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Chapter 2

BUSI 3103 Chapter Notes - Chapter 2: Management Control System


Department
Business
Course Code
BUSI 3103
Professor
Rumisa Shaukat
Chapter
2

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Operative Goals: designate the ends sought through the actual operating procedures of the
organization and what the organization is trying to do. Specific measurable outcomes and usually on
primary tasks an organization must perform.
Overall Performance (OPG): Profitability reflects the overall performance of for-profit organizations
Resources (OPG): pertain to the acquisition of needed material and financial resources from the
environment.
Market (OPG): relate to the market share/standing desired by the organization. The responsibility
of marketing, sales and advertising departments
Employee Development (OPG): refers to the training, promotion, safety, and growth of employees
including managers and workers.
Innovation and Change (OPG): pertain to internal flexibility and readiness to adapt to unexpected
changes in the environment
Productivity (OPG): concern the amount of output achieved from available resources.
Official Goals: the formally stated definition of business scope and outcomes the organization is
trying to achieve. Describe a values system and legitimize the organization.
Strategy: a plan for interacting with the competitive environment to achieve organizational goals.
How they get there.
Focus Strategy: organization concentrates on a specific market or buyer group. Managers need to
evaluate competitive advantage and scope. Then decide whether to use low-cost or differentiate
and broad or narrow scope.
Differentiation Strategy: Organizations attempt to distinguish their products or services from others
in the industry
Low-Cost Leadership: tries to increase market shares by emphasizing low cost compared with
competitors. Organization seeks efficient facilities, costs reductions and tight controls on production
of goods and services.
Miles and Snow 's Typology: based on the idea that managers seek to formulate strategies that will
fit well with the external environment
Prospector (MST): innovate, takes risks, seek new opportunities and grow. Suited to a dynamic
growing environment where creativity is more important.
Defender (MST): concerned with stability, hold on to current customers but does not innovate or
grow. Focus is on internal efficiency and tight control on production. Useful for a stable or declining
environment.
Analyzer (MST): tries to maintain stability while innovating on the periphery. Some products
targeted towards current customers and others targeted towards new customers in more dynamic
environments.
Reactor (MST): Respond to environmental threats and opportunities with whatever actions seem to
meet immediate needs. No long-term goal or direction.
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