exam 2 kine 3400

four corporate growth strategies

-concentrate -integrate -diversify -growth strategies include mergers and acquisitions

four corporate-level grand strategies

-growth -stability -turnaround and retrenchment -combination

four steps in writing objectives

1. Start with "to" 2. Add an action verb 3. Insert a single, specific, and measurable result 4. Choose a target date

five steps in analysis of company situation

1. assess present strategy 2. analyze SWOTs (strengths, weaknesses, opportunities, threats) 3. assess competitive strength 4. make conclusions 5. decide what issues to address

five steps in strategic process

1. develop the mission 2. analyzing the environment 3. setting objectives 4. developing strategies 5. implementing and controlling strategies

five competitive forces

1. rivalry between competing firms 2. potential development of substitute products and services 3. potential entry of new competitors 4. bargaining power of suppliers 5. bargaining power of customers

three steps in management by objective process

MBO - the process by which managers and their teams jointly set objectives, periodically evaluate performance, and reward according to results 1. Set individual objectives and plans 2. Give feedback and evaluate performance 3. reward according to performance

decision trees

a diagram of alternatives. Breaking it down into alternatives and subalternatives

consensus mapping

a process for developing group agreement on problem's solution

Delphi Technique

a series of confidential questionnaires are used with a panel of experts to reach agreement on an issue. commonly used to identify trends that will affect a team or organization

nominal grouping

a structured voting method is used to generate and evaluate alternatives 1. list ideas 2. record the ideas 3.clarify the ideas 4. rank the ideas 5. discuss the rankings 6. vote

creativity

a way of thinking that generates new solutions to problems and new ways to approach opportunities

queuing theory

addresses waiting time

innovation

alters what is established by introducing something new

capital budgeting

analyzes investments in assets that will be used to generate revenues

six advantages of group decision making

better quality decisions, more info more alternatives, better understanding of problem and decision, greater commitment to the decision, improved morale and motivation, good training

five creativity and innovation techniques

brainstorming, synectics, nominal grouping, consensus mapping, the delphi technique

four quantitative analyses

break-even analysis, capital budgeting, queuing theory, probability theory

three decision-making conditions

certain, risky, uncertain

two decision-making models

classical rationale model ("optimizing") and bounded rationale model (uses "satisificing" and selects the first alternative that meets certain specified minimal criteria

cost-benefit analysis

combines subjective methods and mathematical techniques to compare alternative courses of action

Step 6: Control the Results

control methods should be developed as part of your plan, establish checkpoints to monitor progress in order to make sure that the chosen alternative is solving the problem

step 1: define the problem or opportunity

define the problem you want to solve or opportunity you want to capitalize on. Classifying the problem so you know which decision model you want to use

situation analysis

draws out those features in a company's environment that most directly frame its strategic window of options and opportunities THREE PARTS 1. analysis of the company's industry and its competition 2. analysis of the company's particular situation 3. analysis of the company's competitive advantage

optimizing

endeavors to select the best possible alternative

step 3: generate alternatives

exploring other alternatives based on facts, not just opinions

three planning benefits

faster decision making, better management of resources, and clearer identification of action steps needed to reach important goals

break-even analysis

forecasting the volume of sales and the cost of production

brainstorming

group members generate as many alternatives as they can in a short period of time

probability theory

helps managers make decisions in risky environmental conditions. a probability for the chance of failure is assigned to each of the alternatives. usually done by a payoff matrix or decision tree

certain business conditions

know the outcome of each alternative in advance so you can take quick action

uncertain business conditions

lack of information or knowledge makes the outcomes unknown or accurate probabilities cannot be made

strategic plans

management develops a mission and long-term objectives and determines in advance how they will be accomplished

operational plans

management sees short-term objectives and determines in advance how they will be accomplished

four functional-level operational strategies

marketing, operations, human resources, and finance

"must" vs "want" criteria

must criteria - have to be met to reach the objective want criteria - desirable but not absolutely necessary

step 5: implement the decision

need to develop a detailed plan to achieve your objective.

risky business conditions

not knowing each outcome in advance but can assign probabilities of occurrence for each one

synectics

novel alternatives are generated through role-playing and fantasizing

acquisition

one business buys all or part of another company

three stages in the creative process

prepare, incubate and illuminate, evaluate

two classifications of innovation

product innovation (new things including products) and process innovation (new ways of doing things)

two decision structures

programmed and nonprogrammed

three business-level adaptive strategies

prospecting, defending, analyzing

programmed decisions

recurring or routine situations in which the decision maker shoud use decision rules or organizational policies and procedures to make the decision

three decision-making styles

reflexive- "shoot from the hip" snap decisions without considering all info and considering other alternatives reflective- consistent -

step 4: select the most feasible alternative

selecting the "best" alternative. most feasible might not always be the best alternative though. Use an ethical guide to consider the ethics of each alternative

step 2: set objectives and criteria

set an objective that states the end result to solve the problem or capitalize on the opportunity

nonprogrammed decisions

significant but nonrecurring and nonroutine. Should use decision making model. take longer. must be expensive or have major consequences

competitive advantage

specifies how the organization offers unique customer value

goals

state general targets to hit these are the target

objectives

state what is to be done in specific and measurable terms by a certain target date help you know if you are hitting the target

forward integrations

the line of business is closer to the final customer

backward integations

the line of business is farther away from the final customer

corporate level strategies

the organization's plan for managing multiple lines of businesses

functional-level strategies

the organization's plan for managing one area of the business. ex. marketing, finance, accounting etc

business-level strategies

the organization's plan for managing one line of business

four characteristics of useful information

timeliness, quality, completeness, relevance

merger

two companies form one new company

five disadvantages of group decision making

wasted time and slower decision making, satisficing, domination by subgroup or individual and goal displacement, conformity and groupthink, social loafing

satisficing

when meetings are not run effectively "lets be done with this attitude"