MAN3025 Exam 2 Notes CHAPTER 5 1 Planning a Coping with uncertainty by formulating future courses of action to achieved specified results b Setting goals and deciding how to achieve them 2 Planning and Strategic Management 5 steps a Establish the organization s mission and vision b Formulate the grand strategy c Formulate the strategic plans then the tactical and operational plans d Implement the strategic plans e Control the strategy 3 4 Basic Strategy Types a Defenders experts at producing and selling narrowly defined products b Prospectors focus on developing new products and in seeking out new markets rather than waiting for things to happen c Analyzers let other organizations take the risks of product development and marketing and then imitate what seems to work best d Reactors make adjustments only when finally forced to by environmental pressures 4 3 Types of Planning a Strategic planning determine what the organization s long term goals should be for the next 1 5 years or beyond top management b Tactical planning determine what contributions their departments or similar work units can make during the next 6 24 months middle management c Operational planning determine how to accomplish specific tasks with available resources within the next 1 52 weeks first line management 5 SMART Goals a Strategic Tactical and Operational goals a Standing plans plans developed for activities that occur repeatedly over a period of time policies procedures and rules b Single use plans plans developed for activities that are not likely to be repeated b Specific c Measurable d Attainable e Results oriented f Target dates 6 Standing vs Single Use Plans in the future 7 MBO a Jointly set objectives b Develop action plan 8 Planning Control Cycle a Make the plan b Carry out the plan c Periodically review performance d Give performance appraisal and rewards if any c Control the direction by comparing results with the plan d Control the direction by taking corrective action in two ways i Correcting deviations ii Improving future plans CHAPTER 6 1 Sustainable Competitive Advantage a Occurs when an organization can stay ahead in one or more of four areas i Being responsive to customers ii Innovation iii Quality iv Effectiveness 2 Strategic Positioning a Attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company Performing different activities from rivals or performing similar activities in different ways 3 3 Common Grand Strategies a Growth strategy involves expansion as in sales revenues market share number of employees etc b Stability involves little or no significant change c Defensive involves reduction in the organization s efforts 4 SWOT Analysis a Strengths skills and capabilities that give the organization special competencies and advantages in executing strategies in pursuit of its mission b Weaknesses drawback that hinder an organization in executing strategies in c Opportunities environmental factors that the organization may exploit for d Threats environmental factors that hinder an organization from achieving a pursuit of its mission competitive advantage competitive advantage 5 Forecasting future conditions 6 Porter s 5 Competitive Forces a Trend analysis hypothetical extension of a past series of events into the future b Contingency planning creation of alternative hypothetical but equally likely a Threat of new entrants b Bargaining power of suppliers c Bargaining power of buyers d Threat of substitute products or services e Rivalry among competitors 7 Porter s 4 Competitive Strategies a Cost leadership strategy keep the costs of a product or service below those of competitors and to target a wide market b Differentiation strategy offer products that are of unique and superior value compared to those of competitors but to target a wide market c Cost focus strategy keep the costs of a product below those of competitors and to target a narrow market d Focused differentiation offer product that are of unique and superior value compared to those of competitors and to target a narrow market 8 Single Product vs Diversification a Single product strategy company makes and sells only one product within its market b Diversification operating several businesses under one ownership that are not related to one another 9 BCG Matrix a A means of evaluating strategic business units on the basis of their business growth rates and their share of the market 10 Execution consists of using questioning analysis and follow through in order to mesh strategy with reality align people with goals and achieve results promised 11 3 Core Processes of Business a People consider who will benefit you in the future b Strategy consider how success will be accomplished c Operations consider what path will be followed 12 Control Process a Engage people b Keep it simple c Stay focused d Keep moving Chapter 7 1 Organizational Culture a System of shared beliefs and values that develops within an organization and guides the behavior of its members 2 Four Types of Organizational Culture a Clan culture Employee focused values flexibility rather than stability and encourages collaboration among employees b Adhocracy culture attempts to create innovative products by being adaptable creative and quick to respond to changes in the marketplace c Market culture focused on the external environment and is driven by competition and a strong desire to deliver results d Hierarchy culture a formalized structured work environment aimed at achieving effectiveness through a variety of control mechanisms a Observable artifacts physical manifestations such as dress awards and 3 3 Levels of Organizational Culture stories about a company b Values i Espoused explicitly stated values and norms preferred by an ii Enacted represent the values and norms actually exhibited in the organization organization c Basic Assumptions represent the core values of the organization s culture 4 4 Functions of Organizational Culture 5 Common Elements of Organizations a Common purpose unifies employees or members and gives everyone an understanding of the organization s reason for being b Coordinated effort the coordination of individual effort into group wide effort c Division of labor arrangement of having discrete parts of a task done by different people d Hierarchy of authority control mechanism for making sure the right people do the right things at the right time unity of command e Span of control refers to the
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