Part 2 managment chpt 6 and part of 7 W

helps managers determine which company belong in their portfolio?

BCG matrix

We seek to improve efficiency by implementing a new computerized payment system.

Lower

What are the 4 purposes for organizations?

-provide guidance -promote good planning -motivating employees -enhancing evaluation and control

Seattle-based Theo Chocolate makes organic and Fair Trade chocolate bars. Its management team includes CEO Etienne Patout. Suppose Patout were considering whether Theo Chocolate should branch out and start selling other items in addition to its chocolates, such as locally made baked goods. This is acorporate-level strategic decision. To make this decision, Patout would have to take which of the following actions? Check all that apply.

-Evaluate the resouces the company has available to allocate

__________ specify plans to use when company is face with unforseen circumstances

Contingency Plans

A company's managers ask, "Does it make sense for our vacuum-cleaner company to buy a company that manufactures space heaters?"

Corperate level strategy

Tesco managers sold their Fresh & Easy U.S. grocery-store chain after looking at the returns from that division and comparing them with returns from Tesco's other divisions around the world. The analysis led managers to decide that the market couldn't deliver acceptable returns for the company, which is based in England.

Corporate Level Strategy

relates to the set of procedures an organization uses if a disaster or other unexpected event occurs.

Crisis Managment

-Understand Strategic plans -Identify the time constraints involved -determine human resource needs -recognize resources requires

Developing

organizational strength possessed by only a small number of competing firms

Distinctive competence

refers to the number of different businesses in which an organization is engaged.

Diversification

This company has a low market growth rate and low realtive market share

Dog (sell buisness)

We seek to provide a 14% or greater annualized return of investment for our shareholders.

Strategical

what does SWOT stand for?

Strengths, weaknesses, opportunities, and threats

We seek to expand by opening 150 new restaurant locations in the next 10 years.

Tactical

typically set by upper and middle management. They have a shorter time horizon and a more specific focus than strategic plans.

Tactical Plans

What factors are important to successfully execute tactical plans?

The manager must monitor ongoing activities derived from the plan to be sure the results are as expected. The manager needs to evaluate every possible course of action in light of the goal. Each decision maker must have the information and resources necessary for getting the job done.

We seek to provide a 14% or greater annualized return of investment for our shareholders.

Top Management

How to read the Boston Consulting Group matrix

Top left = high bottom to the left= high

developed by middle and lower-level managers, have a short-term focus, and are generally narrow in scope.

Operational

when referring to SWOT anlysis, O stands for

Oppurtunites and it refers to factors that are external to the organization

When conducting a SWOT analysis, budgets, ratios, and sales reprts can be used to identify

Company strengths and weakenesses

We seek to operate a chain of restaurants that prepares high-quality food on a timely basis for a reasonable price.

Board of Directors

A company's managers ask, "Should we increase the size of our Bluetooth wireless speaker and sell it at a higher cost?

Buisness level strategy

PepsiCo makes and sells large numbers of products, from Pepsi Cola to Lay's potato chips to Cap'n Crunch cereal. Last Tuesday, PepsiCo analyzed the sales of Near East Rice Pilaf mix. Looking at the increase in sales for foreign foods, and considering the large amount of money PepsiCo has in its coffers, managers decided to continue selling Near East Rice Pilaf and advertise it more heavily.

Buisness level strategy

this company has a low market growth rate and a high relative market share.

Cash Cow (take profits)

-Obtain information -Communicate throughout process -Assess outcomes -Monitor activities

Executing

As the United Way campaign manager, you decide to set several measurable goals in addition to the overall goal for dollars raised: Eight out of ten employees will donate funds to the campaign. Awareness of the company's involvement in the United Way will increase from 70% last year to 90% this year. Which fact about goals is relevant given your goal to see an improvement in awareness?

Goals provide a mechanism for evaluation

This company has a high market growth rate and a low relative market share.

Question mark (Invest cautiously)

A schedule for competing the redesign of an organization's garden and landscape

SIngle plan use

You are developing a plan for your department to use when replenishing supplies needed to accomplish ongoing activities. What type of plan should you create?

Standard operating procedure

A policy that states that all returns will be accepted, regardless of where they were purchased

Standing Plan

company guidelines that require employees to wear suit and ties (professional buisness attire) when interacting with customers

Standing Plan

This company has a high market growth rate and a high relative market share.

Star (Invest heavily)

Set by Board of directors, top management -Time: frame Long-range -Focus: Sources of competitive advantage -Scope:General

Strategic

What are some advantages of international diversification include

economies of scale, since the organization may be able to serve an expanded customer base from the same number of facilities

In planning process, what is the role of tactical goals and plans?

links strategy and operations

Operational Goals: Implement employee incentive system within one year -decrease waste by 5% this year -Hire and train new assistant managers -split accounts recieveable/ payable functions from other areas within two years -computerize payroll system for each resturant -pay all invoices within 30 days

manager

What are the 4 levels of goals in organization?

mission statement, strategic, tactical and operational

A fast food business modifies its menu substantially in the different countries where it opens restaurants, as well as accommodating different expectations regarding customer service. This company probably uses a __________ strategy

multidomestic

When national markets are very differnent, firms often use a

multidomestic strategy

A plan to merge two companies

single use plan

a project plan is an example of

single use plan

A companys ________ serves as an organizational plan, outlining how the company will create competitive advantage

strategy

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

What list of steps reflect the best order for the planning process?

1) set strategic goals 2) set tactical goals and plans 3) set operational goals and plans

There are several steps in the planning process, what is the correct order (long)

1) understand enviornment 2) establish the organization's mission 3) set strategic goals 4) design strategic plans for accomplishing the strategic goals and mission 5) set tactical goals based on strategic goals and plans 6) design tactical plans for accomplishign the tactical goals 7) set operational goals based on tactical plans 8) design operational plans for accomplishing the operational goals

Strategic goal: Provide 14% reture to investors for at least 10 years, start or purchase new resturant chain within 5 years, negociate new labor contract this year

President / CEO

A company's strategic goals specify a direction for accomplishing the company's mission. Which one of Twitter's goals is listed as a strategic goal

Grow annual revenues by 18% or more to a range of 1,365-1,375 million *remember strategic goals are goals the company takes to fullfull its purpose

Rule or procedure is an example of a

standing plan

We seek to expand by opening restaurants along every major highway in the region.

Middle Management

Strategic Tactical Operational We seek to improve efficiency by implementing a new computerized payment system.

Operational

A company's strategic goals specify a direction for accomplishing the company's mission. Which one of Twitter's goals is listed as a tactical goal?

Increase # of user timeline views 15% year-over-year or Increase the cost per 1,000 timeline views by 10%

Tactical Goals: -Open 150 new resturants during next 10 years, decrease food-container cost by 15% during next 5 years, -decrease average customer wait by 30 sec. -Earn 9% on excess cash this year -revis computerized accounting system within 5 years -keep. corporate debt no more than 20% of liqiud assets for next 10 years

Vice President