Management exam 2
examples of business analytics
Time-series forecast Portfolio analysis
VRIO
Value, Rarity, Imitability, Organization
the vision statement should answer
What do we want to become?
it is common practice today for most small business owners to engage in strategic planning
false
Boundryless Organization
fluid, highly adaptive organization whose members are linked by information technology and collaborate on common tasks.
When corporate departments such as marketing, human resources, and information technology implement plans of action that support higher-level strategies, they are following a(n) ______ strategy
functional
for goal setting to be successful, what must occur?
goals must be applied organization wide. top management must be highly committed. goals must cascade through the organization.
A business that wants to reach more customers and hires more employees to get this done is focusing on a ______ strategy.
growth
threats
hinder an organization from achieving a competitive advantage
A person's decision-making style is a combination of
how a person perceives something and how they respond to it
The first stage in the rational decision-making process involves
identifying th problem
Fourth step to rational decision making
implement and evaluate the solution chosen
the most cited challenge to artificial intelligence (AI) is:
implementation
What is the primary cause of failure for strategic initiatives?
improper execution
Porter's Five Forces Model for what analysis?
industry
Which models of decision making describe how managers actually make decisions?
nonrational
Evidence-based decision relies on ______.
observations about what actually works
what is an example of an organizational weakness (in SWOT)
obsolete technology
Environmental factors that an organization may exploit for competitive advantage are called organizational
opportunities
Which factors must work in concert to produce successful strategic execution?
organizational structure HR practices Organizational culture
According to Bossidy and Charan, the first core process of business is
people
Of the three core processes of business identified by Bossidy and Charan, which do they believe is the most important?
people
functional structure
people with similar occupational specialties are put together in formal groups
What are the core processes of business identified by Bossidy and Charan?
people, operations, strategy
in an organization culture a hero is
person whose accomplishments embody the organization's value's
continuous feedback loop
planning/control cycle
examples of first stage in rational decision making
poor product quality customer complaints sales shortfalls
The rational model of decision making is considered ______ in that it describes how managers should make decisions rather than how they actually make them
prescriptive
When is the ideal time to assess person-organization fit?
prior to accepting a position
Competing Values Framework
provides a practical way for managers to understand, measure, and change organizational culture
What are functional strategies used to accomplish?
putting strategic plans into effect
When other companies cannot duplicate the value provided by a competitor, then the competitor has established a(n) ______ competitive advantage.
sustainable
what behavior would a proactive learner most likely exhibit?
taking initiative
Coordinated effort
the coordination of individual efforts into a group or organization wide effort
imitability
the extent that firms can duplicate or substitute the resources and capabilities of competing firms
strategy formulation
the process of choosing among different strategies and altering them to best fit the organization's needs
decision making
the process of identifying and choosing alternative courses of action
authority
the rights inherent in a managerial position to make decisions, give orders, and utilize resources.
what does business growth rate refer to?
the speed of industry growth
strategic thinkers should have knowledge base shaped like the letter "T" representing
the top = breadth of knowledge & the stem = depth of expertise
differentiation strategy
to offer products or services that are of unique and superior value compared with those of competitors but to target a wide market
Types of organizational design
traditional horizontal open boundaries
Flat organizations
Few levels with wide spans of control- one manager overseeing many employees.
hierarchy of authority chain of command
A control mechanism for making sure the right people do the right things
Strategic Management Process steps
1. Establish the mission and the vision 2. Assess the current reality 3. Formulate the grand strategy 4. Implement the strategy 5. Maintain strategic control
MBO (management by objectives)
1. Managers and employees jointly set objectives for the employee. 2. Managers develop action plans. 3. Managers and employees periodically review the employee's performance. 4. Managers make a performance appraisal and reward the employee according to results.
4 common elements of organizations
1. common purpose 2. coordinated effort 3. division of labor 4. hierarchy of authority
Porter's 4 competitive strategies
1. cost-leadership 2. differentiation 3. cost-focus 4. focused-differentiation
Porter's Five Forces Model
1. threat of entry 2. power of suppliers 3. power of buyers 4. threat of substitutes 5. rivalry among existing competitors
Schien proposed the
4 common elements
simple structure organization
Authority in a single person Low work specialization A flat hierarchy
what is the most common type of AI used today?
Automated business processes
Organizational design is concerned with which activities?
Creating structures of accountability and responsibility Creating a structural design that will help an organization execute its strategies
market culture statements
Customers, productivity, and profits take precedence over employee development and satisfaction. Employees are expected to work hard, react fast, and deliver quality work on time, It is driven by competition and a strong desire to deliver results.
Vertical
Expresses the extent to which an organization prefers flexibility and discretion versus stability and control
Horizontal
Expresses the extent to which the organization focuses its attention and efforts inward on internal dynamics and employees versus outward toward its external environment and customers
Which are characteristics of strategy formulation?
It is the basis for determining long-term goals. It is a time-consuming process.
characteristics of clan culture
Promotes a feeling of familyEncourages collaboration among employees
What occurs as a result of the horizontal organizational design?
Teams are used to improve collaboration and work.
person-organization fit
The extent to which your personality and values match the climate and culture in an organization
observable artifacts
The readily apparent symbols and manifestations
decision
a choice made from available alternatives
the purpose of an organization
a company's mission
hierarchy of authority
a control mechanism for making sure the right people do the right things at the right time
story
a narrative about the company's history that is repeated by an organization's members in order to emphasize a particular value.
Benchmarking
a process by which a company compares its performance with that of high-performing organizations
decision tree
an analytical tool that can help managers understand the possible consequences of their decisions and to create a plan to reach a goal.
strategic positioning
an attempt to achieve sustainable competitive advantage by preserving what is distinct about a company.
tall
an organization comprised of many levels with narrow spans of managerial control
step 4 of MBO
appraisal and rewards
Functional organizational structures:
are common in both for-profit and nonprofit organizations. put employees with similar occupational specialties together in formal groups.
Heuristic
are strategies such as "rules of thumb" that simplify decision making.
The second step of the strategic management process involves
assessing the current reality
Which level of strategy is concerned with how much to spend on marketing or whether to expand facilities?
business
hollow
central core of key functions and outsources others to vendors who can do them cheaper and faster
higher customer satisfaction
clan and market cultures
higher market share
clan and market cultures
Once implemented, managers need ________ to keep strategic plans on track.
control systems
Which Porter's competitive strategies are appropriate when addressing a narrow market?
cost focused & differentiation
In order to implement a particular organizational strategy, managers must determine the right kind of organizational:
culture and structure
To decide how much an insurance policy should cost a customer, underwriters use ________, such as historical industry trends and loan characteristics, to predict risk levels.
data analytics
big data examples
data in corporate databases web-browsing data trails surveillance data social network communications
Nonrational models of decision making
describe how managers actually make decisions
Formal statements
embed preferred culture by describing organizational philosophy, mission, vision, and values.
second step in management by objectives
employees preparing action plans
What is the most valuable competitive resource for a manager who needs alternative solutions to a problem?
employees with ideas
cascading goal
ensuring that strategic goals at the top align with the short-term goals set at lower levels in the organizations
organizational threats
environmental factors that hinder an organization's achieving a competitive advantage
What is the third stage of the rational model of decision making?
evaluate alternatives and select a solution
Aligning people with goals, achieving promised results, and integrating strategy with reality are all part of the ______ process.
execution
espoused values
explicitly stated values and norms preferred by an organization
Espoused values in an organization's culture represent the ______.
explicitly stated values and norms the organization prefers
mission statement
expresses the purpose of the organization
a values statement
expresses what the company stands for, its core priorities, the values its employees embody, and what its products contribute to the world
analytics
fact-based decision making
market culture
strong external focus and values stability and control
Some large publishers have stopped publishing children's books because they are expensive to produce and distribute. This is an example of an offensive strategy.
false
clan culture
internal focus and values flexibility
corporate-level strategy
involves senior executives in planning answers questions such as "what business are we in?" and "what products and services shall we offer? "focuses on the organization as a whole
in the third stage of rational decision making what ?s would you use to evaluate alternitives
is it feasible? is it ultimately effective? is it ethical?
Division of labor
is the arrangement of having discrete parts of a task done by by different people in an organization
Rarity
is the resource or capability currently controlled by only a few or no other firms?
strategy
large-scale action plan that encompasses the company's vision and is used to create the direction for the business.
strategic planning requires a company to have a _____ orientation
long-term
intuition
making a choice without the use of conscious thought or logical inference
what are the planning steps in the planning/control cycle?
making the plan. carrying out the plan.
third step of management by objectives
manager and employee periodically reviewing the employees performance
rational model
managers should use logic to determine the optimal means of furthering the organization's best interests
more positive organizational outcomes
market cultures
What does the BCG matrix evaluate?
market share & business growth rates
types of structures categorized as organizational designs with open boundaries
modular hollow virtual
Diversification
moving into new lines of business
In organizational culture, a story is a(n)
narrative based on true events which is repeated in order to emphasize a particular value
hollow structure
network structure
The "feedback loop" in the strategic-management process involves:
revising actions if necessary
strongest ways to embed organizational culture
rewards and status symbols
examples of observable artifacts
ritual, decorations, awards
The number of people reporting directly to a given manager refers to
span of control
little or no change to a company's product or service
stability
Rational model of decision making
stage 1. identify the problem or opportunity stage 2. thunk up alternative solutions stage 3. evaluate alternatives & select a solution stage 4. implement & evaluate the solution
In which step of the strategic-management process does an organization establish the mission and vision statements?
step one
big data
stores of data so large that conventional database management systems cannot handle them
Which "unwritten" skill did the Harvard Business Review consider essential to being promoted on the job?
strategic thinking
SWOT
strengths, weaknesses, opportunities, threats
Evidence-based management includes making decisions based on what actually works versus what ought to work.
true
Execution is the central part of any company's strategy
true
common purpose
unifies employees or members and gives everyone an understanding of the organization's reason for being
adhocracy culture
values flexibility and has an external focus.
When would a company use a VRIO analysis?
when deciding whether or not a new product might work in the marketplace
an organizations vision represents
where the organization wants to go.
