Kine 3400 Exam 2

Criteria to Write Objectives

An objective must lead to a single result that is specific and measurable and must include a target date. 1. Single result. 2. Specific result. 3. Measurable result. 4. Target date. 5. Realistic objective. 6. Team-set objective. 7. Team commitment to the objective.

Levels of Strategies

An organization's strategy is its plan for pursuing its mission and achieving its objectives. The three levels of strategy are corporate, business, and functional

The Continuum of Decision Structure

Problems can be classified in terms of how the decision is structured, the conditions in which decisions are made, and the decision-making model. Decisions can be categorized as programmed and nonprogrammed.

9. State the difference between an objective and "must" and "want" criteria.

"Must" criteria have to be met to achieve the objective, whereas "want" criteria are desirable but not absolutely necessary.

reflexive decision style.

"shoot from the hip" tend to make snap decisions without taking the time to get all the information they need and without considering many alternatives.

3. List the six steps in decision making.

(1) define the problem or opportunity, (2) set objectives and criteria, (3) generate alternatives, (4) select the most feasible alternative, (5) implement the decision, and (6) control the results -Following these steps will not guarantee that you make good decisions. However, using these steps increases your chances of success. -In the first step in your decision process, you define the problem you want to solve or the opportunity you want to capitalize on.

28. Describe the four functional-level operational strategies

- Operational strategies are used by every functional-level department—marketing, operations, human resources, finance, among others—to achieve corporate- and business level objectives. - The primary task of functional-level departments is to develop and implement strategies that achieve the corporate- and business-level missions and objectives.

13. Explain how quantitative and cost-benefit analyses facilitate selecting alternatives.

-Quantitative techniques use mathematical analysis to assess alternative solutions. -Cost-benefit analysis combines subjective methods and mathematical techniques to compare alternative courses of action

11. Describe the three stages in the creative process.

-The first step is to prepare by gathering ideas, opinions, and dreaming big (you can scale back later). -The second step is to "incubate" the idea, which means letting the idea develop in your mind. -The third step is to evaluate and then reevaluate the idea to see if it is a worthwhile endeavor.

Upside of group decision making

1. Better-quality decisions. 2. More information, more alternatives, and heightened creativity and innovation. 3. Better understanding of the problem and the decision. 4. Greater commitment to the decision. 5. Improved morale and motivation. 6. Good training.

22. Describe how to write objectives.

1. Start with the word to. 2. Attach an action verb - typical ones are increase, improve, enter, review. 3. Now think of a single, specific result that you want to achieve and that can be measured. 4. Choose a target date

Downside of Group decision Making

1. Wasted time and slower decision making. 2. Satisficing. 3. Domination by subgroup or individual and goal displacement. 4. Conformity and groupthink

related diversification

A process that takes place when a business expands its activities into product lines that are similar to those it currently offers.

25. Describe the four corporate-level grand strategies.

An organization's grand strategies are its corporate strategies for growth, stability, turnaround, and retrenchment, or a combination thereof.

concentration strategy

grows its existing lines of business aggressively

Creativity and Innovation Model

Brainstorming, Synectics, Nominal Grouping, Consenses Mapping, the Delphi technique aid creativity that leads to innovation

probability theory

help managers make decisions in a risky environment; used to to determine whether to expand a facility, select the most profitable use of finances; determine the amount of inventory or stock

26. Describe the three growth strategies.

Corporate growth strategies include concentration, backward and forward integration, and related and unrelated diversification

Strategic Process

Developing the Mission, Analyzing the Environment, Setting Objectives, Developing Strategies, Implementing and Controlling Strategies

Writing Objectives

How to Write One

21. Explain how goals and objectives are similar but not the same.

Goals are your target. Objectives guide your development of operational plans and help you know if you are achieving the target. Goals translate into objectives.

20. Explain why organizations analyze the company situation.

Managers use analyses of the company situation when they develop business strategies and when they determine which issues need to be addressed in the next three steps of the strategic process.

The difference between nonprogrammed and programmed decisions

Nonprogrammed decisions take longer to make than programmed decisions. Note also that decisions fall along a continuum from totally programmable to totally nonprogrammable, with numerous combinations of the two types in between

5. Identify programmed and nonprogrammed decisions and recognize certain, uncertain, and risky business conditions.

Problems can be classified in terms of how the decision is structured, the conditions in which decisions are made, and the decision-making model. Decisions can be categorized as these 2

Comparison of analysis techniques

Quantitative: objective, maximum use of math vs. Cost-benefit: subjective, minimum use of math

Describe the three business-level adaptive strategies.

The three adaptive strategies are prospecting, defending, and analyzing.

15. Explain how strategic and operational plans differ.

These differ primarily by time frame and by the management level involved.

19. Explain why organizations analyze industries and competitive situations.

To determine whether an industry is worth entering requires answers to such questions as "How large is the market? What is the growth rate? How many competitors are there?

2. Explain how management functions, decision making, and problem solving relate.

To perform the four management functions—planning, organizing, leading, and controlling—a manager must make decisions. Managers who are not proficient in these functions are part of the problem, not part of the solution.

7. Know when to use different decision models and when to make decisions as a group or as an individual.

To succeed at decision making, you need to determine the appropriate level of employee participation in the decision-making process. You need to decide if you should make the decision solo or as part of a group.

The Continuum of the Decision Making Environment

Uncertainty>Risk>Certainty

Difference between upper-level and lower-level managers

Upper-level managers typically make more nonprogrammed decisions than do lower-level managers who tend to make programmed decisions.

Describe how meeting objectives, solving problems, and making decisions are connected.

When managers do not meet objectives, problems result. A problem exists when company or team objectives are not being met.

unrelated diversification

a form of diversification when the business adds new or unrelated product lines and penetrates new markets.

creativity

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

queuing theory

addresses waiting time; using too many employees to wait on customers or fans is an inefficient use of resources and is costly

innovation

alters what is established by introducing something new. Innovation is the implementation of new ideas.

reflective decision style,

are slow to decide, gathering considerable information and analyzing numerous alternatives.

turnaround strategy

attempt to reverse a declining business as quickly as possible.

stability strategy

attempts to hold and maintain their present size or to grow slowly.

growth strategy

attempts to increase their size through increased sales.

Prospect

calls for aggressively offering new products or entering new markets; corresponds to the growth grand strategy and is appropriate for fast-changing environments with high growth potential.

consistent decision style

do not rush and they do not waste time. They know when they need more information and when it is time to stop analyzing and get moving; boast the best decision-making record

break-even analysis

involves forecasting the volume of sales and the cost of production; occurs at the level with where no profit or loss results

uncertain environment

lack of information or knowledge makes the outcomes unpredictable so that probabilities cannot be assigned easily.

Strategic plans

management develops a mission and long-term objectives and determines in advance how they will be accomplished; 5 or more years; developed by top level managers

Operational plans

management sets short-term objectives and determines in advance how they will be accomplished; 1 year or less; developed by top or middle managers

organizers

managers decide what to delegate and how to coordinate the department's resources, including whom to hire and how to train and evaluate them.

leaders

managers must decide how best to influence employees.

controllers

mangers assess whether - and how well - objectives are being met and how to take corrective action.

planners

mangers decide on the objectives they want to pursue and when, where, and how the objectives will be met.

combination strategy

pursuing growth, stability, and turnaround and retrenchment across its different lines of business.

Programmed decision

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

Nonprogrammed decisions

significant and nonrecurring and nonroutine situations in which the decision makers should use the decision-making model. To qualify as significant, a decision must be expensive or have major consequences

goals

state general targets to be accomplished.

objectives

state what is to be accomplished in specific and measurable terms by a certain target date.

retrenchment strategy

the divestiture or liquidation of assets.

forward integration

the line of business is closer to the final customer.

backward integration

the line of business is farther away from the final customer.

Analyze

the middle of the continuum between prospecting and defending. Business segments that analyze move into new markets cautiously and deliberately, or they seek new opportunities to offer a core product group;resembles the combination grand strategy and is appropriate in moderately changing environments with moderate growth potential.

corporate strategies.

the organization's plan for managing multiple lines of businesses

functional strategy

the organization's plan for managing one area of the business.

business strategy

the organization's plan for managing one line of business.

Management by objectives (MBO)

the process by which managers and their teams jointly set objectives, periodically evaluate performance, and reward according to the results.

Decision making

the process of selecting a course of action that will solve a problem.

Problem Solving

the process of taking corrective action to meet objectives.

risky environment

they do not know each outcome in advance but can assign probabilities of occurrence to each one.

certain environment

they know the outcome of each alternative in advance.

Defend

they stay with their current product line and markets and focus on maintaining and increasing market share; resembles the stabilizing grand strategy and is appropriate in a slow-changing environment with low growth potential

capital budgeting

used to analyze alternative investments in major long term assets

Strengths, Weaknesses, Opportunities, and Threats Analysis

used to assess strengths and weaknesses in an organization's internal environment and opportunities and threats in its external environment.

classical rational model

uses "optimizing." It selects the best possible alternative.

bounded rational model

uses "satisficing." It selects the first alternative that meets certain specified minimal criteria.