MGMT study guide

example of corporate-level strategy

1. Google managers ask, "Which company should we acquire next to access new technologies and customers?" 2. Tesco managers sold their Fresh & Easy U.S. grocery-store chain after looking at the returns from that division and comparing them with returns from Tesco's other divisions around the world. The analysis led managers to decide that the market couldn't deliver acceptable returns for the company, which is based in England.

example of cellular layout

A clothing manufacturer, for example, might create a cell, or designated area, dedicated to making a family of pockets, such as pockets for shirts, coats, blouses, and slacks

what is the rational decision making model

A manager who really wants to approach a decision rationally and logically. 1. Recognizing and defining the decision situation 2.Identifying alternatives Both obvious and creative alternatives are desired 3. Evaluating alternatives 4. Selecting the best alternative 5. Implementing the chosen alternative 6. Following up and evaluating the results

Fixed-Position layout

fixed-position layout: the organization is creating a few very large and complex products

Example of product layout

Dell's personal computer factories

What are the characteristics of various decisions we make?

Certainty, Risk, Uncertainty

What are the various levels of management

top, middle, first line

what is the service industry

transforms resources into an intangible output and created time or place utility for its customers

What is computer-aided design?

uses computers to design products and to simulate performance, eliminating the need to build prototypes

product layout

Product layout: large quantities of a single product are needed.

What are the various types of goals?

Strategic goals tactical goals operational goals

Example of contingency planning

Action point 1: develop plan, considering contingency events Action point 2: Implement plan and formally identify contingency events. Action point 3: specify indicators for the contingency events Action point 4: successfully complete plan or contingency plan. When the COVID-19 pandemic hit in 2020, Disney was able to utilize many components of its existing weather-based contingency plans to systematically first close its theme parks and then its adjacent resorts. Similarly, Disney was also able to then begin to plan for how and under what circumstances its resorts and theme parks would reopen

Example of process layout

Aircraft manufacturers like Boeing and shipbuilders like General Dynamics use this method

Example of CAD

AutoCAD, Autodesk Inventor, CATIA, Solid Works

Example of competitive advantage

Caterpillar, for example, obtained a sustained competitive advantage when the U.S. Army granted it a long-term contract during World War II. The army felt obligated to offer this contract because of the acute international construction requirements necessary to meet the army's needs

Cellular layout

are used when families of products can follow similar flow paths

example of swo(T)

During the off-season, another team in the league signed players whose skills matched or exceeded those of the current champions

example of operational goals

Implement employee incentive system within 1 year. Develop regional advertising campaigns within 1 year. Decrease waste by 5% this year. Negotiate 5 percent lower advertising rates next year

definition and example of prospector

Innovative and growth oriented, searches for new markets and new growth opportunities, encourages risk taking (Amazon, 3M, and Rubbermaid)

definition and example of analyzer

Maintains current markets and current customer satisfaction with moderate emphasis on innovation (DuPont, IBM, Uber)

example of manufacturing industry

The Goodyear Tire & Rubber Company is a manufacturer because it combines rubber and chemical compounds and uses blending equipment and molding machines to create tires. Broyhill is a manufacturer because it buys wood and metal components, pads, and fabric and then combines them into furniture.

What is decision making?

The act of choosing one alternative from among a set of alternatives

definition of uncertainty

The decision maker does not know all the alternatives, the risks associated with each, or the likely consequences of each alternative

What is contingency planning?

The determination of alternative courses of action to be taken if an intended plan is unexpectedly disrupted or rendered inappropriate.

Example of (S)wot

The firm started out by selling books with an online store front. Once the fledgling business achieved high levels of efficiency, its founder and CEO, Jeff Bezos, realized that the same supply chain methods used to sell and distribute books could also be used to sell and distribute other products as well.

non-programmed decision making

are relatively unstructured and occur much less often. Disney's decision to buy fox. Most/all decisions made by top managers non-routine decision making that occurs in response to unusual, unpredictable opportunities and threats

Definition of Certainty

decision maker knows with reasonable certainty what the alternatives are and what conditions are associated with each alternative.

maturity stage of product life cycle

demand growth for a product begins to slow down # of new of establishing firms producing the product may begin to decline. this stage is essential for the survival of the comp. 1. Total industry sales slow, marginal competitors begin to leave the market. 2. Sales increase at a decreasing rate, and most consumers who would buy the product are either repeat purchasers of the item or have tried and abandoned it. 3. Fewer new buyers enter the market. 4. Marketing actions are focused on maintaining market share through product differentiation and finding new buyers. -Examples: Soft drinks and DVD players.

introduction stage of product life cycle

demand may be high, sometimes outpacing the firm's ability to supply.

what is the manufacturing industry

form of business that combines and transforms resources into tangible outcomes that are then sold to others

What is the miles and snow tapology?

identifies four strategic types of organizations. Three of these—the prospector, the defender, and the analyzer—can all be effective in certain circumstances. The fourth type—the reactor—represents an ineffective approach to strategy.

example of certainty

managers at Singapore Airlines make a decision to buy five new jumbo jets. Their next decision is from whom to buy them. Because there are only two companies in the world that make jumbo jets, Boeing and Airbus, Singapore Airlines knows its options with relative certainty.

growth stage of product life cycle

more firms begin producing the product sales continue to grow. Characteristics: •Rapid increases in sales •Competition appears •Profit peaks •Advertising shifts to selective demand. •Sales grow at an increasing rate because of new people trying the product and repeat purchasers bought again. •Changes appear..."New and Improved!"

Programmed Decision Making

one that is relatively structured or recurs with some frequency. Protects current markets, maintains stable growth, serves current customers. Routine, virtually automatic decision making that follows established rules or guidelines.

What is automation

process of designing work so that it can be completely or almost completely performed by machines

What is operations management?

set of managerial activities used by an organization to transform resource inputs into products and services

What are the characteristics of operational goals

show how, specifically, the tactical plan will be implemented. The operational plan is a plan for accomplishing the operational goals.

What are the characteristics of tactical goals

specify objectives that will contribute to the company's strategic plan. The tactical plan is a plan for accomplishing the tactical goals.

What is a SWOT analysis?

strengths, weaknesses, opportunities, threats

example of risk

that a labor contract negotiator for a company receives a "final" offer from the union right before a strike deadline. The negotiator has two alternatives: to accept or to reject the offer

definition of risk

the availability of each alternative and its potential payoffs and costs are all associated with probability estimated

Example of s(W)ot

the firm grew complacent based on its early success and fell behind Walmart. Kmart then failed to invest in new technologies, allowed its stores to become run down and poorly maintained.

what is manufacturing capacity

the number of items your employees can produce in a specific period of time, like an hour, day or week

Definition of business-level strategy

the set of strategic alternatives from which an organization chooses as it conducts business in a particular industry or market

definition of corporate-level strategy

the set of strategic alternatives from which an organization chooses as it manages its operations simultaneously across several industries and several markets

example of manufacturing capacity

theoretical maximum capacity under optimized conditions from a manufacturing facility may be 100,000 phones per week. In reality the maximum capacity is measured as 70,000 phones per week.

example of strategic goals

Get a 14% return on investment for at least 10 years. Start or purchase new restaurant chain in the next 5 years. Negotiate new labor contract this year

what is an example of scope

Mars, has adopted a broader scope by competing in the pet food business and the electronics industry, among others. Hershey Foods has essentially restricted its scope to the confectionery business, with a few related activities in other food-processing areas.

example of service industry

Merrill Lynch makes stock transactions for its customers, Avis leases cars to its customers, and local hair stylists cut clients' hair.

what is the product life cycle

Model that shows how sales volume changes over the life of products. Four stages: Introduction, Growth, Maturity, and decline

Definition and example of reactor

No clear strategy, reacts to changes in the environment, drifts with events. International Harvester (Navistar) Macy's Kmart

example of tactical goals

Open 150 restaurants during the next 10 years. Increase per store sales 5% per for 10 years. Decrease food-container costs by 15% during the next 5 years. Target and attract 2 new market segments during the next 5 years

process layout

Process layout: used in operations settings that create or process a variety of products or activities

what are the types of organizational layout

Product layout Process layout fixed-position layout Cellular layouts

definition and example of defender

Protects current markets, maintains stable growth, serves current customers (BIC, eBay, and Mrs. Fieolds)

example of business-level strategy

1. Managers at Annie's, a company that makes organic foods, are considering the best ways for the company to position its products after a great IPO. They decide on a focus strategy, targeting sales at people who care about what's in their food. 2.PepsiCo makes and sells large numbers of products, from Pepsi Cola to Lay's potato chips to Cap'n Crunch cereal. Last Tuesday, PepsiCo analyzed the sales of Near East Rice Pilaf mix. Looking at the increase in sales for foreign foods, and considering the large amount of money PepsiCo has in its coffers, managers decided to continue selling Near East Rice Pilaf and advertise it more heavily.

example of rational decision making model

1. a plant manager sees that the employee turnover has increased by 5 percent 2. the plant manager can increases wages, benefits, or charge hiring standards. 3. Increasing benefits may not be feasible, Increasing wages may satisfy all conditions 4. changing hiring standards will take an extended period of time to cut turnover, so increase wages 5. plant manager may need permission from corporate headquarters 6.the plant manager notes that 6 months later turnover dropped to its previous level

what is the classical decision making model

A prescriptive 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

definition of competitive advantage

A situation in which an organization is not implementing valuable strategies that are being implemented by competing organizations

decline stage of product life cycle

Sales drop, often because of environmental changes. For example, CD's declined as digital music players proliferated. Companies typically follow one of two strategies: 1. Deletion: dropping the product from the company's product line...the most drastic strategy. This option is not taken lightly because there is usually a residual core of customers who continue to consume or use the product even in the decline stage. Example: IBM stopped making laptop computers. 2. Harvesting: the company retains the product but reduces marketing costs. The product continues to be offered, but salespeople do not allocate time in selling nor are advertising dollars spent. The purpose of harvesting is to maintain the ability to meet customer requests. Coca-Cola, for instance, still sells Tab, its first diet cola, to a small group of die-hard fans.

example of sw(O)t

Sign a free-agent outfielder to bolster the current roster and sign the young pitchers to long-term contracts.

example of tactical plans

We seek to expand by opening 150 new restaurant locations in the next 10 years.

example of operational plan

We seek to improve efficiency by implementing a new computerized payment system

example of strategic plans

We seek to provide a 14% or greater annualized return of investment for our shareholders.

example of operations management

When Dell Computer buys electronic components, assembles them into PCs, and then ships them to retailers and individual consumers

What is scope?

When applied to strategy, it specifies the range of markets in which an organization will compete

definition of strategic plans

a general plan outlining decisions of resource allocation, priorities, and action steps necessary to reach strategic goals

Definition of tactical goals

a goal set by and for division heads, such as vice presidents or directors. These goals are the projected accomplishments for a large segment of the organization, such as an entire division or a unit of the company

definition of operational goals

a goal set by and for lower-level managers of the organization. Set day-to-day objectives employees must meet to achieve tactical goals

definition of tactical plans

a plan aimed at achieving tactical goals, developed to implement parts of a strategic plan

What are the characteristics of strategic goals

as objectives the company must meet to fulfill its purpose. The strategic plan is the plan for the strategies the company will use to achieve the strategic goals.

Definition of strategic goals

a goal set by and for top managers (CEO, President, or Senior Execs.) of the organization. Identify broad objectives for the entire organization and support the company's mission.

definition of operational plan

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