MGMT CH 7-13

Managers make goals that are ____________________, ________, __________, ____________, and ______________

1)Specific and Measurable 2) Cover key result areas 3) challenging but realistic 4)have a defined time period 5) linked to rewards

Certainty

Situation in which all the information the decision maker needs if fully available

Goals begin with _________, followed by ___________, then _____________.

1)Broad Strategic Goals 2)more specific tactical goals 3)operational goals

Operational Goals

Specific, measurable results that are expected from departments, work groups, and individuals

Operational Plans

Specify the action steps towards achieving operational goals and support tactical activities.

Ambiguity

a condition in which the goals to be achieved or the problem to be solved in unclear, alternative are hard to define, and information about outcomes is unavailable. Hardest decision situation

Four elments of competitve advantage are the company's:

target customer core competencies synergy value

When making a strategy as the focus for global operations, managers face a dilemma between:

the need for global standardization and the need for local responsiveness.

Strategy execution

the stage of strategic management that involves the use of managerial and organizational tools to direct resources toward achieving strategic outcomes

To think strategically means

to take the long-term view and see the big picture

Decentralized Planning

top executives or planning experts work with managers in major divisions or departments to develop their own goals and plans

descriptive

what the administrative model is An approach that describes how managers actually make decisions, rather than how they should make decisions according to a theoretical model.

normative

what the classical model is defines how a manager should make logical decision and provides guidelines for reaching an ideal outcome.

Types of opertional Planning include management by :

1) objectives 2) Single-use-plans 3) standing plans

Goal Hierarchy

1) Operational Goals/Plans (Departments, individuals) 2) Tactical Goals/Plans Middle Management (Major divisions, functions) 3) Strategic Goals/Plan Senior Management (Organization as a whole) 4) Mission Statement

Limitations of Planning and goal setting include

1) Potential to create a false sense of certainty 2) create rigidity that hinders response to a turbulent environment 3) Get int he way of creativity and intuition.

Benefits of planning and goal setting include

1) Serving as a sources of motivation 2) Determining resource allocation 3) Providing a guide to action 4) Setting a standard for performance measurment

Management by object includes steps of :

1) Setting goals 2) developing action plans 3) reviewing progress 4) appraising performance

Goals and Plans need to be ________ so that they are ____________ and ____________

1) in alignment 2) consistent 3) mutually supportive

Risk

A decision has clear-cut goals and good information is available, but the future outcomes associated with each alternative are subject to chance.

Scenarios are:

Alternative viid pictures of what the future might be like

Intuition

An aspect of administrative decision making that refers to a quick comprehension of a decision situation based on past experience but without conscious thought.

Plan

Blueprint for goal achievement and specifies the necessary resource allocation, schedules, tasks, and other actions

Strategic Goals

Broad Statements of where the organization wants to be in the future and pertain to the organization as a whole rather than to specific divisions or departments

Mission Statement

Broadly stated definition or the organization's basic business scope and operations that distinguishes it from similar types of organizations

Satisficing

Choosing the first alternative that satisfies the minimal decisions criteria, regardless of whether better solutions are presumed to exist.

BCH Matrix

Concept developed by the Boston consulting group that evaluates SBU's with respect to two dimension-- business growth rate and market share--- and classifies them as cash cows, starts, question marks, or dogs.

Intelligence teams

Cross-function group of people who work together to gain a deep understanding of a specific competitive issue and offer insight and recommendations for planing.

Tactical Plans

Designed to help execute major strategic plans and to accomplish a specific part of the company's strategy.

Synergy

Exist when the organization's parts interact to produce a joint effect that is greater than the sum of the parts acting alone

Vertical integration

Expanding into businesses that either provide the supplies needed to make products or distribute and sell the company's products.

Management by Means

Focuses people on the methods ad processes used to attain results, rather than on the results themselves

Business performance dashboards

Help mangers oversee plans and measure progress towards goals.

Scenario Buliding

Managers look at trends and discontinuities and imagine possible alternative futures to build framework within which unexpected future events can be managed.

SWOT analysis

Managers often start with this, an audit or careful examination of strengths, weaknesses, opportunities,, and threats that affect the organizational performance.

differentiation strategy

Managers seek to distinguish the org's products and services form those of others in the industry.

focus strategy

Managers use wither differentiation or cost leadership approach, but they concentrate on a specific regional market or buyer group

Political model takes into considerations

Many decisions require debate, discussion, and coalition building

Bounded Rationality

Means the people have the time and cognitive ability to process only a limited amount of information on which to base decisions.

Related diversification

Moving into a new business that is related to the corporation's existing business activities.

Diversification

Moving into new lines of business

Standing Plans

Ongoing plans that are used to provide guidance for tasks that occur repeatedly in the organization, such as social media policy

Strategy

Plan of action that describe resources allocation and activities for dealing with the environment, achieving a competitive advantage, and attaining goals

_________ is the most fundamental of the four management functions

Planning

Mission

Planning states here with the organization's purpose or reason for existence

single-use plans

Plans that are developed to achieve a set of goals that are unlikely to be repeated in the future

Porter's competitive strategies

Popular model for formulating business-level strategy

Stretch Goals

Reasonable yet highly ambitious and compelling goals that energize people and inspire excellence.

Strategic Plans

The action steps by which an organization intends to attain strategic goals

Classical model

The ideal, rational approach to decision making based on the assumption that managers should make logical decision that are economically sensible and in the organization's best economic interest.

Tactical Goals

The outcomes that major divisions and departments must achieve for the organization to reach its overall goals

Decision Making

The process of identifying problems and opportunities and then resolving them

strategic Management

The set of decisions and actions used to make and implement strategies that will provide a competitively superior fit between the org and its environment so as to achieve organization goals

Strategy Formulation

The stage of strategic management that includes the planning and decision making that lead to the establishment or the organization's goals and a specific strategic plan.

Crisis Planning involves:

The two major stages of prevention and preparation

Planning helps Managers ______

Think about the future rather than thinking merely in terms of day-to-day activities.

Planning

Usually incorporates both ideas; its means determining the organization's goals and defining the means for achieving them

Strategy map

Visual representation of the key drivers of an organization's success, showing the cause-and-effect relationship among goals and plans.

Competitive advantage

What sets the organization apart from others and provides it with distinctive edge in the marketplace

Decision differ based on the amount of

certainty risk uncertainty ambiguity in the situation

decision

choice made from available alternatives

Transnational strategy

combines global coordination to attain efficiency with local flexibility to meet needs in different counties.

Multi domestic strategy

competition in each country is handled independently; product design and advertising are modified to suit the specific needs of individual countries.

Managers use innovative planning approaches to:

copes with today's turbulent enviornment

In many companies today, planning is ___________

decentralized

Goal

desired future circumstance or condition that the organization attempts to realize

Managers analyze the competitive environment and adopt one of the 3 types of strategy:

differentiation cost leadership focus

Strategic business unit (SBU)

division of the organization that has a unique business, mission, product or service line, competitors, and markets relative to other units of the same organization

What is the most important, but also the most difficult, part of strategy

execution

Once business- level strategies are made, managers in functional departments devise:

functional- level strategies to support them.

Contingency Planning

identifies important factors in the environment and defines a range of alternative responses to be taken in the case of emergencies, setbacks, or unexpected conditions.

administrative model

includes the concepts of bounded rationality and satisficing and describes how managers make decisions in situations that are characterized by uncertainty and ambiguity.

coalition

informal alliance among managers who support a specific goal or solution.

programmed decision

made in response to a situation that has occurred otfen enough to enable managers to develop decision rules that can be applied in the future

cost leadership strategy

managers aggressively seek efficient facilities, cut cost, and use tight cost controls to by more efficient than others in the industry.

Management by objective

method whereby managers and employees define goals for every department, project, and person and use them to monitor subsequent performance.

Uncertainty

occurs when the manager knows which goals they want to achieve, but information about alternatives and future events is incomplete.

Many companies increased their use contingency and scenario planing because:

of the global financial crisis and volatitle economic conditions

non programmed decision

one made in response to a situation that is unique, poorly defined, and largely unstructured, and has important consequences for the organization

Business-level strategy

pertains to each business unit or product line within the organization

Functional-level stratey

pertains to the major functional departments within each business unit, such as manufacturing, marketing, and research and development.

Portfolio strategy

pertains to the mix of SBU's and product lines that fit together in a logical way to provide synergy and competitive advantage.

Corporate-level strategy

pertains to the org as a whole and the combination of business units and products that make it up.

Frameworks for corporate-level strategy include:

portfolio strategy, the BCG matrix, and diversification strategy.

Globalization strategy

product design and advertising are standardized throughout the world.

Unrelated Diversification

refers to expanding into totally new lines of business.

Plans are defined with ____________________________________ plans used to achieve the goals

strategic, tactical, and operational plans