MGMT Exam 3 Study Guide
MGMT Exam 3 Study Guide MGMT 3202
Popular in Fundamentals of Management
verified elite notetaker
Popular in Business
verified elite notetaker
This 6 page Study Guide was uploaded by Kiera Howard on Wednesday March 16, 2016. The Study Guide belongs to MGMT 3202 at East Carolina University taught by Tiffany Woodward in Spring 2016. Since its upload, it has received 24 views. For similar materials see Fundamentals of Management in Business at East Carolina University.
Reviews for MGMT Exam 3 Study Guide
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 03/16/16
Also see notes from powerpoints posted on Blackboard Chapter 6 Planning, why planning is important, SWOT Analysis, corporate-level strategy, business- level strategy, diversification (related and unrelated) The Five Forces Model • When substitutes exist, your customers can easily switch. If they can switch, you cant command high prices for your products Vertical Integration • Allows a company to reduce costs and/or distinguish itself from the competition Backward Vertical Integration • An ice cream company buying the dairy farm or opening their own Forward Vertical Integration • Moving into distribution. Apple is in total control and offers expert help to change the customer experience which sets them apart from competitors Global Strategy • Inexpensive, but may result in lower market share • Example: name brands (Rolex watches) and electronics Multi-domestic Strategy • More expensive, but typically results in greater market share • Example: restaurants/fast food (McDonalds) and cars (Toyota) Exporting • Wineries in France export products to North America Importing • Pier 1 imports goods from around the world • Minimal involvement, risk, investment Licensing • DuPont allows a factory in another country to produce Teflon Franchising • Hilton sells a franchise to a company in another country to operate under their name • Moderate involvement, risk, investment Strategic Alliance • Starbucks located in many stores Join Venture • Created BPW to sell ready-to-drink products • Moderately high involvement, risk, investment Wholly Owned Foreign Subsidiary • VW of America is a subsidiary of VW group in Germany • High involvement, risk, investment Low-cost Strategy • Cost savings are then typically passed on to customers • Example: Wal-Mart buys in bulk and pays lower wages Differentiation • A differentiation strategy is typically more expensive to pursue • Example: coke/Pepsi attempts to distinguish their soda from others and engage in marketing that informs customers regarding their differences “Stuck in the Middle” • K-Mart would up in the middle after Wal-Mart won the price war and the company failed to distinguish itself. • Example: Toyota and Honda have been successful being “stuck in the middle” Focused Low-Cost • Segments can be defined by demographics (age, gender, income level) or by the channel used to reach the customer • Example: Claire’s has inexpensive jewelry and accessories and targets segment demographic (preteen/teenage girls) Focused Differentiation • Segments can be defined by demographics or by the channel used to reach the customer. • Example: Ferrari has high quality, customized, hand made automobiles with a target segment of rich people Chapter 7 Organizing, organizational structure, job design, flat organizations Formal Structure • Slow decision-making and change, managers will maintain more control Flexible Structure • Employees are empowered, decision-making and change occur more rapidly Organizational Environment • Stable environment=formal structure • Unstable environment=flexible structure Strategy • Single industry concentration and low-cost strategy=formal structure • Multi-industry, international, and differentiation strategies=flexible structure Technology • Routine technology=formal structure • Complex technology=flexible structure Human Resources • Unskilled workers-formal structure • Skilled workers=flexible structure Job Simplification • Makes job easier and more routine to perform • Typically used in formal structure Job Enlargement • Increases the complexity of a job • Typically used in flexible structures Skill Variety • Low: a worker in a body shop only paints cars that come in for repair • High: the body shop owner interacts with customers, schedules appointments, appraises damagers, and estimates costs. They also participate in working on the cars that come in for repair Task identity • Low: a worker on an assemble line installs the left side door on a car • High: a craftsperson designs a piece of furniture, cuts the necessary parts, assembles the furniture, finishes it, and sells the piece to a customer. Task Significance • Low: a factory worker assembles a “fad” toy during the holiday season • High: a factory worker assembles a CT scan machine, which will be used to diagnose serious illness Autonomy • Low: a call center employee reads a script as he/she interacts with customers • High: a salesperson sets his/her own schedule, decides which customers to prioritize, and customize his/her presentation according to the client’s needs Feedback • Low: an employee assembles a radio and sends it to another area for testing • High: a waitress receives a thank you note and a large tip after serving a table during the evening rush Functional Structure • Finance, merchandising, research and development, marketing, accounting, human resources, sales, etc. • Varies between industries and organizations • Benefits 1. Employees learn from others in their department 2. Easy for managers to monitor and evaluate performance 3. Increased efficiency • As organizations grow, relying only on functional structure is difficult because departments become large and difficult to manage Divisional Structure • Many large organizations create a divisional structure and create business divisions/units • Divisions are self-contained, which means each division has its own set of functions necessary to produce goods/provide services Product Structure • Organizations that pursue a diversification strategy often use a product structure • Managers can oversee which units are more/less productive • Easier to make decisions regarding investing/divesting Geographic Structure • Organizations that pursue international expansion often use a geographic structure • Organizations that do NOT pursue international strategies can also use a geographic structure. Conditions can vary significantly by region within the U.S. Market Structure • Organizations that serve diverse customer groups often use a market structure Tall Organizations • Disadvantages 1. Slow decision-making and implementation 2. Communication becomes distorted 3. More expensive, especially as more managers are hired Chapter 11 Top management team, research and development team, command groups, task forces, self-managed work teams, virtual team, cross functional team, forming, norming, performing, adjourning, conforming, social loafing Types of Groups & Teams • You will use formal groups in order to accomplish work goals. As a manager, you have a responsibility to ensure that these groups perform well • Informal groups have nothing to do with accomplishing work related projects, but members of informal groups are typically happier, more satisfied, and more motivated than employees that do not socialize on the job Group Dynamics • Managers can manipulate group dynamics to affect group performance Group Size • Small Group: o easier interaction/coordination o Higher levels of motivation/satisfaction o Easier to share information o Fewer resources • Large Group: o More resources o Division of labor o Harder to communicate/coordinate o Lower levels of motivation/satisfaction Group Roles • Members might perform roles based on their knowledge, skills, and abilities • When members don’t perform their roles, this causes conflict in the group Group Development • As groups progress through different stages, their focus changes • Managers may not have much control over progression, but can assess if a group becomes “stuck” in a particular stage Storming • Task related conflict is normal, healthy, and can result in better output • Relationship conflict causes animosity and results in decreased output Group Norms • When we meet, working hours, how we share information, how tasks are performed, dress code, etc. • Norms are an important dynamic because the degree to which members follow or deviate from them can affect group performance Deviance • When deviance occurs, the group is failing to control its members’ behavior • The group may: 1. Try to force the member to change their behavior 2. Expel the member from the group 3. The group may change their norms • Not all group norms are positive or functional • Is a group routinely spends the first 30 minutes of a meeting socializing (instead of working) that is a dysfunctional norm. In this case, deviance within the group might correct this behavior Group cohesiveness • Groups with a low level of cohesiveness typically don’t get along well and don’t perform well • Groups with a high level of cohesiveness will get along well and might even perform well, but are typically inefficient Factors That Influence Group Cohesiveness • Group size: o Smaller groups- higher level of cohesiveness o Larger groups- lower level of cohesiveness • Effectively managed diversity: o More diversity- lower level of cohesiveness o Less diversity- higher level of cohesiveness • Group identity and competition: o Group identity can unite members and increase cohesiveness. o Competition between groups can also increase cohesiveness • Success: o Constant failure decreases cohesiveness – no one wants to lose all of the time o Cohesiveness increases with success
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'