exam 2 kine 3400
four corporate growth strategies
-concentrate -integrate -diversify -growth strategies include mergers and acquisitions
four corporate-level grand strategies
-growth -stability -turnaround and retrenchment -combination
four steps in writing objectives
1. Start with "to" 2. Add an action verb 3. Insert a single, specific, and measurable result 4. Choose a target date
five steps in analysis of company situation
1. assess present strategy 2. analyze SWOTs (strengths, weaknesses, opportunities, threats) 3. assess competitive strength 4. make conclusions 5. decide what issues to address
five steps in strategic process
1. develop the mission 2. analyzing the environment 3. setting objectives 4. developing strategies 5. implementing and controlling strategies
five competitive forces
1. rivalry between competing firms 2. potential development of substitute products and services 3. potential entry of new competitors 4. bargaining power of suppliers 5. bargaining power of customers
three steps in management by objective process
MBO - the process by which managers and their teams jointly set objectives, periodically evaluate performance, and reward according to results 1. Set individual objectives and plans 2. Give feedback and evaluate performance 3. reward according to performance
decision trees
a diagram of alternatives. Breaking it down into alternatives and subalternatives
consensus mapping
a process for developing group agreement on problem's solution
Delphi Technique
a series of confidential questionnaires are used with a panel of experts to reach agreement on an issue. commonly used to identify trends that will affect a team or organization
nominal grouping
a structured voting method is used to generate and evaluate alternatives 1. list ideas 2. record the ideas 3.clarify the ideas 4. rank the ideas 5. discuss the rankings 6. vote
creativity
a way of thinking that generates new solutions to problems and new ways to approach opportunities
queuing theory
addresses waiting time
innovation
alters what is established by introducing something new
capital budgeting
analyzes investments in assets that will be used to generate revenues
six advantages of group decision making
better quality decisions, more info more alternatives, better understanding of problem and decision, greater commitment to the decision, improved morale and motivation, good training
five creativity and innovation techniques
brainstorming, synectics, nominal grouping, consensus mapping, the delphi technique
four quantitative analyses
break-even analysis, capital budgeting, queuing theory, probability theory
three decision-making conditions
certain, risky, uncertain
two decision-making models
classical rationale model ("optimizing") and bounded rationale model (uses "satisificing" and selects the first alternative that meets certain specified minimal criteria
cost-benefit analysis
combines subjective methods and mathematical techniques to compare alternative courses of action
Step 6: Control the Results
control methods should be developed as part of your plan, establish checkpoints to monitor progress in order to make sure that the chosen alternative is solving the problem
step 1: define the problem or opportunity
define the problem you want to solve or opportunity you want to capitalize on. Classifying the problem so you know which decision model you want to use
situation analysis
draws out those features in a company's environment that most directly frame its strategic window of options and opportunities THREE PARTS 1. analysis of the company's industry and its competition 2. analysis of the company's particular situation 3. analysis of the company's competitive advantage
optimizing
endeavors to select the best possible alternative
step 3: generate alternatives
exploring other alternatives based on facts, not just opinions
three planning benefits
faster decision making, better management of resources, and clearer identification of action steps needed to reach important goals
break-even analysis
forecasting the volume of sales and the cost of production
brainstorming
group members generate as many alternatives as they can in a short period of time
probability theory
helps managers make decisions in risky environmental conditions. a probability for the chance of failure is assigned to each of the alternatives. usually done by a payoff matrix or decision tree
certain business conditions
know the outcome of each alternative in advance so you can take quick action
uncertain business conditions
lack of information or knowledge makes the outcomes unknown or accurate probabilities cannot be made
strategic plans
management develops a mission and long-term objectives and determines in advance how they will be accomplished
operational plans
management sees short-term objectives and determines in advance how they will be accomplished
four functional-level operational strategies
marketing, operations, human resources, and finance
"must" vs "want" criteria
must criteria - have to be met to reach the objective want criteria - desirable but not absolutely necessary
step 5: implement the decision
need to develop a detailed plan to achieve your objective.
risky business conditions
not knowing each outcome in advance but can assign probabilities of occurrence for each one
synectics
novel alternatives are generated through role-playing and fantasizing
acquisition
one business buys all or part of another company
three stages in the creative process
prepare, incubate and illuminate, evaluate
two classifications of innovation
product innovation (new things including products) and process innovation (new ways of doing things)
two decision structures
programmed and nonprogrammed
three business-level adaptive strategies
prospecting, defending, analyzing
programmed decisions
recurring or routine situations in which the decision maker shoud use decision rules or organizational policies and procedures to make the decision
three decision-making styles
reflexive- "shoot from the hip" snap decisions without considering all info and considering other alternatives reflective- consistent -
step 4: select the most feasible alternative
selecting the "best" alternative. most feasible might not always be the best alternative though. Use an ethical guide to consider the ethics of each alternative
step 2: set objectives and criteria
set an objective that states the end result to solve the problem or capitalize on the opportunity
nonprogrammed decisions
significant but nonrecurring and nonroutine. Should use decision making model. take longer. must be expensive or have major consequences
competitive advantage
specifies how the organization offers unique customer value
goals
state general targets to hit these are the target
objectives
state what is to be done in specific and measurable terms by a certain target date help you know if you are hitting the target
forward integrations
the line of business is closer to the final customer
backward integations
the line of business is farther away from the final customer
corporate level strategies
the organization's plan for managing multiple lines of businesses
functional-level strategies
the organization's plan for managing one area of the business. ex. marketing, finance, accounting etc
business-level strategies
the organization's plan for managing one line of business
four characteristics of useful information
timeliness, quality, completeness, relevance
merger
two companies form one new company
five disadvantages of group decision making
wasted time and slower decision making, satisficing, domination by subgroup or individual and goal displacement, conformity and groupthink, social loafing
satisficing
when meetings are not run effectively "lets be done with this attitude"