Term
| 5 reasons diversity makes business sense |
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Definition
1. avoid costly lawsuitss, any negatives
2. diversity provides a variety of points of view
3. diverse firms are innovative
4. diverse firms attract and maintain (retain) the most valuable employees
5. diverse firms are more tuned into demands of diverse customer base |
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Term
| how to better address diversity (7 things) |
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Definition
1. honest evaluation of where you stand today
2. inform employees about diversity
3. convey that diversity is a valuable goal
4. allow diverse employees to coordinate and collaborate together.
5. admit resources to support diversity (money, time, space)
6. support diversity in local community
7. you be a leader by serving, being a role model |
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Term
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Definition
| routine, virtually automatic decision making that follows established guidelines where we made similar choices before |
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Term
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Definition
| process by which people respond to opportunities and threats by 1) choosing goals 2) analyzing options 3) selecting course of action |
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Term
| non-program decision making |
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Definition
| non routine decisions that occur in response to unusual, unpredictable and unique opportunities and threats when there are no rules to follow, when we have ambiguous/uncertain infor and when we use intuition, judgement and discernment |
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Term
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Definition
| assumes you can identify and evaluate all possible alternatives and their consequences; assumes we can rationally logically and analytically choose best course of action |
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Term
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Definition
| (more realistic) world is uncertain and risky. People subject to bound rationality because of this engage in satisfying (take first good enough option) |
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Term
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Definition
bias when group members feel must agree.
-more likely when: emotional situation, pressure for agreement, culture doesn't tolerate diversity, innovation, or criticism |
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Term
| right way to be devils advocate |
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Definition
>someone appointed for meeting
>role: to point out problems in way choose alternatives
>defend unpopular ideas
>critique the process of choosing among alternatives |
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Term
| pathway that leads to creativity/innovation... |
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Definition
| security>teachable>learning>creativity>innovation |
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Term
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Definition
| the ability to discover new and novel ideas and and courses of action |
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Term
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Definition
| the implementation and commercialization of creative ideas |
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Term
| 3 techniques to promote creativity |
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Definition
1. provide employees with opportunity and ability to take risk
2. risk implies people will fail
3.if people fail, you as manager must reward failure |
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Term
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Definition
>not ethical violation
>employee can explain what happened
>employee learned lesson
>do not repeat the failure |
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Term
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Definition
>must be in the same room
>give crazy, wrong suggestions
>team members not allowed to critique suggestions when proposed
>write ideas on the board
>must say pro/con about each proposal |
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Term
| how to create a mission statement |
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Definition
answer important questions:
1. who-are my target customers?
2. why-are we in the business?
3. What-types of products/services?
4. Where-will we operate?
5. How-will we position ourselves relative to the competition? |
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Term
| types of corporate strategies |
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Definition
1. concentration (focus) strategy
2. diversification strategy
3. vertical integration strategy
4. international expansion
5.low cost (cost leader) strategy
6. differentiation strategy |
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Term
| concentration (focus) strategy (#1) |
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Definition
-single or narrow range of products, one thing well
-small or new companies
-ex: early coca-cola, McDonalds, Walmart |
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Term
| diversification strategy (#2) |
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Definition
related diversification:
-many related products to create synergy
-ex: proctor and gamble
unrelated diversification
-ex: general electric
-minimize risk
-unrelated firms, difficult to manage |
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Term
| vertical integration strategy (#3) |
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Definition
doing 6 activities of value-chain (PTHPDS)
1. procuring: access to rare resources
2. transforming: raw materials to something useful
3. holding: until the time needed
4. promoting: through marketing
5. distributing: where and when customer needs
6. service: can be profitable
transforming the heart of the process:
transforming the heart of the process:
a. backward vertical integration: buying raw materials
b. forward vertical: begin selling whats produced
get to control/aimed at increasing profits |
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Term
| international expansion (#4) |
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Definition
multidomestic strategy:
-customize product for every local culture; more effective, personal products
-fundamental question: to what extent customize products for different national cultures vs.standardising our product worldwide for global efficiency?
>global strategy:
-make standard product for all
-most efficient, industrial products |
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Term
| low cost (cost leader) strategy (#5) |
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Definition
-mass produce, focus on efficiency
-profit margin is thin on each item but sells many products |
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Term
| differentiation strategy (#6) |
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Definition
| focus on effectiveness; high profit margins, but low amount of products |
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Term
| decision making (pyramid) |
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Definition
| top=centralized-->bottom=effective |
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Term
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Definition
| top=formal-->bottom=flexible |
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Term
| order of levels of pyramid |
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Definition
| (top to bottom) ceo, executives, managers, supervisors, workers |
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Term
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Definition
1. functional, new companies, single product
2. product
3. divisional
4. geographic, international, domestic
5=customer: service firms
6=knowledge base: matrix; based on function, product, geography |
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