MGMT 309 Study Guide #2
What are the 2 levels of strategy?
1. business-level = alternatives chosen from with business in a particular industry 2. corporate-level = alternatives chosen from with operations across several industries and markets
what are the 3 conditions under which decisions are made?
1. certainty 2. risk 3. uncertainty
What are Porter's 3 generic strategies?
1. differentiation = distinguishing itself through quality 2. overall cost leadership = reducing costs below costs of competitors 3. focus = concentrated on specific market, product line, or group of buyers
What are the 4 stages of the product life cycle?
1. introduction 2. Growth 3. Maturity - 4. Decline stage
what are the 2 types of decisions?
1. programmed = decision that is relatively structured or recurs with some frequency 2. non programmed = decision that is relatively unstructured and occurs much less often than a programmed decision
What are Miles and Snows' 4 types?
1. prospector = firm encourages creativity and flexibility 2. defender = focused on lowering costs and improving performance 3. analyzer = maintaining current businesses and being somewhat innovative in new businesses 4. reactor = firm has no consistent approach
What are the 4 purposes of goals?
1. provide guidance and unified direction 2. affects other aspects of planning 3. specific and moderately difficult goals can motivate employees 4. provide an effective method for evaluation
What is formal goal setting?
An effective technique for integrating goal setting and planning
what is a service organization
an organization that transforms resources into an intangible output and creates time and place utility for its customers ex. hair salon, restaurant
risk in decision making
availability of each alternative and its potential payoffs and costs are all associated with probability estimates, moderate ambiguity
BCG Matrix - Cash cows?
businesses that have a large share of a market not expected to grow substantially
BCG Matrix - Dogs?
businesses that have a very small share of a market that is not expected to grow
BCG Matrix - Question Marks?
businesses that have only a small share of a fast growing market
BCG Matrix - Stars?
businesses that have the largest share of a rapidly growing market
dollar shave club
capacity utilization
what is an operation system?
collection of processes and procedures that enable a company to achieve the highest level of efficiency
what does operations management impact?
competitiveness, quality, productivity, and effectiveness
PL Cycle - Decline Stage
demand decreases and total sales drop, should keep costs low to survive
PL Cycle - Maturity Stage
demand growth and # of new firms slows down, firms should focus on product differentiation
PL Cycle - Introduction Stage
demand is high and can outpace supply ability
uncertainty
don't know all alternatives, risks associated with each, or likely consequences, have to approach situation for a rational perspective
what is strategic imitation?
duplicating another organization's competence into a valuable strategy
Mildred
engaged in decision making by ignoring her friend
What does a strategic plan usually have?
extended time horizon, address questions of scope, resource deployment, competitive advantage, and synergy
What is the BCG Matrix?
framework for evaluating businesses within an organization relative to the growth rate of the market and organization's share of market
What does an organizational mission lead to?
goals and plans
What is the product life cycle's purpose?
helps plot strategy
what is a product-service mix?
how many and what kinds of products or services to offer
Strengths of formal goal setting?
improved motivation and communication, objective performance appraisals, appropriate goals and plans, identifies managerial talent, facilitates control
What is a tactical goal?
intermediate-term set by and for middle managers, focused on actions necessary to achieve strategic goals
Certainty in decision making
knows alternatives and the conditions associated with each
What is a strategic goal?
long-term set by and for top management, focused on broad, general goals
PL Cycle - Growth Stage
more firms begin producing, sales grow, threat to competitive advantage
stars, question marks, and dogs
net cash users
What is a strategic plan?
outlines decisions of resource allocation, priorities, and action steps necessary to reach strategic goals
Weaknesses
poor implementation, lack of top management support, overemphasizing quantitative goals, assigned goals lead to resentment and lack of commitment
what is scope?
range of markets in which an organization will compete
what is managerial ethics?
relationships of the firm to its employees, of employees to the firm, and of the firm to other economic agents, personal ethical standards shape how we respond and proceed
what is robotics?
science and technology of the construction, maintenance, and use of robots that perform human functions
What is an operational goal?
short-term set by and for lower-level managers, focused on short-term issues associated with tactical goals
What is a SWOT Analysis?
strengths, weaknesses, opportunities, threats
what is bounded rationality?
suggests that decision makers are limited by their values and unconscious reflexes, skills, and habits
what is operation management?
total set of managerial activities used by an organization to transform resource inputs into products, services, or both
how do we evaluate decision alternatives?
try to choose the most effective option
external SWOT analysis
want to exploit opportunities for high performance, threats increase difficulty of high performance
internal SWOT analysis
want to exploit strengths and have distinctive competencies, often reluctant to focus on weaknesses
What is an organizational mission?
a statement of an organization's fundamental purpose, premises, values, and directions
what is capacity?
amount of products, services, or both that can be produced by an organization
What is strategy?
a comprehensive plan for accomplishing an organization's goals
