Mgt Exam 2

ways to assess the current reality: ___ analysis using ___ to assess competitive potential ___: predicting the future ___: comparing the best

SWOT VRIO forecasting benchmarking

___ is a good first step at gaining insight into whether or not a company has competitive advantage

SWOT analysis

(T/F) Paula is the store manager for a national grocery retailer, and she received the yearly tactical plan from Greg, her district manager. Paula is meeting with her department managers to plan how to implement the specific tasks outlined in Greg's plan for the next year. Paula is engaged in operational planning

T

(T/F) changing organizational culture is essentially a teaching process, a process in which members instruct each other about the organization's preferred values, beliefs, expectations, and behaviors

T

(T/F) the first three steps in the strategic-management process are establishing the mission and the values statement, assessing the current reality, and formulating the grand strategy

T

(T/F) the rational model assumes that managers have complete information, are able to make an unemotional analysis, and are able to make the best decision for the organization

T

Samir owns a dental practice, but business has slowed down significantly over the last six months. Which analysis would you recommend to Samir to help him determine whether his dental practice has competitive potential?

VRIO framework

Once her team's goals were set, Alyssa asked each team member to come up with a(n) ___ to reach the goals means-end chain operating plan business plan action plan

action plan

group problem-solving techniques: reaching for consensus do's: -use ___ skills -involve as many ___ as possible -seek out the ___ behind arguments and dig for the ___ don'ts: -avoid ___ and making an ___ simply to not rock the boat -don't try to achieve consensus by putting questions to a ___

active listening members reasons, facts horse trading, agreement vote

nonrational models describe how managers ___ make decisions

actually

___, ___, & ___ cultures are more strongly related to operational outcomes than ___ cultures

adhocracy, market, hierarchy clan

10 common decision-making biases: rules of thumb or heuristics 1. ___ bias: using only the information available 2. ___ bias: faulty generalizing from a small sample or a single event 3. ___ bias: seeking information to support your point of view 4. ___ bias: money already spent seems to justify continuing 5. ___ bias: being influenced by an initial figure 6. ___ bias: blind to our own blindness 7. ___ bias: the I-knew-it-all-along effect 8. ___ bias: shaping the way a problem is presented 9. ___ bias: feeling overly invested in a decision 10. ___ bias: sorting information into buckets

availability representativeness confirmation sunk-cost anchoring & adjustment bias overconfidence hindsight framing escalation of commitment categorical thinking

which of these would be considered observable artifacts in an organization? awards decorations sales rituals values

awards decorations rituals

SMART goals goal difficulty low: ___ individuals with ___ ability moderate: ___ individuals who are working at ___ impossible: individuals who lack ___ to high goals

committed, adequate committed, capacity commitment

___ is increasingly done with specialized systems & software -some leaders & firms have become exceptional practitioners of ___

data analytics

Porter's five competitive forces form a model for ___ analysis

industry

an organization that has authority centralized in a single person, as well as a flat hierarchy, few rules, & low work specialization, is using a ___ structure

simple

traditional designs (organizational structure) -___: there is only one hierarchical level of management beneath the owner, authority centralized in a single person, flat hierarchy, few rules, low work specialization -___: people with similar occupational specialties are put together in formal groups -___: people with diverse occupational specialties are put together in formal groups by similar products or services, customers or clients, or geographic regions -___: an organization combines functional & divisional chains of command in a grid so that there are two command structures: vertical & horizontal

simple functional divisional matrix

heuristics are strategies that ___ the process of making decisions

simplify

Victoria, a shift manager in a shoe factory, directly supervises 40 employees on her shift. The 40 workers who report directly to Victoria represent her ___ span of direction unity of command span of control hierarchy of authority

span of control

what does SMART stand for in SMART goals?

specific measurable attainable results-oriented (should support the organization's vision) target date (should have deadline dates for attainment)

in the BCG matrix, what does business growth rate refer to?

speed of industry growth

BCG matrix (Boston Consulting Group) high market growth rate, high market share: high market growth rate, low market share: low market growth rate, high market share: low market growth rate, low market share:

stars (definite keepers) question marks (risky new venture, some will become stars, some dogs) cash cows (income finances stars & question marks) dogs (get rid of)

top managers use ___ planning to determine what the organization's long-term goals should be for the next one to five years with the resources they expect to have available

strategic

___ planning: deal with uncertain & highly competitive conditions ___ planning: implement policies & plans of top management, make decisions often without base of clearly defined information procedures ___ planning: decisions often predictable, following well-defined set of routine procedures

strategic tactical operational

___ planning: done by top managers for the next 1-5 years ___ planning: done by middle managers for the next 6-24 months ___ planning: done by first-line managers for the next 1-52 weeks

strategic tactical operational

monitoring the execution of strategy and making adjustments, if necessary, is included in ___

strategic control

After three patients sued Guardian Manor, an assisted living facility, for neglect, missing medications, and improper nutritional offerings, Ivana, the CEO, wants to encourage employees to speak up more and to be comfortable voicing concerns. Which of the following would be encouraged by Ivana? -George tells a story about a time when Guardian Manor was first starting out and how the employees banded together -Sophie creates a system that values employee attendance and productivity

-George tells a story about a time when Guardian Manor was first starting out and how the employees banded together

hindrances to perfectly rational decision making -___: the problems that need solving are often exceedingly complex, beyond understanding -___: there is not enough money to gather all relevant information -___: managers aren't all built the same way, of course, and all have personal limitations and biases that affect their judgement -___: managers have imperfect, fragmentary information about the alternatives and their consequences -___: there is too much information for one person to process -___: some data are considered more important, so certain facts are ignored -___: other managers, including colleagues, have conflicting goals

-complexity -time & money constraints -different cognitive capacity, values, skills, habits, & unconscious reflexes -imperfect information -information overload -differing priorities -conflicting goals

what are reasons for the increase in ethical violations among business leaders in the 21st century?

-digital communications increase exposure to risk from both hackers and whistle-blowers -companies are expanding operations into developing countries where ethical risks may be higher and laws less protective

Why planning and strategic management are important -providing ___ & ___ -encouraging ___ -developing a ___

-direction & momentum -new ideas -sustainable competitive advantage

8 types of organizational structure -traditional designs: ___, ___, ___& ___ structures -___ design: eliminating functional barriers to solve problems, ex. managers from different functional divisions are brought together in teams (cross-functional teams) to solve particular problems -designs that open boundaries between organizations: ___, ___, & ___ structures

-simple, functional, divisional, & matrix -horizontal *the focus on narrow divisional interest yields to a common interest in solving the problems that brought them together, yet team members still have their full-time functional work responsibilities & often still formally report to their own managers above them in the functional-division hierarchy -hollow, modular, & virtual

what are the four stages in rational decision making?

1. identify problem or opportunity 2. think up alternative solutions 3. evaluate alternatives & select solution (ethics, feasibility, effectiveness) 4. implement & evaluate solution chosen

planning & strategic management 1. establish the ___, ___, & ___ 2. assess the ___ 3. formulate the ___ & ___, ___, & ___ 4. implement the ___ 5. maintain ___

1. mission, vision, & values 2. current reality 3. grand strategy & strategic, tactical, & operational plans 4. strategy 5. strategic control

T/F it is common practice today for most small business owners to engage in strategic planning

F evidence reveals that the use of strategic management is associated w increased small business performance, but many small business owners do not engage in strategic planning

(T/F) when using MBO, managers should meet about once a year, either informally or formally, to review progress on meeting objectives

F should be more often- quarterly or monthly

sustainable competitive advantage occurs when an organization is able to get & stay ahead in four areas 1. 2. 3. 4.

being responsive to customers innovating quality effectiveness

the process by which a company compares its performance with that of other high-performing organizations is known as ___

benchmarking

more group problem-solving techniques -___: for increasing creativity -___: someone criticizes, adjust if necessary... -___ method: debate against assumptions -___: review recent decisions in order to identify possible future improvements

brainstorming devil's advocacy dialectic method project post-mortems

strategic thinkers should have a knowledge base shaped like the letter T, where the top of the T represents ___ of knowledge and the stem of the T represents ___ of expertise

breadth depth

___ goals: making lower-level goals align with top goals

cascading

four types of organizational culture ___: employee-focused culture valuing flexibility, not stability ___: a risk-taking culture valuing flexibility ___: a competitive culture valuing profits over employee satisfaction ___: a structured culture valuing stability & effectiveness

clan adhocracy market hierarchy

___ & ___ cultures are more strongly related to desirable leadership behaviors than market & hierarchy cultures

clan & adhocracy

___ & ___ cultures are more strongly related to customer outcomes than ___ & ___ cultures

clan & market adhocracy & hierarchy

___, ___, & ___ cultures are more strongly related to innovation than ___ cultures

clan, adhocracy, market hierarchy

rational decision-making is also known as ___

classical

major features of organizations proposed by Edgar Schein -___: means for unifying members -___: working together for a common purpose -___: work specialization for greater efficiency -___: the chain of command three more that most authorities agree on -___: narrow (or tall) vs. wide (or flat) -___: accountability, responsibility, & delegation -___ vs. ___ of authority

common purpose coordinated effort division of labor hierarchy of authority span of control authority (who reports to who) centralization ( vs. decentralization

___: the ability of an organization to produce goods or services more effectively than its competitors do, thereby outperforming them ___: occurs when an organization is able to get and stay ahead in four areas -being responsive to customers -innovating -quality -effectiveness

competitive advantage sustainable competitive advantage

VRIO is a framework for analyzing a resource or capability to determine its ___ by answering four questions about its ___

competitive strategic potential value, rarity, imitability, & organization

importance of deadlines can help ___ the mind help you ignore ___ matters in favor of what's important provide a mechanism for ___

concentrate extraneous giving ourselves feedback

Raul, a salesperson for the Lovely Landscapes landscaping company, is working with a longtime customer who is interested in either cutting back on the services or getting a better price due to the tight economy. Raul tells his manager, "I want to take care of the customer with the best value. So what do you think is the best package to offer in this situation?" Raul and his manager are trying to utilize the ___

contingency design

___-level strategy answers questions like "what business are we in?" and "what products & services shall we offer?"

corporate

three levels of strategy ___-level strategy: what business or businesses should we be in? ___-level strategy: how should we compete in this industry? ___-level strategy: how can business functions support the business-level strategies?

corporate business functional

which of the following lists represents the order of levels of strategy from the top of the organization downward? business, operational, corporate corporate, business, functional corporate, practical, business executive, functional, practical

corporate, business, functional

when henry ford implemented the assembly-line process to dramatically decrease the time and resources needed to make automobiles, he was pursuing a ___ strategy

cost-leadership

Porter's four competitive strategies ___: keeping costs & prices low for a wide market ___: offering unique & superior value for a wide market ___: keeping costs & prices low for a narrow market ___: offering unique & superior value for a narrow market

cost-leadership differentiation cost-focus focused-differentiation

which career readiness competencies relate to evidence-based decision making?

critical thinking & problem solving computational thinking informational technology application

align an organization's ___, ___, & ___ to support strategic implementation

culture, structure, and HR practices leadership creates this alignment

what is big data used for? -meeting ___ -improving ___ practices -enhancing ___ -advancing ___ -aiding ___ -using big data up and down the ___

customer needs human resource management production efficiency health & medicine public policy hierarchy

when confronted with any proposed action for which a decision is required, a manager works through the ___ by asking the following questions: is the proposed action legal? if yes, does the proposed action maximize shareholder value? if yes, is the proposed action ethical?

decision tree

When Bedisa is analyzing underlying causes, she is engaged in ___

diagnosis

four general decision-making styles -___: action-oriented decision makers who focus on facts -___: careful decision makers who like lots of information & alternative choices -___: decision makers who rely on intuition & have a long-term perspective -___: the most people-oriented decision makers

directive analytical conceptual behavioral

VRIO: is the resource or capability... valuable? no- you have competitive ___ rare? no- you are about ___ competitively costly to imitate? no- you have ___ competitive advantage is the firm organized to exploit value, rarity, & imitability? no- you have ___ competitive advantage if yes to all four- you have ___ competitive advantage

disadvantage equal temporary unexploited sustainable

AI's benefits -humans could be relieved of some of the ___ of work- and even some of the ___ today's jobs often require -organizations continue to use AI to develop ___ -enhanced ___ is a thematic benefit of AI

drudgery, time commitment competitive advantage decision making

according to the competing values framework (CVF), organizational ___ varies along two dimensions

effectiveness

characteristics of group decision making -they are less ___ -their ___ affects decision quality -they may be too ___ -___ counts

efficient size confident knowledge

a ___, also known as an objective, is a specific commitment to achieve a measurable result within a stated period of time long-term goals are generally referred to as ___ goals, ___1yr short-term goals, sometimes referred to as ___ or ___ goals, or just plain goals, ___1yr

goal strategic, >1yr tactical or operational, <1yr

the growth, stability, and defensive strategies are common ___

grand strategies corporate strategies

Terrence's team is very close and tends to agree on most decisions with little discussion. Terrence should be concerned about ___ goal displacement groupthink bounded rationality minority dissent

groupthink

corporate strategy ___: involves expansion, as in sales revenues, market share, number of employees, or number of customers ___: involves little or no significant change ___: involves reduction in organization's efforts, retrenchment

growth stability defensive

___ is a control mechanism for making sure the right people do the right things at the right time matrix structure span of control hierarchy of authority organization chart

hierarchy of authority

___ structure: a company that outsources noncore processes to vendors

hollow

___ structure, also called a teams-based design: the focus on narrow divisional interest yields to a common interest in solving the problems that brought them together, yet team members still have their full-time functional work responsibilities & often still formally report to their own managers above them in the functional-division hierarchy

horizontal

competing values framework (CVF) ___: expresses the extent to which the organization focuses its attention & efforts inward on internal dynamics & employees versus outward towards its external environment & customers ___: expresses the extent to which an organization prefers flexibility & discretion versus stability & control

horizontal vertical

The Safety Committee, a temporary team at the Annapolis Tool & Die Corporation, was established to make the factory floor a safer place. Members of the committee still work in their departments full-time, but they meet twice a month for a few hours as a committee. The Safety Committee is an example of a ___ within an organization

horizontal design

strategic planning is critical, but without ___ it will be worthless

implementation

the toughest challenges to overcome with artificial intelligence are ___, ___, and ___ -unemployment, predictive analytics, & pricing -implementation, data issues, & cost -analytics, groupthink, & implementation -efficiency, cost, & user interface

implementation, data issues, & cost

nonrational decision making: managers find it difficult to make optimal decisions -the ___ model: "it just feels right" -small entrepreneurs often can't afford in-depth market research & so they make decisions based on ___ -intuition that stems from expertise- a person's explicit & tacit knowledge about a person, a situation, an object, or a decision opportunity- is known as a ___ -intuition based on feelings- the involuntary emotional response to those same matters- is known as ___

intuition hunches holistic hunch automated experience

a boundaryless organization is one that ___ -is in control of a central core of key functions & has outsourced other functions to vendors -puts together people with diverse occupational specialties in formal groups -is fluid and highly adaptive and whose members come together to collaborate on common tasks -combines functional and divisional chains of command in a grid so that there are two command structures

is fluid and highly adaptive and whose members come together to collaborate on common tasks

according to Bryan Barry, what things help a manager keep a strategic plan on track? (4 things) keep ___ engage ___ keep ___ stay ___

keep it simple, engage people, keep moving, stay focused

group decision making advantages: -greater pool of ___ -different ___ -intellectual ___ -better understanding of decision ___ -deeper commitment to the ___ disadvantages: -a few people ___ or ___ -___ -___ -___ displacement

knowledge perspectives stimulation rationale decision dominate or intimidate groupthink satisficing goal displacement

to be successful, strategic planning requires a company to have a ___ orientation

long-term

planning/control cycle two planning steps: 1. ___ the plan 2. ___ the plan two control steps: 3. control the direction by ___ 4. control the direction in two ways:

make carry out comparing the results with the plan a. by correcting deviations in the plan being carried out (return to step 2) b. by improving future plans (go to step 1 to start over)

more positive organizational outcomes are associated w ___ cultures

market

BCG matrix measures ___ vs. ___

market growth rate vs. market share

for a manufacturing company that set a strategic goal to reduce waste by 15%, each division in the organization can use the ___ to identify tactical goals that support waste reduction means-end chain standing plans business model action plan

means-end chain

a company's ___ is the purpose of the organization

mission

___ statement: "What is our reason for being?" ___ statement: "What do we want to become?" ___ statement: "What values do we want to emphasize?" ___ planning: done by top managers for the next 1-5 yrs ___ planning: done by middle managers for the next 6-24 months ___ planning: done by first-line managers for the next 1-52 weeks

mission vision values strategic tactical operational

With a ___ structure, a firm assembles portions of product provided by outside contractors

modular

the purpose of management by objectives (MBO) is to ___ subordinates

motivate

span of control? centralization of authority: ___ decentralization of authority: ___

narrow (or tall), decisions made higher wide (or flat), make decisions quicker

Porter's five competitive forces Porter contends that business-level strategies originate in five primary competitive forces in the firm's environment 1. threat of ___ 2. bargaining power of ___ 3. bargaining power of ___ 4. threats of ___ 5. rivalry among ___

new entrants suppliers buyers substitute products or services competitors

MBO: four step process for motivating employees jointly set ___ develop an ___ periodically ___ give ___ & ___

objectives action plan review performance performance appraisal & rewards

___ plan: breaks long-term output into short-term targets or goals, turns strategic plans into actionable short-term goals & action plans ___ plan: defines the course of action (the tactics) needed to achieve a stated goal, contains a project date for completing the desired activities for each tactic

operating action

it is the function of the ___ to take the strategic plan & develop actionable short-term goals that a business can achieve

operating plan

Mitski supervises the returns desk in a department store. Mitski has set a goal for the rest of the year of finishing her daily office work quicker so she can assist at the returns desk earlier in the morning. She knows this will improve customer service and also help decrease theft which will assist the company in achieving its goal of decreasing costs. Finishing her office work quicker represents a(n) ___ for Mitski

operational goal

what's wrong with the rational model of decision making? managers find it difficult to make ___ decisions

optimal rational decision making: managers should make logical & optimal decisions

a ___ is a system of consciously coordinated activities or forces of two or more people

organization

When Angela, a new nurse was hired at Mercy Hospital, the HR manager gave her a handout containing a chart that showed a family-tree-like pattern of boxes and lines. This document, which shows the formal lines of authority and the organization's official positions and work specializations, at the hospital is called an ___

organization chart

___: the shared assumptions that affect how work gets done

organizational culture

the four types of ___ are clan, adhocracy, market, and hierarchy

organizational cultures

Jean-Paul, the store manager at an H&M outlet, was speaking with Patty, his new assistant manager, about the store's system of job relationships; he also explained whom she will report to and who will report to her. Jean-Paul said, "This structure is one of the things that motivates our employees to work together to achieve our company's goals." Jean-Paul was telling Patty about the store's ___

organizational structure

which of the following can leaders pay attention to, measure, & control to change the organization's culture? outcomes activities heroes processes

outcomes activities processes

groupthink -cohesiveness isn't always good -when it results in groupthink, group or team members are friendly & tight-knit but unable to think ___ -the results of groupthink can include failure to ___ & loss of ___

outside the box failure to consider new information & loss of new ideas

a company's overall ability to execute is a function of effectively executing according to three processes:

people, strategy, & operations

the document that details how a company's goals are to be met is a ___

plan

___ can help workers focus on critical problems, choices, and opportunities

planning & strategic management

___ is a data-mining technique used to predict future behavior and anticipate the consequences of change

predictive modeling

types of AI automated business ___ data ___ engaging ___ & ___

processes analysis customers & employees

examples of divisional structure -___ divisions: group activities around similar products or services -___ divisions: tend to group activities around common customers or clients -___: group activities around defined regional locations

product customer geographic

a financial services company with insurance, investments, mortgages, and banking divisions is best characterized as having a ___ product structure functional design horizontal design geographic structure

product structure

evidence-based decision making seven implementation principles: 1. treat your organization as an unfinished ___ 2. no brag, just ___ 3. see yourself and your organization as ___ do 4. evidence-based management is not just for ___ 5. like everything else, you still need to ___ it 6. if all else fails, slow the spread of ___ 7. the best diagnostic question: what happens when people ___?

prototype facts outsiders senior executives sell bad practice fail

what are functional strategies used to accomplish?

putting strategic plans into effect

Rosa hired Luis from Cajun College. He was an amazing employee and exceeded all her expectations. The next year, Rosa received an application for a job opening from another graduate from Cajun College. She was very excited to hire another outstanding candidate. Rosa has ___ bias.

representativeness

companies generally diversify to either grow ___ or reduce ___ they grow ___ because the company now has ___ to sell

revenue risk revenue new products & services

Cornelius owns Grand Games, a high-end store that retails games & toys that are handcrafted and carefully selected. Cornelius targets customers who value artisanal work, such as backgammon sets made from reclaimed lumber by local crafters. There are several stores in the area that sell mass-made toys & games that are much cheaper. To compete, Cornelius offers "game nights" where he sets up game boards and invites local teens and adults to take part in light-hearted competitions, where the winners receive a 10% discount on their next purchase. Cornelius also takes custom orders for game pieces that his customers want, such as 12-sided dice or newly invented games. All of Cornelius's activities are aimed at giving Grand Games a sustainable competitive advantage through ___

strategic positioning

___ is the process of choosing among different strategies and altering them to best fit the organization's needs

strategy formulation

what are the 3 core processes of business identified by Bossidy & Charan? which do they believe is most important?

strategy, operations, people people

SWOT analysis is a situational analysis in which a company assesses its ___

strengths, weaknesses, opportunities, and threats

strategic positioning attempts to achieve ___ by preserving what is ___ about a company strategy is the creation of a unique & valuable position strategy requires ___ in competing strategy involves creating a ___ among activities

sustainable competitive advantage distinctive trade-offs "fit"

how employees learn cultures? 5 things

symbols stories heroes rites & rituals organizational socialization

examples of business analytics

time-series forecast portfolio analysis

it is best to cascade goals organizationwide ___ & ___ must be committed the goals must be applied organizationwide goals must cascade- be linked consistently down through the organization

top management & middle management

forecasting: predicting the future -___ analysis -___: predicting alternative futures

trend contingency planning

according to a recent study, the top reason for CEO departures among America's largest companies is ___

unethical behavior

___: some people are very task-focused at work and do not pay much attention to people issues, whereas others are just the opposite ___: the need for structure or control of one's life -a high need for control or structure means a ___ tolerance for ambiguity -a low need for control or structure means a ___ tolerance for ambiguity

value orientation ambiguity low high

the organization chart ___ hierarchy of authority: who reports to whom ___ specialization: who specializes in what work

vertical (go up) horizontal (go across)

which structures are categorized as organizational designs with open boundaries? mechanistic tall virtual modular hollow

virtual (internet-connected partner for temporary project) modular (outsourcing pieces of a product (rather than processes) to outside firms) hollow (operating w a central core & outsourcing functions to outside vendors)

a ___ statement outlines a long-term goal describing what the company wants to become

vision

when you encounter negative thoughts or sense that others are trying to elicit an emotional response from you, which key skill of being open-minded should you enact?

watch for communication blocks

Which is a mission statement? -we want to be the number one knife seller that all customers turn to when they think of buying a knife -we hope to be the best, by being the best -over the next 10 years, we will be the top seller of cutlery worldwide and be known for our customer service -we will always provide the highest-quality cutlery at the lowest cost to our customers and always give honest, winning customer service, thereby earning a fair profit for our stakeholders

we will always provide the highest-quality cutlery at the lowest cost to our customers and always give honest, winning customer service, thereby earning a fair profit for our stakeholders

examples of big data?

web-browsing data trails social network communications data in corporate databases surveillance data