Management EXAM 2 Review

Tactical plan

Aimed at achieving tactical goals developed to implement specific parts of a strategic plan with a shorter time horizon and a specific focus on getting things done

Competitive advantage

An advantage that exists after all attempts at strategic imitation have ceased

Contingency plan

Determines alternative courses of action if an intended plan is unexpectedly disrupted or rendered inappropriate

A manager is asked to optimize a set of goals. What is the manager being asked to do?

balance and reconcile competing goals

How can organizations make the best use of goal setting and the goal-setting processes?

by understanding the purpose and goals of planning

Raphael has set a goal of improving employee satisfaction by 10 percent over the next year. Why might this goal be inappropriate?

it is difficult to quantify

Resistance to change

A major barrier with various reasons such as ignoring motives and inability to evaluate alternatives

Distinguished competence

An organizational strength possessed by only a small number of competing firms

Robotics

Artificial devices performing functions thought to be for human beings

Myles and Snow typology

Categorizes strategies into prospector, defender, analyzer, and reactor strategies based on their approach to innovation and current business maintenance

CAM and CAD

Computer-assisted manufacturing and design, respectively, used for simulating performance and reordering

Short and long term strategic plans

Cover different time horizons, with short-term plans usually covering a year or less and long-term plans covering many years or decades

Satisficing

Decision makers search for an alternative meeting a minimum standard of sufficiency rather than the best possible one

Reaction plan

Designed to allow the company to react to unforeseen circumstances, such as equipment arriving unexpectedly early

Strategic imitation

Duplicating another competence into a valuable strategy

Prospector strategy

Encourages creativity and flexibility and is often decentralized

Operational plan

Focuses on carrying out tactical plans to achieve operational goals

Standing plan

Used for activities that recur regularly over a period of time, including policies, standard operating procedures, and rules and regulations

Types of goals

Levels (mission, strategic, tactical, operational), areas (e.g., operations, marketing, finance), and time frames (long-term, intermediate, short-term)

Product life cycle

Model showing how sales volume changes over the life of products, including introduction, growth, maturity, and decline stages

8 dimensions of quality

Performance, features, reliability, conformance, durability, serviceability, aesthetics, perceived

Manufacturing layouts

Product, process, fixed position, and cellular layouts for different production needs

Models of decision making

Rational decision making process and various decision-making conditions

Criteria for evaluating decision alternatives

Recognizing and defining the decision situation, identifying alternatives, and evaluating their feasibility and consequences

Just in time (JIT)

Reduces organization's investment in storage space for raw materials and in the materials themselves by ordering materials and parts more often and in smaller quantities

Professional planning staff

Reduces workload, coordinates planning activities, brings different tools and techniques, takes a broader view, and goes beyond individual managers' perspectives

Avec's department is launching an online ordering system for retail and restaurant accounts. The new system simplifies and clearly outlines the steps to be followed from sales inquiry to final order payment. Which type of standing plan will be used to enhance the ongoing efficiency of the order management process?

SOP

Scope

Specifies the range of markets in which an organization can compete

Which of the following describes tactical goals?

These goals are set by middle managers, are focused on how to achieve broad goals, and have medium time frames.

Which of the following describes strategic goals?

These goals are set by top management, are broad in scope, and have long time frames.

What makes goals inappropriate?

They are unattainable.

Differentiation

When an organization seeks to distinguish itself from competition through the quality of its products or services

A small retail shop in the local community offers a wide variety of women's clothing at low prices. In order to be competitive with larger chains found at the mall, the store owner frequently works alone, and she has adjusted store hours to capitalize on busy days. What should this retail shop owner be pursuing as part of her general business-level strategy?

concentrate on reducing operating costs

What is considered to be the cornerstone of planning?

decision making

When a new line of organic salad dressing was launched, it was very successful. Competitors soon began to produce a similar product. What should the organization do to keep its competitive advantage?

develop strategies to slow the entries of new competitors

The number of different businesses that an organization runs, and the extent to which these businesses relate to one another, is represented by _____.

diversification

When a manager provides employees with resources and coordinates their activities, the manager is

executing

Curl Up and Dye is a local hair salon that has a steady clientele from the surrounding community. However, a new salon has just opened in the area, and some clients have mentioned that the new salon offers similar services at lower prices. Curl Up and Dye now needs to pursue a strategy that will _____.

neutralizing the impending threat

A line manager at a brewery sets a target for the minimum number of beer cartons that must be shipped out by the end of each day. This is an example of a(n) _____.

operational goal

Which of the following is a major tool for managing diversification?

organization structure

At Montazar's organization, there is a specific start time, and all employees must be at work on time and ready to be at their workstation. This allows for a smooth transition between shifts. Which type of plan narrowly focuses on specific activities such as start times?

rules and regulations

Avec's department is launching an online ordering system for retail and restaurant accounts. The new system simplifies and clearly outlines the steps to be followed from sales inquiry to final order payment. Which type of standing plan will be used to enhance the ongoing efficiency of the order management process?

standard operating procedure

Rebeya is setting goals with the executive team of her organization. These goals include financial and productivity goals, as well as environmental and sustainability goals. Which type of goals is Rebeya establishing?

strategic

Raj has empowered his senior managers and asked them to increase profitability by 20 percent over the next five years. What has Raj set for his senior managers?

strategic goal

Marah has been tasked with the job of outlining decisions about resource allocation, priorities, and action steps that are necessary to reach one of her company's strategic goals. What is Marah developing?

strategic plans

In the introduction stage of the product life cycle, what do managers typically need to focus on?

supply

As a middle manager, Luis sets goals for his staff. Which type of goals would Luis be expected to set?

tactical

organizational plans are directly based on the....

tactical plans and operating goals

How do tactical plans differ from strategic plans?

tactical plans focus on people and action

Which of the following describes operational goals?

these goals are set by lower-level managers, are specific in scope, and have short time frames

Which of the following is true of decision makers in the classical decision model?

they have complete information about the decision and the alternatives

Which of the following are reasons that organizations set goals? Check all that apply.

to give people in the organization a unifying direction, to prompt managers to make adjustments to improve performance, to aid in measuring results

What is one of the main purposes of a SWOT analysis?

to identify distinctive competencies