MGMT 363 Exam 2 Welch

Dr.Lane

Understanding culture

Iceberg Analogy

10% above the surface 90% under the surface

Objective elements in culture

above the surface elements (see, hear, touch, taste, feel)

Subjective Elements in culture

below the surface elements ( values, behaviors, and perceptions)

Hofstede's Cultural Dimensions

1. power distance

2. uncertainty avoidance

3. individualism vs. collectivism

4. motivation toward achievement and success

5. long term vs short term time orientation

6. indulgence vs. restraint

Power Distance

how people relate to authority and hierarchy

Low Power Distance

informal communication, employees challenge managers, authority must be justified

High Power Distance

formal titles, hierarchy accepted, employees defer to managers

Examples of each power distance

Low- Israel 13// Medium-US 40// High- Malaysia 100

Individual vs. Collectivism

whether people prioritize personal independence or group identity

Individualism

"I", independence, individual achievement

Collectivism

"we", loyalty, group harmony, shared responsibility

Examples of Individual vs. Collectivism

Panama- 11 (more collectivism) /// US-60/// Netherlands- 100(individualism)

Motivation towards achievement and success

what motivates people, wanting to be the best or liking what you do

Being the best

live to work, competition, performance, long hours

liking what you do

work to live, resolve conflicts through compromise, flexible work, parental leave, consensus and cooperation are valued

Examples of Motivation towards achievement and success

Sweden- 5 (liking what you do)/// US-62/// Japan-92 (being the best)

Gain a global perpective

studying abroad builds cultural awareness, openness, adaptability, foreign-language skills, and comfort

Which company was featured on Shark Tank?

Dig World

Dig World

Jacob's businesses where kids get to use real construction equipment (amusement park)

Main Idea of Dig World

dare to dream, operate out of your imagination not memory, and walk with elephants (surround yourself with people who help you dream bigger).

How many rejections of dig world

248

Inspiration for dig world

Pierce, Jacob's son sick with bacterial meningitis

What change did Jacob Robinson make to Texas A&M?

Switch Coke to Pepsi

HEB Day Speaker

Blake Willenburg

HEB's 5 cultural values

Service, heart, drive, innovation, commitment

Heb most important quote

"We are in the people business. We just happen to sell groceries"

Business Formats

H-E-B, H-E-B Plus, Joe V's Smart Shop, Mi Tienda, Central Market.

Competition with HEB

Value (Aldi), core (Walmart, Target, Kroger), upscale (Whole Foods, Sprouts, Trader Joe's).

HEB Community Involvement

disaster relief, hunger relief, education, giving back, Quest for the best(supports local creators)

HEB Sustainability Priorities

Diversion, Product, Energy, Community

VREEL

Value, rareness, eroding factors, enabling factors, longevity

Value

does it create value?

Rareness

how many competitors does it have?

Eroding Factors

What could destroy the advantage?

Enabling Factors

Can the firm use the resource effectively

Longevity

how long will it last?

Strategic management

ongoing processes of formulating and implementing strategies

Formulation

creating the plan

Implementation

enforcing the plan

Distinctive Competence

strength few competitors possess

Scope

markets in which a firm competes

Resource Deployment

where resources are allocated

Functional Strategies

strategies for HR, marketing, finance, operations, etc.

Levels of strategy

business levels or corporate levels

Business Level Strategy

How to compete in one industry

Corporate level strategy

Which industries and markets to operate in

Deliberate Strategy

planned

Emergent strategy

develops over time

SWOT

Strengths, Weaknesses, Opportunities, Threats. Limitation: Complex business issues do not always fit neatly into four categories.

Which factors of SWOT are internal?

Strength, Weakness

Which factors of SWOT are external?

Opportunity, Threat

Competitive Disadvantage

a situation in which an organization is not implementing valuable strategies that are being implemented by competing organizations

Competitive Party

creating the same amount of value in the market place as your competitor- no one is out performing the other- majority of businesses are a competitive party

Competitive Advantage

an organization is winning in comparison to the competition

Marketing and Sales Differentiation Strategy

must emphasize the high quality, high value image of the organization's products or services

Accounting and Finance Differentiation Strategy

control the flow of funds without discouraging the creativity needed to constantly develop new products and services to meet customers needs

Manufacturing Differentiation Strategy

emphasize quality and meeting specific customer needs, rather than simply reducing costs

Culture Differentiation Strategy

emphasize creativity, innovation, and response to customer needs

Marketing in Overall Cost Leadership Strategy

focus on simple product attributes and how they meet customer needs in a cost effective way

Accounting and Finance Overall Cost Leadership Strategy

success depends on having costs lower than competitors, management should reduce costs wherever possible

Manufacturing Overall Cost leadership strategy

emphasizes increased volume of production to reduce the per unit costs of manufacturing

Culture in Overall Cost Leadership Strategy

focuses on improving the efficiency of manufacturing, sales, and other business functions

Diversification

the number of different businesses that an organization is engaged in and the extent to which these businesses are related to one another

Single Product Strategy

one product, one market

Related Diversification

operation work in multiple linked businesses

Unrelated diversification

operations work in multiple businesses that are not associated with each other

Merger

the purchase of one firm by another firm of approximately the same size

Acquisition

the purchase of a firm by a firm that is larger

Home Replication International Strategy

Use home-country strengths , abroad

Multi domestic International Strategy

Adapt independently to each country

Global International Strategy

Standardized products worldwide

Transnational International Strategy

Global efficiency plus local adaptation

Conscious Capitalism

Purpose, Stakeholders, Leadership, Culture.

Jeff Shefelbein

Aggie Carpool

Founder of Heb

Florence butt

Chairman heb

Charles butt

Culture of HEb

Like aggie proverb, outside looking in you cant understand it, inside looking out you can't explain it

Decision Making

the act of choosing one alternative from a set of alternatives

Criticism of Analytical

Dogmatic

Over Controlling

Impersonal

Too careful, abstract or mathematical

Too Slow

Criticism of Conceptual

Dilettantish

Too Idealistic, slow indecisive

Difficult to Control

Criticism of Behavioral

Too concerned about others

Wishy-washy

Can't make hard decisions

Can't say no

Criticism of Directive

Rigid

Impersonal

Simplistic

Autocratic

Challenger Explosion: what decision styles were used?

Nasa Directive

Mother was behavioral

Father was Directive

What are the 4 decision making styles?

directive, analytical, conceptual, behavioral

Who founded Saferway/Whole Foods?

John Mackey

What company, known as whole foods today, founded as a health foods store

Saferway

Wholefoods was sold to what company for 13.7 Billion?

Amazon

What did Jeff Scheifelbein do in new york?

Disco Fairy

What Companies did Jeff Schiefelbein manage?

Howdy Ice Cream, Energy By 5, Undivided Life, Carpool

Was Howdy Ice cream founded by a TAMU student?

No, it was UT Student