Final Exam

Question 1

Planning

Answer 1

1. most fundamental management function
2. most controversial management function
3. goal-setting focus

Question 2

Goal

Answer 2

a desired future circumstance or condition

Question 3

Examples of goals

Answer 3

increase revenue, staff, profit, and equipment

decrease costs, staff, equipment

Question 4

Plan

Answer 4

blueprint for goal achievement

Question 5

Mission

Answer 5

why we exist! should be brief, purpose of organization

Question 6

Strategic plans

Answer 6

long term, visionary goals to achieve (typically 3-5 years)

Question 7

Tactical plans

Answer 7

feed into a specific part of a strategic plan’s goal, shorter
ex. Strategic plan: A B C D E
Tactical plan = E = social media = day to day operational MBO/MBM

Question 8

Operational plans

Answer 8

day-to-day and feed tactical and strategic plans

Question 9

two techniques to help with the operational planning

Answer 9

MBO

MBM

Question 10

MBO

Answer 10

management by objective (set objectives)

Question 11

MBM

Answer 11

Management by method (don’t focus on objective, focus on method used to get there)

Question 12

Effective goal setting

Answer 12

make sure goals are specific and measurable, defined time period, cover key results areas, challenging but realistic, linked to rewards

Question 13

Contingency Plan

Answer 13

a course of action that your organization would take if an unexpected event or situation occurs. … A contingency plan helps to ensure you are prepared for what may come; a crisis management plan empowers you to manage the response after the incident occurs.

Question 14

BCG Matrix

Answer 14

Market Growth y axis, low high

Market Share x axis, hi, low

Question 15

high market growth

high market share

Answer 15

star (ex. iPad)

Question 16

low market growth

high market share

Answer 16

cash cows (coca cola)

Question 17

high market growth

low market share

Answer 17

question mark

Question 18

low market growth

low market share

Answer 18

dog

Question 19

BCG Matrix helps

Answer 19

plan strategies and own personal investments

Question 20

Corporate Level Strategy (Grand Level Strategy)

Answer 20

Growth (want to get bigger, more money, grow business)

Question 21

Types of Grand/Corporate level strategy

Answer 21

1. concentration
2. vertical integration
3. related diversification
4. unrelated diversification

Question 22

Concentration

Answer 22

concentrate on what you already do (more/better)

ex. McDonald’s concentrates on fast food only

Question 23

Vertical Integration

Answer 23

buy your buyer or buy your seller

trees lumber jack paper mill staples

Question 24

when staples buys papermill

Answer 24

buying their seller

Question 25

trees buy lumberjack

Answer 25

buying their buyer

Question 26

related diversification

Answer 26

getting into products related to current products - already know expertise, put all eggs in one basket - coca cola buying minute maide

Question 27

unrelated diversification

Answer 27

getting into products unrelated to current products - getting into more than one market, don't know expertise ex. coca cola buying general motor

Question 28

Business Level Strategy (SBU)

Answer 28

(strategic business unit 1. differentiation 2. cost leadership 3. focus

Question 29

differentiation

Answer 29

try to be different

Question 30

cost leadership

Answer 30

$, compare based on price

Question 31

focus

Answer 31

focus on differentiation or price, but focus on region (geographical), focused customer group

Question 32

ex of business level strategy (SBU)

Answer 32

``` VW | Audi / \ Lamborghini Bentley Bently owned by Audi but works independently as an SBU ```

Question 33

Organizing principles

Answer 33

1. job scope 2. job depth 3. work specialization

Question 34

job scope

Answer 34

the number of different operations on the job (how many different activities do you do)

Question 35

narrow job scope

Answer 35

small number of operations (unhappy employees) (2 opportunities) - increase scope to make employees more happy

Question 36

job depth

Answer 36

the ability to move around, be social, have some freedoms in your job

Question 37

shallow depth

Answer 37

not even allowed to socialize with those next to you, leads to unhappy employees

Question 38

work specialization

Answer 38

division of labor - ways vertical: marketing -> boss -> boss -> boss horizontal: marketing HR Accounting

Question 39

authority

Answer 39

formal right based on position

Question 40

responsibility

Answer 40

accountability (who is held accountable for what happens)

Question 41

Delegation

Answer 41

passing authority and responsibility down to those below you (no delegation = micromanaging)

Question 42

parity principle

Answer 42

authority and responsibility must coincide (go together)

Question 43

Span of Management

Answer 43

- looks at how many employees a manager can manage | - traditional 5-10 employees, now up to 50-60

Question 44

span of management variables to consider (increase or decrease span of management

Answer 44

1. stable/routine work by subordinates? 2. subordinates perform similar tasks? 3. subordinates highly trained? 4. rules and procedures readily available for subordinates? 5. the manager is highly qualified?

Question 45

proximity

Answer 45

the farther the distance, the less the span (less employees) (general rule) - changing due to technology