Business Management Midterm (FALL2025)

Manager

a person who has the upper hand; a person who is in charge of someone or something

Why are manager's important?

1. Organizations need their managerial skills and abilities more than ever in these uncertain, complex, and chaotic times.

2. Managerial skills and abilities are critical in getting things done.

3. The quality of the employee/supervisor relationship is the most important variable in productivity and loyalty.

What do managers do?

Set objectives, organize, motivate and communicate, measure, develop people

Types of skills managers have

human, technical, and conceptual skills

Management

the process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other organizational resources

Steps in the decision making process

1. State the situation

2. List the options

3. Weigh the possible outcomes

4. Consider values

5. Make a decision and act on it

6. Evaluate the decision

Organizational Culture

the set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization

Managerial Planning

the process of assessing an organization's goals and creating a realistic, detailed plan of action for meeting those goals.

SMART goals

Specific

Measurable

Attainable

Relevant

Time-bound

Why do managers plan?

1. Provides direction

2. Reduces uncertainty

3. Minimizes waste and redundancy

4. Establishes the goals and standards for controlling

Types of plans

- Strategic plans: plans that apply to the entire organization and establish the organization's overall goals

- Operational plans: plans that encompass a particular operational area of the organization

Business Models

a plan that details how a company creates, delivers, and generates revenues

Strategic Management

- Strategic management: what managers do to develop the organization's strategies

- Strategies: the plans for how the organization will do what it's in business to do, how it will compete successfully, and how it will attract and satisfy its customers in order to achieve its goals

Corporate strategy

an organizational strategy that determines what businesses a company is in or wants to be in, and what it wants to do with those businesses

Growth strategy

used when an organization wants to expand the number of markets served or products offered, either through its current business(es) or through new business(es)

Types of Growth Strategies

- Concentration: focus on primary line of business

- Vertical integration: managing forward or backward parts of their processes

- Backward: becoming their own supplier

- Forward: managing their own distribution

- Horizontal integration: combines with competitors

- Diversification: growth through new/different companies/industries

BCG matrix

a strategy tool that guides resource allocation decisions on the basis of market share and growth rate of SBUs

Strategic Business Unit (SBU)

- A sub group within a larger organization/either a single business or related businesses that have a clear mission and target market

- Control over its own resources

- Its own competitors

Porter's Five Forces Model

- definiton: a model for assessing how managers can create sustainable competitive advantage through conducting an industry analysis and assessing these FIVE FORCES

- Threat of new entrants

- Threat of substitutes

- Bargaining power of buyers

- Bargaining power of suppliers

- Current rivalry

SWOT analysis

Strengths, Weaknesses, Opportunities, Threats

- Strengths: explore the company's website, annual reports, or customer reviews to find areas they excel in, such as high-quality organic products, strong brand reputation, or unique store experience

- Weaknesses: internal factors that place Whole Foods at a disadvantage compared to competitors

- Opportunities: external factors Whole Foods can capitalize on for growth

- Threats: external factors that could negatively impact Whole Foods' success

Planning

- Management function that involves setting goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate work activities

- Formal planning

- Specific, time-oriented goals

- Goals written and shared

Entrepreneurship

the process of starting new businesses, generally in response to opportunities

Entrepreneurial Ventures

organizations that pursue opportunities, are characterized by innovative practices, and have growth and profitability as their main goals

What do entrepreneurs do?

- No two entrepreneurs are the same

- Create something new and different

- Search for, respond to, and exploit change

- Research feasibility

- Launch and manage new ventures

Entrepreneur personality

Proactive personality: a personality trait that describes individuals who are more prone to take actions to influence their environments

Strengths of entrepreneurs

- Risk: can manage high-risk situations; mitigating risk rather than seeking it

- Knowledge: strives to acquire in-depth information about the industry

- Independence: can manage every aspect of his/her organization

- Confidence: believes in oneself and his/her ability to succeed

- Delegation: unafraid to assign tasks to others

- Determination: strong work ethic; undeterred by failure

- Relationships: able to build mutually beneficial relationships

- Selling: speaks boldly on behalf of the organization; can influence others

- Profitability: sets clear goals; measures progress; good judge of opportunities

- Disruption: constantly has new ideas for products and services

Intrapreneurship

Employee empowerment: giving employees the power to make decisions and take actions on their own to solve problems

5 stages of entrepreneurship process

1. Explore the entrepreneurial context (assess economic, political/legal, social, and work environment)

2. Identify opportunities and possible competitive advantages

3. Start the venture

4. Manage the venture

good business opportunities

1. potential for growth

2. competitive advantage

3. financial rewards

4. personal satisfaction

Mission Statements

- Mission: the purpose of an organizationMay include information pertaining to...

- The company's purpose.

- Who they serve

- How they achieve their purpose

- Corporate values

BCG Matrix

a strategy tool that guides resource allocation decisions on the basis of market share and growth rate of SBUs

BCG Chart

Stars, Question Marks, Cash Cows, Dogs

BCG Matrix: Stars

high growth, high market share, cash neutral, hold

BCG Matrix: Cash Cows

low growth, high market share, cash generating, milk

BCG Matrix: Dogs

low growth, low market share, cash neutral, diversify

BCG Matrix: Question Marks

low market share, high growth, cash absorbing, build