BUS10: Chapter 7

SWOT Analysis

Analyze the organization's Strengths, Weaknesses, Opportunities and Threats.

External Customers

Dealers, who buy products to sell to others, and ultimate customers (or end users), who buy products for their own use.

Strategic Planning

Done by top management and determines the major goals of the organization and the policies, procedures, strategies, and resources it will need to achieve them. (Taco Bell during recession, gained 8%: open all night and 79 cent items)

PMI

Listing all the pluses for a solution in one column, all the minuses in another and the implications in a third.

Autocratic Leadership

Making managerial decisions without consulting others.

Participative or Democratic Leadership

Managers and employees work together to make decisions.

Free-Rein Leadership

Managers set objectives and employees are free to do whatever is appropriate to accomplish those objectives.

Vision

More than a goal, it's a broad explanation of why the organization exists and where it's trying to go.

Human Relations Skills

Skills that involve communication and motivation; they enable managers to work through and with people.

Conceptual Skills

Skills that involve the ability to picture the organization as a whole and the relationship among its various parts.

Objectives

Specific, short term statements detailing how to achieve the organization's goals.

Technical Skills

The ability to perform tasks in a specific discipline or department.

Goals

The broad, long term accomplishments an organization wishes to attain.

Top Management

The highest level, consists of the president and other key company executives who develop strategic plans.

Transparency

The presentation of the company's facts and figures in a way that is clear and apparent to all stakeholders.

Organization Chart

A visual device that shows relationships among people and divides the organization's work; it shows who reports to whom.

Decision Making

Choosing among two or more alternatives.

Knowledge Management

Finding the right information, keeping the information in a readily accessible place and making the information known to everyone in the firm.

Chief Information Officer (CIO)

Gets the right information to the right people so decisions can be made.

Enabling

Giving workers the education and tools they need to make decisions.

Chief Operating Officer (COO)

Implements CEO's changes.

Middle Management

Includes general managers, division managers, and branch and plant managers who are responsible for tactical planning and controlling.

Internal Customers

Individuals and units within the firm that receive services from other individuals or units.

Chief Executive Officer (CEO)

Introduces change into an organization.

Chief Financial Officer (CFO)

Obtains funds, plans budgets, collects funds, etc.

Mission Statement

Outlines the organization's fundamental purposes. Includes: The organization's self concept. Its philosophy. Long-term survival needs. Customer needs. Social responsibility. Nature of the product/service. More than vision, narrow and specific not raw.

Four Functions of Management

Planning: set organization goal, develop strategy to reach goal. Organizing: assign tasks, establish procedures. Leading Controlling: measure results against goal, reward those who did good and improve ones who didn't.

Staffing

Recruiting, hiring, motivating and retaining the best people available to accomplish the company's objectives.

Tactical Planning

The process of developing detailed, short term statements about what is to be done, who is to do it, and how. (Ford did research and development on Southern state, focus on local newspapers to sell trucks)

Contingency Planning

The process of preparing alternative courses of action the firm can use if its primary plans don't work out. (Apple maps not working, apologized and said it was mistake = contingency planning)

Operational Planning

The process of setting work standards and schedules necessary to implement the company's tactical objectives.

Problem Solving

The process of solving the everyday problems that occur; less formal than decision making and needs quicker action.

Management

The process used to accomplish organizational goals through planning, organizing, leading and controlling people and other organizational resources.

Supervisory Management

Those directly responsible for supervising workers and evaluating daily performance.