Studied by 1 person
4 functions of management
planning, organizing, leading, controlling
Planning
the process of determining the organization's objectives and developing a strategy for achieving these goals
leading
interactions between managers and subordinates to meet firms objectives
Organizing
mobilizing the resources required to complete a task
Controlling
monitoring performance to make sure the firm reaches its goals
Efficiency
achieving the greatest level of output with a given level of input
Effectiveness
achieving goals that have been set
Top Managers
maintain overall performance and effectiveness of the firm
Middle Managers
implement the policies and plans of the top managers
first-line managers
supervises employees and ensures they are well-trained
technical skills
helps managers perform specialized tasks
human relations skills
skills that involve communication and motivation; they enable managers to work through and with people
conceptual skills
the ability to analyze and diagnose a situation and see beyond the present situation
time management skills
productive usage of a manager's time
decision-making skills
helps managers define problems or opportunities and select the best course of action
problem decision
specific problems must be resolved
opportunity decision
no problem but there is an opportunity present
Certainty risk condition
manager knows the alternatives available and the conditions that come with each alternative
Risk (risk condition)
alternatives may be known but the costs are probabilities rather than certainties
Uncertainty risk condition
managers don't know the possible alternatives or the outcomes of the alternatives
steps of decision making
recognize and define the decision situation
identify alternatives
evaluate alternatives
select the best alternative
implement the chosen alternative
evaluate the results
organizational politics
the actions that people take as they try to get what they want
intuition
based on years of experience and making decisions in similar situations
escalation of commitment
an increased commitment to a previous decision in spite of negative information
risk propensity
how much a manager is willing to gamble when making decisions
Strategic Management
process of effectively aligning an organization with its external environment
strategy
broad set of organizational plans for implementing the decisions made for achieving organizational goals
vision
statement indicating why an organization exists and the type of organization it should be
Mission Statement
a statement of the organization's purpose and how it will achieve that in its business environment
SWOT analysis
strengths, weaknesses, opportunities, threats
strategic plans
decisions about resource allocations, company priorities and the steps needed to meet strategic goals are set by top management
tactical plans
concerned with implement specific aspects of the company's strategic pla
operation plans
setting short-term targets for performance
corporate level strategy
identifies the various businesses that a company will be in, and how these businesses will relate to each other
Concentration Strategy
focusing the company on one product or product line that it knows well
market penetration
more aggressive selling in the firm's current markets to boost sales
Geographic Expansion
expanding operations in new geographic areas or countries
product development
developing improved products for current markets
Horizontal Integration
gaining control of competitors in similar markets with similar products
vertical integration
Practice where a single entity controls the entire process of a product, from the raw materials to distribution
Diversification
spreading the risk among several products or markets
related diversification
adding new but related products or services
conglomerate diversification
Diversifying into products or markets not related to the firm's current businesses
Investment Reduction
reducing the company's investment in one or more of its lines of business
retrenchment
reduction of activity or operations
Divestment
selling one or more of a firm's business units
business level strategy
identifies the ways a business will compete in its chose line of products or services
Competitive Strategy
a plan to establish a profitable and sustainable competitive position
Cost Leadership
become the low cost leader in the industry
differentiation strategy
be unique in the industry with a dimension that is valued by buyers
focus strategy
selecting a market segment and serving the customers in that market niche better than competitors
functional strategies
the basic courses of action that each of the business's departments pursues to help the business attain its competitive goals
contingency planning
Planning for unexpected events and developing a plan to handle those changes
crisis management
dealing with an emergency that demands an immediate response
corporate culture
the shared experiences, stories, beliefs, and norms that characterize an organization
strong corporate culture
guides people to work toward the same goals and helps newcomers learn accepted behaviour
Note
Flashcard