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Lecture

Chapter 6 & 7


Department
Management (MGT)
Course Code
MGTA01H3
Professor
Ingrid L.Stefanovic

Page:
of 4
Chapter 6 & 7 .ppt / 01
Laurence, Hugh
MGTA03, Lec. 03
Managing the Business Enterprise
What Does a Manager Do?
o Business Strategy
o Program for
Defining goals for the business
Defining a way of meeting the goals
o Creating and implementing a strategy is one of the key activities of business
managers
o Goals of the Business
o Step back from day ± to ± day operations
o Ask
Where should this business be at some time in the future?
x Short term goals ± 1 year or less
x Medium term goals ± 1 to 5 years
x Long term goals ± 5 years or more
o The longer the term, the more senior the manager developing the strategy
o Provide a benchmark against which to assess performance
o Help managers decide how to allocate resources
o Provide a focus for the efforts of all employees
o Goals will become part of the corporate culture
o Strategies
o Where do I want to be at the end of the period I am considering?
o Where am I now?
o How do I get to where I want to be?
o Developing a strategy
Assessing how the goal applies in a particular context
x What is the specific goal
x What is the larger context or environment, and how does it offer
opportunities and challenges
x What assets does the business have in this environment
x What are the challenges of the business in this environment
What is the plan for reaching the specific goal?
o Mission statement
A general goal that applies to all specific strategies
Everything we do is aimed at realizing the mission statement
o Levels of strategy ± specific goals
High or strategic level
Middle or tactical level
Low or operational level
www.notesolution.com
Chapter 6 & 7 .ppt / 02
o Mission Statements
o Provides a common purpose and direction for all activities
o Day to day operations intrude on longer ± term vision
o The mission statement keeps people focus on the larger goals
o Needs to be communicated and reinforced to be effective
o What is this organization
o What does this organization aspire to be
o How is this organization different from others
o How can this organization evaluate our current and prospective activites
o Guides current activity
o Provides a higher level goal
o Helps shape attitudes
o K ± Mart Mission
o To proYLGHVXSHULRUYDOXHDQGTXDOLW\ZLWKORZSULFHVWRERWKWKHFRPSDQ\¶V
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operator of super drugstores, warehouse home improvement centres and
bookstores
o Strategy
o Specific plans in a particular context for realizing goals
o Strategy ± higher level goals
Dominate the market through low cost production and high volume sales
Dominate a portion of the market through unique value to that part of the
market
Offer a specialty product of high quality to a niche market
o Cost leadership
Wal ± Mart
o Production differentiation
Apple ± user friendly
Mercedes ± high quality
Volvo ± safety
o Focus
Martin Guitar ± the best you can buy
o Tactics ± middle level goals
To offer a high quality product for a niche market, we need to
x Ensure we produce high quality
x Find and advertise the niche market
x Provide extra service to support our products
o Operations ± lower levels goals
To ensure we have high quality
x Train our staff
x Inspect and test each product carefully
x Ensure we ship to the customer successfully
o Personal strategy
www.notesolution.com
Chapter 6 & 7 .ppt / 03
Where do you want to be in 5 years?
x What are 3 things you need to do to achieve that goal?
x What do you need to do this year?
x What do you need to do today?
o Management
o Process of planning, organizing, leading and controlling the resources of a
business so that goals are achieved
o Planning
Determining what needs to be done
Determining the best way to do what needs to be done
o Organizing
Mobilizing the necessary resources
Settling up a structure that gets the job done
o Leading
Guiding and motivating employees to realize the plan and achieve the
goals
o Controlling
Monitoring performance to achieve goals
Taking necessary steps to improve performance
Modifying the operations and tactics to achieve goals
o Levels of Management in a Hierarchical Organization
o Some businesses have many levels of management
o Various management tasks are often apportioned to different levels of
management
o Top Level Managers
Set policies
Formulate strategies
Ratify decisions
Change some decisions to reset direction
o Middle Managers
Implement strategies, polices and decisions
May develop tactics and operations to achieve a strategy
o First ± line Managers
Work with employees
Supervise day to day operations
o Management Skills
o Technical skills
o Human relations skills
o Conceptual skills
o Decision ± making skills
o Time management skills
www.notesolution.com