managing the business enterprise leonardo matarrese
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Managing The Business Enterprise - Leonardo MatarreseTRANSCRIPT
Chapter 5
Managing the Business Enterprise
Leonardo Matarrese @MyPlick
Outline
Setting Goals and Formulating Strategy
The Management Process
Types of Managers
Basic Management Skills
Management and the Corporate CultureLeonardo Matarrese @MyPlick
Setting Goals and Formulating Strategy
Goal
Objective that a business hopes and plans to achieve
Strategy
Broad program underlying decision making process to assist managers in achieving company goals
Leonardo Matarrese @MyPlick
Setting Business Goals
Goals are performance targets—the means by which organizations and their managers measure success or failure at every level.
Leonardo Matarrese @MyPlick
Purpose of Goal Setting
Goal setting provides direction and guidance for managers at all levels.
Goal setting helps firms allocate resources.
Goal setting helps to define corporate culture.
Goal setting helps managers assess performance.
Leonardo Matarrese @MyPlick
Kinds of GoalsGoals differ from company to company, depending on the firm’s purpose and mission. Every enterprise has a purpose, or a reason for being.
Businesses seek profits, universities seek to discover and transmit new knowledge, and government agencies seek to set and enforce public policy.
Mission Statement Organization’s statement of how it will achieve its purpose in the environment in which it conducts its business
Leonardo Matarrese @MyPlick
Kinds of Goals
Long-term GoalsGoals set for an extended time, typically 5 years or more into the future
Intermediate Goals Goals set for a period of 1 to 5 years into the future
Short-term Goals Goals set for the very near future, typically less than 1 year
Regardless of a company’s purpose and mission, every firm has:
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Formulating Strategy
Strategy Formulation Creation of a broad program for defining and meeting an organization’s goals
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Strategy Formulation
Set Strategic
Goals
Analyze the Organization
Analyze the Environment
Match the Organization
and its Environment
Formulate Strategy
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Setting Strategic Goals
Strategic Goals Long-term goals derived directly from a firm’s mission statement
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Analyzing the Organization and Its Environment
Environmental AnalysisProcess of scanning the business environment for threats and opportunities
Organizational AnalysisProcess of analyzing a firm’s strengths and weaknesses
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Matching the Organization and Its Environment
Matching environmental threats and opportunities against corporate strengths and weaknesses is the final step in strategy formulation.
The matching process is the heart of strategy formulation and lays the foundation for successfully planning and conducting business.
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Hierarchy of PlansStrategic Plans
Plans reflecting decisions about resource allocations, company priorities, and steps needed to meet strategic goals
Tactical Plans
Generally short-range plans concerned with implementing specific aspects of a company’s strategic plans
Operational Plans
Plans setting short-term targets for daily, weekly, or monthly performance
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Contingency Planning andCrisis Management
Two common methods of dealing with the unknown and unforeseen are:
Contingency Planning
Crisis Management
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Contingency PlanningIs planning for change by:
– seeking to identify in advance important aspects of a business or its market that might change.
– identifying ways in which a company will respond to changes.
Many companies use computer programs for contingency planning.
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Crisis ManagementInvolves an organization’s methods for dealing with emergencies.
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The Management Process
Management is the process of planning, organizing, directing, and controlling an organization’s financial, physical, human, and information resources to achieve its goals.
Leonardo Matarrese @MyPlick
“Everybody now needs e-mail. Somebody shuts it down and we are significantly out of business .”
~ Steve White
IBM Computer-Virus Scientist
on attack of the “Love Bug”
“Everybody now needs e-mail. Somebody shuts it down and we are significantly out of business .”
~ Steve White
IBM Computer-Virus Scientist
on attack of the “Love Bug”
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The Management Process
PlanningOrganizing DirectingControlling
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Planning
what an organization needs to do and how to get it done
Organizing
how best to arrange an organization’s resources and activities into a coherent structure
Directing
guiding and motivating employees to meet an organization’s objectives
Controlling
monitoring an organization’s performance to ensure that it is meeting its goals
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Control Process
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Establish Standards
Measure Performance
Does measured performance match
standards?YES NO
Continue Current
Activities
Adjust Performance or
StandardsLeonardo Matarrese @MyPlick
Types of ManagersTop Managers
Managers responsible to the board of directors and stockholders for a firm’s overall performance and effectiveness
Middle Managers
Managers responsible for implementing the strategies, policies, and decisions made by top managers
First-line Managers
Managers responsible for supervising the work of employees
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Areas of Management
Human Resource Managers Operations Managers Marketing Managers Information Managers Financial Managers Specialized Managers
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Basic Management SkillsTechnical Skills
Skills needed to perform specialized tasks
Human Relations Skills
Skills in understanding and getting along with people
Conceptual Skills
Abilities to think in the abstract, diagnose and analyze different situations, and see beyond the present situation
Decision-making Skills
Skills in defining problems and selecting the best courses of action
Leonardo Matarrese @MyPlick
Gather facts and develop
alternatives.
Select the best alternative.
Follow up and evaluate the chosen
alternative.
The Decision-Making Process
Define the Problem
Evaluate Alternatives
Implement the chosen Alternative
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Time Management Skills
To manage time effectively, managers must address four leading causes of wasted time:– Paperwork– The Telephone– Meetings– E-mail
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Management Skills for the21st Century
Global Management Skills Management & Technology Skills
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Management & the Corporate Culture
Corporate CultureThe shared experiences, stories, beliefs, and norms that characterize an organization
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Communicating the Culture & Managing Change
Communicating the CultureMangers must: understand the culture. transmit the culture to others in the
organization. maintain the culture by rewarding and
promoting those who understand and work toward maintaining it.
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Communicating the Culture & Managing Change
Managing Change – Three Stages At the highest level, analysis of the company’s
environment highlights extensive change as the most effective response to its problems.
Top management begins to formulate a vision of a new company.
The firm sets up new systems for appraising and compensating employees that enforce its new values.
Leonardo Matarrese @MyPlick