Management exam 2

examples of business analytics

Time-series forecast Portfolio analysis

VRIO

Value, Rarity, Imitability, Organization

the vision statement should answer

What do we want to become?

it is common practice today for most small business owners to engage in strategic planning

false

Boundryless Organization

fluid, highly adaptive organization whose members are linked by information technology and collaborate on common tasks.

When corporate departments such as marketing, human resources, and information technology implement plans of action that support higher-level strategies, they are following a(n) ______ strategy

functional

for goal setting to be successful, what must occur?

goals must be applied organization wide. top management must be highly committed. goals must cascade through the organization.

A business that wants to reach more customers and hires more employees to get this done is focusing on a ______ strategy.

growth

threats

hinder an organization from achieving a competitive advantage

A person's decision-making style is a combination of

how a person perceives something and how they respond to it

The first stage in the rational decision-making process involves

identifying th problem

Fourth step to rational decision making

implement and evaluate the solution chosen

the most cited challenge to artificial intelligence (AI) is:

implementation

What is the primary cause of failure for strategic initiatives?

improper execution

Porter's Five Forces Model for what analysis?

industry

Which models of decision making describe how managers actually make decisions?

nonrational

Evidence-based decision relies on ______.

observations about what actually works

what is an example of an organizational weakness (in SWOT)

obsolete technology

Environmental factors that an organization may exploit for competitive advantage are called organizational

opportunities

Which factors must work in concert to produce successful strategic execution?

organizational structure HR practices Organizational culture

According to Bossidy and Charan, the first core process of business is

people

Of the three core processes of business identified by Bossidy and Charan, which do they believe is the most important?

people

functional structure

people with similar occupational specialties are put together in formal groups

What are the core processes of business identified by Bossidy and Charan?

people, operations, strategy

in an organization culture a hero is

person whose accomplishments embody the organization's value's

continuous feedback loop

planning/control cycle

examples of first stage in rational decision making

poor product quality customer complaints sales shortfalls

The rational model of decision making is considered ______ in that it describes how managers should make decisions rather than how they actually make them

prescriptive

When is the ideal time to assess person-organization fit?

prior to accepting a position

Competing Values Framework

provides a practical way for managers to understand, measure, and change organizational culture

What are functional strategies used to accomplish?

putting strategic plans into effect

When other companies cannot duplicate the value provided by a competitor, then the competitor has established a(n) ______ competitive advantage.

sustainable

what behavior would a proactive learner most likely exhibit?

taking initiative

Coordinated effort

the coordination of individual efforts into a group or organization wide effort

imitability

the extent that firms can duplicate or substitute the resources and capabilities of competing firms

strategy formulation

the process of choosing among different strategies and altering them to best fit the organization's needs

decision making

the process of identifying and choosing alternative courses of action

authority

the rights inherent in a managerial position to make decisions, give orders, and utilize resources.

what does business growth rate refer to?

the speed of industry growth

strategic thinkers should have knowledge base shaped like the letter "T" representing

the top = breadth of knowledge & the stem = depth of expertise

differentiation strategy

to offer products or services that are of unique and superior value compared with those of competitors but to target a wide market

Types of organizational design

traditional horizontal open boundaries

Flat organizations

Few levels with wide spans of control- one manager overseeing many employees.

hierarchy of authority chain of command

A control mechanism for making sure the right people do the right things

Strategic Management Process steps

1. Establish the mission and the vision 2. Assess the current reality 3. Formulate the grand strategy 4. Implement the strategy 5. Maintain strategic control

MBO (management by objectives)

1. Managers and employees jointly set objectives for the employee. 2. Managers develop action plans. 3. Managers and employees periodically review the employee's performance. 4. Managers make a performance appraisal and reward the employee according to results.

4 common elements of organizations

1. common purpose 2. coordinated effort 3. division of labor 4. hierarchy of authority

Porter's 4 competitive strategies

1. cost-leadership 2. differentiation 3. cost-focus 4. focused-differentiation

Porter's Five Forces Model

1. threat of entry 2. power of suppliers 3. power of buyers 4. threat of substitutes 5. rivalry among existing competitors

Schien proposed the

4 common elements

simple structure organization

Authority in a single person Low work specialization A flat hierarchy

what is the most common type of AI used today?

Automated business processes

Organizational design is concerned with which activities?

Creating structures of accountability and responsibility Creating a structural design that will help an organization execute its strategies

market culture statements

Customers, productivity, and profits take precedence over employee development and satisfaction. Employees are expected to work hard, react fast, and deliver quality work on time, It is driven by competition and a strong desire to deliver results.

Vertical

Expresses the extent to which an organization prefers flexibility and discretion versus stability and control

Horizontal

Expresses the extent to which the organization focuses its attention and efforts inward on internal dynamics and employees versus outward toward its external environment and customers

Which are characteristics of strategy formulation?

It is the basis for determining long-term goals. It is a time-consuming process.

characteristics of clan culture

Promotes a feeling of familyEncourages collaboration among employees

What occurs as a result of the horizontal organizational design?

Teams are used to improve collaboration and work.

person-organization fit

The extent to which your personality and values match the climate and culture in an organization

observable artifacts

The readily apparent symbols and manifestations

decision

a choice made from available alternatives

the purpose of an organization

a company's mission

hierarchy of authority

a control mechanism for making sure the right people do the right things at the right time

story

a narrative about the company's history that is repeated by an organization's members in order to emphasize a particular value.

Benchmarking

a process by which a company compares its performance with that of high-performing organizations

decision tree

an analytical tool that can help managers understand the possible consequences of their decisions and to create a plan to reach a goal.

strategic positioning

an attempt to achieve sustainable competitive advantage by preserving what is distinct about a company.

tall

an organization comprised of many levels with narrow spans of managerial control

step 4 of MBO

appraisal and rewards

Functional organizational structures:

are common in both for-profit and nonprofit organizations. put employees with similar occupational specialties together in formal groups.

Heuristic

are strategies such as "rules of thumb" that simplify decision making.

The second step of the strategic management process involves

assessing the current reality

Which level of strategy is concerned with how much to spend on marketing or whether to expand facilities?

business

hollow

central core of key functions and outsources others to vendors who can do them cheaper and faster

higher customer satisfaction

clan and market cultures

higher market share

clan and market cultures

Once implemented, managers need ________ to keep strategic plans on track.

control systems

Which Porter's competitive strategies are appropriate when addressing a narrow market?

cost focused & differentiation

In order to implement a particular organizational strategy, managers must determine the right kind of organizational:

culture and structure

To decide how much an insurance policy should cost a customer, underwriters use ________, such as historical industry trends and loan characteristics, to predict risk levels.

data analytics

big data examples

data in corporate databases web-browsing data trails surveillance data social network communications

Nonrational models of decision making

describe how managers actually make decisions

Formal statements

embed preferred culture by describing organizational philosophy, mission, vision, and values.

second step in management by objectives

employees preparing action plans

What is the most valuable competitive resource for a manager who needs alternative solutions to a problem?

employees with ideas

cascading goal

ensuring that strategic goals at the top align with the short-term goals set at lower levels in the organizations

organizational threats

environmental factors that hinder an organization's achieving a competitive advantage

What is the third stage of the rational model of decision making?

evaluate alternatives and select a solution

Aligning people with goals, achieving promised results, and integrating strategy with reality are all part of the ______ process.

execution

espoused values

explicitly stated values and norms preferred by an organization

Espoused values in an organization's culture represent the ______.

explicitly stated values and norms the organization prefers

mission statement

expresses the purpose of the organization

a values statement

expresses what the company stands for, its core priorities, the values its employees embody, and what its products contribute to the world

analytics

fact-based decision making

market culture

strong external focus and values stability and control

Some large publishers have stopped publishing children's books because they are expensive to produce and distribute. This is an example of an offensive strategy.

false

clan culture

internal focus and values flexibility

corporate-level strategy

involves senior executives in planning answers questions such as "what business are we in?" and "what products and services shall we offer? "focuses on the organization as a whole

in the third stage of rational decision making what ?s would you use to evaluate alternitives

is it feasible? is it ultimately effective? is it ethical?

Division of labor

is the arrangement of having discrete parts of a task done by by different people in an organization

Rarity

is the resource or capability currently controlled by only a few or no other firms?

strategy

large-scale action plan that encompasses the company's vision and is used to create the direction for the business.

strategic planning requires a company to have a _____ orientation

long-term

intuition

making a choice without the use of conscious thought or logical inference

what are the planning steps in the planning/control cycle?

making the plan. carrying out the plan.

third step of management by objectives

manager and employee periodically reviewing the employees performance

rational model

managers should use logic to determine the optimal means of furthering the organization's best interests

more positive organizational outcomes

market cultures

What does the BCG matrix evaluate?

market share & business growth rates

types of structures categorized as organizational designs with open boundaries

modular hollow virtual

Diversification

moving into new lines of business

In organizational culture, a story is a(n)

narrative based on true events which is repeated in order to emphasize a particular value

hollow structure

network structure

The "feedback loop" in the strategic-management process involves:

revising actions if necessary

strongest ways to embed organizational culture

rewards and status symbols

examples of observable artifacts

ritual, decorations, awards

The number of people reporting directly to a given manager refers to

span of control

little or no change to a company's product or service

stability

Rational model of decision making

stage 1. identify the problem or opportunity stage 2. thunk up alternative solutions stage 3. evaluate alternatives & select a solution stage 4. implement & evaluate the solution

In which step of the strategic-management process does an organization establish the mission and vision statements?

step one

big data

stores of data so large that conventional database management systems cannot handle them

Which "unwritten" skill did the Harvard Business Review consider essential to being promoted on the job?

strategic thinking

SWOT

strengths, weaknesses, opportunities, threats

Evidence-based management includes making decisions based on what actually works versus what ought to work.

true

Execution is the central part of any company's strategy

true

common purpose

unifies employees or members and gives everyone an understanding of the organization's reason for being

adhocracy culture

values flexibility and has an external focus.

When would a company use a VRIO analysis?

when deciding whether or not a new product might work in the marketplace

an organizations vision represents

where the organization wants to go.