Busn 100 Chapter 7

1. Busn 100 Chapter 7 Managing Businesses

2. Goals • How Has The Changing Business Environment Affected Managers? • Goals Objectives Strategies and Tactics • Four Functions Of Management • How Do Company Goals Affect Planning And Decision Making? • Describe The Organizing Function Of Management • What Are The Differences Between Leaders And Managers? • Leadership Styles • What Are The Five Steps For The Control Function Of Management

3. Define: Management • The process used to accomplish goals through • Planning • Organizing • Leading • Controlling: • People • Financial resources • Information • Equipment

4. Management Old • Called Bosses • Telling people what to do • Watching over people • Punishing people if they did not obey • Act sternly

5. Management New • Guide • Train • Support • Motivate • Coach • Build Teams • Treat employees like partners rather than unruly workers

6. Managers Of Today • Flexible and open to new ideas • Act much faster than managers in the past • Give workers more responsibility and authority • Act like Leaders

7. Management Requires New Skills • Communicate effectively • Team Player • Planner • Coordinator • Organizer • Supervisor

8. Long-term Relationships • Employees don’t stay with companies for a whole lifetime (like in the past) • Employees have several jobs throughout their career

9. Web Sites For Next Few Slides • Microsoft Mission: • http://www.microsoft.com/about/default.mspx • Highline Mission: • http://www.highline.edu/pres/president/mission.htm • Wholefoods Mission: • http://www.wholefoodsmarket.com/company/declaration.php • Wholefoods 19-time Pay Statement: • http://www.wholefoodsmarket.com/company/corevalues.php

10. Terms • Goals • The broad, long-term accomplishments an organization wishes to attain • Objectives • Specific, short-term statements detailing how to achieve the organizational goals • Strategy • Determining the major goals of the organization and the policies and strategies for obtaining and using the resources to achieve those goals. Also, position in the market • Tactics • Developing detailed, short-term statements about what is to be done, who is to do it, and how it is to be done

11. Student: Goal Objective Strategy Tactic • Goal: • Take care of family and have career that is enjoyable • Objective • Earn Accounting CPA • Strategies: • Attend Community College • Go to University • Internship while at university • Graduate • Work for one year (Experience) • Take CPA review course (3 months) • Sit for all four CPA exams within one year • Tactics at community college • School from 8 AM to noon, part-time job from 1 PM to 4 PM, Study from 5 PM to 10 PM • Eat Healthy food

12. WholefoodsGoalObjectiveStrategyTactic • Goal: • Whole Foods Market aims to create a complete stakeholder team that sets the standards of excellence for quality food retailers • Objectives • Sell the Highest Quality Natural & Organic Products • Satisfying and Delighting Our Customers • Supporting Team Member Happiness and Excellence • Creating Wealth Through Profits & Growth • Caring about our Communities & Our Environment • Creating ongoing win-win partnerships with our suppliers • Strategies • Best Quality Food • Employees and managers are on same team instead of two opposing teams • Gain enough scale to bring costs down (quality food is not cheap) • Tactics • Met with law makers who are creating laws that define the term organic • Visit a particular farm to inspect farming techniques • Contracting with farms in China to grow walnuts • Do not allow unions so that managers and employees can be on one team • Managers are not allowed to make more than 19-times the average pay

13. Goals • The broad, long-term accomplishments an organizations wishes to attain • What customers to serve? • What products to sell? • Where to sell in the world? • Mutually agreed upon by employees and managers • Goals are listed in the Mission Statement

14. Objectives • Specific, short-term statements detailing how to achieve the organizational goals

15. Strategy • Strategy is your overall goal in your business. • What customers to serve? • What products to sell? • Where to sell in the world?

16. Tactics • Tactics are the set of actions/steps/tools needed to fulfill/achieve your strategy/goal (http://searchwarp.com/swa266409.htm) • Developing detailed, short-term statements about what is to be done, who is to do it, and how it is to be done • Setting annual budgets • Research or advertise or marketing • Managers below the top level

17. What Is Strategy? • Strategy is your overall goal in your business. • Strategy is your standing within the marketplace. • Strategy is your position in your niche. • Your strategy is the act of creating decisions that will benefit the future outcome of your business. Strategy is the set of directions you make or your situation and position within the business community. Strategy often also refers to your timing in the marketplace and strategically choosing the most beneficial time to launch your business or your campaign. • http://searchwarp.com/swa266409.htm

18. What Are Tactics? • Tactics are the tools you use to achieve your goals. • Tactics include things like advertising and marketing. • Tactics are the steps taken to achieve your goals. • Tactics should work with your strategy and they are the set of requirements need for your plan to take place. Your tactic is your device used for meeting your goals set by your strategy. Strategy and tactics should always be relative to one another because the tactics are the set of actions needed to fulfill your strategy. • http://searchwarp.com/swa266409.htm

19. Functions Of Management • Planning • Create Goals / Strategies • Organizing • Create a structure for firm and deploy resources, so that the whole team can achieve the Goals • Leading • Create a vision for the firm that inspires and motivates so that the whole team can achieve the Goals • Controlling • Create the standards to measure whether the Team is achieving the Goals and then make corrections when the Goals are not met and give rewards when the Goals are met.

20. Highline • Planning • http://www.highline.edu/pres/president/StrategicPlan/strategicplan2006.htm • Organizing • http://www.highline.edu/pres/president/organization/orgchrt.htm • Leadership • Jack Bermingham, Jeff Wagnitz, Alice Madsen, Joy Smucker, Jeffrey Ward • Controlling: • Joy Smucker & Jeffrey Ward visit teachers classes and write reports • Alice Madsen creates a 5-year plan for teachers • This information is passed up to the Vice President, President and the B of T

21. Planning • Anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives • Setting organizational goals • Develop strategies to reach those goals • Setting precise standards • Please the customer and planning teams

22. Organizing • Designing the structure of the organization and creating conditions and systems in which everyone and everything work together to achieve the organization’s goals and objectives • Please the customer and adapt to changing customer needs • Allocating resources, assigning tasks, and establishing procedures for accomplishing goals • Preparing a structure (organizational chart) showing lines of authority and responsibility • Recruiting, selecting, training, and developing employees • Placing employees where they are most effective

23. Leading • Creating a vision for the organization and guiding, training, coaching, and motivating others to work effectively to achieve the organization’s goals and objectives • Guiding and motivating employees to work effectively to accomplish organizational goals and objectives • Empowering and giving freedom to employees to become self-directed and self-motivated • Giving assignments • Training • Explaining routines • Clarifying policies • Provide feedback on performance

24. Controlling • Establishing clear standards to determine whether or not an organization is progressing toward its goals and objectives, rewarding people for doing a good job, and taking corrective action if they are not • Measuring results against corporate objectives • Monitoring performance relative to standards • Rewarding outstanding performance • Taking corrective action when necessary

25. Planning: Vision • An encompassing explanation of why the organization exists and where it’s trying to head • Unite workers in a common destiny

26. Planning: Mission Statement (Goals & Strategies) • An outline of the fundamental purpose of an organization • The organization’s self-concept • Company philosophy and goals • Long-term survival • Customer needs • Social responsibility • The nature of the company’s products or services

27. Planning: Mission Statements • http://www.starbucks.com/aboutus/environment.asp • http://www.wholefoodsmarket.com/company/declaration.php • http://www.exxonmobil.com/Corporate/about_operations_sbc_principles.aspx • http://www.highline.edu/pres/president/mission.htm • http://www.pccnaturalmarkets.com/member/board/policy_governance.html

28. SWOT Analysis

29. SWOT: Boeing • Strength • Biggest • Access to educated engineers • Weakness • Biggest • Union Strike are common • Opportunities • Emerging markets need planes • If the dollar goes down • Threats • Air Bus • Global recession

30. SWOT http://marketingteacher.com/SWOT/walmart_swot.htm http://www.marketingteacher.com/SWOT/yahoo_swot.htm http://www.marketingteacher.com/SWOT/amazon_swot.htm http://www.marketingteacher.com/SWOT/toyota_swot.htm

31. SWOT: Internal: • Strengths • Core competencies in key areas • An acknowledged market leader • Well-conceived functional area strategies • Proven management • Cost advantages • Better advertising • Weaknesses • No clear strategic direction • Obsolete facilities • Subpar profitability • Lack of managerial depth and talent • Weak market image • Too narrow product line

32. SWOT: External: • Opportunities • Ability to serve additional customer groups • Expand product lines • Ability to transfer skills/technology to new products • Falling trade barriers in attractive foreign markets • Complacency among rival firms • Ability to grow due to increases in market demand • Threats • Entry of lower-cost foreign competitors • Rising sales of substitute products • Slower market growth • Costly regulatory requirements • Vulnerability to recession and business cycles • Changing buyer needs and tastes

33. Planning Functions

34. Contingency Planning • Preparing alternative courses of action that may be used if the primary plans don’t achieve the organization’s objectives • If you do not meet sales target: • More advertising • Cut prices

35. Decision Making: Steps

36. Planning: Decision Making • Choosing between two or more alternatives • 7 Ds: • Define the situation • Describe and collect needed information • Develop alternatives • Develop agreement among those involved • Decide which alternative is best • Do what is indicated (begin implementation) • Determine whether the decision was a good one and follow up

37. Planning: Problem Solving • The process of solving the everyday problems that occur. Problem solving is less formal than decision making and usually calls for quicker action

38. Planning: Brainstorming • Coming up with as many solutions to a problem as possible in a short amount of time with no censoring of ideas

39. Planning: PMI • Listing all the + for a solution in one column, all the - for a solution in another column, and all the implications for a solution in a third column

40. Management Pyramid President, Vice Pres. Division Heads, Plant Mgrs. Foreman, Dept Heads Employees

41. Organizing : Top Management • Highest level of management who develop strategic plans • Chief Executive Officer (CEO) • Often the president • Responsible for all top level decisions • Responsible for introducing change into the firm • Chief Operating Officer (COO) • Responsible for executing change • Structural work • Controlling operations • Rewarding people for achieving goals

42. Organizing : Top Management • Chief Financial Officer (CFO) • Planning budgets • Obtaining resources through debt or equity • Chief Information Officer (CIO) or Chief Knowledge Officer (CKO) • Getting useful information that can help the firm meet its goals and objectives

43. Organizing : Middle Management • General managers • Division Managers • Branch and plant managers • Deans • Division Chairs • Responsible for tactical planning and controlling

44. Organizing : Supervisory Management • Directly responsible for supervising and evaluating workers

45. Organizing : Employees • Workers

46. Organizing : Skills • Technical Skills • Perform tasks in a specific department or discipline (Accounting, Selling) • Human Relations Skills • Inspiration, motivation, communication, delegating, training, support • Conceptual Skills • Ability to picture the organization as a whole and the relationship amongst the various parts (planning, organizing, controlling, system developing, problem analysis, decision making, coordinating, delegating)

47. Skills Needed For Managers

48. Organizing : Staffing • Recruiting, hiring, motivating, and retaining the best people

49. Leading • Leader • Embrace and manage change • Create vision, values, ethics and motivate others to follow and motivate themselves to follow • Manager • Strive to produce order and stability • Carry out leader’s vision • Leaders and managers must: • Lead by example

50. Leadership Styles • Autocratic • Making decisions without consulting others • Participative (Democratic) • Managers and employees working together to make decisions • Free-rein • Managers set objectives • Employees are relatively free to do whatever it takes to meet those objectives