MCE Test #2
strategic objectives
lay out target outcomes concerning a company's market standing, competitive positions, and future business prospects
value statement
list of key values or ideological themes considered important for organization
control
measuring performance and taking action to ensure desired results
effectiveness
meeting the objective (END goal)
emergent strategy
new strategy elements that emerge as managers react adaptively to changing circumstances
referent power
occurs when others idolize, identify with, and/or are inspired by the person
strategy
the coordinated set of actions that managers take to outperform organizations competitors and achieve superior success
management
the process of getting things done effectively and efficiently, with and through people
accountability
the requirement of one person to answer to a higher authority
enacted values
the values you see a company actually enacting/practicing
decisional
using information to make decisions
efficiency
using the smallest amount of resources possible (the MEANS to get to the end)
espoused values
what an organization says it values
quarterly performance audits
what are some examples of controlling for MIDDLE MANAGERS
to convert the vision and mission into specific performance targets
what is the purpose of an objective in an organization
value congruence
when espoused values and enacted values align
sustainable
when the advantage persists despite the best efforts of competitors to match or surpass
successful diffrentiation
allows firms to command a premium price for its products; increase unit sales; and gain buyer loyalty
productivity
amount of output generated given the amount of input
objectives
an organizations specific performance targets (the specific results management wants to achieve)
visions
creates an idealized future state for your organization that everyone is motivated to pursue wholeheartedly
crowdfunding
donation based or debt-investment (peer-to-peet lending)
informational
exchanging and processing information
strategic/Financial objectives
tangible outcomes or results to be achieved
What are two basic avenues for competitive advantage
1. provide product or service that buyer values more highly than others (higher perceived value) 2. Produce product or service more efficiently (lower costs)
1. Org. products/services 2. Constituent group or market the org. serves 3. Constituent needs that org. seeks to satisfy 4. unique identity of the org.
A mission statement clearly states the:
coercive power
Ability to harm, penalize, or punish someone
expert power
Capacity to influence others by possessing knowledge or skills that they value. Based on a perception of competence
Operations
Deciding on logistics is what part of business
a robber with a gun demanding your money
Example of coercive power
Einstein
Example of expert power
police officers
Example of legitimate power
celebrities and social media influencers
Example of referent power
Professor can reward with grades
Example of reward power
financial management
Examples of budgets
1. An X percent increase in annual revenues 2. Profit margins of X percent
Examples of financial objectives
-Angels -Crowdfunding -Venture Capitalists
Examples of individual investors
1. Winning X percent market share 2. Achieving lower overall costs than rivals
Examples of strategic objectives
individuals or small teams
Front-Line Managers focus on ....
vision is larger and more encompassing
How are visions different from slogans
they more clearly explain relative priority, how they are interrelated, and how they will be expressed
How are visions different from value statements
1. imagine the invisible 2. paint the picture 3. engage others 4. test your vision
How can you create a clear and compelling vision
-Let them know exactly how they fit in -Create freedom -Give them something to talk about
How do you get others to engage in your vision
has a long-term time perspective; should be more enduring
How is vision different form project objectives
focuses on values, ideological themes, and idealized future states (not economic outcomes)
How is vision different from strategic/financial objectives
it tells us what these activities mean to people (EX: why it is worthwhile)
How is vision different than the mission statement
4-8
How many values does an organization usually have
Accounting
Keeping records is which part of business
marketing
Knowing your customers is what part of business
influence processes
Management and leadership are what types of processes that move a group of individuals towards accomplishing a shared goal
human resources
Managing your employees is what part of business
groups, departments, or divisions
Middle Managers focus on...
specific; quantifiable or measurable
Objectives must be _______ and ___________
-think analytically -work with abstract ideas -solve complex problems
People who have conceptual skills have the ability to:
-Work well with others -relate to people -develop social capital -build and manage relationships
People who have human skills have the ability to:
-use expertise -perform tasks with proficiency -apply strong skill sets to operations
People who have technical skills have the ability to:
1. Easily copied strategies 2. Low value in unique attributes 3. Overspending on differentiation 4. Trivial improvements 5. Over-differentiating (EX: over-designing) 6. Charging too high of a premium
Pitfalls to avoid with the Broad Differentiation Strategy...
-Selling direct to consumers -Streamlining operations -Reducing materials-handling and shipping costs
Revamping options of the value chain system to create lower costs...
meaningless change and chaos
Strong leadership with no management leads to ________ in organizations
stagnant, inflexible
Strong management with no leadership leads to ________ organizations
Managers
These job requirements are for what position? -Set objectives for individuals, groups, and organizations -Direct and oversee the activities of others -May have work duties not related to overseeing others
non-managerial employees
These jobs requirements are for what position? -Work directly on tasks -Not responsible for overseeing others' work
entire organizations
Top Managers focus on ....
Small Business Administration (SBA)
US government agency that advices and assists small business by providing management, financial advice, and loans
focused; general
Visions in complex systems are... _____ enough to guide decisions and actions AND _____ enough to allow innovation and creativity in strategies for attaining it
-Does not need to be associated with position (personal power) -Establishing vision -Aligning people -Motivating and inspiring
What are some characteristics about LEADERS
-Based on position and authority (positional power) -Planning and budgeting -Organizing and staffing -Controlling and problem solving
What are some characteristics about MANAGERS
Annual employee performance review
What are some examples of controlling for FRONT-LINE MANAGERS
annual organizational performance analysis
What are some examples of controlling for TOP MANAGERS
relationship building
What are some examples of leading for FRONT-LINE MANAGERS
Establishing a sense of "we-ness"
What are some examples of leading for MIDDLE MANAGERS
creating a clear and compelling vision; creating culture
What are some examples of leading for TOP MANAGERS
Distribution of resources among departments
What are some examples of organizing for MIDDLE MANAGERS
organizational structure
What are some examples of organizing for TOP MANAGERS
day-to-day tasks of employees
What are some examples of organizing for a FRONT-LINE MANAGER
daily employee sales goals
What are some examples of planning for a FRONT-LINE MANAGER
quarterly department production goals
What are some examples of planning for a MIDDLE MANAGER
company long-term strategic goals
What are some examples of planning for a TOP MANAGER
1. Getting carried away with price cutting 2. Relying on easily replicable cost reduction approaches 3. Becoming too fixated on cost reduction 4. Not spending when needed
What are some pitfalls you should avoid while using the Broad Low-cost strategy
Capital, good ideas, planning, information management, budgets, accounting, marketing, good employee relations, overall managerial knowhow
What are some things that all organizations need
1. Lower buyers' overall costs 2. Incorporate tangible features that increase satisfaction 3. Incorporate intangible features that increase satisfaction in noneconomic ways 4. Signal the value (EX: high prices, fancy packaging, high luxury facilities)
What are the avenues for delivering superior value
1. Top Managers 2. Middle Managers 3. First-Line Managers 4. Team Leaders
What are the different levels of management
1. Broad low-cost strategy 2. Broad differentiation strategy 3. Focused low-cost strategy 4. Focused differentiation strategy 5. Best-cost strategy
What are the five generic competitive strategies
Plan, organize, control, and lead
What are the four functions of management
-Personal, family, or business associates -Small Business Administration -Individual Investors
What are the potential sources of capital when financing your business
Operations, service
What are the primary value chains
1. Planning your business 2. Financing your business 3. Knowing your customers (marketing) 4. Managing your employees (human resources) 5. Deciding on logistics (operations) 6. Keeping records (accounting)
What are the steps for managing a small business
Infrastructure, HRM
What are the support value chains
1. Perform value chain activities more cost-effectively than rivals 2. Revamp the firm's overall value chain to eliminate or bypass some cost-producing activities
What are the two avenues for achieving cost advantage
1. Broad or narrow market 2. Lower costs or differentiation
What are the two biggest factors of the five generic competitive strategies
1. Lower price for higher market share of price sensitive consumer 2. Increase efficiency for higher profit margin
What are the two options for low-cost advantage?
1. Managing the value chain to create differentiating attributes 2. Revamp the firm's overall value chain to increase differentiation
What are the two ways to achieve differentiation
referent power and expert power
What are the types of personal sources of social power
Legitimate power, reward power, and coercive power
What are the types of positional sources of social power
1. Informational 2. Interpersonal 3. Decisional
What are three roles of a manager
Conceptual, Human, and Technical
What are three skills that managers need
-Think about what they're thinking about -Carefully choose your signs, symbols, and language -Consider length -Relentlessly repeat
What are tips and tricks to painting the picture for a vision
positional sources, and personal sources
What are types of social powers
-deciding labor needs -recruiting and selecting the right people -training and development for growth -rewards and culture for retention -motivating for performance
What do you need to do in Human Resources, managing your employees in a business
-Manufacturing plans -Supply chain considerations
What do you need to do in Operations, deciding on logistics in a business
-Daily sales, expenses, and profits -Inventory control, customer records, and payroll
What do you need to do with Accounting, keeping records in a business
S- Specific M- Measurable A- Attainable R- Relevant T- Time Based
What does SMART goals stand for?
Fatigue, sleepiness= yellow; low arousal, low performance (LEFT on curve) Optimal Arousal= maximum height, medium arousal, top performance (MIDDLE on curve) Strong stress, anxiety, impaired performance= high arousal, low performance (RIGHT on curve)
What does Yerkes-Dodson's Law state?
-Tax planning and financial forecasting -Choosing sources of financing and wiring requests for funds
What does accounting in a business help with
direction and guidance
What does strategy in a business provide
-Consumer market -Knowing your customers and adapting quickly to ever-changing demands -You must listen>!
What goes along with Knowing your customers and marketing in businesses
-Mission, vision, and values -Strategic, and financial objectives
What goes into planning your organization
-Plant size -Machinery required -Production capacity
What goes on with manufacturing plans in a business
-Inventory and inventory control-methods -Location of plants and distributors -Transportation costs
What goes on with supply chain considerations in a business
violated perceptions of trust
What happens when there is a lack of value congruence in an organization
someone of particular office or rank
What is an example of a positional source
monitoring and disseminating
What is an example of information roles of a manager
building relationships, influencing
What is an example of interpersonal roles of a manager
deliberate strategy
What is an example of proactive strategy
emergent strategy
What is an example of reactive strategy
resources allocation, address opportunities
What is an examples of decisional roles of a manager
-Coordinate with downstream channel allies -Coordinate with suppliers
What is revamping of the value chain system to increase differentiation
1. Board of Governance 2. Top Managers 3. Middle Managers 4. First-Line Managers 5. Non-Managerial
What is the chain of accountability
to be that everyone can see the same picture in the same way that you have it in your mind
What is the goal when painting a picture for a vision
1. Social Competence 2. Social Power 3. Social Influence 4. Achieve Goal
What is the order to accomplish shared goals
TOP TO BOTTOM- 1. Consumer 2. Non-Managerial 3. First-Line Managers 4. Middle Managers 5. Top Managers
What is the upside-down pyramid order
developing a strategic vision, mission, and core values
What is typically STAGE #1 in developing and executing strategy
setting objectives
What is typically STAGE #2 in developing and executing strategy
crafting a strategy to achieve objectives and visions
What is typically STAGE #3 in developing and executing strategy
executing strategy
What is typically STAGE #4 in developing and executing strategy
monitoring developments, evaluating performance, and initiating corrective adjustments
What is typically STAGE #5 in executing and developing strategy
-the needs of the people -what the people value -what is going to get the people moving
What must you consider when imaging the invisible in a vision
1. Appeal to buyers in ways that sets a company apart from rivals 2. Staking out a market position that is not crowded by strong competitors
What should you aim to do with your strategy
Broad low-cost strategy
What strategy produces goods or services for a broad base of buyers at a lower cost than rivals
1. Acumen 2. Planning 3. Visioning 4. Courage
What things does strategy require in a business
-generic, vague, or run on statement -Complicated plan with detailed steps -Broad, bland language -Wishful fantasy
What vision statements SHOULD NOT contain...
-Meaningful -Simple and idealistic (focused) -Picture a desirable future -Emphasize distant ideological objectives -Challenging but realistic
What vision statements SHOULD contain...
1. Buyer needs and uses of product are diverse 2. There are many ways to differentiate 3. Few rivals are following similar approach 4. Technology change and is fast-paced
When does Broad Differentiation Strategy work the best?
1. Price competition among rival sellers is vigorous 2. Rival firm's products are essentially identical 3. Difficult to achieve product differentiation that creates value for buyers 4. Most buyers use product in the same way 5. Low switching costs for buyers
When does the Broad Low-Cost Strategy work well?
Department head, Supervisor, and Team Leaders
Who are the FIRST-LINE MANAGERS in a typical business
Department head, Supervisor, and Team Leader
Who are the FIRST-LINE MANAGERS of a typical nonprofit
Division Manager, Regional Manager, Plant Manager
Who are the MIDDLE MANAGERS in a typical business
Division manager, Regional manager, and Plant managers
Who are the MIDDLE MANAGERS in a typical nonprofit
CEO, President, and Vice President
Who are the TOP MANAGERS in a Typical Business
Executive director, President, Vice President Administrator
Who are the TOP MANAGERS in a typical nonprofit
board of directors
Who is the GOVERNANCE in a typical business
Board of Trustees
Who is the GOVERNANCE in a typical nonprofit
leadership
______ is about seeking adaptive and constructive change
management
______ is about seeking order and stability
manager
a person that uses influence to set and achieve goals
manager
a person who directly supervises, supports, and activates work effort to achieve performance goals of individuals, groups, and organizations
core values
a set of beliefs that guide the actions and behaviors of organizational members
reward power
ability to control the allocation of rewards values by others, or remove negative sanctions
acumen
ability to make good judgements and quick decisions
meaningful
appeal to the values, hopes, and ideals of members
organize
arranging tasks, people, and other resrouces to accomplish the work
legitimate power
associated with having status or formal job authority. There is mutual agreement that people in certain roles can request certain behaviors of others
positional power
based on position and authority
values
beliefs, traits, and behavioral norms that company personnel are expected to display in conducting the company's business and pursing its strategic vision and mission
financial objectives
communicate management's goals for financial performance
project objectives
defined in terms of successful completion of complex activities
positional sources
derived from formal roles you hold in an organization, a social system, or society
personal sources
derived from your unique personal attributes and skills that lead others to respect, idolize, adore, trust, like and/or view you as an expert and knowledgeable
organizational missions
describe the organizations current business operations and purpose
mission statement
describes the purpose of the organization
personal power
does not need to be associated with position
venture capitalists
individuals or companies that invest in new businesses in exchange for partial ownership of those businesses
low-cost leadership
industry's lowest cost producer
lead
inspiring people to work hard to achieve high performance
interpersonal
interacting with people
Broad Differentiation strategy
offers unique product attributes that a wide range of buyers find appealing and worth paying more for; can pursue from many angles
consumer market
people with unsatisfied wants and needs who have both the resources and willingness to buy
Proactive
planned initiative to improve the company's financial performance and secure a competitive edge
Deliberate Strategy
planned initiatives plus ongoing strategy elements continued from prior periods
angels
private individuals who invest their own money in potentially hot new companies before they go public
Reactive
responding to unanticipated developments and fresh market conditions
Value chain
set of activities that an organization carries out to create value for its customers
plan
setting performance objectives and deciding how to achieve them
competitive advantage
some type of edge over rivals in attracting buyers and competing with competitive forces
slogans
statements used to summarize and communication values in simple terms
