Chapter 5,6,8 Managment
________ is the process by which a company compares its performance with that of high-performing organizations.
Benchmarking
According to Porter, the cost-focus and focused-differentiation strategies have what in common?
Both focus on narrow markets.
diversification strategy
Companies generally diversify to either grow revenue or reduce risk
Levels of Strategy
1. Corporate 2. Business 3. Functional
Planning and Strategic Management
1. Establish the organization's mission and vision 2. Formulate the grand strategy 3. Formulate the strategic plans, then the tactical and operational plans 4. Implement the strategic plans 5. Control the strategy
Three Levels of Organizational Culture
1. observable artifacts 2. espoused values 3. basic assumptions
Market Culture
A Competitive Culture Valuing Profits over Employee Satisfaction
Adhocracy Culture
A Risk-Taking Culture Valuing Flexibility
Hierarchy Culture
A Structured Culture Valuing Stability and Effective
MBO (management by objectives)
A system of goal setting and implementation; it involves a cycle of discussion, review, and evaluation of objectives among top and middle-level managers, supervisors, and employees.
Clan Culture
An Employee-Focused Culture Valuing Flexibility, Not Stability
functional level strategy
Applies to the key functional departments or units within the business units
business level strategy
Focuses on individual business units or product/service lines
corporate level strategy
Focuses on the organization as a whole
Growth strategy
Involves expansion, as in sales revenues, market share, number of employees, or number of customers
stability strategy
Involves little or no significant change
defensive strategy
Involves reduction in the organization's efforts
Cost focus strategy (Porter)
Keeping costs and prices low for a narrow market
Cost-Leadership Strategy (Porter)
Keeping costs and prices low for a wide market
Focused-Differentiation Strategy (Porter)
Offering unique and superior value for a narrow market
Differentiation Strategy (Porter)
Offering unique and superior value for a wide market
question marks
Risky new ventures- some will become stars, some dogs
________ is the process wherein alternative possible plans are created and then the one that best fits the situation is applied.
Scenario analysis
common purpose
The means for unifying members
Organizational culture
The shared assumptions that affect how work gets done
Victoria, a shift manager in a shoe factory, directly supervises 40 employees on her shift. The 40 workers who report directly to Victoria represent her
span of control.
vision statement
What do we want to become? long-term goal describing "what" an organization wants to become
mission statement
What is our reason for being? its purpose or reason for being
Executives, often referred to as the "C-Suite," should focus their decision making on which of the following?
What products and services shall we offer?
Organizational structure
Who reports to whom and who does what
division of labor/specialization
Work specialization for greater efficiency
Coordinated effort
Working together for common purpose
Operating plan
a plan that "breaks long-term output into short-term targets" or goals
A SWOT analysis is a
a search for the strengths, weaknesses, opportunities, and threats affecting an organization
matrix structure
an organization combines functional and divisional chains of command in a grid so that there are two command structures—vertical and horizontal
Hierarchy of authority
chain of command
Which of Edgar Schein's common elements unifies employees and gives everyone an understanding of the organization's reason for being?
common purpose
four proposed by edgar schein. Major Features of Organizations
common purpose, coordinated effort, division of labor and hierarchy of authority.
Organizations using a matrix structure
contain two command structures, in which some people report to two bosses.
This year's sales at Yours Truly Consignment have been strong, and next year's sales are also projected to be good. Even so, Yours Truly managers should conduct ________ so they are prepared in the case that sales drop unexpectedly.
contingency planning
to maximize profitability and competitiveness, firms must
create alignment across all levels of strategy
Symbols, stories, heroes, and rites and rituals are ways in which ____ is (are) most often transmitted to employees.
culture
The second step in the strategic-management process is a(n) ________, where managers look at where the organization stands, and then determine what is working and what could be different to maximize efficiency and effectiveness in achieving the organization's mission.
current reality assessment
at the strategic level of planing, managers must pay attention to the environment outside the organization, be future oriented, and
deal with uncertain and competitive conditions
A company that gradually phases out product lines or liquidates its inventory is pursuing a ________ strategy.
defensive
Organizational weaknesses in a SWOT analysis are
drawbacks that hinder an organization in executing strategies.
In order, the steps of the strategic-management process are
establish the mission, vision, and values statements; assess the current reality; formulate the grand strategy; implement the strategy; and maintain strategic control.
Strategic level planning
generates long term forecasts of demand (more than one year into the future), that are used to make grand technology or facility plans.
For division of labor to work, there must be a minimum of four employees.
false
Jack Welch's technique for developing business-level strategy represents an academic approach
false
an organizational structure is a set of shared, take-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its environments.
false
organizational culture appears in four levels: clan, adhocracy, market and heirarchy
false
organizational psychologist Edgar Schein recommends that managers delegate emergencies, confidential matters, and personnel-related matters.
false
Duracell, a company well-known for manufacturing alkaline batteries, derives its strategic position from which source?
few needs, many customers
stars
have high growth, high market share - definite keepers
dogs
have low growth, low market share - should be gotten rid of.
cash cows
have slow growth but high market share- income finances stars and question marks
goal
is a specific commitment to achieve a measurable result within a stated period of time
Cyril, who manages an ATV dealership, is determined to implement management by objectives to help
motivate his employees
__________ can be another term used for goal.
objective
A company dress code and award ceremonies would be part of
observable artifacts.
The managerial tools for ___________ include a SWOT analysis, forecasting, and VRIO analysis
organizational assessment
The three levels of ___________ are strategic, tactical and operational.
planning
A financial services company with insurance, investments, mortgages, and banking divisions is best characterized as having a
product structure.
a forecast is
projection for the future
Which managers would be at Level 2: Business-level strategy?
retail unit managers
________ is another term for a defensive strategy.
retrenchment strategy
In a SWOT analysis, organizational strengths are
skills and capabilities that give a company advantages in executing its strategies.
"Be all you can be" is an example of a
slogan or saying
In the BCG matrix, ________ are companies that have high growth and high market share, and are definite keepers.
stars
BCG Matrix
stars, question marks, cash cows, dogs
after establishing value statement, what is the next step in planning?
strategic planning
The three key principles of ________ are the creation of a unique and valuable position, trade-offs in competing, and creating a "fit" among activities.
strategic positioning
3 levels of planning
strategic, tactical, operational
Action plan
the course of action needed to achieve a stated goal. Whether the goal is long term or short term, action plans outline the tactics that will be used to achieve a goal
Strategic implementation is thought to be
the greatest managerial challenge in strategic management.
"Increase market share by 4% a year for each of the next 5 years" is an example of a strategic goal
true
Mateo, a florist, recently learned about strategic management and wants to implement this process for his flower shop. Mateo should begin by establishing mission, vision, and values statements.
true
Optimistic people view challenges as opportunities to influence decisions.
true
Before moving forward with its strategic management, organizations should develop vision statements that describe
what the company wants to become and where it wants to go strategically.
A mission statement expresses ______________, and a vision statement expresses _____________.
why the organization exists; what the organization wants to become
which of these explains why authority is most effective in a hierarchy
without tiers of authority, it would be difficult to get things done.