Management 310 Exam 2

The ____________ is a portfolio strategy that managers use to categorize their corporation's businesses by growth rate and relative market share. This strategy helps them to decide how to invest corporate funds.

BCG Matrix

Innovation Streams

are patterns of innovation over time that can create sustainable competitive advantage and move through technological substitution

Tactical Plans

are plans created and implemented by middle managers. They specify how the company will use resources, budgets, and people over the next six months to two years to accomplish specific goals within its mission statement.

Experiential Approach

assumes that innovation is occurring within a highly uncertain environment and that the key to fast product innovation is to use intuition, flexible options, and hands-on experience to reduce uncertainty and accelerate learning and understanding

Planning is ultimately based upon

choosing a goal and developing a method or strategy to achieve that goal

Technological discontinuity

creates a significant breakthrough in performance or function.

Operational plans are defined as

day-to-day plans, developed and implemented by lower-level managers, for producing or delivering the organizations products and services over a 30-day to six-month period.

What is the first step for managing innovation during discontinuous change?

design iteration

Specialized Bicycle Components, Inc. introduced the first major production mountain bike in 1980. Two-thirds of its profits come form the same of mountain bikes. It is recognized worldwide for its ability to design and produce superior mountain bikes. This ability is its _____________.

distinctive competence

In a situational analysis, a strategic group is a group of _________________ that top managers choose for comparing, evaluating, and benchmarking their company's strategic threats and opportunities

other firms within an industry

Michael Porter's Five Industry Forces

1. character of rivalry 2. threat of new entrants 3. threat of substitute products or services 4. bargaining power of suppliers 5. bargaining power of customers determines an industry's overall attractiveness and its potential for long-term profitability

Two of the benefits of planning is how it

1. encourages people to engage in behaviors directly related to goal accomplishment 2. encourages people to work harder for extended periods

What are the two major approaches to tracking progress toward goal attainment?

1. gathering and providing performance feedback 2. setting proximal and distal goals

In order from beginning to end, the phases of a technology cycle within an innovation stream consist of

1. technological discontinuity 2. discontinuous change 3. dominant design 4. incremental change

The purpose of __________________ is to choose an industry-level strategy that is best suited to changes in the organization's external environment.

Adaptive Strategies

An organization is experiencing ______________ when it is reluctant to change strategies or competitive practices that been successful in the past. Problem strongly associated with top managers.

Competitive Inertia

It is appropriate to use ___________________ to manage innovation in more certain environments during periods of incremental change, in which the goals are lower costs and incremental improvements in the performance and function of the existing technological design. The goals are speed, lower costs, and incremental change of the dominant design. First step is planning,

Compression Approach

Neither Chile nor Peru has a mass-market cafe culture, but that fact has not stopped Starbucks from engaging in ______________ to determine how best to expand into those markets.

Decision Making

A manufacturer of suntan lotion could set a ________ goal to increase revenues by 8 percent over the next five years and a ________ goal to increase sales next June in Miami Beach by 3 percent.

Distal; Proximal

Specialized Bicycle Components, Inc. introduced the first major production mountain bike in 1980. Two-thirds of its profits come from the sale of mountain bikes. It is recognized worldwide for its ability to design and produce superior mountain bikes. This ability is its _________________

Distinctive competence - what a company can make, do, or perform better than its competitors

As a company that manufactures janitorial cleaning supplies tries to develop more environmentally-friendly products that can clean as well as its current ones, the company's manager must select among alternatives derived from oranges, parsley, lemon, or a combination of these ingredients. This is the __________ step in the rational decision-making model.

Evaluate each alternative

In the 1960s, Coca-Cola executives in Atlanta learned there was a bottler in the Colombian jungle that was bottling pirated Coke in dumped bottles. Since the soft drink company was at that time expanding globally and building its reputation on exacting production standards, Coke decided in the ___________ stage of the rational decision making process that it had to either bring some sort of legal action against the unauthorized bottler, ignore it, or buy it.

Generation of alternative courses of action

During the ___________ phase of a technology cycle, companies innovate by lowering the cost and improving the functioning and performance of the dominant design.

Incremental change

A ______________ is a statement of a company's overall goals that unifies company-wide efforts toward its vision, stretches and challenges the organization, and possesses a finish line and a time frame.

Mission

__________________ direct the behavior, efforts, and priorities of operative employees for periods ranging from one to six months.

Operational plans

A company has experienced ___________________________ when its form, quality, or condition changes over time.

Organizational Change

What is the first step in Rational Decision Making?

Problem Identification

What are the types of standing plans?

Procedures - are standing plans that indicate the specific steps that should be taken in response to a particular event. Policy - is a standing plan that indicates the general course of action that should be taken in response to a particular event or situation.

One method of weighing decision criteria uses ___________, which if a process where each decision is compared directly to every other criterion.

Relative comparisons

S. M. A. R. T. goals should be

S- Specific M- Measurable A- Attainable R- Realistic T- Timely

S. W. O. T.

S- strengths W- weaknesses O- opportunities T- threats is an assessment of the strengths and weaknesses in an organization's internal environment and the opportunities and threats in its external environment

Proximal goals are

Short-term or subgoals

The ____________________ is a type of operational plan that saves managers time because it is created once and then used repeatedly to handle frequently recurring events.

Standing Plan

Top management is responsible for developing long-term _________________ that make clear how the company will serve customers and position itself against competitors in the next two to five years.

Strategic Plans

A department store is experiencing greater than usual shrinkage, and management wants it stopped. Middle management decided to hire a security company to study the problem and develop the best plan for dealing with it. Middle management have implemented a ____________ plan.

Tactical

The development of CDs was a source of _________________ to companies in the recording industry just as cassette tapes and 8-track tapes had once been.

Technological Discontinuity

Seeds of Change is a company that markets certified organic food. A statement found at the marketer's Web site reads, "At Seeds of Change, we're committed to making delicious foods that are healthy for you as well as the planet." This statement is most likely the company's ___________ because it WILL NOT CHANGE OVER TIME.

Vision

Slack Resources are defined as

a cushion of extra resources that can be used with options-based planning to adapt to unanticipated changes, problems, or opportunities

Management by Objectives (MBO) is defined as

a four-step process in which managers and employees (1) discuss and (2) select goals, (3) develop tactical plans, and (4) meet regularly to review progress toward goal accomplishment. Focuses on shorter-term tactical planning.

Stability Strategy

a strategy that focuses on improving the way in which the company sells the same products or services to the same customers. Companies often choose this strategy when their external environment doesn't change much or after they have struggled with periods of explosive growth

Which of the following is a commonly used method for increasing goal commitment?

encouraging worker participation in goal setting and make goals public

The most popular approach to increasing goal commitment is

encouraging workers participation in goal setting

An ____________ is a resource that is impossible or extremely costly or difficult for other firms to duplicate.

imperfectly imitable

Which of the following is NOT part of the experiential approach to innovation?

initiative conversations

Organizational _____________ is the successful implementation of creative ideas in organizations.

innovation

How does a company benefit from planning?

intensified effort, persistence, direction, and creation of task strategies

Grand Strategy

is a broad corporate-level strategic plan used to achieve strategic goals and guide the strategic alternatives that managers of individual businesses or subunits may use.

Design iteration

is a cycle of repetition in which a company tests a prototype of a new product, improves on that design, and then builds and tests a new prototype

Options- Based Planning

is a major approach to planning which provides greater strategic flexibility and keeps options open by making small, simultaneous investments in many alternative plans

Technological Discontinuity

is a scientific advance that creates a significant breakthrough in performance or function

Vision Statement

is the company's purpose or reason for existing. Should be brief, enduring, inspirational, clear, and consistent with widely shared company beliefs and values

Technology

is the knowledge, tools, and techniques used to transform inputs into outputs

Discontinuous Change

is the stage of the technology cycle characterized by technological substitution and design competition

Coercion

is the use of formal power and authority to force others to change

Retrenchment Strategy

is to turn around very poor company performance by shrinking the size or scope of the business ex.) significant cost reductions, layoffs of employees, closing of poorly performing stores, offices, or manufacturing plants, or closing or selling entire lines or products or services

An ACTION PLAN

lists the specific steps, people, resources, and time period for accomplishing a goal

Creativity was needed to improve efficiency without raising costs at DaimlerChrysler. Over the last few years, the company has successfully implemented a creative engineering program that allows its plants to produce more than one type of car from the same assembly line. This successful change to a flexible manufacturing system is an example of _______________.

organizational innovation

Planning

plays a controversial role in management and may harm individual and organizational performance. It is no "silver bullet"

Corporate-level Strategy

refers to the overall organizational strategy that addresses the question "What business or businesses are we in or should we be in?" two major approaches: grand strategies and portfolio strategy

Which if the most specific type of standing plan?

rules and regulations

What type of planning would be used to create the festivities necessary to celebrate the 100-year anniversary of a furniture manufacturer? Also defined as plans that cover unique, one-time events.

single-use plans

What are the three kinds of operational plans?

single-use plans, standing plans, and budgets

Multifunctional Teams

speed innovation through early identification of new ideas or problems that would typically not have been generated until much later

An organization is experiencing ______________ when there is a discrepancy between upper management's intended strategy actually implemented by the lower levels of management. Problem more likely to be associated with middle and lower- level managers.

strategic dissonance

Top-Flite manufactures Strata golf balls and prices these balls at about three times what ordinary golf balls cost. The Strata ball sells exceptionally well because customers perceive its patented three-layer construction to improve handling and increase distance. The patent on these golfballs gives Top-Flite a _____________________

sustainable competitive advantage

Organizational Development

takes a long-range approach to change; creates change by educating workers and managers to change ideas, beliefs, and behaviors so that problems can be solved in new ways; assumes that top management support is necessary for change, emphasizes employee participation in all stages of the change is a philosophy and collection of planned change interventions

Which of the following is a component of a creative work environment that encourages creativity?

the development of challenging work, organizational encouragement, the granting of autonomy, the removal of organizational impediments

Strategic Reference Point

the strategic targets that managers use to measure whether a firm has developed the core competencies it needs to achieve a sustainable competitive advantage

How can a firm's resources provide a sustainable competitive advantage?

they must be rare, imperfectly imitable, and nonsubstitutable

Nonsubstitutable Resources

those that produce value or competitive advantage and have no equivalent substitutes or replacements

What are the three steps in the basic process of managing organizational change?

unfreezing - involves getting the people affected by the change to believe that change is needed change intervention - absence of a vision is one of the common mistakes during this stage refreezing -

Distal goals are

Long-term or primary