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Chapter 6

Chapter 6 - Business Strategy, Chapter 7 - Managers and Managing, Chapter 8 - Organizing the Business Enterprise, Chapter 9 - Managing Human Resources, Chapter 10 - Motivating and Leading Employees

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Department
Management (MGT)
Course Code
MGTA01H3
Professor
Chris Bovaird

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Chapter 6 - Business Strategy
Goals - Objectives that a business hopes and plans to achieve
Setting Goals
Purpose of setting Goals:
1. Goal setting provides direction, guidance, and motivation for all managers
2. Goal setting helps firms allocate resources
3. Goal setting helps to define corporate culture
4. Goal setting helps managers assess performance
Kinds of Goals
Mission Statements - An organization's statement of how it will achieve its purpose in the environment in which it
conducts its business
Long term goals - Goals set for extended periods of time, typically five years or more
Intermediate Goals - Goals set for a period of one to five years
Short term Goals - Goals set for the very near future, less than one year
Strategy Formulation
- Creation of a broad program for defining and meeting an organization's goals
Strategic Goals - Long-term goals derived directly from a firm's mission statement
SWOT Analysis - Identifications and analysis of strength, weaknesses, opportunities and threats
Environmental Analysis - the process of scanning the environmental for threats and opportunities
Organizational Analysis - The process of analyzing a firm's strengths and weaknesses
Hierarchy of Plans
- Strategic plans - reflect decisions about resources allocations, company priorities, and steps needed to
meet strategic goals
- Tactical Plans - Generally, short range plans concerned with implementing specific aspects of a
company's strategic plans
- Operational Plans - setting short term targets for daily, weekly, or monthly performance
Levels of Strategies
- Corporate level strategy - Identifies the various businesses that a company will be in, and how these
businesses will relate to each other
- Concentration - involves focussing the company on one product of product line
- Growth
- Market Penetration - Boosting sales of present products by more aggressive selling in the
firm's current markets
- Product development - Developing improved products for current markets
- Geographic expansion - Expanding operations in new geographic areas or countries
- Integration
- Horizontal Integration - Acquiring control of competitors in the same or similar markets
- Vertical Integration - Owning or controlling the inputs to the firm's process and or the
channels through which the products or services are distributed
- Diversification - Expanding into related or unrelated products or market segments
- Investment Reduction -reducing the company's investment in one or more of its lines of business
- Business-level (Competitive) strategy - Identifies the ways a business will compete in its chosen line of
products or services
- Cost Leadership - becoming the low cost leader in an industry
- Differentiation - A firm seeks to be unique in its industry in some what that is valued by buyers
- Focus - selecting a market segment and serving the customers in that market niche better than
competitors
- Functional Strategies - Identify the basic courses of action that each department in the firm will pursue so
that if contributes to the attainment of the business's overall goals
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Chapter 7 - Managers and Managing
The Management Process
Management - The process of planning, organizing, leading and controlling a business's financial, physical,
human, and information resources in order to achieve its goals
Planning - That portion of a manger's job concerned with determining what the business needs to do and the best
way to achieve it.
- Determine the firm's goals
- Develop a comprehensive strategy for achieving these goals
- Design a tactical and operational plans for implementing the strategy
Organizing - That portion of a manger's job concerned with mobilizing the necessary resources to complete a
particular task
Leading - aka Directing, That portion of a manger's job concerned with guiding and motivating employees to meet
the firm's objectives
Controlling - That portion of a manger's job concerned with monitoring the firm's performance and, if necessary,
acting to bring it in line with the firm's goals
Types of Managers
- Levels of Management
Senior Managers - Those Managers responsible for a firm's overall performance and effectiveness and for
developing long range plans for the company
- Includes Presidents, Vice Presidents, CEO, CFO etc
Middle Managers - Those managers responsible for implementing the decisions made by top managers
- Includes Plant Manager, operations manager, division manager etc
First Line Managers - Those managers responsible for supervising the work of employees
- Includes Supervisors, office manager, and group leader
- Areas of Management
Marketing Managers
- Marketing includes the development, pricing, promotion, and distribution of a product or service
- Responsible for getting products and services to buyers. Important for consumer products
Financial Managers
- Responsible for a firm's finances, investments, and accounting
Operations Managers
- Operations are the systems by which it creates goods and services
- responsible for production control, inventory control, and quality control among other duties
Human Resource Managers
- Provides Assistance to other managers when they are hiring employees, training them, evaluating their
performances, and determining their compensation level
Information Managers
- Responsible for designing and implementing various systems to gather, process, and disseminate
information
Other Managers
- such as specialized managers, Public relations manager etc
Basic Management Skills
Technical Skills - Skills associated with performing specialized tasks within a firm
- ie. animator's ability to draw, accountant's ability to audit a company's records
Human Relations Skills - Skills in understanding and getting along with people
Conceptual Skills - Abilities to think in the abstract, diagnose and analyze different situations, and see beyond the
present situation
- Help managers see new market opportunities and threats.
- help managers analyze the probable outcomes of their decisions
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Decision Making Skills - skills in defining problems and selecting the best courses of action
1. Define the problem, gather facts, and identify alternative solutions
2. Evaluate each alternative and select the best one
3. Implement the chosen alternative, periodically following up and evaluating the effectiveness of that
choice
Time Management Skills - Skills associated with the productive use of time
Four Leading causes of wasted time:
- Paperwork. Most are routine, and managers should learn to prioritize
- Telephone. having a secretary screen all calls and have her prioritize the important ones
- Meetings. the person handling the meeting should have an agenda, and stay on time
- Email.
Chapter 8 - Organizing the Business Enterprise
Organizational Structure - The specification of the jobs to be done within a business and how those jobs relate to
one another
Organization Charts - A physical depiction of the company's structure showing employee titles and their
relationship to one another
Chain of Command - Reporting relationships within a business; the flow of decision making power in a firm
The Building Blocks of Organizational Structure
Specialization - determining who will do what
- Happens when a firm grows bigger, as one person cannot do everything themselves.
Job Specialization - The process of identifying the specific jobs that need to be done and designating the
people who will perform them.
Departmentalization - The process of grouping jobs into logical units
- control and coordination are narrowed and made easier
- Allows the firm to treat a department as a profit center
- Profit Center - A separate company unit responsible for its own costs and profits
- Departmentalization may occur along functional, customer, product, geographic or process lines
Establishing the Decision Making Hierarchy
Development of this hierarchy generally results from a 3 step process
1. Assigning tasks
Responsibility - The duty to perform an assigned task
Authority - The power to make the decisions necessary to complete a task
2. Performing Tasks
- issues occur when appropriate levels of responsibility and authority are unclear between managers and
subordinates: delegation, and accountability
Delegation - Assignment of a task, a responsibility, or authority by a manager to a subordinate
Accounting - Liability of subordinates for accomplishing tasks assigned by managers
Fear of Delegating
- Four things to keep in mind while delegating:
- Decide on the nature of the work to be done
- Match the job with the skills of subordinates
- Make sure the person chosen understands the objectives he or she is supposed to achieve
- Make sure subordinates have the time and training necessary to do the task
- Experts pinpoint certain indicators that mangers are having trouble delegating effectively
- the feeling the employees can never do anything as well as they can
- the fear that something will go wrong if someone else takes over a job
- the lack of time for long range planning because they are bogged won in day to day operations
- the sense of being in the dark about industry trends and competitive products because of the time
they devote to day to day operations
- Reasons why managers do not delegate
- the fear that subordinates don't really know how to do the job
- the fear that a subordinate might "show the manger up" in front of others by doing a superb job
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Description
Chapter 6 - Business Strategy Goals - Objectives that a business hopes and plans to achieve Setting Goals Purpose of setting Goals: 1. Goal setting provides direction, guidance, and motivation for all managers 2. Goal setting helps firms allocate resources 3. Goal setting helps to define corporate culture 4. Goal setting helps managers assess performance Kinds of Goals Mission Statements - An organizations statement of how it will achieve its purpose in the environment in which it conducts its business Long term goals - Goals set for extended periods of time, typically five years or more Intermediate Goals - Goals set for a period of one to five years Short term Goals - Goals set for the very near future, less than one year Strategy Formulation - Creation of a broad program for defining and meeting an organizations goals Strategic Goals - Long-term goals derived directly from a firms mission statement SWOT Analysis - Identifications and analysis of strength, weaknesses, opportunities and threats Environmental Analysis - the process of scanning the environmental for threats and opportunities Organizational Analysis - The process of analyzing a firms strengths and weaknesses Hierarchy of Plans - Strategic plans - reflect decisions about resources allocations, company priorities, and steps needed to meet strategic goals - Tactical Plans - Generally, short range plans concerned with implementing specific aspects of a companys strategic plans - Operational Plans - setting short term targets for daily, weekly, or monthly performance Levels of Strategies - Corporate level strategy - Identifies the various businesses that a company will be in, and how these businesses will relate to each other - Concentration - involves focussing the company on one product of product line - Growth - Market Penetration - Boosting sales of present products by more aggressive selling in the firms current markets - Product development - Developing improved products for current markets - Geographic expansion - Expanding operations in new geographic areas or countries - Integration - Horizontal Integration - Acquiring control of competitors in the same or similar markets - Vertical Integration - Owning or controlling the inputs to the firms process and or the channels through which the products or services are distributed - Diversification - Expanding into related or unrelated products or market segments - Investment Reduction -reducing the companysinvestment in one or more of its lines of business - Business-level (Competitive) strategy - Identifies the ways a business will compete in its chosen line of products or services - Cost Leadership - becoming the low cost leader in an industry - Differentiation - A firm seeks to be unique in its industry in some what that is valued by buyers - Focus - selecting a market segment and serving the customers in that market niche better than competitors - Functional Strategies - Identify the basic courses of action that each department in the firm will pursue so that if contributes to the attainment of the businesss overall goals www.notesolution.com
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