MGMT 371 Test 2Chapter 8Data accumulation and data analytics Have to know what the customer wantsKnow the difference between the customer and the true customerCustomer- women buy 80% of all athletic apparel, not true customer because women buy for their kids, husband, and selves Strategic management- a specific type of planning Thinking StrategicallyThe long-term view of the organization and competitionImpacts performance and financial successStrategic Management- decisions and actions used to formulate and execute strategies that will provide competitively superior fit between the organization and its environment to achieve organizational goals 90% of all rivers in Africa don’t have clean drinking water30% of the entire GDP of Nigeria is transact-able Purpose of StrategyExplicit Strategy- the plan of action Competitive advantage- the organization’s distinctive edge for meeting customer needs Strategies should:- Exploit core competencies (something I do well in relationship to my competitors)- Build synergy- Deliver value 8.1 Levels of Strategy Corporate-Level Strategy- what business are we inBusiness-Level Strategy SWOT Strengths and weaknesses are internal to the organization (we can control them)Opportunities and threats are the external operating environment (have to react to them)SWOT are not based in measurable numbers The BCG Matrix (Get Chart)Stars- high market share high growthQuestion Marks- low markets share high business growth Cash Cows- low growth high market shareDogs- low market share low growthSometimes we keep dogs around because they have high brand association - use the dog as a bait and switch product.Rivalry among competitors means there are more consumers then producers. If you want to get a customer you have to take them from someone else.- Most important is rivalry amongst competitorsElectric utility there is a very low entry level for new industries to enter the market.On the other hand the barrier to entry on a food stand in five points is not very high. Easy to enter.Differentiation- you identify products, attributes or features that customers are willing to pay a higher price for.Cost leadership- you recognize that there is a significant portion of the customer base that does not see a difference in the product categories. Example, people out there that see no difference in brand of laundry detergent. Therefor they just buy thecheapest kind available.Focus- identify a specific need and you sell that product to that product category.Spend the least amount of advertisement dollars on cost.If I’m going to use cost based advertising I’m going to use point of purchase (POP)81% online bankingUkraine cannot provide itself with oil and natural gasReason why Ukraine is so important because Russian built its pipe lines through Ukraine Natural gas prices go up because Russia is the largest supplierChina could be potential biggest loserThis is a dramatic threat/ opportunity for a lot of countries Russian currency is going to decline Week of April 6-13 Management TestShow definitive information showing vaccines are safe. How ever the likelihood of parents getting their child vaccinated actually went down.- If I attack your beliefs your going to reject me. Unless you can validate the fact that they should be concerned..Know slide 20 on chapter 8 Global Corporate StrategiesHuge portions of chapter 19 that will not be on the test.. slide 10, 11, 12, 13, 14, 18Memorize the meaning of control.Know this slide “The Balanced Scorecard”Feedback control modelChapter 19Organizational Control- the systematic process through which managers regulate organizational activities to make them consistent with expectations established in plans targets and standards of performanceThe Balanced Scorecard- a way of evaluating the organization looking at the org as a whole 19.1 Slide - Typical example o Areas on a scorecard: Financials, internal business processes, learning and growth, how well we serve our customers Feed Forward control model- First thing is to reestablish strategic measures Steps of Feedback Control- know the steps in orderDelighter- a pie chain 9-14 wont be on the test 19.6 Important SlideOpen Book Management-Total Quality Management- - Relies upon teamwork, wants people to volunteer to be on teams - The ultimate goal is to have no faults, zero-defects 5 parts to TQM- Quality circles, teams of employees who volunteer to work together to solve ongoing problems, don’t solve specific problems- Benchmarking, compare themselves to someone who does it right, not against perfection, every company wishes to be the company that people benchmark against - Six Sigma- using it as an error rate (standard deviation) - Reduced Cycle Time- looking at the concept of how quickly I can get a project from an idea to the hands of a customer - Continuous Improvement- Always continue working Six Sigma set a high standard There are some problems (19.9) - Unrealistic expectations saying there wont be any problems - Union leaders are left out of quality control decisions - Managers wait for big dramatic innovations International Quality Standards- IOS 9000 standards- International organization for standardization (Org certification, 157 countries) - Organizations demonstrate a commitment to quality - Europe leads in certifications but the US has had large increases- Most bids say you have to have IOS 9000Chapter 10Organizing- the deployment of organizational resources to achieve strategic goalsWork Specialization- the degree to which organizational tasks are subdivided into individual jobs - If you are going to use work specialization you MUST use JOB ROTATION, greater understanding of the process and become more valuable Chain of Command- unbroken line of authority that links all individuals in the origination and specifies who reports to who Unity of Command- report to ONE supervisor- Matrix structure violates the Unity of command- exception to the rule Authority comes with the job, not with the personBusiness process engineering- the radical redesign of business processes to achieve dramatic improvements in cost, quality, service and speedTask force- a temporary team put together to solve a specific issue Cross-functional team- permanent teams that work on problems ongoing Project manager- person responsible for coordinating activities of several departments for the competition of a specific project NO CLASS April 7/9Chapters 8,10, 19 on test Authority comes with