C483 Principles of Management

Planning

Conscious, systematic process of making decisions about goals and activities that an individual, group, work unit, or organizatiion will pursue in the future

Planning Process

Situational Analysis; Alternative Goals and Plans; Goal and Plan Evaluation; Goal and Plan Selection; Implementation; Monitor and Control

Strategic Planning

Making decisions about the organization's long-term goals and strategies.

Strategic Goals

Major targets or results that relate to the long-term survival, value, and growth of the organization.

Strategy

A pattern of actions and resource allocations designed to achieve the goals of the orgnization

Tactical Planning

Translates broad strategic goals and plans into specific goals and plans that are relevant to a definite portion of the organization.

Operational Planning

Identifies the specific procedures and processes required at lower levels of the organization.

Strategic Management Process

Establishment of mission, vision, and goals; Analysis of external opportunities and threats; Analysis of internal strengths and weaknesses; SWOT analysis and strategy formulation; Strategy implementation; Strategic control

Core Capability (Competency)

Something a company does especially well relative to its competitors

Benchmarking

Process of assessing how well one company's basic functions and skills compare with those of another company or set of companies.

Corporate Strategy

Identifies the set of businesses, markets, or industries in which the organization competes and the distribution of resources among those businesses.

Concentration Strategy

Focuses on a single business competing in a single industry.

Vertical Integration Strategy

Involves expanding the domain of the organization into supply channels or to distributors.

Concentric Diversification

Involves moving into new businesses that are related to the company's original core business.

Conglomerate Diversification

A Corporate Strategy that involves expansion into unrelated businesses.

Stars, Question Marks, Cash Cows, Dogs

Categories on a BCG (Boston Consulting Group) matrix.

Business Strategy

Defines the major actions by which an organization builds and strengthens its competitive position in the marketplace.

Low-Cost Strategies

Attempt to be efficient and offer a standard, no-frills product.

Differentiation Strategy

A company attempts to be unique in its industry or market segment along some dimensions that customers value.

Functional Strategies

Implemented by each functional area of the organization to support the business strategy.

Strategy Implementaton

Define strategic tasks; Assess organization capabilities; Develop an implementation agenda; Create an implementation plan.

Strategic Control System

Designed to support managers in evaluating the organization's progress with its strategy and, when discrepancies exist, take corrective action.

Organic Structure

An organizational form that emphasizes flexibility.

Mechanistic Organization

A form of organization that seeks to maximize internal efficiency.

Strategic Alliance

A formal relationship created with the purpose of joint pursuit of mutual goals.

Learning Organization

An organization skilled at creating, acquiring, and transferring knowledge and at modifying its behavior to reflect new knowledge and insights.

High-Involvement Organization

Top management ensures there is a consensus about the direction in which the business is heading in this type of organization.

Scale Economies

Lower costs per unit of production.

Economies of Scope

Materials and processes employed in one product can be used to make related products.

Downsizing

The planned elimination of positions or jobs.

Rightsizing

Arrival at the size at which the company performs most effectively.

Survivor's Syndrome

Struggling with heavier workloads, workers wonder who will be next to go, try to figure out how to survive, lose commitment to the company and faith in their bosses, and become narrow-minded, self-absorbed, and risk averse.

Strategic Triangle

The company itself, the competition, and the customer.

Customer Relationship Management (CRM)

A mutlifaceted process typically mediated by a set of information technologies, that focuses on creating two-way exchanges with customers so firms have an intimate knowledge of their needs, wants, and buying patterns.

Kaizen

The concept of continuous improvement.

Value Chain

The sequence of actvities that flow from raw materials to the delivery of a good or service, with additional value created at each step.

Total Quality Management (TQM)

A way of managing in which everyone is committed to continuous improvement of his or her part of the operation

Six Sigma Quality

Statistical tools used to analyze the causes of product defects.

Technology

The methods, processes, systems, and skills used to transform resources (inputs) into products (outputs).

Job Shop

A company where goods or services are provided in verly low volume or small batches.

Small Batch

Technologies that produce goods and services in low volume.

Large Batch

Technologies that produce goods and services in high volume.

Continuous Process

A process that is highly automated and has a continuous production flow.

Mass Customization

The production of varied, individually customized products at the low cost of standardized, mass-produced products.

Computer-Integrated Manufacturing (CIM)

The use of computer-aided design and computer-aided manufacturing to sequence and optimize a number of production processes.

Flexible Factories

Manufacturing plants that have short product runs, are organized around products, and use decentralized scheduling.

Lean Manufacturing

An operation that strives to achieve the highest possible productivity and total quality, cost-effectively, by elminating unnecessary steps in the production process and continualy striving for improvement.

Time-Based Competition (TBC)

Strategies aimed at reducing the total time needed to deliver a good or service.

Logistics

The movement of the right goods in the right amount to the right place at the right time.

Just-In-Time (JIT)

A system that calls for subassemblies and components to be manufactured in very small lots and delivered to the next stage of the production process just as they are needed.

Concurrent (simultaneous) Engineering

A design approach in which all relevant functions cooperate jointly and continually in a maximum effort aimed at producing high-quality products that meet customers needs.

Barriers to Entry

Conditions that prevent new companies from entering an industry.

Switching Costs

Fixed costs buyers face when they change suppliers.

Supply Chain Management

The managing of the network of facilities and people that obtain materials from outside the organization, transform them into products, and distribute them to customers.

Final Consumer

A customer who purchases products in their finished form.

Intermediate Consumer

A customer who purchases raw materials or wholesale products before selling them to final customers.

Franchising

An entrepreneurial alliance between a franchisor (an innovator who has created at least one successful store and wants to grow) and a franchisee (a partner who manages a new store of the same type in a new location).

Transaction Fee Model

Charging fees for goods and services.

Advertising Support Model

Chargng fees to advertise on a site.

Intermediary Model

Charging fees to bring buyers and sellers together.

Affiliate Model

Charging fees to direct site visitors to other companies' sites.

Subscription Model

Charging fees for site visits.

Social Entrepreneurship

Leveraging resources to address social problems.

Social Enterprises

Organization that applies business models and leverages resources in ways that address social problems.

Entrepreneurial Personality

Commitment and determination; Leadership; Opportunity obsession; Tolerance of risk, ambiguity, and uncertainty; Creativity, self-reliance, and abiltity to adapt; Motivation to excel.

Business Incubators

Protected environments for new, small businesses.

Business Accelerators

Organization that provides support and advice to help young businesses grow.

Initial Public Stock Offerings (IPO)

Sale to the public, for the first time, of federally registered and underwritten shares of stock in the company.

Opportunity Analysis

A description of the good or service, an assessment of the opportunity, an assessment of the entrepreneur, specification of activities and resources needed to translate your idea into a viable business, and your source(s) of capital.

Business Plan

A formal planning step that focuses on the entire venture and describes all the elements involved in starting it.

Five Key Factors of a Business Plan

People; Opportunity; Competition; Context; Risk/Reward

Legitimacy

People's judgement of a company's acceptance, appropriateness, and desirability, generally stemming from company goals and methods that are consistent with societal values.

Social Capital

Goodwill stemming from your social relationships; a competitive advantage in the form of relationships with other people and the image other people have of you.

Skunkworks

A project team designed to produce a new, innovative product.

Bootlegging

Informal work on projects, other than those officially assigned, of employees own choosing and initiative.

Entrepreneurial Orientation

The tendency of an organization to identify and capitalize successfully on opportunities to launch new ventures by entering new or established markets with new or existing goods or services.

Entrepreneurial Orientation Tendencies

Allow independent action; Innovate; Take risks; Be proactive; and Competitively aggressive.

Entrepreneurial Venture

A new business having growth and high profitability as primary objects.

Intrapreneur

New venture creators working inside big companies.

Small Business

A business having fewer than 100 employees, independently owned and operated, not dominant in its field, and not characterized by many innovative practices.

Boundry-Spanning

Interacting with people in other groups, thus creating linkages between groups.

Gatekeeper

A team member who keeps abreast of current developments and provides the team with relevant information.

Informing

A team strategy that entails making decisions with the team and then informing outsiders of its intentions.

Parading

A team strategy that entails simultaneously emphasizing internal team building and achieving external visibility.

Probing

A team strategy that requires team members to interact frequently with outsiders, diagnose their needs, and experiment with solutions.

Avoidance

A reaction to conflict that involves ignoring the problem by doing nothing at all or de-emphasizing the disagreement.

Accommodation

A style of dealing with conflict involving cooperation on behalf of the other part but not being assertive about one's own interests.

Compromise

A style of dealing with conflict involving moderate attention to both parties concerns.

Competing

A style of dealing with conflict involving strong focus on one's own goals and little or no concern for the other persons goals.

Collaboration

A style of dealing with conflict emphasizing both cooperation and assertiveness to maximize both parties satisfaction.

Superordinate Goals

Higher-level goals taking priority over specific individual or group goals.

Mediator

A third party who intervenes to help others manage their conflict.

Autonomous Work Groups

Groups that control decisions about and execution of a complete range of tasks.

Cohesiveness

The degree to which a group is attractive to its members, members are motivated to remain in the group, and members influence one another.

Management Teams

Teams that coordinate and provide direction to the subunits under their jurisdiction and integrate work among subunits.

Norms

Shared beliefs about how people should think and behave.

Parallel Teams

Teams that operate separately from the regular work structure and exist temporarily.

Project and Development Teams

Teams that work on long-term projects but disband once the work is completed.

Roles

Different sets of expectations for how different individuals should behave.

Self-Designing Teams

Teams with the responsibilities of autonomous work groups, plus control over hiring, firing, and deciding what tasks members perform.