MGMT 309 Exam 2 Prof q's & surrounding material
What are the three time frames?
Long term Intermediate term Short term
What two factors does the BCG matrix use to evaluate an organization's set of businesses:
market growth rate and relative market share
Reduce manufacturing and other costs tries to gain a competitive advantage by reducing its costs below the costs of competing firms. By keeping costs low, the organization can sell its products at low prices and still make a profit.
overall cost leadership
For each type of goal listed below, indicate the level of management responsible for setting that type of goal. Strategic goals
top
A real and meaningful effort by an organization to change its whole approach to business in order to make quality a guiding factor in everything the organization does.
total quality management
invest heavily
star
Decision making conditions are
certainty risk uncertainty
Porter's Generic Strategies
differentiation strategy overall cost leadership strategy focus strategy
The ultimate goal of a company
mission
The choice of physical configuration of facilities
layout
What are the important purposes of goals?
1. Goals provide guidance and a unified direction for people in the organization; help people understand where the organization is going and why getting there is important. 2. Goal setting practices strongly affect other aspects of planning. It promotes good planning which facilitates future goal setting. 3. Goals can serve as a source of motivation for employees of the organization especially specific and moderately difficult ones that result in a reward. 4. Goals provide an effective mechanism for evaluation and control; performance can be assessed in the future in terms of how successfully todays goals are accomplished.
What are the 4 basic levels of goals?
1. mission 2. strategic 3. tactical 4. operational
If the company uses Porter's cost leadership strategy, what should marketing and sales emphasize?
The good value of the company's products
When referring to a swot analysis, the T stands for ---- and it refers to factors that are ---- to the organization
Threats, external
Cisco managers sat down recently to review the portfolio of their company. They looked at all of the businesses the company had acquired in the last year and determined how much money each acquisition was making for Cisco. They then decided which companies to keep and which to spin off.
corporate level strategy
Google managers ask, "Which company should we acquire next to access new technologies and customers?"
corporate level strategy
the set of strategic alternatives from which an organization chooses as it manages its operations simultaneously across several industries and several markets.
corporate level strategy
Low relative market share, high market growth rate
cow
take profits
cows
What is the cornerstone of planning?
decision making
Distinguish products or services
differentiation
Large products, such as a long-range bomber like the Northrop Grumman B-21 Raider, are too cumbersome to move through an assembly line, so a --- layout will be most effective.
fixed position
When the organization is creating a few very large and complex products. Aircraft manufacturers like Boeing and shipbuilders like General Dynamics use this method.
fixed position layout
Concentrate on specific regional market, product market, or group of buyers
focus
ZombieSmith manufactures gaming miniatures. Its highly specialized products and targeted customer base indicate that ZombieSmith is using a(n) ---- to gain a competitive advantage.
focus strategy
Represent one widely used method for managing the goal-setting and planning processes concurrently to ensure that both are done effectively
formal goal setting
What is critical to organizational effectiveness?
goals
Intuition and experience are major factors in
nonprogrammed decisions
Imagine that your friend Eve has lived all her life in Yuma, Arizona, and has never traveled far from her hometown, but has applied to colleges in Idaho, Michigan, New Hampshire, and Florida. Despite her ----- , Eve thought moving to a previously unexplored city might be interesting.
state of uncertainty
The decision maker does not know all the alternatives, the risks associated with each, or the likely consequences of each alternative. This --- stems from the complexity and dynamism of contemporary organizations and their environments.
state of uncertainty
Face the hard facts and build a culture in which people are encouraged to tell the truth, even if it's unpleasant.
step 1 of evidence based management
A form of business that combines and transforms resources into tangible outcomes that are then sold to others.
manufacturing
Developed by middle - and lower-level managers. Have a short-term focus and are relatively narrow in scope. Each one deals with a fairly small set of activities.
operational plans
Skills and capabilities that enable an organization to conceive of and implement its strategies. May include such things as a deep pool of managerial talent, surplus capital, a unique reputation and/or brand name, and well-established distribution channels.
operational strengths
the practice of duplicating another firm's distinctive competence and thereby implementing a valuable strategy.
strategic imitation
A comprehensive plan for approaching an organizations goals.
strategy
Decision involves choosing the amount of products, services, or both that can be produced by the organization. Demand is a major consideration. Its a high-risk decision because of the uncertainties of future product demand and the large monetary stakes involved
capacity decision
miles and snow typology
Prospector strategy, Defender strategy, Analyzer strategy Reactor strategy
Which column best describes the characteristics associated with strategic plans?
A. Set by board of directors, top management; Time frame- long range; Focus on sources of competitive advantage, scope - general
provides a framework for evaluating the relative performance of businesses in which a diversified organization operates.
BCG matrix
If the company has decided to use Miles and Snow's analyzer strategy, which of the following actions would best support this strategy?
Develop decision-making processes that optimize goal setting.
Which one of the goals listed is an example of a strategic goal Twitter might set?
Expand globally with a focus on Latin America
Improved employee motivation Allows employees a voice in determining expectations Helps identify superior managerial talent for future promotion Facilitates control Communication is enhanced through the process of discussion and collaboration
Formal Goal Setting Strengths
Lack of top-management support Some firms overemphasize quantitative goals and plans and burden their systems with too much paperwork and record keeping
Formal Goal Setting Weaknesses
What does the organizations mission consist of?
Strategic goals and plans Tactical goals and plans Operational goals and plans
describes how decisions often are actually made
administrative model
use incomplete and imperfect information are constrained by bounded rationality tend to "satisfice" when making decisions.
administrative model
Maintains current markets and current customer satisfaction with moderate emphasis on innovation
analyzer
For each type of goal listed below, indicate the level of management responsible for setting that type of goal. Mission statement
board of directors
when families of products can follow similar flow paths. A clothing manufacturer, for example, might create a designated area dedicated to making a family of pockets, such as pockets for shirts, coats, blouses, and slacks.
cellular layout
rarely if ever actually exists: Decision makers have complete information about the decision situation and possible alternatives. They can effectively eliminate uncertainty to achieve a decision condition of certainty. They evaluate all aspects of the decision situation logically and rationally.
classical model of decision making
an organizational capability possessed by a large number of competing firms.
common strength
The determination of alternative courses of action to be taken if an intended plan of action is unexpectedly disrupted or rendered inappropriate
contingency plan
Increasing the flexibility of an organization's workforce by training employees to perform a number of different jobs. Allows the firm to function with fewer workers because workers can be transferred easily to areas where they are most needed.
cross training
For each type of goal listed below, indicate the level of management responsible for setting that type of goal. operational goals
lower
More firms begin producing the product, and sales continue to increase. Important management issues include ensuring quality and delivery and beginning to differentiate an organization's product from competitors' products. Entry into the industry during this stage may threaten an organization's competitive advantage; thus, strategies to slow the entry of competitors are important.
growth stage
Demand may be very high, sometimes outpacing the firm's ability to supply the product. At this stage, managers need to focus their efforts on "getting product out the door" without sacrificing quality. Managing growth by hiring new employees and managing inventories and cash flow are also concerns during this stage.
introduction stage
Overall demand growth for a product begins to slow down, and the number of new firms producing the product begins to decline. The number of established firms producing the product may also begin to decline.
maturity stage
For each type of goal listed below, indicate the level of management responsible for setting that type of goal. Tactical Goals
middle
A decision that is relatively unstructured and occur much less often. Managers faced with such decisions must treat each one as unique, investing enormous amounts of time, energy, and resources into exploring the situation from all perspectives.
nonprogrammed decision
A video production firm plans to hire a new creative director. Several applicants have the necessary technical skills. The hiring manager is now viewing the digital portfolios submitted by the applicants to determine which one should be offered an in-person interview for the creative director role. This is a:
nonprogrammed decision
Goals set by and for lower level managers. Focus on shorter term issues associated with tactical goals. Often short term goal.
operational
At Hair's Why, your employees specialize in different services. Some provide only nail services. Others provide only hair services. Which layout will be most efficient for you given this kind of employee specialization?
process layout
Used in operations settings that create a variety of products or activities. Auto repair shops and health care clinics are good examples.
process layout
Most assembly lines use this format Appropriate when large quantities of a single product are needed.
product layout
shows how sales volume changes over time of product
product life cycle
Decisions also have to be made regarding the level of quality desired, the optimal cost of each product or service, and exactly how each is to be designed
product service mix
Managers have to make a number of decisions about their products and services, starting with how many and what kinds to offer.
product service mix
When companies such as Hatteras Hammocks design their operations systems, they make several types of decisions, including those that deal with ---- , capacity, and facilities.
product service mix
As manager of Hair's Why, you frequently hear customers ask for other services beyond what you provide. Hair's Why focuses on color and cuts, but customers sometimes request waxing and tanning. As you consider the requests, what kind of decision are you making?
product service mix decision
types of layouts
product, process, fixed position, cellular
A number of issues and decisions must be addressed as operations systems are designed. The most basic ones are ----
product-service mix, capacity, and facilities
decision makers tend to search only until they identify an alternative that meets some minimum standard of sufficiency
satisficing
Innovative and growth oriented, searches for new markets and new growth opportunities, encourages risk taking
prospector
To give subordinates a voice in the goal-setting and planning processes and to clarify for them exactly what they are expected to accomplish in a given time span.
purpose of formal goal setting
refers to the methods by which strategies are operationalized or executed within the organization
strategy implementation
What are the internal analysis's in SWOT
strengths and weaknesses
SWOT stands for
strengths, weaknesses, opportunities, threats
the process of managing operations control, resource acquisition and purchasing, and inventory so as to improve overall efficiency and effectiveness.
supply chain management
Goals set by and for middle managers. Focus on how to operationalize actions necessary to achieve the strategic goals. Often intermediate term goal.
tactical
Involve upper and middle management and have a somewhat shorter time horizon with more specific and concrete focus. Concerned with getting things done instead of deciding what to do.
tactical plans
Last week, senior managers in the Post-it® Note division at 3M met to determine the best way to handle their product. Regardless of how 3M positions its other products, Post-it Notes will continue to be widely sold at a premium price. The company will continue to develop new Post-it products to attract new buyers.
business level strategy
Managers at Annie's, a company that makes organic foods, are considering the best ways for the company to position its products after a great IPO. They decide on a focus strategy, targeting sales at people who care about what's in their food.
business level strategy
The set of strategic alternatives from which an organization chooses as it conducts business in a particular industry or market. Such alternatives help the organization focus its competitive efforts for each industry or market in a targeted and focused manner.
business level strategy
Low relative market share, low market growth rate
dog
sell business
dogs
a pattern of action that develops over time in an organization in the absence of mission and goals or despite mission and goals.
emergent strategy
4 Components of Total Quality Management
employee involvement technology materials methods
Decision makers sometimes make decisions and then become so committed to the courses of action suggested by those decisions that they stay with them even when the decisions appear to have been wrong.
escalation
Management decisions should be based on the best evidence, managers should systematically learn from experience, and organizational practices should reflect sound principles of thought and analysis.
evidence based management
What are the goals of SWOT (good strategies)
exploiting an organization's opportunities and strengths while neutralizing its threats and avoiding (or correcting) its weaknesses.
the physical locations where products or services are created, stored, and distributed.
facilities
product life cycle stages
introduction, growth, maturity, decline
An innate belief about something, without conscious consideration. Managers sometimes decide to do something because it "feels right" or they have a "hunch." This feeling is usually not arbitrary, however
intuition
UNIQLO has had strong demand for its products and it entered the growth stage quickly. Which of the following challenges is most common during this stage?
managing inventories
After years of saving, you finally have enough money for the down payment on a house. Now you've started gathering all of the information you can about houses in a 25-square-mile area. The decision you make about which house you will buy is a:
nonprogrammed decision
Beyond its direct impact on such factors as competitiveness, quality, and productivity, ------ also directly influences the organization's overall level of effectiveness.
operations management
The set of managerial activities used by an organization to transform resource inputs into products and services.
operations management
What are the external analysis's in SWOT
opportunities and threats
What is the outline of an organizations purpose, premise, values, and directions?
organizations mission
High relative market share, low market growth rate
question marks
invest cautiously
question marks
No clear strategy, reacts to changes in the environment, drifts with events
reactor
UNIQLO tries to monitor its competitors' actions, but notices that one of these competitors seems to shift strategies often and does not anticipate trends in the environment. Which type of strategy does the competitor appear to have?
reactor
Steps in rational decision making
recognize and define the decision situation identify appropriate alternatives; evaluate each alternative in terms of its feasibility, satisfactoriness, and consequences; select the best alternative; implement the chosen alternative; and follow up and evaluate the results of the chosen alternative
The extent to which a decision maker is willing to gamble when making a decision
risk propensity
is any artificial device that can perform functions ordinarily thought to be appropriate for human beings. --- refers to the science and technology of the construction, maintenance, and use of ----.
robots
One that transforms resources into an intangible output and creates time or place utility for its customers.
service organization
what is managerial ethics?
standards of behavior that guide individual managers in their work
Be committed to "fact-based" decision making—which means being committed to getting the best evidence and using it to guide actions.
step 2 of evidence based management
Treat your organization as an unfinished prototype—encourage experimentation and learning by doing.
step 3 of evidence based management
Look for the risks and drawbacks in what people recommend (even the best medicine has side effects).
step 4 of evidence based management
Avoid basing decisions on untested but strongly held beliefs, what you have done in the past, or on uncritical "benchmarking" of what winners do.
step 5 of evidence based management
What underlies every aspect of goal setting and planning?
decision making
is the act of choosing one alternative from among a set of alternatives
decision making
When designing facilities, decisions must be made about their ---- , which concerns their physical positioning or geographic site.
location
the physical positioning or geographic site of facilities and must be determined by the needs and requirements of the organization.
location
Major facilities decisions pertain to
location and layout
recognizing and defining the nature of a decision situation identifying alternatives choosing the "best" alternative putting it into practic
decision making process
Demand for the product or technology decreases, the number of organizations producing the product drops, and total sales drop. Demand often declines because all those who were interested in purchasing a particular product have already done so.
decline stage
Protects current markets, maintains stable growth, serves current customers
defender
a plan chosen and implemented to support specific goals.
deliberate strategy
What two other reasons organizations set goals for?
difference areas and different time frames
a strength possessed by only a small number of competing firms.
distinctive competence
describes the number of different businesses that an organization is engaged in and the extent to which these businesses are related to one another.
diversification
Until recently, Peter Smith's company had no competition for sales of its one-of-a-kind products. However, two online stores selling similar products recently opened, which represents an ------ to his company.
organizational threats
A decision that is relatively structured or recurs with some frequency (or both). Many decisions about basic operating systems and procedures and standard organizational transactions are of this variety
programmed decision
Every morning when you walk into Starbucks, you order the same thing: a venti green tea Frappuccino with extra whipped cream. You can't drink anything else at Starbucks because you don't like hot beverages, coffee, or black tea, and you like your beverages tall and creamy. Your decision about what to order at Starbucks today is a:
programmed decision
You are the CEO of a large scanner manufacturer. You just caught a department manager embezzling money from your company. The decision you make about whether to fire the department manager is a:
programmed decision
A friend asked if you would like to open a deli near your school's campus, where there are very few inexpensive places to eat. Although a deli probably would be successful, you declined; even the possibility of losing money made you too nervous due to your low
risk propensity
specifies the range of markets in which an organization will compete.
scope
What role does the mission statement play in the planning process?
sets purpose of business
High relative market share, high market growth rate
star
When the decision maker knows with reasonable positivity what the alternatives are and what conditions are associated with each alternative ---- exists
state of certainty
The availability of each alternative and its potential payoffs and costs are all associated with probability estimates.
state of risk
Goals set by and for top management of the organization. Focus on broad, general issues. Often long term goal.
strategic
Most large organizations are engaged in several businesses, industries, and markets. Each business or set of businesses within such an organization is often referred to as
strategic business unit
A comprehensive and ongoing management process aimed at formulating and implementing effective strategies.
strategic management
A general plan outlining decisions of resource allocation, priorities, and action steps necessary to reach ---- goals. Set by board of directions and top management. Extended time horizon and address questions of scope, resource deployment, competitive advantage, and synergy.
strategic plans
Sam owns a small cafe that faces competition from a new restaurant across the street. Sam may want to perform a SWOT analysis, or a systematic evaluation of the internal and external environments, to inform his -----
strategy formulation
the set of processes involved in creating or determining the strategies of the organization
strategy formulation
