Final Flashcards
What are the two main characteristics of good managers?
Responsible for business performance (effective- doing the right things vs Efficient - doing things right)
Accountable for all key stakeholders (develop strategic and tactical plans and analyze competitive environments and plan, organize, direct and control operations)
What are the 4 management activities or functions?
- Planning - setting goals
- Control - Monitor performance
- Organizing - structuring
- Leading - guiding and motivating
What are the 5 steps of Planning?
- set goals
- indentify gap between current situation and goals
- Develop plan to achieve goals
- Implement plan
- Assess effectiveness of plan (look back)
What are the 3 types of planning?
- Strategic
- Tactical
- Operational
What is organizing?
- Determining how to use existing resources to implement plan
- Arranging jobs in a structure to create efficient task system
What is leading or directing?
guiding and motivating sub-ordinates to meet objectives
What gives managers the ability to lead?
- Authority to give orders
- Ability to guide employees
- Power to motivate subordinates
What is Controlling?
Managers monitor the firms performance to make sure it is meeting goals
What are the steps to controlling?
Establish standards -> Measure performance against standards -> assess if performance meets standards -> If yes continue activities if no adjust perfromance or standards
What are the types of managers and their responsibilities?
Top management - responsible for overall performance of the firm
MIddle management - responsible for implementing decisions
First line management - responsible for supervising employees
What 5 skills are important to managers and why?
Conceptual skills - Ability to think abstractly, analyze and see beyond the obvious
Decision Making skills - define problems and selsct best course of action
Time management skills - Allow managers to use their time productively
Human relations skills - Helps lead, motivate and coordinate subordinates
Technical skills - helps perform special tasks
What are the 6 decision making steps?
- Recognize and define the decision situation
- Identify alternatives
- Evaluate the alternatives
- Select the best alternative
- Implement the best alternative
- Follow up and evaluate results
Which level of managers need technical skills most?
Front line managers
Which level of managers need conceptual skills the most?
Top management
What is strategic management?
process of aligning the organization to it’s external environment
What are strategic goals?
Performance objectives that a firm plans to achieve
What is strategy?
Broad set of organizational plans to acheive goals
What are the purpose of setting goals?
Provieds direction guidance and motivation, assists in allocating resources, helps define corporate culture, helps managers assess perfromance
What is the time frame for long term, intermediate and short term goals?
long term: 5+ years
intermediate: 1-5 years
short term: <1 years
What are SMART goals?
Specific Measurable Attainable Relevant Time Based
What is the purpose of having a clearly laid out visions or purpose?
helps the organization move towards it’s goals and provides direction
What is a mission statement?
Statement about how an organization achieves it’s organization; a raison du etre, why the organiozation exists. The What? For whom and How questions
eg Walmart: Save people money so they can live better
How formulate strategy?
Strategic goals - Long term goal based on the mission statement
Analyzing the organization and it’s environment (SWOT)
Matching the organization and it’s environments
What are the 3 levels of strategy?
Corporate level start - What business will we pursue? How do these businesses relate to each other? Business Level (competitive) strategy - How will we compete in our chosen area Functional Strategy - What actions can ourt depts pursue to reach overall goals
What are corporate level strategies?
Concentration, growth, integration, diversification, investment reduction
What are the Business Level (competitive) strategies? The plan to establish profitable and sustainable position
Cost leadership
Differentiation
Focus
What is corporate culture?
- A firms “personality”
- Shared experiences of employees
- Stories, beliefs, norms that characterize the organization
Why is corp culture importtant?
can direct employee’ s efforts
- sets standards for acceptable business practices, norms, values, attire etc.
What are the challenges in communicating the culture?
- Ensuring new and existing managers understand the culture
- developing clear mission statement
- communicate the culture to employees
- Reward those who understand and maintain the culture
What is the corporate level strategy of concetration?
focusing on eone product or line that you do best
What is the corporate level strategy of Growth?
Steps to increase revenue/profitablility/marketshare - finding new markets or product development
What is the corporate level strategy of integration?
Globalization, horizontal integration, vertical integration
What is the corporate level strategy of Diversification?
adding elements to the business - adding related or unrelated products
What is the corporate level strategy of Investment reduction?
Reducing resources in one or more business lines
What are the 3 employee behaviours?
Performance behaviour - directly impacts their job, it’d their responsibilities
Organizational behaviour - extra perks to the compsny, above and beyond responsibilities
Counter-productive behaviour - detracts from org eg absenteeism, turnover, theft
What are the 3 differences among employees?
Physical - height strength, gender, sex etc
Psychological differences - Personality (big 5), attitudes
Emotional attributes - EQ ex. Social skills, Self awareness, self regulation, motivation, empathy
What are attitudes?
reflection of our belief and fee-fees about ideas, situations and other people
What is job satisfaction?
extent to which people have positive attitudes towards their jobs
What is organizational commitment?
reflects an individuals identification with organization and its’ mission
What is a psychological contract?
Expectations held by the employee concerning their contribution and what the organization will return in benefits ie their effort, loyalty, time for benefits, pay, job security etc
What is classical theory of motivation in workplace?
workers are motivated by money. Higher pay = higher motivation
What is the Hawthorne effect?
People work better when they recieve special attention from management
What is theory X?
Workers are lazy, dislike work irresponsible and uncooperative and must be PUNISHED for results.
Theory Y motherfucker, What is it?
Employees like work are energetic, growth oreinted, responsible and cooperative. Use intrinsic rewards rather than extrinsic rewards
What are the layers of maslowes heirarchy of needs from bottom up?
Physiological (food, shelter etc), Safety (job security, physical etc), Social (freindly workplace, social aspects etc), Esteem needs (Respect, sense of acheivement), Self-Actualization ( Achieving goals, realizing potential)
What is Three needs Theory?
A persons motivation can be explained by their need for power, acheivement and affiliation. People have one dominant needeg People w affiliation should be provided with cooperative group work, people w achievement need challenging task w regular feedback and wicked smahht team-mates. People with Power need an ant farm or something so they have control over sub-ordinates
What is the Hertzberg Two-Factor Theory?
Hygien factors - like pay and security and acceptable working conditions/supervisors (Satisfaction vs disatisfaction)
Motivating factors Recognition, responsibility, acheivement, (Satisfaction vs no satisfaction)
What are two contemporary motivation theories?
Expectancy theory and equity theory
What is the equity theory?
people work to their pay and others pay
What is Expectancy theory?
the goals where effort leads performance which leads to rewards which leads to personal goals
What is management by objective?
Collaborative goal setting that extends where employees learn about company wide objectives and feel like a team, They really see how they can improve company performance by acheiving their own goals
How does Participative Management and empowerment help anything?
Employees feel more satisfied if they have a say in how they do their jobs and how the company is managed. They feel more committed to their goals
What are service operations?
Productions that yeild tangible and intangible service products eg visit to a Movie theatre, A flight, restaurent visit etc
What is goods production?
Production activities that yield tangible products eg movie, airplane, food
Creating value through production - what are the ways to do it?
Time utility - maing product/service available when consumers want it
Place utility - Where consumers want it
Ownership (possesion) utility - Making a product/service that customers want to own/use
Form utility - The transformation of raw materials into a finished product that consumers want
What is operations management?
Activities, methods and technologies used in the production of a good or service
Transforming inputs into outputs
What are operation processes?
Activities, methods and technologies used in the production of goodies
What are goods-producing processes?
Methods and tech used in the production of goods and classified in 3 ways
- Type of transformation tech
- type of process (analytic or synthetic
- Amount of customer contact
What are the 5 types of transformation tech?
- Chemical processes
- Fabrication processes
- Assembly processes
- Transport processes
- Clerical processes
What are analytic processes?
breaking down basic resources into component parts ie extracting minerals from ore
What are synthetic processes?
Combining resources ie fertilizer or paint
What are the 4 drivers of operations in l33t business strats?
Quality, price, flexibility, dependability
What is are the 5 considerations in operations planning?
Capacity, Qulity, Location, Layout and methods planning
What are 3 considerations for capacity planning?
- production slightly higher than demand
- Accomodate seasonal and peak demands
- Address ways to use excess capacity
What are 3 considerations to location planning?
- Proximity to raw materials/resources
- Proximity to customers
- Costs of location
What are 3 considerations to Layout planning?
- Process layout - equipment and people are grouped by function
- Fixed position layout - Products cannot be moved around. Labour and equipment are brought to location of production
- Product Layout - Organizing equipment and people to produce one type of product or service (assembly lines, industrial robutts, Lean manufacturing)
What is flexible manufacturing?
reducing unecessary parts to decrease costs ie multiple makes of cars produced in the same assembly line
What is Soft manufacturing?
Emphasizes computer software and networks instead of manually controlled manufacturing
What is a master production schedule?
Top level schedule that determines which products, when and resources. Used to develop detailed schedules
Eg. Tesla’s production goal of 2k cars/week
What are 2 types of Scheduling service operations?
Low contact - based on desired completion dates and/or arrival
High contact - customer is directly involved (impacts scheduling)
Whats a Gantt Chart used for?
Scheduling - shows the steps or activities that are required and how long it takes to complete each step. Can be used to check progress.
What on earth is a PERT chart?
Tool for scheduling shows steps/activities that are required and how long it takes to complete each step. Specifies the critical path and identifies activities that can cause delays
What’s operations control?
Monitoring production performance by comparing the results to the original plans and schedules
What is Materials management and it’s five major areas?
planning, organizing and controlling the flows of materials from purchase distribution of finished goods
1. Transportation - means and resources of transporting
2. Warehousing - Storage for both incoming materials and outgoing goods
3. Inventory - recieving, storing, handling and counting raw materials
4. Supplier selection - finding and choosing supplier of services and materials to buy from evaluating and negotiating with supplier, buyer-seller relations
Purchasing - Aquisition of all raw materials and services required
What could Production Process Control be?
The methods used by companies for process control. Includes worker training, JIT production systems, materials requirement planning and quality control.
What is materials requirements planning (MRP)?
“bill of materials” that is “recipe” for finished product
- estimates how much material is needed, when and what type
- “recipe” is “fed” into a “computer” that controlls inventory and reschedules each stage of the production
- resources are acquired and put into production only as needed
What is Manufacturing Resource Planning 2 (MRP2)?
“Advanced” version of MRP. ties all “parts” of the organization into “production” activities ie production, inventory, HR, marketing, finance
Benchmarking is what?
comparing quality of a firms output to industry leaders
Internal - compares to past performance
external - compares to best practices
What re the 3 eras of marketing?
Product - 1900-60s informing people about products
Consumer - 60s-2000 - Persuading people to buy
Relationship Era - 2000 - to present Fostering sustainable relationships
What are the 3 key components of marketing?
- Activity, set of institutions and processes
- Value = benefits/costs
- Customers, clients, partners and society
What gets marketed?
consumer goods, industrial goodsm services and ideas
What is the competitive Environment?
Brand competition of similar products, Substitute products, International products
What are the 4 Ps of marketing?
- Product (product mix and line that is differentiated and satisfies needs)
- Price (high or low cost strategy)
- Promotion (choosing the right method of communicating the value)
- Place (distribution and retail outlets)
What are the 5 ways of promotion?
advertising personal selling sales promotions public relations Direct or interactive marketing
What are 5 different market segments?
- Geographic
- Demographics
- Pyschographics
- Behaviour variables
- Geo-demographic
What are Geographic Variables?
Area of residence affects consumers wants and needs ie rain or snow makes ppl want umbrellas or snow tires
What are psychographic variables?
lifestyle, opinions, interests, attitudes
What is behavioural segmentation and it’s 5 components?
Dividing a market into groups based on consumer knowledge, use or response to a product. Broken into:
- Benefits sought
- Usage rate
- occasion for use
- loyalty status
- user status
What is positioning?
The process of fixing, adapting and communicating the nature of the product and where it sits in consumers mind
What is the consumer buying process?
Problem/need recognition –> info seeking –> evaluation of alternatives –> purchase decision –> post purchase decision
What are the 7 steps to product development?
- Ideas
- screening
- Concept testing
- Business analysis
- Prototype development
- Product marketing and testing
- Commercialization
What is brand equity?
added value a brand provides beyond basic functional benefits
What is price skimming?
Setting an initial high price to cover costs and generate profits then lower it later
What is cost oriented pricing?
The costs plus some markup
What is break even analysis good for really?
Short term planning and decision making accepting special orders etc
What’s the benefits of effective promotion?
Increase product awareness+ knowledge
increase product preference, help position and add value, help control/stabilize sales volume
What’s the difference between a push and pull strategy?
Push firm promotes to intermediaries “pushing products on consumers”
Pull - markets irectly to consumers to get them to come to you
What are each of the 4 channel distributions?
Channel 1 - Direct to customers
Channel 2 - Retail distribution
Channel 3 - Wholesale
Channel 4 - Agent or brokers
What are advantages to channel 2 distribution?
Convenience to customers wider markets retailer handles the transaction retailer handles the transactions retailer handles after sales support
What are the 9 building blocks of the business model canvas?
- Customer segments (who do we serve? mass market, niche etc)
- Value propositions (Price and efficiencey, customer experience and outcome)
- Channels (retail, agent, e-commerce, wholesale)
- Customer relationships (dedicated service/relationship/community vs personal assistance only)
- revenue streams (subscription, sales, licensing, leasing/renting etc)
- Key resources (human, intellectual etc)
- Key activities (core competency ie supply chain to lower costs)
- Key partnerships (suppliers, selling agents, retailers etc)
- Cost structure (economies of scale, cost driven, value driven etc)
What is a Canvas Business model?
strategic management tool to help a firm align activities by illustrtating potential trade-offs
