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Principles of Management > Exam 2 > Flashcards

Exam 2 Flashcards

1
Q

What is absolute advantage?

A

specialization in the production of goods one area can produce more efficiently than any other

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2
Q

What is comparative advantage?

A

specialization in the production of goods one area can produce at the greatest relative advantage
all about lowest opportunity cost

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3
Q

What is competitive advantage? How is it sustained?

A

providing greater value for customers than competitors can
greater value that cannot be duplicated and they stop trying to duplicate

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4
Q

What are resources used for?

A

improve efficiency and effectiveness
gain competitive advantage

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5
Q

What are resources?

A

the assets, capabilities, employee time, information, and knowledge used by an organization

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6
Q

What are valuable resources?

A

allow companies to improve efficiency and effectiveness

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7
Q

What are rare resources?

A

resources are not controlled or possessed by many competing firms

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8
Q

What are imperfectly imitable resource?

A

impossible or extremely costly or difficult for other firms to duplicate

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9
Q

What are non-substitutable resource?

A

produces value or competitive advantage and has no equivalent substitutes or replacements

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10
Q

Who is Michael Porter and what did he say about competitive advantage?

A

Professor at Harvard that created Porter Diamond
specialization that results in cost and differentiation advantages, strategic management, providing grater value than competitors can

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11
Q

What is SWOT and give examples

A

Strength: Apple Brand Recognition
Weakness:
Opportunity
Threats
companies use when they want to

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12
Q

What is competitive inertia?

A

a reluctance to change strategies or competitive practices that have been successful in the psat

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13
Q

What are core firms

A

the central companies in a strategic group

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14
Q

What are secondary firms

A

firms in a strategic group that follow strategies related to but a little different from core firms.

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15
Q

What is diversification

A

strategy for reducing risk by buying a variety of types of businesses so that the failure of one does not doom the entire portfolio

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16
Q

What is a BCG matrix?

A

portfolio strategy developed by the Boston Consulting Group that categorizes a corporation’s business by growth rate and relative market share and helps managers decide how to invest corporate funds
cash cow - large segment of business and has low market growth (few competitors)
dogs - small segment of business with low market growth
? - small segment of business with high market growth (could become any of the others)
stars - large segment and high market growth

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17
Q

What is lost leadership:

A

producing a product or service of acceptable quality at consistently lower production costs than competitors can

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18
Q

What is product differentiation

A

providing a product or service that is sufficiently different from competitors offerings that customers are willing to pay a premium price for it

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19
Q

What is s-curve pattern of innovation

A

a pattern of technological innovation with slow initial progress, then rapid progress, then slow progress as it reaches its limits

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20
Q

What is technology cycle?

A

a cycle that begins with the birth of a new technology and ends when the technology reaches its limits and is replaced

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21
Q

What are innovation streams

A

patterns of innovation over time that can create sustainable competitive advantage

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22
Q

Phases of innovation streams

A

technological discontinuity - breakthrough by scientific advance or new idea
discontinuous change
- technological substitution: buy new tech to replace old ones
- design competition: competition between old and new tech to establish new technological standard

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23
Q

What is a dominant design?

A

a new technological design/process that becomes the accepted market standard

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24
Q

What is technological lockout?

A

inability of a company to competitively sell its products because it relies on non-dominant design

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25
Q

What are components of creative work environments?

A

organizational encouragement, challenging work, supervisory encouragement, work group encouragement, freedom, lack of organizational impediments

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26
Q

Experiential approach to innovation:

A

(let people try and learn from mistakes)

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27
Q

Why do we resist change:

A

self interest - fear that it will cost or deprive
misunderstanding/distrust = don’t understand why or don’t trust org.
some people are less capable of handling change

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28
Q

What is a multinational corporation? How common are they?

A

a corporation that owns businesses in two or more countries
extremely common nowadays

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29
Q

What is a direct foreign investment? Is US investment substantial?

A

a method of investment in which a company builds a new business or buys existing in foreign country
over 3 billion $ investment each way

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30
Q

What are trade barriers?

A

government imposed regulations that increase the coast and restrict the number of imported goods

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31
Q

What is a tariff?

A

a direct tax on IMPORTED goods
(will say export tariff if export)

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32
Q

What are nontariff barriers

A

non tax methods of increasing the cost or reducting the volume of imported goods

quotas, voluntary export restraints, government import standard, subsidies, customs classification

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33
Q

Who bares the brunt of tariffs and non-tariff barriers?

A

consumers

34
Q

What is protectionism?

A

government’s use of trade barriers to shield domestic companies and their workers from foreign competition

35
Q

Trade Barriers

A

say that they are to protect people, but are really to reduce cheap trade

36
Q

What are quotas?

A

a limit on the number or volume of imported products

37
Q

What are voluntary export restraints?

A

voluntarily imposed limits on the number or volume of products exported to a particular country

38
Q

What is a government import standard?

A

a standard ostensibly established to protect the health and safety of citizens (but really to restrict imports)

39
Q

What are subsidies?

A

government loans, grants, and tax deferments given to domestic companies to protect them from foreign competition (often commodity production [nat resource])

40
Q

What are customs classifications?

A

classification assigned to imported products by gov officials that affects the size of the tariff and the imposition of import quotas

41
Q

What is the WTO?

A

World Trade Organization (WTO) - successor to GATT, to ensure trade flows smoothly and predictably

42
Q

How is a regional trade agreement different than a bilateral trade agreement?

A

bilateral is between two parties
regional is that but with those that share a region

43
Q

What is a franchise (cooperative contract)?

A

a collection of networked firms in which the manufacturer or marketer of a product/service licenses the entire business to another person/organization

44
Q

What is a strategic alliance

A

agreement for companies to combine key resources, costs, risks, tech, and people

45
Q

What is a joint venture?

A

strategic alliance in which two companies collaborate to form a third, independent company

46
Q

What is global consistency?

A

when multinational company has locations in different countries and runs them all using the same rules, guideline, policies, and procedures

47
Q

What is local adaptation?

A

modifying rules, guidelines, policies, and procedures to adapt to differences in foreign customers, government, and agencies

48
Q

What are consistent cultural dimensions that exist across countries?

A

power distance - perception of power distrib
individualism - belief in self-sufficiency
masculinity/femininity
uncertainty avoidance
short/long term orientation
indulgence v. restraint

49
Q

What is departmentalization?

A

subdividing work and workers into separate organizational units responsible for completing particular tasks

50
Q

What is functional departmentalization?

A

organizing work and workers into separate units responsible for particular business functions

51
Q

What is product departmentalization?

A

organizing work and workers into separate units responsible for producing particular products

52
Q

What is customer departmentalization?

A

organizing work and workers into separate units responsible for particular kinds of customers

53
Q

What is geographic departmentalization?

A

organizing work and workers into separate units responsible for doing business in particular geographic area

54
Q

What is matrix departmentalization?

A

a hybrid organizational structure in which two or more forms of departmentalization, most often product and functional, are used together

55
Q

What is a simple matrix?

A

a form of matrix departmentalization in which managers in different parts of the matrix negotiate conflicts and resources

56
Q

What is a complex matrix?

A

a form of matrix departmentalization where managers in different parts of the matrix report to matrix managers, who help them sort out conflicts and problems

57
Q

What is chain of command?

A

the vertical line of authority that clarifies who reports to whom throughout the organization

58
Q

What is the unity of command?

A

a management principle that workers should report to just one boss

59
Q

What is centralization of authority?

A

the location of most authority at the upper levels of the organization

60
Q

What is decentralization?

A

the location of a significant amount of authority in the lower levels of the organization

61
Q

What should companies do regarding degree of centralization?

A

centralize where standardization is important
decentralize where standardization is unimportant

62
Q

What is job rotation?

A

periodically moving workers from one specialized job to another to give them more variety and the opportunity to use different skills

63
Q

What is job enlargement?

A

increasing the number of different tasks that a worker performs within one particular job

64
Q

What is job enrichment?

A

increasing the number of tasks in a particular job and giving workers the authority and control to make meaningful decisions about their work

65
Q

What is the job characteristics model?

A

an approach to job redesign that seeks to formulate jobs in ways that motivate workers and create positive work outcomes

66
Q

What are mechanistic organizations?

A

one characterized by specialized jobs and responsibilities, with well defined and unchanging roles and rigid chain of command

67
Q

What are organic organizations?

A

characterized by broadly defined jobs and responsibilities, loosely defined roles and decentralized authority

68
Q

What is pooled interdependence?

A

work completed by a department independently and added to a whole

69
Q

What is sequential interdependence?

A

work completed in succession, one groups outputs become the next groups inputs

70
Q

What is reciprocal interdependence?

A

work completed by different groups working together in a back and forth manner

71
Q

What are the advantages of teams?

A

increase costumer satisfaction
improve output quality
increase speed and efficiency
can increase job satisfaction
share benefits of group decision making

72
Q

What are the disadvantages of teams?

A

Not a guarantee of positive outcomes
initial high turnover
social loafing - team members withhold effort because the group will cover for them
groupthink
minority domination

73
Q

What is employee involvement team?

A

provides advice to management concerning specific issues

74
Q

What is semiautonomous work group?

A

group that has authority to make decisions and solve problems related to the major tasks of producing a product or service

75
Q

What is self-managing team?

A

team that manages and controls all major tasks of a product or service

76
Q

What is a cross-functional team?

A

team composed of employees from different functional areas of the organization

77
Q

What is a virtual team?

A

team composed of geographically or organizationally dispersed workers who use telecommunication and tech to accomplish org tasks

78
Q

What are work team characteristics?

A

team norms
team cohesiveness
team size
team conflict
stages of team development

79
Q

What are the stages of team development?

A

Forming -
Storming -
Norming -
Performing -
Denorming - reversal of norming, performance declines as things change
De-storming - teams comfort decreases, cohesion weakens, more conflict
De-forming - reversal of forming, team members position themselves to control pieces of teams and isolate themselves

80
Q

Does teamwork make the dreamwork?

A

No, have to select a cohesive team and people who have the skills necessary that mesh well with a team

Principles of Management (4 decks)

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