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Principles of Management > Test 2 > Flashcards

Test 2 Flashcards

(75 cards)

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1
Q

Planning

A

-Choosing a goal
-developing a strategy to achieve that goal

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2
Q

Benefits of planning

A

-intensifies efforts
-leads to persistence
-provides direction
-encourages the development of tasks/strategies
-works for companies/individuals

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3
Q

Goal Commitment

A

Determination to achieve a goal

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4
Q

Goal Commitment Techniques

A

-Setting goals participatively
-Making the goal public
-Obtaining top management support

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5
Q

Proximal Goals

A

short-term/subgoals

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6
Q

Distal Goals

A

long-term or primary goals

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7
Q

Strategic Plans

A

-Overall company plans
-clarify how the company will serve customers and position itself against competitors
-over two to five years
-Top management

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8
Q

Tactical Plans

A

-Plans created and implemented by middle managers
-direct behavior, efforts, and attention
-over six months to two years

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9
Q

Operational Plans

A

-Day to day plans
-developed and implemented by lower-level managers
-producing or delivering the organization’s products and services
-over a 30 day to 6 month period

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10
Q

Type of Operational Plans

A

-single use
-standing plans
-budgets

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11
Q

Standing Plans

A

Plans used repeatedly to handle frequently recurring events

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12
Q

Decision Making

A

process of choosing a solution from available alternatives

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13
Q

Rational Decision Making

A

-Systematic process
-defining problems
-evaluating alternatives
-choosing optimal solutions

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14
Q

Rational Decision Making Steps

A

1.) define the problem

2.) identify decision criteria

3.) weigh the criteria

4.) generate alternative courses of action

5.) evaluate each alternative against each criterion systematically

6.) compute the optimal decision

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15
Q

Two ways to weigh the criteria

A

-Absolute comparison (compared to standard)

-Relative comparison (compared to one another)

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16
Q

Rational Decision Making Limits

A

-Managers don’t operate in a perfect world with no restraints

-Makes it difficult to maximize decisions

-Maximize

-Satisfying

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17
Q

Maximize (Rational Decision Making)

A

choosing best alternative

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18
Q

Satisfying (Rational Decision Making)

A

choosing a “good enough” alternative

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19
Q

Resources

A

-The assets and knowledge used by an organization

-Improves effectiveness/efficiency

-Creates and sustains competitive advantage

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20
Q

Competitive Advantage

A

Providing greater value for customers than competitors can

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21
Q

Strategy-making process steps

A

1.) Assess need for strategic change

2.) Conduct situational analysis (SWOT)

3.) Choose strategic alternatives

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22
Q

Competitive Inertia

A

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

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23
Q

Strategic Alternatives

A

-Managers should choose a risk avoiding strategy/risk seeking strategy
- based on whether the company falls above or below strategic reference points

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24
Q

SWOT

A

-assessment of the strengths and weaknesses in an organization’s internal environment

-opportunities and threats in its external environment.

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25
Distinctive Competence
What a company can make, do, or perform better than its competitors
26
Portfolio Strategies
A corporate level strategy that minimizes risk -diversifying investment among various businesses or product lines
27
Diversification (Portfolio)
-A strategy for reducing risk -buying a variety of items -failure of one stock or one business does not doom the entire portfolio
28
Boston Consulting Group (BCG)
-BCG categorizes a corporation’s businesses by growth rate and relative market share -helps managers decide how to invest corporate funds
29
BCG Categorization
-Question mark -Cash cow -Dog -Stars
30
Question Mark (BCG)
-small market share -high market growth
31
Cash Cow (BCG)
-large market share -low market growth
32
Dog (BCG)
-small market share -low market growth
33
Stars (BCG)
Large market growth -high market growth
34
Grand Strategies
-used to achieve strategic goals -guide strategic alternatives that managers of individual businesses or subunits may use
35
Grand Strategy Types
-Growth strategy -Stability -Retrenchment -Recovery
36
Growth strategy (grand strategy)
-Focuses on increasing profits, revenues, market share, or the number of places in which the company does business -Merger/acquisition (external) -Expanding existing business
37
Stability strategy (grand strategy)
Focuses on improving the way in which the company sells the same products or services to the same customers
38
Retrenchment strategy (grand strategy)
-Focuses on turning around very poor company performance by shrinking the size or scope of the business -Cost reductions, laying off employees, closing stores
39
Recovery strategy (grand strategy)
Taken after retrenchment to return to growth strategy
40
Porter Industry Strategies
-Bargaining power of suppliers -Threat of new entrants -Bargaining power of buyers -Threat of substitute product/service
41
Positioning Strategies
-Protects your company from the negative effects of industry-wide competition -creates a sustainable competitive advantage
42
Positioning Strategy Types
-Cost leadership -Differentiation -Focus strategy
43
Cost Leadership (positioning strategy)
-Producing a product or service of acceptable quality at consistently lower production costs than competitors can -firm can offer the product or service at the lowest price in the industry
44
Differentiation (positioning strategy)
-Providing a product or service that is sufficiently different from competitors offerings -customers are willing to pay a premium price for
45
Focus Strategy (positioning strategy)
-produce a specialized product or service -for a limited, specifically targeted group of customers in a particular geographic region/market segment
46
Organizational innovation
The successful implementation of creative ideas in organizations
47
Various innovation streams
-Technological discontinuity -Discontinuous change -Dominant design
48
Technological Discontinuity (innovation streams)
-Performance/functional breakthrough -created by a scientific advance or a unique combination of existing technologies
49
Discontinuous change (innovation streams)
-Technological substitution -Design competition
50
Dominant Design (innovation streams)
New technological design/process that becomes the accepted market standard
51
Creative Work environments
Workplace cultures in which workers perceive new ideas are welcomed, valued, and encouraged
52
organization decline
-A large decrease in organizational performance -occurs when companies don’t anticipate, recognize, neutralize, or adapt to the internal or external pressures that threaten their survival
53
Managing Resistance to Change
-Unfreezing -Change intervention -Refreezing
54
Unfreezing (resistance to change)
Getting people affected by change to believe that change is needed
55
Change Intervention (resistance to change)
The process used to get workers and managers to change their behaviors and work practices
56
Refreezing (resistance to change)
Supporting and reinforcing new changes so they stick
57
Direct Foreign Investment
Method of investment in which a company builds a new business or buys an existing business in a foreign country
58
Different types of Trade Barriers
-Protectionism -Tariff -Nontariff barriers -Quotas -Voluntary export restraints -Gov’t import standard -Subsidies -Customs classification
59
Protectionism (barrier)
Gov’t trade barriers to shield domestic companies and their workers from foreign competition
60
Tariff (barrier)
Direct tax on imported goods
61
non tariff barriers
Nontax methods of increasing cost/reducing the volume of imported goods
62
Quotas (barrier)
Limit on the number of imported goods
63
voluntary export restraints (barrier)
Imposed limits on the number or volume of products exported to a particular country
64
Government import standard (barrier)
Standard established to protect the health and safety of citizens
65
Subsidies (barrier)
Gov’t loans, grants, and tax deferments given to domestic companies to protect from foreign trade
66
Customs classification (barrier)
Classification assigned to imported products by gov’t officials that affects the size of the tariff and the imposition of import quotas
67
Trade agreements
-General Agreement on Tariffs and Trade (GATT) -World Trade Organization (WTO)
68
General Agreement on Tariffs and Trade (GATT)
-Worldwide trade agreement -Limited government subsidies -Establish protections for intellectual property
69
World Trade Organization (WTO)
-Successor of GATT -Only international organization dealing with the global rules of trade between nations -Main function is to ensure that trade flows as smoothly, predictably, and freely as possible
70
global consistency
-The multinational company has offices, manufacturing plants, and distribution facilities in different countries -runs them all using the same rules, guidelines, policies, and procedures -Simplifies decisions -Involves risk using management procedures poorly suited to country’s markets, cultures, and employees
71
Local Adaption
-Modifying rules, guidelines, policies, and procedures to adapt to differences in foreign customers, gov’t, and regulatory agencies -Risk of losing cost-effectiveness and productivity that result from using standardized rules/procedures -Locally sourcing inputs is desired
72
Exporting
Selling domestically produced products to customers in foreign countries
73
Strategic alliance
Agreement in which companies combine key resources, cost, risks, technology, and people
74
Joint venture (Strategic alliance)
-Two existing companies collaborate to form a third -independent company -engage in a clearly defined business activity
75
wholly owned affiliates
Foreign offices, facilities, and manufacturing plants that are 100 percent owned by the parent company

Principles of Management (2 decks)

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