Final 10,11&12 Flashcards
1
Q
What are the 2 key points of Strategy Implementation
A
Strategy Implementation:2 Key Points are
- Consider the plan for implementation before adopting a strategic alternative
- The greater the strategic change, the more complex the implementation
2
Q
what is Organizational Structure
A
Organizational Structure is
the formal means by which work is coordinated in an organization
3
Q
why does organizational structure exist
A
structure exists to provide control and coordination for the organization.
4
Q
What generally happens in a new business
A
in a new business, each employee often performs multiple tasks and the owner/manager is involved in all aspects of the business
5
Q
what from of organizational structure is present in a new business
A
a form of organization often called a simple structure.
6
Q
What is Vertical growth
A
Vertical growth refers to an increase in the length of the organization’s hierarchy (i.e., levels of management).
7
Q
What is span of control
A
The number of employees reporting to each manager represents that manager’s Span of control.
8
Q
What is a tall organization comprised of
A
Tall organization is comprised of many hierarchical levels and narrow spans of control
9
Q
What is a flat organization comprised of
A
a flat organization has few levels in its hierarchy and a wide span of control from top to bottom.
10
Q
What is centralization
A
centralization is structure where most strategic and operating decisions are made by managers at the top of the organization structure.
11
Q
What is decentralization
A
decentralization is structure where most strategic and operating decisions are made by managers at lower levels of the organization.
12
Q
What is horizontal growth
A
Horizontal Growth refers to an increase in the breadth of an organization’s structure.
13
Q
What is downsizing
A
Downsizing occurs when one or more hierarchical level(typically middle manager) is eliminated.
14
Q
What are the 4 Structural Forms of an organization
A
4 Structural Form options are
- Functional
- Product
- Geographic
- Matrix
15
Q
What is Functional Structure Structural Form of an organization
A
Functional Structure is where an organization is organized by functions.
16
Q
What is Product Divisional Structure Structural Form of an organization
A
Product Divisional Structure is where an organization is organize by products.
17
Q
What is Geographic Divisional Structure Structural Form of an organization
A
Geographic Divisional Structure is where an organization is organize by geography
18
Q
What is Matrix Structure Structural Form of an organization
A
Matrix Structure is where an organization combine functional and product divisional structures.
19
Q
What are the main concepts of Functional Structure
A
Main concepts for Functional Structure are:
i. Each sub-unit of the organization engages in firm-wide activities related to a particular function, (i.e. marketing, human resources, finance, or production)
ii. Common to new organizations
iii. Emphasizes specialization
iv. Fosters development of economies of scale
20
Q
What are the main concepts of Product Divisional Structure
A
Main concepts for Product Divisional Structure:
i.Divides the organization’s activities into self-contained entities, each responsible for producing, distributing, and selling its own products.
ii. Focus on products, the “real source” or success for the firm
iii. Pinpointing the responsibility for profits or losses is also easier because each product division becomes a profit center
21
Q
What is a profit center
A
a profit center is a well-defined organizational unit headed by a manager accountable for its revenues and expenditures.
22
Q
What are the main concepts of Geographic Divisional Structure
A
Main concepts for Geographic Divisional Structure
i. Activities and personnel are grouped by specific geographic locations.
ii. Useful when two or more divisions can be dissected easily along geographical lines
iii. Attractive when there are substantial differences in various geographical regions
23
Q
What are the main concepts of Matrix Structure
A
Main concepts for Matrix Structure
i.A combination of the functional and product divisional structures
ii. Members have “two (or more) bosses,” one for the functional area and one or more for the project area(s)
iii. Attractive when the organization faces a high degree of technological change, but can be confusing and complex
24
Q
How does one asses organizational structure
A
Assessing Organizational Structure
Functional, product divisional, geographic divisional, and matrix structures are pure forms. In reality, they are often combined to create an approach uniquely tailored to the strategic needs of the firm
25
What should be considered when selecting a structure
Considerations When Selecting A Structure are
i.Level of corporate involvement in business unit operations
ii. Compatibility of the structure with the corporate profile and the corporate strategy
iii. Number of hierarchical levels in the organization
iv. The extent to which the structure permits the appropriate grouping of activities
v. The extent to which the structure promotes effective coordination
vi. The extent to which the structure allows for appropriate centralization or decentralization of authority
26
What is Corporate Involvement in Business Unit Operations
Corporate Involvement in Business Unit Operations
i.extent to which corporate managers are involved in business-level operations varies from firm to firm
ii. Involvement is sometimes seen as a stabilizing force and is welcomed by top executives in business units
iii. some business unit managers refer to “corporate” in a less than positive light view involvement as “interference” or stifling
27
What is Corporate Restructuring
Corporate Restructuring is a change in the organization’s structure to improve efficiency and firm performance
28
What do restructuring efforts include
Restructuring efforts can includes
i. realigning divisions in the firm,
ii. reducing the amount of cash under the discretion of senior executives,
iii. acquiring or divesting business units.
29
when does restructuring occur
in Progressive firms when it becomes clear that a change is necessary.
common in large organization and should not be delayed until survival is at risk.
30
What is Organizational Culture
Organizational culture refers to the shared values and patterns of belief and behavior that are accepted and practiced by the members of a particular organization.
organization’s culture and its strategies should be in alignment.
31
What is Organizational subculture
Subcultures represent “cultures within a culture.”
32
What are adaptive cultures
Adaptive cultures exist when members of an organization are willing and eager to embrace any change that it consistent with the core values. Adaptive cultures emphasize innovation and encourage initiative.
33
What are inert cultures
Inert cultures are conservative and encourage maintenance of existing resources
34
what is characteristic of a strong culture
A strong culture is characterized by deeply rooted values and ways of thinking that regulate firm behavior
35
what is characteristic of a weak
A weak culture lacks values and ways of thinking that are widely accepted by members of the organization.
36
what is meant by diversity
Diversity refers to the extent to which individuals within an organization are different can be defined in many ways
37
How does diversity affect form performance
diversity to firm performance is inconclusive.
38
How does one shape culture
Shaping the Culture.
i. Cultural change is a complex process. Cultures do not develop overnight and are rarely changed in a short period of time.
ii. Culture change is possible efforts often fail, due to lack of understanding about how a culture can be changed and how long it is likely to take
39
what are the 5 ways to shape culture
5 Ways to Shape the Culture
1. Systematically pay attention to areas of the business believed to be linked to the success of the strategy
2. React strategically to critical incidents and organizational crises
3. Serve as a deliberate role model, teacher, or coach
4. Strategically allocate rewards and status.
5. Modify the procedures through which an organization recruits, selects, promotes, and terminates employees
40
What is strategy 1 in shaping culture
#1- Systematically pay attention to areas of the business believed to be linked to the success of the strategy
can be accomplished formally by measuring and controlling the activities of those areas, or less formally by making specific comments or questions at meetings
These areas should be ones identified as critical to the firm’s long-term performance and survival, (such as customer service, new product development, or quality control).
41
What is strategy 2 in shaping culture
#2- React strategically to critical incidents and organizational crises
The way a CEO deals with a crisis, can emphasize norms, values, and working procedures, or even create new ones.
42
What is strategy 3 in shaping culture
#3- Serve as a deliberate role model, teacher, or coach.
When a CEO models certain behavior, others in the organization are likely to adopt it as well
43
What is strategy 4 in shaping culture
#4- Strategically allocate rewards and status.
Leaders communicate their priorities by consistently linking pay raises and promotions, or the lack thereof, to particular behaviors
Rewarded behavior tends to continue and become ingrained in the fabric of the organization
44
What is strategy 5 in shaping culture
#5- Modify the procedures through which an organization recruits, selects, promotes, and terminates employees
Hire and promote individuals whose values are similar to those of the firm and whose beliefs and behaviors more closely fit the organization’s changing value system
easiest way to affect culture over the long term is to hire individuals who possess the desired cultural attributes
45
What are some issues with global concerns
Global Concerns
self-reference criterion
presents a potential problem. Managers believe that the leadership styles and organizational culture that work in their home country should work elsewhere, each nation
has its own unique culture, traditions, values, and beliefs
Organizational values and norms must be tailored to fit the unique culture of each country in which the organization operates, at least to some extent.
46
What is strategic leadership
| Strategic Leadership
Strategic Leadership
more than managerial leadership.
creating the vision for the firm, developing strategies, and empowering individuals throughout the organization to put those strategies into action.
47
what is managerial leadership
managerial) leadership
| when a manager secures the cooperation of others in accomplishing a goal.
48
What is leadership style and what are some styles
| .
Leadership Style
a consistent pattern of behavior when governing and making decisions
i. transnational
ii. transnational
49
What is the leadership style: Transactional Leaders
Transactional Leaders
use the authority of their office to exchange rewards such as pay and status for employees’ work efforts and generally seek to enhance an organization’s performance steadily, but not dramatically.
50
What is the leadership style: Transformational Leaders
Transformational Leaders
inspire involvement in a mission, giving followers a “dream” or “vision” of a higher calling, thereby seeking more dramatic changes in organizational performance
51
What type of leadership is associated with innovation
Transformational leadership is often associated with innovation
52
What is Joseph Schumpeter five types of innovation
Austrian economist Joseph Schumpeter identified five types of innovation:
(1) new products,
(2) new materials or resources,
(3) new markets,
(4) new production processes,
(5) new forms of organization.
Innovation often occurs through creative destruction
53
What is creative destruction
Innovation often occurs through creative destruction
| whereby managers consciously and constantly destroy the old by recombining its elements into new forms.
54
What is the most effective leadership style
Most effective leaders employ some of both extremes
best style depends on the situation,
many scholars and leaders are beginning to prefer a transformational style in most instances.
55
What increases the success of a leader.
a leader’s likelihood of success has also been tied to emotional intelligence,
56
what is emotional intelligence
emotional intelligence, one’s collection of psychological attributes, such as motivation, empathy, self-awareness, and social skills
57
What do execs that have passion for their work exhbit
Executives who possess a passion for their work, are socially oriented, and understand their own needs, as well as those of their subordinates, are more likely to gain the trust, confidence, and support necessary to lead their organizations
58
What are the steps for Executing Strategic Change
The steps for executing strategic change
1. Recognize the need for change.
2. Create a shared vision of what the change will “look like.”
3. Institutionalize the change
59
What is Step 1: Recognize the need for change for executing strategic change
Step 1: Recognize the need for change
Poor performing firms are usually first to recognize the need for change, and often replace their CEOs with outsiders. New leaders can sometimes make the decisions that an insider might be reluctant to make, while bringing a fresh perspective to the firm and its problems.
60
What is Step 2: Create a shared vision of what the change will “look like for executing strategic change
Step 2: Create a shared vision of what the change will “look like
The vision might be one of excellent customer service, industry leadership, or a leaner firm following a restructuring. The change effort is likely to be successful if members of the firm share a common vision for the company’s future.
61
What is Step 3: Institutionalize the change
Step 3: Institutionalize the change
Change starts at the top.” Without a strong commitment from the top executive and top management team, strategic change efforts are less likely to succeed.
62
What are the steps for Case Analysis Step 23: Strategy Execution
Case Analysis Step 23:Strategy Execution
i. How will the recommended strategic alternatives be implemented
ii. Be specificIdentify foreseeable problems and actions that might be considered to address them.
63
What are the steps of the Strategic Control Process
Strategic Control Process
1. Determine focus of control.
2. Identify standards or benchmarks.
3. Measure performance.
4. Compare standards to performance.
5. Institute changes as needed.
64
What does Strategic control address
Strategic control addresses the gaps between the intended and realized strategies.
65
What are the steps of the Strategic Control Process
Strategic Control Process
1. Determine focus of control.
2. Identify standards or benchmarks.
3. Measure performance.
4. Compare standards to performance.
5. Institute changes as needed.
66
Why do strategy managers use strategic control
Without strategic control, there are no clear benchmarks and ultimately no reliable measurements of how the company is doing.
67
What does strategic control enable executives to do
Strategic control enables executives to account for last-minute changes during the implementation process.
68
What is Step 1 of Strategic control
Step 1: Focus of Strategic Control
Focus should be internal: How well is the firm attaining its goals?
i. Focus should also be external: (What recent external changes are affecting the firm?)
ii. quantitative and qualitative factors should be considered.
69
What is Step 2 of Strategic control
Step 2: Strategic Control Standards (Benchmarks)
i Set standards for internal factors identified in the step 1.
ii. standards should be based on :
- competitive benchmarks,
- best practices
- other targets.
iii. Standards should be as specific as feasible.
70
What is competitive bench-marking
competitive bench-marking is the process of measuring a firm’s performance against that of the top performers, usually in the same industry.
what strategic control standards are based on
71
what are best practices
Best practice are processes or activities that have been successful in other firms
72
what are implications of best practices
i. can be adopted as a means of improving performance.
| ii. After determining the appropriate benchmarks, a firm’s managers set goals to meet or exceed them
73
What are some Published Information of Strategic Control
i. The PIMS
ii. Fortune Magazine
iii. Forbes
iv. Industry Week
v. Business Week
vi. Industry Standard
74
What is PIMS
(profit impact of market strategy) program contains quantitative and qualitative information on the performance of thousands of firms.
75
What is Fortune Magazine
Fortune magazine annually publishes the most- and least-admired U.S. corporations with annual sales of at least $500 million in such industries as electronics, pharmaceuticals, retailing, transportation, banking, insurance, metals, food, motor vehicles, and utilities
76
What are the other publications ( Forbes, Industry week, Business Week , Industry Standard)
Publications such as Forbes, Industry Week, Business Week, and the Industry Standard also provide performance scorecards based on similar criteria
77
Why are Product Service and Quality important
There has been a positive relationship between product/service quality
- both the conformance of a product or service to internal standards and the ultimate consumer’s perception of quality—and the financial performance of those firms.
78
What is innovation
Invocation is complex process and is conceptualized, measured, and controlled through a variety of means.
79
How can a firm increase the level of innovation
Expenditures on developing new or improved products and processes also tend to increase the level of innovation.
80
What is Market share
Market share is a common measure of performance.
Relative market share can be used as a key measure as well
81
What happens as market share increases
As market share increases, control over the external environment, economies of scale, and profitability are all likely to be enhanced.
82
What is Step 3-5 of Strategic control
Steps 3: Exerting Strategic Control
3. Measure performance.
4. Compare standards to performance.
5. Institute changes as needed.
i. Establish performance targets or benchmarks throughout the organization.
ii. Corrective action should be taken at all levels if actual performance is less than the standard that has been established unless extraordinary causes of the discrepancy can be identified.
83
What is a balanced scoreboard
Balanced Scoreboard
an array of quantitative and qualitative factors (i.e. return on assets, market share, customer loyalty and satisfaction, speed, and innovation. ) to measure Performance
84
What is formal organization
formal organization is the organizational structure.
it can help or hinder success.
85
How does formal organization contribute to success
formal organization can help or hinder success.
86
What is business processing engineering
Business process re- engineering is the application of technology and creativity in an effort to eliminate unnecessary operations or drastically improve those that are not performing well
87
What does business processing engineering do through formal organization
business processing engineering exerts control through the formal organization.
88
what is informal organization
informal organization refers to the norms, behaviors, and expectations that evolve when individuals and groups come into contact
89
What is a crisis
crisis refers to any substantial disruption in operations that physically affects an organization, its basic assumptions, or its core activities.
90
What is crisis management
Crisis management refers to the process of planning for and implementing crisis responses
91
What are some examples of crisis events
Famous Crises
i. J&J and Tylenol (1982)
ii. Union Carbide in Bhopal (1984)
iii. Exxon Valdez tanker spill (1989)
iv. New York terrorist attacks (2001)
v. Japanese earthquake & tsunami (2011
92
What are some examples of crises
Examples of crises include terrorism, natural disasters, boycotts, counterfeiting, and political unrest.
93
How often do crises organizations occur
Crises in organizations occur much more frequently than widely reported,
94
How many firms actively engage in crisis planning
Many firms do not actively engage in crisis planning
95
What is the crisis management framework
Steps should be taken
i. before crisis
ii. during crisis
iii. after crisis
96
in the crisis management framework what should be done before crisis
Before the Crisis, organizations should develop a crisis management team to develop and plan for worst-case scenarios and define standard operating procedures that should be implemented prior to any crisis event.
97
in the crisis management framework what should be done during the crisis
During the Crisis, an organizational spokesperson should communicate effectively with the public to minimize the effect of the crisis.
98
in the crisis management framework what should be done during the crisis after the crisis
After the Crisis, communication with the public should continue as needed and the cause of the crisis should be uncovered.
99
What are the concepts for case analysis step 24 strategic control
Case Analysis Step 24:Strategic Control:
i. Apply the strategic control model based on the recommended alternatives.
ii. Set standards in step 2 and identify the source of the standards.
iii. Be specific.
100
What are trends in strategic management
Trends in Strategic Management:
1. Globalization
2. Growing influence of the Internet
3. Sustainability
4. Erosion of the low cost-differentiation dichotomy
5. Effective crisis management
101
What are the concepts for case analysis step 25 Future Prospect
Case Analysis Step 25:Future Prospects:
i. Outline the future prospects for the firm if the recommendations are adopted.
ii. determine what you expect to happen if the recommendations are not adopted
