MCE Test #2

strategic objectives

lay out target outcomes concerning a company's market standing, competitive positions, and future business prospects

value statement

list of key values or ideological themes considered important for organization

control

measuring performance and taking action to ensure desired results

effectiveness

meeting the objective (END goal)

emergent strategy

new strategy elements that emerge as managers react adaptively to changing circumstances

referent power

occurs when others idolize, identify with, and/or are inspired by the person

strategy

the coordinated set of actions that managers take to outperform organizations competitors and achieve superior success

management

the process of getting things done effectively and efficiently, with and through people

accountability

the requirement of one person to answer to a higher authority

enacted values

the values you see a company actually enacting/practicing

decisional

using information to make decisions

efficiency

using the smallest amount of resources possible (the MEANS to get to the end)

espoused values

what an organization says it values

quarterly performance audits

what are some examples of controlling for MIDDLE MANAGERS

to convert the vision and mission into specific performance targets

what is the purpose of an objective in an organization

value congruence

when espoused values and enacted values align

sustainable

when the advantage persists despite the best efforts of competitors to match or surpass

successful diffrentiation

allows firms to command a premium price for its products; increase unit sales; and gain buyer loyalty

productivity

amount of output generated given the amount of input

objectives

an organizations specific performance targets (the specific results management wants to achieve)

visions

creates an idealized future state for your organization that everyone is motivated to pursue wholeheartedly

crowdfunding

donation based or debt-investment (peer-to-peet lending)

informational

exchanging and processing information

strategic/Financial objectives

tangible outcomes or results to be achieved

What are two basic avenues for competitive advantage

1. provide product or service that buyer values more highly than others (higher perceived value) 2. Produce product or service more efficiently (lower costs)

1. Org. products/services 2. Constituent group or market the org. serves 3. Constituent needs that org. seeks to satisfy 4. unique identity of the org.

A mission statement clearly states the:

coercive power

Ability to harm, penalize, or punish someone

expert power

Capacity to influence others by possessing knowledge or skills that they value. Based on a perception of competence

Operations

Deciding on logistics is what part of business

a robber with a gun demanding your money

Example of coercive power

Einstein

Example of expert power

police officers

Example of legitimate power

celebrities and social media influencers

Example of referent power

Professor can reward with grades

Example of reward power

financial management

Examples of budgets

1. An X percent increase in annual revenues 2. Profit margins of X percent

Examples of financial objectives

-Angels -Crowdfunding -Venture Capitalists

Examples of individual investors

1. Winning X percent market share 2. Achieving lower overall costs than rivals

Examples of strategic objectives

individuals or small teams

Front-Line Managers focus on ....

vision is larger and more encompassing

How are visions different from slogans

they more clearly explain relative priority, how they are interrelated, and how they will be expressed

How are visions different from value statements

1. imagine the invisible 2. paint the picture 3. engage others 4. test your vision

How can you create a clear and compelling vision

-Let them know exactly how they fit in -Create freedom -Give them something to talk about

How do you get others to engage in your vision

has a long-term time perspective; should be more enduring

How is vision different form project objectives

focuses on values, ideological themes, and idealized future states (not economic outcomes)

How is vision different from strategic/financial objectives

it tells us what these activities mean to people (EX: why it is worthwhile)

How is vision different than the mission statement

4-8

How many values does an organization usually have

Accounting

Keeping records is which part of business

marketing

Knowing your customers is what part of business

influence processes

Management and leadership are what types of processes that move a group of individuals towards accomplishing a shared goal

human resources

Managing your employees is what part of business

groups, departments, or divisions

Middle Managers focus on...

specific; quantifiable or measurable

Objectives must be _______ and ___________

-think analytically -work with abstract ideas -solve complex problems

People who have conceptual skills have the ability to:

-Work well with others -relate to people -develop social capital -build and manage relationships

People who have human skills have the ability to:

-use expertise -perform tasks with proficiency -apply strong skill sets to operations

People who have technical skills have the ability to:

1. Easily copied strategies 2. Low value in unique attributes 3. Overspending on differentiation 4. Trivial improvements 5. Over-differentiating (EX: over-designing) 6. Charging too high of a premium

Pitfalls to avoid with the Broad Differentiation Strategy...

-Selling direct to consumers -Streamlining operations -Reducing materials-handling and shipping costs

Revamping options of the value chain system to create lower costs...

meaningless change and chaos

Strong leadership with no management leads to ________ in organizations

stagnant, inflexible

Strong management with no leadership leads to ________ organizations

Managers

These job requirements are for what position? -Set objectives for individuals, groups, and organizations -Direct and oversee the activities of others -May have work duties not related to overseeing others

non-managerial employees

These jobs requirements are for what position? -Work directly on tasks -Not responsible for overseeing others' work

entire organizations

Top Managers focus on ....

Small Business Administration (SBA)

US government agency that advices and assists small business by providing management, financial advice, and loans

focused; general

Visions in complex systems are... _____ enough to guide decisions and actions AND _____ enough to allow innovation and creativity in strategies for attaining it

-Does not need to be associated with position (personal power) -Establishing vision -Aligning people -Motivating and inspiring

What are some characteristics about LEADERS

-Based on position and authority (positional power) -Planning and budgeting -Organizing and staffing -Controlling and problem solving

What are some characteristics about MANAGERS

Annual employee performance review

What are some examples of controlling for FRONT-LINE MANAGERS

annual organizational performance analysis

What are some examples of controlling for TOP MANAGERS

relationship building

What are some examples of leading for FRONT-LINE MANAGERS

Establishing a sense of "we-ness"

What are some examples of leading for MIDDLE MANAGERS

creating a clear and compelling vision; creating culture

What are some examples of leading for TOP MANAGERS

Distribution of resources among departments

What are some examples of organizing for MIDDLE MANAGERS

organizational structure

What are some examples of organizing for TOP MANAGERS

day-to-day tasks of employees

What are some examples of organizing for a FRONT-LINE MANAGER

daily employee sales goals

What are some examples of planning for a FRONT-LINE MANAGER

quarterly department production goals

What are some examples of planning for a MIDDLE MANAGER

company long-term strategic goals

What are some examples of planning for a TOP MANAGER

1. Getting carried away with price cutting 2. Relying on easily replicable cost reduction approaches 3. Becoming too fixated on cost reduction 4. Not spending when needed

What are some pitfalls you should avoid while using the Broad Low-cost strategy

Capital, good ideas, planning, information management, budgets, accounting, marketing, good employee relations, overall managerial knowhow

What are some things that all organizations need

1. Lower buyers' overall costs 2. Incorporate tangible features that increase satisfaction 3. Incorporate intangible features that increase satisfaction in noneconomic ways 4. Signal the value (EX: high prices, fancy packaging, high luxury facilities)

What are the avenues for delivering superior value

1. Top Managers 2. Middle Managers 3. First-Line Managers 4. Team Leaders

What are the different levels of management

1. Broad low-cost strategy 2. Broad differentiation strategy 3. Focused low-cost strategy 4. Focused differentiation strategy 5. Best-cost strategy

What are the five generic competitive strategies

Plan, organize, control, and lead

What are the four functions of management

-Personal, family, or business associates -Small Business Administration -Individual Investors

What are the potential sources of capital when financing your business

Operations, service

What are the primary value chains

1. Planning your business 2. Financing your business 3. Knowing your customers (marketing) 4. Managing your employees (human resources) 5. Deciding on logistics (operations) 6. Keeping records (accounting)

What are the steps for managing a small business

Infrastructure, HRM

What are the support value chains

1. Perform value chain activities more cost-effectively than rivals 2. Revamp the firm's overall value chain to eliminate or bypass some cost-producing activities

What are the two avenues for achieving cost advantage

1. Broad or narrow market 2. Lower costs or differentiation

What are the two biggest factors of the five generic competitive strategies

1. Lower price for higher market share of price sensitive consumer 2. Increase efficiency for higher profit margin

What are the two options for low-cost advantage?

1. Managing the value chain to create differentiating attributes 2. Revamp the firm's overall value chain to increase differentiation

What are the two ways to achieve differentiation

referent power and expert power

What are the types of personal sources of social power

Legitimate power, reward power, and coercive power

What are the types of positional sources of social power

1. Informational 2. Interpersonal 3. Decisional

What are three roles of a manager

Conceptual, Human, and Technical

What are three skills that managers need

-Think about what they're thinking about -Carefully choose your signs, symbols, and language -Consider length -Relentlessly repeat

What are tips and tricks to painting the picture for a vision

positional sources, and personal sources

What are types of social powers

-deciding labor needs -recruiting and selecting the right people -training and development for growth -rewards and culture for retention -motivating for performance

What do you need to do in Human Resources, managing your employees in a business

-Manufacturing plans -Supply chain considerations

What do you need to do in Operations, deciding on logistics in a business

-Daily sales, expenses, and profits -Inventory control, customer records, and payroll

What do you need to do with Accounting, keeping records in a business

S- Specific M- Measurable A- Attainable R- Relevant T- Time Based

What does SMART goals stand for?

Fatigue, sleepiness= yellow; low arousal, low performance (LEFT on curve) Optimal Arousal= maximum height, medium arousal, top performance (MIDDLE on curve) Strong stress, anxiety, impaired performance= high arousal, low performance (RIGHT on curve)

What does Yerkes-Dodson's Law state?

-Tax planning and financial forecasting -Choosing sources of financing and wiring requests for funds

What does accounting in a business help with

direction and guidance

What does strategy in a business provide

-Consumer market -Knowing your customers and adapting quickly to ever-changing demands -You must listen>!

What goes along with Knowing your customers and marketing in businesses

-Mission, vision, and values -Strategic, and financial objectives

What goes into planning your organization

-Plant size -Machinery required -Production capacity

What goes on with manufacturing plans in a business

-Inventory and inventory control-methods -Location of plants and distributors -Transportation costs

What goes on with supply chain considerations in a business

violated perceptions of trust

What happens when there is a lack of value congruence in an organization

someone of particular office or rank

What is an example of a positional source

monitoring and disseminating

What is an example of information roles of a manager

building relationships, influencing

What is an example of interpersonal roles of a manager

deliberate strategy

What is an example of proactive strategy

emergent strategy

What is an example of reactive strategy

resources allocation, address opportunities

What is an examples of decisional roles of a manager

-Coordinate with downstream channel allies -Coordinate with suppliers

What is revamping of the value chain system to increase differentiation

1. Board of Governance 2. Top Managers 3. Middle Managers 4. First-Line Managers 5. Non-Managerial

What is the chain of accountability

to be that everyone can see the same picture in the same way that you have it in your mind

What is the goal when painting a picture for a vision

1. Social Competence 2. Social Power 3. Social Influence 4. Achieve Goal

What is the order to accomplish shared goals

TOP TO BOTTOM- 1. Consumer 2. Non-Managerial 3. First-Line Managers 4. Middle Managers 5. Top Managers

What is the upside-down pyramid order

developing a strategic vision, mission, and core values

What is typically STAGE #1 in developing and executing strategy

setting objectives

What is typically STAGE #2 in developing and executing strategy

crafting a strategy to achieve objectives and visions

What is typically STAGE #3 in developing and executing strategy

executing strategy

What is typically STAGE #4 in developing and executing strategy

monitoring developments, evaluating performance, and initiating corrective adjustments

What is typically STAGE #5 in executing and developing strategy

-the needs of the people -what the people value -what is going to get the people moving

What must you consider when imaging the invisible in a vision

1. Appeal to buyers in ways that sets a company apart from rivals 2. Staking out a market position that is not crowded by strong competitors

What should you aim to do with your strategy

Broad low-cost strategy

What strategy produces goods or services for a broad base of buyers at a lower cost than rivals

1. Acumen 2. Planning 3. Visioning 4. Courage

What things does strategy require in a business

-generic, vague, or run on statement -Complicated plan with detailed steps -Broad, bland language -Wishful fantasy

What vision statements SHOULD NOT contain...

-Meaningful -Simple and idealistic (focused) -Picture a desirable future -Emphasize distant ideological objectives -Challenging but realistic

What vision statements SHOULD contain...

1. Buyer needs and uses of product are diverse 2. There are many ways to differentiate 3. Few rivals are following similar approach 4. Technology change and is fast-paced

When does Broad Differentiation Strategy work the best?

1. Price competition among rival sellers is vigorous 2. Rival firm's products are essentially identical 3. Difficult to achieve product differentiation that creates value for buyers 4. Most buyers use product in the same way 5. Low switching costs for buyers

When does the Broad Low-Cost Strategy work well?

Department head, Supervisor, and Team Leaders

Who are the FIRST-LINE MANAGERS in a typical business

Department head, Supervisor, and Team Leader

Who are the FIRST-LINE MANAGERS of a typical nonprofit

Division Manager, Regional Manager, Plant Manager

Who are the MIDDLE MANAGERS in a typical business

Division manager, Regional manager, and Plant managers

Who are the MIDDLE MANAGERS in a typical nonprofit

CEO, President, and Vice President

Who are the TOP MANAGERS in a Typical Business

Executive director, President, Vice President Administrator

Who are the TOP MANAGERS in a typical nonprofit

board of directors

Who is the GOVERNANCE in a typical business

Board of Trustees

Who is the GOVERNANCE in a typical nonprofit

leadership

______ is about seeking adaptive and constructive change

management

______ is about seeking order and stability

manager

a person that uses influence to set and achieve goals

manager

a person who directly supervises, supports, and activates work effort to achieve performance goals of individuals, groups, and organizations

core values

a set of beliefs that guide the actions and behaviors of organizational members

reward power

ability to control the allocation of rewards values by others, or remove negative sanctions

acumen

ability to make good judgements and quick decisions

meaningful

appeal to the values, hopes, and ideals of members

organize

arranging tasks, people, and other resrouces to accomplish the work

legitimate power

associated with having status or formal job authority. There is mutual agreement that people in certain roles can request certain behaviors of others

positional power

based on position and authority

values

beliefs, traits, and behavioral norms that company personnel are expected to display in conducting the company's business and pursing its strategic vision and mission

financial objectives

communicate management's goals for financial performance

project objectives

defined in terms of successful completion of complex activities

positional sources

derived from formal roles you hold in an organization, a social system, or society

personal sources

derived from your unique personal attributes and skills that lead others to respect, idolize, adore, trust, like and/or view you as an expert and knowledgeable

organizational missions

describe the organizations current business operations and purpose

mission statement

describes the purpose of the organization

personal power

does not need to be associated with position

venture capitalists

individuals or companies that invest in new businesses in exchange for partial ownership of those businesses

low-cost leadership

industry's lowest cost producer

lead

inspiring people to work hard to achieve high performance

interpersonal

interacting with people

Broad Differentiation strategy

offers unique product attributes that a wide range of buyers find appealing and worth paying more for; can pursue from many angles

consumer market

people with unsatisfied wants and needs who have both the resources and willingness to buy

Proactive

planned initiative to improve the company's financial performance and secure a competitive edge

Deliberate Strategy

planned initiatives plus ongoing strategy elements continued from prior periods

angels

private individuals who invest their own money in potentially hot new companies before they go public

Reactive

responding to unanticipated developments and fresh market conditions

Value chain

set of activities that an organization carries out to create value for its customers

plan

setting performance objectives and deciding how to achieve them

competitive advantage

some type of edge over rivals in attracting buyers and competing with competitive forces

slogans

statements used to summarize and communication values in simple terms