2 Flashcards

1
Q

What is Management?

A

Management is the planning, organising, leading, and controlling of human and other resources to achieve organizational goals effectively and efficiently.

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2
Q

Which are the managerial functions?

A
  • planning
  • organizing
  • leading
    -controlling
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3
Q

What is planning?

A

Choose appropriate organisational goals and courses of action to best achieve those goals.

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4
Q

What is organizing?

A

Establish task and authority relationships that allow people to work together to achieve organization goals.

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5
Q

What is leading?

A

Motivate, coordinate, and energise individuals and groups to work together to achieve organisational goals.

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6
Q

What is controlling?

A

Establish accurate measuring and monitoring systems to evaluate how well the organisation has achieved its goals.

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7
Q

What are the management levels/types from top to bottom?

A

CEO, senior management, middle management, first-line management.
Depending on the organisational structure there are different management levels within a firm.

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8
Q

What is an organization?

A

An organization is a social constellation which pursues an overarching set of aspired goals and entails a formal/informal structure which is intended to facilitate the alignment of the activities of its members towards the pursued set of aspired goals.

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9
Q

What is a family firm?

A

One or several families own collectively >50% of a firm and exert influence on its strategic course via the board or owner-management in a manner that is potentially sustainable across generations.

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10
Q

What is strategy?

A

The art of competing differently. Strategy consists of the competitive moves and business approaches that managers are employing to grow the business, attract and please customers, compete successfully, conduct operations, and achieve the targeted levels of organisational performance.
To earn success, it takes strategy.
It’s about:
- How to outcompete rivals
- How to respond to market changes
- How to manage each functional units
- How to improve performance

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11
Q

What is strategic management?

A

Strategic management concerns the improvement of a company’s financial performance, the strengthening of its long-term competitive position and the achievement of a competitive advantage over its rivals.

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12
Q

When does a company achieve a sustainable competitive advantage?

A

When an attractive number of buyers prefer its products and services over the offerings of the competitors, and when the basis for this preference is durable.

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13
Q

Why is there often a confusion about strategy?

A

Misguided by competition. Strategy is about making your company unique and different to competition, delivering value that competitors cannot offer.

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14
Q

What are the strategic actions?

A
  • Actions to diversify or focus revenues and earnings;
  • actions to enter new geographic/product markets; - actions to capture emerging market opportunities and defend against external threats;
  • actions to strengthen market position and competitiveness by mergers & acquisitions;
  • actions to strengthen competitiveness via strategic alliances and collaborations;
  • actions to respond to changing market conditions or other external factors;
  • actions used in R&D, production, sales and marketing, finance and other key activities;
  • actions to strengthen competitive capabilities and correct market competitive weaknesses;
  • actions to gain market share.
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15
Q

How does a strategy evolve over time?

A

Strategy is dynamic, not static. Due to an ever-changing environment, strategies have to be adapted to meet the current challenges facing the firm. Crafting a strategy is not a one-time event, but a work in progress.

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16
Q

What is a business model?

A

A business model is a storyline for how the strategy will be a moneymaker and is also a blueprint for delivering value to the customers.

17
Q

What are the two central elements of a business model?

A

Customer value proposition and profit formula.

18
Q

What is the customer value proposition?

A

How the company satisfies consumers’ preferences while offering them a reasonable price (V-P).

19
Q

What is the profit formula?

A

How the company generates more revenues than costs.

20
Q

What are the stages of the strategy process?

A

Stage of visions and objective building, stage of strategic analysis, stage of strategy formulation, stage of strategy implementation, evaluation.

21
Q

What is vision?

A

A vision describes an overarching direction a company intends to take in developing a better future state and lays out the future strategic course. It is a dream with expiration date.

22
Q

What are the functions of vision?

A

It helps to make sense for the organization and the individuals and reduces complexity and structural requirements, it proivdes motivation to realize desired future state of the firm, it serves as guidance for actions and activities for each individual member of the organization.

23
Q

What is mission?

A

A mission describes the company’s present state and purpose.

24
Q

What is the consequence of establishing major goals?

A

Provides the organization a direction and stretches the organization to higher levels of performance.

25
Q

What are values?

A

Values are guiding principles, beliefs, traits and behavioural norms that serve as behavioural guidelines in pursuing its strategic vision and mission.
Values should be an integrated part of the corporate culture and actively supported by management, especially top management.

26
Q

What are objectives and how should they be?

A

Objectives are an organisation’s performance targets. Objectives should be specific, measurable, and ambitious goals aspired to be fulfilled.

27
Q

What are the benefits of having objectives?

A
  • Coordinated efforts towards strategy implementation
  • controls of company performance
  • employee motivation.
28
Q

What are the main types of objectives?

A

Financial and strategic objectives.

29
Q

In the strategic analysis, what is the external analysis? And the internal?

A

External: competitive environment, market conditions, customer demand.
Internal: resources, competencies, internal systems and processes.

30
Q

What are the levels of strategy formulation?

A
  • Corporate stagey
  • business strategy
  • functional area strategies
  • operating strategies.
31
Q

What is corporate strategy?

A

The overarching companywide strategy for a set of business.

32
Q

What is business strategy?

A

One for each business unit the company has diversified into. Action plan to strengthen respective market position, gain competitive advantage, and build competitive capabilities.

33
Q

What are functional area strategies?

A

Add relevant detail to business strategies. Provide a strategy for managing a particular function in ways that support and align with the business strategy.

34
Q

What are operating strategies?

A

Add detail and completeness to business and functional strategies. Provide a strategy for managing specific operating activities with strategic significance.

35
Q

What are the three different tests of strategy evaluation that can be conducted?

A
  • Fit test
  • competitive advantage test
  • performance test
36
Q

What is the fit test?

A

Evaluates whether the strategy matches the external and internal conditions.

37
Q

What is the competitive advantage test?

A

Evaluates wether the strategy is generating a sustainable competitive advantage.

38
Q

What is performance test?

A

Evaluates wether the strategy contributes to company performance.

39
Q

What is CEO fit?

A

A CEO fit occurs when a CEO attributes, align, or fit with the conditions facing the firm.