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Chapter 6

MGTA01H3 Chapter Notes - Chapter 6: Telephone Directory, Vertical Integration, Walmart


Department
Management (MGT)
Course Code
MGTA01H3
Professor
Ingrid L.Stefanovic
Chapter
6

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MGTA03 / 01
Chapter 6: Business Strategies
- All kinds of organization needs managers that perform tasks such as developing strategic
and tactical plans, analyze their competitive environments and plan, organize, direct and
control day-to-day operations
- Managers could be found in charities, churches, social organizations, government
agencies, and educational institutions
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resources
- The starting point in effective management is to set goals which are objectives that a
business hopes and plans to achieve
Setting Goals
- Goals are performance targets, the means by which organizations and their managers
measure success or failure at every level
The Purpose of Goal Setting
- The four main purposes in organizational goal setting are:
x Goal setting provides direction, guidance, and motivation for all managers.
If managers know precisely where the company is headed, there is less potential
for error in the different units of the company.
x Goal setting helps firms allocate resources. Areas that are expected to grow will
get first priority. Companies will allocate more resources to new projects with
large sales potential than mature products with established but stagnant sales
potential
x Goal setting helps to define corporate culture. When a company strives to push
each of their divisions to number one or number two in its industry, the result is a
competitive, often stressful, environment and a culture that rewards success and
has little tolerance for failure.
x Goal setting helps managers assess performance. If a company sets a goal to
increase sales by 10 percent in a given year, managers in units who attain or
exceed the goal can be rewarded but managers who do not will be compensated
accordingly
Kinds of Goals
- Every company or enterprise has a purpose or a reason for being
- Most enterprises will also have a mission statement which states how it will achieve its
purpose in the environment in which it conducts business
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world leader in helping communicate and manage information)
- Two business firms may have the same purpose but very different mission statements
(e.g. Timex ± reliable & affordable / Rolex ± high quality, high priced fashion watches)
Who Are Managers (pg. 89)
Setting Goals and Formulating Strategy (pg. 89 ± 95)
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