Chapter 5,6,8 Managment

________ is the process by which a company compares its performance with that of high-performing organizations.

Benchmarking

According to Porter, the cost-focus and focused-differentiation strategies have what in common?

Both focus on narrow markets.

diversification strategy

Companies generally diversify to either grow revenue or reduce risk

Levels of Strategy

1. Corporate 2. Business 3. Functional

Planning and Strategic Management

1. Establish the organization's mission and vision 2. Formulate the grand strategy 3. Formulate the strategic plans, then the tactical and operational plans 4. Implement the strategic plans 5. Control the strategy

Three Levels of Organizational Culture

1. observable artifacts 2. espoused values 3. basic assumptions

Market Culture

A Competitive Culture Valuing Profits over Employee Satisfaction

Adhocracy Culture

A Risk-Taking Culture Valuing Flexibility

Hierarchy Culture

A Structured Culture Valuing Stability and Effective

MBO (management by objectives)

A system of goal setting and implementation; it involves a cycle of discussion, review, and evaluation of objectives among top and middle-level managers, supervisors, and employees.

Clan Culture

An Employee-Focused Culture Valuing Flexibility, Not Stability

functional level strategy

Applies to the key functional departments or units within the business units

business level strategy

Focuses on individual business units or product/service lines

corporate level strategy

Focuses on the organization as a whole

Growth strategy

Involves expansion, as in sales revenues, market share, number of employees, or number of customers

stability strategy

Involves little or no significant change

defensive strategy

Involves reduction in the organization's efforts

Cost focus strategy (Porter)

Keeping costs and prices low for a narrow market

Cost-Leadership Strategy (Porter)

Keeping costs and prices low for a wide market

Focused-Differentiation Strategy (Porter)

Offering unique and superior value for a narrow market

Differentiation Strategy (Porter)

Offering unique and superior value for a wide market

question marks

Risky new ventures- some will become stars, some dogs

________ is the process wherein alternative possible plans are created and then the one that best fits the situation is applied.

Scenario analysis

common purpose

The means for unifying members

Organizational culture

The shared assumptions that affect how work gets done

Victoria, a shift manager in a shoe factory, directly supervises 40 employees on her shift. The 40 workers who report directly to Victoria represent her

span of control.

vision statement

What do we want to become? long-term goal describing "what" an organization wants to become

mission statement

What is our reason for being? its purpose or reason for being

Executives, often referred to as the "C-Suite," should focus their decision making on which of the following?

What products and services shall we offer?

Organizational structure

Who reports to whom and who does what

division of labor/specialization

Work specialization for greater efficiency

Coordinated effort

Working together for common purpose

Operating plan

a plan that "breaks long-term output into short-term targets" or goals

A SWOT analysis is a

a search for the strengths, weaknesses, opportunities, and threats affecting an organization

matrix structure

an organization combines functional and divisional chains of command in a grid so that there are two command structures—vertical and horizontal

Hierarchy of authority

chain of command

Which of Edgar Schein's common elements unifies employees and gives everyone an understanding of the organization's reason for being?

common purpose

four proposed by edgar schein. Major Features of Organizations

common purpose, coordinated effort, division of labor and hierarchy of authority.

Organizations using a matrix structure

contain two command structures, in which some people report to two bosses.

This year's sales at Yours Truly Consignment have been strong, and next year's sales are also projected to be good. Even so, Yours Truly managers should conduct ________ so they are prepared in the case that sales drop unexpectedly.

contingency planning

to maximize profitability and competitiveness, firms must

create alignment across all levels of strategy

Symbols, stories, heroes, and rites and rituals are ways in which ____ is (are) most often transmitted to employees.

culture

The second step in the strategic-management process is a(n) ________, where managers look at where the organization stands, and then determine what is working and what could be different to maximize efficiency and effectiveness in achieving the organization's mission.

current reality assessment

at the strategic level of planing, managers must pay attention to the environment outside the organization, be future oriented, and

deal with uncertain and competitive conditions

A company that gradually phases out product lines or liquidates its inventory is pursuing a ________ strategy.

defensive

Organizational weaknesses in a SWOT analysis are

drawbacks that hinder an organization in executing strategies.

In order, the steps of the strategic-management process are

establish the mission, vision, and values statements; assess the current reality; formulate the grand strategy; implement the strategy; and maintain strategic control.

Strategic level planning

generates long term forecasts of demand (more than one year into the future), that are used to make grand technology or facility plans.

For division of labor to work, there must be a minimum of four employees.

false

Jack Welch's technique for developing business-level strategy represents an academic approach

false

an organizational structure is a set of shared, take-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its environments.

false

organizational culture appears in four levels: clan, adhocracy, market and heirarchy

false

organizational psychologist Edgar Schein recommends that managers delegate emergencies, confidential matters, and personnel-related matters.

false

Duracell, a company well-known for manufacturing alkaline batteries, derives its strategic position from which source?

few needs, many customers

stars

have high growth, high market share - definite keepers

dogs

have low growth, low market share - should be gotten rid of.

cash cows

have slow growth but high market share- income finances stars and question marks

goal

is a specific commitment to achieve a measurable result within a stated period of time

Cyril, who manages an ATV dealership, is determined to implement management by objectives to help

motivate his employees

__________ can be another term used for goal.

objective

A company dress code and award ceremonies would be part of

observable artifacts.

The managerial tools for ___________ include a SWOT analysis, forecasting, and VRIO analysis

organizational assessment

The three levels of ___________ are strategic, tactical and operational.

planning

A financial services company with insurance, investments, mortgages, and banking divisions is best characterized as having a

product structure.

a forecast is

projection for the future

Which managers would be at Level 2: Business-level strategy?

retail unit managers

________ is another term for a defensive strategy.

retrenchment strategy

In a SWOT analysis, organizational strengths are

skills and capabilities that give a company advantages in executing its strategies.

"Be all you can be" is an example of a

slogan or saying

In the BCG matrix, ________ are companies that have high growth and high market share, and are definite keepers.

stars

BCG Matrix

stars, question marks, cash cows, dogs

after establishing value statement, what is the next step in planning?

strategic planning

The three key principles of ________ are the creation of a unique and valuable position, trade-offs in competing, and creating a "fit" among activities.

strategic positioning

3 levels of planning

strategic, tactical, operational

Action plan

the course of action needed to achieve a stated goal. Whether the goal is long term or short term, action plans outline the tactics that will be used to achieve a goal

Strategic implementation is thought to be

the greatest managerial challenge in strategic management.

"Increase market share by 4% a year for each of the next 5 years" is an example of a strategic goal

true

Mateo, a florist, recently learned about strategic management and wants to implement this process for his flower shop. Mateo should begin by establishing mission, vision, and values statements.

true

Optimistic people view challenges as opportunities to influence decisions.

true

Before moving forward with its strategic management, organizations should develop vision statements that describe

what the company wants to become and where it wants to go strategically.

A mission statement expresses ______________, and a vision statement expresses _____________.

why the organization exists; what the organization wants to become

which of these explains why authority is most effective in a hierarchy

without tiers of authority, it would be difficult to get things done.