WGU C483 (Principles of Management) Final Exam Questions With Answers | Latest

Describe strategic planning Making decisions about the organization's long-term goals and strategies Describe strategic goals major target long-term goals that are effective and efficient describe strategy pattern of actions and resource allocations designed to achieve the goals of the organization. 1. Where will we be active? 2. How will we get there (increase sales or acquire another company)? 3. How will we win the in the marketplace (keep prices low or offer the best service)? 4. how fast will we move in what sequence will we make the changes? 5.How will we obtain financial returns (low cost or premium prices)? *In setting a strategy, managers try to match the organization's skills and resources to the opportunities found in the external environment. Explain what a Core Competency/ Capability means for an organization. Core Capability: (or competence) when resources are valuable, rare, inimitable, and organized. Something company does especially well relative to its competitors. (EX: Honda small engine) Core competencies typically refers to a set of skills or expertise in some activity rather than physical or financial assets. Porter's 5 Model Porter's 5 Model is a method used to help managers analyze the competitive environment and adapt to or influence the nature of their competition. Describe Porter's 5 Model and how it is used in the strategic planning process. 1. understand the competitive environment, organization's must identify competitors. 2. analyze how to compete. 3. new entrants (Netflix took out blockbuster) 4. substitutes and complements (coke for starbucks; starbucks complement is a cake pop) 5. suppliers: switching costs ( fixed costs buyers face when they change suppliers), supply chain management ( managing of the network of facilities and people that obtain materials from outside the organization, transform them into products, and distribute them to customers.) 6. customers: without customers a company wont survive (final customer ex: mcdonalds) (Intermediate customer ex: customer who purchases raw materials or wholesale products before selling them) Explain a SWOT Analysis 1. SWOT analysis: assessment of the organization's strengths, weaknesses, opportunities, and threats 2. SWOT analysis helps managers summarize the relevant important facts from their external and internal analysis SWOT analysis strengths and weaknesses -strength and weaknesses: interal recources EX: organization's strengths might include skilled management, positive cash flow, and wellknown highly regarded brands. Weakness might be lack of spare production capacity and the absence of reliable suppliers SWOT analysis opportunities and threats -SWOT analysis helps managers summarize the relevant, important fats from their external and internal analysis. -they can identify the primary and secondary strategic issues their organization faces. The managers then formulate a strategy that will build on the SWOT analysis to take advantage of available opportunities by capitalizing on the organization's strengths, neutralizing its weakness, and countering potential threats. How SWOT analysis helps managers: -SWOT analysis helps managers summarize the relevant, important fats from their external and internal analysis. -they can identify the primary and secondary strategic issues their organization faces. The managers then formulate a strategy that will build on the SWOT analysis to take advantage of available opportunities by capitalizing on the organization's strengths, neutralizing its weakness, and countering potential threats. Name the 5 types of corporate strategies that organizations use 1. corportate strategy 2. concentration strategy 3. vertical integration strategy 4. concentric diversification strategy 5. conglomerate diversification strategy define corporate strategy identifies the set of businesses, markets, or industries in which the organization competes and the organization competes and the distribution of resources among those businesses shows basic alternatives for a corporate strategy, ranging from very specialized to highly diverse Concentration Strategy focuses on a single business competing in a single industry vertical integration strategy involves expanding the domain of the organizatoin into supply channel or to distributors concentric diversification strategy involves moving into a new business that are related to the company's original core business conglomerate diversification strategy a corporate strategy that invovles expansioin into unrelated businesses Name the two kinds of business strategies that companies can use to gain competitive advantage 1. Low-cost strategy 2. Differentiation Strategy Define Low-cost strategy business attempt to be efficient and offer a standard, no-frills product ex: walmart define differentiation strategy comapnies attempt to be unique in its industry or market segment along some dimensions that customers value. this unique or differentiated position within the industry often is based on high product quality, excellent marketing and distribution, or superior service define business strategy the major actions by which an organization builds and strengthens its competitive position in the marketplace Name the 6 steps in the strategic planning process 1. Establishment of mission, vision and goals 2. analysis of external opportunities and threats 3. analysis of internal strengths and weaknesses 4. SWOT analysis and strategy formulation 5. strategy implentation 6. strategic control Describe the first step in the basic planning process (Establishment of mission, vision, goals) mission: clean and concise expression of the basic purpose of the orgnization; it describes what the orgnization does, for whom it does it, its basic good or service and its value ex: mcdonalds "To be our customer's favorite place and way to eat." strategic vision: the long-term direction and strategic intent of a company Describe the 2nd step in the planning process (analysis of external opportunities and threats) groups of individuals who affect and are affected by the achievement of the organization's missions, goals and strategies ex: buyers, suppliers, competitors, so on describe the third step analysis of internal strengths and weaknesses resources and core capabilities: resources input to production that can be accumulated over time to enhance performance of a firm tangible assets: real estate intangible assets: company reputation example: Disney describe step 4 SWOT comparison of strengths, weaknesses, opportunities, and threats that helps executives formulate strategy describe step 5 strategy implementation 1. define strategic tasks 2. asses organization capabilities 3. develop an implementation agenda 4. create an implementation plan describe step 6 strategic control a system designed to support managers in evaluating the organization's progress regarding its strategy and when discrepancies exist, taking correctice action Define Value Chain The sequence of activities that flow from the raw materials to the delivery of a good service with additional value created at each step. Each step in the chain adds value to the product or service. List the steps in the value chain. 1. Research and development focus on innovation and new products. 2. Inbound logistics receive and store raw materials and distribute them to operations.. 3. operations transform the raw materials into final product. 4. outbound logistics warehouses the product and handles its distrubtion 5. marketing and sales identifies customer requirements and gets customers to purchase the product 6. service offers customer support, such as repair, after the item has been bought. What is the main difference between mechanistic and organic organizational structure? Organic is less rigid and emphasizes flexbility. What is mechanistic organizational structure? 1. type of bureaucracy 2. boss is number one and gives orders, then goes down chain of command What is organic organizational structure? 1. jobholders have broader responsbilities that change as the need arises. 2. communication occurs through the advice and information rather than through orders and instructions 3. decision making influence are more decentralized and informal 4. expertise is highly valued 5. jobholders rely more heavily on judgement than on rules 6. obedience to authority is less important than commitment to the organization's goals Define Total Quality Management (TQM) way of managing in which everyone is committed to continuous improvement of hir or her part of the operation How is the total quality management system implementing one benefits an organization? TQM is a comprhensive approach to improving product quality and customer satisfaction. is it s astrong orientation to customers. it also reorients managers toward involving people across departments improving all aspects of the business. continuous improvemnt requires integrative mechanisms that facilitate group problem solving information sharing and seperate stages and functions. What is the statistical important of TQM? to analyze the causes of the product defects using six sigma quality What is the Deming's 14 points? Edwards Deming created an approach to managed that demands understanding of the process--- delicate interaction of raw materials, machines, and people that determines productivity, quality, and competitive advantage. Name the 14 steps of Deming's 14 points 1. constancy of purpose 2. adopt the new philsophy 3. cease dependence on mass inspection 4. end the practice of awarding business on price tag alone 5. improve constantly 6. institute training and retraining 7. institute leadership 8. safe to ask questions 9. team work 10. be a business of methods not words ( no slogans, etc.) 11. eliminate numerical quotas 12. allow spotaneity 13. people are assets 14. provide a structure that enables quality What is the role of six sigma quality? to reduce defects in all organization processes--- not just product defects but anything tha tmay result in customer dissatisfaction Define quality assurance? complete system to assure the quality of products or services. it is not only a process, but a complete system including also control. it is a way of management define quality control? just measures and determines the quality level of products or services. it is a process itself describe what a quality audit is and entails? periodic, independent, and documented examination and verification of activities, records, processes, and other elements of a quality standard such as ISO 9000. any failure in their proper implementation may be published publicly and may lead to a revocation of quality certification. also called conformity assesmt or quality system audit. what is ISO 9001? A list of good quality management pracitice requirements. 1. customer focus 2. leadership 3. involvment of people 4. process approach 5. system approach to management 6. continual improvement 7. factual approach to decision making 8. mutually beneficial supplier relationships what is Dr. Ohmae's strategic triangle? Define Dr. Ohmae's strategic triangle Managers need to balance triangle and successful organizations use their strengths to create value by meeting customer requirements better than competitors do. Define Reengineering The principle idea of reeingeering is to revolutionize key organizational systems and processes to answer this question: "If you were the customer, how wouldyou like us to operate?" The answer is to form a vision for how the organization should run and then decisions are made and actions are taken to make organization operate like the vision. Processes such as product development, order fullfillment, customer service, inventory management, billing, and production are redesigned from scratch as if the organization were brand new and just starting out. Describe how organizations use reengineering it cuts costs. often requires a fundamental change iin the way the parts of the organization work together. ex: P&G tour down and rebuilt every activity that contributed to its high costs. Entrepreneurial Strategy Matrix How is the entrepreneurial strategy matrix use? to help entrepreneurs think about their ventures and decide whether they suit their particular objectives. it helps identify effective and ineffective strategies. it can also help entrepreneurs remember a useful point: successful companies do not always require a cutting-edge techonology or an exciting new product. even companies offering the most mundane products-- the type that might reside in the lower-left cell--- can gain competitive advantage by doing basic things differently from and better than competitors Identify the common characteristics that entrepreneurs possess commitment and determination; leadership; opportunity; tolerance of risk, ambiguity, uncertainty; creativity; selfreliance; and adbility to adapt; motivation to excel Describe the common reasons behind entrepreneurial success and failure 1. Risk: know the risk and anticipate setbacks 2. The role of the economic enviroment: economic cycles quickly change 3. Funds must be used appropriately 4. Records must be kept accurately 5. Do not neglect 6. Mortality and succession: the founder must have someone to take over after them that has experience and knowledge