C483 WGU Principles of Management

C483 WGU Principles of Management Leave the first rating Students also studied Terms in this set (99) Social SciencesBusinessBusiness management Save Test Prep - WGU - Principles of Man...105 terms C_BondePreview Principles of Management Practice ...65 terms IomosPreview WGU C483 - Principles of Managem...430 terms rwdixon1993Preview Deming 14 terms chu Describe strategic planningMaking decisions about the organization's long-term goals and strategies Describe strategic goalsmajor target long-term goals that are effective and efficient describe strategypattern of actions and resource allocations designed to achieve the goals of the organization. 1. Where will we be active? 2. How will we get there (increase sales or acquire another company)? 3. How will we win the in the marketplace (keep prices low or offer the best service)? 4. how fast will we move in what sequence will we make the changes? 5.How will we obtain financial returns (low cost or premium prices)? *In setting a strategy, managers try to match the organization's skills and resources to the opportunities found in the external environment.Explain what a Core Competency/ Capability means for an organization.

Core Capability: (or competence) when resources are valuable, rare, inimitable,

and organized. Something company does especially well relative to its competitors. (EX: Honda small engine) Core competencies typically refers to a set of skills or expertise in some activity rather than physical or financial assets.Porter's 5 ModelPorter's 5 Model is a method used to help managers analyze the competitive environment and adapt to or influence the nature of their competition.

Describe Porter's 5 Model and how it is used in the strategic planning process.

• understand the competitive environment, organization's must identify

competitors.

• analyze how to compete.
• new entrants (Netflix took out blockbuster)
• substitutes and complements (coke for starbucks; starbucks complement is a

cake pop) 5. suppliers: switching costs ( fixed costs buyers face when they

change suppliers), supply chain management ( managing of the network of facilities and people that obtain materials from outside the organization, transform them into products, and distribute them to customers.)

• customers: without customers a company wont survive (final customer ex:

mcdonalds) (Intermediate customer ex: customer who purchases raw materials or

wholesale products before selling them) Explain a SWOT Analysis1. SWOT analysis: assessment of the organization's strengths, weaknesses, opportunities, and threats

• SWOT analysis helps managers summarize the relevant important facts from

their external and internal analysis SWOT analysis strengths and weaknesses-strength and weaknesses: interal recources EX: organization's strengths might include skilled management, positive cash flow, and well-known highly regarded brands.Weakness might be lack of spare production capacity and the absence of reliable suppliers SWOT analysis opportunities and threats-SWOT analysis helps managers summarize the relevant, important fats from their external and internal analysis.-they can identify the primary and secondary strategic issues their organization faces. The managers then formulate a strategy that will build on the SWOT analysis to take advantage of available opportunities by capitalizing on the organization's strengths, neutralizing its weakness, and countering potential threats.How SWOT analysis helps managers:-SWOT analysis helps managers summarize the relevant, important fats from their external and internal analysis.-they can identify the primary and secondary strategic issues their organization faces. The managers then formulate a strategy that will build on the SWOT analysis to take advantage of available opportunities by capitalizing on the organization's strengths, neutralizing its weakness, and countering potential threats.Name the 5 types of corporate strategies that organizations use

• corportate strategy
• concentration strategy
• vertical integration strategy
• concentric diversification strategy
• conglomerate diversification strategy

define corporate strategyidentifies the set of businesses, markets, or industries in which the organization competes and the organization competes and the distribution of resources among those businesses shows basic alternatives for a corporate strategy, ranging from very specialized to highly diverse Concentration Strategyfocuses on a single business competing in a single industry

vertical integration strategyinvolves expanding the domain of the organizatoin into supply channel or to distributors concentric diversification strategyinvolves moving into a new business that are related to the company's original core business conglomerate diversification strategya corporate strategy that invovles expansioin into unrelated businesses Name the two kinds of business strategies that companies can use to gain competitive advantage

• Low-cost strategy
• Differentiation Strategy

Define Low-cost strategybusiness attempt to be efficient and offer a standard, no-frills product

ex: walmart

define differentiation strategycomapnies attempt to be unique in its industry or market segment along some dimensions that customers value. this unique or differentiated position within the industry often is based on high product quality, excellent marketing and distribution, or superior service define business strategythe major actions by which an organization builds and strengthens its competitive position in the marketplace Name the 6 steps in the strategic planning process 1. Establishment of mission, vision and goals

• analysis of external opportunities and threats
• analysis of internal strengths and weaknesses
• SWOT analysis and strategy formulation
• strategy implentation
• strategic control

Describe the first step in the basic planning process (Establishment of mission, vision, goals) mission: clean and concise expression of the basic purpose of the orgnization; it describes what the orgnization does, for whom it does it, its basic good or service and its value

ex: mcdonalds "To be our customer's favorite place and way to eat."

strategic vision: the long-term direction and strategic intent of a company

Describe the 2nd step in the planning process (analysis of external opportunities and threats) groups of individuals who affect and are affected by the achievement of the organization's missions, goals and strategies

ex: buyers, suppliers, competitors, so on

describe the third step analysis of internal strengths and weaknesses

resources and core capabilities: resources input to production that can be

accumulated over time to enhance performance of a firm

tangible assets: real estate

intangible assets: company reputation

example: Disney

describe step 4 SWOTcomparison of strengths, weaknesses, opportunities, and threats that helps executives formulate strategy

describe step 5 strategy implementation1. define strategic tasks

• asses organization capabilities
• develop an implementation agenda
• create an implementation plan

describe step 6 strategic controla system designed to support managers in evaluating the organization's progress regarding its strategy and when discrepancies exist, taking correctice action Define Value ChainThe sequence of activities that flow from the raw materials to the delivery of a good service with additional value created at each step. Each step in the chain adds value to the product or service.List the steps in the value chain.1. Research and development focus on innovation and new products.

• Inbound logistics receive and store raw materials and distribute them to

operations..

• operations transform the raw materials into final product.
• outbound logistics warehouses the product and handles its distrubtion
• marketing and sales identifies customer requirements and gets customers to

purchase the product

• service offers customer support, such as repair, after the item has been bought.

What is the main difference between mechanistic and organic organizational structure?Organic is less rigid and emphasizes flexbility.What is mechanistic organizational structure?1. type of bureaucracy

• boss is number one and gives orders, then goes down chain of command

What is organic organizational structure?1. jobholders have broader responsbilities that change as the need arises.

• communication occurs through the advice and information rather than through

orders and instructions

• decision making influence are more decentralized and informal
• expertise is highly valued
• jobholders rely more heavily on judgement than on rules
• obedience to authority is less important than commitment to the organization's

goals Define Total Quality Management (TQM)way of managing in which everyone is committed to continuous improvement of hir or her part of the operation How is the total quality management system implementing one benefits an organization?TQM is a comprhensive approach to improving product quality and customer satisfaction. is it s astrong orientation to customers. it also reorients managers toward involving people across departments improving all aspects of the business. continuous improvemnt requires integrative mechanisms that facilitate group problem solving information sharing and seperate stages and functions.What is the statistical important of TQM?to analyze the causes of the product defects using six sigma quality What is the Deming's 14 points?Edwards Deming created an approach to managed that demands understanding of the process--- delicate interaction of raw materials, machines, and people that determines productivity, quality, and competitive advantage.