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Principles of Management > Principles of MGMT Final > Flashcards

Principles of MGMT Final Flashcards

1
Q

Resources

A

The assets, capabilities, processes, employee time, information, and knowledge used by an organization to:
− Improve its effectiveness and efficiency
− Create and sustain competitive advantage

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2
Q

Competitive advantage

A

Providing greater value for customers than competitors can

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3
Q

Sustainable competitive advantage

A

A competitive advantage that other companies have tried unsuccessfully to duplicate and have, for the moment, stopped trying to duplicate

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4
Q

Resources that contribute to competitive advantage

A

− Valuable resource: improve efficiency and effectiveness
− Rare resource: not possessed by many competing firms
− Imperfectly imitable resource: impossible for
other firms to duplicate
− Nonsubstitutable resource: produces value or competitive advantage and has no equivalent substitutes or replacements

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5
Q

Competitive innertia

A

A reluctance to change strategies or competitive practices that have been successful in the past

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6
Q

Strategic dissonance

A

A discrepancy between a company’s intended strategy and the strategic actions managers take when implementing that strategy

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7
Q

Business that suffered from strategic drift

A

Kodak: Failed to respond to rapid development
Nokia: Failed to respond to smartphone technology

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8
Q

SWOT

A

An assessment of the strengths and weaknesses in an organization’s internal environment and the opportunities and threats in its external environment

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9
Q

Distinctive competence

A

What a company can make, do, or perform better than its competitors

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10
Q

Shadow-strategy task force

A

A committee within a company that analyzes the company’s own weaknesses to determine how competitors could exploit them for competitive advantage

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11
Q

Six Sigma

A

A set of quality-control tools that businesses can use to eliminate effects and improve processes to help boost their profits

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12
Q

Core capabilities

A

The internal decision-making routines, problem-solving processes, and organizational cultures that determine how efficiently inputs can be turned into outputs

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13
Q

Strategic group

A

A group of companies within an industry against which top managers compare, evaluate, and benchmark strategic threats and opportunities

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14
Q

Core firms

A

The central companies in a strategic group

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15
Q

Secondary firms

A

The firms in a strategic group that follow strategies related to but somewhat different from those of the core firms

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16
Q

Core capabilities of an esports company

A

▪ Establishing a presence in the esports world
▪ Determining gaming platforms to support
▪ Enlisting various individual players and coaches
▪ Arranging competitions and sponsorships

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17
Q

Strategic reference points

A

The strategic targets managers use to measure whether a firm has developed the core competencies it needs to achieve a sustainable competitive advantage

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18
Q

Corporate-level strategy

A

The overall organizational strategy that addresses the question “What business or businesses are we in or should we be in?”

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19
Q

Diversification

A

A strategy for reducing risk by buying a variety of items so that the failure of one stock or one business does not doom the entire portfolio

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20
Q

Portfolio strategy

A

A corporate-level strategy that minimizes risk by diversifying investment among various businesses or product lines

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21
Q

BCG Matrix

A

A portfolio strategy developed by the Boston Consulting Group that categorizes a corporation’s businesses by growth rate and relative market share and helps managers decide how to invest corporate funds

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22
Q

Strategy approaches
Classical

A

Is based on achieving sustainable competitive advantage by positioning a firm optimally in an attractive market.

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23
Q

Strategy approaches
Visionary

A

Empowers a firm to create an industry with some degree of predictability by seeing an opportunity and pursuing it single-mindedly

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24
Q

Strategy approaches
Adaptive

A

Rests on the idea of serial temporary advantage.

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25
Q

Strategy approaches
Shaping

A

Mold or reshape an industry by influencing the development of a market in its favor through coordination with other players

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26
Q

Strategy approaches
Renewal

A

Refreshes the viability and competitiveness of a firm when it is operating in a harsh environment

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27
Q

BCG Matrix
Cash Cow

A

(high market share/low growth rate) - Studio Entertainment and consumer products are both mature segments but still earn high revenues

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28
Q

BCG Matrix
Star

A

(high market share/high growth rate) - media networks and theme parks (although COVID-19 may present a shift for theme parks)

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29
Q

BCG Matrix
Question mark

A

(low market share/high growth rate) - Internet marketing has potential when looking at streaming considerations for future growth

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30
Q

BCG Matrix
Dog

A

(low market share/low growth rate): interactive/digital games are a segment the company either needs to retrench or invest to turn into cash cows

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31
Q

Grand Strategy

A

A broad corporate-level strategic plan used to achieve strategic goals and guide the strategic alternatives that managers of individual businesses or subunits may use

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32
Q

Growth Strategy

A

A strategy that focuses on increasing profits, revenues, market share, or the number of places in which the company does business
− Grow externally through merger or acquisition
− Grow internally through expanding exiting business or creating and growing new businesses

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33
Q

Stability strategy

A

A strategy that focuses on improving the way in which the company sells the same products or services to the same customers

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34
Q

Retrenchment strategy

A

A strategy that focuses on turning around very poor company performance by shrinking the size or scope of the business
− by making significant cost reductions by laying off employees; closing poorly performing stores, offices, or manufacturing plants
− by closing or selling entire lines of products or services

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35
Q

Recovery

A

The strategic actions taken after retrenchment to return to a growth strategy

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36
Q

Cost leadership

A

Producing a product or service of acceptable quality at consistently lower production costs than competitors can, so that the firm can offer the product or service at the lowest price in the industry

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37
Q

Defenders

A

Companies using an adaptive strategy aimed at defending strategic positions by
− seeking moderate, steady growth
− offering a limited range of high-quality products and services to a well-defined set of customers

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38
Q

Prospectors

A

Companies using an adaptive strategy that seeks fast growth by
− searching for new market opportunities
− encouraging risk taking
− being the first to bring innovative new products to market

39
Q

Analyzers

A

Companies using an adaptive strategy that seeks to minimize risk and maximize profits by following or imitating the proven successes of prospectors

40
Q

Reactors

A

Companies that do not follow a consistent adaptive strategy but instead react to changes in the external environment after they occur

41
Q

Organizational motivation

A

The successful implementation of creative ideas in organizations

42
Q

Technology Cycle

A

A cycle that begins with the birth of a new technology and ends when the technology reaches its limits and is replaced by a newer, substantially better technology

43
Q

Technological innovation
Product innovation

A

The introduction of a good or service that is new or significantly improved with respect to its characteristics or intended uses

44
Q

Technological innovation
Process innovation

A

The implementation of a new or significantly improved production or delivery method

45
Q

Non-technological innovation
Marketing innovation

A

The implementation of a new marketing method involving significant changes in product design or packaging, product placement, product promotion or pricing

46
Q

Non-technological innovation
Organisational innovation

A

The implementation of a new organizational method in the firm’s business practices, workplace organization or external relations

47
Q

Organizations apply process innovation to…

A
  • Decrease cost units of production or delivery
  • To reduce the cost per product produces
  • To increase the number of products produced
  • To increase the quality and efficiency of the process
48
Q

S-curve pattern of innovation

A

A pattern of technological innovation characterized by slow initial progress, then rapid progress, and then slow progress again as a technology matures and reaches its limits

49
Q

S-curve pattern of innovation - Slope

A

− Steep slope indicates that small amounts of effort will result in significant increases in performance
− Flat slope indicates that increased effort will bring small improvements in performance

50
Q

Innovation Streams

A

Patterns of innovation over time that can create sustainable competitive advantage

51
Q

Innovation Streams Phases
Technological discontinuity

A

Performance or functional breakthrough created by a scientific advance or a unique combination of existing technologies

52
Q

Innovation Streams Phases
Discontinuous Change

A

Phase of technology cycle characterized by
▪ Technological substitution: the purchase of new technologies to replace older ones
▪ Design competition: competition between old and new technologies to establish a new technological standard or dominant design

53
Q

Dominant design

A

Discontinuous change is followed by mergence of a dominant design. A new technological design/process that becomes the accepted market standard.
1. Indicates which companies will prosper and which will face technological lockout
2. Signals shift from experimentation and competition to incremental change

54
Q

Components of creative Work Environment

A
  • Supervisory encouragement
  • Work Group encouragement
  • Freedom
  • Lack of organizational impediments
  • Challenging work
  • Organizational encouragment
55
Q

Experiential approach to innovation

A

An approach to innovation that assumes a highly uncertain environment and uses intuition, flexible options, and hands-on experience to reduce uncertainty and accelerate learning and understanding.
− Design iteration
− Testing
− Milestones
− Multifunctional teams
− Powerful leaders

56
Q

Experiential - Design iteration

A

A cycle of repetition in which a company tests a prototype of a new product or service, improves on that design, and then builds and tests the improved prototype

57
Q

Compression approach to innovation

A

An approach that assumes that incremental innovation can be planned using a series of steps and that compressing those steps can speed innovation.
− Helps avoid unnecessary steps
− Enables developers to sequence steps in the right order to avoid wasted time and delays between steps
− Reduces misunderstandings and improves coordination

58
Q

Generational change

A

Change based on incremental improvements to a dominant technological design such that the improved technology is fully backward compatible with the older technology.
− supplier involvement
− shortening the time of individual steps
− overlapping steps

59
Q

Organizational decline

A

A large decrease in organizational performance that occurs when companies don’t anticipate, recognize, neutralize, or adapt to the internal or external pressures that threaten their survival

60
Q

Organizational decline
Stages

A

− Blinded: key managers fail to recognize the internal or external changes
− Inaction: recognition of problems fails to prompt managers to act
− Faulty action: management uses belt-tightening plans to cut costs, increase efficiency, and restore profits
− Crisis: either bankruptcy, dissolution, or restructuring becomes necessary
− Dissolution: company is dissolved because of failure to make needed changes

61
Q

Resistance to change

A

Opposition to change resulting from self-interest, misunderstanding and distrust, and a general intolerance for change

62
Q

Organizational change process proposed by Kurt Lewin

A
  1. Unfreezing: getting the people affected by change to believe that change is needed
  2. Change intervention: the process used to get workers and managers to change their behaviors and work practices
  3. Refreezing: supporting and reinforcing new changes so that they stick
63
Q

Methods Used to Manage Resistance to Change

A
  • Educate employees about the need for change
  • Communicate change-related information to employees
  • Encourage employee participation in planning and implementing change
  • Allow employees to discuss and agree on who will do what after the change
  • Offer significant managerial support
  • Coercion: the use of formal power and authority to force others to change
64
Q

Results-driven change

A

Change created quickly by focusing on the measurement and improvement of results

65
Q

Agile change

A

Using daily standups, or “huddles,” to review the progress of multidisciplinary teams or “Scrums,” who break problems into small, clearly defined parts that team members work on in sprints

66
Q

General Electric fast works

A

Quickly experimenting with new ideas to solve customer problems and learn from repeated tests and improvements

67
Q

Organizational development

A

A philosophy and collection of planned change interventions designed to improve an organization’s long-term health and performance

68
Q

Ki wo tsukau

A

It is the idea that a person will automatically take into consideration the people around them and accomodate to their needs as best they can.
Using a soft voice to not disturb your neighbours or people around you

69
Q

General Steps for Organizational Development Interventions

A
  1. Entry
  2. Starup
  3. Assessment & feedback
  4. Action planning
  5. Intervention
  6. Evaluation
  7. Adoption
  8. Separation
70
Q

Multinational corporation

A

A corporation that owns businesses in two or more countries

71
Q

Direct foreign investment

A

A method of investment in which a company builds a new business or buys an existing business in a foreign country

72
Q

Trade barriers

A

Government-imposed regulations that increase the cost and restrict the number of imported goods

73
Q

Protectionism

A

A government’s use of trade barriers to shield domestic companies and their workers from foreign competition

74
Q

Tariff

A

A direct tax on imported goods

75
Q

Nontariff barriers

A

Nontax methods of increasing the cost or reducing the volume of imported goods

76
Q

Quota

A

A limit on the number or volume of imported products

77
Q

Voluntary export restrains

A

Voluntarily imposed limits on the number or volume of products exported to a particular country

78
Q

Government import standard

A

A standard ostensibly establishes to protect health and safety of citizens but, in reality, is often used to restrict imports

79
Q

Subsidies

A

Government loans, grants, and tax deferments given to domestic companies to protect them from foreign competition

80
Q

Customs classification

A

A classification assigned to imported products by government officials that affects the size of the tariff and the imposition of import quotas

81
Q

Functions of World Trade Organization

A
  • Administering WTO trade agreements
  • Forum for trade negotiations
  • Handling trade disputes
  • Monitoring national trade policies
  • Technical assistance and training for developing organizations
82
Q

Free-Trade Agreements Matter

A
  • Increase choices, competition, and purchasing power
  • Create new businesses opportunities and intensify competition
83
Q

Global consistency

A

When a multinational company has offices, manufacturing plants, and distribution facilities in different countries and runs them all using the same rules, guidelines, policies, and procedures

84
Q

Local adaptation

A

Modifying rules, guidelines, policies, and procedures to adapt to differences in foreign customers, governments, and regulatory agencies

85
Q

Cooperative contract

A

Foreign business owner pays a company a fee for the right to conduct that business in his or her country
- Licensing
- Franchise

86
Q

Joint venture

A

A strategic alliance in which two existing companies collaborate to form a third, independent company or engage in a clearly defined business activity

87
Q

Wholly owned affiliates

A

Foreign offices, facilities, and manufacturing plants that are 100 percent owned by the parent company
- Advantage: parent company receives all of profits and has control
- Disadvantage: expense of building new operations

88
Q

Global new ventures

A

New companies that are founded with an active global strategy and have sales, employees, and financing in different countries. Easy transportation, low-cost communication technologies, and experienced businesspeople

89
Q

Purchasing power

A

The relative cost of a standard set of goods and services in different countries
- Degree of global competition
- Determined by the number and quality of companies that already compete in a foreign market

90
Q

Political uncertainty

A

The risk of major changes in political regimes that can result from war, revolution, death of political leaders, social unrest, or other influential events

91
Q

Policy uncertainty

A

The risk associated with changes in laws and government policies that directly affect the way foreign companies conduct business

92
Q

Strategies to Minimize Political Risk

A
  • Avoidance: divesting or selling the business, postponing investment until risk shrinks
  • Control: lobbying foreign governments or international trade agencies to change laws, regulations, or trade barriers
  • Cooperation: using joint ventures and collaborative contracts
93
Q

Hofstede’s cultural dimensions across countries

A
  • Power distance: distribution
  • Individualism: self-sufficiency
  • Masculinity/femininity: assertive vs nurturing cultures
  • Uncertainty avoidance: comfort level with unpredictable
  • Short-term/long-term orientation: gratification
  • Indulgence vs restrain: strictness of social norms
94
Q

Expatriate

A

Someone who lives and works outside his or her native country. Language and cross-cultural training:
- Documentary training: identifying differences between cultures
- Cultural simulations: practice adapting to cultural differences
- Field simulation: placed in an ethnic neighborhood for 2-4 hours to talk to residents about cultural differences

Principles of Management (2 decks)

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