FINAL ENTERPRISE NOTES v2 PDF

Sample questions exam 'The Enterprise' (BAC 1 - version 2024-2025) 1. How can we define 'Management' and the 'Management Process'? We can understand management as the management of a company or organization. Management - the process of getting something done, effectively and efficiently, by and...

Sample questions exam 'The Enterprise' (BAC 1 - version 2024-2025) 1. How can we define 'Management' and the 'Management Process'? We can understand management as the management of a company or organization. Management - the process of getting something done, effectively and efficiently, by and with other people. The aim of management is to (re) formulate and achieve the business objectives in the given context. Efficient means doing things right way. - optimal use of people and resources - refers to the relationship between input and output - striving for minimal costs Effective means doing the right things. - goals that have been set are also achieved (One can be effective without being efficient, usually means spending more time/ using up more resources.) Management strives to limit waste by utilizing resources (high efficiency) and optimize the ultimate result (high effectiveness). We can divide the management process into 4 functions that are codependent: 1. Planning: set goals, develop strategy and develop subplans to coordinate activities. 2. Organizing: determine what, when, and how tasks need to be performed and by whom. 3. Leading: motivate and direct all involved parties, resolve conflicts. 4. Controlling: monitor to ensure activities are accomplished as planned. 2. Discuss the difference between an 'Entrepreneur' and an 'Intrapreneur'. Entrepreneur - status: owns a company - risk: the only option is success, takes major risks - benefit: all the benefits goes to them - resources: resources is available at self-expenses - professional development: professional development needs to be self-funded - Their actions that are directed at accepting risks to offer products or services, usually with the intention to make ‘profits’. Intrapreneur - status: works at a company - risk: less risk - benefit: most benefits go to the company, at most can get a raise  - resources: more resources available, the company makes them available - professional development: professional development is funded by the company Common for both - play leadership roles - search for new/ better/ different ways to use the available assets and ideas of people - strive to exploit possibilities - look for ways to innovate - their goal is the growth 3. Briefly discuss the three dimensions of entrepreneurship. Business entrepreneurship: we are talking about entrepreneurs that want to make profit out of their idea, they innovate and take risks. eg. Ford model T - first implementation of an assembly line in car manufacturing Social entrepreneurship: profit it also a goal, but it’s not the main point of focus. A social entrepreneur is a person that tries to solve social problems using entrepreneurial skills. eg. Mohamed Yunus and his microloan programs Personal entrepreneurship/ Intrapreneur: tries to innovate with an idea or a project but is an already stablished employee in a company. 4. What are the main skills needed at the different management levels? Explain. Top management Conceptual skills > Interpersonal or social skills > Technical Skills High management Interpersonal or social skills >= Conceptual skills and Technical Skills Low management Technical Skills > Conceptual skills and Interpersonal or social skills Technical skills: Expertise in and knowledge of a specialist field. Interpersonal or social skills: The ability to collaborate well with others, both with individuals and as a team. Conceptual skills: The ability to coordinate and integrate all interests and activities of an organization. See the organization as a whole Understand the relationship between the different units Visualize how the organization fits into the environment 5. What are the 'Stakeholders' of a company? Discuss + give some examples. Stakeholders - several interested parties who interact with the organization and who influence the functioning of the organization. External customers: iPhone users suppliers: autonomous assembly machine suppliers: World; chip supplier: TSMC competitors: Samsung, Huawei, Oppo banks: HSBC, JP Morgan government: United States Government professional groups: semiconductor industry association (SIA) neighbors: neighborhood residence, google, Netflix, Facebook in the neighbor interest group: green peace unions: Communications Workers of America (CWA) Internal shareholder employees 6. Why is it so important for an organization to have insight into the composition of the stakeholders ? An organization needs insight into its stakeholders to align strategies, manage risks, communicate effectively, and optimize resources. Understanding stakeholders helps resolve conflicts, build trust, and make sustainable decisions that balance profitability and social responsibility, ensuring long-term success. 7. What is an ‘Organization’? What are the common characteristics of organizations? Explain. Organization - a partnership between people, where a certain common goal / mission is pursued. This applies to both for-profit and non-profit organizations where managers work. All organizations have common characteristics: - objective/mission (something you want to achieve, eg. profit, etc.) - people (employees working together to accomplish the mission) - structure (somebody needs to coordinate the people so that the mission gets accomplished) 8. Discuss the horizontal / vertical organization layout. Horizontal - how a company splits up goals and tasks according to logical functional groups and departments in the structure - eg. FGPM (function, geographic, product, market) or FGMT-SBU (function, geography, matrix, team, and strategic business unit structure). Vertical - determines the hierarchy levels, command, and decisional structure.  - companies tend to have a flatter structure nowadays The horizontal and vertical organization format provides a coordinate system in helping build an organizational structure. The basis can a matrix, project, team organization or a hybrid. 9. Briefly discuss the Ashridge 'Mission Model'. The Ashridge mission model consists of four parts and is intended to give a clear picture of the organization. In short, this model helps to create/ check the mission statement of an organization. Goal: what does the company want to achieve, why does it exist? Values: beliefs and moral principles behind the culture of the organization Behavioral norms: translation of goal and strategy into policy and guidelines for daily behavior Strategy: determines the path along which the goal must be achieved. 10. What is meant by a 'Matrix Organization'? Matrix Organization - a type of an organization structure. It makes use of the principle of dual management, both the functional leader and the project leader receive equivalent control. Useful when a company frequently has to deal with projects or offering goods and services where the input is required from different departments or markets. Advantages dual management can work well if handled properly collaboration opportunities / sharing knowledge flexibility Disadvantages complex construction can be problematic if poor communication danger of conflicting priorities 11. Give two motivation theories and discuss them briefly. Herzberg’s 2-factor theory - Distinguishes two groups of factors that play different roles in motivation and job satisfaction: motivational factors (internal factors) and hygiene factors (external factors, bottom line). - Hygiene factors or dissatisfiers can contribute to job dissatisfaction if they are not met. If these factors are met, a neutral state is created (eg. no satisfaction). - Motivating factors or satisfiers can directly contribute to job satisfaction. If they are not working, a neutral state (eg. no dissatisfaction) is achieved.  - The motivators can only motivate people to perform better when sufficient attention has been given to the hygiene factors. Maslow's Pyramid of Needs - States that five categories of human needs dictate an individual's behavior that are classified in a pyramid in which the upper layers can only be realized once the bottom layers are reached and fulfilled. - Layers from bottom to top: o Physiological: physiological needs that allow one to survive. o Security: job security - feeling of adequate security in balancing the essential economical needs. o Social acceptance: relationships between colleagues, friends, groups, family and partners. o Rating: rating in a company and recognition from clients, colleagues, and supervisors. o Self-realization: considers oneself a successful person and feels that has what he needs to be happy. One loves to learn new things all the time and cares a lot about their personal development. 12. How do we define ‘Innovation’? Why is ‘Innovation’ so important? Innovation - the carrying out of new combinations, improvement, or spread, that include the introduction of new goods, new or optimized methods of production, the opening of new markets, the conquest or improvement of new sources of supply and the carrying out of a new organization of any industry. Importance of innovation can be seen in how the society can then move forward with more effectiveness and efficiency that makes the future easier and thus free up our time expenditure. 13. What types of decisions should be made within a company? How do you place these decisions within the management pyramid (Anthony's Triangle)? Anthony’s triangle - describes the levels in the organization in analogy of a pyramid. A pyramid from top to down is categorized by three functions and into four levels. We can analog such category method to decision making for a survival of company. Example: Samsung Strategy For a company to survive and profit, it needs a purpose or goal, therefore it needs a corresponding comprehensive strategy for long term (>3 years). For example: Samsung aims to be the top semiconductor foundry and the “Apple” in the microelectronic industry in the incoming five to ten years, this is the goal setting made by the top managers. Relative long-term strategy such as making a strategical plan of what, when, where, why, how, and which direction the company needs to take in order to success. Tactics As we can see that the strategy is of a giant conceptual goal where the goals still need to be break down into classes of sub-plans in order to execute them. This is where the tactical middle and first-line managers come in. (1-5 year decisions) For example: In responds to long-term strategy, in order to achieve the company’s goal, the tactical middle managers need to contemplate about what direction their departments needs to take in order to match the company’s goal, what sub-tasks and plans needs to be done and make, what transformation their departments need to undergo, what cross-functional cooperate needs to kick off. As for first-line managers, they have to contemplate about how to achieve the unit direction in order to align with the department’s direction, how the sub-tasks and plans needs to be done and make. Operations As all the decision making needs to be realized by individual and collective actions, the decision on how the actions is carried out and the implementation on the actions then is categorized into the role and responsibility of the operation manager. (