

Strategic management focuses not on what business to be in, but

Back 8

how to operate a specific business

Front 9

Strategic analysis includes what three primary activities?

Back 9

1- assessing the mission of the organization
2- conducting an external environmental analysis
3- conducting an internal environmental analysis

Front 10

What does SWOT analysis stand for?

Back 10

Strengths, weaknesses, opportunities and threats

Front 11

What 3 primary aspects of the organization must a mission statement describe?

Back 11

1- its target markets (who)
2- its primary products and services (what)
3- an outline of the overall strategy for delivering these products and services to customers in the target markets (how)

Front 12

What does a SWOT analysis do?

Back 12

Helps managers to identify the strategic alternatives that are appropriate for an organization's internal and external environment

Front 13

Strategic direction

Back 13

direction of the organization toward the success in the long run

Front 14

Vision

Back 14

the ability to predict opps and threats in the future

Front 15

Opportunities

Back 15

environmental trends that an org can capitalize on

Front 16

Threat

Back 16

a condition in the environment that may cause trouble for an org

Front 17

General environment

Back 17

those environmental forces outisde the org over which the org may have no control

Front 18

What is the purpose of an external environment?

Back 18

to identify those aspects of the environment that represent either and opp or a threat

Front 19

Task environment

Back 19

those environmental forces that are within the firm's operating environment and over which the org may have some degree of control

Front 20

Economic environment

Back 20

the economic components of the general environment

Front 21

Sociocultural environment

Back 21

the attitudes, behavior patterns, and lifestyles of individuals who purchase products and services of organizations

Front 22

Sociocultural components and trends include (5)

Back 22

1- Changes in age groups
2- Increase of the niche markets
3- Household competition
4- Increasing diversity
5- Environmental awareness

Front 23

Technological environment

Back 23

changes in technology in the external environment

Front 24

B2B

Back 24

an initialism representing business-to-business transactions

Front 25

B2C

Back 25

an initialism representing business-to-consumer interactions

Front 26

Political-legal environment

Back 26

the part of the external environment that includes political and legal issues that affect organizations

Front 27

The task environment = ____ + _____

Back 27

customer + competitive structure

Front 28

What is the 5 forces model?

Back 28

a model developed by Michael Porter that uses 5 forces to assess the competitive structure of an industry

Front 29

What are Micheal Porter's 5 forces that are used to analyze the competitive structure of an industry

Back 29

1) Bargaining power of customers
2) Threat of substitute products or service
3) Bargaining power of suppliers
4) Threats of new entrants
5) Rivalry among competitors

Front 30

Competitive Advantage

Back 30

providing greater value for customers than competitors can

Front 31

Sustainable Competitive Advantage

Back 31

when other companies have tried to duplicate the value the company is providing to customers but have failed

Front 32

To have a sustainable competitive advantage, a company must have all of the 4 following components:

Back 32

1) Valuable Resources
2) Imperfectly Imitable Resources
3) Rare resources
4) Non-subsitutable resources

Front 33

Competitive inertia

Back 33

a reluctance to change strategies or competitive practices that have been successful in the past

Front 34

Strategic dissonance

Back 34

a discrepancy between a company's intended strategy and the strategic actions managers take when actually implementing the strategy

Front 35

While strategic dissonance can indicate that managers are not doing what they should to carry out company strategy, it can also mean

Back 35

that the intended strategy is out of date and needs to be changed

Front 36

Core capabiltiies

Back 36

less visible, internal decision making routines, problem-solving processes, and organizational cultures that determine how efficiently inputs can be turned into outputs

Front 37

Strategic group

Back 37

a group of other companies within an industry that top managers choose for comparing, evaluating, and benchmarking their company's strategic threats and opportunities

Front 38

What is the difference between core, secondary, and transient firms?

Back 38

Core firms are the central companies in a strategic group, secondary companies are firms that use strategies related to but somewhat different from those number of core firms, and transient firms are companies whose strategies are changing from one strategic position to another

Front 39

Because transient firms are changing, what is the effect the change has on managers who are analyzing them?

Back 39

Managers may not know what to think about these firms; consequently, managers may overlook or be wrong about the potential threats and opportunities posed by transient firms

Front 40

Shadow-strategy task force

Back 40

actively seeks out its own company's weaknesses, and then, thinking like a competitor, determines how other companies could exploit them for competitive advantage.

Front 41

What are the 2 parts of situational anaylsis

Back 41

1- examine internal strengths and weaknesses by focusing on distinctive competencies and core capabilities
2- examine external opportunities and threats by focusing on environmental scanning, strategic groups, and shadow-strategy task forces

Front 42

strategic reference points

Back 42

the targets that managers use to measure whether their firm has developed the core competencies that it needs to achieve a sustainable competitive advantage;
not deterministic

Front 43

What are the trends affecting organizations in a global economy? (6)

Back 43

1) Foreign exchange rates
2) importance of exports and imports
3) Expanding nature of trade
4) Worldwide communication
5) Borderless organizations
6) Worldwide labor pool

Front 44

Trade is so important in the united States that now 1 in __ jobs depends on it

Back 44

6

Front 45

What does transparency refer to?

Back 45

the idea that companies need to be more forthright with the way they conduct business

Front 46

What are the 5 aspects of culture that have direct implications for international management>?

Back 46

1) Cultural Distance (how different separate cultures are)
2) Social Change (differing views of social change)
3) Time orientation (different countries have different ideas on the notion of time)
4) Language (and gestures and mannerisms and customs)
5) Value Systems (5 value dimension)

Front 47

What are the 5 value systems dimensions?

Back 47

1- Power distance
2- Uncertainty Avoidance
3- Individualism
4- Gender Role Orientation
5- Long-term orientation

Front 48

What are the 5 principal categories political risk is grouped into?

Back 48

1- Domestic instability
2- Foreign Conflict
3- Political climate
4- Economic climate
5- Corruption

Front 49

What are the 2 significant types of international political mechanisms?

Back 49

Protectionism and Bribery/Extortion

Front 50

WTO represents...

Back 50

a series of negotiated understandings regarding trade and related issues among the participating countries

Front 51

What are the 3 fundamental principles of the WTO?

Back 51

1- the most favored nation principle means that when country A grants a tariff concession to country B, the same concession automatically applies to all other countries that are of the WTO
2- The reciprocity principle means that each member country will not be forced to reduce tariffs unilaterally. A tariff concession is made only in return for comparable concessions from the other countries
3- The transparency principle means that the tariffs are to be readily visible to all countries

Front 52

What does NAFTA do?

Back 52

Essentially creates a giant free-trade zone among the US, Canada, and Mexico by removing and reducing barriers to trade, such as tariffs, quotas, and licenses.

Front 53

What is the EU?

Back 53

An organization with the goals of creating a single market among member countries through the removal of trade barriers (eg tariffs) and establishing the free movement of goods, people, services, and capital.

Front 54

No other topic in management has undergone as much change in the past few years as that of

Back 54

organizing and organizational structure

Front 55

What is organizational structure?

Back 55

the formal arrangement of jobs within an organization. When managers develop or change the structure, they are engaged in organizational design

Front 56

What are the 7 purposes of organizing?

Back 56

1- Divides work to be done into specific jobs and departments
2- assigns tasks and responsibilities associated with individual jobs
3- coordinates divers organizational tasks
4- clusters jobs into units
5- Establishes relationships among individuals, groups, and departments
6- Establishes formal lines of authority
7- Allocates and deploys organizational resources

Front 57

The trend in recent years has been towards ___ spans of control because organizations are investing heavily in ____

Back 57

larger; employee training

Front 58

Centralization?

Back 58

degree to which decision making is concentrated at upper levels of the organization
An organization is never completely centralized or decentralized

Front 59

There has been a distinct trend towards (centralizing/decentralizing) in decision making?

Back 59

decentralizing

Front 60

Formalization?

Back 60

refers to how standardized an organization's jobs are and the extent to which employee behavior is guided by rules and procedures

Front 61

What are the 4 contingency factors for determining a company's appropriate organizational design structure?

Back 61

1- Strategy/structure
2- Size/structure
3- Technology/structure
4- Environmental Uncertainty/structure

Front 62

Unit production
____ vertical differentiation
____ horizontal differentiation
____ formalization
Most effective structure: ____

Back 62

low
low
low
organic

Front 63

Mass production (batch)
____ vertical differentiation
____ horizontal differentiation
____ formalization
Most effective structure: ____

Back 63

moderate
high
high
mechanistic

Front 64

Process (continuous) production:
____ vertical differentiation
____ horizontal differentiation
____ formalization
Most effective structure: ____

Back 64

high
low
low
organic

Front 65

The greater the uncertainty, the more an organization need to have a ____ organizational design.

Back 65

organic

Front 66

An organization's ____ guides the behavior and actions of all employees inside the organization

Back 66

culture

Front 67

The culture of an organization needs to be in line with the ___ and the ___.

Back 67

mission and strategy

Front 68

Organizational culture?

Back 68

the shared beliefs, values, and norms that bind people together and help them make sense of the systems within an organization; tells us "what is to be done" and "how it is to be done"

Front 69

Whatever else the culture may value, it prizes _____ most of all

Back 69

survival

Front 70

What are the 2 components of organizational culture?

Back 70

1)Substance (shared systems of beliefs, values, expectations, and norms)
2) Form (observable ways that members of a culture express ideas)

Front 71

What are artifacts?
Why are they tricky?

Back 71

Cultural routines
because they are hard to interpret

Front 72

Why are the components of organizational culture referred to as iceberg elements?

Back 72

Because the visible artifacts can be seen from the top (form) but those behaviors are sustained by values deep within the organization

Front 73

What are stories and sagas?

Back 73

narratives based on true events, frequently embellished

Front 74

How can culture be a double-edged sword?

Back 74

if it reinforces a singular view of the organization and its environment but when dramatic changes are needed, the organization has a hard time changing unless the culture is also transformed

Front 75

What are the 2 issues embedded in an organization's culture?

Back 75

Ethics and diversity

Front 76

To be successful, change must be consistent with ____________________________.

Back 76

important values in the culture and emerge from participants within the organization

Front 77

Entrepreneurship

Back 77

dynamic, risk-taking, creative, growth-oriented behavior

Front 78

The entrepreneur is willing to

Back 78

pursue opportunities in situations others view as problems or threats

Front 79

What are the 8 characteristics of entrepreneurs?

Back 79

1- Internal locus of control
2- High energy level
3- High need for achievement
4- Tolerance for ambiguity
5- Self-Confidence
6- Passion and action orientation
7- Self-reliance and desire for independence
8- Flexibility

Front 80

____ experiences and ____ environment seem to make a difference to entrepreneurs.

Back 80

childhood
family

Front 81

Because of their ____ or _____, entrepreneurs who try one venture often go on to others

Back 81

career or work history

Front 82

Entrepreneurs tend to emerge during

Back 82

certain windows of opportunity

Front 83

Small business?

Back 83

has fewer than 500 employees, is independently owned and operated, and does not dominate its industry

Front 84

What are the 3 reasons for why someone would want to launch their own business?

Back 84

#1 wanting to be your own boss and control your future
#2 going to work for a family-owned business
#3 seeking to fulfill a dream

Front 85

What are the most common ways to get involved in running your own small business?

Back 85

#1 start one
#2 buy and existing one
#3 buy and run a franchise

Front 86

A growing area for internet entrepreneurship is

Back 86

B2B, specialized business to business websites that link buyers and sellers

Front 87

What is the family business feud?

Back 87

members of the controlling family get into disagreements about work responsibilities

Front 88

What is the succession problem?

Back 88

the issue of who will run the business when the current head leaves (family businesses)

Front 89

What is a succession plan?

Back 89

Describes how the leadership transition and related financial matters will be handled when the current head of the family business leaves

Front 90

What are the 7 reasons that new businesses fail?

Back 90

1) Lack of experience
2) Lack of expertise
3) Lack of strategy/strategic leadership
4) Poor financial control
5) Growing too fast
6) Insufficient commitment
7) Ethical failure

Front 91

First-mover advantage?

Back 91

comes from being the first to exploit a niche or enter a market

Front 92

What are the 3 stages in the life cycle of an entrepreneurial firm?

Back 92

1- Birth stage
2- Breakthrough stage
3- Maturity Stage

Front 93

Business plan?

Back 93

describes the direction for a new business and the financing needed to operate it

Front 94

A. Sole proprietorship?
B. Parternship?
C. Corporation?
D. Limited Liability Corporation?

Back 94

A. an individual pursuing business for a profit
B. when 2 or more people agree to contribute resources to start and operate a business together
C. a legal entity that exists separately from its owners
D. a hybrid business form combining advantages of the sole proprietorship, partnership, and corporation

Front 95

Venture capitalists?

Back 95

Make large investments in new ventures in return for an equity stake in the business

Front 96

Angel investor?

Back 96

A wealthy individual willing to invest in return for equity in a new venture

Front 97

Intrapreneurship?

Back 97

Entrepreneurial behavior by people and subunits operating within large organizations

Front 98

Skunkworks?

Back 98

teams allowed to work creatively together, free of constraints from the larger organization

Front 99

Business incubators?

Back 99

Special facilities that offer space, shared services, and advice to help small businesses get started

Front 100

Small business development centers

Back 100

offer guidance and support to small business owners in how to set up and run a business operation

Front 101

in the context of managing the environment, the actions of an organization to enter the industry/market with limited competition and ample suppliers and customers is referred to as

Back 101

domain selection

Front 102

The process of "absorbing elements" to avoid threats

Back 102

cooptation

Front 103

in the context of managing the environment, the actions of an organization to improve the relations with competitors is referred to as

Back 103

competitive pacification