Unit 1 - Managerial Decision Making Flashcards
Failing to make a decision quickly enough can:
result in a missed business opportunity.
Employees in a company are affected by managerial decision-making because they are _________.
stakeholders
Management decision-making is often _________.
difficult
Programmed decisions:
are those that are repeated over time and for which an existing set of rules can be developed to guide the process.
The easiest type of decision to teach others is a(n) _________.
programmed decision
Nonprogrammed decisions require a manager to:
generate multiple options.
What do time constraints often force managers to do?
Make reasonable nonprogrammed decisions.
What does confirmation bias encourage?
Familiar decision-making
If a manager has all available information, why may a poor decision still be made?
Bounded rationality
What is Bonded Rationality?
the idea that for complex issues we cannot be completely rational, because we cannot fully grasp all the possible alternatives, nor can we understand all the implications of every possible alternative.
What decision-making tool can you apply in this case?
Heuristics
What is Heuristics?
the mental shortcuts that managers take when making programmed (routine, low-involvement) decisions like this. They save a great deal of time for managers.
If you are faced with a serious ethical dilemma at work, what should you do?
apply the ethical decision-making model.
You are given a task new to the company with little guidance from management.
What nonprogrammed approach may help you the most in completing it successfully?
Being creative
A devil’s advocate is a(n) _________.
a person who intentionally takes on the role of critic. Their job is to point out flawed logic, challenge the group’s evaluations of various alternatives, and identify weaknesses in proposed solutions.
What is Groupthink?
Groupthink occurs when group members choose not to voice their concerns or objections because they would rather keep the peace and not annoy or antagonize others. Sometimes groupthink occurs because the group has a positive team spirit and camaraderie, and individual group members don’t want that to change by introducing conflict. It can also occur because past successes have made the team complacent.
Brainstorming is a(n) _________.
group decision-making process
To keep customers satisfied with their products and services, companies use _________.
environmental scanning
What is environmental scanning?
The systematic and intentional analysis of both a firm’s internal state and its external, competitive environment.
Strategic analysis is:
a high priority for successful companies.
is the process that firms use to study and understand the many different layers and aspects of their competitive environment.
A company’s competitive environment:
changes constantly.
Outdated technology would show up as a(n) __________ in a SWOT analysis.
weakness
A SWOT analysis is primarily used to:
conduct a strategic assessment.
What does the acronym SWOT stand for?
Strengths, Weaknesses, Opportunities, Threats
Which macro environmental factor will you need to emphasize in your work?
A firm’s macro environment contains elements that can impact the firm but are generally beyond its direct control. These elements are characteristics of the world at large and are factors that all businesses must contend with, regardless of the industry they are in or type of business they are. Globalization is one of these elements.
Your company is revamping its marketing strategy in Germany to remain competitive and adapt to the environment. You must make recommendations to the CEO.
What is one key recommendation you make?
Evaluate the impact of sociocultural changes in the country.
As a congressional staffer, you are asked to put together a brief on French political factors.
What specific topics will you examine?
Taxation, tariffs and trade agreements
You are new to the property management industry and have just been hired by a local company.
As you chart your career path, what aspect of the company’s micro environment should you focus on?
Rivalry with other property management companies
In terms of Porter’s model, how has the expansion into electric vehicles changed the automobile market?
The competitive rivalry has increased.
You are tasked by your company with setting up manufacturing of a new product and keeping costs as low as possible. You must determine how to source the supply of parts and components.
What is a reasonable strategy according to Porter’s model?
Keep supplier power low by sourcing from several suppliers.
Examining the internal environment of a company will include ________.
company resources
Resources of a company’s internal environment include _________.
employees
Internal capabilities include __________.
the ability to offer low prices
The process of attracting customers to a company’s products and away from the products of rivals is called _________.
competition
