Exam 2: Chapter 6-10
Characteristics: Entrepreneurs (8)
1. Autonomy 2. High Energy 3. Need to Achieve 4. Self Confidence 5. Internal Locus of Control 6. Entrepreneurial Struggle 7. Tolerance of Ambiguity 8. Power of Influence
Characteristics: Business Plan (10)
1. Clear vision 2. Realistic financial projections 3. Profile Target Market 4. Profile the industry and competition 5. Provide an effective management team 6. Well written/formatted 7. Keep it short 8. Highlight risks 9. Spell out the sources of funding 10. Capture attention via summary
Concept: What are the steps in managerial decision making (6)
1. Recognition of Decision requirement 2. Diagnosis and Analysis of Causes 3. Development of Alternatives 4. Selection of Desired Alternative 5. Implementation of Chosen Alternative 6. Evaluation and Feedback
Concept: What are the four categories of the corporate portfolio?
1. Stars 2. Question Marks 3. Cash cows 4. Dogs
Concept: Line of Authority
A management concept where the people in managerial positions have formal authority to direct and control immediate subordinates.
Concept: Diagnosis and Analysis of causes
Analyze underlying causal factors
Concept: Chain of command
An organizing concept where the command is a unbroken line of authority that links all individuals in the organization and specifies who reports to whom
Concept: Selection of Alternatives
Choose the alternative that yields the best outcome
Concept: Development of Alternative
Define feasible solutions/alternatives
Concept: Need to Achieve
Entrepreneurs are motivated to excel and pick situations in which success is unlikely
Concept: Self Confidence
Entrepreneurs must have confidence in their ability to master day-to-day business tasks
Concept: High Energy
Entrepreneurs need high energy to start their own business, It takes lot of work to enter a marketplace.
Concept: Evaluation and Feedback
Gather information and evaluate effectiveness.
Concept: Recognition of Decision Requirement
Identify the problem or opportunity
Concept: Common sources of Business ideas
In order from most to leas common: 1. In depth understanding of industry or business profession (37%) 2. Market niche spotted (36%) 3. Other (11%) 4. Brainstorming (7%) 5. Copying someone else (4%) 6. Hobby (4%)
Concept Export risk w/ entering International market
In the export strategy, the organization is domestically focused, with only a few exports. This means managers have little need to pay attention to issues of either *local responsiveness* or *global standardization*.
Define: Core Competence
Something that a organization does particularly well compared to others.
Concept: Elements of Strategic Management Process
Strategic management refers to the set of decisions and actions used to formulate and execute strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals. It begins when executives evaluate their current position with respect to mission, goals, and strategies. They then scan the organization's internal and external environments and identify strategic issues that might require change.
Concept: Advantage w/ Virtual Networks
The main advantage of virtual networks is that you can draw on expertise worldwide and also they are highly flexible and responsive to reducing overhead costs
Concept: Internal Locus of control
The most successful entrepreneurs believe that their actions determine what happens to them, demonstrating a high internal locus of control
Concept: Implementation of Alternative
Use managerial, administrative, and persuasive abilities to execute the chosen alternative
Concept: Star category
a category of corporate portfolio high in both market and growth
Concept: Question marks
a category of corporate portfolio high in growth but low in market share
Concept: Cash cow
a category of corporate portfolio high in market share but low in growth
Concept: Dogs
a category of corporate portfolio low in both growth and market share
Concept: Autonomy
a characteristic of an entrepreneur who cherishes the freedom of making their own business decisions
Define: Intelligence Team
a cross functional group of managers or employees who work together to gain a deep understanding of a specific business problem, and are concerned with its solution
Define: Classical Model of Decision Making
a decision making model that deals with clear cut problems/goals by utilizing full information about alternatives/outcomes, making the rational choice by individual for maximizing outcome.
Concept: Matrix organization structure
a organizational structure design that combines functional and divisional approaches
Concept: Programmed Decision
a type of decision making that deals with re-occurring problems by applying pre-determined rules
Concept: Non-Programmed Decision
a type of decision making that deals with: -Unique decisions -Poorly defined -Unstructured -Important conseqeunces
Define: Management By Objective
a type of operational planning where managers of various department define their goals, projects, and persons responsible.
Define: Tactical Goals
goals that are designed to help execute the major strategic plan and accomplish a specific part of the company's strategy
Define: Strategic goals
official goals, broad statements, describing the organizations future
Concept Entrepreneurial Sacrifice
the ability to preserve and stay positive
Concept: Span of management
the number of employees reporting to a supervisor With a larger span of management: -Less supervision = larger span of control -Work is stable and routine -Subordinates perform similar work -Highly trained -Rules and procedures are defined -Involves little planning with nonsupervised activities -Managers prefered choice
Concept: Delegation
the process managers use to transfer authority and responsibility down the chain
Define: Operational Goals
the results expected from the departments and work groups
Concept: Unity of Command
when each employee is held accountable to one supervisor