Management 301 Week 3 Notes
Management 301 Week 3 Notes Management 301
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This 6 page Class Notes was uploaded by Eunji Cho on Friday February 5, 2016. The Class Notes belongs to Management 301 at University of Massachusetts taught by Bogdan Prokopovych in Spring 2016. Since its upload, it has received 285 views. For similar materials see Principles of Management in Business, management at University of Massachusetts.
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Date Created: 02/05/16
UMass Amherst Management 301 Professor Prokopovych Week 3 Notes: Feb 1-5 By Eunji Cho February 2, 2016 Strategic Management Common Elements of Strategy • Evidence from observing chimps’ behavior by Frans de Waal, dutch primatologist in 1970s: o Complex relations o Political – building coalitions offering grooming, food, etc. o Power struggles: § Raw strength could take a chimp only so far § Establishing a dominant leader • Ancient Greece – Homer’s heroes: o Achilles vs. Odysseus: § Courage of foolishness for reliance on strength § Intelligence or wariness of deceitful use of words o Ability to persuade not only one’s people but also allies • Ancient China – Sun Tzu, 500 BC: o Little known about the author(s) o Influenced by Taoist philosophy o Aphorisms, like the best in strategy “bulking enemy’s plans”, then preventing enemy from joining forces, and the worst – besieging a city Strategic Management • A set of decisions and actions that result in the formulation and implementation of plans designed to achieve a company’s objectives • Requires an understanding of o Strategic management process – series of activities o How to develop an overall strategy o Intended targets of the strategy Competitive Advantage • Ability of a firm to win consistently over the long term in a competitive situation • Created through the achievement of four criteria o Superior value § A result of a unique competence § A function of firm attributes and role of managers o Rarity § No other firm has the capabilities needed to provide the quality/quantity of products and services § Superior value and rarity will only produce a temporary advantage o Difficult to imitate § Tangible barriers: size, location § Intangible barriers: company’s culture and reputation o Non-substitutability § Inability for another firm to fulfill a customer’s need by alternative means Strategic Management Process • Planning process o Set organization’s general direction and objectives o Formulate a specific strategy o Plan and carry out the strategy’s implementation o Monitor results and make necessary adjustments • Determine strategic vision • Define organizational mission • Analyze external environment • Analyze internal resources • Establish objectives • Formulate strategy • Implement strategy o Action plans o Implement plans o Monitor outcomes February 4, 2016 Planning Frederick Winslow Taylor (1856-1915) • Father of “Scientific Management” • Carried out empirical “time-and-motion” studies of manual labor • Wrote influential book “The Principles of Scientific Management” • SM became popular in early 1900s among first business schools and industry • Set distinction between (1)planning and (2)doing: o (1) guided by education, measurement o (2) doesn’t need any education Robert McNamara • Taught accounting at HBS before WW2 • Worked as Director of Ford Motor Company in 1957 and its president in 1960 • Served as US Defense Secretary under JFK and L.B. Johnson (1961-1968), considered as architect of Vietnam War • Popularized the idea of suing management principles to serve corporations and the nation o Scrutinized budgets striving to obtain measurable objectives o Ran Pentagon as an M-Form organization, was resented by many in the end of his career Overview of Planning • Objectives: End states or targets to achieve • Plans: Means to achieve desired targets • Planning: Decision-making process o Focuses on future of an organization and o How it will achieve its goals Types of Plans • Strategic o 3-5 years o Scope: Entire organization o Most complex o Impacts organization o High interdependence • Tactical o 1-2 years o Scope: Business unit o Intermediate complexity o Impacts business unit o Intermediate interdependence • Operational o Next 12 months o Scope: Department o Least complex o Impacts department o Low interdependence Organizational Levels • Corporate level o Key questions § What industries should the firm be in? § What markets should the firm be in? § In which businesses should the firm invest money? • Business level o Key questions § Who are our direct competitors? § What are their strengths/weaknesses? § What do customers value in our products/services? § What advantages do we have over competitors? • Functional level Design Thinking • Inspiration • Ideation • Implementation The Planning Process • Analyze the external environment o Forecasts § Critical tools for analysis o Environmental uncertainty § The more uncertainty, the more flexibility required § Contingency plans: identification of key factors that may affect the desired results and specifying what actions should be taken if key events change o Benchmarking § Investigating the best practices by competitors and non-competitors and the results that they produce • Analyze resources o Resources § Human capital § Financial § Technology • Set objectives • Develop action plans o Sequence and timing: Gantt charts o Accountability • Monitor outcomes Goal Setting • Attributes of effective goals o Specific o Measurable o Committed o Realistic o Time bound
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