MGNT EXAM 2

reactor

A company that does not follow a consistent strategy but just responds to changes in the environment.

cellular layout

A configurations of facilities used when families of products can follow similar paths

SWOT Analysis

identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T) would be used to assist with strategy formation

Unclear Means-end Relations

impossible to generate an exhaustive list of alternatives then select the most promising

analyzer

incorporates elements of both the prospector and the defender strategies to maintain business and to be somewhat innovative

capacity decisions

involve choosing the amount of products, services, or both that can be produced by an organization can be high risk due to uncertainty about future product demand and incurred costs

Strategic Management

involves formulating and implementing strategies to take advantage of business opportunities and meet competitive challenges

cash cows

large shares of mature markets

stars

large shares of rapidly growing markets

multi-domestic strategy

managing a corporation as a collection of independent operating subsidiaries frees a firm to customize its products, its marketing campaigns, and operating techniques to meet local customer needs

portfolio management techniques

methods used by diversified organizations to determine which businesses to engage in and how to manage these businesses to maximize corporate performance (BCG Matrix and GE Business Screen)

unrelated diversification

operates multiple businesses that are not logically associated with one another

operations systems make several types of decisions including:

product-service mix capacity facilities

Scope

range of markets in which an organization will compete

nonprogrammed decision

relatively unstructured and occurs much less often than a programmed decision

automation components:

sensor, feedback, information, control

operational plans

set by and for lower level managers to address issues associated with tactical goals

operational goals

set by and for lower-level managers to address issues associated with tactical goals (short range)

tactical goals

set by and for middle managers; their focus is on how to operationalize actions to strategic goals (intermediate range)

crisis management

set of procedures the organization uses in the event of a disaster or other unexpected calamity

business level strategy

set of strategic alternatives from which an organization chooses as it conducts business in their particular industry or market focuses on cost-leadership, differentiation, focus strategies

Basis of relatedness

similar technology, common distribution and marketing skills, common brand name and reputation, common customers

dogs

small market shares and no growth prospects

question marks

small shares of mature markets

Distinctive Competence

something an organization does exceptionally well

features

supplements to a product or service is basic function and characteristics EX: I am always responsive to the expressed and unexpressed wishes and needs of our guests

decision making under risk

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

decision making under uncertainty

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

Decision Making Under Certainty

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

contingency planning

the determination of alternative courses of action to be taken if an intended plan is unexpectedly disrupted or rendered inappropriate help managers cope with uncertainty and change

worldwide learning

the diverse operating environments of multinational corporations (MNCs) contribute to organizational learning that can be transferred to other operating environments

company productivity

the level of productivity of a single company

Noisy Environment

the link between outcome and actions is hard to predict

groupthink

the mode of thinking that occurs when the desire for harmony in a decision-making group overrides a realistic appraisal of alternatives

perceived quality

the perception as seen by a customer EX: I build strong relationships and create Ritz-Carlton guests for life

strategy formulation

the processes involved in creating or determining an organization's strategies

unit productivity

the productivity level of a unit or department

operations management

the set of managerial activities used by an organization to transform resource inputs into products, services, or both

aggregate productivity

the total level of productivity for a country

industry productivity

the total productivity of all the firms in an industry

lack of consensus

there is not a general agreement of the definition of problems, decisions, and decision making goals at the beginning

global strategy

viewing the world as a single marketplace and having as a primary goal the creation of standardized goods and services that will address the needs of customers worldwide

corporate level strategy

views an organization from a higher level, looking at how companies compete across industries focuses on expanding, downsizing, stability, growth, profits

process layout

when multiple products are made/multiple activities are performed. different types of work are performed at different workstations, and each type of product will take a different route through the factory

prospector

-encourages creativity to seek out new market opportunities and to take risks -develops the flexibility to meet changing market conditions by decentralizing its organizational structure

home replication

utilizing a core competency or a firm-specific advantage developed at home as a main competitive weapon in foreign markets

risk propensity

extent to which a decision maker is willing to gamble when making a decision

product layout

facilities arranged around the product; used when large quantities of a single product are needed

defender

focuses on defending its current markets by lowering costs or improving performance

strategic goals

goals set by and for top management of the organization that addresses broad, general issues (long range)

Resource Deployment

how an organization will distribute its resources across the areas in which it competes

GE Business Screen

A method of evaluating businesses along two dimensions: (1) industry attractiveness and (2) competitive position; in general, the more attractive the industry and the more competitive the position, the more an organization should invest in a business -classifies businesses as winners, losers, question marks, average businesses, and profit producers

product-service mix

How many and what kinds of products or services (or both) to offer

fixed position layout

Layout in which the product or project remains stationary, and workers, materials, and equipment are moved as needed; used for manufacture of large products

corporate level

Seattle-based Theo Chocolate makes organic and Fair Trade chocolate bars. Its management team includes CEO Etienne Patout. Suppose Patout were considering whether Theo Chocolate should branch out and start selling other items in addition to its chocolates, such as locally made baked goods. This is a _____ level strategic decision.

Supply Chain Management

The process of managing operations control, resource and inventory acquisition and purchasing, and thus improving overall efficiency and effectiveness.

satisficing

The tendency to search for alternatives only until one is found that meets some minimum standard of sufficiency

strategic plans

a general plan set by and for top management that outlines resource allocation, priorities, and action steps to achieve strategic goals

durability

a measure of product life EX: I am in power to create unique memorable and personal experiences for our guests

tactical plans

a plan aimed at achieving the tactical goals set by and for middle management

Strategy

a plan of action or policy designed to achieve a major or overall aim.

coalition

a positive or negative political force in decision making which consists of an informal alliance of individuals/groups formed to achieve a goal

programmed decision

a repetitive decision that can be handled by a routine approach

mission statement

a statement of an organizations fundamental purpose

standard operating procedure

a step-by-step process developed for activities that occur regularly

related diversification

a strategy in which an organization operates in several different businesses, industries, or markets that are somehow linked

Management by Objectives (MBO)

a technique for integrating formal goal setting and planning by giving subordinates a voice and clarifying what they are expected to accomplish (AVS at pub)

overall cost leadership strategy

an organization attempts to gain competitive advantage by reducing its costs below the costs of competing firms

focus strategy

an organization concentrates on a specific regional market, product line, or group of buyers

single-product strategy

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

differentiation strategy

an organization seeks to distinguish itself from competitors through the quality of its products or services

nominal group

are a structured technique designed to generate creative and innovative ideas through the individual contributions of alternatives that are winnowed down through a series of rank-ordering of the alternatives to reach a decision

robotics

artificial devices that perform human functions

value-added analysis

assesses all activities, material flows, and paperwork to determine the relative contribution to value

Transnational Strategy

attempting to combine the benefits of scale efficiencies pursued by a global corporation, with the benefits and advantages of local responsiveness of a multi-domestic corporation

Managers for IBM's SPSS statistics software meet to determine how they will market the product in the upcoming year. Their decision is to show potential clients how effective SPSS is at analyzing extremely large data sets, and how the "Direct Marketing" part of the program helps identify which customers will respond to advertisements.

business level strategy example

Benefits of automation

can lower errors and minimize the need for wait staff

Cisco managers sat down recently to review the portfolio of their company. They looked at all of the businesses the company had acquired in the last year and determined how much money each acquisition was making for Cisco. They then decided which companies to keep and which to spin off.

corporate level strategy example

planning task force

created when the organization wants a special circumstance addressed

bounded rationality

decision makers are limited by their values and unconscious reflexes, skills, and habits

Delphi group

developing a consensus of expert opinion from a panel of experts who individually contribute through a moderator

BCG Matrix

evaluates a portfolio of businesses on the growth rate of their respective markets and each business's relative share of its market -does not classify companies as winners, losers, and so forth