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