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Principles of Management > Test 2 > Flashcards

Test 2 Flashcards

1
Q

Planning

A

-Choosing a goal
-developing a strategy to achieve that goal

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2
Q

Benefits of planning

A

-intensifies efforts
-leads to persistence
-provides direction
-encourages the development of tasks/strategies
-works for companies/individuals

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3
Q

Goal Commitment

A

Determination to achieve a goal

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4
Q

Goal Commitment Techniques

A

-Setting goals participatively
-Making the goal public
-Obtaining top management support

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5
Q

Proximal Goals

A

short-term/subgoals

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6
Q

Distal Goals

A

long-term or primary goals

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7
Q

Strategic Plans

A

-Overall company plans
-clarify how the company will serve customers and position itself against competitors
-over two to five years
-Top management

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8
Q

Tactical Plans

A

-Plans created and implemented by middle managers
-direct behavior, efforts, and attention
-over six months to two years

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9
Q

Operational Plans

A

-Day to day plans
-developed and implemented by lower-level managers
-producing or delivering the organization’s products and services
-over a 30 day to 6 month period

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10
Q

Type of Operational Plans

A

-single use
-standing plans
-budgets

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11
Q

Standing Plans

A

Plans used repeatedly to handle frequently recurring events

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12
Q

Decision Making

A

process of choosing a solution from available alternatives

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13
Q

Rational Decision Making

A

-Systematic process
-defining problems
-evaluating alternatives
-choosing optimal solutions

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14
Q

Rational Decision Making Steps

A

1.) define the problem

2.) identify decision criteria

3.) weigh the criteria

4.) generate alternative courses of action

5.) evaluate each alternative against each criterion systematically

6.) compute the optimal decision

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15
Q

Two ways to weigh the criteria

A

-Absolute comparison (compared to standard)

-Relative comparison (compared to one another)

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16
Q

Rational Decision Making Limits

A

-Managers don’t operate in a perfect world with no restraints

-Makes it difficult to maximize decisions

-Maximize

-Satisfying

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17
Q

Maximize (Rational Decision Making)

A

choosing best alternative

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18
Q

Satisfying (Rational Decision Making)

A

choosing a “good enough” alternative

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19
Q

Resources

A

-The assets and knowledge used by an organization

-Improves effectiveness/efficiency

-Creates and sustains competitive advantage

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20
Q

Competitive Advantage

A

Providing greater value for customers than competitors can

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21
Q

Strategy-making process steps

A

1.) Assess need for strategic change

2.) Conduct situational analysis (SWOT)

3.) Choose strategic alternatives

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22
Q

Competitive Inertia

A

A reluctance to change strategies or competitive practices that have been successful in the past

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23
Q

Strategic Alternatives

A

-Managers should choose a risk avoiding strategy/risk seeking strategy
- based on whether the company falls above or below strategic reference points

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24
Q

SWOT

A

-assessment of the strengths and weaknesses in an organization’s internal environment

-opportunities and threats in its external environment.

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25
Q

Distinctive Competence

A

What a company can make, do, or perform better than its competitors

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26
Q

Portfolio Strategies

A

A corporate level strategy that minimizes risk
-diversifying investment among various businesses or product lines

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27
Q

Diversification (Portfolio)

A

-A strategy for reducing risk
-buying a variety of items
-failure of one stock or one business does not doom the entire portfolio

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28
Q

Boston Consulting Group (BCG)

A

-BCG categorizes a corporation’s businesses by growth rate and relative market share
-helps managers decide how to invest corporate funds

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29
Q

BCG Categorization

A

-Question mark

-Cash cow

-Dog

-Stars

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30
Q

Question Mark (BCG)

A

-small market share
-high market growth

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31
Q

Cash Cow (BCG)

A

-large market share
-low market growth

32
Q

Dog (BCG)

A

-small market share
-low market growth

33
Q

Stars (BCG)

A

Large market growth
-high market growth

34
Q

Grand Strategies

A

-used to achieve strategic goals
-guide strategic alternatives that managers of individual businesses or subunits may use

35
Q

Grand Strategy Types

A

-Growth strategy

-Stability

-Retrenchment

-Recovery

36
Q

Growth strategy (grand strategy)

A

-Focuses on increasing profits, revenues, market share, or the number of places in which the company does business

-Merger/acquisition (external)

-Expanding existing business

37
Q

Stability strategy (grand strategy)

A

Focuses on improving the way in which the company sells the same products or services to the same customers

38
Q

Retrenchment strategy (grand strategy)

A

-Focuses on turning around very poor company performance by shrinking the size or scope of the business

-Cost reductions, laying off employees, closing stores

39
Q

Recovery strategy (grand strategy)

A

Taken after retrenchment to return to growth strategy

40
Q

Porter Industry Strategies

A

-Bargaining power of suppliers

-Threat of new entrants

-Bargaining power of buyers

-Threat of substitute product/service

41
Q

Positioning Strategies

A

-Protects your company from the negative effects of industry-wide competition
-creates a sustainable competitive advantage

42
Q

Positioning Strategy Types

A

-Cost leadership

-Differentiation

-Focus strategy

43
Q

Cost Leadership (positioning strategy)

A

-Producing a product or service of acceptable quality at consistently lower production costs than competitors can
-firm can offer the product or service at the lowest price in the industry

44
Q

Differentiation (positioning strategy)

A

-Providing a product or service that is sufficiently different from competitors offerings
-customers are willing to pay a premium price for

45
Q

Focus Strategy (positioning strategy)

A

-produce a specialized product or service
-for a limited, specifically targeted group of customers in a particular geographic region/market segment

46
Q

Organizational innovation

A

The successful implementation of creative ideas in organizations

47
Q

Various innovation streams

A

-Technological discontinuity

-Discontinuous change

-Dominant design

48
Q

Technological Discontinuity (innovation streams)

A

-Performance/functional breakthrough
-created by a scientific advance or a unique combination of existing technologies

49
Q

Discontinuous change (innovation streams)

A

-Technological substitution
-Design competition

50
Q

Dominant Design (innovation streams)

A

New technological design/process that becomes the accepted market standard

51
Q

Creative Work environments

A

Workplace cultures in which workers perceive new ideas are welcomed, valued, and encouraged

52
Q

organization decline

A

-A large decrease in organizational performance
-occurs when companies don’t anticipate, recognize, neutralize, or adapt to the internal or external pressures that threaten their survival

53
Q

Managing Resistance to Change

A

-Unfreezing

-Change intervention

-Refreezing

54
Q

Unfreezing (resistance to change)

A

Getting people affected by change to believe that change is needed

55
Q

Change Intervention (resistance to change)

A

The process used to get workers and managers to change their behaviors and work practices

56
Q

Refreezing (resistance to change)

A

Supporting and reinforcing new changes so they stick

57
Q

Direct Foreign Investment

A

Method of investment in which a company builds a new business or buys an existing business in a foreign country

58
Q

Different types of Trade Barriers

A

-Protectionism
-Tariff
-Nontariff barriers
-Quotas
-Voluntary export restraints
-Gov’t import standard
-Subsidies
-Customs classification

59
Q

Protectionism (barrier)

A

Gov’t trade barriers to shield domestic companies and their workers from foreign competition

60
Q

Tariff (barrier)

A

Direct tax on imported goods

61
Q

non tariff barriers

A

Nontax methods of increasing cost/reducing the volume of imported goods

62
Q

Quotas (barrier)

A

Limit on the number of imported goods

63
Q

voluntary export restraints (barrier)

A

Imposed limits on the number or volume of products exported to a particular country

64
Q

Government import standard (barrier)

A

Standard established to protect the health and safety of citizens

65
Q

Subsidies (barrier)

A

Gov’t loans, grants, and tax deferments given to domestic companies to protect from foreign trade

66
Q

Customs classification (barrier)

A

Classification assigned to imported products by gov’t officials that affects the size of the tariff and the imposition of import quotas

67
Q

Trade agreements

A

-General Agreement on Tariffs and Trade (GATT)

-World Trade Organization (WTO)

68
Q

General Agreement on Tariffs and Trade (GATT)

A

-Worldwide trade agreement
-Limited government subsidies
-Establish protections for intellectual property

69
Q

World Trade Organization (WTO)

A

-Successor of GATT
-Only international organization dealing with the global rules of trade between nations
-Main function is to ensure that trade flows as smoothly, predictably, and freely as possible

70
Q

global consistency

A

-The multinational company has offices, manufacturing plants, and distribution facilities in different countries
-runs them all using the same rules, guidelines, policies, and procedures
-Simplifies decisions
-Involves risk using management procedures poorly suited to country’s markets, cultures, and employees

71
Q

Local Adaption

A

-Modifying rules, guidelines, policies, and procedures to adapt to differences in foreign customers, gov’t, and regulatory agencies
-Risk of losing cost-effectiveness and productivity that result from using standardized rules/procedures
-Locally sourcing inputs is desired

72
Q

Exporting

A

Selling domestically produced products to customers in foreign countries

73
Q

Strategic alliance

A

Agreement in which companies combine key resources, cost, risks, technology, and people

74
Q

Joint venture (Strategic alliance)

A

-Two existing companies collaborate to form a third
-independent company
-engage in a clearly defined business activity

75
Q

wholly owned affiliates

A

Foreign offices, facilities, and manufacturing plants that are 100 percent owned by the parent company

Principles of Management (2 decks)

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