EXAM 2

Five forces model

1. Level of rivalry among organizations in an industry 2. Potential for entry into an industry 3. Power of large suppliers 4. Power of large customers 5. Threat of substitute products

Vertical Integration can benefit companies by...

1. Lowering the costs of making/selling products 2. By increasing the uniqueness of an organization's products 3. By making the organization's products special

The higher the barriers in the market:

1. The more difficult it is to enter the task environment 2. The fewer competitors there will be in the task environment

In large organizations, planning usually takes place at ___ levels of management

3

Mission Statement

A broad declaration of an organization's purpose that identifies the organization's products & customers & distinguishes the organization from its competitors

Rolling plan

A business-level plan that extends over several years, then is amended & updated annually based on external conditions

Strategy

A cluster of decisions about what goals to pursue, what actions to take, & how to use resources to achieve goals

Strategy formulation

The development of a set of corporate, business, & functional strategies that allow an organization to accomplish its mission & achieve its goals.

The advantage of licensing associated with opening up in a foreign country is...

The licenser does not have to bear the developmental costs.

Global outsourcing

The purchase of inputs from overseas suppliers to lower production costs

Globalization

The set of forces that cause nations to become interdependent

Globalization

The set of forces that causes nations to become interdependent

Free-Trade

This doctrine was predicated on the belief that countries had to agree to specialize in the goods and services that made the best use of its resources; as a result, it would be able to produce the goods most efficiently and offer best value to its customers

National Culture

This is defined as the set of values considered important by a society and the norms of behavior approved or sanctioned by that society, can be so strong that they impact how managers treat their employees and run their companies.

Accuracy

Use all available info, collect all available info

The principle corporate-level strategies that managers use to help a company grow & keep competitive

Vertical integration, International expansion, Concentration on a single industry, Diversification

Strategic Leadership

When the CEO & other top managers communicate to the rest of the managerial staff within the organization their vision for the company.

When a corporation sells the rights to use its name & expertise to a foreign company in exchange for a lump sum of money.....

franchising

Types of standing plans

Policies, SOPs, Rules

A major disadvantage of the vertical integration strategy is that it reduces the organizations ability to...

Respond to change

Heuristics

Rules of Thumb

Satisficing

Satisfactory option, 'it works'

Flexibility (effective plan)

Alter or change plans when necessary.

Market Structure

An organizational structure that is created to ensure that it serves the diverse needs of its customers

Matrix Structure

An organizational structure that managers use to match people & resources, or function & products at the same time is referred to as....

Continuity (effective plan)

Build & refine previous plans on an ongoing basis.

Unity (effective plan)

Have only 1 guiding plan

Adaptive Culture

Its values & norms propel momentum that initiates growth & change, as needed, to achieve organizational goals

How do managers typically distinguish time horizons?

Long-term plans, Intermediate-term plans, Short-term plans

A strategy that is customized & marketed to accommodate particular national conditions

Multi-domestic Strategy

Distributor

Organizations that help other organizations sell their goods or services to a customer

Distributor

Organizations that help other organizations sell their goods/services

Demographic Forces

Changes in specific characteristics that define populations such as age, gender, and sexual orientation

Accuracy (effective plan)

Collect & use all available information

One of the key managerial roles is to choose appropriate goals & courses of action that will help organizations achieve these goals is.....

Planning