fundamentals of management

Dogs

are businesses with a small share of a market that is stable or declining

Single-use plans

are developed to address situations that probably will not occur again

Standing plans

are developed to carry out activities that the organization needs to perform repeatedly

GE Business Screen

considers industry attractiveness and competitive position

Contingency planning

formulates a different course of action to be taken if the original plan is no longer feasible

tactical goals

goals that define the outcomes that major dvisions and departments must achieve in order for the organization to reach its overall goals

operational goals

goals that specify details associated with accomplishing the organization-wide goals.

In the stage, sales continue to grow while other firms enter the market

growth

Stars

have a large share of a rapidly growing market

resource deployment

how it will distribute its resources among various areas of the business

Action point 3

managers identify the signs that indicate a contingency event may be occurring, and they develop plans to reduce or avoid the risk. Then managers monitor the environment for these indicators.•

in this stage, After a period of growth, demand for the product or service stabilizes, and fewer new firms enter the market

maturity

The first step in planning is to define the ______ , which states the organization's purpose, premises, values, and directions.

mission

The goals that are directly based on the strategic goals and plans are the

tactical goals

The strategic goals and plans determine the ______ Together with the strategic plans, the _______ are inputs to the tactical plans.

tactical goals.

strategic business units

the different businesses or sets of related businesses

strategy

the skillful planning and management of anything

mission

a statement of its "fundamental, unique purpose that sets a business apart from other firms of its type"

Cash cows

have a large share of a stable market.

Question marks

have only a small market share but are in a rapidly growing market

tactical plan

helps to implement all or parts of a strategic plan

organizational weaknesses

the drawbacks that hinder an organization in executing strategies in pursuit of its mission

The factors that determine industry attractiveness are similar to

the environmental opportunities and threats in SWOT analysis

When a successful product or service is in the — stage, demand begins to grow

the introduction stage

focus strategy

when an organization concentrates on a particular region, product, or customer group.

differentiation strategy

when an organization makes products or services of high quality to distinguish them from those of its competitors.

overall cost leadership strategy

when an organization seeks to reduce costs so it can charge lower prices than its competitors and still make a profit.

Tactical Planning

developed to implement specific parts of a strategic plan. focus primarily on people and action

strategic management

set of managerial decisions and actions that determine the long run peformance of a corporation.

operational plan

setting standards and schedules necessary to implement the company's tactical objectives.

organizational strengths

skills and capabilities that enable an organization to conceive of and implement its strategies

policy

states how the organization will respond to a given situation.

When top managers develop_____________plans, they primarily discuss resource allocation, competitive advantage, and synergies between different parts of the organization

strategic

Next, the manager determines the _______ . These give rise to the strategic plans to achieve those goals.

strategic goals

Managers are engaged in ______when they participate in a thorough, ongoing process of formulating and executing strategies

strategic management

Tactical plans are directly based on the

strategic plans and tactical goals

________is a comprehensive plan that describes the set of alternatives from which an organization chooses as it seeks to achieve its goals

strategy

SWOT

strengths, weaknesses, opportunities, and threats

unrelated diversification

A large organization operating in multiple businesses, industries, or markets with little or no relation to each other

related diversification

A large organization operating in multiple different but related businesses, industries, or markets

Contingency planning steps

Action Point 1-4

Two portfolio management techniques are the

BCG matrix and the GE Business Screen

strategic goals

Broad statements of where the organization wants to be in the future; pertain to the organization as a whole rather than to specific divisions or departments.

operational plans

Derived from tactical plans, operational plans are developed to achieve operational goals

If an organization is following Porter's focus strategy, what should its managers decide to do?

Determine what a subset of customers desires and tailor a product to them

BCG Matrix Types

Dogs, Cash Cows, Stars, Question Marks

effective strategies

If someone plays the prisoner's dilemma repeatedly with the same partner, an effective strategy is tit for tat: Cooperate unless the other person competes, and then retaliate.

Operational plans can be classified in two ways

Standing plans, Single-use plans

What are managers focusing on when they determine the organization's strategy?

Strategy formulation

Which of the following describes tactical goals?

These goals are set by middle managers, are focused on how to achieve broad goals, and have medium time frames.

Which of the following are reasons that organizations set goals?

To give people in the organization a unifying direction To prompt managers to make adjustments to improve performance To aid in measuring results

Formulating Corporate-Level Strategies

When a large organization is engaged in multiple businesses, industries, and/or markets, managers decide which opportunities the organization will pursue and how to manage the various lines of business

GE Business Screen Types

Winners, Losers, Question Marks, Average Business, Profit Producer

effective strategy

aligns the organization with its environment and positions it to achieve strategic goals

strategy formulation

creation of a broad program for defining and meeting an organization's goals

demand for a product or service will begin to decline, and the business enters the stage

decline

Rules and regulations

describe exactly how specific activities must be carried out

scope

describes the types of markets in which the organization will compete.

product life cycle

introduction, growth, maturity, decline

Strategic management

is a thorough, ongoing process for developing and implementing strategies

Resource deployment

is how the organization will allocate various resources across the businesses competing in different markets

distinctive competence

is something the organization does very well—better than its competitors

Diversification

is the number and diversity of businesses in which an organization is engaged

Tactical goals and plans in turn determine the ______ Then together with the tactical plans, the _______ become inputs to the operational plans

operational goals.

Porter's Generic Strategies

organizations may pursue a differentiation, overall cost leadership, or focus strategy.

strategic plan

plan reflecting decisions about resource allocations, company priorities, and steps needed to meet strategic goals

Types of standing plans include

policy, standard operating procedure (SOP), Rules and regulations

single-product strategy

providing just one product or service

BCG matrix

rates businesses by their market share and the growth of that market

A statement describing which markets or businesses the organization will compete in is describing the _______of the organization's strategy.

scope

standard operating procedure (SOP)

outlines the steps to be followed under certain circumstances

Action point 4

the organization has successfully carried out either its original plan or its contingency plan.

Action point 1

the organization is making its strategic, tactical, and operational plans, and managers consider possible contingencies

Action point 2

the organization puts its plans into place, and the highest-risk contingencies are defined

The factors that determine competitive position are similar to

the organizational strengths and weaknesses in SWOT analysis

business-level strategy

the set strategic alternatives from which an organization chooses as it conducts business

corporate-level strategy

the set strategic alternatives from which an organization chooses as it manages its operations simultaneously across several industries and several markets

distinctive competence

what a company can make, do, or perform better than its competitors

crisis management

which is the set of procedures the organization uses to respond to a disaster. part of contingency planning

strategy implementation

the use of managerial and organizational tools to direct resources toward accomplishing strategic results

Diversification

makes organizations more resilient

scope

a strategy specifies the range of markets in which an organization will compete