Principles of Management

In management, being effective means using resources wisely and cost-effectively.

Deshi manages a popular beachfront eatery. When Deshi is setting employee schedules, assigning sections and work responsibilities, and ordering extra inventory, he is engaged in the leading function of the management process.

Juliana, a regional director for a national chain of dental clinics, is comparing the goals of the clinics in her region with their recent sales. She identifies three clinics that are underperforming, and she schedules meetings with those managers to discuss corrective action. Juliana is engaged in the controlling management function.

As a manager of a high-end jewelry design brand, Reyhan makes strategic long-term decisions about his company's overall direction. In addition, he creates the overall corporate goals, policies, and strategies. In light of these tasks, Reyhan must be a middle manager.

Breyona is a district manager who oversees several store managers in a national children's clothing retail chain. Breyona reports directly to the vice president of marketing, a member of top management. Breyona is a middle manager.

Mintzberg concluded that managers play three broad types of roles: interpersonal, analytical, and critical.

Human skills consist of the ability to think analytically, to visualize an organization as a whole, and to understand how the parts work together.

Organizations can gain a competitive advantage simply by selling products and services at a lower price than competitors.

An industrial food-processing factory has been applying the behavioral science approach to management for over 100 years. However, because that method of management is too simplistic for practical use, the factory managers should begin implementing principles of the newer and more sophisticated human relations movement, which is the most contemporary approach to management.

Data Byte Computer Repair has a clear hierarchy of authority and division of labor. The managers budget for anticipated changes in the market and they view teamwork as key to success. This is an example of a closed system.

Jake is a proponent of open systems. He takes issue with the classical viewpoint because he believes it promotes an exhausting amount of outside feedback, much of which is not credible. Based on management theory, Jake has identified a valid problem with the classical viewpoint.

A local grocer routinely develops and acquires new knowledge, and the employees communicate what they learn to other employees, so the company is able to modify its behavior to reflect what they have learned. This organization is an example of a learning organization.

Over half of younger workers believe that companies operate to meet society's needs first and their own agenda second.

The employees of a boat manufacturing facility are meeting to discuss ways to control rising costs, which are affecting their bonus (incentive pay). The employees are internal stakeholders of the factory.

The task environment of the local bowling alley consists of just two groups, customers and stockholders, who give the managers the daily tasks that the bowling alley's employees will handle.

Red Raven Resort, a successful all-inclusive resort, entered into a co-marketing arrangement with Boutique Inn, a five-star hotel chain. Both companies benefit from the new relationship. Red Raven Resort is now able to market its facility and services through Boutique Inn's marketing team, and Boutique Inn now offers customers access to an upscale resort. Boutique Inn and Red Raven Resort can be considered strategic allies.

The general environment, or macroenvironment, includes six forces: economic, utilitarian, socialization, demographic, procedural, and governmental.

Best Foods Grocery management noticed an increase in the number of ethnic minority families in its surrounding neighborhoods. One of its managers believes this is a change in sociocultural forces and requires a change in product offerings. The manager has correctly identified the force at play.

Lego committed $150 million to convert its operations entirely to renewable energy and to minimize its production and packaging waste. Lego is an example of a company acting in a socially responsible way.

Dembe is a new father and the baby is not sleeping well. Dembe comes to work looking exhausted almost every day. Emma, his manager, asks Dembe to change the monthly report so that it appears the team has met its quota for the month. Dembe agrees without putting up much of fight. Emma takes advantage of the fact that Dembe is sleep-deprived and will be more likely to engage in unethical behavior.

After the scandals at WorldCom, Tyco, Adelphia, and Enron, in which company employees lost millions of dollars and their nest eggs, U.S. companies showed less concern for corporate governance and more interest in the development of corporate social responsibility.

While in Germany, Natalia was able to communicate important information to Kevin, her business partner, by updating a shared document from her mobile device. Later that day, Kevin texted Natalia about how helpful it was that she was able to work on the document while she was traveling in Europe. The “global village" refers to this “shrinking” of time and space as air travel and the electronic media have made it easier for people around the globe to communicate with one another.

Mariam, a teacher, is interested in helping children in other countries learn how to read. She has formed an international nonprofit organization, Read to the World, whose employees travel to South America to donate books and work in schools as tutors. Read to the World is an example of a multinational corporation.

Darius, a manager at the Tokyo, Japan, store of an American-owned clothing company, understands the differences and similarities between American and Japanese customers, customs, culture, and practices. As a result, Darius uses his understanding of Japanese culture, tastes, and business practices to help him market his products to Japanese customers and he uses his understanding of American culture to sell his products to Americans who are visiting Japan. Darius is an example of a geocentric manager.

Veronica, an assistant store manager of Home Imports, was talking to Connor, the district manager, about Jasmine, the unpopular store manager. Veronica said, “I believe I speak for other managers and employees when I say that Jasmine acts like she knows it all. We all feel that Jasmine does not listen to any of us. She always thinks her way is right and does not want to consider any other opinions.” If Veronica's statements are true, Jasmine is an example of a geocentric manager.

In 2019, the world's largest economy was the United States according to WEF (World Economic Forum)

Today's global world is different than the one we had before in terms of speed of communication, technological advancements, economic globalization, cultural exchange and political power shift.

Multi Domestic Corporations (MDCs) prioritize local responsiveness over global integrity.

A company may enter into a strategic alliance to create a new company.

Jacob travels to China to negotiate a real estate transaction on behalf of his U.S. firm. He arrives in Shanghai and quickly hands his Chinese counterparts a contract to review and sign. Jacob believes that though the United States has more of a low-context culture and China has more of a high-context culture, the use of contracts is standard around the world. Jacob's actions shouldn't impact the contract negotiations.

The basic idea of a business that explains which customer needs will be met, how the functions and operations will be organized, and how money will flow in and out is called a business model.

Cost leadership strategy requires strong research capabilities and strong marketing reserach.

High costs and imitation are some of the disadvantages of differentiation strategy.

A differentiation strategy offers a narrow segment something unique.

When Zappos.com says it aims “to simultaneously deliver happiness to customers, employees, vendors, shareholders, and the community,” it is stating its code of ethics.

Romina, the director of marketing for a global company, is planning the contributions she and her department will make to the organization over the next 24 months. This type of planning is called operational planning.

Scarlett is a store manager for a national crafts & fabrics retailer. Yesterday, the district manager delivered this year's tactical plan to Scarlett. Now, Scarlett will meet with her department managers to plan how to implement the specific tasks outlined in the tactical plan for the next year. Scarlett is engaged in operational planning.

"Increase market share by 4% a year for each of the next five years" is an example of a strategic goal.

Excellent strategic planning is enough to achieve a competitive advantage.

A question for business level strategy would be “How should the business compete in its market?".

Jamir's Diner is a popular café that specializes in home-cooked meals, friendly service, and a menu that contains vegan and vegetarian dishes (menu items that no other restaurant in the area offers). Jamir's Diner is engaging in strategic positioning by offering few needs of broad customers.

A transportation company acquires food business. This is an example of vertical integration.

The owners of a home security company recently formulated a strategic plan that focuses on using upgraded technology. The next step in their strategic management process is to implement the strategy.

Mateo, a florist, recently learned about strategic management and wants to implement this process for his flower shop. Mateo should begin by establishing mission, vision, and values statements.

Now that her company's strategy is implemented, Maria is monitoring progress and taking corrective action. Maria is at the strategic management step that has her assessing the current reality.

According to Porter, strategy is about being better.

Violet's Haberdashery is a hat and cap manufacturer that has been in business for over 100 years. Violet's markets very high-quality stylish headwear, many of which cost more than $1,000 each, to fashionistas globally, always maintaining a reputation of superior value in its narrow market. Violet's is using a cost-focus strategy.

It is generally agreed that the role of strategy is to achieve competitive advantage.