COMM 305 Study Guide - Research And Development, Ntime, Cash Flow
Document Summary
Created national and international marketing distribution organizations. Recruited teams of managers: management hierarchy: Lower and middle managers: coordinate products though production and distribution. Top managers: coordinate and monitor current operations and to plan and. Allocate resources for future activities: research & development: to improve products and processes. Innovation and strategy is more important than price: diversification, related & unrelated: Unrelated diversification: when managers acquire businesses in which they have few if any organizational capabilities to give them a competitive edge (ignore logic of managerial enterprise) This leads to: separation of top vs middle managers: Top managers have little knowledge of or experience with the technological processes and markets of the new acquisitions. Overload in decision making at the corporate office: stock market pressures: loose profits and market share if: Entrepreneurial enterprises fail to become managerial enterprises. Managerial enterprises fail to maintain their competitive capabilities: short term thinking: making a quick buck and trying to gain competitive edge through unrelated diversification.
