MGMT 3000 Guhde Exam 2 PDF

MGMT 3000 Guhde Exam 2 Study online at https://quizlet.com/_erp99l 1. entrepreneurship (4) 1. process of *initiating* a business venture 2. organizing the necessary *resources* 3. assuming the a...

MGMT 3000 Guhde Exam 2 Study online at https://quizlet.com/_erp99l 1. entrepreneurship (4) 1. process of *initiating* a business venture 2. organizing the necessary *resources* 3. assuming the associated *risks* 4. enjoying the *rewards* 2. how many employees do none most small businesses have? 3. 5 types of small business 1. idealists owners 2. optimizers 3. hard workers 4. jugglers 5. sustainers 4. idealists rewarded by chance to work on something new and creative 5. optimizers get personal satisfaction from being business owners 6. hard workers thrive on the challenge of building a larger, more profitable business 7. jugglers high-energy people who enjoy handling every detail of their own business 8. sustainers enjoy chance to balance work and personal life 9. as the ______ popula- minority tion of the US has grown, so has the number of ______-owned business- es 10. immigrants were almost twice ______ as likely as na- tive-born americans to start new businesses 1 / 22  MGMT 3000 Guhde Exam 2 Study online at https://quizlet.com/_erp99l 11. types of businesses increasingly sophisticated; traditional minori- launched by immigrant ty-owned retail stores/restaurants are being com- entrepreneurs are... plemented by firms in financial services, soft- ware, insurance, and online businesses 12. ______ of US population 13.7%, 21.7% was comprised of immi- grants, but they make up ______ of all business owners 13. there has been a 58% ______ increase in women-owned business- es since 2007 14. why do more men than there's a suggestion that women tend to be women own business- more cautious than men about borrowing money, es? which limits growth opportunities, particularly in high-tech fields questioned 15. sociologists argue that they have to work harder to convince others that women has less access they have what it takes to be successful to capital because... 16. what is causing women cost of launching tech-related businesses falling to take a gamble in this competitive market? 17. approximately _____ of 20% small businesses fail within the first year 18. by the end of the 2nd 30% year, _____ of business- es will have failed 19. 8 traits of entrepreneurs 1. autonomy 2. entrepreneurial sacrifice 3. high energy 2 / 22  MGMT 3000 Guhde Exam 2 Study online at https://quizlet.com/_erp99l 4. need to achieve 5. self-confidence 6. internal locus of control 7. awareness of passing time 8. tolerance for ambiguity 20. entrepreneurial sacrifice ability to persevere after struggles or defeat 21. need to achieve internally motivated 22. internal locus of control believe that you have control over what happens to you 23. which two traits of entre- most: self-confidence, need to achieve preneurs are most/least least: tolerance for ambiguity, high energy like those of managers in large corporations? 24. starting an online or mo- 1. find a market niche bile app business (5) 2. create a professional website 3. choose a domain name 4. know when to pivot (change strategic direc- tions) 5. use social media 25. primary focus of social creating *social value* by providing solutions to entrepreneurship social problems 26. secondary purpose of *generating profit* and returns social entrepreneurship 27. how to get the right to apply to a nonprofit business called b lab use the phrase "benefit/b corporation" in market- ing materials 28. to obtain certification to 1. environmental sustainability be a benefit/b corpora- 2. community impact tion, the business must 3. transparency pass an impact assess- 3 / 22  MGMT 3000 Guhde Exam 2 Study online at https://quizlet.com/_erp99l ment, which scores the org on what 3 things? 29. launching a start-up (4) 1. start with an idea 2. write a business plan 3. choose a legal structure 4. arrange financing 30. planning forces the en- carefully think through the issues and problems trepreneur to do what? associated with starting and developing the busi- ness 31. 8 characteristics of a 1. clear, compelling vision business plan 2. clear, realistic financial projections 3. profile of potential customers and target mar- ket 4. details about the industry and competitors 5. evidence of an effective management team 6. critical risks 7. sources and uses of start-up funds and oper- ating funds 8. summary 32. sole proprietorship unincorporated business owned by an individual for profit 33. sole proprietorship char- 1. few legal requirements acteristics (3) 2. proprietary has total ownership and control 3. owner has unlimited liability 34. partnership unincorporated business owned by two or more people 35. partnership characteris- 1. easy to start tics (3) 2. use a formal partnership agreement 3. unlimited liability 36. a formal partnership how partners share responsibility/resources and agreement specifies... contribute expertise 4 / 22  MGMT 3000 Guhde Exam 2 Study online at https://quizlet.com/_erp99l 37. partnerships often dis- 5 solve within _____ years 38. corporation artificial entity created by the state and existing apart from its owners 39. corporation characteris- 1. separate legal entity liable for its actions tics (6) 2. limits owners' liability 3. must pay taxes on its income 4. provides continuity 5. more complex paperwork 6. can raise funds through the sale of stock to investors 40. majority of businesses in sole proprietorships the US are which legal structure? 41. debt financing borrowing money that must be repaid at a later date to start a business 42. 5 sources of debt financ- 1. family and friends ing 2. personal credit cards 3. bank loans 4. finance companies 5. small business administration (SBA) 43. equity financing funds that are investing in exchange for owner- ship in the company 44. does money always no, it only comes back if you're successful come back in equity fi- nancing? 45. angel financing wealthy individual who believes in a start-up pro- vides personal funds and advice to help the busi- ness get started 46. venture capital firms group that invests money in new or expanding businesses for ownership and potential profits 5 / 22  MGMT 3000 Guhde Exam 2 Study online at https://quizlet.com/_erp99l 47. crowdfunding raising capital from small amounts from many investors, usually through social media and the Internet 48. what percentage of the 78% sources of start-up cap- ital for entrepreneurs is from personal savings? 49. business incubator typically provides shared office space, manage- ment support services, and management and legal advice to entrepreneurs (ex. atlanta tech village) 50. co-working facility open office environment shared by multiple freelance entrepreneurs as well as corporate telecommuting employees or others who don't have a regular office 51. 3 advantages of franchis- 1. franchise power provides management help ing and expertise 2. known brand name 3. reliable financial projections 52. 3 disadvantages of fran- 1. lack of control chising 2. franchisors dictates the prices 3. must purchase equipment, building, and new product offerings 53. what percent of mcdon- 93% ald's are franchise oper- ations? 54. what does peter drucker any business enterprise must build a true team say about objectives and and weld individual efforts into a common ef- goals? fort; each member of the enterprise contributes something different, but they must all pull in the same direction, and their contributions must fit 6 / 22  MGMT 3000 Guhde Exam 2 Study online at https://quizlet.com/_erp99l together to product a whole without gaps, friction, and unnecessary duplication of effort 55. goal + plan = planning 56. 4 levels of goals and 1. mission Statement plans 2. strategic goals/plans 3. tactical goals/plans 4. operational goals/plans 57. mission statements in- 1. reason the org exists clude... (3) 2. how they differ from their competitors (ex. star- bucks is the premiere purveyor of coffee) 3. may include statement of their values 58. strategic goals/plans -senior management -organization as a whole -ex. increase revenue through expansion into a foreign market 59. strategic goals official goals/broad statements describing where the org wants to be in the future/long term 60. strategic plans define the action steps by which the company intends to attain strategic goals; blueprint that defines organizational activities and resource al- locations 61. tactical goals/plans -middle management -major divisions/functions -ex. develop marketing plan for the foreign market 62. tactical goals results that major divisions and departments within the org intend to achieve 63. tactical plans define what major departments/org subunits will do to implement the org's strategic plan 64. operational goals/plans 7 / 22  MGMT 3000 Guhde Exam 2 Study online at https://quizlet.com/_erp99l -lower management -department, individuals -ex. hire employees for new foreign market 65. operational goals results expected from departments, work groups, and individuals 66. operational plans developed at the lower levels of the organization to specify action steps toward achieving opera- tional goals and to support tactical plans 67. what is an important schedules component of an opera- tional plan? 68. 5 steps of the organiza- 1. develop the plan tional planning process 2. translate the plan 3. plan operations 4. performance management 5. monitor and learn 69. develop the plan (3) 1. define mission/vision 2. set goals 3. manage goal conflict 70. translate the plan (3) 1. define tactical plans/objectives 2. develop a strategy map 3. define contingency plans/scenarios 71. plan operations (4) 1. define operational goals/plans 2. select measures/targets 3. set stretch goals 4. crisis planning 72. performance manage- use... ment (3) 1. management by objectives 2. single-use plans 3. standing plans 73. monitor and learn hold planning and operational reviews 8 / 22  MGMT 3000 Guhde Exam 2 Study online at https://quizlet.com/_erp99l 74. 4 approaches to manag- 1. build a coalition ing goal conflict 2. modify goals by time or location 3. address conflicts with debate and dialogue 4. break down barriers and promote cross-silo corporations 75. coalition management building an alliance of people who support man- agers and influence efforts toward achieving goals 76. aligned goals are consistent and mutually supportive so that achievement of goals at lower levels permits the attainment of high-level goals 77. strategy maps visual representations of the key drivers of an org's success; show how specific goals/plans in each area are linked 78. what does research find employees work harder and find more meaning in regard to strategy in their work when they understand how their jobs maps? fit together into the bigger picture of the org's goals 79. 3 bricklayers architect christopher wren observed 3 bricklayers rebuilding st. paul's cathedral and asked what they were doing -first bricklayer: "i'm a bricklayer. i'm working hard laying bricks to feed my family." -second: "i'm a builder. i'm putting up a wall." -third replied with pride "i'm a cathedral building. i'm building a great cathedral." *will put in the best effort* 80. performance manage- managers use operational goals to direct em- ment ployees and resources 81. management by objec- peter drucker tives (MBO) was devel- oped by who? 9 / 22  MGMT 3000 Guhde Exam 2 Study online at https://quizlet.com/_erp99l 82. management by objec- system whereby managers and employees de- tives fine goals for every department, project, and per- son and use them to monitor subsequent perfor- mance 83. management by means new systemic approach that focuses attention (MBM) on the methods and processes used to achieve goals 84. model of the MBO 1. set goals process (4) 2. develop action plans 3. review progress 4. appraise overall performance 85. set goals (3) 1. corporate strategic goals 2. department goals 3. individual goals 86. while you review go back to develop action plans progress, if you take a corrective action, what do you do? 87. MBO benefits (4) 1. focuses manager and employee efforts on ac- tivities that will lead to goal attainment. 2. can improve at all company levels. 3. improves employee motivation. 4. aligns individual and departmental goals with company goals. 88. MBO negatives tends to be a rigid process 89. single-use plans plans developed for activities that are not likely to be repeated in the future 90. standing plans ongoing plans that provide guidance for tasks or situations that occur repeatedly within the org (ex. sexual harassment policy) 10 / 22  MGMT 3000 Guhde Exam 2 Study online at https://quizlet.com/_erp99l 91. single-use plans include programs and projects; organizational policies, ______ while standing rules, and procedures plans include ______ 92. key performance indica- tool used to assess what's important to an org tors (KPIs) and how well the org is progression toward achieving its strategic goal 93. 5 characteristics of effec- 1. specific and measurable tive goals 2. have a defined time period 3. cover key result areas 4. challenging but realistic 5. linked to rewards 94. 4 benefits of planning 1. provide a source of motivation and commit- ment 2. guide resource allocation 3. are a guide to action (behavior) 4. set a standard of performance 95. 4 limitations of planning 1. can create too much pressure 2. can create a false sense of certainty 3. may cause rigidity in a turbulent environment 4. can get in the way of intuition creativity 96. 4 steps for planning for a 1. contingency planning turbulent environment 2. scenario building 3. stretch goals 4. crisis planning 97. contingency planning define company responses to be taken in the case of emergencies, setbacks, or unexpected conditions 98. scenario building forecasting technique that looks at current trends and discontinuities and visualizes future possibil- ities 99. stretch goals reasonable yet high ambitious and compelling goals, characterized by both extreme difficulty 11 / 22  MGMT 3000 Guhde Exam 2 Study online at https://quizlet.com/_erp99l and extreme novelty, that energize people and inspire excellence 100. crisis planning preparing organization, managers, and employ- ees to cope with catastrophic events that could destroy the firm 101. how important is strate- determines which organizations succeed and gic management? which ones struggle 102. thinking strategically re- conceptual skills lies on... 103. what does it mean to 1. take the long-term view think strategically? (3) 2. see the big picture 3. positively affect performance and financial suc- cess 104. strategic management the set of decisions and actions used to formu- late and implement strategies that will provide a *competitively superior fit* between the orga- nization and its environment so as to achieve *organizational goals* 105. competitive advantage what sets the org apart from others and provides it with a distinctive edge for meeting customer or client needs in the marketplace 106. 4 elements of competi- 1. target customers tive advantage 2. achieve synergy 3. create value 4. exploit core competence 107. achieve synergy occurs when org parts interact to product a joint effect that's greater than the sum of its parts acting alone 108. exploit core competence something the org does especially well in com- parison to its competitors 12 / 22  MGMT 3000 Guhde Exam 2 Study online at https://quizlet.com/_erp99l 109. corporate-level strategy what business are we in?; diversificaiton 110. merger occurs when two or more organizations combine to become one 111. joint venture involves a strategic alliance or program by two or more orgs 112. related diversification expansion into new business related to existing business activities (ex. google moves into AI) 113. unrelated diversification expansion into new lines of business that aren't related (ex. harley-davidson tries to sell water, starbucks tries to sell furniture) 114. vertical integration expansion into businesses that supply to the business or are distributors 115. forward integration apple moved into retailing, disney moved into streaming 116. backward integration netflix produced its own content 117. business-level strategy how do we complete 118. 3 business-level strategy 1. consumer products unit units 2. biotechnology unit 3. media unit 119. porter's five forces is industry based on... 120. formulating a busi- factors/forces; attractiveness/profitability ness-level strategy re- quires understanding of all the _______ with- in the industry which add or subtract from the _______ of the industry 13 / 22  MGMT 3000 Guhde Exam 2 Study online at https://quizlet.com/_erp99l 121. porter's five forces 1. potential new entrants 2. bargaining power of buyers 3. bargaining power of suppliers 4. threat of substitute products 5. rivalry among competitors 122. porter's competitive 1. differentiation strategies (3) 2. cost leadership 3. focus 123. differentiation strategy distinguish products/services from competitors (better/stronger/faster) 124. differentiation strategy higher prices, but it is a costly strategy as well results in... (ex. Target) 125. cost leadership strategy aggressively seek efficient facilities, cost reduc- tions, and cost controls (ex. Walmart) 126. is cost leadership strate- no gy talking about price? 127. focus strategy concentration on a specific region or buyer then follow differentiation or cost leadership strategies (ex. farmersonly.com) 128. functional-level strategy how do we support the business-level strategy? 129. function-level strategy consumer products unit (finance, r&d, manufac- unit turing, marketing) 130. strategic management 1. evaluate current mission, goal, strategies process (5) 2. SWOT analysis 3. define new mission, goals, strategies 4. formulate strategy 5. execute strategy via changes 131. SWOT analysis strengths, weaknesses (internal), opportunities, threats (external) 14 / 22  MGMT 3000 Guhde Exam 2 Study online at https://quizlet.com/_erp99l 132. is the SWOT analysis beginning at the beginning or end of the strategic mgmt process? 133. name one strength of business school, football team UGA 134. name one opportunity hope/zell miller scholarship encourages a lot of for UGA in-state students to apply to UGA over private schools 135. terry college's strategy is a business-level strategy an example of... 136. the student recruitment a functional-level strategy strategy for the terry col- lege is an example of... 137. strategy formulation includes the planning and decision making that leads to the establishment of the firm's goals and the development of a specific strategy plan 138. strategy execution use of managerial and organizational tools to direct resources toward accomplishing strategic results 139. strategic business units business division of the organization that has a (SBUs) unique business mission, product line, competi- tors, and markets relative to other SBUs in the corporation 140. portfolio strategy managing your portfolio of business; pertains to a mix of SBUs and product lines to provide synergy and competitive advantage 141. boston consulting group helps manage your portfolio; organizes busi- (BCG) matrix ness units along with two dimensions (business growth rate and market share) 15 / 22  MGMT 3000 Guhde Exam 2 Study online at https://quizlet.com/_erp99l 142. star -rapid growth and expansion -high growth -high share 143. cash cow -milk to finance bright prospects and stars -low growth -high share 144. bright prospect -new ventures -risky, only a few become stars -high growth -low share 145. dog -no investment, keep because you make some profit -mostly kept because of diversity -low growth -low share 146. if you have 2 cash cows revenue is high but there is a cause for concern and 2 dogs... since there's low business growth 147. option A: 2 cash cows option A: not as risky option B: 4 stars option B: risky and requires a lot of work/capital but has more upsides 148. globalization strategy use of standardized product design and advertis- ing strategies throughout the world 149. globalization strategy is a single global market exists for many consumer based on the assumption and industrial products that... 150. multidomestic strategy handling of competition in each country remains independent of industry competition in other countries 151. multidomestic strategy service companies is especially important for... 16 / 22  MGMT 3000 Guhde Exam 2 Study online at https://quizlet.com/_erp99l 152. glocalization strategy combines global coordination to attain efficiency with local flexibility to meet needs in different countries 153. what is the most im- strategy execution portant but most diffi- cult part of the strategic mgmt process? 154. embeddedness deep understanding and acceptance of organi- zational direction (strategy) and purpose (mis- sion) throughout the organization 155. 4 tools for putting strate- 1. visible leadership gy into action 2. clear roles and accountability 3. human resources 4. candid communication 156. visible leadership (3) 1. motivate people 2. shape culture/values 3. model desired behaviors 157. clear roles and account- 1. delegate authority/responsibility ability (3) 2. define roles 3. define measures and metrics 158. human resources (3) 1. recruit employees 2. manage transfers/promotions 3. provide training 159. candid communication 1. open lines of communication (3) 2. encourage debate 3. be honest 160. mintzber's managerial 1. interpersonal roles roles (3) 2. informational roles 3. decisional roles 161. decision maker 17 / 22  MGMT 3000 Guhde Exam 2 Study online at https://quizlet.com/_erp99l ______ is one of only three roles of a manager 162. interpersonal roles (3) figurehead, leader, liaison 163. informational roles (3) monitor, disseminator, spokesperson 164. decisional roles (4) entrepreneur, disturbance handler, resource allo- cator, negotiator 165. programmed vs nonpro- programmed: involve situations that have oc- grammed decisions curred often enough to enable decision rules to be developed and applied in the future (ex. em- ployee takes paternity leave) nonprogrammed: made in response to situations that are unique, are poorly defined/largely un- structured, and have important consequences for the org 166. wicked decision prob- highly ambiguous situation involving conflict over lems goals and decision alternatives, rapidly changing circumstances, fuzzy info, unclear links among decision elements, and the inability to evaluate whether a proposed solution will work; often no "right" answer 167. 3 decision-making mod- classical, administrative, political els 168. choice among 3 main 1. on the manager's personal preference models of decision-mak- 2. whether the decision is programmed or unpro- ing approaches de- grammed pends: (3) 3. and the degree of uncertainty associated with the decision 169. classical model based on rational economic assumptions and manager beliefs about what ideal decision mak- ing should be; the decision we should make but don't 18 / 22  MGMT 3000 Guhde Exam 2 Study online at https://quizlet.com/_erp99l 170. normative how a decision maker should make a decision 171. 4 assumptions of the 1. decision maker operates to accomplish known classical model goals; problems are defined 2. decision maker strives for certainty and gath- ers info; results are calculated 3. criteria for evaluation of alternatives are known; selects alternative that maximizes eco- nomic return 4. decision maker is rational and uses logic; decision maximizes attainment of organizational goals 172. administrative model use of a rational decision-making process within the limits of human and environmental factors 173. descriptive how managers actually make decisions in com- plex situations 174. bounded rationality people have limits/boundaries on how rational they can be 175. satisficing choosing the first solution that satisfies minimal decision criteria 176. intuition quick apprehension of decision situation based on experience but without conscious thought 177. political model useful for *nonprogrammed decisions* when conditions are uncertain, information is limited, and there's conflict about goals to pursue or ac- tion to take 178. 3 assumptions of the po- - organizations are made up of groups with di- litical model verse interests, goals, and values - information is ambiguous and incomplete - managers don't have the time, resources, or mental capacity to identify all dimensions and process all info regarding a problem 19 / 22  MGMT 3000 Guhde Exam 2 Study online at https://quizlet.com/_erp99l 179. decisions in the political bargaining and discussing among coalition mem- model are the result of... bers 180. 6 steps in the deci- 1. recognition of the decision requirement (prob- sion-making process lem/opportunity) 2. diagnose and analyze (5 why's) 3. development of alternatives 4. selection of desired alternatives (risk propen- sity) 5. implement chosen alternatives 6. evaluation and feedback 181. problem organization has to meet their own goals 182. opportunity managers see potential opportunity in the exter- nal environment 183. 5 whys a question-asking method used to explore the root cause underlying a particular problem. by asking "why" over and over again, we can get to the root of the problem 184. risk propensity willingness to undertake risk with the opportunity of gaining an increased payoff 185. 4 personal decision 1. directive styles 2. analytical 3. conceptual 4. behavioral 186. directive style prefer simple, clear-cut solutions to problem 187. analytical style base decisions on all available rational data 188. conceptual style use a broad amount of information to solve prob- lems creatively 189. behavioral style exhibit a deep concern regarding effect of deci- sion on others 20 / 22  MGMT 3000 Guhde Exam 2 Study online at https://quizlet.com/_erp99l 190. why do managers make 1. being influenced by initial impressions (an- bad decisions? (6) choring bias) 2. justify past decisions (loss aversion) 3. seeing what you want to see (confirmation bias) 4. perpetuating the status quo 5. being influenced by problem framing 6. being overconfident 191. anchoring bias causes us to rely too heavily on the first piece of info we are given and therefore interpret newer info from the reference point of our anchor in- stead of seeing it objectively 192. loss aversion place a higher value on avoiding losses on po- tential gains 193. confirmation bias managers puts too much value on evidence that's consistent with a favored belief and dis- counts evidence that contradicts it 194. perpetuating the status prefer holding on to what you currently have over quo the marginal utility of perhaps gaining a bit more 195. innovative decision mak- 1. start with brainstorming ing (6) 2. use hard evidence 3. engage in rigorous debate 4. avoid groupthink 5. know when to bail 6. do a premortem and postmortem 196. groupthink tendency of people in groups to suppress con- trary opinions 197. kodak example succumbed to groupthink and refused to adopt digital cameras; made the first one but decided to drop it to protect their lucrative film processing business 198. premortem 21 / 22  MGMT 3000 Guhde Exam 2 Study online at https://quizlet.com/_erp99l purposefully imagining a decision has been im- plemented and has failed miserably, and then identifying reasons for the failure so that problem- atic issues can be addressed in advance 199. postmortem aka after-action review; disciplined procedure whereby managers invest time in reviewing the results of decisions on a regular basis and learn from them 22 / 22