Slide 1: Chapter 5
Managing the Business Enterprise
Leonardo Matarrese @MyPlick
Slide 2: Outline
Setting Goals and Formulating Strategy The Management Process Types of Managers Basic Management Skills Management and the@MyPlick Corporate Culture Leonardo Matarrese
Slide 3: 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 @MyPlick Leonardo Matarrese goals
Slide 4: 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
Slide 5: 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
Slide 6: Kinds of Goals
Goals 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
Slide 7: Kinds of Goals
Long-term Goals
Regardless of a company’s purpose and mission, every firm has:
Goals 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
Leonardo Matarrese @MyPlick
Slide 8: Formulating Strategy
Strategy Formulation Creation of a broad program for defining and meeting an organization’s goals
Leonardo Matarrese @MyPlick
Slide 9: Strategy Formulation
Analyze the Organization Set Strategic Goals Analyze the Environment Match the Organization and its Environment Formulate Strategy
Leonardo Matarrese @MyPlick
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Slide 10: Setting Strategic Goals
Strategic Goals Long-term goals derived directly from a firm’s mission statement
Leonardo Matarrese @MyPlick
Slide 11: Analyzing the Organization and Its Environment
Environmental Analysis Process of scanning the business environment for threats and opportunities Organizational Analysis Process of analyzing a firm’s strengths and weaknesses
Leonardo Matarrese @MyPlick
Slide 12: 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.
Leonardo Matarrese @MyPlick
Slide 13: Leonardo Matarrese @MyPlick
Hierarchy of Plans
Strategic 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
Slide 14: Contingency Planning and Crisis Management
Two common methods of dealing with the unknown and unforeseen are: Contingency Planning Crisis Management
Leonardo Matarrese @MyPlick
Slide 15: Contingency Planning
Is 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.
Leonardo Matarrese @MyPlick
Slide 16: Crisis Management
Involves an organization’s methods for dealing with emergencies.
Leonardo Matarrese @MyPlick
Slide 17: 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
Slide 18: “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”
Leonardo Matarrese @MyPlick
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Slide 19: The Management Process
Planning Organizing Directing Controlling
Leonardo Matarrese @MyPlick
Slide 20: Leonardo Matarrese @MyPlick
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
Slide 21: Control Process
Establish Standards
Measure Performance Does measured performance match standards?
YES
NO
Continue Current Activities
Leonardo Matarrese @MyPlick
Adjust Performance or Standards
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Slide 22: Leonardo Matarrese @MyPlick
Types of Managers
Top 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
Slide 23: Areas of Management
Human Resource Managers Operations Managers Marketing Managers Information Managers Financial Managers Specialized Managers
Leonardo Matarrese @MyPlick
Slide 24: Leonardo Matarrese @MyPlick
Basic Management Skills
Technical 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
Slide 25: The Decision-Making Process
Define the Problem Gather facts and develop alternatives.
Evaluate Alternatives Select the best alternative.
Implement the chosen Alternative Follow up and evaluate the chosen alternative.
Leonardo Matarrese @MyPlick
Slide 26: 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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Slide 27: Management Skills for the 21st Century
Global Management Skills Management & Technology Skills
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Slide 28: Management & the Corporate Culture
Corporate Culture
The shared experiences, stories, beliefs, and norms that characterize an organization
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Slide 29: Communicating the Culture & Managing Change
Communicating the Culture
Mangers 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.
Leonardo Matarrese @MyPlick
Slide 30: 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
