Download Managing the Business Enterprise and more Exams Business Economics in PDF only on Docsity!
Chapter 6 - Managing the Business Enterprise
The Management Process✔✔
- Planning
- Leading
- Organizing
- Controlling
The Management Process: Planning✔✔Determining what the business needs to do and the best way to achieve it (ongoing cycle)
Establish goals > Determine Gap > Develop Action > Implement Action > Assess Effectiveness
- Strategic Plans
- Tactical Plans
- Operational
Planning - Strategic Plans✔✔General direction/big picture
Planning - Tactical Plans✔✔Tactics used to achieve strategy
Planning - Operational✔✔specific plan to make things happen
The Management Process: Organizing✔✔- determine how to use existing resources to implement the plan (money resources)
- arranging jobs in a structure to create an efficient task system
The Management Process: Leading✔✔- guiding and motivating people to meet objectives
- managers have various responsibilities with regard to their employees
The Management Process: Controlling✔✔- managers monitor the firm's performance
- determine if goals have been met
- determine what actions were most effective in achieving goals
- understanding what went wrong and how to fix it (evaluate)
Types of Managers✔✔Top Management
- responsible for overall performance of the firm (CEO)
Middle Management
- responsible for implementing decisions of top manager (Operations Manager)
First-line Management
- responsible for supervising employees (supervisor)
Basic Management Skills✔✔- Conceptual Skills
- Human Relations Skills
- Technical Skills
Basic Management Skills: Conceptual Skills✔✔the ability to view problems and abstractly, and to accurately analyze situations
Basic Management Skills: Human Relations Skills✔✔people skills that enable managers to understand and get along with others
Basic Management Skills: Technical skills✔✔the ability to do specialized tasks such as keyboarding, artwork, accounting, marketing etc.
Basic Management Skills: Time Management Skills✔✔Productive use of time
Leading causes of wasted time:
- Paperwork
- Telephone
- Meetings
T - time-bound
Strategic Managment: Setting Goals and Formulating Strategy - Mission
Statement✔✔- describe how the organization will achieve its purpose (reason for being)
- clarifies who the organization serves, what it offers, and how it will be provided
- includes core values and ethical commitment
Strategic Management: Setting Goals and Formulation Strategy - Formulating
Strategy✔✔Setting strategic goals
- long-term goals based on the mission statement
- Analyzing the organization and its environment
- Matching the organization to its environment
Matching the Organization and it's Environment✔✔Final step in strategy formulation
- Matching company strengths to environmental opportunities
- Minimizing the impact of threats and company weaknesses
Strategic Management: Process of Formulating Strategy✔✔1) Set strategic goals
Analyze the organization & Analyze the environment
Match the organization and its environment
Formulate strategy
Levels of Strategies✔✔Corporate-level strategy
- what business will we pursue?
Business-Level (competitive) strategy
- how will we compete in our chosen area?
Functional Strategy
- what actions can our department pursue to reach the overall goals?
Corporate-Level Strategies✔✔-Concentration
-Growth
- Integration
- Diversification
- Investment reduction
Business-Level (competitive) strategies✔✔- Cost leadership
Contingency Planning and Crisis Management✔✔Contingency Planning
- identify in advance changes that might occur
- identify ways the company can respond to changes
Crisis Management
- methods for dealing with emergencies
