2 Flashcards
What is Management?
Management is the planning, organising, leading, and controlling of human and other resources to achieve organizational goals effectively and efficiently.
Which are the managerial functions?
- planning
- organizing
- leading
-controlling
What is planning?
Choose appropriate organisational goals and courses of action to best achieve those goals.
What is organizing?
Establish task and authority relationships that allow people to work together to achieve organization goals.
What is leading?
Motivate, coordinate, and energise individuals and groups to work together to achieve organisational goals.
What is controlling?
Establish accurate measuring and monitoring systems to evaluate how well the organisation has achieved its goals.
What are the management levels/types from top to bottom?
CEO, senior management, middle management, first-line management.
Depending on the organisational structure there are different management levels within a firm.
What is an organization?
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.
What is a family firm?
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.
What is strategy?
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
What is strategic management?
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.
When does a company achieve a sustainable competitive advantage?
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.
Why is there often a confusion about strategy?
Misguided by competition. Strategy is about making your company unique and different to competition, delivering value that competitors cannot offer.
What are the strategic actions?
- 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.
How does a strategy evolve over time?
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.