Mgmt Ch. 3

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bwood190
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241615
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Mgmt Ch. 3
Updated:
2013-10-22 10:53:08
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Management
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Prep for midterm
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  1. Planning
    • Managerial function that involves
    •  - define orgs goals
    •  - establish strategy for acheiving goals
    •  - develop plans to integrate and coordinate work
    • Types of planning
    •  - informal = not written down. short term focus, specific to an org unit
    •  - formal = written, specific, long term, shared goals for org
  2. Purposes of planning
    • provides direction towards achieving goals
    • reduces uncertainty
    • minimizes waste and redundancy
    • sets standard for controlling
  3. Relationship b/w planning and performance
    • formal planning brings higher profits
    • quality of planning and implementation affects performance more than the extent of planning
    • external env can reduce impact of planning on performance
    • formal planning must be used at least 4 years b/f planning begins to affect performance
  4. Elements of planning
    • goals (objectives)
    •  - desired outcomes for individuals, groups or orgs
    •  - provide direction and performance evaluation criteria
    • plans
    •  - docs that outline how goals are to be accomplished
    •  - describe how resources are to be allocated and establish activity schedules
  5. Traditional goal setting
    • broad goals are set at top of org
    • goals broken up into subgoals for each org level
    • goals are intended to direct, guide, and constrain from above
  6. Management by objectives (MBO)
    • performance goals are jointly set by employees and managers
    • progress toward accomplishing goals is periodically reviewed
    • rewards are allocated on the basis of this progress
    • KEY ELEMENTS = goal specificity, participative decision making, an explicit time period, performance feedback
  7. Characteristics of well designed goals
    • written in outcomes, not actions
    • measurable, quantifiable 
    • clear time frame
    • challenging yet attainable
    • written down
    • communicated to all necessary org members
  8. Breadth
    • STRATEGIC PLANS
    •  - apply to entire org
    •  - establish orgs overall goals
    •  - position org in terms of its env
    •  - cover extended periods of time
    • OPERATIONAL PLANS
    •  - specify the details of how overall goals are to be achieved
    •  - cover short time period
  9. Time frame
    • LONG TERM PLANS
    •  - time frames extending beyond 3 years
    • SHORT TERM PLANS
    •  - time frames one year or less
  10. Specificity
    • SPECIFIC PLANS
    •  - clearly defined and leave no room for interpretaion
    • DIRECTIONAL PLANS
    •  - flexible plans that set out general guidelines, but do not set out specific goals or courses of action
  11. Frequency of use
    • SINGLE USE PLAN
    •  - one time plan specifically designed to meet needs of unique situation
    • STANDING PLANS
    •  - outgoing plans that provide guidance for activities performed repeatedly
  12. Planning tools and techniques
    • Forecasting
    • Contingency planning
    • Scenario planning
    • benchmarking
  13. Forecasting
    predict the future and develop plans accordingly
  14. Contingency planning
    • identify alternative plans for outcomes that are different than expected
    • high uncertainty = plans that are specific and flexible
  15. Scenario planning
    type of contingency planning but is more long term
  16. Benchmarking
    Search for best practices among competitors and mimic them
  17. Strategic mgmt
    what managers do to develop orgs strategies
  18. Strategies
    • Plans for how org will do what it intends to do
    • do job successfully
    • satisfy consumers
  19. Business model
    • strategic design for how company will make profit of its strategies, work processes, and work activities 
    • focuses on 2 things
    • 1 will consumers value what company is doing
    • 2 will company make money doing it
  20. Strategic mgmt process
    6 step process from planning to implementation, evaluation
  21. STEP 1 Identify the orgs current vision, mission, goals and strategies
    vision and mission statements
  22. STEP 2 Do and internal analysis
    • provides info on resources and capabilities
    • RESOURCES
    • CAPABILITIES
    • CORE COMPETENCIES
    • QUALITY MGMT
    • STRENGTHS 
    • WEAKNESSES
  23. Resources
    • assets - financial, human, physical, intangible
    • used by org to develop manufacture and deliver products or services to consumer
  24. Capabilities
    skills and abilities in doing the work activities needed in business
  25. Core competencies
    orgs major value creating skills, capabilities and resources that determine its competitive weapons
  26. Quality mgmt
    philosophy of mgmt driven by continual improvement and responding to customer needs
  27. STEP 3 Do an external analysis
    • SWOT
    • know what competition is doing
    • analyze both general and specific env.
    • PESTEL
  28. PESTEL
    • political, economic, socio-cultural, technological, environmental, legal
    • shapes external env.
  29. STEP 4 Formulate strategies
    • develop and evaluate strategic alternatives
    • select strategies that capitalize on environmental opportunities, or strengths of business
    • complete when a strategy is developed that gives company an advantage over competition
  30. STEP 5 Implement strategies
    • has to be implemented properly to be effective
    • involve all members in this step
  31. STEP 6 Evaluate results
    • how effective have strategies been?
    • adjustments?
  32. Types of Organizational Strategies
    • Corporate
    • Business
    • Functional
  33. Corporate strategy
    • evaluates what business a company is in, should be in, or wants to be in and what it wants to do with these businesses
    • Factors
    •  - growth, growth strategy - org want to grow by expanding # of products offered or markets served
    •  - concentration, org concentrates on primary line of business. no acquisitions or merges, increase existing business
    •  - vertical integration, gain control of inputs or outputs eg. becoming own supplier
    •  - horizontal integration, org grows by combining with other companies
    •  - diversification, related - org acquires firms in similar, but different industries. Unrelated - org acquires firms in different unrelated industries
    •  - Stability, stability strategy - strategy characterized by absence of significant change in what org is already doing
    •  - renewal, when org is in trouble. Renewal strategies - 2 types 1. Retrenchment - reduces operations or activities. Helps to stabilize and revitalize. 2. Turnaround - org problems are more critical
  34. growth
    growth strategy - org want to grow by expanding # of products offered or markets served
  35. concentration
    org concentrates on primary line of business. no acquisitions or merges, increase existing business
  36. vertical integration
    gain control of inputs or outputs eg. becoming own supplier
  37. vertical integration
    gain control of inputs or outputs eg. becoming own supplier
  38. diversification
    • related - org acquires firms in similar, but different industries.
    • Unrelated - org acquires firms in different unrelated industries
  39. Stability
    stability strategy - strategy characterized by absence of significant change in what org is already doing
  40. renewal
    • when org is in trouble.
    • Renewal strategies - 2 types
    • 1. Retrenchment - reduces operations or activities. Helps to stabilize and revitalize.
    • 2. Turnaround - org problems are more critical
  41. Business Strategy
    Each unit w/i corp translates corporate strategy into a set of business strategies to give org a competitive advantage
  42. competitive advantage
    what sets company apart, its distinct edge that comes from core competencies
  43. cost leadership strategy
    • org sets out to be the lowest cost producer in its industry
    • cut out overhead costs
    • eg walmart
  44. differentiation strategy
    • company offers unique products that are widely valued by the customer
    • set the firm apart from competition
  45. focus strategy
    • company pursues a cost or differentiation advantage in a narrow industry segment
    • serve narrow segment
  46. stuck in the middle
    situation in which an org is unable to develop a competitive advantage through cost or differentiation
  47. Functional strategy
    • used by a functional department to support the business strategy of the org
    • eg. hr and accounting and employees all have same strategy in mind. Westjet

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