MGT 330 Exam 2

MBO Benefits

- focuses manager and employee efforts on activities that will lead to goal attainment -can improve performance at all company levels -improves employee motivation -aligns individual and departmental goals with company goals

BCG Matrix

-Market Share High Growth High- Stars (rapid growth and expansion) -Market Share Low Growth High- Question Marks(new ventures, risky) -Market Share High Growth Low- Cash Cow -Market share Low Growth Low- Dogs (no investment)

Characteristics of effective goal setting

-are specific and measurable -are linked to rewards -are challenging but realistic -cover key result areas -have a defined time period

What are the 4 levels of goals and plans

1. Mission Statement 2. Strategic goals/plans- senior management (org as a whole) 3. tactical l goals/plans- middle management (major divisions) 4. operational goals/plans-Lower management (departments or individuals)

The organizational planning process

1. develop the plan (set goals/mission) 2. Translate the plan (develop strategy map, identify teams/scenarios) 3. Plan Operations (define operational goals and plans, crisis planning, measures and targets, stretch goals) 4. Execute the plan (use management by objectives, performance dashboards, single use plans) 5. Monitor and learn (hold planning and operational reviews)

Porter's Five Forces

1. potential new entrants (internet reduces barriers to entry) 2. bargaining power of buyers (internet shifts greater power to end consumers) 3. bargaining power of suppliers (internet tends to increase bargaining power of suppliers) 4. threat of substitute products (internet creates new substitution threats) 5. rivalry among competitors (internet blurs differences among competitors)

Essential stages of crisis planning

1. prevention (Build relationships and detect signals from the environment) 2. preparation (designate crises management team and spokesperson, create detailed crisis management plan, set up effective communications system)

Model of the MBO process

1. set goals 2. develop action plans 3. review progress or take corrective action 4. appraise performance

Which of the following lists the strategic management process in proper order?

1.Evaluate current mission/goals 2.Perform SWOT analysis 3.Define new mission/goals 4.Formulate strategy 5.Execute strategy

Building Scenarios

A forecasting technique to look at current trends and discontinuities and visualize future possibilities

Which of the following structures works best in an uncertain organizational environment?

A horizontal structure

After Sunshine Systems merged with RTD Enterprises, company executives noticed that due to increased employee collaboration between the two units, costs were down and revenues increased within both areas. This is an example of which element of competitive advantage?

Building synergy

According to the BCG matrix, which of the following exists in a mature, slow-growth industry, but is a dominant business in the industry, with a large market share?

Cash cow

Riley is a manager at Tinker Tools. She is expected to make rational decisions that are economically feasible and in the organization's best economic interests. Her decisions should be based on which of the following decision-making models?

Classical

Which is an advantage of the divisional structure?

Concern for customers' needs is high

Which of the following pertains to the organization as a whole and the combination of business units and product lines that makes up the corporate entity?

Corporate-level strategy

strategy

Decisions and actions used to formulate and execute strategies that will provide competitively superior fit between the organization and its environment to achieve organizational goals

Uncertainty

Depends on the amount and value of information available

When quality control measures at the local tire plant were found to be inadequate, managers were asking themselves, "How did this occur?" and "What is the result?" The company is in which stage of the managerial decision-making process?

Diagnosis and analysis of causes

Which of the following portfolio categories is made up of poor performers who command only a small share of a slow-growth market?

Dog

Elements of a competitive advantage

Exploit Core Competencies Achieve Synergy Create Value Target Customers

General Products Inc. is a small clothing designer and manufacturer located in the United States. A vast majority of the company's revenues comes from U.S. sales, although about 10 percent of the company's revenue come from sales to Canada. General Products Inc. can best be described as using which global corporate strategy?

Export

Which of the following is not a type of goal that a manager would identify on a strategy map?

External business process

Risk

Future outcomes associated with an alternative are subject to chance

Which global corporate strategy is based on the assumption that a single global market exists for many consumer and industrial products?

Globalization

Which of the following strategies would be appropriate when the need for both national responsiveness and global integration is high?

Glocalization

limitations of planning

Goals and plans can create a false sense of certainty, may cause rigidity in a turbulent environment, can get in the way of intuition and creativity

Benefits of planning

Goals and plans provide a source of motivation and commitment, guide resource allocation, are a guide to action, set a standard of performance

__________ is a vital part of good management because decisions determine how the organization solves its problems, allocates resources, and accomplishes goals.

Good decision making

Ambiguity

Making decisions in difficult situations

Silver Star Automobiles holds monthly planning and operational reviews to ensure that it is on track for meeting organizational goals. This involves which of the following stages of the organizational planning process?

Monitoring and learning

__________ is the act of determining the organization's goals and defining the means for achieving them.

Planning

Contingency Planning

Planning for emergencies, setbacks, or unexpected conditions

__________ define boundaries within which to make decisions.

Policies

Programmed Decisions

Recurring problems Apply rule

Which of the following leads to strong coordination across functional areas and greater flexibility in responding to changes in the environments?

Reengineering

Which of the following refers to the willingness to undertake risk with the opportunity of gaining an increased payoff?

Risk propensity

Which of the following statements about standing plans is true?

Standing plans are ongoing plans that provide guidance for tasks or situations that occur repeatedly within the organization

__________ is the use of managerial and organizational tools to direct resources toward accomplishing strategic results.

Strategy execution

__________ goals are reasonable yet highly ambitious goals that are so clear, compelling, and imaginative that they fire up employees and engender excellence.

Stretch

Crisis Planning

Unexpected events that are sudden and devastating

Nonprogrammed Decisions

Unique and nonrecurring decisions that require a custom-made solution

Janessa is the CEO of a privately-held software company. In defining corporate-level strategies, which of the following questions would she most likely be concerned with?

What business are we in?

Define Plan

a blueprint for goal achievement and specifies the necessary resource allocations, schedules, tasks, and other actions

The Classical model

a model of decision making that seeks to maximize economic or other outcomes using a rational choice process

Explicit strategy

a plan of action

Certainty

a situation in which a manager can make accurate decisions because all outcomes are known

To achieve competitive advantage, companies should develop strategies that:

a. target specific customers. b. sprovide synergy. c. focus on core competencies. d. create value.

Kelly, a manager at Pure Life Inc., likes to talk to her employees one on one and understand their feelings whenever there is a problem. Based on this information, Kelly uses a(n) __________ style.

behavioral

The __________ model of decision making is most useful when applied to __________ decisions.

classical; programmed

People with a(n) __________ style consider many broad alternatives, rely on information from both people and systems, and like to solve problems creatively.

conceptual

Sears' decision to sell off much of its financial services division is an example of a __________ strategy.

corporate-level

With a(n) __________ strategy, the organization aggressively seeks efficient facilities, pursues cost reductions, and uses tight cost controls to produce products more efficiently than competitors.

cost leadership

intelligence teams

cross-functional group of managers work together gain a deep understanding of a specific competitive issue offer insight and recommendations for planning

The use of teams may lead to too much

decentralization

Define Goal

desired future state that the organization attempts to realize

The crisis management plan should be a __________ plan that specifies the steps to be taken, and by whom, if a crisis occurs.

detailed, written

The __________ is the individual who is assigned the role of challenging the assumptions and assertions made by the group.

devil's advocate

Porter's Competitive Strategies

differentiation, cost leadership, focused differentiation, focused cost leadership

Self-contained unit structure is a term used for

divisional structure

The functional, _____, and _____ are traditional approaches that rely on the chain of command to define departmental groupings and reporting relationships along the hierarchy.

divisional, matrix

All of the following are advantages of a functional structure EXCEPT:

excellent coordination between functions

Vertical integration

expansion into businesses that supply to the business or are distributors -Backward vertical integration -Forward vertical integration

Related diversification

expansion into new business related to existing business activities

Unrelated diversification

expansion into new lines of business

All functions in a specific country or region report to the same division manager in _____ divisions.

geographic-based

If ABC International has standardized its product design and advertising throughout the world, it is pursuing a(n) __________ strategy.

globalization

A(n) __________ refers to a desired future circumstance or condition that the organization attempts to realize.

goal

The recognition of decision requirement step in the managerial decision-making process often requires managers to:

integrate bits and pieces of information in novel ways.

A pure functional structure is most appropriate for achieving:

internal efficiency goals

Classy Clay has extremely creative employees who, in the opinion of the organization, keep the company ahead of the competition. The creativity of these employees would be classified as a(n):

internal strength

The __________ is the department manager's tool for daily and weekly operations.

operational plan

The _____ delineates the chain of command, indicates departmental tasks and how they fit together, and provides order and logic for the organization.

organizational chart

The __________ model of decision making is useful for making nonprogrammed decisions when conditions are uncertain, information is limited, and there are manager conflicts about what goals to pursue or what course of action to take.

political

Gillette operates numerous strategic business units. Most of its units in the personal care division have a small market share but high business growth. These units are classified as __________ on the BCG matrix.

question marks

stretch goals

reasonable yet highly ambitious and compelling goals that energize people and inspire excellence

Single-use plans vs. standing plans

single-use achieve one time goals and are programs and projects, standing plans are ongoing and are policies, rules, and procedures

Many strategy experts agree that __________ is the most important, yet the most difficult, part of strategic management.

strategy execution

SWOT Analysis

strengths, weaknesses, opportunities, threats

Competitive advantage

the organization's distinctive edge for meeting customer needs

In using management by objectives, goals should be set by:

the supervisor and employee jointly