15604610
Description
Flashcards by Ramona Staub, updated more than 1 year ago
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Created by Ramona Staub
over 5 years ago
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| Question | Answer |
| Existential reasons to exist for a company (external perspective) | Fundament to exist, fulfil customer’s needs, customers are willing to pay price for certain product Profit |
| Vision for a company (internal perspective) | Very attractive product but not able to find a group who is willing to pay for product That’s why company has to keep up with existential reasons to survive |
| Research and Development is needed for what? | Creating new needs, new solutions Are customers willing to pay for these solutions/ideas Unique Selling Proposition (USP) |
| USP is important for what? | If a company launches a new product under the same brand, it is important to keep the same USP To stay unique in market Say why you are the best in market Used in effective marketing Straight communication Ex. Swisstools: swiss quality, life-long usage, made in Switzerland, protection of environment, happy employees, customized tools |
| Company types | Small & medium Enterprises International Enterprises Multinational Enterprises Transnational Enterprises Global Enterprises Born Globals / Born Again Global |
| Ownership models | State ownership: government ownership, public property Personal ownership Common ownership Collective ownership: private,cooperative |
| Customer focus (3) | B2B B2C B2B2C |
| Organizational Purpose (3) | Vision Statement: desired future Mission: employees & stakeholders clarity about purpose of organization, how to reach vision in future Statements of corporate values: guide organizational strategy (organizational structure), definition how company should operate |
| Organizational structure | Divide & coordinate the parts within people work Vertical (different levels)/ horizontal (division among departments) Functional Divisional Matric Teams Networks |
| When should a company go international? Advantages/Disadvantages | Limited customers in own country, going abroad to grow Proactive: profit advantages, unique, technologic advantages, tax benefits, economics of scale Reactive: competitive pressure, overproduction, declining domestic scales, saturated domestic market |
| Ways to conduct business abroad | Export & Import Off-shoring (outsourcing functions abroad, to save cost) Foreign direct investments (FDI) (buying company abroad) Licensing (selling rights to use assets) Franchising (right to use brand name in exchange of a fee) Joint venture (forming alliance to conduct businesses for a reason) |
| Definition of Management and Manager | Management activity of getting things done Manager Person who get things done |
| Why is Management needed? | Adding value to resources to survive value-adding process More output than input Input Managing transformation processes Output |
| Different functions of management | General managers Functional managers - Line managers - Staff managers Project Managers Entrepreneurs |
| Scope of Management | Functional tasks like planning, in a work divided organization with purpose of delivering performance Social describes all executives as a whole, authority in organization, purpose of influencing behavior Mental leadership Management shapes order in company, vision/values/goods/creativity |
| Tasks of Management | Planning, Organizing, Leading Staffing, Coordinating, Controlling, Reporting, Budgeting purpose to achieve goal of company with least imput but maximum output |
| Mintzberg’s 10 Management Roles | |
| Transformation within the organization and the outside environment | Internal elements immediate context of managing External elements consist of micro (competitive) and macro (general) environment Time elements past, present, future |
| External factors determine a mangers actions. Every manager behaves differently 3 theories shaping the context | Determinism: Context --> Manager’s actions Managerial Choice: Context <--Manager’s actions Interaction: Context <--> Manager’s actions |
| Management performances Managers organize work through division of work | Efficiency (doing things right) Effectiveness (doing the right things) Division of work: scarce limited resources, efficiently/timely achieving goals |
| Management roles Competing value framework consist of 4 complementing philosophies | Rational Goal Models: Adam Smith, Babbage-Principle, Frederick Taylor, Henry Ford Internal process Models: Henry Fayol, Max Weber Human Relation Models: Mary Parker Follett, Elton Mayo Open System Models: Interaction with environment socio-technical system complexity theory (linear/non-linear) |
| Company interacts with environment Company must add value to resources to survive | Dependent on environment for inputs to deliver outputs Manager’s assumptions about: culture, competitive environment, general environment, stakeholders Influence direction of actions and priorities Launched product has to respond to demand of different environmental spheres, if this is ignored it might lead to a collapse |
| Influences on organization | Internal environment: elements within an organization External environment: beyond organization |
| General vs. Competitive environment | General (macro): PESTEL Competitive (micro): Porter’s 5 forces |
| Analysis on general environment PESTEL | Frameworks influences product/services rather positively or negatively? Political Economic Social Technological Environmental Legal |
| Analysis on competitive environment Porter’s 5 forces | How does the market (micro-environment) in which you operate look like? Suppliers: bargaining power of suppliers Potential entrants: threat of new entrants Buyers: bargaining power of buyers Substitutes: threats of substitutes Influences Industry competitors, Intensity of rivalry |
| Intensity of rivalry Strong competitive rivalry lowers profitability and occurs when… | …Many firms, no dominant …slowly growing market, firms fight for market share …high fix costs encourage overproduction …loyalties …prolonged capacity: airlines, agriculture, auto-industry |
| Potential entrants might be encouraged by low entry barriers when… (5 forces, potential entrants) | …low cost of equipment/facilities …ready distribution facilities …no/minimal customer loyalty …no significant advantage of economies of scale …no relevant subsidies/regulations in favor of existing firms |
| Potential entrants might be encouraged by low entry barriers when… (5 forces, potential entrants) Profit decreases with greater power of buyers if… (5 Forces, Buyers) | …buyers take high percentage of supplier’s sale …many alternative products/suppliers available …product has high buyers cost (seeking for alternatives) …cost of switching to other suppliers is low |
| Power of suppliers is high and reduces “profit” to buyer if… (5 Forces, Suppliers) | …buyers take small percentage of sales …few alternative products/suppliers available (loyal customers) …product has low percentage of buyer’s cost, little incentive to seek alternatives …cost of witching suppliers are high |
| Easy to substitute (=less profit to supplier) if… (5 Forces, substitutes) | …buyers are willing to change buying habits …technological development enables new products and services …transportation cost falls …new supplier entering market |
| How to manage 5 forces | Incr. entrance barriers Benefit from fact that forces balance each other out Try shaping the barriers as part of strategy (competitors intelligence) Customer-relationship-management (CRM) Aiming cost-leadership/differentiation strategy |
| Economy of scope | Lowering average cost by producing more types of product as if each firm concentrates on producing one single type of a product Already available infrastructure/knowhow/employees can be used “twice” |
| Economy of scale | Per unit cost of production falls as volume of production increases Large volume of production is needed! |
| Stakeholder Analysis | Stakeholders: individuals/groups with interes in activity of a company, they invest something and expect returns (interest groups) If expectations are not fulfilled, they blame company for it and put pressure on them (pressure groups) Pressure group = risk to company |
| Interest | Is the period between lender lending a loan and lender getting the money back (from loan participant) |
| Different value systems | Different expectations = different value system Risk to their interest = values are threatened Means of power = defending values Coping with risk = balancing everybody’s interests out |
| What is key to survive for a company in relation with stakeholders? | To win loyalty with all stakeholders |
| Stakeholders have different power to protect their interests and force a company to return these interests | Sources of power: within organization, external stakeholders Indicators of power: within organization, external stakeholders |
| Stakeholder grid and communication efforts (power/interest) |
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| Blind spot of Neoclassical economics Neoclassical economy: dominates microeconomics, Keynesian economy, dominates mainstream economy today | Limits to growth due to overuse of resources/public goods Optimal extent of economic system in relation to earth/planetary boundaries Economics can't grow bigger than ecosystem provided |
| Planetary boundaries | Some are global e.g.: CO2/global warming Some are local e.g.: H20 shortage |
| Global warming and its impact on companies | Winners/losers Impact on: energy supply, industry/manufacturing, transportation, waste/sewage, forestry, agriculture, buildings |
| Sustainability Two most important streams | Carlowitz definition: Sustainable resource management, live off the interest not the capital Brundtland definition: Intra-& Intergenerative justice More sustainable means green(er) and fair(er) |
| Corporate (social) responsibility (CR / CSR) Definition | Responsibility of companies to contribute to the solution of societal challenges It means for companies that Company should have in place a process to integrate social, environmental, ethical, human rights and consumer concerns into core strategy in collaboration with stakeholders to: maximize creation of shared value Identify/migrate/prevent possible adverse impacts |
| Strategic CR management creates value for… | … society/environment …company Benefits society and business Thus, CR makes sense! |
| Creating shared value (CSV) means… | … creating a win-win situation Double value for company and society Strategic approach CSV: differentiate in market to stay unique Direct link to company value creation and profit maximization Society + Company = CR |
| Creating shared values when… | …reconceiving products & markets (social needs identification: product innovation) …redefining productivity in value chain (productivity, efficiency, securing resources) (…enabling local cluster development) |
| Creating shared value, CR Management, Societal Challenges |
Creating shared value there is always a direct relation between CR activities and profit maximization
e.g. reputation doesn’t belong to CSV but to CR
reputation doesn’t maximize profit
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| Green giants Enables more sustainable brands | Iconoclastic leader Higher purpose Disruptive innovation Built-in, not bolted on Mainstream appeal |
| Sustainability gap | Importance – Behavior = Gap What holds the masses back to behave in a sustainable way? |
| What can be identified by an Internal Analysis? | Resources, capabilities and core competences. A company needs to identify Strenghts (available resource capabilities lead to a development of sustainable competitive advantage) and Weaknesses (lack of resource capabilities lead to prevention in developing competitive advantage) |
| Discovering core competencies (model) | competitive advantage value chain analysis (out-/insourcing) 4 criteria of sustainable advantages (VRIO) core competencies (capacity and ability) resources (tangible/intangible) |
| definition of core competencies | serve as a source of competitive advantage over rivals core competencies = distinguishs a company competitvely & makes a company distinctive |
| VRIO Framework | Valuable Rate Costly to imitate Organized to be exploited --> It is never taken for granted that core competencies will continue to provide a source of competitive advantage All core competencies have the potential to become a core rigidities! |
| VRIO Framework (Scheme) |
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| Value Chain Analysis Definition M. Porter | outsourcing / insourcing Dividing firm in its activities -designing -producing -marketing -distributing |
| Value Chain Analysis used for? | basic tool to identify resources for diagnosing competitive advantage and to enhance it! opportunities to secure cost advantage opportunities to create product/service differentiation |
| Value Chain: Primary Activities involvement of creation, Sales, transfer of a product | |
| Value Chain: support activities support primary activities | |
| value chain for services | |
| outsourcing | some or all value creating activities from external suppliers --> specialized suppliers, more efficient |
| advantages of outsourcing | -cost savings: lower cost resources, latest state of the art technologies -technology: always the best and newest -Flexibility: seasonal peaks, large expert pool, adjustments -Focus/Specialization: non core services outsourced means more time for value-adding activities |
| Global Value Chains (GVCs) | international production --> different stages of production located in a different country Globalization motivates firms to think globally (where cheapest/best/efficient) -optimization of production (go where it is best) -trend towards international dispersion |
| Use of Value Chain Analysis | -source to analyze where competitive advantage is coming from -how discrete activities interact with each other -competitive advantage can be created by performing better/producing at lower cost than competitors -stay out of "no-profit"-zone -opportunities for integration -organize value process spendings -divided in three directions: service / manufacturing / service + manufacturing |
| Definition of competitive Advantage | firm can performe at a higher level than others in same industry or market through its resources/capabilities (core competencies) |
| SWOT Analysis Definition | summarizes organization's S&W relative to external O&T |
| SWOT Analysis |
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| When to apply SWOT Analysis | -explore new possibilities for new efforts/solution for problems -best decision making --> identify O for success in context of T to success (can clarify decisions & choices) -determination where changes are possible (juncture/turning point) -adjustments and to refine plans mid-course -also suitable for organizing gathered information and communicate about initiative or program |
| Steps of developing successful Business (5 steps) | 1. Finding Vision/Existential Reasons 2. Analyzing Environment 3. Planning & Developing Strategy 4. Implementing Strategy 5. Responding to Stakeholders |
| Finding Vision/Existential Reasons. How? | R&D: Product/Market Development, 5 Forces, CI |
| Analyzing Environment. How? | Context: PESTEL Stakeholder, SWOT |
| Planning & Developing Strategy. How? | Strategic Options: Directions - Ansoff/TOWS + Methods |
| Implementing Strategy. How? | Structure/Culture: Organizations, Processes, Culture: ABC |
| Responding to Stakeholders. How? | Sustainable Responsibility: Value-Risk Management, Business Ethics |
| Basis of Economic Action. How does it work? Who is involved? |
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| Reasons for Corporate Responsibility Activities (3 main categories) | Radical Transparency Increasing Stakeholder Expectations Declining Ressources |
| Structure of Responsibility (triangle) | Authorities: Stakeholders Subject: Company |
| Purpose of a Corporate Responsibility (3 main categories) | Ecological Dimension: Aesthetic Responsibility --> PLANET Social Dimension: Ethical Responsibility --> PEOPLE Economic Dimension: Technical Responsibility --> PROSPERITY/SELF-PRESERVATION --> Triple Corporate Responsibility |
| different scopes of responsibility: Levels of Moral Development | in what world would we live if everyone would behave like always asking for something in return when we did something for someone --> Ethical Development |
| Meaning of Sustainability | Sustainable Development should satisfy current requirements so that future generations are not disadvantaged. |
| 17 sustainable Development Goals for 2030 | 1. no poverty 2. zero hunger 3. good health and well-being 4. quality education 5. gender equality 6. clean water and sanitation 7. affordable and clean energy 8. decent work and economic growth 9. industry, innovation and infrastructure 10. reduced inequalities 11. sustainable cities and communities 12. responsible consumtion and production 13. climate action 14. life below water 15. life on land 16. peace, justice and strong institutions 17. partnerships for the goals |
| how to link sustainability and corporate responsibility | sustainability = the time dimension of responsibility --> responding to future generations |
| Corporate Social Responsibility (CSR) is located in which Dimension? | Social Dimension |
| Different responsibility profiles: Economistic Family Enterprise |
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| Different responsibility profiles: Fundamentalist Nature Protection Organisation |
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| Different responsibility profiles: Pragmatic-idealistic Pharmaceutical Company |
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| What is Ethics? | Ethics is a discipline which deals with getting along well with each other. getting along well: varieties of goodness with each other: Stakeholders/Customers |
| Relativity and Clash of Ethics | different approaches of Ethics depending on ethical values --> clash ethical theories: recommend different actions in order to solve dilemma --> clash of ethicists: different value system --> Consistency of Ethics: Commission is a political issue |
| What is the function of the stakeholders when it comes to Ethics? | Getting along well with all Stakeholders, good relationship within the corporate world is key |
| ethnical approaches (3 approaches) | Utilitarian Ethics: greatest good for the greatest number Deontological Ethics; respect human dignity/autonomy Virtue Ethics: better your character |
| Effects of Responsible Leaders' Trustworthy Behavior | |
| What is corruption? | misuse of public power for private gain against corruption: united nations / council of Europe / OECD reasons: weak government, underdeveloped education system, poor countries, rich in raw material |
| corporate virtues and their relation to corporate visions | guidelines how to behave in ordert o follow a certain vision respectively strategy. |
| Why studying and developing virtues? | we would like to prove successful (profits, performance, satisfaction) if wed want to change results or acts, the most effective way is the constructively development of virtues Virtues direct our actions, actions direct the results --> in reality it means, practised values direct the results |
| Complementary Traditional Approaches of Ethics |
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| Distinction between Management & Leadership | |
| Management vs. Leadership | |
| Leadership AND Management | |
| 8 steps by Kotter |
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| What sort of Leadership behavior should an organization encourage? (4) | 1. be supportive 2. operate with strong result orientation 3. seek different perspectives 4. solve problems effectively |
| Business Administration | Management - WHAT Leadership - WHY Bus Admin - HOW Mangement is activity spread between head and members of the body corporate Business Administration brings business to life. Directly linked to M&L. performance of business and its activities |
| Leadership, Management and Business Administration. Are they distinct roles? | Overlap between the 3: string overlap between Why, What and How, managers are involved in all aspects of the business and decision making Overlap between BusAdmin and Management: without the Why, lack of leadership, long term success of business is at risk Overlap with non of the 3: Chaos! Disconnected |
| BusAdmin Respons to the | WHY --> strategic purpose, cause, beliefs of business WHAT --> the business actually does (Strategic) and implements the HOW --> it organizes, manages, conducts its business ti secure capabilities and gain comp. adv. (Operational) |
| BusAdmin: Resources + Capabilities = value | responsible for --> operational aspects --> control resources --> using resources to secure bus. capabilities -->ensure value adding -->comp. adv. --> incr. profit |
| What are resources? What are the essential resources of a business? | |
| What are (essential) capabilities? | Leveraging resources: to secure capabilities and add value Why is your business more valued by customers than the one of your competitor? Coca Cola vs Pepsi, Apple vs Microsoft etc. Concentrate resources on key strategic goals, accumulate ressources efficiently, complement types of resources to add value, conserve resources, recover resources from the market in the minimum of time |
| Limited resources and adding value through capabilities | |
| Value creation through BusAdmin | Input: limited resources --> Business activities: Capabilities --> Output: Add value, profitable outcomes, success |
| Decision making: Why study decision making? | - every action affects value chain which organization adds to resources as it turns them into outputs - every activity is the result of a decision - reflecting on context during decision-making helps to reduce risks of failure and increases the chance to fulfill objectives - every decided activity transforms limited resources to value creating (incr. income) |
| Decision making in Organization |
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| Process of decision-making | - specific commitment to action - involves a measure of value (against other decision) - always risk of failure --> process of identifying problems & opportunities and then resolving them |
| hiring a new manager, one has to... | - identify need for new staff - budgeting - advertise the post - interviews - select candidate - negotiate work conditions - induct new employee to his/her job AND: measure expected return on investment |
| Tasks in Making decisions |
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| Task in Making Decisions: Example |
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| Types of Decisions (2) |
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| Decision-making decisions |
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| Models of decision making summary |
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| B | |
| Evaluation of task | |
| Evaluation of Tasks: Eisenhower method |
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| 5 leadership styles in decision making |
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| 7 diagnostic Q's - Models of decision making summary |
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| What is a strategy of a company? | - general direction of company -succeeding against competitors -motivate employees -organization of ressources etc. --> these points are key to bring idea successfully to the market |
| Strategy is not equal tactics, so what is then the difference? | Strategy: concerned with how different engagements are linked to achieve a certain goal tactics: concerned with the conduct of an engagement How a battle is fought is tactics,, the terms that is fought on and wether it should be fought at all is a matter of strategy. |
| definition of strategy/strategist, their purpose | strategy is about how people decide to organize major resources to enhance the performance of an enterprise. Strategist hope that their work will enhance performance by clarifying and unifying purpose, reducing uncertainty, linking short-term actions to long-term goals and provide control. |
| Firms strategy and its valuation | GOAL: maximize value (more value => share price increases because demand is higher and so profit is larger) for owner/stakeholder - to achieve this managers need strategies that increase profitability and profit growth - expanding internationally can boost firms profitability (reduce cost, add values and raise price) and profit growth (sell more in existing market, enter new markets) => Strategy should lead to GOAL |
| Strategic Management Process -> 5 P's of Strategy (Mintzberg 1987) | Plan: Strategy developed in advanced and with a Purpose: PESTEL, SWOT, Brainstorming, Practical Business Planning, Project Mangement Ploy: Outsmarting Competitors: Impact and scenario analysis Pattern: learn from the past: pattern of action creating a stretegic advantage: USP analysis, core competence Analysis Position: in the marketplace: competitive advantage analysis, SWOT, PESTEL, Porter's 5 forces, core competence VRIO, USP Analysis Perspective; Substantial influence of organizational culture on strategic decision making: cultural analysis tools |
| Strategic Management Process -> 3 Perspectives on the Strategy Process | 1. Planning view: identify the organisation's current mission, goals and strategies 2. Learning view: intended strategy, deliberate strategy, realized strategy 3. Political view: like learning view, the political view draws on the concept of bounded rationality and satisficing behavior |
| Strategic Options-Directions | Strategy is about choosing what not to do!-> which customers not to serve products ->products/services not to offer -->activities not to performe not being all things to all people => certain market segments |
| Levels of Strategy |
corporate level: reflects the overall direction of the organization
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| Levels of Strategy: corporate level | Options = (a) directions + (b) Methods of Strategy Development (a) TOWS + Ansoff Matrix + Porter |
| from SWOT to TOWS | |
| Ansoff Matrix (summarizes possible directions of a strategic development: products/markets) |
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| Levels of Strategy: Business Level | 3 generic strategies that a firm can use to develop and maintain Competitive Advantage |
| "stuck in the middle" |
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| Levels of Strategy: Functional Level | - operating divisions and departments - strategic issues at this level are related to business processes and value chain -functional level strategies in R&D, manufacturing, marketing, HR, finance involve development and coordiantion of resources through which business unit level strategies can be executed efficiently and effectively |
| Levels of Strategy: (b)Methods | (b) Methods = Organic Growth, M&A or Strategic Alliance |
| Internal Development (Organic Growth) |
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| Strategic Alliance (External Growth) | |
| Types and Examples of Strategic Alliance | joint venture: Cisalpino (SBB & ItalianFS) networks: OneWolrd, Star Alliance franchising: McDonalds licensing: Microsoft Software subcontracting: Cleaning Companies, Manpower, Adecco co-production: Renault-Nissan/Fiat-Crysler sponsoring: FIFA, Olympics |
| Advantages and Disadvantages of a strategic Alliance | |
| Preconditions for successful strategic Alliance | -good interpersonal cooperation -contractual arrangement -bridging gap between cultures -clear goals -simple/flexible structures -senior Mmgt. support (Partner) -trustworthiness -mutual respect |
| Mergers & Acquisitions (External Growth) | expanding own resources and competencies by acquiring or merging with another company |
| Mergers & Acquisitions (External Growth): Advantages and Disadvantages | |
| Development of Strategic Options & their Assessment |
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| Success Criteria for a strategic Option | suitability: within context (adresses circumstances) acceptability: of expected outcome (expected performance) feasability: due to existing resources (has the resources) --> strategic options need to be evaluated within these criteria |
| Suitability of a strategy | |
| Suitability of a strategy | concerns wether a strategy adresses the circumstances in which an organization is operating --> would it work? - fit for future trends - minimizing risk - exploit strategic capability - meet expectations of stakeholders |
| Acceptability of a strategy | concerns the expected performance outcomes of a strategy --> to which extent is the perfect outcome of a chosen strategy in line with the expectations of stakeholders? --> Return/Risk/Stakeholder Reactions |
| Acceptability of a Strategy | |
| Feasability of a Strategy | concerns wether an organization has the resources and competences to deliver a strategy --> Can a strategy be made to work in practice? Financial feasability, forecasting, resource development |
| Feasability of a Strategy | |
| Challenges of Operations and Supply Chain | -Globalization: more companies operating in more markets -Automation & Information Technology: Always inventing new stuff, better ways of doing things -Increasing complexity: more demanding markets and more sophisticated products and services -Increasing vulnerability: due to long and complex supply chains -cost pressure: ends in outsourcing -increasing environmental regulations -interests: NGO and stakeholders |
| Operation Management (OPM): Definition | activities, decision and responsibilities of managing the production and delivery of products and services |
| to conduct OPM systems and processes have to be implemented | -repeatable -consistent -reliable -efficient -competitive -compliant (with legislation) |
| transformation process | takes all inputs and creates an output |
| Nature of Products | intangible: non-physical (mortgages, legal advice) tangible: physical (cars, furniture) |
| transformation resources transformable resources | |
| differences between the two transformation processes (tangible vs. intangible) | intangible --> services --> customer often present during development presence of customer has consequences for operations manager: -randomness: unpredictable behavior of customers -heterogenreity: different customers=different expectations -intangibility: difficulties to measure service -perishability: services are difficult to store |
| differences between the two transformation processes | |
| Operations processes (4 Dimensions) | 1.) volume: how many pieces produced of a typ 2.) variety: how many versions produced by same facility 3.) variation in demand: how production volume varies with time 4.) visibility: how much of manufacturing process does a customer --> 4 V's are key consideration before the operations strategy is defined --> designing a system to achieve operations strategy |
| operation strategy defines how... | … the function will support the business strategy by ensuring the organization has the resources and competencies to meet market requirements |
| review W09 | |
| Product Process types: | |
| service process types: | |
| process designs | -span of processes: variety of processes in company to carry out in-house -make or buy: range of parts/products that are produced in-house of bought by vendor |
| layout planning Definition: | activity that determines best configuration of resources --> equipment --> infrastructure -->people which produce most efficiently -layout of departments -layout within departments -layout of workplace |
| Facility layout (4) | 1.) fixed position layout 2.) process layout 3.) product layout 4.) Cell or group layout |
| The main activities of operations | 5 key operation activities to provide Goods & Services to customers: 1.) creating capacity (ability of numerous resources within organisation to deliver product/service 2.) setting standards (quality standards, work performance standard) 3.) materials (ensuring adequate supply, dilemma holding stock (inventory) = expensive 4.) scheduling (coordinating available ressources by time or place) 5.) control (setting objectives, measuring, comparing, acting) --> no activity operates alone |
| Quality Definition: | -no absolute Quality but based on requirements of customer -any product, which does what customer wants of it, can be considered as a quality product -most importantly, define and understand what customers expect and deliver that --> meeting or exceeding expectations? |
| Features of Quality (6) | -functionality -performance -reliability (consistency over a time) -durability (robust) -customization -appearance (look) -image (brand) |
| Additional elements of service quality | -responsiveness (willingness to help customer) -assurance (inspire confidence) -empathy (shown to customer) |
| Order-winning criteria: | key reason for customer to buy product/service. Improving these elements will directly affect the business that is won less key to win business but will play a part in losing it. if it is not present at a specific level it may disqualify the product or service from consideration by the customer |
| quality systems and procedures (3 documentations) | 1.) company quality manual: document provides a summary of quality management policy 2.)procedures manual: description of function, structure, responsibilities of each department 3.) detail work instructions, specifications, standards, methods |
| Supply chain management Definition: | "The process from the initial raw materials to the ultimate consumption of the finished product linking across supplier - user companies." --> involves planning/design/flow of material/info and finance superior value to end customer in effective/efficient manner |
| What is supply chain management? |
-consists of all parties involved
-directly/indirectly
-fulfilling customers requests
-including manufacturer, supplier, transporters, warehouses, retailers, customers
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| major drivers of supply chain: | -production -inventory -location -transportation -information |
| objectives of supply chain | -maximizing overall value enerated -generated value = product worthiness to customer - cost supply chain incurs in filling the customer's request --> accurate forecasting to have right inventory in warehouse to reduce costs --> right products in right quantities at right place in right moment at minimal costs |
| 2 processes of supply chain | 1.) cycle view 2.) pull vs. push view |
| Benefits of global sourcing |
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| Drivers of global sourcing | -technological advances in communication (internet) -falling costs of international business -entrepreneurship/innovation, rapid economic transformation in emerging market countries |
| performance control | what is control? process of monitoring activities, ensuring results are in line with plan, acting to correct significant deviations why control?mistakes are a loss of controll that leads to sub-optimal products |
| Control process | - intendent to achieve objectives -suitable control system to support |
| Tactics for Control --> supported by practices | 1.) direct supervision 2.) organizational structuring 3.) rules and procedures 4.) Management by objectives 5.) Machinery & Automation 6.) HR management 7.) values & benefits |
| Performance Measurement (3 types of performance measurement) | 1.) input measure: transformation process 2.) process measure: provides info how process is doing 3.) output measure: after operational process is completed |
| 5 generic performance objectives | |
| Devising useful performance measure | 2 Problems: 1.) difficulty in achieving balance of too many or too little detailed measures --> link between chosen measures --> strategic objectives of operations have to be in relation to 5 generic performance objectives 2.) setting performance targets that do not create wrong behavior (target is met but the determent of overall operations) |
| Key performance indicator (KPI's) | summarized set of most important measures that informs managers how well operation is achieving organizational goal |
| balanced scorecard | measurement tool looks at 4 areas: 1.) financial 2.) customer 3.) internal 4.) innovating & learning |
| Finance control: Why study finance & budgetary control? | --> finance has major input to organization --> external and internal reporting systems affect managers and their work (e.g. decision-making, motivation) --> understanding subjective assumptions beneath data, consider effects of alternative methods |
| comparing a Company's Performance | --> compare with competitors --> compare with previous periods |
| Budgetary Control | Planning for growth and profit = budget --> profit has to be planned and controlled to stay in budget --> becomes part of operational control system Allocating budget by: function budegting, proect budgeting |
| Decision of budget | if not in budget, decisions has to be taken: - basis on budget: realistic or be reset? -work carried out: work has to be done more efficiently? Functional? resources and processes have to be analyzed Project? scope has to be reduced |
| Creativity Definition: | creativity -> ability to combine ideas to produce something new and useful - idea alone does not add value -idea has to meet customers needs 6 distinct resources -intellectual abilities -knowledge -style of thinking -personality -motivation -environment |
| Innovation Definition: | process of applying or implementing something new and useful -adding value by incorporating creative solutions in products and/or implementing changes in organizational processes |
| Innovation 2 types | incremental: small changes in product/project radical: game changers, alter the competitive landscape --> effect of an innovation depend on how they are used, what they are replacing and who is evaluating them |
| 4P's: Types of Innovation | 1.) Product 2.) Process 3.) Position 4.) Paradigm |
| organizational factors that can affect Innovations | Innovations can occur: unexpectedly, knowledge push and other internal pressure, market pull and other external pressure |
| 4 S' of Innovation (Organizational features shaping the effectiveness of its innovation process) | 1.) strategy 2.) structure 3.) style 4.) support |
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