Management

Swot-External

(Opportunities & Threats) - focus on things like... Market trends, such as new products and technology or shifts in audience needs. Economic trends, such as local, national and international financial trends. Outside source of funding, regulations Demographics, such as a target audience's age, race, gender and culture. Rivals

Swot-Internal

(Strengths & Weaknesses) - focus on things like... Financial resources, such as funding, sources of income and investment opportunities. Physical resources, such as your company's location, facilities and equipment. Human resources, such as employees - think Google Current processes, such as employee programs, department hierarchies and software systems. Current products and services

Position power includes all of the following kinds of power except... A) Referent B) Coercive C) Legitimate D) Reward

A

The CEO of a new, small coffee shop walks around and asks his employees what they think about a new social media campaign. Which model best describes that behavior? A) Consideration B) Task-oriented C) Path-goal theory D) Initiating structure E) None of the above

A

Vertical Integration

A typical Supply Chain: Get raw materials-make-distribute-sell Gallo decided to make their own bottles because it was cheaper - that would be "backward vertical integration" because they are taking on responsibilities that are backward in the supply chain (they make their own raw materials rather than buy raw materials from someone else - they take on the responsibility) Apple makes their products but also decided to sell them by creating Apple stores (people can try out the products they make) - they vertically integrated into the retail part of the chain (forward vertical integration) Backward - the brewer decides to grow his own hops Forward - the brewer decides to sell his beer at his brewery

What goes with implementation?

Allocate responsibility Create action plans Establish timetable and measurable goals Allocate resources Hold people responsible

Differentiation Strategy

Being different on a dimension that is important to customers: for example product design, quality, after-sales service and support. Think about McGuckins versus Home Depot. McGuckins is higher priced, but differentiates itself with service. Also Nike, Disneyworld. , FedEx

Strategy and getting there

Being different? Having low costs? Being innovative? Being global? Being sustainable?

Transparency-Tim Cook or Steve Jobs

Being open about your operations. Tim Cook

Power of Buyers

Big, powerful buyers can bargain prices down particularly when they buy in volume. The Federal government buys weapons. They can bargain the prices down. Big box stores, like Walmart, buy a lot and have significant buying power.

How do they create a barrier to entry?

Bottlers agree not to bottle or distribute other products

Which motivational leadership behavior will work best when I know my employees are capable but I also just found out they are bored and not being challenged. A) Directive B) Supportive C) Achievement-oriented D) Initiating structure

C

Which of the 5 kinds of power is most linked to an individual's personality? A) Expert B) Legitimate C) Referent D) Coercive E) Reward

C - Referent Trust, looking up to someone, liking someone

The models of leadership highlight the need for 3 important things: The right traits, the ability to assess the situation, and the right _____________. A) Intuition B) Skills C) Charisma D) Behaviors

C...No...D is the right one Behaviors Trait models Behavior models Contingency models (depends on the situation)

Transformational Leadership

Charismatic - ability to inspire and motivate MLK

Global competition & IT: Restructuring Outsourcing Insourcing - Why? Empowerment & Self-managed teams

Companies now have "Millenial" groups Companies are moving toward Chief Digital Officer

Types of Behavior

Consideration People, relationships "Leadership" Initiating Structure Task, controlling, organizing "Management"

Levels of Planning at General Electric

Corporate strategy: A plan that indicates in which industries and national markets an organization intends to compete. (GE competes internationally in aircraft, financial services, etc.). Division level: 1) how will you meet organizational goals? 2) outlines the specific methods a division, business unit, or organization will use to compete effectively against its rivals in an industry (e.g., other makers of plastics) Functional level: Add value to products and services. how will the function support the division; 2) A plan of action to improve the ability of each of an organization's functions to perform its task-specific activities to add value to an organization's goods and services **Don't worry about "Levels and Types of Planning" on page 190, "Time Horizons of Plans" on page 191, or "Standing plans and single-use plans"

The Contingency theory discusses "Leader-Member" Exchange which is the extent to which followers like, trust, and are loyal to their leader. Which type of leader power is this related to? A) Expert B) Legitimate C) Reward D) Referent

D Referent - the same loyal, trust, like

Fiedler's Contingency Model emphasizes two different leadership styles. Which of the two is most linked to "Management" rather than "Leadership"? A) Referent B) Relationship-oriented C) Coercive D) Task-oriented

D Management is more about tasks Leadership is more about people, relationships, vision

Most important traits of a good leader

Emotional Intelligence and Humility

Diversification Expanding into new industry Pros & Cons? 3M is a master of diversification... How are they so successful? -Risk takers -Relentless focus on customers -Stretch goals - new products at a rapid rate -Autonomy -Technologies belong to every unit -Researchers share results

Expanding into a new industry - provide new goods and services Think of it as diversity but for goods/services instead of for people Example: Ball corporation makes mason jars but also does aerospace engineering Pros: Can save costs, share resources, expand customer base Cons: Not enough time to know everything about each business unit/industry Think of the saying, "Jack of all trades, master of none" 3M dabbles in all of these: transportation, healthcare, electronics, communications, specialty materials, etc.

Fiedler's Contingency Women

Fiedler's Leadership Styles: Relationship-oriented style leaders concerned with developing good relations with their subordinates and to be liked by them Task-oriented style leaders whose primary concern is to ensure that subordinates perform at a high level and focus on task accomplishment Dimensions: Leader-member relations The extent to which followers like, trust, and are loyal to their leader Task structure- the extent to which workers tasks are clear-cut so that a leader's subordinates know what needs to be accomplished and how to go about doing it Position Power- the amount of legitimate, reward, and coercive power leaders have

Individualism

Free from pressure to conform Look after own interest Creativity and Initiative Personal freedom, recognition, and promotion U.S. is seen as more individualistic The past military could be seen as Collectivist

What societal trends have hurt Coke & Pepsi?

Healthy, all natural, organic Reduce obesity Atkins & South Beach

How does Cott compete?

High quality, low-price soda to stores under their brand Cott has a low-cost strategy - make the grocery stores pay for ads so they can lower their price (don't have to pay for advertising) Retailers are willing to do this because they make more profit from Cott's sodas and the products build their store brand image

Fiedler's Contingency Theory

Just know that there are different combinations of Leader-Member Relations Task Structure Position Power

Why would a manager say no to implementation? (think UPS example

Keeping an advantage above others - through money, sales, differentiation, market share, profit, revenue, cost savings, reputation, etc.

Four Essential Tasks of Management

Key points summary: Planning - goals and strategy to reach those goals Organizing - roles and responsibilities Leading - MOTIVATING Controlling - Measuring!

What are the 5 types of power?

Legitimate Reward Coercive Expert Referent

Porter's 5 Forces Model

Level of Rivalry, Potential for Entry, Power of Suppliers, Power of Buyers, Threat of Substitutes

What makes Trader Joes successful?

Low cost High quality Not tons of options Take care of people Training Specialty products CA wine and fine foods Good planning was only the first step In order to get them in and shopping for high end things, have to provide GREAT customer service....so he had to motivate his people.....so he empowered them to take responsibility for meeting customer needs Autonomy - make on decisions when it comes to customers - no need to go to boss for everything Employees feel valued Hire from within Personalized customer service was key Full-time employees should earn at least the median household income

Differentiation strategies between coke and pepsi

Make and sell syrup concentrate Bottlers produce and distribute Charge premium price in order to get advertising dollars Awareness & Loyalty Coke & Pepsi spend a ton on advertising so they build brand awareness and brand loyalty

Personal Qualities and outcomes of Leadership

PQ- Emotional connections (Heart) Open mind (Mindfulness) Listening (Communication) Nonconformity (Courage) Insight into self (Character) Outcomes- Creates Change and a culture of integrity

Personal Qualities and outcomes of Management

PQ- Emotional distance Expert Mind Talking Conformity Insight into organization Outcomes- Maintains stability; creates culture of efficiency

Controlling-How to measure performance

Performance of people Performance of the product Performance of the service (measure with customer satisfaction) Measure performance with profits, revenues, etc.

Pros and Cons of expanding internationally

Pros: More sales from untapped markets More customers International experience Keep up with the competition Cons: Tailoring products and/or services is costly but if you don't then you can lose customers (global strategy vs. multi-domestic strategy) Many decisions have to be made (import vs. export, franchising, licensing, and alliances) and all have their own risks Which one is the least risky? What is importing? Exporting? **don't worry about specifics when it comes to franchising, licensing, and alliances - just know that those options exist**

Why study Management?

Resources are valuable and scarce Prosperity Understand others Job that pays well

4 Kinds of Influential Leadership

Servant, Transformational, Transactional

Collectivism

Society at large has priority Creativity is disruption Conformity rewarded

SWOT for Campbells

Strengths: Huge economies of scale First-rate R&D team Weaknesses: High staffing levels Old machinery creates high costs Afraid to take risks Opportunities: Health drinks like it's V8 juice Growing market for quality bread and cookies (Pepperidge Farms) Growth for chocolate products (Godiva) Threats: Organic and healthy options Variety of other convenience foods A major THREAT to Campbell's was the societal trend of being more healthy So they had to re-assess and did a SWOT analysis Customer is busy and health conscious so they address that with microwavable healthy soups Microwavable soups with a pull tab Healthier recipes New food outlets like dining halls Authority to managers to come up with new ideas More emphasis on 7/11 and Subway rather than grocery Low carb bread and cookies Shrank operations Low-salt and luxury soups Sold Godiva and invested in R&D for India and China

Differentiation

Style Quality Location Features Or doesn't exist

Effective Leadership Formula

TRAITS + BEHAVIOR + SITUATION = EFFECTIVE LEADERSHIP

Theory X

The assumption that employees dislike work, are lazy, dislike responsibility, and must be coerced to perform.

Theory Y

The assumption that employees like work, are creative, seek responsibility, and can exercise self-direction.

Hawthorne effect

The tendency to perform or perceive differently when one knows they are being observed.

Steve Jobs

Transform society with innovation Charisma - passion about new technology and better ways of doing things Referent - although some would say he was not likable, he did have trust in his people and society and people looked up to him - that is also referent power Legitimate - absolutely, he had the right position (CEO) to wield power

Managers who rely heavily on coercive power tend to be ineffective as leaders T or F

True-sometimes they even get fired like Fife

When goals are lofty and long term they may be called "Vision"(see examples in notes pages)

VISION STATEMENTS: "There's something going on here...something that is changing the world...and this is the epicentre." Steve Job of Apple Computers during its initial start-up "Quality, hard work, and commitment - The stuff America is made of. Our goal is to be the best. What else is there? If you can find a better car, buy it." - Lee Iacocca when he was chairman of Chrysler Corporation "2000 stores by the year 2000." - Howard Schultz, of Starbucks Coffee Company "To strengthen the social fabric by continually democratizing home ownership." - Federal National Mortgage Association, Fannie Mae Exploring the past, illuminating the present and imagining the future" - National Museum of Australia "Empower people through great software, anyplace, any time and on any device." - Microsoft's vision "To provide the best service and lowest fares to the short haul, frequent-flying, point-to-point, non-interlining traveler." - Southwest Airlines' vision "Whirlpool, in its chosen lines of business, will grow with new opportunities and be the leader in an ever-changing global market. We will be driven by our commitment to continuous quality improvement and to exceeding all of our customers' expectations. We will gain competitive advantage through this, and by building on our existing strengths and developing new competencies. We will be market driven, efficient and profitable. Our success will make Whirlpool a company that worldwide customers, employees and other stakeholders can depend on." - Wirlpool's vision

Threat of Substitutes

Whatever product you have, for example, videoconferencing, can be done by another company by a different means: Videoconferencing is a substitute for travel, plastic is a substitute for aluminum. There are plenty of substitute MP3 players for Apple's ipod.

Potential for Entry

When a company can easily enter a market. For example, Starbucks has threat of entry coffee shops that want to enter this market. They need to continuously innovate to remain competitive.

What do you think of when you hear the word "efficiency"? What does it have to do with Management? What are some examples?

Zero waste, effective use of resources, more with less, etc. Management is achieving org goals effectively and efficiently - 4 managerial tasks: Controlling, Leading, Planning, Organizing DMV, Potato head example, DIA?, others? Other simple examples: dishwasher,

Strategy

a careful plan or method for achieving a particular goal usually over a long period of time

Management vs Leadership

a) Management: -Establish procedures and processes -Ensure company is a well-oiled machine - functions smoothly -Accountable for accomplishing goals b) Leadership: -Look to future (Vision) -Chart the course (Strategy) -Attract, retain, motivate, and inspire employees -Develop relationships based on trust and mutual respect -Provide purpose -Seek innovation -Impassion employees to achieve vision -SERVANT LEADER - desire to serve and work for benefit of others (see Zingerman's example) - "Thank you for feeding, sheltering, educating, uplifting, and inspiring an entire community" No need to memorize this chart, I just want you to get a sense of the different themes.....work-centered and shorter term vs. people-centered and long-term vision and culture. Boss vs. coach Don't worry about a specific definition of each - just know what is involved in each Anyone having an influence could be considered a leader (there doesn't necessarily have to be change) We'll talk more about position power vs. personal power later but basically it's the difference between a boss using his position to direct vs. a leader using his personality and empathy to have an influence over others

Path-Goal Theory

d) Path-Goal Theory i) Clearly ID outcomes ii) Reward for reaching those outcomes iii) Clarify path to reach the goal Four types of leadership behavior motivate subordinates: i) Directive - similar to "Initiating Structure". Works well when employees are having trouble completing assigned tasks. Doesn't work well when employees are independent thinkers. Doesn't necessarily go as far as the video suggests (not quite that "coercive") ii) Supportive - similar to "Consideration". Works well when employees are stressed. iii) Participative - give employees a say (similar to empowerment). Works well when you need to get subordinates support of a decision. Achievement-oriented - motivate employees to perform at highest level possible. Set challenging goals, expect they will be met, believe in employee abilities. Works well if highly capable employees are bored with not enough challenge. Doesn't work well if already maxed out. Example: Get 10,000 twitter followers by next month. Can be seen as directive but could also be achievement-oriented - it's a challenging goal but I know you can do it. Maybe I also empower the employees to figure out how to get those 10,000 twitter followers (participative behavior). Then I could also be supportive by asking what resources they think they might need once they have a plan. Clarifying the path to reach the goal might be something like ....don't just ask all your friends to be twitter followers. We need to do this the right way.

Level of Rivalry

degree of competition for customers tends to drive down profits - good example are the overabundance of restaurants in Boulder. Competition leads to lowering of prices and more advertising. Just look in a supermarket for this. Level of rivalry is high in the t shirt business, in the car business, in the supermarket business.

Low Cost Strategy

drive down costs in comparison with rivals. Usually this can occur in production or manufacturing. Economies of scale are used...margins are low, but sales are high. Walmart, Southwest airlines.

Power of Suppliers

if there are only a few large suppliers, they can drive up the prices. For example, when Microsoft had a near monopoly on operating systems, they would cut profitability out of PC sellers. If there are only a few people who supply marijuana then they can charge high prices to the medical marijuana shops. If there are only certain farmers that grow a certain coffee bean - that bean can be expensive and anything made with that bean has to be more expensive

Expert

power because of experience, knowledge - some are smart enough to know they don't know everything - effective leaders seek the information out and rely on others (Maffei and Gates)

Legitimate

power because of my position

Referent

power because of respect, admiration, loyalty. Those that are likable have power (think Ellen and Oprah). Good personality, good sense of humor can lead to referent power. Show interest in employees

Reward

power to give or withhold rewards

Coercive

power to punish - ineffective - detrimental in many ways (see examples)

Transactional Leadership

use of influence thru an exchange process Reward for high performance, reprimand for low

Servant Leadership

work for benefit of others