Prelims Flashcards
(102 cards)
1
Q
• situations in which the leader is the
key force determining the
organization’s success—or lack
thereof.
A
romantic view of leadership
2
Q
• situations in which external forces—
where the leader has limited
influence—determine the
organization’s success.
A
external control view of leadership
3
Q
consists of the analyses, decisions,
and actions an organization undertakes in order to create
and sustain competitive advantages.
A
Strategic management
4
Q
means performing similar
activities better than rivals.
A
Operational effectiveness
5
Q
individuals, groups, and organizations that have a stake in the success of the
organization.
A
stakeholders
6
Q
• tailoring actions to the needs of an organization rather than wasting effort, or “doing
the right thing.”
A
effectiveness
7
Q
• performing actions at a low cost relative to a benchmark, or “doing
things right.”
A
efficiency
8
Q
• the challenge managers face of both aligning resources to take advantage of existing
product markets and proactively exploring new opportunities.
A
ambidexterity
9
Q
strategy in which organizational decisions are determined only by analysis.
A
intended strategy
10
Q
strategy in which organizational decisions are determined by both analysis and unforeseen environmental developments, unanticipated resource constraints, and/or changes in managerial preferences
A
realized strategy
11
Q
study of firms’ external and internal environments, and their fit with organizational vision and goals.
A
Strategy analysis
12
Q
decisions made by firms regarding
investments, commitments, and other
aspects of operations that create and
sustain competitive advantage.
A
strategy formulation
13
Q
actions made by firms that carry out the formulated strategy, including strategic controls, organizational design, and leadership.
A
strategy implementation
14
Q
the relationship among various participants in determining the direction and performance of corporations. The primary participants are (1) the shareholders, (2) the management (led by the chief executive officer), and (3) the board of directors.
A
Corporate governance
15
Q
a firm’s strategy for recognizing and responding to the interests of all its
salient stakeholders.
A
stakeholder management
16
Q
• the expectation that businesses or individuals will strive to improve the overall welfare of society.
A
social responsibility
17
Q
• assessment of a firm’s financial, social, and environmental performance.
A
triple bottom line
18
Q
who have significant profit-and-loss responsibility.
A
Local line leaders
19
Q
who champion and guide ideas, create a learning infrastructure, and establish a domain for taking action.
A
Executive leaders
20
Q
who, although they have little positional power and formal authority, generate their power through the conviction and clarity of their ideas
A
Internal networkers
21
Q
organizational goals ranging
from, at the top, those that are
less specific yet able to evoke
powerful and compelling mental
images, to, at the bottom, those
that are more specific and
measurable.
A
hierarchy of goals
22
Q
organizational goal(s) that evoke(s) powerful and compelling mental images.
A
vision
23
Q
a set of organizational goals that identifies the purpose of the organization, its basis of competition, and competitive advantage.
A
mission statement
24
Q
a set of organizational goals that are used to put into practice the mission statement and that are specific
A
strategic objectives
25
is an economic institution
operating in a socio-economic system.
business
26
should be defined keeping in view its prevailing environment and its needs for survival, growth, and stability, efficiency
Objectives
27
considered to be the primary objective of business.
profit motive
28
People enter into business and stay in
business because they want to earn money, social power and prestige, joy of
achievement and other goals.
29
Every business enterprise has to lay down its multiple objectives to justify its existence.
30
It should earn profit by working under rules and regulations or by following ethical practices.
Profitability
31
Increase in profit, revenue, capacity, number of employees and employee prosperity, etc.
Growth
32
Handling changing
dynamics of markets (continuity of business)- customer satisfaction, creditworthiness, employee satisfaction, etc.
Stability
33
Achieve the best in its field-labor productivity, energy consumption, quality control etc.
Efficiency
34
Capability to survive markets
jolts or shocks. A business should be there with a vision of long-term existence.
Survival
35
refer to the end points towards which all business activities are
directed
Objectives
36
lay down the guidelines for various activities and decide the
direction and amount of efforts needed for these activities.
Objectives
37
Objectives should be feasible and must be expressed in specific terms with a time limit for achievement.
38
Business is an economic activity and its
objectives are mainly economic in
nature.
economic objectives
39
Every entrepreneur undertakes
business activities primarily to earn
profits.
Profit Earning
40
Every business aims to ensure
that it continues to survive
and exist in the future.
SURVIVAL
41
A business needs to add to its
prospects in the long run. For
this, the business must grow and
expand to survive in the long
run- sales volume, increase in
number of employees, market
share, number of products, etc.
GROWTH
42
Demand is essential in order to
earn profits. Customers are the
focus of all business activities. A
business enterprise can exist and
grow only when it is able to capture
a big market share, i.e. there are
enough people to buy the products
and services offered by an
enterprise.
Creation of Customers
43
Introduction of new ideas or new
methods of production. Innovation
plays a crucial role in increasing
the competitive strength and
improving the image of business
enterprise in the mind of customers.
INNOVATION
44
Every business enterprise aims to
make best possible use of physical,
financial and human resources. This
objective can be achieved through –
(a) Employing efficient and
competent work force; (b) Making
full use of installed machinery; (c)
Minimizing wastage of materials.
Optimum Utilization of Resources
45
refer to the objectives, which are desired to be achieved for the benefit of the society. Business makes
use of scarce resources of the society. So, society expects something in return for its welfare.
Social objectives
46
deals with fulfilling obligations towards the society
Social objectives
47
The business should ensure
that there is a regular supply
of useful products with fair
quality and at reasonable
prices. Consider customer
expectations
Supply of Quality products at Fair Prices
48
Business enterprise should not
indulge in anti-social and unfair
trade practices like black marketing, hoarding, adulteration, etc. Such practices are not only illegal but also
hamper the image of business
community.
Avoidance of Unfair Trade Practices
49
Every business enterprise
should create sufficient
employment opportunities
without any discrimi-nation as
to caste, religion, sex, etc.
Generation of Employment Opportunities
50
Business enterprise should take
all reasonable steps to check and
protect environment. It must
make proper arrangement for
disposal of effluents, smoke,
wastes, etc. in order to avoid
various types of pollution.
Protection of Environment
51
Many business organizations
engage in various community
services, like setting up
schools, charitable
dispensaries, donating money
for social and religious
activities, etc. Fulfillment of this
objective helps to improve the
reputation and public image of
business.
Community Service
52
No business can succeed without
the contribution of its employees. Thus, business should aim to
provide fair wages and
reasonable working and living
conditions to workers.
Welfare of Employees
53
refer to the objectives related to the individual needs of the employees of an organization. As employees are one of the most valuable resources for an organization, satisfaction of their objectives is very important.
Human or individual objectives
54
Management of a business must set’ Multiple Objectives’ for its long-term
survival and growth.
Multiple objectives
55
refers to the position of an
enterprise in relation to its competitors.
Market standing
56
A business enterprise must aim to increase its market standing by offering good quality products at reasonable prices and serving them better than competitors.
57
All business enterprises require physical resources (like plant, machinery, etc.) and financial resources (i.e. funds) in order to produce and supply goods and services to its customers. Every business enterprise must aim to acquire these resources according to its requirements and must use them efficiently
Financial resources
58
is calculated by comparing the value of outputs with the value of inputs. It is used as a measure of efficiency.
Productivity
59
All business enterprises need managers to conduct and coordinate business activity. So, every business enterprise must actively work for the development of manager’s performance.
Manager Performance and Development
60
on the capital employed is the main objective of every business enterprise. Every business aims to earn a reasonable profit in order to survive and grow in this competing world.
Earning profits
61
refers to the obligation of business firms to contribute resources for solving social problems and work in a socially desirable manner.
Social responsibility
62
Every business is a part of society as it makes use of scarce resources of the society. So, it must meet the expectations of the society.
Social responsibility
63
every business enterprise must aim to improve performance of the workers and to develop positive attitude among them.
Worker Performance and Attitude
64
How to set business objectives
1. Establish clear goals
2. Set a baseline
3. Involve players at all levels in the conversation
4. Define measurable outcomes
5. Outline a roadmap with a schedule
6. Integrate successful changes
65
• Analytical tactics like a SWOT analysis and goal-setting frameworks like SMART can be extremely useful at this stage, as you'll need to be specific about what you want to achieve and honest about what is achievable.
Establish clear goals
66
• With a definite goal in mind, the only way to know your progress is to know where you're starting from. It could also help you recalibrate your goals.
Set a baseline
67
• Too often, the most important people are left out of conversations about goals and objectives. The more levels of complexity and oversight, the more important it is to hear from everyone—yet the more likely it is that some will be excluded.
Involve players at all levels in the conversation
68
Using KPIs (key performance indicators) to apply a level of objectivity to your action steps allows you to measure their progress and success over time and either adapt as you go along or stay the course.
Define measurable outcomes
69
It include all involved team members and departments and clear timelines for reaching milestones. Within the objectives, set action items with deadlines to stay on track, along with corresponding progress markers.
Outline a roadmap with a schedule
70
Take note of successful changes and integrate it into the business processes for sustainable improvement. Then create new objectives, so you can continue the cycle.
Integrate successful changes
71
a strategy designed for a firm or a division of a firm that competes within a single business.
Business Level Strategy
72
basic types of business level strategies based on breadth of target
market (industrywide versus narrow market segment) and type of competitive advantage (low cost versus uniqueness).
Generic Strategies
73
requires a tight set of interrelated tactics
Overall cost leadership
74
a firm’s achievement of similarity, or being “on par,” with competitors with respect to low cost, differentiation, or other strategic product characteristic.
Competitive parity
75
on the basis of differentiation permits a
cost leader to translate cost advantages directly into higher profits
than competitors. Thus, the cost leader earns above-average returns.
Competitive parity
76
a firm’s generic strategy based on creating differences in the firm’s product or service offering by creating something that is perceived industrywide as unique and valued by customers
Differentiation Strategy
77
is based on the choice of a narrow competitive scope within an industry.
focus strategy
78
a firm following this strategy selects a segment or group of segments
and tailors its strategy to serve them.
Focus strategy
79
a firm strives to create a cost advantage in its target segment. - exploits differences in cost behavior in some segments
Cost focus
80
a firm seeks to differentiate in its target market. Both variants of the focus strategy rely on providing better service than broad-based competitors that are trying to serve the focuser’s target segment.
Differentiation focus
81
exploits the special needs of buyers in other segments.
Differentiation focus
82
exploits differences in cost behavior in some segments
Cost focus
83
- firms’ integrations of various strategies to provide multiple types of
value to customers.
Combination Strategies
84
- This strategy enables a firm to provide two types of value to customers: differentiated attributes (e.g., high quality, brand identification,
reputation) and lower prices (because of the firm’s lower costs in value-creating
activities).
Combination strategies
85
The goal is thus to provide unique value to customers in an efficient manner.
Combination strategies
86
- refers to the stages of introduction, growth, maturity, and
decline that occur over the life of an industry.
Industry Life Cycle
87
the first stage of the industry life cycle, characterized by (1) new products that
are not known to customers, (2) poorly defined market segments, (3) unspecified product features, (4) low sales growth, (5) rapid technological change, (6) operating losses, and (7) a need for financial support.
Introduction stage
88
In considering the
industry life cycle, it is useful to think in terms of broad product lines
such as personal computers, photocopiers, or long-distance telephone service
89
the first stage of the industry life cycle, characterized by (1) new products that
are not known to customers, (2) poorly defined market segments, (3) unspecified product features, (4) low sales growth, (5) rapid technological change, (6) operating losses, and (7) a need for financial support.
Introduction stage
90
- the second stage of the product life cycle, characterized by (1) strong
increases in sales; (2) growing competition; (3) developing brand
recognition; and (4) a need for financing complementary value chain activities such as marketing, sales, customer service, and research and development.
Growth stage
91
- the third stage of the product life cycle, characterized by (1) slowing demand growth, (2) saturated markets, (3) direct
competition, (4) price competition, and (5) strategic emphasis on efficient operations
Maturity stage
92
break in the industry tendency to continuously augment products,
characteristic of the product life cycle, by offering products with fewer product
attributes and lower prices.
Reverse positioning
93
- a break in the industry tendency to incrementally improve products along
specific dimensions, characteristic of the product life cycle, by offering products that are still in the industry but are perceived by customers as being different.
Breakaway positioning
94
- the fourth stage of the product life cycle, characterized by (1) falling sales
and profits, (2) increasing price competition, and (3) industry consolidation.
Decline stage
95
- refers to keeping a product going without significantly reducing marketing support, technological development, or other investments, in the hope that
competitors will eventually exit the market.
Maintaining
96
- a strategy of wringing as much profit as possible out of a business in the short
to medium term by reducing costs.
harvesting strategy
97
involves dropping the product from a firm’s portfolio. Since a residual core of
consumers exist, eliminating it should be carefully considered.
Exiting the market
98
- involves one firm acquiring at a reasonable price the best of the surviving
firms in an industry.
- This enables firms to enhance market power and acquire valuable assets.
Consolidation
99
- involves reversing performance decline and reinvigorating growth toward profitability. A
need for turnaround may occur at any stage in the life cycle but is more likely to occur during maturity or decline.
Turnaround strategy
100
- Firms in turnaround situations try to aggressively cut administrative expenses and
inventories and speed up collection of receivables. Costs also can be reduced by outsourcing production of various inputs for which market prices may be cheaper than in-house production costs.
Asset and cost surgery
101
- discontinue such product lines and focus all resources on a few core profitable areas.
Selective product and market pruning
102
- Improving business processes by reengineering them, benchmarking specific activities against industry leaders, encouraging employee input to identify excess costs, increasing capacity utilization, and improving employee productivity lead to a significant overall gai
Piecemeal productivity improvements
