Download Business Essentials, 7th Edition Ebert/Griffin

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chapter
Business Management
Business Essentials, 7th Edition
Ebert/Griffin
Instructor Lecture PowerPoints
PowerPoint Presentation prepared by
© 2009 Pearson Education, Inc.
Carol Vollmer Pope Alverno College
Who Are Managers?
• Good Managers
– Are responsible for business performance
and effectiveness
• Effective—do the right things; achieve goals
• Efficient—do things right; lower costs
– Are accountable to all key stakeholders
• Develop strategic plans and tactical plans
• Analyze their competitive environments and
plan, organize, direct, and control day-to-day
operations
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The Management Process
• Management
– The process of planning, organizing, leading, and
controlling a firm’s financial, physical, human,
and information resources to achieve its goals
Planning
Setting Goals
Controlling
Organizing
Monitoring Performance
Structuring
Leading
Guiding and Motivating
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Planning
• The Planning Process
– Determining firm’s goals
– Developing strategy for achieving goals
– Designing tactical and operational plans for
implementing the strategy
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Organizing
• The Organizing Process
– Arranging resources and activities in a
coherent structure
• Prepare organizational charts to help everyone
understand roles and reporting relationships
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Leading
• Leading
– Guiding and motivating employees to meet the
organization’s objectives
• Uniting employees in a clear and targeted manner and
motivating them to work in the best interests of the
employer
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Controlling
• The Controlling Process
– Monitoring a firm’s performance to make sure
that it is meeting its goals
• Begins when management establishes standards,
often for financial performance
• Can serve as a basis for providing rewards or reducing
costs
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FIGRE 5.1 The Control Process
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Types of Managers
• Levels of Management
– Top managers: Responsible for the overall performance of
the firm
• President, vice president, treasurer, CEO, CFO
– Middle managers: Implement strategies and work toward
goals set by top managers
• Plant manager, operations manager, division manager
– First-line managers: Work with and supervise employees
• Supervisor, office manager, project manager, group
leader
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Areas of Management
Human
Resources
Operations
Marketing
Information
Financial
Other
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Basic Management Skills
Technical
Skills
Human
Relations
Skills
Conceptual
Skills
timemanagement
skills
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DecisionMaking
Skills
time-management skills
• Four leading time wasters:
– Paperwork
– Telephone calls
– Meetings
– E-mail
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Management Skills for the 21st Century
• Global Management Skills
– Understand foreign markets, cultural differences,
and the motives and practices of foreign rivals
– Understand how to collaborate with others
around the world on a real-time basis
• Management and Technology
Skills
– Needed to process increasing
amounts of information
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Strategic Management:
Setting Goals and Formulating Strategy
• Strategic Management
– The process of helping an organization maintain an
effective alignment with its environment
• Goals
– Starting point in effective strategic management
– Objectives that a business hopes and plans to achieve
• Strategy
– The broad set of action plans to achieve company goals
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Setting Business Goals
• Goals
– Performance targets that organizations and their managers
use to measure success or failure
• Mission Statement
– A statement of how a business will achieve its fundamental
purpose
• Effective organizations set goals at many different
levels:
– Long-term goals: five years or more
– Intermediate goals: one to five years
– Short-term goals: one year or less
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Purposes of Goal Setting
• Goal Setting:
– Provides direction and guidance for managers at
all levels
– Helps firms allocate resources
– Helps to define corporate culture
– Helps managers assess performance
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Types of Strategy
• Corporate Strategy
– Determines what business or businesses a company will
own and operate
– Growth
• Related diversification
• Unrelated diversification
– Retrenchment
• Downsizing and divestiture
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Types of Strategy (cont’d)
• Business (or Competitive) Strategy
– Focuses on improving the company’s competitive position
at the level of the business unit or
product line
• Functional Strategy
– Guides managers in specific areas such as marketing,
finance, and operations in deciding how best to achieve
corporate goals by performing their functional activities
most effectively
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Formulating Strategy
Step 1: Setting Strategic Goals
– Strategic goals are derived from a firm’s mission
statement
Step 2: Analyzing the Organization and the Environment: SWOT
Analysis
– Assessing internal strengths and weaknesses and
external opportunities and threats
• Environmental analysis
• Organizational analysis
Step 3: Matching the Organization and Its Environment
– Matching environmental threats and opportunities
against corporate strengths and weaknesses
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Figure 5.2 Strategy Formulation
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A Hierarchy of Plans
• Strategic Plans
– Reflect decisions about resource allocations,
company priorities, and the steps needed to meet
strategic goals
• Tactical Plans
– Shorter-term plans for implementing specific
aspects of the company’s strategic plans
• Operational Plans
– Mid-level and lower-level managers set shortterm targets for daily, weekly, or monthly
performance © 2009 Pearson Education, Inc.
Contingency Planning and Crisis Management
• Contingency Planning
– Planning for change
– Seeks to identify in advance important aspects of
a business or its market that might change and the
ways in which a company will respond to changes
• Crisis Management
– Involves an organization’s methods for dealing
with a crisis—an unexpected emergency requiring
immediate response
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Management and the Corporate Culture
• Corporate Culture
– Is the shared experiences, stories, beliefs, and
norms that characterize an organization
– Helps define the work and business climate that
exists in an organization
• Communicating the Culture
– Managers must understand the culture
– Managers must transmit the culture to others in
the organization
– Managers can support the culture by rewarding
and promoting those who understand it and
work toward maintaining it
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Managing Change in the Culture
• Stages in the Change Process
– 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 who enforce the firm’s new
values.
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