MGMT 309: Exam 2 review
administrative model
A decision-making approach/model that argues that decision makers use incomplete and imperfect information, are constrained by bounded rationality, and tend to "satisfice" when making decisions
prospector strategy
Miles & snow identified business strategy that encourages decentralized creativity/flexibility for growth and innovation
coalition, intuition, escalation of commitment, risk propensity, personal ethics
What are the 5 elements of behavioral decision making that can affect a managers' decision?
value added analysis, benchmarking, outsourcing, reducing cycle time, statistical quality control
What are the 5 tools/techniques of total quality management?
specific, measurable, attainable
What are the characteristics of a good mission statement?
programmed, nonprogrammed
What are the two types of decisions?
competition, productivity, lowers costs
Why is quality so important?
product/service mix
a decision that concerns how many/what kinds of products and services and org will offer
capcity
a decision that concerns the amount of products/services that can be produced by an org
facilities
a decision that concerns the physical locations where products will be created/stored/distributed
management by objectives (MBO)
a formal goal-setting process involving collaboration between managers and subordinates; the extent to which goals are accomplished is a major factor in evaluating and rewarding subordinates' performance
process layout
a layout that organizes the transformation process into departments that group related processes
represents operational goal
a line manager in a brewery. In this case, he sets a target for the minimum number of beer cartons that have to be shipped out by the end of each day.
contingency plan
a plan to determine alternative courses of action to be taken if an intended plan is unexpectedly disrupted or rendered inappropriate (aka: crisis mgmt)
action plan
a plan used to operationalize any other kind of plan
economies of scale
a proportionate saving in costs gained by an increased level of production
sustained competitive advantage
all attempts at strategic limitation have ceased
business level strategy
alternatives that an organization chooses from as it conducts business in one market/industry
corporate level strategy
alternatives that an organization chooses from as it manages operations across several markets/industries
productivity
an economic measure of efficiency and what is produced relative to the resources used to produce it
distinctive competence
an organizational strength, the thing we do better than everyone else or something only a small group of firms can compete with
opportunities
areas in the environment that if exploited can generate higher performance
threats
areas in the environment that increase difficulty of achieving high performance
strategic goal
broad/general goals set by top management
nonprogrammed decisions
decisions that are relatively constructed and occur less often. Reactive to facing something different/new. want to get out as many ideas/alternatives as possible
strategic imitation
duplicating another firm's competence into a valuable strategy
SWOT analysis
helps develop strategies. look at organization's missions. deliberate in nature. internal + external analysis
value added analysis
look at every work activity, material flow, and paperwork to determine the value they add to customers
inventory control/materials control
managing raw materials, work in progress, finished goods, and products in transit
single product strategy
manufactures just one product or service and sells it in a single geographic market
defender strategy
miles & snow identified business strategy that focuses on lowering costs and improving current products rather than on innovation
reactor strategy
miles & snow identified business strategy that has no consistent approach
analyzer strategy
miles & snow identified business strategy that maintains current business along with moderate innovation
unrelated diversification
operate multiple businesses that are not really associated with one another
related diversification
operate several businesses that are somehow related to one another
forward vertical integration
organization conducts activities formally done by its customers
backward vertical integration
organization conducts activities formally done by suppliers
partial productivity ratio
outputs / 1 category of resources
total factor productivity
outputs / inputs
labor productivity
outputs / labor costs
standing plan
planning for activities that happen regularly over a period of time
worldwide learning
source of international competitive advantage where you gather the best practices from many areas/locations
introduction, growth, maturity, decline
stages of the product life cycle
economies of scope
the ability to use one resource to provide many different products and services
diversification
the number of different businesses that an organization is engaged in and the extent to which these businesses are related to one another
industry productivity
the total productivity of all the firms in an industry
quality
the totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs
cycle time
time needed by the organization to accomplish an activity. You want to reduce this time
aggregate productivity
total level of productivity achieved by a country
product layout
type of layout that is based around the product (ex: assembly line)
emergent strategy
type of strategy developed in the absence of/despite missions and goals. more reactive
deliberate strategy
type of strategy that chooses plan of action based on specific goals/mission. very intentional
performance, features, reliability, conformance, durability, serviceability, aesthetics, perceived quality
what are the 8 dimensions of quality?
reduce economic risk and overhead costs, synergy, exploit strengths
what are the benefits of related diversification?
stable performance, resource allocation advantages
what are the benefits of unrelated diversification?
deliberate, emergent
what are the types of strategies?
decision making
choosing 1 (the best) alternative from a set of alternatives on a situation
total quality management (TQM)
commitment by top management to change the whole approach to their business and make quality the top guiding factor
strategy formulation
conceiving what the strategy is going to be. the set of processes involved in creating/determining the strategies of the organization. Focuses on content of strategies
purchasing management/procurement
concerned with buying materials/resources needed to produce products and services
weaknesses
don't enable and limit our strategy and mission. you want to avoid these
coalition
element of behavioral decision making in which an informal alliance is formed to achieve a common goal
risk propensity
element of behavioral decision making that refers to the extent to which a decision maker gambles when deciding
escalation of commitment
element of behavioral decision making where managers stay with a decision even when its wrong
intution
element of behavioral decision making without conscious deliberation (gut feeling)
strengths
enable us to implement our strategy and make us more competitive. you want to exploit these/use to your own advantage
in process sampling
evaluating during production to make changes if needed (part of SQC)
IBM
example of company that uses analyzer strategy
Auntie Anne's
example of company that uses defender strategy
office depot
example of company that uses reactor strategy
3M, google, amazon
examples of companies that use prospector strategy
operational goal
goals focused on short-term issues, set for and by lower level management
tactical goal
goals set for and by middle management
barriers
how do inappropriate, unachievable, unmeasurable goals; improper rewards systems; dynamic environments; reluctance to establish goals; resistance to change; affect the goal setting process?
invest in strengths or modify mission
how do you address weaknesses?
R/D, revamp facilities, increase employment involvement
how do you improve productivity?
know pros/cons, set deadlines, avoid dominance/groupthink
how do you manage group/team decision making?
understand purpose, communication, consistency, effective reward system
how do you overcome goal setting barriers?
resource deployment
how to distribute resources across areas in which the organization competes
fixed position layout
layout in which labor, equipment, materials, and other resources are brought to the same area where all production work is done (ex: building a plane)
company productivity
level of productivity achieved by 1 company/firm
unit/individual productivity
level of productivity achieved by 1 department/unit of a firm or an individual
benchmarking
process of learning how other firms do things well
supply chain management
process of managing all operations control, resource acquisition, and inventory to improve efficiency/effectiveness
technology
processes/systems we use to convert resources into products/services
scope
range of markets in which an organization will compete
decision making process
recognizing and defining the nature of a decision situation, identifying alternatives, choosing the "best" alternative, and putting it into practice
computer assisted manufacturing
relies on computers to design/manufacture products
acceptance sampling
sampling finished goods for quality standards (part of SQC)
satisfice
searching for alternatives until one is found that meets minimum standards for sufficiency. accepting solutions that are "good enough"
operations management
set of managerial activities that an organization uses to transform resources into products/services they sell
location efficiencies
source of international competitive advantage where it is easier to locate cost advantages (ex: cheap labor) and choose where to be located
mission statement
statement of the organization's fundamental purpose
outsourcing
subcontracting of services and operations to an outside vendor/firms that perform cheaper/better
strategy implementation
takes the strategies and they are executed within the organization. focuses on the processes used to achieve those strategies
Statistical Quality Control (SQC)
techniques used to monitor quality
programmed decisions
type of decision that is fairly structured and/or occurs with frequency. quick, almost automatic decision-making
manufacturing
type of form utility industry, that transforms input into tangible outputs
service organization
type of time/place utility industry, that transforms inputs into intangible outputs
computer-aided design
using computers to design parts, complete products, simulate performance so that prototypes don't need to be constructed
product life cycle strategy
using the knowledge of how products enter the market and grow to dictate strategies
aggregate, industry, company, unit/individual productivity
what are 4 levels of productivity?
programs, projects
what are the 2 types of single use plans?
distinctive competence, scope, resource deployment
what are the 3 components of strategy?
total factor productivity, partial productivity ratio, labor productivity
what are the 3 forms of productivity?
feasible, satisfactory, affordable consequences
what are the 3 questions used to evaluate an alternative?
prospector, defender, analyzer, reactor
what are the 4 business strategies identified in miles & snow typology?
start, establish, collaborate, communicate, review, evaluate
what are the 6 steps of the formal-goal setting process (MBO)?
strategic, tactical, operational
what are the levels of goals?
area, time
what are the two ways you can categorize goals by?
strategic, tactical, operational
what are the types of plans?
competitive disadvantage
when a firm is not implementing valuable strategies that other competing firms have
competitive advantage
when an organization successfully exploits their competencies to the greatest degree
bounded rationality
A set of boundaries or constraints that tend to complicate the rational decision-making process. Ex: values, unconscious reflexes/skills/habits, personal belief systems
new products, replace suppliers/customers, mergers/acquisitions
What are 3 ways that companies can diversify?
product/service mix, capacity, facilities (layout)
What are the 3 decisions that need to be made when it comes to designing operating systems?
global efficiencies, multimarket flexibility, worldwide learning
What are the 3 sources of competitive advantage of international/global strategies?
policies, standard operating procedures, rules/regulations
What are the 3 types of standing plans?
complete/perfect info, eliminate uncertainty, evaluate rationally/logically
What are the conditions of the classical decision model?
recognize situation, identify alternatives, evaluate, select best one, implement, evaluate
What are the steps in the decision-making process?
strengths, weaknesses, opportunities, threats
What does SWOT stand for?
classical decision model
a perspective approach to decision making that tells managers how they should make decisions; assumes that managers are logical and rational and that their decisions will be in the best interests of the organization
single use plan
a plan developed to carry out a course of action that is not likely to be repeated in the future
reaction plan
a plan developed to react to an unforeseen circumstance
strategic plan
a plan that focuses on achieving strategic goals
tactical plan
a plan that focuses on carrying out strategic plans and achieve tactical goals
operational plan
a plan that focuses on carrying out tactical plans to achieve operational goals
cellular layout
a type of layout typically used in group technology settings in which resources are physically arranged according to the dominant flow of activities for the product family
malcolm baldrige award
award given to firms who achieve major quality improvements
optimization
balancing and reconciling possible conflicts amongst goals