mgt 3200 kerry sauley lsu exam 1

1. What is management?

Process for achieving desired results through other

2. What are the 2 key concerns of management?

Efficienty and effectiveness

3. What is effectiveness concerned with? efficiency?

Effectiveness is concerned with achieving desired results and acquiring market share

4. How are effectiveness and efficiency related?

Efficient organizations tend to be effective organizations; but it never guarantees effectiveness

5. What is your important resource as a manager?

People, some managers suffer from injelitance- they are afraid of someone taking their managerial position. This most directly effects staffing and secondarily effects leading

6. Is management art or science? When is it considered a science? an art?

Both, in the academic world it is a science, in practice it is an art

7. How did management become important and why is it still significant today?

Putting the skills of craftsman into the machine

8. What was the basic change in the industrial revolution

Putting the skills of craftsman into the machine

9. What happened to productivity (supply), prices, and demand as a result of the industrial revolution?

Productivity went up , prices went down, and demand went up

10. What was the pivotal event of our time, according to Drucker?

When owners started relinquishing their management to professional managers- this was to meet mass demand

11. Why do most businesses fail?Poor management

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1. What does a first-line manager do? What are the names associated with 1st-line management?

First line- only managers that don't manage other managers, they implement plans and common names are foreman and supervisor

1. What does a middle level manager do? What are the names associated with middle level manager

They interpret(communicate) and integrate (coordinate) Department head

2. What is corporate downsizing? What happens in corporate downsizing? What level of management is most adversely affected

Cut costs to become more efficient, people get tired and burntout and often loose good people, middle management is most affected

1 management levels are eliminated

2remaining managers take on more work

3implement information technology systems to allow communication from top to first line managers

4outsource support management jobs

Survivor syndrome-after downsizing they feal guilty and anxious because they are scared of it happening again, they are guilty anxious and depressed. The victims turn out to be happier

3. What does a top manager do? What are the names associated with top management?

3. The primary function of a top manager is planning/strategy

They also legitimize the corportation

3. What is the difference between a line manager and a staff manager?

Line managers have responsibility over transformation process, located at every level of management

Staff managers provide support and guidance for line managers, they are typically located at middle management

3. What is the difference between a functional manager and a general manager?

Functional managers have one area and general managers are in charge of all areas

3. What is the difference between an administrator and a manager?

Administrator=not for profit

Manager=profit

3. What are the five functions of management? Be able to identify and describe the five functions of management

Planning, Organizing, staffing, leading, controlling; while starting it is sequential but after it has started they occur simultaneously

4. What does "planning has primacy" mean?

It comes before all others

4. What are the three aspects of controlling?

Monitor performance, compare actual with hoped for, perform corrective action or reward good work; another name for controlling is feedback

4. What are the siamese twins of management?

Planning and controlling

4. What is (are) the most important function(s) for a 1st-line manager? Middle manager? Top manager?

Leading and staffing, organizing, planning

4. What are three managerial roles Mintzberg identified? Be able to identify each role.

Interpersonal, informational, decision making

4. What gives rise to the three managerial roles, according to Mintzberg?

Given authority over units, which gives rise to status, status gets interpersonal information; poor relationshops= poor decisions

4. What are three managerial skills identified by Katz? Be able to identify each skill.

Technical- ability related to method process or procedure

Human- ability to get along with others

Conceptual- problem solving/forecasting

4. At what level of management are conceptual skills most important? Technical skills? Human skills?

Top, first line, all

4. What skill is most difficult to develop? Why?

Conceptual- it deals with problem solving and forecasting

4. According to Luthans(1988), are effective managers successful managers in general?

They are not, successful managers were promoted rapidly and effective managers aren't rewarded appropriately, train your replacement

4. What percent of effective managers are successful?

10 percent, and these guys do equal amounts of communication and networking

4. On what activity do effective managers spend the majority of their time? Successful managers?

4. Communicating down, networking up

4. What is the primary difference between derailed executives and executives who made it to top management, according to the Center for Creative Leadership?

Derailed executives were incencitive to other people

4. What are the three basic characteristics of an open system?

Interacts with the environment to survive.

-INPUTS-raw materials from environments

-TRANSFORMATION into products (outputs)

-OUTPUTS are then exported into environment.

as environment changes, the system has to change.

Reactive change- as environment changes, we change

proactive change- we make environment to change us

4. What is the cyclical nature of the nature transformation process? Negative entropy? Buffering the technical core? Role differentiation and specialization? Synergy? Equifinality?

Cyclical- raw materials are input, transformed into outputs, which customers hopefully buy and give you money to buy more inputs.

-Negative entropy- trying to stop the decline of a system over time, keeping up with the changing times.

-Buffering the technical core- buffer production from threatening environmental changes

-role differentiation and specialization- everyone can specialize and be better at their jobs.

-Synergy-2+2=5 the whole is greater than the sum of its parts

-Equifinality- Differentiation in terms of quality design and service, good quality at a low price. Choose which market you're going to go after.

4. What are the five subsystems of an organization? What functions do each subsystem perform?

Production-

Boundary Expanding- input and output expanding

Adaptive

Managerial + Maintenance-greater efficiency

4. What are the two major dependencies in the external environment? What is the threat to these 2 major dependencies?

4.

- Supplies and customers

-Competition.

4. How do customers influence organizations and how do organizations influence customers?

-Customers aren't powerful when they don't have any alternatives, They have the power of choice if you have competition. When customers are powerful, they can lower your profitability. Organizations influence customers through advertising and market research.

4. How much more does it cost to find a new customer than to keep an old one, according to Total Quality Management estimates?

-5x as much. Do everything within reason to keep them happy. Loyal to employees>happy employees>customer service^> happy customers

5. How do suppliers influence organizations and how do organizations influence suppliers (i.e., 3 ways to establish and maintain a positive relationship with suppliers)?

first way- buy up the supplier, this gives you the same goal.

2nd way- lock in long-term contracts with the supplier

3rd way- reduce # of suppliers, play them off each other

6. What is the law of the marketplace?

Organizations unable to compete will be forced to change their product lines or die out.

6. What are the five forces of competition and how does each influence the level of competition within an industry? -

Rivalry among-Threat of new entrants

-Threat of substitutes

-Power of suppliers

-Power of customers

organizations

7. What are the barriers to entry into an industry

Regulation

Requirement

Loyalty

Distribution channels

8. What happens when a new entrant comes into the market/industry?

Competition increases, supply increases prices decrease

8. What determines if a supplier is powerful? Customer?

A lot of customers

8. How do powerful suppliers and customers influence organizations?

Powerful customers make big purchases

9. How do substitutes affect an industry?

...

9. What are process and product innovations? What is the focus of each?

Process- advancement made in transformation-efficiency

Product- advancement in good or service- effectiveness

9. What are the general effects of technology on an industry?

Increase in competition and promote product obsolescence, techno innovations force prices down

9. How does the economy influence an organization

Does so INDIRECTLY by effecting demand, organization cannot influence the conomy

10. What are the four ways that government influences organizations?

Subsidies, regulation, taxes, economic policies

10. What is the shadow bureaucracy?

Government regulation, theres always a shadow watching every department in the organization; this is actually both an opportunity and a cost of doing business,some companies sell air cleaning equipment while others have to buy that equipment

10. What are the three ways organizations influence government?

Direct Political action- voting, PACS

Lobbying

Illegal activity- black mailing and kickbacks

10. What is a PAC? What are the limits regarding PAC contributions to campaigns?

They are a political action committee they can only directly donate 5000 dollars to a party but there is no limit on indirect contributions this is called soft money

10. How does society influence business? Business influence society?

If society doest perceive you as legitimate they will try to shut you down' top managers are concerened with this legitimacy factor; businesses give back

10. How does the international component of the environment influence organizations?

Threat: foreign business coming in and taking market share

Opportunity: cheap labor, offshoring, gain marketshare

10. What is environmental scanning? How is it related to planning and organizational performance?

10. Gathering information about trends in the environment, looking for threats and opportunites. Environmental scanning is directly associated with planning

10. What are the three purposes of planning?

Fundamental- establish goals through planning

Planning is a means to an end

Offensive- should help you exploit opportunities

Defensive- avoid threats- related to environment

10. Why is planning important

Planning is a means to an end

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11. Organizations who promote planning tend to have higher sales/profits. This is not a guarantee, but on average, business do better overall when they plan more. This helps develop the necessary CONCEPTUAL and HUMAN skills.

-Planning provides a common goal that leads to better team work.

-Planning helps you develop performance standards. (Goes hand-in-hand with controlling)

12. What is Gresham's law of planning

Even when managers have the best intentions to plan, planning still gets neglected, therefore one should always plan first before handling day to day business

13. What does the non-planner typically blame for his/her poor performance?

They have an external locus of control, meaning that they place the blame on what is around them or more often then not on luck

13. What are the five phases of the planning process and what happens at each phase?

Establish Objectives(goal setting)

Develop Premises(forecasting future)

Decision Making(deciding on plan)

Course of action(motivating)

Evaluating results

13. What provides the basis for Phase 1: Establishing Objectives?

Environmental scanning

13. What are SMART goals?

Specific

Measurable

Achievable, yet challenging

Relevent/Important areas of activity

Trackable

Paritos rule

: 80% of results come from 20% of the job

13. What is contingency planning? What are the benefits and drawbacks?

Developing many future scenarios and a plan for every scenario; this is very pro active b/c you will be ready with the plan as soon as a change occurs

It is costly so it shouldn't be implemented in a stable environment

13. What are the keys to effective implementation of a plan?

Tie it to the budgeting system

Clearly communicate the plan

What it is and why, how it will effect the lowers

Motivate people to carry out the plan

Participate in planning process

13. What function of management is Phase 5: Evaluating Results?

Controlling function of management

13. What is the basic dilemma in planning

Dilemma is between commitment and flexibility, if you make the plan you wont want to stray from it

14. What are the different failures to avoid in planning? Be able to identify

Top down delegation of planning

Must lead by example

Avoid plans that are too complex

15. What is the crystal ball syndrome? Cure-all syndrome? Persian messenger syndrome?

Crystal ball- create plan but have problems implementing it

Cure all- they think if they plan everything will be taken care of

Messenger- shoot your messenger and they wont ever give you information

15. What is the focus of strategic planning?

Establishing and maintaining positive external relationship with the environment

15. What are the four components of a well-thought out strategy? Be able to identify.

Scope-how many markets to be in

Resource deployment

Distinctive competence- set apart from competition

Synergy= 1+1=3

16. What are the four elements of strategy formulation and what does each element consist of?

Analyze the mission statement

Analyze the external environment

Analyze the internal environtment

Analyze the managerial value system

16. What are benefits of a mission statement?

Reason for existence

Source of pride for employees

Target for a plan

Source of legitimacy

16. What is a SWOT analysis?

External and internal analysis

StrengthThreats

Weakness

Opportunites

16. What is the goal of the Business Portfolio Matrix Approach?

To own a mix of businesses that maximize opportunites

18. What business strategy is used for a cash cow? Star? Dog? New Venture?

Cut costs, growth, retrench or cut loose, market share

16. What levels of strategy does the Business Portfolio Matrix Approach deal with?

...

16. How are SBUs classified in the Business Portfolio Matrix Approach?

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16. What is the basic idea behind Generic Strategies?

They all kick ass

16. What are the three Generic Strategies identified by Porter? Be able to identify.

Differentiation- unique

Overall cost- good quality low price

Focus- specific location or customer group

16. What is the basic idea behind the Adaptation model of strategy?

Adapt strategy to environment to make sure its effective

16. What is a defender? Prospector? Analyzer? Reactor? When is a defender strategy the best? Prospector? Analyzer? Reactor?

Defender- demand isn't growing, cut costs to seal off market share, many lame rules and regulations

Prospector- demand is growing, find and exploit new markets, new products and services. Loose organizational design, make money to spend money

Analyzer- combonation of defender and prospector

- Keeps defender and prospecting businesses separate, similar to if I owned walmart and apple and did not merge them

Value Innovation- what the customer wants\

Most reactors are dogs

17. How does each strategy type in the Adaptation Model answer the entrepreneurial, engineering, and administrative questions?

cut costs to seal off market share

find and exploit new markets

Tax incremental Financing is a

SUBSIDY!!!! TIF, bass pro shop gonzales

1. What's a multi-national corporation?

any type of company that maintains operations in multiple countries, and they initiated the rapid growth in trade

2. What's a multi-domestic corporation? (p

Decentralizes management and other decisions to the local country where it is doing business

3. What's a global corporation? transnational or borderless organization

Centralizes management and other decisions in the home country, focus on the need for global efficiency

4. How organizations go global? (p. 34

They begin by global sourcing, buying cheapest materials from all over the world; the next step is to export a company's product to other countries/ company may also import products made elsewhere and sell them domestically

5. What's the difference between franchising and licensing

Licensing benefits manufacturing company's and franchising is for service company's

6. What's a global strategic alliance? joint venture? (

A global strategic alliance is with a foreign company in which knowledge and resources are shared in developing new products or building production facilities

A joint venture is a specific type of strategic alliance in which the partners agree to form a separate, independent organization for some business purpose

7. What's a foreign subsidiary

A direct investment in a foreign country that involves setting up a separate and independent facility or office

8. What's the downside of a foreign subsidiary?

It poses the greatest amount of risk, and also requires the most resources

9. What does the Japanese term, kaizen, mean? (p.

It refers to an organizations commitment to continuous improvement

10. What is horizontal integration? (p. 90

A company grows by combining with competitiors

11. What's unrelated diversification? Related diversification

Unrelated diversification is when a firm combines with firms in different and Related diversification firm combines with different and related industriesunrelated industries

12. What does the article, "When competitive advantage is neither," say about competitive benchmarking as a strategy

Competitive benchmarking should be stopped because it puts the focus on the competitor and not the buyer, when focus is on the buyer it really pushes managers to consider doing totally new ways of doing things

13. What does the article, "Avoid pricing yourself short", say about competing on price as a strategy for attracting customers?

if you cut prices to get business you don't just give up money you give up respect as well. After all you just proved that your regular price was kind of a lie

A. What did Emergence's second annual slogan study reveal?

A. fewer than half of the slogans were known by more than 5 percent of the repondants and 1/5 of the slogans were recognized by less than 1%