Management Concepts Ch. 5

What does KPI stand for?

Key Performace Indicators

What does MBO stand for?

Management by Objectives

What does OKR stand for?

Objectives and Key Results

What does MBM stand for?

Management by Means

What does CMP stand for? 

Crisis Management Plan 

What does BCG stand for?

Boston Consulting Group(Business Growth Rate)

What does SBU stand for?

Stragetegic Business Unit

What is a goal?

a desired future circumstance or condition that the organization attempts to realize

Why are goals imporant? 

organizations exists for a purpose and goals define and state that purpose

What is a plan?

a blueprint for goal achievement and specifies the necessary resource allocations, schedules, tasks, and other actions.

What are the three levels of goals and plans?

strategic, tactical, and operational

What is the first step of the planning process?

creating a mission statement

What are strategic goals? 

sometimes called official goals, are broad statements describing where the organization wants to be in the future 

What are strategic plans?

define the action steps by which the company intends to attain the strategic goals

How many years a strategic plan/goal?

2-5 years

What are tactical goals?

are the results that major divisions and departments within the organization intend to achieve (middle management)

What are tactical plans? 

They are designed to help execute the major strategic  plans and to accomplish a specific part of the company’s strategy

How long are tactical goals/plans?

1-2 years

What are operational goals?

are specific, measurable results that are expected from departments, work groups, and individuals

What are operational plans?

Specify the action steps toward achieving operational goals and support tactical activities

How long are operational goals/plans?

less than a year

What is planning?

is the act of determining goals and defining the means of achieving them

What are the 5 parts of the organizationl planning process?

1. Develop the plan

2. Translate the Plan

3. Plan Operations

4. Performance Management

5. Monitor and Learn

What is develop a plan? 

define mission, vision, set goals, manage goal conflict

What is translate the plan?

define tactical plans and objectives, develop a strategy map, define contingency plans and scenarios

What is plan operations?

define operational goals and plans. select measures and targets, set stretch goals, crisis planning

What is performance management?

management by objectives, single use plans, stnading plans

What is monitor and learn?

hold planning reviews, hold operational reviews

What is a mission statement?

is a broadly stated definition of purpose that distinguishes the organzation from others of a similar type

What are ways to resolve goal conflict?

1. Build a coalition

2. Modify goals by time and location

3. Address conflicts with debate and dialogue

4. Break down barriers and promote cross silo cooperation

5. Manager departures

What is build a coalition?

incolves building an allinace of people who support a managers goals and influencing other people to accpet and work toward those goals

How are goals constructed? 

socially 

Why do goals and plans need to be in alignment?

so that they are consistent and mutually supportive

What are the characteristics of effective goals?

1. Specific and measurable

2. Have a defined time period

3. Cover key result areas

4. Are challenging but realistic

5. Are linked to rewards

What two things do goals need to be? 

specfic and measurable

What does GEM stand for?

Guest Experience Measurement

What is a Key Performance Indicator?

are measures that reflect how well lower-level goals are helping the organization progress toward attaining its stragtic goal

What does Management by Objectives mean?

is a system whereby managers and employees define goals for every department, project, and person and use them to monitor subsequent performance

Why was MBM created?

that focuses people on the methods and processes used to attain results, rather than on the results themselves

How do managers formulate goals?

that are specific and measurable, cover key result areas, are challening, but realistic, have a defined time period and are linked to rewards

What are different performance management systems?

managemtn by objectives, single use plans, and standing plans

What are the three approaches to help brace the organization for unexpected?

contingency planning, scenario building, and crisis planning

What is contingency planning? 

indentifies importn factor in the environment and defines a range of alternative 

What is scenario building?

managers looks at trends and discontinuities and imagines possible alternatives futures to build a framwork withing which unexpected futrue events can be managed

What is crisis planning? 

to prepare the organization, its managers, and its employees to cope with sudden catastrophic events that could destroy the firm if a crisis response plan were not place 

What could be included in a contingency plan?

economic downturns, declining markets, increases in cost of supplies, safety concerns, new technoolgical devolpments

What are stretch goals?

are reasonable yet highly ambitious goals that are so clear, compelling, and imaginative that they fire up employees and engender excellence 

What is part of crisis prevention?

build relationships, detect signals from the enivorment

What is part of crisis preparation?

designate a crisis management team and spokesperson, create a detailed crisis management plan, set up an effective communcations system

What are the two main parts in crisis planning?

preparation and prevention 

What is one way to describe scenarios?

alternative vivid pictures of what the future might be like

What does strategic thinking mean?

means taking the long-term view and seeing the big picture

What is strategic management?

refers to the set of decisions and actions used to formulate and implement strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals

What is strategy? 

The plan of action that describes resource allocation and activities for dealing with the environment, achieving a competitive advantage and attaining goals

What is competivie advantage?

refers to what sets the organization apart from others and provides it with a distinctive edge in the marketplace 

What are the four elements of competitive advantage?

target customers, explot core competencies, achieve syngery, and create value

What is a core competence?

is something that the organization does particulary well in comparison to others

What is syngery?

exists when the organization parts interact to produce a joint effect that is greater that the sum of the parts acting alone

What is the first step in stragetic managment? 

strategy 

What is a core competence? 

is something that the organization does especially will in comparison to its competitors 

How to create synergy?

when organizaitonl parts interact to produce a joint affect that is greater than the sum of the parts acting alone

How is value defined?

as the combination benefits received and costs paid

What are the three approaches to understanding corporate-level strategy?

portfilo strategy, Boston Consulting Group matrix, and diversification

What is a portfolio strategy? 

pertains to the mix of business units and product lines that fit together in a logical way to provide synegy and competitive advantage for the cooperation

What are the two dimensions that organize the BCG matrix?

Business Growth and Market Share

What does Business Growth mean?

pertains to how rapidly the entire industry is increasing

What does Market Share mean?

defines whether a business unit has a larger or smaller share than its competitors

What does the star mean in the BCG matrix? 

rapid growth and expanison

What does the cash cow mean in the BCG matrix?

exists in a mature, slow-growth industry but is a dminatn business in the industry with a large maket share

What does the bright prospects mean in the BCG matrix?

exists in a new, rapidly growing industry, but has only a small market share

What is the dog in the BCG matrix?

It is a poor performer; it only has a small share of a slow-growth market. provides little profit to the cooperation

What is diversifaction? 

the strategy of moving into new lines of business

What are two primary ways companies can diversify?

mergers and joint ventures

What is a merger?

occurs when two or more organizations combine to become one

What is a joint venture?

involves a strategic alliance or program by two or more organzations

What is related diversification? 

means moving into a new business that is related to the corporation's existing business activites 

Who created the Competitive strategies and forces?

Micheal E. Porter

What are the five Porter forces?

bargaining power of buyers

potential new entrants

bargaining power of suppliers

threat of subsite products

rivarly among competitors

What are the three competitive strategies? 

differentation, cost leadership, focus

What does differentiation strategy mean?

involves an attempt to distinguish the firms products or services from others in the industry

What does cost leadership strategy mean?

The organization agressivley seeks efficent facilites, purses cost reductions, and uses tight cost controls to produce products more efficiently than its competitors

What does focus strategy mean?

the organization concentrates on a specific regional market or buyer group

What products have benefited from a differentiation strategy? 

Apple smartphones and tablets, Tesla automobiles, Gore-Tex Fabrics