Exam 2 Flashcards
Corporate Strategy
Talks about broad issues
Business Strategy
How awe are going to compete
SWOT
Strengths, Weaknesses, Opportunities, Threats
TOWS
SWOT backwards. Helps with development of actions steps
Five forces (Porter)
- How much rivalry is there in the industry?
- What are the barriers/difficulties of getting into the industry?
- Suppliers
- Buyers
- Other Products
VRIO
Valuable, Rare, Inimitable, Organization
Approach: Broad Market
- Differentiation
2. Cost Leadership
Cost Leadership
Producing the least expensive product
Approach: Narrow Market
- Focused Differentiation
2. Focused Cost Leadership
Value Chain:
- Product Focused
- Process Focused
- Fixed Position Layout
Why Project Profiling?
- Better understanding
- Develop execution plan
- Allocate resources
- Helps identify skills and experiences of the people
How might projects differ?
- Size
- Time
- Location
- Complexity
- Risk
- Time Pressure
Darnell-Preston Complexity Index
Scale 1-4:
- External
- 1-Similar to others, 4-never completed project this size
- Internal
- 1-Simple, few people, 4-Complicated, many people
- Technology
- 1-Technology not new, familiar, 4-technology new, untested, unfamiliar
- Environmental
- 1-no legal issues, 4-multiple legal issues
Project Phases:
Initiation Phase
Planning
Execution
Closeout
Initiation Phase (Skills needed)
Conceptual Skills
Team Building Skills
Planning (Skills Needed)
Organization Skills
Planning Skills
Leadership Skills
Execution (Skills Needed)
Leadership Skills
Closeout (Skills Needed)
Controlling Skills
3 ways to fund a project
- Commercial Paper (B2B) Loan
- Sell more shares of stock to raise money
- Savings (retained earnings)
Costs of each project funding method
- Borrowing-Interest rates
- Savings-Can’t hire as many people or give raises
- Selling Stock-lowers value of stock, decrease of company worth, more dividends payable
Techniques to determine cost/benefit analysis
- Payback-when will we pay back then exceed original investment?
- IRR-Internal Rate of Return-Calculates the percent return of the money invested
IRR
Internal Rate of Return
Communication Matrix; What’s the legend?
A-Approval
R-Review and Comment
I-Inform
Organizational Structure
- Centralization
- Formalization
- Hierarchical Level
- Span of Control
- Departmentalization
Centralization
Keeps all decision making at the top level
Formalization
How clearly the rules and regulations are defined. Very Structured Business.
Hierarchical Level
more managerial levels, order of importance, Tall vs flat
Span of Control
how many people your in control of.
Two configurations of organizational structure
- Mechanistic-Product
2. Organic-Process
Departmentalization
Functional; similar tasks, similar skills
4 ways to Divide teams:
- Product-groups based on product line
- Market-groups based on customers
- Geographic-groups based on location
- Matrix-cross functional teams, online and locational teams
Network Structure (Modular)
- Design
- Manufacture
- Shipped
- Sales
Strategic Alliance
Two companies work together to create a product
Boundary-less Organizations
working with various companies with different strengths
Learning Organizations
Schools
