management 305 exam 1

top 5 best business decisions (Forbes)

-5.= GREATEST DECISION-GENERAL ELECTRIC= -Jack Welch's decision to fully fund a first-in-class training center at Crotonville, led to the development of hundreds of great leaders who practiced the "GE WAY" -4.= GREATEST DECISION- SAMSUNG= -their decision to launch a sabbatical program that sends top talent all around the world continues to be the secret behind Samsung's success as a global brand -3.= GREATEST DECISION- WAL-MART= -Sam Walton's decision to hold Saturday morning, all-employee meetings led to a culture of rapid information and decision making, which in turn created one of the biggest companies in the world -2.= GREATEST DECISION- APPLE= -the board's decision to bring back Steve Jobs, after firing him a decade earlier, led to amazing product innovation and to the creation of one of the most valuable companies in the world -1.= GREATEST DECISION- FORD= -Henry Ford's decision to double the wages of his workers enabled him to attract the talent he needed, and helped insure a class of worker who could afford the very products they were building

decision trees

-A DIAGRAM OF ALTERNATIVES= -gives a visual picture of alternatives, which makes it easier for some people to analyze them

differentiation

-A DIFFERENTIATION STRATEGY CAN TAKE MANY FORMS= -prestige or brand image -technology -innovation -features -customer service -dealer network

differentiation requires.....

-A LEVEL OF COST PARITY RELATIVE TO COMPETITORS -INTEGRATION OF MULTIPLE POINTS ALONG THE VALUE CHAIN= -superior material handling operations to minimize damage -accurate and responsive order processing -personal relationships with key customers -rapid response to customer service requests -DIFFERENTIATION ALONG SEVERAL DIFFERENT DIMENSIONS AT ONCE

implementing strategies- contingency plans

-ALTERNATIVE PLANS TO BE IMPLEMENTED IF UNCONTROLLABLE EVENTS OCCUR= -what might go wrong? -how can I prevent it from happening? -if it does occur, how can I minimize its effect?

implementing strategies

-AS STRATEGIES ARE BEING IMPLEMENTED, THEY MUST BE CONTROLLED TO MONITOR PROGRESS AND TAKE CORRECTIVE ACTION WHEN NECESSARY= -overcome barriers -stay within the budget

three levels of culture

-BEHAVIOR= -includes the observable things that people do and say or the actions employees take -VALUES AND BELIEFS= -represent the way people believe they ought to behave -ASSUMPTIONS= -values and beliefs that are so deeply ingrained that they are considered unquestionable true and taken for granted

quantitative techniques

-BREAK-EVEN ANALYSIS= -if you buy a carpet cleaner for $300 and rent it for $25 a day, how long until you have broken even on your investment? -CAPITAL BUDGETING= -payback approach, average rate of return, discounted cash flow, etc. -LINEAR PROGRAMMING- -example- FedEx using the best sequence of deliveries to minimize costs -QUEUING THEORY= -focuses on waiting time (employees waiting to service customers) -PROBABILITY THEORY= -takes risk/likelihood of event into consideration

cultural issues doing business in Hong Kong (GIFTS)

-GIFT GIVING IS AN INTRICATE AND IMPORTANT CUSTOM IN HONG KONG. THE BEST-INTENTIONED BUSINESSPERSON CAN OFFEND COUNTERPARTS BY GIVING= -clocks (they connotes death) -books (they represent a "curse to lose" for gamblers_ -blankets (they stifle the recipient's prosperity) -unwrapped gifts (this is rude) -gifts wrapped in blue (the color or mourning) -green hats (they suggest that you are a cuckold or your sister is a prostitute)

the global environment

-GLOBAL VILLAGE= -refers to companies conducting business worldwide without boundaries -INTERNATIONAL COMPANY= -an organization based primarily in one country but transacts business in other countries through imports/exports -MULTINATIONAL CORPORATION (MNC)= -an organization that has ownership in operations in two or more countries -microsoft, samsung, google, frito-lay, pepsi-cola

guides to ethical behavior

-GOLDEN RULE= -"do unto others as you want them to do unto you" or "don't do anything to anyone that you would not want someone to do to you" -FOUR-WAY TEST= -(1.) is it the truth? (2.) is it fair to all concerned? (3.) will it build goodwill and better friendship? (4.) will it be beneficial to all concerned? -STAKEHOLDERS' APPROACH TO ETHICS= -try to create a win-win situation for all relevant stakeholders so that everyone benefits from the decision -DISCERNMENT AND ADVICE= -before you act, use an ethical guide to discern if the behavior is ethical or not

corporate level strategies

-GRAND STRATEGY= -an overall corporate strategy for growth, stability, or turnaround and retrenchment, or for some combination -GROWTH STRATEGY= -concentration, integration, diversification, mergers and acquisitions -ADAPTIVE STRATEGIES= -prospecting, defending, and analyzing -COMPETITIVE STRATEGIES= -differentiation, cost leadership, focus

management resources

-HUMAN= -people -FINANCIAL= -budgets -PHYSICAL= -products -services -equipment -INFORMATIONAL= -knowledge which flows freely in organization

four components of the systems process

-INPUTS= -(FedEx: packages to be delivered) -TRANSFORMATION= -(FedEx: packages go to hub to be sorted) -OUTPUTS= -(FedEx: delivery of packages) -FEEDBACK= -(FedEx: computerized tracking of packages)

management roles

-INTERPERSONAL ROLES= -figurehead -leader -liaison -INFORMATIONAL ROLES= -monitor -disseminator -spokesperson -DECISIONAL ROLES= -entrepreneur -disturbance handler -resource allocator -negotiator

additional theories

-MANAGEMENT SCIENCE= -focus on the use of mathematics to aid in problem solving and decision making -SYSTEMS THEORY= -focus on viewing the organization as a whole and as the interrelationship of its parts -SOCIOTECHNICAL THEORY= -focus on integrating people and technology -CONTINGENCY THEORY= -focus on determining the best management approach for a given situation -KNOWLEDGE MANAGEMENT= -involves everyone in an organization in sharing knowledge and applying it to continuously improve products and processes

business functional areas

-MARKETING= sell the products and services -OPERATIONS/PRODUCTION= make the product or perform the service -FINANCE/ACCOUNTING= maintain financial records -HUMAN RESOURCES/PERSONNEL MANAGEMENT= hire and compensate employees

setting objectives

-OBJECTIVES= -statements of what is to be accomplished that is expressed in singular, specific, and measurable terms with a target date

nominal group technique

-ONE MEMBER OF THE GROUP DESCRIBES THE PROBLEM OR OPPORTUNITY= -members are given a certain amount of time to come up with ideas and write them down on a piece of paper -members then present the ideas in a round-robin fashion

resources

-ORGANIZATIONAL RESOURCES include HUMAN, FINANCIAL, PHYSICAL, and INFORMATIONAL -human resources are responsible for achieving the organization's mission and objectives through the other three resources

factors that influence behavior to be ethical or unethical

-PERSONALITY TRAITS AND ATTITUDES= -some people have a higher level of ethics than others, as integrity is considered a personality trait -THE SITUATION= -in certain situations, it can be tempting to be unethical, e.g., negotiation -MORAL DEVELOPMENT= -refers to distinguishing right from wrong and choosing to do the right thing

implementing strategies- standing plans

-POLICIES= -general guidelines to be followed when making decisions -PROCEDURE= -a sequence of actions to be followed in order to achieve an objective -RULES= -statements of exactly what should or should not be done

Theory Y

-employees will do what is good for the organization when committed -managers must create setting to encourage commitment to goals and provide opportunities for initiative

religious diversity and management

-employers are required by law to make reasonable accommodations for employees' religious beliefs, without undue hardship on the employer -employers need to make it clear when offering jobs what the specific work hours will be and ask if the employee will commit to working those hours

pitfalls of focus

-erosion of cost advantages within the narrow segment -highly focused products and services are still subject to competition from new entrants & from imitation -focusers can become too focused to satisfy buyer needs

business ethics

-ethics are the standards of right and wrong that influence behavior -right behavior is considered ethical, and wrong behavior is considered unethical -ethics go beyond legal requirements to do the right thing even when we don't have to

The Hawthorne studies

-found that productivity increased regardless of whether illumination was raised or lowered -FACTORS INFLUENCING BEHAVIOR= -attention from researchers -manager's leadership approach -work group norms -the "Hawthorne Effect"= -observer effect, a type of reactivity in which individuals modify an aspect of their behavior in response to their awareness of being observed

developing the mission

-foundation for the other four steps in the strategic planning process -often based on or also creates a vision that defines where the company is headed in inventing its future and why -RECALL COCA-COLA'S MISSION= -to refresh the world.... -to inspire moments of optimism and happiness.... -to create value and make a difference

managing different forms of global business

-global sourcing -licensing -franchising -contract manufacturing -strategic alliance -joint venture -direct investment

learning organization

-has a culture that values sharing knowledge so as to adapt to the changing environment and continuously improve

learning the ORGANIZATIONAL CULTURE through ARTIFACTS

-heroes -stories -slogans -symbols -rituals -ceremonies

global sourcing

-hiring others outside the organization to perform work worldwide

the internal environment

-includes the factors that affect its performance from within its boundaries -internal environmental FACTORS are within the organization's control which include= -management and culture -mission -resources -system process -structure

bargaining power of consumers- HIGH

-individually, LOW bargaining power -as a whole, HIGH bargaining power= -target must accurately predict and react to changing market trends

three most important QUALITIES for successful managers identified in a recent Gallup survey

-integrity= honesty -industriousness= hard working -the ability to get along with people

Bic Mac indec

-interactive currency-comparison tool to show the differences in purchasing power across countries -PRODUCED BY THE ECONOMIST MAGAZINE= -cost of a Big Mac in U.S. in January 2015 was $4.79 -cost of a Big Mac in China in the same time period was $2.77 at market exchange rates

inventory efficiency

-inventory turnover ratio -bargaining power over suppliers

sustainability

-is meeting the needs of the present world without compromising the ability of future generations to meet their own needs

top level mangement

-is responsible for the organization's performance. They develop the visionary mission, strategies, and plans to achieve them.

organizing

-is the process of delegating and coordinating tasks and allocating resources to achieve objectives.

leading

-is the process of influencing employees to work toward achieving objectives. Managers must communicate the objectives to employees and motivate them to achieve those objectives by developing positive relationships.

controlling

-is the process of monitoring and measuring progress and taking corrective action when needed to ensure that objectives are achieved.

planning

-is the process of setting objectives and determining in advance exactly how the objectives will be met.

total quality management (TQM)

-is the process that involves everyone in an organization focusing on the customer to continually improve product value

scientific management

-is the systematic study of relationships between people and tasks for the purpose of redesigning the work process to increase efficiency -the amount of and effort each employee expends to produce a unit of output can be reduced by increasing specialization and the division of labor

systems process

-is the technology used to transform inputs into outputs to make and deliver products and services.

reflects other forms of global business and their associated cost and risk factors

-lowest cost and risk= highest cost and risk -importing/exporting, licensing and franchising, contracting, strategic alliance and joint ventures, direct investment -characteristics of international business= characteristics of multinational corporations

bargaining power of suppliers- LOW

-market dominated by a few large companies that hold high degree of leverage

cultural issues doing business in Hong Kong (GESTURES)

-members of the same sex may hold hands to signify friendship, but members of the opposite sex may not -although women may cross their legs, men should keep their feet on the floor. place your hands in your lap while sitting -the Chinese may communicate in closer proximity than is common in the United States -do not pat people on the shoulder or initiate any physical contact. it is not appreciated -"come here" is signified by turning the palm face down and waving the fingers

global environment

-multiple sets of factors for various countries

joint venture

-two or more firms sharing ownership of a new company -SAB Miller and Molson Coors Brewing created a venture called MillerCoors LLC to better compete with Anheuser-Busch InBev.

pitfalls of differentiation

-uniqueness that is not valuable -too much differentiation -too high a price premium -differentiation that is easily imitated -dilution of brand identification through product line extensions -perceptions of differentiation may vary between buyers and sellers

if you invest $500 in a carpet cleaner and can rent it for $25 a day, when will you break even? a. 20 days b. 25 days c. 10 days d. 15 days

a. 20 days

Who led the Hawthorn Studies at the Western Electric plant? a. Elton Mayo b. Mary Parker Follett c. Douglas Mcgregor d. Elton John

a. Elton Mayo

which generation works long hours to establish self-worth and identity? a. baby boomers b. traditionalists c. gen x d. millenials

a. baby boomers

Ted had been called a "disturbance handler" which type of management role does this describe? a. decisional b. informational c. interpersonal d. none of these

a. decisional

a multinational corporation a. has ownership in operations in 2 or more countries b. conducts business in one country c. had no real single national headquarters d. none of these

a. has ownership in operations in 2 or more countries

Clint is a real slacker at work, only doing what is minimally required this describes a. theory X b. theory Y c. theory Z d. theory A

a. theory X

Chapter 4

creative problem solving and decision making

Kenneth Lay went to school (undergrad/grad) where? a. KU b. Penn State c. Harvard d. MU

d. MU

manager skills include: a. technical skills b. interpersonal skills c. decision making skills d. all of these

d. all of these

objectives should be a. specific b. measurable c. have a target data d. all of these

d. all of these

which factors influence ethical or unethical behavior? a. personality b. moral development c. the situation d. all of these

d. all of these

which of the following is a type of diversity? a. weight b. attractiveness c. personality d. all of these

d. all of these

JC Penney is an example of which quadrant in the BCG matrix? a. star b. question mark c. cash cow d. dog

d. dog

Walgreens has decided to stop selling cigarettes this describes which level of CSR? a. benevolent CSR b. stakeholer CSR c. legal CSR d. ethical CSR

d. ethical CSR

Cynthia is an exceptional supervisor of the cleaning crew which level of management is this? a. middle manager b. executive c. CEO d. first line

d. first line

this strategy attempts to hold and maintain its present size or grow slowly a. turnaround b. retrenchment c. growth d. stability

d. stability

test review

sample questions

Chapter 5

strategic and operational planning

Chapter 2

the environment: culture, ethics, and social responsibility

true or false: a SWOT analysis reflects a snapshot in time

true

Henry Fayol

-(1841-1925) -french engineer- sometimes referred to as the FATHER OF MODERN MANAGEMENT -Fayol made a clear distinction between OPERATING and MANAGERIAL activieites -Fayol identified 5 major FUNCTIONS of management= -planning, coordinating, organizing, controlling, and commanding

F.W. Taylor

-(1856-1915) -father of scientific managemet

Mary Parker Follet

-(1868-1933) -management must consider the human side -employees should be involved in job analysis -person with the knowledge should be in control of the work process regardless of position -cross-functioning teams used to accomplish projects

Elton Mayo

-(1880-1949_) -the Hawthorne studies -Hawthorne Works of the Western Electric Company; 1924-1932 -initiates as an attempt to investigate how characteristics of the work setting affect employee fatigue and performance (i.e., lighting)

Abraham Maslow

-(1908-1970) -HIERARCHY OF NEEDS -SELF-FULFILLMENT NEEDS= -self-actualization -PSYCHOLOGICAL NEEDS= -esteem needs -belongingness and love needs -BASIC NEEDS= -safety needs -physiological needs

levels of corporate social responsibility (CSR)

-1. LEGAL CSR= -focus on maximizing profits while obeying the law -Philip Morris sells cigarettes -2. ETHICAL CSR= -focus on profitability and going beyond the law to do what is right, just, and fair -CVS stops selling cigarettes in their stores -3. BENEVOLENT CSR= -focus on profitability and helping society through philanthropy -setting up a foundation to help people stop smoking

company situation analysis steps

-1.= ASSESSMENT OF THE PRESENT STRATEGY BASED ON PERFORMANCE -2.= SWOT ANALYSIS -3.= ASSESSMENT OF COMPETITIVE STRENGTH AND IDENTIFICATION OF COMPETITIVE ADVANTAGE -4.= CONCLUSIONS CONCERNING COMPETITIVE POSTION -5.= DETERMINATION OF THE ISSUES AND PROBLEMS THAT NEED TO BE ADDRESSED THROUGH STRATEGIC PLANNING PROCESS

the decision-making model

-1.= CLASSIFY AND DEFINE THE PROBLEM OR OPPORTUNITY -2.= SET OBJECTIVES AND CRITERIA -3.= GENERATE CREATIVE AND INNOVATIVE ALTERNATIVES -4.= ANALYZE ALTERNATIVES AND SELECT THE MOST FEASIBLE -5.= PLAN AND IMPLEMENT THE DECISION -6.= CONTROL THE DECISION

a focus strategy has two variants

-1.= COST FOCUS= -creates a cost advantage in its target segment -exploits differences in cost behavior -2.= DIFFERENTIATION FOCUS -differentiates itself in its target market -exploits the special needs of buyers

porter's five forces analysis

-1.= THREAT OF NEW ENTRANTS -2.= THREAT OF SUBSTITUTES -3.= BARGAINING POWER OF CONSUMERS -4.= BARGAINING POWER OF SUPPLIERS -5.= INDUSTRY RIVALRY

5 steps strategic planning process

-1.= developing the mission -2.= analyzing the environment -3.= setting objectives -4.= developing strategies -5.= implementing and controlling strategies

the two primary principles of TQM

-1.= focusing on delivering customer value and... -2.= continually improving the system and its processes

five key elements of a learning organization

-1.= inspiring and motivating people with a mission or purpose -2.= empowering employees at all levels -3.= accumulating and sharing internal knowledge -4.= gathering and integrating external information -5.= challenging the status quo and enabling creativity

four principles of scientific management

-1.= study the way employees perform their tasks, gather informal job knowledge that employees possess; and experiment with ways of improving the way tasks are performed -2.= codify the new methods of performing tasks into written rules and standard operating procedures -3.= carefully select employees so that they possess skills and abilities that match the needs of the task, and train them to perform the task according to the established rules and procedures -4.= establish an acceptable level of performance for a task, and then develop a pay system that provides a reward for performance above the acceptable level

comparing theories

-CLASSICAL= attempts to develop the best way to manage in all organizations by focusing on the jobs and structure of the firm -BEHAVIORAL= attempts to develop a single best way to manage in all organizations by focusing on people and making them productive -MANAGEMENT SCIENCE= recommends using math (computers) to aid in problem solving and decision making -SYSTEMS THEORY= manages by focusing on the organization as a whole and the interrelationship of its departments rather than on individual parts -SOCIOTECHNICAL THEORY= recommends focusing on the integration of people and technology -CONTINGENCY THEORY= recommends using the theory of the combination of theories that meets the given situation

growth strategies

-COMPANY MAKES AGGRESSIVE ATTEMPTS TO INCREASE ITS SIZE THROUGH INCREASED SALES -MERGER= -occurs when two companies form one corporation -ACQUISITION= -occurs when one business buys all or part of another business

analyzing the environment

-COMPANY SITUATION ANALYSIS= -an analysis of those features in a company's environment that most directly affect its options and opportunities

competitive advantage

-COMPETITIVE ADVANTAGE= -specifies how an organization offers unique customer value, i.e., why would a person buy our products or services rather than that of our competitors? -CORE COMPETENCY= -starbucks= customer experience and being everywhere -BENCHMARKING= -the process of comparing an organization's products and services and processes with those of other companies

overall low-cost leadership

-COST LEADERSHIP INVOLVES= -aggressive construction of efficient scale facilities -vigorous pursuit of cost reductions from experience -tight cost & overhead control -avoidance of marginal customer accounts -cost minimization in all activities in the firm's value chain, such as R&D, service, sales force, & advertising

additional techniques

-COST-BENEFIT ANALYSIS= -example- what is the cost of tuition vs. benefit of a degree? can both be subjective as well as quantitative -PROS AND CONS -INTUITION= -based upon rational judgment

reflexive style

-DECISION MAKE LIKES TO MAKE QUICK DECISIONS WITHOUT TAKING THE TIME TO GET THE INFORMATION THAT MAY BE NEEDED WITHOUT CONSIDERING ALTERNATIVES= -decision makers are decisive; they do not procrastinate -making quick decisions can lead to waste and duplication

reflective style

-DECISION MAKER LIKES TO TAKE PLENTY OF TIME TO MAKE DECISIONS, GATHERING CONSIDERABLE INFORMATION AND ANALYZING SEVERAL ALTERNATIVES= -reflective type does not make hasty decisions -may procrastinate, lose opportunities, and waste valuable time and other resources

consistent style

-DECISION MAKERS TEND TO MAKE DECISIONS WITHOUT EITHER RUSHING OR WASTING TIME. THEY KNOW WHEN THEY HAVE ENOUGH INFORMATION AND ALTERNATIVES TO MAKE A SOUND DECISION= -consistent decision makers tend to have the best record for making good decisions

competitive strategies

-DIFFERENTIATION= -not focused on price; products/ services are unique and values for which customers will pay a premium -COST LEADERSHIP= -low cost relative to peers -FOCUS= -narrow products lines; differentiation or low cost strategy

disability and ability diversity and management

-DISABILITY= -a mental or physical impairment that substantially limits one or more major life activities -to give equal opportunities to people with disabilities, instead of looking for disabilities, look for abilities

effective

-DOING THE RIGHT THING in order to attain an objective; a manger's effectiveness reflects the degree to which he or she achieves objects -example= making sure customers are satisfied before ending the call (which will increase customer satisfaction scores and reduce future calls.)

efficient

-DOING THINGS RIGHT so as to maximize the utilization of resources -example= setting time limits on customer calls (i.e., get off the call as fast as you can to answer the next call)

trade barriers

-EMBARGO= -total ban on the importing of a product from one or more countries -No Cuban cigars! -QUOTA= -a limit on the number or volume of a product that can be imported or exported during a set period -SUBSIDIES= -government grants, loans, and tax breaks given to domestic companies -TARIFF= -a direct tax on imports to make them more expensive

managing foreign trade

-ETHNOCENTRISM= -regarding one's own ethnic group or culture as superior to others -DUMPING= -selling products in one country at a high profit and selling in another country at a loss with the intention of driving out competition -PROTECTIONISM= -trade barriers to protect domestic companies and their workers from foreign competition

international assignments

-EXPATRIATES= -individuals who live and work outside their native country -Why is it important to understand the differences between individualistic and collectivist cultures? -Why is it important to understand the assertiveness of other countries?

SWOT analysis

-FIRM'S STRATEGY MUST= -build on its strengths -remedy the weaknesses or work around them -take advantage of the opportunities presented by the environment -protect the firm from threats

focus

-FOCUS STRATEGY= -is based on the choice of a narrow competitive scope within an industry -a firm selects a segment or group of segments (or niche) and tailor its strategy to serve them -a firm achieves competitive advantages by dedicating itself to these segments exclusively

three levels of personal moral development

-PRE-CONVENTIONAL= -self interests motivates behavior; a person acts to meet his or her own needs or gain rewards -follows rules to avoid punishmnet -leaders at this level are autocratic toward others -"I lie to customers to sell more products and get bigger commission checks" -CONVENTIONAL= -behavior is motivated by the desire to live up to other's expectations -copy behavior of leaders, peer pressure enforces group norms -lower-level managers at this level tend to use leadership style of higher-level managers -"I lie to customers because the other sales reps do it, too." -POST-CONVENTIONAL= -behavior is motivated by right and wrong regardless of expectations of group leaders -balance between interest of self and others -will follow principles even if its illegal -leaders at this level tend to be visionary and committed to serving others while empowering followers to also attain this level or morality -"I don't lie to customers because it's wrong to do so"

decision-making structure

-PROGRAMMED DECISIONS= -decisions that arise in recurring or routine situations, for which the decision maker should use decision rules or organizational policies and procedures -NON-PROGRAMMED DECISIONS= -significant decisions that arise in nonrecurring and non-routine situations, for which the decision maker should use the decision-making model

adaptive strategies

-PROSPECTING= -aggressively offer new products and services and/or enter new markets -example= groupon -DEFENDING= -stay with present product line and markets -example= coca-cola -ANALYZING= -midrange approach between prospecting and defending -example= pizza hut

race and ethnicity diversity and management

-RACE= -a biological characteristic, such as skin color, that creates diverse group identities -ETHNICITY= -a social trait, such as cultural background, customs, or allegiances, again creating diverse groups

grand strategies

-STABILITY= -maintain status quo and balance growth and profits -ex= WD-40 -TURNAROUND= -reverse a declining business as soon as possible -RETRENCHMENT= -liquidation of assets -most turnarounds include retrenchment

business level strategies- BCG portfolio matrix

-STARS= -high market shares in a fast-growing industry. the hope is that stars become the next cash cows -QUESTION MARKS= -also known as problem child) are growing rapidly and this consume large amounts of cash, but because hey have low market shares they DO NOT GENERATE MUCH CASH -CASH COWS= -high market shares in a slow-growing industry. these units typically generate cash in excess of the amount of cash needed to maintain the business. they are regarded as staid and boring, in a "mature" market -DOGS= -low market share in a mature, slow-growing industry. these units typically "break even," generating barely enough cash to maintain the business's market share

delphi technique

-TEAM MEMBERS DO NOT MEET IN PERSON= -use of questionnaires -leader compiles responses and sends summary to team members with follow-up questions

management by objectives (MBO)

-THE PROCESS IN WHICH MANAGERS AND THEIR EMPLOYEES JOINTLY SET OBJECTIVES FOR EMPLOYEES, PERIODICALLY EVALUATE PERFORMANCE, AND REWARD ACCORDING TO THE RESULTS= -1.= set individual objectives and plans -2.= give feedback and performance -3.= reward according to performance

other types of diversity and management

-THERE ARE MANY KINDS OF OTHER WAYS THAT PEOPLE ARE DIVERSE IN THE WORKPLACE. BELOW ARE JUST A FEW= -weight -personality -attractiveness -family

trade agreements

-THERE ARE SIX MAJOR TRADE AGREEMENTS AROUND THE GLOBE= -North American Free Trade Agreement (NAFTA) -Central American Free Trade Agreement (CAFTA-DR) -Union of South American Nations (UNASUR) -European Union (EU) -Association of Southeast Asian Nations (ASEAN) -Asia-Pacific Economic Cooperation (APEC)

threat of new entrants-LOW

-TO MANY BARRIERS EXIST WITH THE EXISTING HIGH LEVEL OF COMPETITION= -reputation -high volume of capital -loyal customer base -product variety -suppliers

managing ethics

-TOP MANAGEMENT SUPPORT AND EXAMPLE= -many large corporations have ethics officers responsible for developing their ethics codes and developing and conducting this training -WHISTLE-BLOWING= -occurs when employees expose what they believe to be unethical behavior by their fellow employees -THE FOREIGN CORRUPT PRACTICES ACT (FCPA)= -bars U.S.- based or U.S.- listed companies from bribing foreign officials in exchange for business and requires them to keep accurate books and records

the three levels of management

-TOP MANAGERS= develop and define the organization's purpose, objectives, and strategies -MIDDLE MANAGERS= responsible for implementing top management's strategy by developing short-term operating plans. -FIRST-LINE MANAGERS= responsible for implementing middle managers' operational plans -team leaders= often project/program managers; not usually a permanent management position

skills needed at different management levels

-TOP= decision-making and interpersonal skills -MIDDLE= balance of all three -FIRST-LINE= technical and interpersonal skills

functions performed at different management levels

-TOP= planning and organizing -MIDDLE= balance of all four -FIRST LINE= leading and controlling

implementing strategies- single use plans

-USED FOR HANDLING NON-REPETITIVE SITUATIONS -PROGRAMS= -set of activities designed to accomplish an objective over a specified period of time -BUDGETS= -funds to operate something over a fixed period

strategy

-a plan for pursuing a mission and achieving objectives

improving competitive position vis-a-vis the five forces (AN OVERALL DIFFERENTIATION STRATEGY)

-created higher entry barriers due to customer loyalty -provides higher margins that enable the firm to deal with supplier power -reduces buyer power because buyers lack suitable alternatives -establishes customer loyalty and hence less threat from substitues

external environmental factors

-customers -competition -suppliers -labor force -shareholders -society -technology -the economy -governments

leverage and trends

-debt to equity ratio (leverage) -wal-mart has been trending downward -target is peaking -target may not be generating enough cash to meet debt obligations

what is a manger's responsibility?

-achieving organizational objectives through EFFICIENT and EFFECTIVE utilization of resources

green company

-acts in a way that minimizes damage to the environment

types of workforce diversity

-age and generation -gender and sexual orientation (LGBT) -race and ethnicity -disability and ability -religion -other

problems with the classical model

-all necessary information for optimal decision is not always known -UNABLE TO USE SOME INFORMATION= -cognitive abilities -information overload

global sourcing

-also called outsourcing and/or offshoring -is a form of global business which is considered to be the lowest form of cost and risk

gender and sexual orientation (LGBT) diversity and management

-although research supports the equality of sexes, research also reports that it is more difficult for women to advance -GLASS CEILING= -the invisible barrier that prevents WOMEN AND MINORITIES from advancing to the top jobs in organizations

strategic alliance

-an agreement to share resources that does not necessarily involve creating a new company

franchising

-an entrepreneurial venture in which a franchisor licenses a business to the franchisee for a fee and royalties

discrimination

-an illegal practice that gives unfair treatment to diversity groups in employment decisions

efficiency and effectiveness.....

-are both important, there is a balance to achieve goals -for instance, a call center would not wish its workers to stay on each call 30-45 minutes

Theory X

-average employee is lazy, dislikes work, and will try to do as little as possible -manager's task is to supervise closely and control employees through reward and punishment

group decision-making techniques that foster creativity and innovation

-brainstorming -synectics -nominal grouping -consensus mapping -the delphi technique

managing diversity through inclusion

-companies need active policies and practices to promote a diversity climate of inclusion that is part of the ORGANIZATIONAL CULTURE -DIVERSITY TRAINING= -teaches people how to get along better with diverse workers through inclusion -MENTORING= -a process that enhances management skills, encourages diversity, and improves productivity

examples: three generic strategies

-companies pursing an OVERALL COST LEADERSHIP strategy= -wal-mart -mcdonald's -companies pursuing a DIFFERENTIATION STRATEGY= -apple -target -companies pursuing a FOCUS STRATEGY= -ikea -costco

target's pros & cons

-competes on price -strong net presence -has financial difficulties -growth is down but the leadership prides itself on having a quality shopping experience

organizational culture

-consists of the values, beliefs, and assumptions about appropriate behavior that members of an organization share

contract manufacturing

-contracting a foreign firm to manufacture products a company will sell as its own -similar to global sourcing, but it tends to be on a large scale

improving competitive position vis-a-vis the five forces (AN OVERALL FOCUS STRATEGY)

-created higher entry barriers due to cost leadership or differentiation or both -can provide higher margins that enable the firm to deal with supplier power -reduces buyer power because the firm provides specialized products or services -focused niches are less vulnerable to substitutes

the nature of differentiation: what is differentiation?

-definition "providing something unique that is valuable to the buyer beyond simply offering a low price -the key is to create value for the customer -honda vs. yugo

threat of substitutes- HIGH

-nonexistent switching costs -competition primarily on price

mission

-organizations purpose or reason for being -example= walmart's mission is to help people save money so they can live netter

four management functions

-planning -organizing -leading -controlling

improving competitive position vis-a-vis the five forces (AN OVERALL LOW-COST POSITION)

-protects a firm against rivalry from competitors -protects the firm against powerful buyers -provides more flexibility to cope with demands from powerful suppliers who want to increase input costs -provides substantial entry barriers due to economies of scale and cost advantages -puts the firm in a favorable position with respect to substitute products

structure

-refers to the way in which an organization groups its resources to accomplish its mission

decision-making styles

-reflexive style -reflective style -consistent style

the triple bottom line

-requires mangers to simultaneously address widely diverging but interconnected concern for the: -natural environment -social welfare -economic prosperity of the firm

industry rivalry- HIGH

-slow industry growth and large volume of competitors -homogenous products require competition on price

strategic issues

-supply chain/ demand forecasting -e-commerce -high competition -lack of growth internationally

management skills

-technical skills -interpersonal skills -decision-making skills

decision-making skills

-the ability to conceptualize situations and select alternatives to solve problems and take advantage of opportunities (CONCERNED WITH IDEAS/CONCEPTS)

interpersonal skills

-the ability to understand, communicate, and work well with individuals and groups through developing effective relationships (CONCERNED WITH PEOPLE)

technical skills

-the ability to use methods and techniques to perform a task (CONCERNED WITH THINGS)

management

-the attainment of organizational goals in an effective and efficient manner through planning, organizing, staffing, directing/leading, and controlling organizational resources

direct investment

-the building or buying of operating facilities in a foreign country -also called wholly owned affiliates or subsidiaries

social responsibility

-the conscious effort to operate in a manner that creates a win-win situation for all stakeholders -major corporations have to be socially accountable because stakeholders, including customers, the media, and the public will increasingly demand it

standard of living

-the level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class in a certain geographic area

stereotyping

-the mistaken generalization of the perceived characteristics of a diversity group to an individual

external environment

-the organization's external environment includes the factors outside its boundaries that affect its performance

inclusion

-the practice of ensuring that every employee feels they belong as a values member of the organization

licensing

-the process of a licensor agreeing to licensee the right to make its products or services or use its intellectual property in exchange for a royalty

strategic planning

-the process of developing a mission and LONG RANGE OBJECTIVES and determining in advance how they will be accomplished

operational planning

-the process of setting SHORT RANGE OBJECTIVES and determining in advance how they will be accomplished

diversity

-the variety of people with different group identities within the same workplace

Douglas McGregor

-theory X -theory Y

pitfalls of cost leadership

-too much focus on one or a few value chain activities -increase in the cost of the inputs on which the advantage is based -the strategy is imitated too easily -a lack of parity on differentiation -reduced flexibility -obsolescence of the basis of cost advantage

the combined new company from sprint and nextel occurred through a. merger b. acquisition c. diversification d. integration

b. acquisition

inclusion relates to a. being invited to the dance party b. being asked to dance at the party c. not being invited to the dance party d. not being asked to dance at the party

b. being asked to dance at the party

which mission is to "refresh the world"? a. pepsi b. coca cola c. the jayhawk cafe d. brothers

b. coca cola

Cheryl cheats on exams because she thinks everyone else does this describes a. pre-conventional b. conventional c. post-conventional d. acceptable

b. conventional

what describes an organization's values, beliefs and assumptions? a. mission b. culture c. vision d. structure

b. culture

management resources do NOT include: a. informational b. international c. financial d. human

b. international

which is NOT one of he 4 management functions? a. leading b. negotiating c. controlling d. organizing

b. negotiating

recording toner every time the copier gets low is which type of decision? a. non-programmed b. programmed c. reflexive d. none of these

b. programmed

this strategy is used for high potential growth rate a. defending b. prospecting c. integrate d. none of these

b. prospecting

Jeff likes to make decisions by "shooting from the hip" this describes a. reflective style b. reflexive style c. consistent style d. none of these

b. reflexive style

this strategy attempt to reverse a negative trend and cut back a. stability b. turnaround c. growth d. combination

b. turnaround

who is credited for scientific management? a. Frank Gillbreth b. Donald Trump c. Frederick Taylor d. Abraham Maslow

c. Frederick Taylor

what is NOT one of the five forces in Porter's model? a. power of buyers b. power of suppliers c. brand name recognition d. substitute products and services

c. brand name recognition

which decision making involves the use of confidential questionnaires? a. syntectics b. nominal group c. delphi technique d. none of these

c. delphi technique

Ted is selling his products at a loss in some locations to gain customers this is called a. ethnocentrism b. subsidies c. dumping d. tariggs

c. dumping

Mercedes Benz is an example of which type of competitive strategy? a. cost leadership b. differentiation c. focus d. stuck in the middlw

c. focus

global sourcing is also called a. importing b. franchising c. offshoring d. licensing

c. offshoring

which describes making technique frequently involves role playing and fantasizing? a. brianstorming b. nominal group technique c. synectics d. consenus mapping

c. synectics

which management level develops strategic plans? a. supervisory level b. lower level c. upper level d. non-management workers

c. upper level

Chapter 1

management and its history

Chapter 3

managing diversity in a global environment