Week 2 Flashcards
A target or end that management desires to reach.
goal
The actions or means managers intend to use to achieve organizational goals.
plans
plans that focus on ongoing activities designed to achieve an enduring set of goals.
standing plans,
Are plans that might be referred to as “what if” plans. They include sets of actions to be taken when a company’s initial plans have not worked well or if events in the external environment require a sudden change.
Contingency plans
X are the targets or ends the manager wants to reach.
Goals
Goals should be
specific, challenging, and realistic.
should be quantified and linked to a time frame.
They should be acceptable to the managers and employees charged with achieving them,
and they should be consistent both within and among work units.
X are the actions or means the manager intends to use to achieve goals.
Plans
X to a firm’s financials is a key element of success.
Tying plans
A set of procedures for making decisions about the organization’s long-term goals and strategies.
strategic planning
Major targets or end results relating to the organization’s long-term survival, value, and growth.
strategic goals
A pattern of actions and resource allocations designed to achieve the organization’s goals.
strategy
A set of procedures for translating broad strategic goals and plans into specific goals and plans that are relevant to a distinct portion of the organization, such as a functional area like marketing.
tactical planning
The process of identifying the specific procedures and processes required at lower levels of the organization.
operational planning
X plans integrate all the bottom-line practices of the firm.
Ideally, strategic plans
Starbucks’s emphasis on customer and service quality is a key element in its success.
Starbucks’s emphasis on customer and service quality is a key element in its success.
This shows the relationship between a firm’s practices and its long-term success.
strategic map
A process that involves managers from all parts of the organization in the formulation and implementation of strategic goals and strategies.
strategic management
An organization’s basic purpose and scope of operations.
mission
The long-term direction and strategic intent of a company.
strategic vision
Note: “There is no more powerful engine driving an organization toward excellence and long-term success than an attractive, worthwhile, and achievable vision of the future.” Burt Nanus
“There is no more powerful engine driving an organization toward excellence and long-term success than an attractive, worthwhile, and achievable vision of the future.” Burt Nanus
Groups and individuals who affect and are affected by the achievement of the organization’s mission, goals, and strategies.
stakeholders
Inputs to a system that can enhance performance.
resources
Note: Amazon’s key customer benefits are speed and excellence of service.
Amazon’s key customer benefits are speed and excellence of service.
The unique skills and/or knowledge an organization possesses that give it an edge over competitors.
core competencies
Aligning a xxxxxxx with “best practices” can improve its competitiveness.
firm’s bottom line practices
A comparison of strengths, weaknesses, opportunities, and threats that helps executives formulate strategy.
SWOT analysis
The set of businesses, markets, or industries in which an organization competes and the distribution of resources among those entities.
corporate strategy
A strategy employed for an organization that operates a single business and competes in a single industry.
concentration
The acquisition or development of new businesses that produce parts or components of the organization’s product.
vertical integration
A strategy used to add new businesses that produce related products or are involved in related markets and activities.
concentric diversification
Why do companies integrate vertically?
Companies that integrate vertically often do so to reduce their costs.
A strategy used to add new businesses that produce unrelated products or are involved in unrelated markets and activities.
conglomerate diversification
What do low price strategies require?
Low-price strategies usually require low production costs.
The major actions by which a business competes in a particular industry or market.
business strategy
A strategy an organization uses to build competitive advantage by being efficient and offering a standard, no-frills product.
low-cost strategy
What is the advantage of a high cost strategy?
A high-quality strategy is often more difficult for competitors to imitate.
A strategy an organization uses to build competitive advantage by being unique in its industry or market segment along one or more dimensions.
differentiation strategy
Strategies implemented by each functional area of the organization to support the organization’s business strategy.
functional strategies
A system designed to support managers in evaluating the organization’s progress regarding its strategy and, when discrepancies exist, taking corrective action.
strategic control system
the six major components of the strategic management process:
(1) establishment of mission, vision, and goals; (2) analysis of external opportunities and threats; (3) analysis of internal strengths and weaknesses; (4) SWOT (strengths, weaknesses, opportunities, and threats) analysis and strategy formulations; (5) strategy implementation; and (6) strategic control. Because this process is a planning and decision process, it is similar to the planning framework discussed earlier.
Name 5 Internal Resource Analysis
TABLE 4.2 Internal Resource Analysis
Financial Analysis
Examines financial strengths and weaknesses through financial statements such as a balance sheet and an income statement and compares trends to historical and industry figures (see Chapter 18).
Human Resources Assessment
Examines strengths and weaknesses of all levels of management and employees and focuses on key human resources activities, including recruitment, selection, placement, training, labor (union) relationships, compensation, promotion, appraisal, quality of work life, and human resources planning (see Chapters 10 and 11).
Marketing Audit
Examines strengths and weaknesses of major marketing activities and identifies markets, key market segments, and the competitive position (market share) of the organization within key markets.
Operations Analysis
Examines the strengths and weaknesses of the manufacturing, production, or service delivery activities of the organization (see Chapters 9, 16, and 17).
Other Internal Resource Analyses
Examine, as necessary and appropriate, the strengths and weaknesses of other organizational activities, such as research and development (product and process), management information systems, engineering, and purchasing.
Name two types of resources
1) tangible assets such as real estate, production facilities, raw materials, and so on, and
(2) intangible assets such as company reputation, culture, technical knowledge, and patents, as well as accumulated learning and experience.
is the process of assessing how well one company’s basic functions and skills compare to those of some other company or set of companies.
Benchmarking
What is the goal of benchmarking?
The goal of benchmarking is to thoroughly understand the “best practices” of other firms, and to undertake actions to achieve both better performance and lower costs.
—that is, benchmarking their different internal operations and departments against one another to disseminate the company’s best practices throughout the organization and thereby gain a competitive advantage.
internal benchmarking
What is the purpose of the swat analysis.
SWOT analysis to take advantage of available opportunities by capitalizing on the organization’s strengths, neutralizing its weakness, and countering potential threats.
Note: individuals seeking a job or a career change can find a “self-SWOT analysis” helpful. What are you particularly good at? What weaknesses might you need to overcome to improve your employment chances? What firms offer the best opportunity to market your skills to full advantage? Will you have a lot of competition from other job seekers? As with companies, this kind of analysis can be the beginning of a plan of action and can improve the plan’s effectiveness.
individuals seeking a job or a career change can find a “self-SWOT analysis” helpful. What are you particularly good at? What weaknesses might you need to overcome to improve your employment chances? What firms offer the best opportunity to market your skills to full advantage? Will you have a lot of competition from other job seekers? As with companies, this kind of analysis can be the beginning of a plan of action and can improve the plan’s effectiveness.
–identifies the set of businesses, markets, or industries in which the organization competes and the distribution of resources among those businesses.
Corporate Strategy
most popular techniques for analyzing a corporation’s strategy for managing its portfolio is
the BCG matrix,
How are companies categorized in a BCG matrix?
Each business in the corporation is plotted on the matrix on the basis of the growth rate of its market and the relative strength of its competitive position in that market (market share).
High-growth, weak-competitive-position businesses are called question marks. They require substantial investment to improve their position; otherwise, divestiture is recommended. High-growth, strong-competitive-position businesses are called stars. These businesses require heavy investment, but their strong position allows them to generate the needed revenues. Low-growth, strong-competitive-position businesses are called cash cows. These businesses generate revenues in excess of their investment needs and therefore fund other businesses. Finally, low-growth, weak-competitive-position businesses are called dogs. The remaining revenues from these businesses are realized, and then the businesses are divested.
High-growth, weak-competitive-position businesses are called question marks. They require substantial investment to improve their position; otherwise, divestiture is recommended. High-growth, strong-competitive-position businesses are called stars. These businesses require heavy investment, but their strong position allows them to generate the needed revenues. Low-growth, strong-competitive-position businesses are called cash cows. These businesses generate revenues in excess of their investment needs and therefore fund other businesses. Finally, low-growth, weak-competitive-position businesses are called dogs. The remaining revenues from these businesses are realized, and then the businesses are divested.
When is diversification needed?
the diversification efforts of an organization competing in a slow-growth, mature, or threatened industry often are applauded.
How do you impliment corporate strategy?
Step 1: Define strategic tasks. Articulate in simple language what must be done in a particular business to create or sustain a competitive advantage. Define strategic tasks to help employees understand how they contribute to the organization. This also can redefine relationships among the parts of the organization.
Step 2: Assess organization capabilities. Evaluate the organization’s ability to implement the strategic tasks. A task force (typically) interviews employees and managers to identify specific issues that help or hinder effective implementation. Results are summarized for top management. In the course of your career you are likely to be asked to participate in a task force. We discuss working effectively in teams in Chapter 14.
Step 3: Develop an implementation agenda. Management decides how it will change its management pattern, how critical interdependencies will be managed, what skills and individuals are needed in key roles, and what structures, measures, information, and rewards might ultimately support specified behavior. A philosophy statement, communicated in value terms, is the natural outcome of this process.
Step 4: Create an implementation plan. The top management team, the employee task force, and others develop the implementation plan. The top management team monitors progress. The employee task force is charged with providing feedback about how others in the organization are responding to the changes.
The ethical system stating that all people should uphold certain values that society needs to function.
universalism
Ethical principles established by international executives based in Caux, Switzerland, in collaboration with business leaders from Japan, Europe, and the United States.
Caux Principles
An ethical system defining acceptable behavior as that which maximizes consequences for the individual.
egoism
An ethical system stating that the greatest good for the greatest number should be the overriding concern of decision makers.
utilitarianism
Bases ethical behavior on the opinions and behaviors of relevant other people.
relativism
A perspective that what is moral comes from what a mature person with “good” moral character would deem right.
virtue ethics
Classifies people based on their level of moral judgment.
Kohlberg’s model of cognitive moral development
A perspective that what is moral comes from what a mature person with “good” moral character would deem right.
virtue ethics
An act passed into law by Congress in 2002 to establish strict accounting and reporting rules in order to make senior managers more accountable and to improve and maintain investor confidence.
Sarbanes-Oxley Act
In an organization it refers to the processes by which decisions are evaluated and made on the basis of right and wrong.
ethical climate
One who is both a moral person and a moral manager influencing others to behave ethically.
ethical leader
Tip: Here’s a small but potentially powerful suggestion. 43 Change your vocabulary: The word “ethics” is too loaded, even trite. Substitute “responsibility” or “decency.” And act accordingly.
Tip: Here’s a small but potentially powerful suggestion. 43 Change your vocabulary: The word “ethics” is too loaded, even trite. Substitute “responsibility” or “decency.” And act accordingly.
Company mechanisms typically designed by corporate counsel to prevent, detect, and punish legal violations.
compliance-based ethics programs
Company mechanisms designed to instill in people a personal responsibility for ethical behavior.
integrity-based ethics programs
Obligation toward society assumed by business.
corporate social responsibility
To produce goods and services that society wants at a price that perpetuates the business and satisfies its obligations to investors.
economic responsibilities
To obey local, state, federal, and relevant international laws.
legal responsibilities
Meeting other social expectations, not written as law.
ethical responsibilities
Additional behaviors and activities that society finds desirable and that the values of the business support.
philanthropic responsibilities
An education with five higher goals that balance self-interest with responsibility to others.
transcendent education
Its goal is the creation of sustainable economic development and improvement of quality of life worldwide for all organizational stakeholders.
ecocentric management
Economic growth and development that meets present needs without harming the needs of future generations.
sustainable growth
A process of analyzing all inputs and outputs, though the entire “cradle-to-grave” life of a product, to determine total environmental impact.
Life-cycle analysis (LCA)
A process planners use, within time and resource constraints, to gather, interpret, and summarize all information relevant to the planning issue under consideration.
situational analysis
