Chapter 4 Business Management

Social Stakeholders

EXTERNAL groups and organizations that may be affected or influence strategy and performance of a company; unions, governments, and activist groups are examples

Controlling

Ensuring performance doesn't deviate from standards.

investment

External Orientation with High Control Want to be the first one with the idea

imagination

External orientation but highly flexible Have new ideas and breakthroughs Normally comes from the drive or genious of a single person

Why is creativity important to our vision?

In business, our vision can't be the same as someone else's. So you have to be creative to find your vision

STAKEHOLDERS

Individuals or groups who have an interest in a business' ability to deliver intended results and maintain the feasibility of its products and services.

incubation

Internal orientation but highly flexible Deliberate in what they do and are concerned with their legacy.

improvement

Internally oriented but with high Control Don't always come up with original ideas, but tend to find ways to do things better

N.G.T.

NOMINAL GROUP TECHNIQUE

Product-Market Stakeholders

People or groups with whom the firm shares its industry, including suppliers and customers.

Identify Stakeholders

Step 1: Determine Who Can Influence our Mission, Vision, and Strategy Formulation Step 2: Determining How Key Decisions Affect the Stakeholders Step 3: Determining Stakeholders' Power and Influence Over Business Decisions

S.C.A.M.P.E.R.

Substitute Combine Alter Modify, Magnify, Minimize Put to other uses Eliminate Rearrange

What are the three critical roles vision and mission statements play?

They COMMUNICATE the purpose of the organization They GUIDE the company's strategy development They help give us direction in DEVELOPING measurable goals and objectives

Relationship between vision, mission, and strategy

Vision Statements -> Why does our company exist? Mission Statements -> How are we going to achieve our vision? Values Statements -> What do we really care about?

Stakeholders emphasized by mission and vision statements

Vision and Mission statements are designed to meet the needs of your stakeholders.

Right brained thinking

a thinking process that is about changing patterns and perceptions

Values Statement

a written statement that reaffirms or outright states the organization's values that might not be obvious from the vision or mission statements.

Organizational Design

aligning the people, information, and technology of an organization.

Organizational stakeholders

all of the employees of a company, from high-level managers to frontline workers.

ORGANIZATIONAL CULTURE

creating a system of shared assumptions, values, and beliefs about what is appropriate and inappropriate behavior

ORGANIZATIONAL STRUCTURE

defining the formal relationships between employees, and defining their roles and responsibilities.

Capital-Market Stakeholders:

groups that affect the availability or cost of capital (sources of money to fund the firm); includes shareholders, venture capitalists, banks, and other financial institutions.

Leading

inspiring and motivating workers to work hard to achieve organizational goals

EMPLOYEE ENGAGEMENT

managing discretionary effort; when employees have choices, they will act in the best interest of the business

Left brained thinking

relies on logical or structured ways of creating a new product or service

STAKEHOLDER ANALYSIS

the range of techniques or tools used to identify and to understand the needs and expectations of major interests inside and outside of the business environment.

Strategic Human Resources Management

tying the organization's human capital into the mission and vision.

Golden Circle

why, how, what