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Exam 2 (ch. 6,7,10) Study Guide

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Exam 2 (ch. 6,7,10) Study Guide MANA 3335

Marketplace > University of Houston > Business, management > MANA 3335 > Exam 2 ch 6 7 10 Study Guide

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These notes cover chapter 6, 7 and 10. Hope this helps and good luck on your exam :)
Richard DeFrank
Study Guide
exam2, Studyguide, Management
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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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