mgmt exam 2
Terms
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- components of the macroenvironment
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social values, law and politics, demographics, technology, economy
DELTS - components of the competitive environment
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substitutes, rivals, suppliers, buyers, new entrants
SBRNS - stakeholders
- groups and individuals who affect and are affected by the organization and its output
- strategies for influencing the environment
- cooperative action, independent action, moving to a different environment
- cooperative action strategy
- cooptation, contracting, coalition
- contracting
- negotiating agreement between parties
- cooptation
- absorbing a new element
- coalition
- two or more organizations acting together to achieve common goal
- independent action strategy
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competitive aggression, competitive pacification, public relations, voluntary action, legal action, political action
PPPLAV - competitive aggression
- exploiting a distinctive competence (advertising)
- competitive pacification
- independent act to improve relations with competitors
- public relations
- establishing and maintaining a favorable public image
- voluntary action
- good PR, THON, Ron McDon House
- legal action
- controlling your rights
- political action
- campaigns, lobbying, endorsing
- moving to a different environment
- domain selection, diversification, mergers and acquisitions, divestiture
- domain selection
- choosing where
- diversification
- investing in different types of industries or products
- mergers and acquisitions
- combining firms, buying
- diverstiture
- selling off/getting out of a business
- environmental attractiveness factors
- competitors, substitutes, captial requirements, brand loyalty
- strategic mgmt process
- establish mission, analyze swot, strategy formulation, strategy implementation
- swot analysis
- analyzing strengths, weaknesses, opportunities, threats
- bcg matrix
- compares company's market growth and relative position, stars, cash cows, dogs, question marks
- star
- high market growth and strong relative position, IPod
- cash cow
- low market growth and strong relative position, Kleenex
- question mark
- high market growth and weak relative position, Barnes and Noble.com
- dog
- low market growth and weak relative position, Oldsmobile
- corporate strategy alternatives
- concentration, vertical integration, concentric diversification, conglomerate diversification
- concentration strategy
- an organization operates a single business and competes in a single industry
- vertical integration strategy
- an organization enters one or more busineses that are necesary for manufacturing or distributing its own products
- concentric diversification strategy
- an organization add snew businesses that produce related products or are involved in related markets and activities
- conglomerate diversification strategy
- an organiation adds new busineses tha produce unrelated products or are involved in unrelated markets and activities
- strategies for managing the political environment
- lobbying, pacs, strategic retreat, coalition building, stonewalling
- spheres of economic influence
- wto, nafta, apec, eu
- wto
- world trade organization, 90% of world's trade
- nafta
- north american free trade agreement, world's richest in trade, US, Canada, and Mexico
- apec
- asian pacific economic cooperation, over 50% of goods, 18 countries
- eu
- european union, most change, affects the most, impact
- factors of international market attractiveness
- population, total and per capita GNP, economic stability, elgal system, geographic proximity, trade barriers, transportation, consumer behavior, competition, political stability, cultural access, support a rapid expansion into foreign markets, probability of losing a current technological advantage
- organization models-international strategy
- multinational, international, transnational, global
- two factors of worldwide marketplace strategy
- worldwide integration-single focus, common look, product, local responsiveness-one of a kind, unique
- global model
- views the world as a single market, operations are centrally controlled, high wi and low lr (mcdonalds)
- multinational model
- several subsidiaries operating as stand-alone busines units in multiple countries, low wi and high lr (shell)
- international model
- uses existing tech capabilities to expand into foreign markets, low wi and low lr (xerox)
- transnational model
- specialized facilities permit local responsiveness, complex coordination mechanisms provide global integration, high wi and lr (caterpillar)
- modes of entry
- exporting, licensing, franchising, joint venture, wholly owned subsidiary
- exporting
- make here, ship there
- licensing
- contractual agreement to let someone else do it (product)
- franchising
- contractual agreement to let someone else do it (service)
- joint venture
- contract between partners
- wholly owned subsidiary
- build and make there
- host country nationals
- natives of the country where an oversees subsidiary is located
- expatriates
- parent-company nationals, a parent-comp national who is sent to work at a foreign subsidiary
- third-country nationals
- natives of a country other than the home or host country
- most significant cause of international failure
- lack of cultural awareness
- nation's culture
- shared knowledge, beliefs, and values, as well as common modes of behavior and ways of thinking about societal issues
- hofstede's dimensions of cultural difference
- power distance, uncertainty avoidance, individualism/collectivism, masculinity/femininity
- power distance-dimension
- extent to which a society accepts the fact taht power in organizations is distributed unequally (US-low)
- uncertainty avoidance-dimension
- extent to which people in a society feel threatened by uncertain and ambiguous situations, in personality
- individualism/collectivism
- extent to which people act on their own or as part of a group (union)
- masculinity/femininity
- extent to which a society values quantity of life (masc.) over quality of life (fem)
- organizations
- composed of individuals and groups in order to achieve certain goals and objectives by means of differentiated functions that are rantionally coordinated and directed through time on a continuous basis
- horizontal differentiation
- aka differentiation, way tasks are broken up
- vertical differentiation
- integration, how tasks are coordinated
- flat
- few levels of hierarchy (classroom, small business)
- tall
- many layers of mgmt (banks)
- hierarchical perspective
- bottom: operational-daily, weekly (supervisor); middle: tactical-coordinate long and short (middle mgmt); top: strategic-long term (pres, vp, dean)
- span of control
- number of people reporting to a manger, size depends on the organization
- mixed departmentalization
- occurs in many large organizations, may have separte operating divisions but each depmts in the divisions may be organized differently
- types of organization structure
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functional, product, georgraphic, matrix, project team, collegial
all have + and - - functional structure
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most common, grouped according to technical/specialty
adv-functional specialization
disadv-can lose product focus - line depts
- make the product
- staff depts
- provide council and advice
- product structure
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grouping according to product or service, ex. GM-buick, cadillac, pontiac, etc
adv.-product focus
disadv-redundancy - geographic structure
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grouping org units by geographic locations
adv-local customer responsiveness, preferences
disadv-redundancy, lose corporate control - matrix organizations
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characterized by dual reporting relationships in which some persons report to two supervisors-functional and product manager
adv-maximum flexibility for stocks, functional specialization, product focus
disadv-complicated, violates managerial rules? - project team structure
- interdisciplinary specialists assigned to long-term project (acctg, manuf, mktg, engr, manuf)
- collegial structure
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non-pyramidal form, co-equal partners, ex. pediatricians
adv-most flexible, most communication
disadv-takes high credentials, can't do w/ large organization - application of structure
- based on three variables: environment, goals of the org, technology
- technology
- think of as transformation process, inputs to outputs
- mechanistic work unit
- highly formal, limited participation, dependent on supervisor, centralized, rules, titles, policy, procedures
- organic work unit
- informal, high participation, less dependent on supervisor, decentralized, status based on knowledge
- organizational culture
- a shared system of core values, a set of assumptions about the organization and its goals, that members of the company share, the way we do things around here, a set of shared beliefs communicated through a variety of symbolic media
- visible culture
- office layout, symbols, ceremonies, dress, slogans, parking spaces
- invisible culture
- expressed values, underlying assumptions and deep beliefs
- components of organizational culture
- (10), contribute to differences between organizations, individual initiative, risk tolerance, direction, integration, mgmt support, control, identity, reward system, conflict tolerance, communications style
- coc-individual initiative
- degree of autonomy, freedom, independence
- coc-risk tolerance
- degree to which employees are encouraged to take risks
- coc-direction
- clear performance objectives, targets
- coc-integration
- degree to which units are encouraged to work together
- coc-mgmt support
- trust, rapport, personal vs. cold
- coc-control
- budget oriented
- coc-identity
- degree to which employees see themselves as part of the organization, affiliation
- coc-reward system
- based on merit, contribution, power?
- coc-conflict tolerance
- degree to which employees are encouraged to air differences
- coc-communications style
- sharing vs. talked down/directed
- transmission of organizational culture
- stories, legends, myths, rites and ceremonies: passage, enhancement, renewal, integration
- toc-r&c-passage
- facilitates transition (orientation)
- toc-r&c-enhancement
- emphasizing social identity (award banquet)
- toc-r&c-renewal
- training programs
- toc-r&c-integration
- ex. bowling league
- entrepreneurship (org)
- the buying, selling, and bringing together of the factors of production
- entrepreneurship (mod)
- propensity to identify business opportunities and to take action to exploit those opportunities, future-oriented toward market opportunities and willing to take chances
- property-entrp
- traits and characteristics of the entrepreneur
- process-entrp
- a series of steps and procedures, an approach
- entrepreneurial personality-5 traits
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internal locus of control, tolerance for ambiguity and uncertainty, motivation to excel, opportunity obsession
MOLTT - locus of control
- deals with how individuals attribute responsibility for events in their lives, internals: effort, ability, work, knowledge; externals: luck, bosses, fate
- entrepreneurial process-opportunity analysis
- problem recognition-idea, information search-marketing, alternatives evaluation-options, purchase decision-packaging, postpurchase behavior-customer satisfaction
- entrepreneurial hazards
- bad idea, mortality, delegation, funding, planning and control
- intrapreneurship
- corporate entrepreneurship, the concept of suing entrepreneurial thinking within the complexity and bureaucracy of a large organization
- intrapreneurship opportunities
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administrative-procedures to allow for creativity, opportunistic-idea champion, acquisitive-buy small company who's doing it, imitative-barnes&noble.com
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