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16 Cards in this Set
- Front
- Back
What are the steps in the Rational Decision Making Process? |
Rational Decision Making Process Step 1: Clarify the purpose of the decision - decision statement and level of decision (rock metaphor: raising reduces # of choices, lowering increases # of choices) - develop criteria - determine which are 'musts' and 'wants' - weight the 'wants' Step 2: Evaluate choices - screen through 'musts' (go/no go) - compare the 'wants' - score each ^ - calculate weighted score - calculate total Step 3: Assess risk of top choices Step 4: Make a balanced decision - high gain, low risk- high gain, high risk- low gain, low risk- low gain, high risk risk- high gain, high risk- low gain, low risk- low gain, high risk - high gain, high risk- low gain, low risk- low gain, high risk - low gain, low risk risk- low gain, low risk- low gain, high risk - low gain, high risk |
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Does the Planning Function focus on efficiency or effectiveness? |
Planning focuses on effectiveness |
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What is Top Down Cascading Goals? |
Top Down Cascading Goals: Corporate goals ↑↓ Divisional Goals ↑↓ Department Goals ↑↓ Individual employee OBJECTIVES ↑↓ Implementation plans, activities, actions = Results!! |
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What are the 6 reasons for setting goals? |
Reasons to Set Goals: 1. Effectiveness 2. Sets Direction 3. Sets Targets 5. Reduces Uncertainty 4. Provides focus5. Reduces Uncertainty6. Higher Level of Performance "plan the work, then work the plan" 6. Higher Level of Performance focus5. Reduces Uncertainty6. Higher Level of Performance "plan the work, then work the plan" "plan the work, then work the plan" |
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What are the benefits of Management by Objectives (Mbo) |
MBO: - clarifies performance targets - sets mutual expectations - helps employees to set priorities - basis for developing the plans to get the job done - basis for ongoing feedback from supervisor and employee - serves as a performance self monitoring checklist for employees - foundation of the performance appraisal |
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What are SMART goals? |
S = Specific M = Measurable A = Agreed R = Realistic T = Time based
"Goals without a deadline are only dreams"
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What are Stretch Objectives? |
Stretch Objectives: Goals that are still realistic, but are challenging to achieve (the point is personal development) |
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What are the 7 steps of the Strategic Management Process? |
Strategic Management Process Step 1 to 4: identify the organizations.. Values Vision Mission Goals Step 5: SWOT Analysis Step 6: Develop and Implement Strategies Step 7: Evaluate results (control) |
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What are Value Statements? |
Value Statements: - Convey a sense of identity - foundation of organizational culture - serves as a reference point for managers |
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What are Vision Statements? |
Vision Statements: - where are we going? - clear, compelling, aspirational goal that describes a future desired state that is challenging to achieve |
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What are Mission Statements? |
Mission Statements: - what do we do? what is our purpose? - the reason for being in business (focus on product, service and customers) |
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What is Incremental Growth Strategy? |
Incremental Growth Strategy: - slowly and gradually expanding the number of products, customers, markets, services, distribution networks - using technology to advance the business - Growing Grassing analogy |
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What is Renewal Strategy? |
Renewal Strategy: - to stabilize the organization during tough economic times by reducing the company's activities or operations - used when: Organizations are not meeting financial goals, Performance is declining, or Organization is in trouble - Raining vs. Storming Analogy: Which is ... The severity of the strategy determined by the severity of the storm ^ when it's raining: You cut costs, tighten budgets, freeze capital spending, freeze hiring process ^ when it's storming: You close underperforming stores/product lines/services , restructure the business, or liquidate the business |
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What is the BCG Matrix ? |
BCG Matrix (Boston consulting group): Assesses each business entity based on 1) current market share and 2) anticipated growth rate Classifications: (Invest in) Stars = high MS high growth (Milk) Cash Cows = high MS, low growth (Sell/liquidate) Dogs = low MS, low growth (Sell off) '?' Mark = Low MS, high growth |
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What is Michael Porter's 5 Competitive Strategies? |
Porter's 5 Competitive Strategies: - focus on a strategy that will provide a competitive edge for the product/service/business - products, services, and divisions may have different competitive strategies in the same organization depending on their markets 5 Competitive Strategies: 1. Low Cost ^ Walmart 2. Broad scope, differentiation + premium pricing ^ Starbucks 3. Best Cost + upscale differentiation ^ IKEA 4. Focused + lower cost ^ Greyhound 5. Focused, differentiation + premium pricing ^ Bugatti |
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What are the key factors in Porter's Model? |
Key factors of Porter's Model: 1. Cost (low vs premium) 2. Product/Service 3. Scope (narrow vs. broad) 4. Focus (target market) 5. Differentiation (unique features) |