MGMT 309: Exam 2 review

administrative model

A decision-making approach/model that argues that decision makers use incomplete and imperfect information, are constrained by bounded rationality, and tend to "satisfice" when making decisions

prospector strategy

Miles & snow identified business strategy that encourages decentralized creativity/flexibility for growth and innovation

coalition, intuition, escalation of commitment, risk propensity, personal ethics

What are the 5 elements of behavioral decision making that can affect a managers' decision?

value added analysis, benchmarking, outsourcing, reducing cycle time, statistical quality control

What are the 5 tools/techniques of total quality management?

specific, measurable, attainable

What are the characteristics of a good mission statement?

programmed, nonprogrammed

What are the two types of decisions?

competition, productivity, lowers costs

Why is quality so important?

product/service mix

a decision that concerns how many/what kinds of products and services and org will offer

capcity

a decision that concerns the amount of products/services that can be produced by an org

facilities

a decision that concerns the physical locations where products will be created/stored/distributed

management by objectives (MBO)

a formal goal-setting process involving collaboration between managers and subordinates; the extent to which goals are accomplished is a major factor in evaluating and rewarding subordinates' performance

process layout

a layout that organizes the transformation process into departments that group related processes

represents operational goal

a line manager in a brewery. In this case, he sets a target for the minimum number of beer cartons that have to be shipped out by the end of each day.

contingency plan

a plan to determine alternative courses of action to be taken if an intended plan is unexpectedly disrupted or rendered inappropriate (aka: crisis mgmt)

action plan

a plan used to operationalize any other kind of plan

economies of scale

a proportionate saving in costs gained by an increased level of production

sustained competitive advantage

all attempts at strategic limitation have ceased

business level strategy

alternatives that an organization chooses from as it conducts business in one market/industry

corporate level strategy

alternatives that an organization chooses from as it manages operations across several markets/industries

productivity

an economic measure of efficiency and what is produced relative to the resources used to produce it

distinctive competence

an organizational strength, the thing we do better than everyone else or something only a small group of firms can compete with

opportunities

areas in the environment that if exploited can generate higher performance

threats

areas in the environment that increase difficulty of achieving high performance

strategic goal

broad/general goals set by top management

nonprogrammed decisions

decisions that are relatively constructed and occur less often. Reactive to facing something different/new. want to get out as many ideas/alternatives as possible

strategic imitation

duplicating another firm's competence into a valuable strategy

SWOT analysis

helps develop strategies. look at organization's missions. deliberate in nature. internal + external analysis

value added analysis

look at every work activity, material flow, and paperwork to determine the value they add to customers

inventory control/materials control

managing raw materials, work in progress, finished goods, and products in transit

single product strategy

manufactures just one product or service and sells it in a single geographic market

defender strategy

miles & snow identified business strategy that focuses on lowering costs and improving current products rather than on innovation

reactor strategy

miles & snow identified business strategy that has no consistent approach

analyzer strategy

miles & snow identified business strategy that maintains current business along with moderate innovation

unrelated diversification

operate multiple businesses that are not really associated with one another

related diversification

operate several businesses that are somehow related to one another

forward vertical integration

organization conducts activities formally done by its customers

backward vertical integration

organization conducts activities formally done by suppliers

partial productivity ratio

outputs / 1 category of resources

total factor productivity

outputs / inputs

labor productivity

outputs / labor costs

standing plan

planning for activities that happen regularly over a period of time

worldwide learning

source of international competitive advantage where you gather the best practices from many areas/locations

introduction, growth, maturity, decline

stages of the product life cycle

economies of scope

the ability to use one resource to provide many different products and services

diversification

the number of different businesses that an organization is engaged in and the extent to which these businesses are related to one another

industry productivity

the total productivity of all the firms in an industry

quality

the totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs

cycle time

time needed by the organization to accomplish an activity. You want to reduce this time

aggregate productivity

total level of productivity achieved by a country

product layout

type of layout that is based around the product (ex: assembly line)

emergent strategy

type of strategy developed in the absence of/despite missions and goals. more reactive

deliberate strategy

type of strategy that chooses plan of action based on specific goals/mission. very intentional

performance, features, reliability, conformance, durability, serviceability, aesthetics, perceived quality

what are the 8 dimensions of quality?

reduce economic risk and overhead costs, synergy, exploit strengths

what are the benefits of related diversification?

stable performance, resource allocation advantages

what are the benefits of unrelated diversification?

deliberate, emergent

what are the types of strategies?

decision making

choosing 1 (the best) alternative from a set of alternatives on a situation

total quality management (TQM)

commitment by top management to change the whole approach to their business and make quality the top guiding factor

strategy formulation

conceiving what the strategy is going to be. the set of processes involved in creating/determining the strategies of the organization. Focuses on content of strategies

purchasing management/procurement

concerned with buying materials/resources needed to produce products and services

weaknesses

don't enable and limit our strategy and mission. you want to avoid these

coalition

element of behavioral decision making in which an informal alliance is formed to achieve a common goal

risk propensity

element of behavioral decision making that refers to the extent to which a decision maker gambles when deciding

escalation of commitment

element of behavioral decision making where managers stay with a decision even when its wrong

intution

element of behavioral decision making without conscious deliberation (gut feeling)

strengths

enable us to implement our strategy and make us more competitive. you want to exploit these/use to your own advantage

in process sampling

evaluating during production to make changes if needed (part of SQC)

IBM

example of company that uses analyzer strategy

Auntie Anne's

example of company that uses defender strategy

office depot

example of company that uses reactor strategy

3M, google, amazon

examples of companies that use prospector strategy

operational goal

goals focused on short-term issues, set for and by lower level management

tactical goal

goals set for and by middle management

barriers

how do inappropriate, unachievable, unmeasurable goals; improper rewards systems; dynamic environments; reluctance to establish goals; resistance to change; affect the goal setting process?

invest in strengths or modify mission

how do you address weaknesses?

R/D, revamp facilities, increase employment involvement

how do you improve productivity?

know pros/cons, set deadlines, avoid dominance/groupthink

how do you manage group/team decision making?

understand purpose, communication, consistency, effective reward system

how do you overcome goal setting barriers?

resource deployment

how to distribute resources across areas in which the organization competes

fixed position layout

layout in which labor, equipment, materials, and other resources are brought to the same area where all production work is done (ex: building a plane)

company productivity

level of productivity achieved by 1 company/firm

unit/individual productivity

level of productivity achieved by 1 department/unit of a firm or an individual

benchmarking

process of learning how other firms do things well

supply chain management

process of managing all operations control, resource acquisition, and inventory to improve efficiency/effectiveness

technology

processes/systems we use to convert resources into products/services

scope

range of markets in which an organization will compete

decision making process

recognizing and defining the nature of a decision situation, identifying alternatives, choosing the "best" alternative, and putting it into practice

computer assisted manufacturing

relies on computers to design/manufacture products

acceptance sampling

sampling finished goods for quality standards (part of SQC)

satisfice

searching for alternatives until one is found that meets minimum standards for sufficiency. accepting solutions that are "good enough"

operations management

set of managerial activities that an organization uses to transform resources into products/services they sell

location efficiencies

source of international competitive advantage where it is easier to locate cost advantages (ex: cheap labor) and choose where to be located

mission statement

statement of the organization's fundamental purpose

outsourcing

subcontracting of services and operations to an outside vendor/firms that perform cheaper/better

strategy implementation

takes the strategies and they are executed within the organization. focuses on the processes used to achieve those strategies

Statistical Quality Control (SQC)

techniques used to monitor quality

programmed decisions

type of decision that is fairly structured and/or occurs with frequency. quick, almost automatic decision-making

manufacturing

type of form utility industry, that transforms input into tangible outputs

service organization

type of time/place utility industry, that transforms inputs into intangible outputs

computer-aided design

using computers to design parts, complete products, simulate performance so that prototypes don't need to be constructed

product life cycle strategy

using the knowledge of how products enter the market and grow to dictate strategies

aggregate, industry, company, unit/individual productivity

what are 4 levels of productivity?

programs, projects

what are the 2 types of single use plans?

distinctive competence, scope, resource deployment

what are the 3 components of strategy?

total factor productivity, partial productivity ratio, labor productivity

what are the 3 forms of productivity?

feasible, satisfactory, affordable consequences

what are the 3 questions used to evaluate an alternative?

prospector, defender, analyzer, reactor

what are the 4 business strategies identified in miles & snow typology?

start, establish, collaborate, communicate, review, evaluate

what are the 6 steps of the formal-goal setting process (MBO)?

strategic, tactical, operational

what are the levels of goals?

area, time

what are the two ways you can categorize goals by?

strategic, tactical, operational

what are the types of plans?

competitive disadvantage

when a firm is not implementing valuable strategies that other competing firms have

competitive advantage

when an organization successfully exploits their competencies to the greatest degree

bounded rationality

A set of boundaries or constraints that tend to complicate the rational decision-making process. Ex: values, unconscious reflexes/skills/habits, personal belief systems

new products, replace suppliers/customers, mergers/acquisitions

What are 3 ways that companies can diversify?

product/service mix, capacity, facilities (layout)

What are the 3 decisions that need to be made when it comes to designing operating systems?

global efficiencies, multimarket flexibility, worldwide learning

What are the 3 sources of competitive advantage of international/global strategies?

policies, standard operating procedures, rules/regulations

What are the 3 types of standing plans?

complete/perfect info, eliminate uncertainty, evaluate rationally/logically

What are the conditions of the classical decision model?

recognize situation, identify alternatives, evaluate, select best one, implement, evaluate

What are the steps in the decision-making process?

strengths, weaknesses, opportunities, threats

What does SWOT stand for?

classical decision model

a perspective approach to decision making that tells managers how they should make decisions; assumes that managers are logical and rational and that their decisions will be in the best interests of the organization

single use plan

a plan developed to carry out a course of action that is not likely to be repeated in the future

reaction plan

a plan developed to react to an unforeseen circumstance

strategic plan

a plan that focuses on achieving strategic goals

tactical plan

a plan that focuses on carrying out strategic plans and achieve tactical goals

operational plan

a plan that focuses on carrying out tactical plans to achieve operational goals

cellular layout

a type of layout typically used in group technology settings in which resources are physically arranged according to the dominant flow of activities for the product family

malcolm baldrige award

award given to firms who achieve major quality improvements

optimization

balancing and reconciling possible conflicts amongst goals