MGT 300 exam 2

SMART Goals and definition

Specific: stated in specific rather than vague terms Measurable: quantifiable Attainable: challenging but realistic Results-Orientated: support organizations vision Target dates: deadline dates to be obtained

TESLA example of SWOT

Strengths: brand recognition, innovation, growing sales Weaknesses: high cost, limited dealer, high competition Opportunities: growing demand, supply chain in Asia, more low priced models Threats: competition, legal and regulatory troubles

define horizontal structure

Teams or workgroups, either temporary or permanent, are used to improve collaboration and work on shared tasks by breaking down internal boundaries.

define the hollow/networks structure

The organization has a central core of key functions and outsources other functions to vendors who can do them cheaper or faster.

3 types of planning for 3 levels of management

Top management is often engaged in strategic planning; middle management is often engaged in tactical planning, and first-line management is often engaged in operational planning.

Define Cokes values

Values: compass for our actions and describe how we behave in the world leadership collaboration integrity accountability passion diversity quality

Define Cokes vision statement

Vision: describing what we need to accomplish in order to continue achieving sustainable quality growth 1. people 2. portfolio 3. partners 4.planet 5. profit 6. productivity

define modular structure

a firm assembles product chunks, or modules, provided by outside contractors

Defintion and purpose of Planning

Definition: 1. Setting goals and deciding how to achieve them 2. Coping with uncertainty by formulating future courses of action to achieve specified results 3. plan: document outlines how goals are going to be met Purpose: Business Plan and Business Model

Definition and purpose of strategy and strategic plan.

Definition: a large scale action plan that sets the long-term goals and direction for an organization. Purpose: represents an "educate guess' about what must be done in the long term for survival of organization. Generally reconsidered every year due to ever-changing business conditions

adhocracy culture

- External focus and flexible - Creates innovative products by being adaptable, creative, and quick to respond to the marketplace

Clan culture

- internal focused and flexibility - Encourages collaboration among employees - Emphasis on teamwork and individual initiative

Define vision statement

1. A clear sense of future and actions needed to get there 2. What do we want to become? 3. Where do we want to go?

Define the levels of strategy

1. Corporate Level Strategy: focus on organization and executives referred to as "C-Suite" 2. Business Level Strategy: focus on individual business units or product/service lines and managers focus on issues aimed at decisions under consideration from corporate level 3. Functional level strategy: applies to function departments and functional managers focus on tactical issues

Define Porter's four competitive strategies

1. Cost leadership strategy: keep cost, hence prices of product/service below those of competitive and target a wide market 2. Differentiation strategy: offer unique and superior value of products compared to those of comeptitors and target a wide market 3. Cost focus strategy: keep cost of product below those of competitors and target narrow market 4. Focused differentiation strategy: offer products that are unique and super value compare dot this elf ocmpetitiros and target a narrow market.

what are organic organizations

1. Decentralized hierarchy of authority 2. Few rules and procedures 3. Shared tasks 4. Informal communication 5. Many teams or task forces 6. Wider span of control, flat structures

Relationship of the flow of organizational culture

1. Drivers of culture 2. Organizational culture 3. Organizational structure & internal processes 4. Group & social processes 5. Work attitudes & behaviors 6. Overall performance

What is the planning and strategic management process?

1. Establish the mission and vision and values 2. Assess the current reality 3. Formulate the grand strategy & strategic, tactical and operational plans 4. Implement the strategy 5. Maintain strategic control

what is the strategic management process

1. Establish the mission, vision and values statements 2. Assess the current reality 3. Formulate corporate, business and functional strategies 4. Execute the strategies 5. Maintain strategic control

what is the 4 step process of motivating employees?

1. Jointly set objectives for employee 2. Mangers develop action plans 3. Jointly review employees performance 4. Managers make a performance appraisal and reward employee

What is the planning/control cycle?

1. Make a plan 2. Carry out the plan 3. Control the direction by comparing the results with the plan 4. Control the direction in two ways: a. correcting deviations in the plan being carried and return to step 2 or; b. improve future plans to step 1

What is the role of strategic planning in terms of providing direct, momentum and encouraging new ideas?

1. Managers focus on whatever is in front of them 2. Managers can be preoccupied with day-to-day pressures, organization can lose momentum 3. Unleash the spirit of strategy innovation: ability to reinvent of competition within existing industries

What are the fundamentals of planning?

1. Mission statement 2. Vision Statement 3. Values Statement 4. Strategic planning: done by top managers for 1-5 years 5. Tactical planning: done by middle managers for 6-24 months 6. Operational planning: done by first-line managers for 1-52 weeks

How do you maintain strategic control

1. Monitor execution of strategy and taking corrective action 1. Keep track by: engage people, keep it simple, stay focused, and keep moving

what are the 3 types of objected used in Management by objectives (MBO)

1. Performance objectives: express as outcome 2. Behavioral objectives: express as behaviors needed to achieve and outcome 3. Learning objectives: express in terms of acquiring knowledge or competencies

why are planning and strategic management important?

1. Provide direction and momentum 2. encourage new ideas 3. Develop a sustainable competitive advantage

Define short term goals

1. Tactical/operational goals 2. span 12 months and connect to strategic goals known as means-end chain

what are Porter's 5 competitive forces?

1. Threat of new entrants 2. Bargaining power of suppliers 3. Bargaining power of buyers 4. Threat of substitute products or services 5. Rivalry among competitors

How to use VRIO to assess competitive potential?

1. Value: Is it valuable? 2. Rarity: is it currently controlled by only a few firms or no other firms? 3. Imitability: is it costly for other firms to imitate? 4. Organization: is it organized to exploit the resource or capability?

Define Value Statement

1. What the company stands for: core priorities, the values in employees embody, and what its products contribute to the world 2. What values do we want to emphasize?

Define operating plan

1. breaks long-term output into short-term targets or goals 2. Turns strategic plans into action short term goals and action plans

what are mechanistic organizations

1. centralized hierarchy of authority 2. many rules and procedures 3. Specialized tasks 4. Formalized communications 5. few teams or task forces 6. narrow span of control, taller structures

Define grand strategy

1. comes after assessing the current reality 2. Strategy formulation: choosing different strategies and altering them to best fit the organizations needs 3. Translate broad mission and vision statement sin to corporate strategy which explains how organization missions is to be accomplished.

7 common elements of organization

1. common purpose 2. coordinated effort 3. division of labor 4. hierarchy of authority 5. span of control 6. authority 7. centralized

Define action plan

1. defines the course of action (tactics) needed to achieve a stated goal 2. Contains a projected date for completing the desired activity for each tactic

How do you assess the current reality?

1. determine whats working and whats not 2. See what can be changed to increase efficiency and effectiveness 3. Tools: competitive intelligence, SWOT analysis, forecasting, benchmarking, Porter's model for industry analysis

Define mission statement

1. express purpose of organization 2. what is our reason for being? 3. Why are we here?

12 ways to change organization culture

1. formal statements: mission, vision, values 2. Language, slogans, saying and acronym 3. Rites and rituals 4. Stories, legends and myths 5. Leader reaction to crises 6. Role modeling, training and coaching 7. physical design 8. rewards, titles, promotions and bonuses 9. Establishing goals and performance criteria 10. Through measurable and controllable activities 11. By changing organization structure 12. Using organizational systems and procedures

Define organizational structure

1. formal system of task and reporting relationships that coordinates and motivates an organizations members so that they can work together to achieve the goal 2. Concerned with who reports to whom and who specializes in what work

What drives an organizational culture?

1. founder's values 2. industry and business environment 3. national culture 4. organization's vision and strategies 5. behavior of leaders

what is the importance of deadlines?

1. help concentrate the mind 2. help ignore extraneous matters in favor of whats important 3. provide mechanism for giving ourselves feedback

what are the 3 levels organizational culture?

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

Define strategy implementation

1. putting strategic plans into effect 2. Dealing with roadblocks within the organizations structure and culture and seeing if the right people and control systems are available to execute the plans 3. Essential for success and is considered the greatest challenge for managers

Define basic assumption

1. represent core values of organization 2. those taken for granted and highly resistant to change 3. frequently hard to articulate

Define long term goals

1. strategic goals 2. span 1-5 years and focus on achieving strategies identified in a company plan

what are the 3 key principles for strategic positioning?

1. strategy is creation of unique and valuable position: few needs=many customers, broad needs= few customers, broad needs= many customers 2. strategy requires trade-offs in competing 3. involves creating a fit among activities

Porter's five competitive forces for airlines

1. threat of new entrant: then (low barriers) now (low barriers but consolidation allows airlines to dominate 2. Bargaining power of supplies: then (engine manufac., labor unions), now (airlines got give backs from labor unions reducing labor cost) 3. Bargaining power of buyers: then (cheap fares and convenience scheduled), now (cut unprofitable routes, increase prices, unbundle any services) 4. Threat of substitute products or services: then(car, train, ship) now (same but more security) 5. Rivalry among competitors: then(intense on price) now (less intense, mostly on price)

what three things must happen for MBO goal setting to be successful?

1. top management is committed 2. goals must be applied organization wide 3. goals must cascade (linked consistently)

What is a VRIO model?

Framework for analyzing a resource or capability to determine its competitive strategic potential by answering four questions about its value, rarity, imitability, and organization.

Define Cokes Mission statement

Mission: enduring Purpose: serves as the standard against which we weigh our actions and decisions 1. To refresh the world 2. To inspire moments of optimism and happiness 3. To create value and make a difference

Define SWOT analysis

Monitor organizations internal/external environments to detect signs of opportunities and threats Strengths Weakness Opportunities Threats

What is the relationship between goal difficulty and performance?

Challenging is between goal difficulty and performance is when there are committed individuals who are working at capacity.

Define Matrix Structure

Combines functional and divisional chains of command in a grid so that there are two command structures: vertical and horizontal

Describe the linkage between environment and organizational structure

Contingency design is the process of fitting the organization to its environment 1. environment: mechanistic virus organic 2. Environment: differentiation versus integration 3. link between strategy, culture, and structure hotels often have mechanistic designs

Define sustainable competitive advantage

Organization is able to get and stay ahead in four areas 1. Responsive to customers 2. innovating 3. quality 4. effectiveness

Describe the link between planning, strategy and strategic management.

Planning (first of the 4 functions of management process) involves setting goals and decided how to achieve them while ensuring the plans are linked to the business strategy.

what is effective strategy?

attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company created by Michael Porter

Define simple structure

authority is centralized in a single person with few rules and low work specialization small firms all over the country are organized this way owner and administrative assistant

define organization chart

box-and-lines illustration showing the formal lines of authority and the organizations official positions or work specialization two types: 1. vertical hierarchy of authority: who reports to whom 2. horizontal specialization: who specializes in what work

Define exposed values and enacted values

exposed: stated values and norms preferred by an organization enacted:values and norms actually exhibited

market culture

external focus and stability driven by competition and a strong desire to deliver results perform or die

hierarchy culture

internal focus and stability formalized structured work environment aimed at achieving effectiveness through a variety of control mechanisms; very regimented issue with silos and lack of coordination

Definition of strategic management

involves managers from all parts of the organization in the formulation and the implementation of strategies and strategic goals

Define divisional structure

people with diverse occupational specialties are put together in formal groups by similar products, customers or geographic regions

Define functional structure

people with similar occupational specialties are put together in formal groups

Define competing values framework

provides a way for managers to understand, measure and change organization culture. 4 types: 1. clan: collaborate 2. adhocracy: create 3. market: compete 4. hierarchy: control horizontal dimensions: internal/ external focus vertical dimensions: flexibility/ stability

Define Observable artifacts

psychical manifestations such as manner of dress, awards, myths and stories visible behavior exhibited by managers and employees

Define the impact of culture person fit

reflects the extent to which your personality and values match the climate and culture in an organization

How do employees learn culture?

symbols, stories, heroes, rites and rituals, organizational socialization

Define competitive advantage

the ability of an organization to produce goods or services more effectively than competitors do, thereby outperforming them

Define organizational culture

the set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments