10. Management Flashcards
What is the primary objective of Strategic Management?
Ensure long-term success and competitive advantage.
What is the primary objective of Operational Management?
Ensure short-term success with measurable objectives.
What time frame does Strategic Management focus on?
Long-term.
What time frame does Operational Management focus on?
Short-term.
Which level of management is associated with Strategic Management?
Top-level management (e.g., CEOs, executives).
Which level of management is associated with Operational Management?
Low-level management (e.g., team leaders).
What is the decision-making power in Strategic Management?
Far-reaching decision power.
What is the decision-making power in Operational Management?
Limited decision-making scope.
What is the scope of Strategic Management?
Whole company.
What is the scope of Operational Management?
Single activities.
What is the first step in the Management Process Cycle?
Setting Objectives.
What does the Planning step in the Management Process Cycle involve?
Prepare activities, look for alternatives, evaluate objectives, decide on one alternative.
What is involved in the Organization step of the Management Process Cycle?
Organize people and resources, assign tasks, define organizational structure.
What is the purpose of the Controlling step in the Management Process Cycle?
Check and compare results with objectives, take corrective actions.
What are stakeholders?
Groups of people who have an interest in a company.
Who are considered internal stakeholders?
Employees and management.
What are the interests of Shareholders?
Profit growth, increase in company value, financial success.
What are the interests of the Government & Society?
Job creation and security, taxes, environmental protection.
What are the interests of Banks?
Liquidity, credit payments, long-term company existence.
What are the interests of Suppliers?
Quick payment, stable and fair relationships.
What are the interests of Customers?
High quality, innovative products.
What are the interests of Employees?
Job security, fair income, recognition, good working conditions.
What are the interests of Management?
Power and influence, income.
What is the Shareholder Value Concept?
Considers only the interests of shareholders → Profit maximization.
What are key indicators of Shareholder Value?
Stock market price, dividends, price advantage.
What is a negative aspect of the Shareholder Value Concept?
Short-term thinking, ignores other stakeholders.
What is the Stakeholder Value Concept?
Considers the interests of all stakeholders.
What is a positive aspect of the Stakeholder Value Concept?
Ensures long-term success, balances different interests.
What is a negative aspect of the Stakeholder Value Concept?
Conflicts arise because not all interests can be fulfilled.
What are Strategic Objectives?
Highest company level, long-term objectives, not directly measurable.
What are Operational Objectives?
Makes objectives measurable in terms of content, time, and degree of achievement.
What is the purpose of Operational Objectives?
Makes objectives measurable, focuses on content, time, and degree of achievement.
What are the components of Operational Objectives?
Content, Time, Degree of Achievement (Target Numbers).
What are the requirements for setting objectives?
Objectives must be achievable and realistic.
What does SMART stand for in setting objectives?
Specific, Measurable, Achievable, Relevant, Timed.
What is the primary economic objective?
Profit maximization.
What are social objectives in business?
Fair wages, better working conditions, job security.
What are ecological objectives in business?
Eco-friendly practices, less CO2 emissions.
What is the hierarchy of economic objectives?
Profit Maximization, Monetary Objectives, Non-Monetary Objectives.
What are complementary objectives?
Goals that support each other.
What are indifferent objectives?
Goals that do not influence each other.
What are competitive objectives?
Goals that are in conflict.
What characterizes Unethical Management?
Focuses only on own advantage, breaks laws and regulations.
What are the consequences of Unethical Management?
Bad image, product boycotts, loss of shareholder trust.
What characterizes Ethical Management?
Focuses on responsibility, fairness, and transparency.
What is Corporate Governance?
Principles and values for responsible corporate management.
What is Corporate Social Responsibility (CSR)?
Acting ethically and considering all stakeholders.
What are the three key areas of CSR?
Profit, People, Planet.
What are the positive effects of CSR?
Improves company image, increases profitability, attracts customers.
What are the challenges of CSR?
Participation is voluntary, no strict enforcement.
Why is there a need for strategies in business?
Ensures long-term success, involves defined objectives.
What are the three basic questions for successful strategies?
What is our business? How can we outperform our competitors? What will be our long-term competence basis?
What is scenario analysis?
Involves best-case, trend, and worst-case scenarios.
What does SWOT stand for?
Strengths, Weaknesses, Opportunities, Threats.
What are the advantages of SWOT Analysis?
Visualizes complex situations, helps find a suitable strategy.
What are the disadvantages of SWOT Analysis?
Difficult to gather data, factor classification is subjective.
What is a Product Marketing Strategy?
Includes product innovation, variation, and differentiation.
What is a Development Strategy?
Includes growth/investment, skimming/stabilization, and disinvestment strategies.
What are Competitive Strategies?
Differentiation, Niche, and Cost Leadership strategies.
What does PESTEL stand for?
Political, Economic, Social, Technological, Environmental, Legal.
What is Value Chain Analysis?
Internal company analysis focusing on purchasing, production, and sales.
What is a Competitive Advantage?
A company must be different, better, and sustainable.
What is a Niche Strategy?
Targets a small market segment based on specific criteria.
What is a Differentiation Strategy?
Relies on uniqueness to create customer loyalty.
What is a Cost Leadership Strategy?
Focuses on low costs and competitive pricing.
What is the Strategy Choice Model - Waterfall Model?
A model that defines long-term goals, target market, competitive advantage, and required capabilities.
