Exam 2 (ch. 6,7,10) Study Guide
Exam 2 (ch. 6,7,10) Study Guide MANA 3335
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This 11 page Study Guide was uploaded by Notetaker on Saturday October 8, 2016. The Study Guide belongs to MANA 3335 at University of Houston taught by Richard DeFrank in Fall. Since its upload, it has received 33 views. For similar materials see /class/208329/mana-3335-university-of-houston in Business, management at University of Houston.
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Date Created: 10/08/16
Exam 2 (6,7,10) MANA 3335 Study Guide 61 Sustainable Competitive Advantage Resources: are the assets, capabilities, processes, employee time, information and knowledge that an organization controls. Competitive advantage: providing greater value for customer than competitors can. Sustainable competitive advantage: a competitive advantage that other companies have tried unsuccessfully to duplicate and have for the moment, stopped trying to duplicate. Valuable resource: a resource that allows companies to improve efficiency and effectiveness. Rare resource: a resource that is not controlled or possessed by many competing firms Imperfectly imitable resource: a resource that is impossible or extremely costly or difficult for other firms to duplicate. Nonsubstitutable resource: a resource that produces value or competitive advantage and had no equivalent substitutes or replacements. 62 StrategyMaking Process Competitive inertia: a reluctance to change strategies or competitive practices that have been successful in the past. Strategic dissonance: a discrepancy between a company’s intended strategy and the strategic actions managers take when implementing that strategy. Situational (SWOT) analysis: as assessment of the strengths and weaknesses in an organizations internal environment and the opportunities and threats in its external environment Distinctive competence: what a company can make, do, or perform better than its competitors Core capabilities: the internal decision making routines, problem solving processes, and organizational cultures that determine how efficiently inputs can be turned into outputs. Exhibit 6.1 Page 113 Shadowstrategy task force: a committee within a company that analyzes the company’s own weaknesses to determine how competitors could exploit them for competitive advantage. Strategic group: a group of companies within an industry against which top managers compare, evaluate and benchmark strategic threats and opportunities. Core firms: the central companies in a strategic group Secondary firms: the firms in a strategic group that follow strategies related to but somewhat different from those of the core firms. Strategic reference points: the strategic targets managers use to measure whether a firm has developed the core competencies it need to achieve a sustainable competitive advantage Portfolio strategy: minimizes risk by diversifying investment among various businesses or product lines Corporatelevel strategy: the overall organizational strategy that addresses the question “what business or businesses are we in or should be in?” Diversification: a strategy for reducing risk by buying a variety of items (stocks or, in the case of a corporation, types of businesses) so that the failure of one stock or one business does not doom the entire portfolio. Acquisition: the purchase of a company by another company Unrelated diversification: creating or acquiring companies in completely unrelated businesses BCG matrix: a portfolio strategy developed by the Boston consulting group that categorizes a corporation’s businesses by growth rate and relative market share and helps managers decide how to invest corporate funds Star: a company with a large share of a fastgrowing market. Question mark: a company with a small share of a fastgrowing market Cash cow: a company with a large share of a slowgrowing market Dog: a company with a small share of a slowgrowing market Grand strategy: Helps an organization achieve its strategic goals Growth strategy: Focuses on increasing profits, or the number of places the company trades Stability strategy: Focuses on improving the way in which the company sells the same products or services to the same customers Retrenchment strategy: Focuses on turning around very poor company performance Recovery: Strategic actions taken after retrenchment to return to a growth strategy Related diversification: creating or acquiring companies that share similar products, manufacturing, marketing, technology, or cultures. Industrylevel strategy: a corporate strategy that addresses the question “how should we compete in this industry.” Character of the rivalry: a measurement of the intensity of competitive behavior between companies in an industry. Five industry forces: 1. Character of the rivalry: Measure of the intensity of competitive behaviour between companies in an industry 2. Threat of new entrants: Measure of the degree to which barriers to entry make it easy or difficult for new companies to get started in an industry 3. Threat of substitute products or services: Measure of the ease with which customers can find substitutes for an industry’s products or services 4. Bargaining power of suppliers: Measure of the influence that suppliers of parts, materials, and services to firms in an industry have on the prices of these inputs 5. Bargaining power of buyers: Measure of the influence that customers have on a firm’s prices Positioning strategies 1. Cost leadership: Producing a product of acceptable quality at consistently lower production costs than competitors 2. Differentiation: Providing a product that is different from competitors’ offerings that customers are willing to pay premium price for it 3. Focus strategy: Involves using cost leadership or differentiation to produce a specialized product Adaptive strategies 1. Defenders: Seek moderate, steady growth by offering a limited range of products and services to a welldefined set of customers 2. Prospectors: Seek fast growth by: a. Searching for new market opportunities b. Encouraging risk taking c. Being the first to bring innovative new products to market IndustryLevel Strategies 1. Analysers: Seek moderate, steady growth and limited opportunities for fast growth 2. Reactors: React to changes in the external environment after they occur Components of FirmLevel Strategies Direct competition: Rivalry between two companies that offer similar products and services Types of FirmLevel Strategies 1. Attack: Competitive move designed to reduce a rival’s market share or profits. 2. Response: Competitive countermove, prompted by a rival’s attack CHAPTER 7 Technology cycle: Begins with the birth of a new technology Scurve pattern of innovation: Characterized by slow initial progress, then rapid progress Innovation streams: Patterns of innovation over time that can create sustainable competitive advantage Methods to Effectively Manage Innovation Creative work environments: Workplace cultures in which workers perceive that new ideas are welcomed, valued, and encouraged Flow: Psychological state of effortlessness. People become completely absorbed in what they are doing and time seems to pass quickly Exhibit 7.3 Page 141 Experiential approach: Managing innovation during discontinuous change • Assumes innovation occurs within a highly uncertain environment • Uses intuition, flexible options, and handson experience • Reduces uncertainty and accelerates learning and understanding • Aspects Design iterations, testing, milestones, multifunctional teams, and powerful leaders Compression approach Managing innovation during incremental change • Assumes that incremental innovation can be planned using a series of steps • Compressing the steps can speed innovation • Aspects a. Planning, supplier involvement b. Shortening the time of individual steps c. Overlapping steps and multifunctional teams Managing Change Change forces: Produce differences in the form, quality, or condition of an organization over time Resistance forces: Support the existing conditions in organizations Resistance to change: Results from selfinterest, misunderstanding and distrust, and a general intolerance for change Managing organizational change is a basic process of: a. Unfreezing: Getting the people affected by change to believe that change is needed b. Change intervention: Process used to get workers and managers to change their behaviours and work practices c. Refreezing: Supporting and reinforcing new changes so that they stick Change tools and techniques a. Resultsdriven change: Created quickly by focusing on the measurement and improvement of results b. General Electric workout: Threeday meeting in which managers and employees generate and act on solutions to specific business problems c. Organizational development: Philosophy and collection of planned change interventions CHAPTER 10 STUDY GUIDE Advantages of Teams • Customer satisfaction • Improved product and service quality • Increased speed and efficiency in product development • Job satisfaction • Crosstraining: Facilitates team members to do jobs performed by other team members • Allow team members to gain job satisfaction from leadership responsibilities • Share the benefits of group decision making Disadvantages of Teams • Initial increase in turnover • Social loafing: Team members withhold their efforts and fail to perform their share of the work • Groupthink Members feel the pressure not to disagree with each other • Decision making takes time • Minority domination One or two people dominate team discussions Exhibit 10.1 page 204 Kinds of Teams Differing in Terms of Autonomy 1. Traditional work group: a group composed of two or more people who work together to achieve a shared goal 2. Employee involvement team: team that provides advice or makes suggestions to management concerning specific issues. 3. Semiautonomous work group: a group that has the authority to make decisions and solve problems related to the major tasks of producing a product or service. 4. Selfmanaging team: a team that manages and controls all of the major tasks of producing a product or service. 5. Selfdesigning team: a team that has the characteristics of selfmanaging teams but also controls team design, work tasks and team membership Kinds of Teams Special Types 1. Crossfunctional: a team composed of employees from different functional areas of organization. 2. Virtual team: a team composed of geographically and/or organizationally dispersed coworkers who use telecommunication and information technologies to accomplish an organizational task 3. Project team: a team created too complete specific, onetime projects or tasks within a limited time. Team Characteristics 1. Norms: Informal agreedon standards that regulate team behavior 2. Cohesiveness: Level to which team members are attracted to a team and motivated to continue in it 3. Conflict: • Cognitive Focuses on problemrelated differences of opinion • Affective Emotional reactions that occur due to personal disagreements Team Development Stages 1. Forming: Team members meet, form initial impressions, and establish team norms 2. Storming: Team members disagree over what to do and how to do it 3. Norming: Team members settle into their roles 4. Performing: Performance improves as the team matures into an effective functioning team Team Decline Stages 1. Denorming: Performance begins to drop as the team statistics change 2. Destorming: Team’s comfort level decreases • Leads to weak team cohesion and raise in negative emotions and conflict 3. Deforming: Team members place themselves to control parts of the team Enhancing Work Team Effectiveness 1. Structural accommodation: Ability to change organizational structures, policies, and practices in order to meet goals 2. Bureaucratic immunity: Ability to make changes without the approval of the managers Factors Considered in Selecting People for Teamwork 1. Individualismcollectivism: Degree to which a person believes that: • People need to be selfsufficient • Loyalty to one’s self is important than loyalty to team or company 2. Team level: Average level of ability experience, personality, or other factors in a team 3. Team diversity: Variances in ability, experience, personality, or other factors on a team Areas of Team Training 1. Interpersonal skills: Enable people to have effective working relationships with others Types of Employee Compensation 1. Skillbased pay: Pays employees for learning additional knowledge 2. Gainsharing: Companies share the financial value of performance gains 3. Nonfinancial rewards: Effective when teams are initially introduced Don’t Forget: 1. Read the book, it will help 2. Study, Study and Study……GOOD LUCK!!!!!
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