Exam 2: Chapter 6-10

Characteristics: Entrepreneurs (8)

1. Autonomy 2. High Energy 3. Need to Achieve 4. Self Confidence 5. Internal Locus of Control 6. Entrepreneurial Struggle 7. Tolerance of Ambiguity 8. Power of Influence

Characteristics: Business Plan (10)

1. Clear vision 2. Realistic financial projections 3. Profile Target Market 4. Profile the industry and competition 5. Provide an effective management team 6. Well written/formatted 7. Keep it short 8. Highlight risks 9. Spell out the sources of funding 10. Capture attention via summary

Concept: What are the steps in managerial decision making (6)

1. Recognition of Decision requirement 2. Diagnosis and Analysis of Causes 3. Development of Alternatives 4. Selection of Desired Alternative 5. Implementation of Chosen Alternative 6. Evaluation and Feedback

Concept: What are the four categories of the corporate portfolio?

1. Stars 2. Question Marks 3. Cash cows 4. Dogs

Concept: Line of Authority

A management concept where the people in managerial positions have formal authority to direct and control immediate subordinates.

Concept: Diagnosis and Analysis of causes

Analyze underlying causal factors

Concept: Chain of command

An organizing concept where the command is a unbroken line of authority that links all individuals in the organization and specifies who reports to whom

Concept: Selection of Alternatives

Choose the alternative that yields the best outcome

Concept: Development of Alternative

Define feasible solutions/alternatives

Concept: Need to Achieve

Entrepreneurs are motivated to excel and pick situations in which success is unlikely

Concept: Self Confidence

Entrepreneurs must have confidence in their ability to master day-to-day business tasks

Concept: High Energy

Entrepreneurs need high energy to start their own business, It takes lot of work to enter a marketplace.

Concept: Evaluation and Feedback

Gather information and evaluate effectiveness.

Concept: Recognition of Decision Requirement

Identify the problem or opportunity

Concept: Common sources of Business ideas

In order from most to leas common: 1. In depth understanding of industry or business profession (37%) 2. Market niche spotted (36%) 3. Other (11%) 4. Brainstorming (7%) 5. Copying someone else (4%) 6. Hobby (4%)

Concept Export risk w/ entering International market

In the export strategy, the organization is domestically focused, with only a few exports. This means managers have little need to pay attention to issues of either *local responsiveness* or *global standardization*.

Define: Core Competence

Something that a organization does particularly well compared to others.

Concept: Elements of Strategic Management Process

Strategic management refers to the set of decisions and actions used to formulate and execute strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals. It begins when executives evaluate their current position with respect to mission, goals, and strategies. They then scan the organization's internal and external environments and identify strategic issues that might require change.

Concept: Advantage w/ Virtual Networks

The main advantage of virtual networks is that you can draw on expertise worldwide and also they are highly flexible and responsive to reducing overhead costs

Concept: Internal Locus of control

The most successful entrepreneurs believe that their actions determine what happens to them, demonstrating a high internal locus of control

Concept: Implementation of Alternative

Use managerial, administrative, and persuasive abilities to execute the chosen alternative

Concept: Star category

a category of corporate portfolio high in both market and growth

Concept: Question marks

a category of corporate portfolio high in growth but low in market share

Concept: Cash cow

a category of corporate portfolio high in market share but low in growth

Concept: Dogs

a category of corporate portfolio low in both growth and market share

Concept: Autonomy

a characteristic of an entrepreneur who cherishes the freedom of making their own business decisions

Define: Intelligence Team

a cross functional group of managers or employees who work together to gain a deep understanding of a specific business problem, and are concerned with its solution

Define: Classical Model of Decision Making

a decision making model that deals with clear cut problems/goals by utilizing full information about alternatives/outcomes, making the rational choice by individual for maximizing outcome.

Concept: Matrix organization structure

a organizational structure design that combines functional and divisional approaches

Concept: Programmed Decision

a type of decision making that deals with re-occurring problems by applying pre-determined rules

Concept: Non-Programmed Decision

a type of decision making that deals with: -Unique decisions -Poorly defined -Unstructured -Important conseqeunces

Define: Management By Objective

a type of operational planning where managers of various department define their goals, projects, and persons responsible.

Define: Tactical Goals

goals that are designed to help execute the major strategic plan and accomplish a specific part of the company's strategy

Define: Strategic goals

official goals, broad statements, describing the organizations future

Concept Entrepreneurial Sacrifice

the ability to preserve and stay positive

Concept: Span of management

the number of employees reporting to a supervisor With a larger span of management: -Less supervision = larger span of control -Work is stable and routine -Subordinates perform similar work -Highly trained -Rules and procedures are defined -Involves little planning with nonsupervised activities -Managers prefered choice

Concept: Delegation

the process managers use to transfer authority and responsibility down the chain

Define: Operational Goals

the results expected from the departments and work groups

Concept: Unity of Command

when each employee is held accountable to one supervisor