MGMT 3000 Introduction to Management Lyons UGA Exam 1 Review
MGMT 3000 Introduction to Management Lyons UGA Exam 1 Review MGMT 3000
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This 8 page Study Guide was uploaded by Samantha Snyder on Monday October 3, 2016. The Study Guide belongs to MGMT 3000 at University of Georgia taught by Charles W. Lyons, J.D. in Fall 2015. Since its upload, it has received 3 views. For similar materials see Principles of Management in Business, management at University of Georgia.
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Date Created: 10/03/16
MGMT 3000 Exam 1 Study Guide Lyons Chapters 1, 2, 3, 4, 5 and 6 Chapter 1: Introduction to Management Key Terms Bureaucratic Organization Structure—A clear differentiation of tasks and responsibilities among many individuals, coordination through a strict hierarchy of authority and decision rights, standardized rules and procedures, vertical separation of planning and execution and the use of technical criteria for recruitment and promotion Business Environment—the combination of contextual forces and elements in the external and internal environment of a firm Contextual Intelligence— the ability to understand the impact of environmental factors on a firm and the ability to understand how to influence those same factors Contingency Planning— the systematic assessment of the external environment to prepare for a possible range of alternative futures for the organization Contingent View— Effective organizational structure was based on fit or alignment between the organization’s structure, the business environment and the leadership of a firm Environmental Scanning— a tool that managers use to scan the business horizon for key events and trends that will affect the business in the future Human Relations Movement—the belief that organizations must be understood as systems of interdependent human beings who share a common interest in the survival and effective functioning of a firm Leadership— the ability to drive change and innovation through inspiration and motivation Management— the act of working with and through a group of people to accomplish a desired goal or objective in an efficient and effective manner Managerial View— Firm is a mechanism for converting raw materials into sellable products Scenario Building— forecasting the likely result that might occur when several events and stakeholders are linked together Scientific Management—A focus on how jobs, work and incentive schemes could be designed to improve productivity using industrial engineering methods Stakeholder— any group or individual who can affect or is affected by the achievement of an organization’s purpose Shareholder View—A business framework where the job of top managers is to produce the highest possible stock market valuation of the firm’s assets Stakeholder View—A business framework that attempts to organize and analyze multiple groups that interact with the firm Strategic Review Process— the process by which senior leaders of a corporation meet with business unit managers to review progress toward specific goals Trend Analysis— a tool where key variables are monitored and modeled to help predict a chance that might occur in the environment 1 Chapter 2: The Global Business Environment Key Terms Board of Directors—a group of individuals elected by the shareholders and charged with overseeing the general direction of the firm and ensuring that the managers are serving the interests of their diverse group of shareholders Comparative Advantage— an economic theory that proclaims Competitor— any organization that creates goods or services targeted at a similar group of customers Customers— the people or other organizations that buy a firm’s products or services Economic Dimension— the general economic environment (GDP, inflation, unemployment, etc.) in the markets where the firm performs and operates Employees— the people who make the products and provide the services that allow a firm to exist External Environment— represents all of the external forces that affect’s a firm’s business General Environment— includes the technological, economic, political/legal and sociocultural dimensions that affect a firm’s external environment, the firm’s primary external forces (outermost layer in environment diagram) Globalization— the integration and interdependence of economic, social, technological, sociocultural and political systems across diverse geographic regions Internal Environment— a group of parties or factors that directly impact a firm, including owners, the board of directors, employees and culture Legal Dimension— the regulations and laws that firms encounter in their markets Owners— the people or institutions that maintain legal control of an organization Political Dimension— refers to the political activities and events in a market that affect a firm Social Values— the deeply rooted system of principles that guide their everyday choices and interactions Sociocultural Dimension— demographic characteristics as well as the values and customs of a society Supplier— a company that provides resources or services for a firm to help in it’s creation of products and services Task Environment— includes entities that affect a firm on a constant basis and include competitors, suppliers and customers, exert a greater and more immediate influence on a firm than general environment factors do (second layer in environment diagram) Technological Dimension— the processes, technologies or systems that a firm can use to produce outputs, including the tech behind manufacturing lines, and hardware/software used to run distribution systems, etc. 2 Chapter 3: Ethics and Corporate Social Responsibility Key Terms Conflicts of Interest— conflicts that occur when employees or managers engage in activities on behalf of the company and have a personal interest in the outcome of those activities Corporate Social Responsibility— a business’s obligation to pursue the policies, decisions and actions that align with the objectives and values of society Corporate Social Responsiveness— the practice of businesses responding to pressure from society to engage in socially responsible ways Distributive Justice— a subset of justice that deals with the distribution of wealth among members of a society Economic Responsibilities— a business’s duty to make a profit and increase shareholder value (can be direct or indirect) Ethical Responsibilities— a business’s duty to meet the expectations of society beyond its economic and legal responsibilities Ethics— the study of moral standards and their effect on behavior and conduct Fiduciary— a person who is entrusted with property, information or power to act on behalf of a beneficiary Justice— an ethical philosophy that provides the framework for society to judge what is morally right or wrong, fair or unfair, and establishes ways to evaluate or punish those who behave in morally wrong ways Kantianism— an ethical philosophy that motives and universal rules are important aspects in judging what is right or wrong Legal Responsibilities— a business’s duty to pursue its economic responsibilities within the boundaries of the law Morality— the standards that people use to judge right or wrong, good or evil Privacy— a person’s right to determine the type and extent of information that is disclosed about him or her Procedural Justice— a subset of justice claiming that rules should be clearly stated, consistently obeyed and impartially enforced Strategic CSR— corporate social responsibility activities that are directly related to business activities to that they can combine social welfare with financial welfare Trade Secret— any type of information used in conducting business that is not commonly known by others, and often provides a company a strategic advantage over it’s competitors Utilitarianism— the ethical philosophy claiming behaviors are considered moral if they produce the greatest good or utility for the greatest number of people Virtue Ethics— an ethical philosophy claiming that morality’s primary function is to develop virtuous character Whistle-blowing— the release of information by a member of an organization that is evidence of illegal or immoral conduct to executives in a company or regulating agencies outside a company 3 Chapter 4: Introduction to Strategy Key Terms Alliances—a structure where partners come together by contract to engage jointly in activities in a market Business-level Strategy— the determination of how a company will compete in a given business and position itself among competitors Competitive Advantage—a firm achieves a competitive advantage when it creates more economic value than its competitors by engaging in a strategy that is difficult or impossible for others to duplicate Conglomeration—the act of growing through unrelated diversification, essentially by acquiring companies in different industries Core Competencies— a network of unique activities that strategically fit together and are difficult to replicate Corporate-level Strategy—the way a company seeks to create value through the configuration and coordination of multimarket activities Exporting—shipping a firm’s products from its domestic home base to global markets Franchising—common arrangements in many retail businesses where a firm contracts with individual owners to operate its retail units—typically involves a corporation sharing marketing and management techniques with the owner in exchange for a fee and a percentage of revenues Global Strategies— strategies that focus on developing overall scale economies and global efficiency instead of catering to local tastes Goal—an organizationally desired result, product or end-state International Strategies— strategies that combine elements of multinational and global strategies by using foreign subsidiaries to produce and distribute products Joint Venture—a structure where two firms come together to form a new company in a market Licensing—a contractual agreement whereby the licensor (selling firm) allows its technology, patents, trademarks, designs, processes, know-how, intellectual property, or other advantages to be used for a fee by the licensee (buying firm) Mission— the activities a firm performs for its customers Mission Statement— a statement that defines a firm’s reason for existence Multinational Strategies—strategies in which the parent company organizes local subsidiaries and gives the autonomy to develop products tailored to local tastes Objectives—series of quantifiable milestones or benchmarks by which a firm can measure progress Operational Effectiveness—performing certain activities that enable a firm to operate more effectively than its competitors do Return on Equity— a measure of the rate of return on the ownership interest (shareholder’s equity) of the common stock owners Strategy—pursuing a set of unique activities that provide value to customers, making tradeoffs about which businesses to pursue, what products to produce and which customers to serve, and aligning resources to achieve organizational objectives 4 Strategic Position— a place in an industry that a firm occupies by the way of the products or services it offers and the methods it choses to deliver them Strategy Formulation—the process of identifying how a firm can best align its resources to carve out a defensible position in the marketplace Transnational Strategies—strategies that balance a firm’s international activities among efficiency, local responsiveness, and organizational learning Vision—a concept or picture of what a firm wants to achieve and how it plans to accomplish that Wholly Owned Subsidiary—a fully operational, independent entity that a firm sets up in a foreign country to conduct business in that market 5 Chapter 5: Business Level Strategy Key Terms Bargaining Power— the pressure that a supplier or buyer can exert on a company Barriers to Entry—obstacles a firm may encounter when trying to enter a market or industry Cost Leadership— a strategy that aims to provide a product or service at as low a price as possible to broaden the audience Differentiation—a strategy in which a firm seeks to be unique in its industry along with a dimension or group of dimensions that are valued by consumers words like low cost focus, blue ocean, etc Economies of Scale—cost savings achieved when the volume of a product produced by a firm enables it to reduce per unit costs First-mover Advantage— a competitive advantage that occurs when a firm is first to offer desirable products or services that secure customer loyalty Focus— a strategy in which a company “focuses” its sales efforts on a specific geographical region, a specific group of purchasers or a specific product type Primary Activities— the activities involved in the physical creation of the product and its sale and transfer to the buyer Resource-based View of the Firm— a theory that a firm can develop a competitive advantage through the collection and harvesting of resources Strategic Flexibility— the capability to identify and react to changes in the external environment and to mobilize internal resources to deal with those changes Support Activities—activities that provide the support necessary do the primary activities to occur SWOT analysis— a tool that allows managers to take a snapshot of their firm’s internal strengths and weaknesses, and the opportunities and threats that are existent in the external business environment Value—the amount that customers are willing to pay for a product or service—it comes from offering a lower price than that of competitors or providing a unique product whose benefits outweigh a higher potential cost Value Chain Analysis— a systematic way of examining all of the activities a firm performs and determining how they interact to form a source of competitive knowledge Chapter 6: Corporate-Level Strategy Key Terms Administrative Costs— the cost of coordinating activities between business units Backward Integration— occurs when a firm owns or controls the inputs it uses Corporate Advantage—occurs when a firm maximizes its resources to build a competitive advantage across its business units Diversification—a strategy in which a firm engages in several different businesses that may or may not be related in an attempt to create more value than if the businesses existed as stand- alone entities 6 Economies of Scope—exists when the costs of operating two or more businesses or producing two or more products with the same corporate structure is less than the costs of operating the businesses independently or producing each product separately Factor Cost Differences— cost savings achieved by access to raw materials or other factors such as low cost labor Financial Economies—cost savings that a firm achieves through the distribution of capital among business units Forward Integration—occurs when a firm owns or controls the customers or distribution channels for its main products Horizontal Diversification—another name for related diversification where a firm pursues businesses that share a similar set of tangible and intangible resources Market Power— achieved when a firm attempts to increase the price at which it sells its products to levels above the normal price seen in the market Outsourcing—contracting with a firm outside of the corporation to perform certain tasks or functions that the corporation used to do on its own Related Diversification—a firm that owns more than one business that uses a similar set of tangible and intangible resources Single-product Strategy— a strategy in which a firm focuses on one specific product, typically in one market Spot Contracts— contracts that allow a buyer to purchase a commodity at a specific price Synergy—created when a firm generates substantial cost savings by combining duplicate activities or deploying underutilized assets across multiple businesses Transaction Costs— costs to obtain products or services from a contractor or supplier as well as the costs associated with writing and administering the contracts for these products or services Unrelated Diversification—a firm that manages several businesses with no reasonable connection Vertical Integration— occurs when one corporation owns business units that make inputs for other business units in the same corporation Ch 1 • *** on some slides Ch 2 • NAFTA • EU—interesting bc its continuing existence is in question right now bc of Greece/migrant crisis and EU has “declared war” on US tech industry (taxing, antitrust with google, and data privacy laws) • Microsoft in China • Google in China o Went in, agreed to censor search results, left, went back in bc DUH its China... • Apple in China • Uncertainty is a function of environmental change—slide 19/20 o Most companies go thru cycles • Airline industry right now—insane profits (which usually means very stable) • Apple has a stable environment right now 7 • Anheuser-Busch InBev has a dynamic environment o Ch 6 corporate level strategy to combat this is to buy SABMiller • Resource scarcity REALLY increases environmental complexity • Slide 36 • 37—you can expect a question giving an example on test asking which area it affects • don’t need to know slides 49 and 50 • slide 45 • slide 51 Chapter 3 • setting goals can encourage unethical behavior • understand influences on ethical decision making – slide 6 o factors of intensity (slide 8) o moral development of manager o approach taken to ethical decision making • know ethical frameworks o utilitarianism o Kantianism – apple o Know what a fiduciary is o “I doubt there will be a virtue ethics question---if ‘virtue ethics’ is on the exam, it’s probably wrong” • types of justice o wholefoods – distributive justice—highest paid person there is limited to 16x the lowest paid employee • ethical dilemmas • 4 elements of CSR pyramid— “I added top of pyramid” • know CSR2 – corporate social responsiveness o know spectrum slide • strategic CSR o figure out where your business imposes a cost to society and focus your efforts there o apple protecting privacy o chart // figure 3.3 Four-step process to implementing CSR 8
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