FSG NOTES: CHAPTER 6 & 7 BUSINESS STRATEGY & MANAGERS AND MANAGING

A Company's goals and mission statement:

Think of a company. What are the company's goals and mission statement? Define the underlined terms as well.

Goals: objectives that the business hopes and plans to achieveMission statements: A statement of how it will achieve its purposes in the environment which it conducts business.

Example of a company: Nebraska Furniture MartGoals: meet its goals of 75%, improve efforts to make operations more efficient, increase the flow of information and products, they want to grow their businessLong-Term Goals: To develop on advanced supply-chain processMission Statement: "selling cheap and telling the truth"

What is the purpose of goal setting for a business? - provides direction, guidance, and motivation for all managers- helps firms allocate resources- helps to define corporate culture- helps managers assess performance

The Management Process:

What four activities should a manager in the management process consider? Explain each activity.

- Planning (deciding what needs to be done & how to do it)- Organizing (mobilizing and implementing)- Leading (providing guidance and teaching and motivating)- Controlling (acting to improve and setting stands to achieve)

True OR False: (Underlined words are correct answers)

1. Operation Managers are responsible for production control, inventory control, and quality control among other duties.

2. Middle Managers are responsible for implementing the decisions made by top managers.

3. Marketing Managers are responsible for getting products and services to buyers.

4. Goals can be long-term, intermediate, or short term.

5. SWOT analysis process involves assessing organization strength and weaknesses and environmental opportunities and threats.

6. Vertical Integration means owning or controlling the inputs to the firm's processes and/or the channels through which the products or services are distributed.

7. Conceptual skills is the ability to think abstract, to diagnose and analyze different situations, and see beyond the present situation.

Multiple Choice:

1. Jenna has set a goal to get 85% on her next essay this fall term. What type of goal is this an example of?

OPTIONS: long-term, short-term, specific goal, intermediateA: short-term goals - goals set for within a YEAR.

2. Wal-Mart is a leader in an industry of low cost, as its store-location costs are minimized by placing stores on low-cost land and the stores themselves are very plain. What term best describes this?

OPTIONS: Investment reduction, diversification, cost leadership, concentration strategyA: Cost Leadership - low cost leader in the industry

3. Coca-Cola's decision to increase sales in Europe by building European bottling facilities is an example of what?

OPTIONS: Tactical Planning, calculated plans, environmental analysisA: Tactical Planning

4. Volvo stress safety and apples computer stresses user-friendly products is an example of what?

OPTIONS: Diversification, differentiation strategy, market penetrationA: Differentiation Strategy - firms seeking to be unique

Decide which out of the four activities that managers engage in match each scenario.

1) "I've laid out you shirt. I've cleaned your shoes. I'll go downstairs now and iron your shorts." Organizing

2) "wash your hands, before you come to lunch." ( 5 mins later and child returns) "Did you wash your hands? show me" "Those hands aren't very clean. Go back and do it again. this time....use soap!" Controlling

3) "shake hands with your Uncle like I did." Leading

4) "Get up, get dressed, have your breakfast. Be ready to get in the car by 10 o'clock. we want to be at Granny's at 11." Planning

Short Answer: List the five basic management skills. Think of a job position and put them in order of what you think is the most important skill to have to the skill you feel is least important for the job you chose. Explain why.

1. Time Management - necessary for all jobs2. Technical Skills - accountants, factory workers; skills needed to perform specific tasks3. Human Resources - customer service, teacher4. Decision Making - principal, teacher, prof5. Conceptual Thinking - top managers ; to think abstract and see beyond the current business