MGMT 309 Exam 2 Prof q's & surrounding material

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What are the three time frames?

Long term Intermediate term Short term

What two factors does the BCG matrix use to evaluate an organization's set of businesses:

market growth rate and relative market share

Reduce manufacturing and other costs tries to gain a competitive advantage by reducing its costs below the costs of competing firms. By keeping costs low, the organization can sell its products at low prices and still make a profit.

overall cost leadership

For each type of goal listed below, indicate the level of management responsible for setting that type of goal. Strategic goals

top

A real and meaningful effort by an organization to change its whole approach to business in order to make quality a guiding factor in everything the organization does.

total quality management

invest heavily

star

Decision making conditions are

certainty risk uncertainty

Porter's Generic Strategies

differentiation strategy overall cost leadership strategy focus strategy

The ultimate goal of a company

mission

The choice of physical configuration of facilities

layout

What are the important purposes of goals?

1. Goals provide guidance and a unified direction for people in the organization; help people understand where the organization is going and why getting there is important. 2. Goal setting practices strongly affect other aspects of planning. It promotes good planning which facilitates future goal setting. 3. Goals can serve as a source of motivation for employees of the organization especially specific and moderately difficult ones that result in a reward. 4. Goals provide an effective mechanism for evaluation and control; performance can be assessed in the future in terms of how successfully todays goals are accomplished.

What are the 4 basic levels of goals?

1. mission 2. strategic 3. tactical 4. operational

If the company uses Porter's cost leadership strategy, what should marketing and sales emphasize?

The good value of the company's products

When referring to a swot analysis, the T stands for ---- and it refers to factors that are ---- to the organization

Threats, external

Cisco managers sat down recently to review the portfolio of their company. They looked at all of the businesses the company had acquired in the last year and determined how much money each acquisition was making for Cisco. They then decided which companies to keep and which to spin off.

corporate level strategy

Google managers ask, "Which company should we acquire next to access new technologies and customers?"

corporate level strategy

the set of strategic alternatives from which an organization chooses as it manages its operations simultaneously across several industries and several markets.

corporate level strategy

Low relative market share, high market growth rate

cow

take profits

cows

What is the cornerstone of planning?

decision making

Distinguish products or services

differentiation

Large products, such as a long-range bomber like the Northrop Grumman B-21 Raider, are too cumbersome to move through an assembly line, so a --- layout will be most effective.

fixed position

When the organization is creating a few very large and complex products. Aircraft manufacturers like Boeing and shipbuilders like General Dynamics use this method.

fixed position layout

Concentrate on specific regional market, product market, or group of buyers

focus

ZombieSmith manufactures gaming miniatures. Its highly specialized products and targeted customer base indicate that ZombieSmith is using a(n) ---- to gain a competitive advantage.

focus strategy

Represent one widely used method for managing the goal-setting and planning processes concurrently to ensure that both are done effectively

formal goal setting

What is critical to organizational effectiveness?

goals

Intuition and experience are major factors in

nonprogrammed decisions

Imagine that your friend Eve has lived all her life in Yuma, Arizona, and has never traveled far from her hometown, but has applied to colleges in Idaho, Michigan, New Hampshire, and Florida. Despite her ----- , Eve thought moving to a previously unexplored city might be interesting.

state of uncertainty

The decision maker does not know all the alternatives, the risks associated with each, or the likely consequences of each alternative. This --- stems from the complexity and dynamism of contemporary organizations and their environments.

state of uncertainty

Face the hard facts and build a culture in which people are encouraged to tell the truth, even if it's unpleasant.

step 1 of evidence based management

A form of business that combines and transforms resources into tangible outcomes that are then sold to others.

manufacturing

Developed by middle - and lower-level managers. Have a short-term focus and are relatively narrow in scope. Each one deals with a fairly small set of activities.

operational plans

Skills and capabilities that enable an organization to conceive of and implement its strategies. May include such things as a deep pool of managerial talent, surplus capital, a unique reputation and/or brand name, and well-established distribution channels.

operational strengths

the practice of duplicating another firm's distinctive competence and thereby implementing a valuable strategy.

strategic imitation

A comprehensive plan for approaching an organizations goals.

strategy

Decision involves choosing the amount of products, services, or both that can be produced by the organization. Demand is a major consideration. Its a high-risk decision because of the uncertainties of future product demand and the large monetary stakes involved

capacity decision

miles and snow typology

Prospector strategy, Defender strategy, Analyzer strategy Reactor strategy

Which column best describes the characteristics associated with strategic plans?

A. Set by board of directors, top management; Time frame- long range; Focus on sources of competitive advantage, scope - general

provides a framework for evaluating the relative performance of businesses in which a diversified organization operates.

BCG matrix

If the company has decided to use Miles and Snow's analyzer strategy, which of the following actions would best support this strategy?

Develop decision-making processes that optimize goal setting.

Which one of the goals listed is an example of a strategic goal Twitter might set?

Expand globally with a focus on Latin America

Improved employee motivation Allows employees a voice in determining expectations Helps identify superior managerial talent for future promotion Facilitates control Communication is enhanced through the process of discussion and collaboration

Formal Goal Setting Strengths

Lack of top-management support Some firms overemphasize quantitative goals and plans and burden their systems with too much paperwork and record keeping

Formal Goal Setting Weaknesses

What does the organizations mission consist of?

Strategic goals and plans Tactical goals and plans Operational goals and plans

describes how decisions often are actually made

administrative model

use incomplete and imperfect information are constrained by bounded rationality tend to "satisfice" when making decisions.

administrative model

Maintains current markets and current customer satisfaction with moderate emphasis on innovation

analyzer

For each type of goal listed below, indicate the level of management responsible for setting that type of goal. Mission statement

board of directors

when families of products can follow similar flow paths. A clothing manufacturer, for example, might create a designated area dedicated to making a family of pockets, such as pockets for shirts, coats, blouses, and slacks.

cellular layout

rarely if ever actually exists: Decision makers have complete information about the decision situation and possible alternatives. They can effectively eliminate uncertainty to achieve a decision condition of certainty. They evaluate all aspects of the decision situation logically and rationally.

classical model of decision making

an organizational capability possessed by a large number of competing firms.

common strength

The determination of alternative courses of action to be taken if an intended plan of action is unexpectedly disrupted or rendered inappropriate

contingency plan

Increasing the flexibility of an organization's workforce by training employees to perform a number of different jobs. Allows the firm to function with fewer workers because workers can be transferred easily to areas where they are most needed.

cross training

For each type of goal listed below, indicate the level of management responsible for setting that type of goal. operational goals

lower

More firms begin producing the product, and sales continue to increase. Important management issues include ensuring quality and delivery and beginning to differentiate an organization's product from competitors' products. Entry into the industry during this stage may threaten an organization's competitive advantage; thus, strategies to slow the entry of competitors are important.

growth stage

Demand may be very high, sometimes outpacing the firm's ability to supply the product. At this stage, managers need to focus their efforts on "getting product out the door" without sacrificing quality. Managing growth by hiring new employees and managing inventories and cash flow are also concerns during this stage.

introduction stage

Overall demand growth for a product begins to slow down, and the number of new firms producing the product begins to decline. The number of established firms producing the product may also begin to decline.

maturity stage

For each type of goal listed below, indicate the level of management responsible for setting that type of goal. Tactical Goals

middle

A decision that is relatively unstructured and occur much less often. Managers faced with such decisions must treat each one as unique, investing enormous amounts of time, energy, and resources into exploring the situation from all perspectives.

nonprogrammed decision

A video production firm plans to hire a new creative director. Several applicants have the necessary technical skills. The hiring manager is now viewing the digital portfolios submitted by the applicants to determine which one should be offered an in-person interview for the creative director role. This is a:

nonprogrammed decision

Goals set by and for lower level managers. Focus on shorter term issues associated with tactical goals. Often short term goal.

operational

At Hair's Why, your employees specialize in different services. Some provide only nail services. Others provide only hair services. Which layout will be most efficient for you given this kind of employee specialization?

process layout

Used in operations settings that create a variety of products or activities. Auto repair shops and health care clinics are good examples.

process layout

Most assembly lines use this format Appropriate when large quantities of a single product are needed.

product layout

shows how sales volume changes over time of product

product life cycle

Decisions also have to be made regarding the level of quality desired, the optimal cost of each product or service, and exactly how each is to be designed

product service mix

Managers have to make a number of decisions about their products and services, starting with how many and what kinds to offer.

product service mix

When companies such as Hatteras Hammocks design their operations systems, they make several types of decisions, including those that deal with ---- , capacity, and facilities.

product service mix

As manager of Hair's Why, you frequently hear customers ask for other services beyond what you provide. Hair's Why focuses on color and cuts, but customers sometimes request waxing and tanning. As you consider the requests, what kind of decision are you making?

product service mix decision

types of layouts

product, process, fixed position, cellular

A number of issues and decisions must be addressed as operations systems are designed. The most basic ones are ----

product-service mix, capacity, and facilities

decision makers tend to search only until they identify an alternative that meets some minimum standard of sufficiency

satisficing

Innovative and growth oriented, searches for new markets and new growth opportunities, encourages risk taking

prospector

To give subordinates a voice in the goal-setting and planning processes and to clarify for them exactly what they are expected to accomplish in a given time span.

purpose of formal goal setting

refers to the methods by which strategies are operationalized or executed within the organization

strategy implementation

What are the internal analysis's in SWOT

strengths and weaknesses

SWOT stands for

strengths, weaknesses, opportunities, threats

the process of managing operations control, resource acquisition and purchasing, and inventory so as to improve overall efficiency and effectiveness.

supply chain management

Goals set by and for middle managers. Focus on how to operationalize actions necessary to achieve the strategic goals. Often intermediate term goal.

tactical

Involve upper and middle management and have a somewhat shorter time horizon with more specific and concrete focus. Concerned with getting things done instead of deciding what to do.

tactical plans

Last week, senior managers in the Post-it® Note division at 3M met to determine the best way to handle their product. Regardless of how 3M positions its other products, Post-it Notes will continue to be widely sold at a premium price. The company will continue to develop new Post-it products to attract new buyers.

business level strategy

Managers at Annie's, a company that makes organic foods, are considering the best ways for the company to position its products after a great IPO. They decide on a focus strategy, targeting sales at people who care about what's in their food.

business level strategy

The set of strategic alternatives from which an organization chooses as it conducts business in a particular industry or market. Such alternatives help the organization focus its competitive efforts for each industry or market in a targeted and focused manner.

business level strategy

Low relative market share, low market growth rate

dog

sell business

dogs

a pattern of action that develops over time in an organization in the absence of mission and goals or despite mission and goals.

emergent strategy

4 Components of Total Quality Management

employee involvement technology materials methods

Decision makers sometimes make decisions and then become so committed to the courses of action suggested by those decisions that they stay with them even when the decisions appear to have been wrong.

escalation

Management decisions should be based on the best evidence, managers should systematically learn from experience, and organizational practices should reflect sound principles of thought and analysis.

evidence based management

What are the goals of SWOT (good strategies)

exploiting an organization's opportunities and strengths while neutralizing its threats and avoiding (or correcting) its weaknesses.

the physical locations where products or services are created, stored, and distributed.

facilities

product life cycle stages

introduction, growth, maturity, decline

An innate belief about something, without conscious consideration. Managers sometimes decide to do something because it "feels right" or they have a "hunch." This feeling is usually not arbitrary, however

intuition

UNIQLO has had strong demand for its products and it entered the growth stage quickly. Which of the following challenges is most common during this stage?

managing inventories

After years of saving, you finally have enough money for the down payment on a house. Now you've started gathering all of the information you can about houses in a 25-square-mile area. The decision you make about which house you will buy is a:

nonprogrammed decision

Beyond its direct impact on such factors as competitiveness, quality, and productivity, ------ also directly influences the organization's overall level of effectiveness.

operations management

The set of managerial activities used by an organization to transform resource inputs into products and services.

operations management

What are the external analysis's in SWOT

opportunities and threats

What is the outline of an organizations purpose, premise, values, and directions?

organizations mission

High relative market share, low market growth rate

question marks

invest cautiously

question marks

No clear strategy, reacts to changes in the environment, drifts with events

reactor

UNIQLO tries to monitor its competitors' actions, but notices that one of these competitors seems to shift strategies often and does not anticipate trends in the environment. Which type of strategy does the competitor appear to have?

reactor

Steps in rational decision making

recognize and define the decision situation identify appropriate alternatives; evaluate each alternative in terms of its feasibility, satisfactoriness, and consequences; select the best alternative; implement the chosen alternative; and follow up and evaluate the results of the chosen alternative

The extent to which a decision maker is willing to gamble when making a decision

risk propensity

is any artificial device that can perform functions ordinarily thought to be appropriate for human beings. --- refers to the science and technology of the construction, maintenance, and use of ----.

robots

One that transforms resources into an intangible output and creates time or place utility for its customers.

service organization

what is managerial ethics?

standards of behavior that guide individual managers in their work

Be committed to "fact-based" decision making—which means being committed to getting the best evidence and using it to guide actions.

step 2 of evidence based management

Treat your organization as an unfinished prototype—encourage experimentation and learning by doing.

step 3 of evidence based management

Look for the risks and drawbacks in what people recommend (even the best medicine has side effects).

step 4 of evidence based management

Avoid basing decisions on untested but strongly held beliefs, what you have done in the past, or on uncritical "benchmarking" of what winners do.

step 5 of evidence based management

What underlies every aspect of goal setting and planning?

decision making

is the act of choosing one alternative from among a set of alternatives

decision making

When designing facilities, decisions must be made about their ---- , which concerns their physical positioning or geographic site.

location

the physical positioning or geographic site of facilities and must be determined by the needs and requirements of the organization.

location

Major facilities decisions pertain to

location and layout

recognizing and defining the nature of a decision situation identifying alternatives choosing the "best" alternative putting it into practic

decision making process

Demand for the product or technology decreases, the number of organizations producing the product drops, and total sales drop. Demand often declines because all those who were interested in purchasing a particular product have already done so.

decline stage

Protects current markets, maintains stable growth, serves current customers

defender

a plan chosen and implemented to support specific goals.

deliberate strategy

What two other reasons organizations set goals for?

difference areas and different time frames

a strength possessed by only a small number of competing firms.

distinctive competence

describes the number of different businesses that an organization is engaged in and the extent to which these businesses are related to one another.

diversification

Until recently, Peter Smith's company had no competition for sales of its one-of-a-kind products. However, two online stores selling similar products recently opened, which represents an ------ to his company.

organizational threats

A decision that is relatively structured or recurs with some frequency (or both). Many decisions about basic operating systems and procedures and standard organizational transactions are of this variety

programmed decision

Every morning when you walk into Starbucks, you order the same thing: a venti green tea Frappuccino with extra whipped cream. You can't drink anything else at Starbucks because you don't like hot beverages, coffee, or black tea, and you like your beverages tall and creamy. Your decision about what to order at Starbucks today is a:

programmed decision

You are the CEO of a large scanner manufacturer. You just caught a department manager embezzling money from your company. The decision you make about whether to fire the department manager is a:

programmed decision

A friend asked if you would like to open a deli near your school's campus, where there are very few inexpensive places to eat. Although a deli probably would be successful, you declined; even the possibility of losing money made you too nervous due to your low

risk propensity

specifies the range of markets in which an organization will compete.

scope

What role does the mission statement play in the planning process?

sets purpose of business

High relative market share, high market growth rate

star

When the decision maker knows with reasonable positivity what the alternatives are and what conditions are associated with each alternative ---- exists

state of certainty

The availability of each alternative and its potential payoffs and costs are all associated with probability estimates.

state of risk

Goals set by and for top management of the organization. Focus on broad, general issues. Often long term goal.

strategic

Most large organizations are engaged in several businesses, industries, and markets. Each business or set of businesses within such an organization is often referred to as

strategic business unit

A comprehensive and ongoing management process aimed at formulating and implementing effective strategies.

strategic management

A general plan outlining decisions of resource allocation, priorities, and action steps necessary to reach ---- goals. Set by board of directions and top management. Extended time horizon and address questions of scope, resource deployment, competitive advantage, and synergy.

strategic plans

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

the set of processes involved in creating or determining the strategies of the organization

strategy formulation


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