Management Final including Chapter 14
Boston Control Group Matrix (BCG Matrix) Stars Question marks Cash cows Dogs
.Stars .Question marks .Cash cows .Dogs
Decision Making Process
1) Identify the problem 2) Identify the decision criteria 3) Allocation of weights to criteria 4) Development of alternatives 5) Analysis of alternatives 6) Selection of an alternative 7) Implementation of an alternative 8) Evaluation of decision effectiveness
In the BCG Matrix A business unit that exists in a low anticipated growth rate and a high market share is known as a
CASH COW
The three types of growth strategies
Concentration Integration Diversification
The distinction between a managerial and a non-managerial position is Controlling the work of others
Controlling the work of others
Opportunities and threats
Are outcomes from a study of the external environment
The dogs should be
As they have low market share in markets with low growth potential
The organization's major value-creating skills Capabilities and resources that determine the organizations competitive weapons
are Core competencies
first mover
first organizational to bring a product or service to the market and has the advantage of costs and learning benefits and has the disadvantage of risk of competitors imitating innovations
the organization gains control of its outputs by becoming its own distributor.
forward vertical integration
the dogs should be sold because
low market share
because managers cant possibly analyze all information on all alternatives
managers satisfice rather than maximize
when an organization attempts to combine with other organizations in different but associated industries
related diversification
When decision makers assess the likelihood Of an event based on how closely it resembles other events
representation bias
Video joint conferences
save time and money at the executive level
The white-waters metaphor
small raft navigating a raging river with uninterrupted white water rapids
Multidomestic corporations features
Decision making takes place at the local level Nationals are hired to run the company Marketing strategies are tailored to country's culture
Identification of a problem Identification of decision criteria Allocation of weights to criteria Development of alternative Analysis of alternative Selection of an alternative Implementation of the alternative Evaluation of decision effectiveness
Decision-making process
If HR planning shows a surplus of employees The management may want to reduce The organization's work force through
Decruitment
Studies of the factors that contribute
F. Studies of the factors that contribute 1. To organization performance 2. Have shown positive relationship 3. Between strategic planning and performance
Hugo Munsterberg (1900s)
Father of Industrial psychology Study of people of work
F. W. Taylor
Father of Scientific Management Steel companies Mid-vale steel company Rule of thumb (doing things like they always did) Industrial revolution set the stage for factory manufacturing Pig Iron Study Piece Rate Wage Plan Motivation was worker's efficiency One best way, which was his way "Work and responsibility should be equally divided between managers and workers."
TQM differs from other theories (total quality management)
High quality and low costs are both Seen as important to productivity Deming & Juran early pioneers Quality revolution during the 1980s and 1990s
Equity theory
Suggests that employees compare their inputs and outcomes The ratio of inputs to outcomes of relevant others (The amount of work I do for my salary compared to what work others do for their salary)
Hygiene Factors (extrinsic)
Supervision Company policy Relationship with supervisor Working conditions Salary Relationship with peers Personal life Relationship with subordinates Status Security
The EU currently consists of 27 countries
Switzerland, Norway, and Ireland are not members
Fallacy of composition
(what is true of the parts, is also true of the whole)
Fallacy of division
(what is true of the whole is also true of the parts)
Mechanistic
Stresses standard job specialties To promote high formalization
Adam Smith
"Wealth of Nations" (1776) Division of Labor (specialization - assembly line) Pin Factory (10 times increase)
Avoid
"halo effect"
Post hoc ergo propter hoc
(Latin: "after this, therefore because of this
Murphy's law
(always have a backup plan for any procedure or subordinate)
Ad populum
(appeal to the people)
Ad Hominem
(attacking the person and not the logic of the view)
Cost Benefit Analysis
(does the change cost you more than the benefit?)
Ad Verecundiam
(using an outside authority as the final and only source)
Efficiency refers to:
1. The relationship 2. between inputs 3. & outputs(elasticity)
The difference between multidomestic and global economy
1. multidomestic making takes place at the local level 2. Global centralized management in home country
In the BCG Matrix A dog does not consume or produce much cash and holds
A dog does not consume or produce much cash and holds little or no improved performances
Rational decision making
A type of decision making in which choices are logical and consistent and maximize value
The EU covers
Border controls, taxes, and subsidies Nationalistic policies and travel Employment, investment, and trade
When managers circumvent the rational decision making model and find ways to satisfice
Bounded rationality
Example of inputs
Effort Experience Education
United Airlines were to merge with Northwest Airlines
Example of horizontal integration
Core competences
Exp: Starbucks-gourmet coffee drinks BMW-production of sporty luxury automobile 919. K. Core competences
Managers should "milk" cash cows
For as much as they can limit any new investment in them and use the large amounts of cash generated to invest in stars and question marks
Max Weber
Formal selection (technically qualified) Division of labor Detailed defined hierarchy Detailed rules and regulations
The three main types of corporate strategies
Growth Stability Renewal
Growth through concentration Is achieved when an organization chooses to grow by increasing its own business operations
Growth through concentration
The beginning point for any HR planning process is The examination of the current HR status by making an
HR inventory
Managers should know pending legislation that might affect the organization
In analyzing the environment,
The mission of the firm answers the question- what is our reason for being?
In the first step of strategic management
An example Of a core competency of a firm
Of a core competency of a firm is communicating with customers in their own languages worldwide
In recent years, there has been a movement to
Make organizations more flexible and more responsible through decentralization
In analyzing the environment
Managers should know pending legislation that might affect the organization
In the US, a company that meets Federal pollution control standards Does not discriminate in hiring, promotions, and pay is
Meeting its social obligation and nothing more
The acceptable standards of expectations that are shared by the group's members Very powerful in influencing an individual's performance
Norms (Moré)
Managing generational differences
One of the major issues that is a major Influence on manager's jobs today is
Are outcomes from a study of the external environment
Opportunities and threats
Chester Barnard (1930s)
Organizations were open systems Communicate and stimulate
Maslow's hierarchy of needs
Physiological needs: need for food, drink, shelter, etc. Safety needs: need for security and protection Social needs: belonging, friendship Esteem needs: status, recognition Self-actualization needs: achieving one's potential
A type of decision making in which choices are logical and consistent and maximize value
Rational decision making
When an organization attempts to combine with other organizations in different but associated industries
Related diversification
SWOT
S - strength W - weaknesses O - Opportunities T - Threats
. The merging of the analysis of the internal and external factors influence the organizations strategies. is known as S.W.O.T. analysis
S.W.O.T. analysis
The type of decision making In which the solution is considered "good enough"
Satisficing
MBTI (Meyers-Briggs Type Indicator) identifies traits that best describe personality
Social interaction: extrovert (dominant), introvert (shy) Preference for gathering data: sensing (like routine), or intuitive (like solving new problems) Preference for decision making: feelings (relate to people) or thinking (unemotional) Style of making decisions: perceptive (flexible, tolerant) or judgmental (good planner, make decisions quickly)
Heavy investments in stars will help
Take advantage of the market's growth and help maintain high market share
Organizational development
Techniques to change people and the quality of interpersonal work
Norms ( moré)
The acceptable standards of expectations that are shared by the group's members Very powerful in influencing an individual's performance Norm, moré example Bank employee who noticed states from Other employee because He does not wear conservative work attire
The desire to reduce dissonance is determined by Importance, influence and rewards
The cognitive dissonance theory
The cognitive dissonance theory
The desire to reduce dissonance is determined by Importance, influence and rewards
The "first mover"
The first organization to bring a product or service to the market and had the advantage of costs and learning benefits and had the disadvantage of risk of competitors imitating innovations
SWOT analysis
The merging of the analysis of internal and external factors influencing the organization's strategies
In the first step of strategic management
The mission of the firm answers the question- what is our reason for being?
In forward vertical integration
The organization gains control of its outputs by becoming its own distributor
Core competencies are
The organization's major value-creating skills Capabilities and resources that determine the organizations competitive weapons
Growth Stability Renewal
The three main types of corporate strategies
Concentration Integration Diversification
The three types of growth strategies
Satisficing
The type of decision making In which the solution is considered "good enough"
Continual process consistent with uncertain and dynamic environment
The white-waters metaphor
The union agents cannot legally bind the union on major decisions.
There must be a vote by union workers
Executives cannot legally bind a company on major decisions
There must be a vote of stockholders. If there is not a time to convene a stockholder's meeting, a vote can be done by electronic proxy
Core Competences
Things a firm does extremely well gives then advantage over competition
Horizontal integration
When an organization attempts to combine with other organizations in the same industry
Representation bias
When decision makers assess the likelihood Of an event based on how closely it resembles other events
An organization's financial, physical, human, and intangible assets That are used to develop, manufacture and deliver products or services to its customers is
called its resources
core competencies major value creating skills
capabilities and resources that determine the organizations competitive weapons
Never use email for anything which is
confidential
Studies of the factors that contribute to organizational performance
have shown positive relationship between strategic planning and performance
Keep communication open (3-way street)
if not a grapevine, will always operate (informal)
Growth through concentration
is achieved when an organization chooses to grow by increasing its own business operations
Avoid samples that are small
not stratified
Studies of the factors that contribute To organizational performance have shown
positive relationship between strategic planning and performance
In the BCG Matrix A business unit that exists in a high anticipated growth rate and a low market share is known as a
question mark ???????????