MGT 300 - Exam 1

Management

The process of working with people and distributing resources to achieve goals efficiently and effectively

4 Major Tasks of Managers

What kind of tasks are these?

• Planning

• Organizing

• Leading

• Controlling

Primary Roles of Managers

What kind of roles are these?

• Interpersonal

• Informational

• Decisional

Key Aspects of Entrepreneurial Mindset

What kind of aspects are these?

• Work in unpredictable circumstances

• Adapt to rapid change

• Persevere in spite of setbacks

• Accept and learn from failure

• Become comfortable working with the unknown

Triple Bottom Line

People, Planet, and Profit

Types of Organizations

What are these types of?

• Small

• Midsize

• Large

• Start-up

• Multinational

• Growth

• Nonprofit

Types of Managers

What are these types of?

• Top

• Middle

• First-Line

Mission

The organization’s central purpose that sets forth the vision

Vision

Describes what the organization will be now and in the future

Values

States the belief systems upheld by the organization and its employees

Types of Skills

What are these types of?

• Conceptual

• Technical

• Relational

Organizational Strategy

A plan of action for a company to achieve its long-term goals

Divisional Strategy

Determines how particular business units or divisions compete in a particular industry or market

Functional Strategy

Determines how employees will implement and achieve a tactical plan

Competitive Advantage

Characteristics of an organization’s products or services that distinguish it from competitors and provide an advantage in the marketplace

Miles-Snow Typology

Identifies four types of strategic behavior portrayed by companies: defender, prospector, analyzer, and reactor

Barrier to Entry

• An obstacle that makes it difficult for an organization to enter a particular market or replicate a competitor’s service and product offerings

• Examples: supply-side economies of scale, demand-side economies of scale, customer switching costs, capital requirements, incumbent advantages independent of size, access to distribution channels, restrictive government policy, expected retaliation, and rivalry

BCG Matrix

A framework developed by the Boston Consulting Group for evaluating business units according to growth and market share, so that managers could quickly categorize their company’s position in the industry where it competes

Quadrants in BCG Matrix

Star, Question Mark, Cash Cow, and Dog

Blue Ocean Strategy

• Refers to a company that creates a new market space where there is little or no competition

• Focus on creating new markets rather than competing with existing companies for customers

• Enables managers to break up long-held beliefs and assumptions to open up their minds to new opportunities and different approaches

SWOT Analysis

A method of assessing an organization’s strengths, weaknesses, opportunities, and threats

Big Strategies (Grand Strategies)

What kind of strategies are these?

• Growth Strategies

• Stability Strategies

• Defensive Strategies

Competitive Strategies

What kind of strategies are these?

• Cost Leadership

• Differentiation

• Cost Focus

• Differentiation Focus

“Stuck in the Middle”

When organizations begin to lose focus on the direction of the organization

Internal Environment

Comprises the forces inside the organization that affect how managers set expectations, how employees perform their roles, and how the company interacts with stakeholders and responds to the external environment

External Environment

The specific and general factors outside an organization that can change how it operates

Specific Environment

Includes the external factors that affect the organization’s operations and performance—including customers, talent, suppliers, competitors, advocacy, and regulation

General Environment

External forces that affect all organizations participating in an economy, where managers have little or no power to effect change; These forces include political and legal, resource availability, economic, technological, and sociocultural factors

Organizational Culture

A collection of beliefs that individuals and groups share to help their organization respond to environmental forces and changes

Observable Culture

Refers to the components of culture that we can see in an organization

Unobservable Culture

Consists of the components that lie beneath the surface of an organization, such as company values and assumptions

Distinctions of Culture

What kind of distinctions are these?

• Subcultures

• Countercultures

• Dominant Cultures

Artifacts of an Organization

What kind of artifacts are these?

• Slogans

• Stories

• Rituals

• Ceremonies

Competing Values Framework

Suggests four types of culture: clan, hierarchy, market, and adhocracy

Clan Culture

Culture of a family-like working environment where employees share the same goals and values and form strong personal relationships

Hierarchical Culture

Culture that has formal and structured places where employees are primarily guided by processes, rules, and procedures

Market Culture

Culture that emphasizes interactions conducted outside the organization with a view to increasing company competitiveness

Adhocracy Culture

Culture that is creative, dynamic, fast moving, and the quickest to adapt to changing markets

Leadership

A process of influence for directing behavior toward accomplishing goals

3 Primary Sources of Leadership

What kind of sources are these?

• External Leadership

• Participative Leadership

• Self-Leadership

External Leadership

• The influence that leaders exercise over their followers

• The giving of orders and the use of other methods of influence (such as rewards and punishments) by a formal organization manager over his or her followers

Participative Leadership

When a manager and a follower set a goal jointly

Self-Leadership

The process of influencing oneself

Social Cognitive Theory

What theory is this?

• Views the adoption and change of human behavior as a complex process with many parts; It recognizes that we influence and are influenced by the world in which we live

• Places importance on the capacity of a person to manage or control him- or herself—particularly when faced with difficult yet important tasks

• Recognizes the human ability to learn and experience tasks and events through vicarious and symbolic mechanisms—that is, by observing others and by using imagination

• Stresses the importance of our perceptions of our own effectiveness or potential to be effective

Intrinsic Motivation Theory (Self-Determination Theory)

What theory is this?

• Emphasizes the importance of the “natural” rewards that we enjoy when we take part in activities or tasks that we like

• Focus on the potential we have to harness the motivational forces available when we do things that we really enjoy

Effectiveness

____ is the level to which people or organizations achieve agreed-upon goals.

Rocky

In Chapter 1 of your textbook, the authors provide a “self leadership in the movies” feature to provide a creative example of someone who practiced self-leadership to achieve success. This feature profiled which movie?

Motivational

In Chapter 1 of your textbook, the authors contrast the three primary sources of leadership. Which of the following is NOT one of those sources?

External

Participative

Self-Leadership

Motivational

Threat

Laura is the owner of Laura's sunflower seeds. Her products are selling fast because they contain a unique salt, sea salt. Laura just hired a consulting firm to do research on her company and one finding from the consulting was that trends suggest the price of sea salt is going to rise substantially over the next few years. Laura was a student in Dr. Neck's class years ago and decides to do a SWOT analysis for her company. This forecasted increase in the cost of sea salt would be a ___ for Laura's sunflower seeds:

Threats to New Entrants

Susan opened up a running shoe store on Mill Avenue and immediately starting making a lot of profits the first year. However, the second year, her profits were dismal because Dr. Neck opened up a running store right down the street. This scenario illustrates which of the forces in Porter’s Five Forces Model:

Bargaining Power of Suppliers

Bargaining Power of Buyers

Availability of Substitutes

Threats to New Entrants

Porter’s Five Forces Model

1. Threat of new entrants: The likelihood of new competitors entering the market.

2. Bargaining power of suppliers: The influence suppliers have over the industry.

3. Bargaining power of buyers: The influence buyers have over the industry.

4. Threat of substitute products: The availability of alternative products or services.

5. Intensity of competitive rivalry: The level of competition among existing firms in the industry.

Porter’s Generic Business Strategies

1. Cost Leader: Producing product/service at lowest cost possible

2. Differentiation: Producing premium product/service with best materials

3. Cost Focus: Producing product/service at lowest cost possible, but targeting a specific market

4. Differentiation Focus: Producing premium product/service with best materials, but targeting a specific market

DEFINE Model

Define Mission and Goals

Evaluate Situation: SWOT Analysis

Formulate Plan After Mission Review

Implement Plan

Now

Evaluate Performance

Differentiator

Sangavi is CEO of Sangavi's Running Shoe Empire. She produces running shoes that are very unique and made with a cutting edge technology that reduces running injuries. Every dime she makes from sales, she puts back into Research and Development to make her shoes even more unique and injury proof. Her shoes typically sell for double the price of other running shoes on the market. Initially, only hard core runners purchased her shoes but she found that everyone wanted to buy her shoes so now she target her shoes to all active people. Sangavi would seem to be following Porter's generic business strategy of a:

Cost Leader

Focus Cost Leader

Differentiator

Focus Self Leader

Porter’s Generic Business Strategies

Dr. Neck recently showed us a video about the Go Pro company to specifically illustrate which management concept?

Porter’s Five Forces Model

Porter’s Generic Business Strategies

Four Functions of Management

Neck’s Leadership Typology

Culture

Dr. Neck recently showed us a video of the Lion King to specifically illustrate which management concept?

Porter’s Five Forces Model

Dr. Neck recently showed us a video about Luxotica to specifically illustrate which management concept?

SWOT Analysis

Dr. Neck recently showed us a video about Tabasco to specifically illustrate which management concept?

4 Functions of Management

Dr. Neck recently showed us a video about Trader Joe’s to specifically illustrate which management concept?

4 Functions of Management

Dr. Neck recently showed us a video about Shawshank Redemption to specifically illustrate which management concept?

Strategic Management/DEFINE Model

Dr. Neck recently showed us a video about Amazon to specifically illustrate which management concept?

Culture

Dr. Neck recently showed us a video about Any Given Sunday to specifically illustrate which management concept?

4 Functions of Management

1. Planning

2. Organization

3. Leading

4. Controlling