MANAGEMENT AND ORGANIZATION Leadership Styles Autocratic dictator Participative opposite of dictator Free rein employee freedom Controlling side of management Establish clear standards Monitor Performance Evaluate Results Communicate Results Corrective Action Staff Feedback Area that gets the least attention is standards setting Businesses measure their performance on customer satisfaction internal and external Personnel Levels Top senior executives ex chief operating officer Middle Mid level managers ex regional manager First line Supervisory managers ex store manager Staff Non exempt employees ex hourly worker non exempt employees covered by Fair Labor Standard Act s min wage and overtime Exempt executives administrators and professionals Etc Org chart displays relationships defines hierarchy chain of command etc Centralized vs Decentralized authority focused either top levels or to lower staff Span of control higher levels of organization control smaller groups Tall vs Flat Flat has few layers Tall has a pyramid shape Departmentalization functions separated into different units can offer productivity gains but cause internal issues Line organization direct two way top to bottom lines of responsibility no specialized support staff that is a line and staff organization Matrix organization establishes connections between divisions and creates synergies Self directed work groups staff from different departments very effective Re structuring basic periodic redesign of organizational model Re engineering a complete radical redesign Organizational culture shared values positive ones can have a big impact Transparency info systems linked to each other and share data SUPPLY CHAIN MANAGEMENT Supply chain management managing every business activity across all business disciplines from supplier to customer Logistics flow of goods or materials from point of origin to point of consumption promotes economic development and specialization 7 R s of Logistics Right Product Place Cost Customer Condition Time Quantity Inbound logistics materials management Materials management objectives Low costs low level of tied up capital quality assurance high level of service support of other enterprise functions Materials make up over 50 of total costs Procurement acquisition of materials including purchasing quality management vendor relationships and coordination with other departments Receiving the physical receipt of the purchased materials when they show up JIT founded by Deming and Ohno 1 materials are used until a pre arranged order point kanban 2 requirement is communicated back to procurement which places a short lead time order andon frequent small shipments arrive just in time to fill depleted materials 3 benefits productivity improvements decreased inventories reduced manufacturing cycle times and lower costs to reduce risk businesses implement Materials Requirements Planning MRP considers production scheduling inventory control and tracking demand analysis and forecasting financial risks general ledger reporting and work in progress tracking Outbound logistics customer service and marketing 4 key dimensions of customer service time dependability communications and convenience End customer success can create large payoffs but is expensive and long term concession Channels of distribution Wholesaler selling and storing goods Distributor markets or sells merchandise to retailers Retailers purchase products for the purpose of re selling them VICS voluntary inter industry communications standards committee created new methodologies like QR quick response partnerships between manufacturer supplier to meet specific performance criteria and retailer provides demand data and ECR Efficient Consumer Response demand data consumer driven from point of sale Distribution Requirements Planning DRP determines product demand is the outbound version of MRP Inventory is as much as 50 of total assets Warehousing function of holding and handling inventory in a warehouse Roles of Warehousing Consolidation and or Breakbulk Product mixing customer service support contingency protection and smoothing and manufacturing support Five forms of transportation truck rail air ship and pipeline railroads are good for bulk shipments air is fastest ship is the cheapest two major pipelines trans alaska and colonial takes 18 to 20 days to travel Packaging markets product carries identifications provides info displays warnings protects from damage and improves handling manageable size MARKETING Marketing is the process of planning and executing the conception pricing promotion and distribution of ideas goods and services to satisfy customer s goals Marketing Eras Production era early 1900s producing as quickly as possible Selling era 1920s through WW2 selling and advertising Marketing Concept Era After WW2 marketing Customer Relationship Era customers and their needs CRM customer relationship management Market segmentation Geographic psychographic demographic benefit volume usage 5 step consumer decision process 1 problem recognition 2 Information search 3 Alternative evaluation 4 Purchase decision 5 Post purchase evaluation cognitive dissonance 4 Ps Product Price Place and Promotion Over 80 fail their first year 6 basic steps in new product development idea generation development production screening testing product analysis and commercialization total product offering value package service delivery brand past experience product lines groups of individual products that are closely related product mix combination of product lines product differentiation attempts to make close substitutes appear different branding identifies products name symbol design brand name part that can be spoken Product Life Cycle Introduction Growth Maturity Decline Objectives of Pricing Return on investment building traffic image support increased market share social impact Pricing strategies Cost based pricing demand based pricing competition based pricing IMC integrated marketing communication creation of positive product image and the meeting of goals PR Public Relations relationship between a company and its customers and prospects
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