Exam Review

Question 1

What does a project schedule show?

Answer 1

A project schedule should define:
Activities to be accomplished
Timelines for each activity
Resource requirements

Question 2

Name and explain 4 strategic plans.

Answer 2

Strategic Plan
A general outline plan with strategies and tactics to be successful and beat competitors
Strategy #1: Differentiation- making your products or services different from and more attractive than those of your competitors.
Strategy #2: Cost Leadership- Reducing costs so you have lower prices than the competition.
Strategy #3: Focused Differentiation- Differentiation, targeting a certain group of consumers
Strategy #4: Focused cost leadership- Cost Leadership, targeting a certain group of consumers

Question 3

What is the purpose of a mission statement?

Answer 3

The purpose and reason for the business’s existence in society
Provides direction on all decisions should relate to the mission
Sets a commitment to what the business values and tries to accomplish
E.g. Best quality, Best Service, Inspire Change or Action

Question 4

What does SWOT analysis stand for and what is it used for?

Answer 4

Strengths
What makes your product better than the competition, popular, and attractive?
What makes your group strong and successful in terms of completing the project and meeting objectives etc.?
Any great successes so far?
Any competitive advantages?

Weaknesses
What makes your product less attractive, popular, or less successful than competitors?
What makes your group weaker or less successful in terms of completing the project and meeting objectives?
Any problems or setbacks so far?

Opportunities
Have you found any good deals for materials or ways to save on costs?
Is there a particular group of people who are interested already or you know will want your product?
Does your product serve a need or want that is not yet fulfilled within the marketplace?
Do you know that people will be willing to purchase your product?

Threats
Is there any major competition for your product?
Are there any reasons why students may not want to buy your product?
Could cots become a problem?
Could you run out or could your product become unusable?

Question 5

Perform a SWOT analysis on this course.

Answer 5

Strengths
What makes your product better than the competition, popular, and attractive?
What makes your group strong and successful in terms of completing the project and meeting objectives etc.?
Any great successes so far?
Any competitive advantages?

Weaknesses
What makes your product less attractive, popular, or less successful than competitors?
What makes your group weaker or less successful in terms of completing the project and meeting objectives?
Any problems or setbacks so far?

Opportunities
Have you found any good deals for materials or ways to save on costs?
Is there a particular group of people who are interested already or you know will want your product?
Does your product serve a need or want that is nit yet fulfilled within the marketplace?
Do you know that people will be willing to purchase your product?

Threats
Is there any major competition for your product?
Are there any reasons why students may not want to buy your product?
Could cots become a problem?
Could you run out or could your product become unusable?

Question 6

How are the Strengths and weaknesses “internal”? And the Opportunities and threats “external”?

Answer 6

Strengths and weaknesses are internal to your company—things that you have some control over and can change. Examples include who is on your team, your patents and intellectual property, and your location. Opportunities and threats are external—things that are going on outside your company, in the larger market.

Question 7

What is the relationship between an operational plan and a strategic plan?

Answer 7

The strategic plan shares your vision for the future, while your operational plan lays out how you’ll get there on a daily to weekly basis.

Both concepts describe your company’s plans for the future but in different contexts.

Question 8

If you had to put the four functions of management in a logical order, what would it be?

Answer 8

Planning, Organizing, Leading, and Controlling

Question 9

Explain the importance of the organizational mission, values, and objectives.

Answer 9

Creating a mission, values and vision makes a statement as to how a company and its personnel will interact with the consumer, its colleagues and even competitors. The value, mission and vision statements of a company are the foundation on which all business is conducted and decisions are made.
Objectives is the results you are aiming to achieve to accomplish your longer-term company vision
Relates to the mission statement

Question 10

Why do companies use contingency planning?

Answer 10

Identifying alternative courses of action that can be implemented if the original plan proves inadequate.
The key is early detection
Ex. We will make the products 2 days early to test if they work/taste ok etc. If no one is interested the first day, we will…

Question 11

Why do companies use benchmarking?

Answer 11

Use external comparisons to better understand your own current performance/progress
Rate yourself against how others have done to help set/adjust realistic goals.
Method of finding out what other people and organizations are doing well and incorporating those ideas.

Question 12

What is the purpose of the break-even point?

Answer 12

Give a break-even analysis which shows how many products need to be sold to cover costs. Any money made after your break-even point is profit.
*Break Even: (# items you must sell) = Total cost/(selling price per item)

Question 13

What do you need to think about when making a production plan?

Answer 13

Dealing with the methods and technology needed to make the product.
List the materials needed, and where you will get them (if you own it state that)
Describe the production process
Forecast how many items you expect to make and expect to sell
When will you do a practice run of making it and where?
What equipment, furniture, tools and power sources will you need for production and during the sale?

Question 14

What do you need to think about when making a financial plan?

Answer 14

Dealing with the money required to support various operations.
Where will you get the initial investment to buy the materials?
Explain all costs incurred and outline the prices you will set for products- link to the list you made in the production plan.
How much will each unit cost to make? How much will you sell it for?
Give a break-even analysis which shows how many products need to be sold to cover costs. Any money made after your break-even point is profit.
How many items will you make and what is your forecasted profit?
Explain where you will get a money box and float to make change.*

Question 15

What do you need to think about when making a marketing plan?

Answer 15

Dealing with the requirements of attracting consumers and distributing goods or services.
List and include all marketing materials
Ex: We made a display board to make our table look attractive, we will use promotions such as…

Question 16

What do you need to think about when making a facilities plan?

Answer 16

Dealing with facilities (rooms, buildings, places) and layouts required to support operations.
Think of the pre-planning and on the day of the event
Ex. We need Yousif’s kitchen, an oven, the fridge, a table in the front foyer…

Question 17

What do you need to think about when making a Human resources plan?

Answer 17

Dealing with personnel recruiting, selection, and placement of people into various jobs.
Describe what each person did/will do and why they were chosen to do that part.
Ex. Shanique bought the toppings because she knows how to make desserts, Byron made the signs because he is artistic, and Javier and Ronak put together the products because they are crafty…

Question 18

Explain the difference between the three organizational structures we studied in class.

Answer 18

Organization Structure
Organizing is arranging people and resources within an organization to work towards a common goal.
Different structures, such as functional, divisional, and matrix structures, are used to organize and coordinate organizational activities.

Functional Structures:
Functional structures group employees based on skills and tasks, promoting specialization and expertise.
Advantages include economies of scale and task assignments consistent with expertise, but communication and coordination issues may arise due to silos between functions.

Divisional Structures:
Divisional structures group employees based on products, regions, or customers, providing more flexibility to respond to environmental changes.
While divisional structures can enhance customer focus and adaptability, they may also increase costs and internal rivalries between divisions.

Matrix Structures:
Matrix structures combine elements of both functional and divisional structures, allowing for better interfunctional cooperation and problem-solving.
While matrix structures offer increased flexibility and better decision-making at the team level, they can also lead to power struggles, task confusion, and time-consuming team meetings.

Question 19

Name the advantages and disadvantages of each of the three organizational structures.

Answer 19

Functional
Task assignments consistent with expertise and training
High-quality technical problem-solving
In-depth training and skill development within functions
Clear career paths within functions

Difficulties in pinpointing responsibilities
Functional chimneys problem –– the lack of communication, coordination, and problem-solving across functions
The sense of cooperation and common purpose of the org as a whole tends to break down
Narrow view of performance objectives
Too many decisions referred upward in the hierarchy

Divisional
More flexibility and coordination in responding to environmental changes
Clear points of responsibility for product or service delivery
Expertise focused on specific customers, products, and regions
Greater ease in changing size by adding or deleting divisions

Duplication of resources and efforts across divisions
Competition and poor coordination across divisions
Emphasis on divisional goals at the expense of organizational goals

Matrix
Better inter-functional cooperation in operations and problem-solving
Increased flexibility in adding, removing, and changing operations to meet changing demands
Better customer service since there is always a program, product, or project manager who is fully informed and available to answer questions
Better performance accountability through the program, product, or project managers
Improved decision-making as problem-solving takes place at the team level, where the best information exists
Improved strategic management since top managers are freed from unnecessary problem-solving to focus time on strategic issues.

The two-boss system can result in power struggles, task confusion and conflict in work priorities
More team meetings - time-consuming
Teams may develop strong team loyalties that cause a loss of focus on larger organizational goals
Increased costs due to adding team leaders

Question 20

Explain organizational trends regarding the chain of command, span of control, unity of command, upside-down pyramid and centralization-decentralization.

Answer 20

Upside-down Pyramid
The upside-down pyramid is companies that put their lower-level employees before the top-level employees to help make decisions about the company
Customers are at the very top, then employees, then supervisors, then middle managers, then vice presidents, then CEOs

Centralization
Centralization is one unit having the power to make most or all decisions regarding the company
More companies are moving towards decentralization to have all levels make more decisions

Chain of command
The chain of command is the chain between employees from lower levels to the top levels
The shorter the chain of command is, the clearer communication is travelled and the less expensive it is because there are fewer employees to pay;
The chain is getting shorter

Span of Control
The span of control is the number of people you have responsibility over or the number of people who work under you
The wider span of control means having more people working under you;
The span of control is getting higher because middle manager levels are being cut out

Unity of Command
Unity of command is all employees having a single person they report to and follow orders from
More companies are incorporating less unity of command which means more cross-functional teams and more than one boss

Question 21

Describe the conditions when it is best to use democratic leadership.

Answer 21

Consultative- Leader assits in or creates the options
Leaders present options for majority roles
Everybody has a vote, but not everybody is satisfied
Persuasive Leadership- must convince minority
Time-consuming

Question 22

Describe the conditions when it is best to use autocratic leadership.

Answer 22

Leader takes charge and makes decisions
No other opinions considered
Alienates workers
Fast decision making
Good if the leader is the only expert

Question 23

Describe the conditions when it is best to use laissez-faire leadership.

Answer 23

Leaders share power with everyday
Everybody leads themselves
It is very inspiring if workers are ambitious and motivated
Unproductive and slow if members need guidance
Great for creative work
Relies on good inter-group relates and individual competency

Question 24

How do each of the different types of leadership powers work to motivate others?

Answer 24

Reward Power
Incentives and rewards for good behaviour
E.g. Earn a day off
Coercive power
Punishment for poor behaviour or failure to complete work
E.g. Staying late, having less freedom

Legitimate power
Use of authority to force work completion
E.g. Do it because I told you

Personal Powers
Referent Power
Use of respect and personality to inspire others to work hard
E.g. work wants to please the manager

Expert Power
Use of knowledge and competency to inspire others to use and work
E.g. Manager has proven skills so people follow

Question 25

Why is it important to learn about perception and think about perspective as a leader?

Answer 25

By honing your ability to distinguish between perception and perspective, you’ll gain a more comprehensive understanding of the situations you face, allowing you to: Make better decisions: Informed by a wider range of perspectives, your decisions will be more grounded and inclusive.

Question 26

Define perception and perspective.

Answer 26

Personal perspective shaped by life experience, family/culture/friends, society/media.
Initial bias perception based on incorrect assumptions and not knowing the truth
“We can work hard not to act on them even if we can’t stop them”

Question 27

Name, explain and give an example of all 4 types of faulty perception.

Answer 27

Snap Judgement (Availability Heuristic Bias)
Making up your mind before acquiring the relevant information or facts
E.g. Mike walked in late so Ms. K thought he slept in

Projection
Unconsciously take your feelings or faults and assume they are the same for others.
It could be a negative feeling. Fault or problem you don’t want to admit so you project it
You are waiting in line and are feeling impatient but tell your mother to be more patient instead.

Stereotyping (Broad to Small)
The belief is that a group of people have certain characteristcs/attributes and you project that onto an individual that fits into the group due to shared characteristics/attributes.
Teachers tend to love reading so you think that Ms. K likes reading.

Generalizations (Small to Broad)
One person in a group has certain characteristcs/attributes so you assume all people in that group will also share those characteristcs/attributes
Judging a whole group of people based on an experience you had with one person in that group.
E.g. You have a boring business teacher you assume all business teachers are boring.