Principles of Management (MNGT 3100) - Chantel Tremetiere - Exam 3

Detail the stage in the Problem Solving Process known as "Generate Potential Solutions".

Need to generate multiple alternative solutions to the problems: -Don't look for perfect (Don't have a one-track mind) -Nothing is stupid (Ex.: Nike going overseas and BOOM - "I wear Nikes") -Be sure that you are informed (Ex.: Have a problem - sick and throwing up) (Need to be informed about what can cause those symptoms to figure out what is making you sick) -Change scenery (Leave your comfort zone) -Rephrase the question (Ask the same question in 10 different ways) -Ask for help (People will give better advice than google)

What does the "Classical Model" of Decision-Making address?

One of the 1st models created to describe decision making of managers Assumptions: -Decision maker is rational and logical -Decision make has access to complete and accurate info -Decision maker will do what is in the best interest of organization (Assumed manager is looking out for everyone and the organization) *Rational Model*

What does the "Analytics Model" of Decision-Making address?

Predicative Modeling - Companies use the numbers they have to try to predict their futures Decision Support Systems (DSS) - It's more operational and planning in the present "Numbers don't tell you everything - No matter how good the numbers are, they don't tell you everything"

What is the difference between "Rational" and "Non-Rational" Decisoin-Making Models?

Rational: talk about how managers should make decisions Non-rational: talk about how managers actually make decisions

Describe the component of Ethical Decision-Making known as "being aware of ethical issues".

See that there is an ethical issue

What is the difference between "Strategic Vision" and "Mission Statement"?

Strategic Vision - statement of organization's long-term goals and ultimate image ("states where we're going") Mission Statement - short statement that signifies an organization's purpose and reason for being ("describes organization and the reason for its existence")

Describe the Type of Management in the Henry Mintzberg Model of Strategic Management known as "Deliberate Strategies".

The parts of intended strategy that the firm continues to pursue over time

Describe what the BCG Matrix measures (including: the 2 axes that make up the BCG Matrix, and the 4 categories that companies can fall into on the BCG Matrix)

Used to evaluate the long-term strategy and priorities of the firm "how fast is the industry growing, and how much of that industry do I own?" 2 axes: -Market share -Market growth 4 different categories of BCG Matrix: -Cash Cows (Large market share with small market growth) (Much safer) -Dogs (Small market share and small market growth) (Not a good place to be) -Stars (Large market growth and large market growth) -Question Marks (Small market share and potential for high market growth) (On the rise and could be great)

Define "Problem".

a situation that is unwelcome or harmfu

Describe the different parts of the Value Chain Analysis.

a tool to analyze a firm's value creating activity *look at how each part of your company works, see how the activities work individual and how they tie in together* (Value Chain Analysis provides a quick way to identify value in organizations including your competitors.) (Value is created from both primary and support activities.) Broken into Primary Activities and Supporting/Secondary Activities: -Primary activities - include acquiring the inputs (inbound logistics) to transforming the inputs (operations) to distributing the finished product to marketing and selling the product. -Support Activities - Those activities intended to aid the primary functions. *"This is a way that a company carries out activities to create value for their customers"*

Define "Related Diversificiation"

business expands its activities into product lines that are similar to its current offerings (Expand into something along same lines of what you do now)

Define the type of decision making manager known as "Avoidant Decision Maker".

does everything in their power to avoid decision-making altogether.

Define "Geographic Diversificiation"

expanding into new areas that your company is not already widespread into Most take place overseas (because taxes are better, products are better, etc.)

Describe the bias in Decision-Making known as "Sunk-Cost Bias".

individuals cannot walk away from an investment they have already made Ex.: spending $10,000 on Louis Vuitton / Yeezy's

What is the most important quality to becoming an entrepreneur? (Expound upon it.)

innovation. stop working for the check and start working for your passion.

Define a competitive advtange in Strategic Management.

managers need to leverage entrepreneurial thinking to navigate market sectors where competitive advantages that used to be dominant, may be on the wane Ex.: Barnes & Noble Go in, sit down, get coffee, read, and buy books -Starbucks helped so much -Amazon and iPad and E-books changed Barnes & Noble had to change with them

Detail the stage in the Problem Solving Process known as "Implement and Monitor".

once you decide what to do, DO IT (and monitor the results, making adjustments when needed)

Describe the Intuitive Model of Decision Making.

reaching a judgement through a rapid non-conscious process of holistic association

Define the type of decision making manager known as "Dependent Decision Maker".

searches for advice and direction from other individuals rather than acting independently

Describe the bias in Decision-Making known as "Confirmation Bias".

seek out info that aligns with our current position -Only seek out info that you believe already -Really just want a co-sign to your decision

Define the type of decision making manager known as "Confirmation Seeking Decision Maker".

seek out information that aligns with our current perspective.

Define "Un-Related Diversificiation"

seeks a portfolio approach in unrelated businesses -Expanding into areas unrelated to what you do (Ex.: DISNEY! (them parks > films > merchandise > cruise lines)

Describe the bias in Decision-Making known as "Anchoring Bias".

tendency to be overly influenced by numbers, and a failure to adjust Ex.: Mamma said you should get married and have kids by the age of 25, so you settle for a loser just because that's what the stupid Southern do

Describe the bias in Decision-Making known as "Availability Bias".

tendency to rely on easily remembered info and a failure to seek out multiple perspective Ex.: afraid to fly after 9/11 (based on info she had) "I don't give a damn about any numbers you give me!"

What is the general concept and key idea of Michael Porter's 5-Forces Analysis?

to analyze the attractiveness (potentially profitability) of a specific industry *profitability of an industry defined by 5 forces* "It assesses the strengths and weakness of an industry as a whole, not just one company"

Describe the bias in Decision-Making known as "Framing Bias".

undue influence based on the way that a situation or info is presented -Basing decision based on how info is presented or who is presenting it Ex.: anything an Alabama fan says is crap Ex.: will we take hers or Corn's advice on business?

Describe the component of Ethical Decision-Making known as "Making an ethical judgment".

use ethics to use your best judgement

Define the Entrepreneurial Skill known as "human relation skills".

•Empathy - care about people in meaningful ways. •Courage - confront and overcome danger or disappointment from taking a risk and failing. •Listening - take information and make judgments about that information with careful thought and consideration. •Decision Making - differentiate between a series of choices and the impact of a momentary decision.

Define the Entrepreneurial Skill known as "financial management skills".

•Getting a loan - convince a bank or financing entity to take on a risky business venture. •Giving away equity - convince a wealthy person or financial institution to fund a business venture by making that person (or entity) a partner in the business through giving them shares. •Bootstrapping - fund a business through a combination of personal savings and loans •Spending Money - understand and compensate for the loss of cash to fund the business over time, i.e. "burn rate."

Define the Entrepreneurial Skill known as "business development skills".

•Management - lead and manage people and teams as the business expands and grows (scales) over time. •Sales - understand how to acquire a customer/client from prospect to paying customer/client •Marketing - persuade a customer/client to buy a product they are unaware of, might not know they need, or might need but might not understand why

Define intrapreneurship and describe it.

•management inside of major organizations attempting to harness the innovative power of entrepreneurship. "It is easier to pitch people from inside your own company than coming from the outside" Ex.: Sony - Sony PlayStation Ex.: Facebook "Hack-athon" - (Facebook Like Button) Ex.: DreamWorks - Employees can submit their ideas

Describe the Type of Management in the Henry Mintzberg Model of Strategic Management known as "Emergent Strategies".

"Comes along with changes" "the changes that you make in your intended plan" Unplanned strategy that arises in repose to unexpected opportunities and challenges

Describe the Type of Management in the Henry Mintzberg Model of Strategic Management known as "Realized Strategies".

"What actually happens" "What you have done" Strategy that an organization actually follows

Describe the Type of Management in the Henry Mintzberg Model of Strategic Management known as "Intended Strategies".

"What you plan to do" Strategy an organizations hopes to execute

List the 5 Forces of Michael Porter's 5-Force Analysis.

-Threat of new entrants -Bargaining power of suppliers -Bargaining power of customers -Threat of substitutes -*Competitive rivalry in the center*

List the 5 Types of Biases related to Decision-Making and Problem Solving.

1. Availability bias 2. Anchoring bias 3. Confirmation bias 4. Sunk-cost bias 5. Framing bias

List the 4 components of Ethical Decision Making

1. Being aware of ethical issues 2. Making an ethical judgment 3. Acting ethically 4. Applying moral principles

List the 4 Types of Decision-Making Models.

1. Classical Model (*Rational) 2.Evidence-Based Model (*Rational) 3.Non-Rational Models (Intuitive, Incremental, and Predictive) 4.Data Analytics

What are the 3 Types of Generic Strategies regarding Business Level Strategies?

1. Cost-Leadership Strategy 2. Differentiation Strategy 3. Focus Strategy

List the 4 Types of Decision-Making Managers

1. Dependent Decision Maker 2. Avoidant Decision Maker 3. Helping Hand Decision Maker 4. Confirmation Seeking Decision Maker

List the 4 Types of Entrepreneurial Skills.

1. Human relation skills 2. Financial management skills 3. Business development skills 4. Persuasion skills

List the 4 Types of Strategies associated with the Henry Mintzberg of Strategic Management.

1. Intended Strategies 2. Deliberate Strategies 3. Realized Strategies 4. Emergent Strategies

Outline the Problem Solving Process.

1. Problem Identification 2. Generate potential Solutions 3. Evaluate Alternatives (Decision Making) 4. Implement and Monitor

What are the 3 Kinds of Diversification?

1. Related Diversification 2. Unrelated Diversification 3. Geographic Diversification

Define "Entrepreneurship".

Act of being an entrepreneur, or an owner or manager of a business enterprise who makes money through risk and initiative -Planning, starting ,and promoting a project which becomes a business "doing the work it takes to make things happen, and being willing to lose the money while doing it"

Define Organizational Capabilities (and expound upon it).

An organization's ability to utilize their available resources*. *(using both tangible and intangible resources to their best ability)

What does the "Predictive Model" of Decision-Making address?

Companies use the numbers they have to try to predict their futures

What does the "Evidence-Based Model" of Decision-Making address?

Decision makers are not rational and are acting in the absence of perfect information (not rational and not perfect) "human being can be irrational sometimes, and because we act irrational we don't trust a lot of people, so we need as much evidence as possible to make decisions" 4 insights to this approach: -Demand evidence -Examine logic -Treat organization as an unfinished prototype - it is not perfect (Don't look for perfect solution - If you assume your organization is perfect, it makes your decisions very biased) -Embrace that attitude of wisdom

Detail the stage in the Problem Solving Process known as "Identify the Problem".

Diagnose the problem rather than addressing the symptoms that caused that problem (Ex.: employees in office have low morale Don't just see eye rolls and late deadlines, figure out what the issue is.) Limitation is a key component of problem solving Realize that some of the issues we encounter are not actually the problem but instead a symptom of a larger issue (Ex.: why do employees have a low morale? What is causing it?) Important part of the problem identification stage of problem solving is whether leaders and managers view issues as problems or opportunities (See issues as opportunities! Don't think about how bad it is, but how good we could make it! "Problems are a chance for us to grow")

What is the difference in "Efficiency" and "Effectiveness"?

Efficiency - ability to accomplish a task utilizing available resources in the best way possible (Doing things right) Effectiveness - the measure of how well a task or goal was accomplished (Doing the right things)

Describe the component of Ethical Decision-Making known as "Acting ethically".

Engage in the ethical behavior (decision) "walk the walk"

What does the "Non-Rational Model" of Decision-Making address?

How managers actually make decisions in the workplace -Ask yourself one question with non-rational models: as managers, when making decisions, are we trying to maximize our gain or minimize our loss? Prospect Theory - looks at this question and proposes that as individuals, we fear losses more than we value gains (Ex.: she wins the iPhone 10, but Corn wins an iPhone 11 As humans, we'll be more upset that Corn got something better, than focusing on getting the iPhone 10 ) Bounded Rationality - managers feel that there are too many constraints (There are too many time and budget restrictions, so we fall back to what we know) "making decisions within your comfort zone" Satisficing - tendency to consider our alternatives until we find one that meets some minimum criteria (Many settle for the easiest, first alternative) "satisfying yourself as quickly as you can"

Describe the inportance of innovation in entrepreneurship.

Innovation - technology can do limitless things for organizations in the development of products, processes, and services for consumers (more than just technology) Ex.: someone who is good at airbrushing (He airbrushes sneakers, makes them "more fly") (He is now famous and airbrushes NBA players' Jordan's)

Describe "Cost-Leadership Strategy" regarding the generic strategies of Business Level Strategies.

Low cost to broad market Ex.: Walmart, Costco

Describe the component of Ethical Decision-Making known as "Applying moral principles".

Make an intentional and ethical action

Describe the Incremental Model of Decision Making.

Managers make decisions to solve short-term problems rather than addressing the larger issues or underlying causes

Detail the stage in the Problem Solving Process known as "Evaluate Alternatives (Decision-Making)".

Multiple approaches to decision making (4 models): 1. 1. Classical Model 2.Evidence-Based Model 3.Non-Rational Models 4.Data Analytics