Managing the Business Enterprise

7/21/2019 Managing the Business Enterprise

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Copyright 2004 Prentice Hall, Inc.1B

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PART 2

UNDERSTANDINGTHE BUSINESS OF

MANAGING


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CHAPTER 6

Managing theBusiness Enterprise


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Chapter Outline

Who Are Managers?

Setting Goals an !or"#lating Strategy

$he Manage"ent Process

$ypes o% Managers

&asic Manage"ent S'ills

Manage"ent an the Corporate C#lt#re


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Who Are Managers?

All corporations epen on

e%%ecti(e "anage"ent.

$he principles o%managementapply to all

'ins o% organi)ations.

Managers are a"ong anorgani)ation*s "ost

i"portant reso#rces.


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!hat Are G"a#s$

O%&e'ti(es that a

%usiness h"pes an)p#ans t" a'hie(e


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!hat Is Strateg*$

Br"a) set "+"rgani,ati"na# p#ans +"ri-p#e-enting the)e'isi"ns -a)e +"ra'hie(ing "rgani,ati"na#g"a#s


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Types of Strategy

Corporate strategyeter"ines the %ir"*so(erall attit#e toar groth an the ay itill "anage its -#sinesses or pro#ct lines

Businessor Competitive/ strategyta'es

place at the -#siness#nit or pro#ctline le(elan %oc#ses on a %ir"*s co"petiti(e position

Functional strategyin(ol(es "anagers inspeci%ic areas ho ecie ho -est

to achie(e corporate goalsthro#gh pro#cti(ity


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Hierarchy of Strategy


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urposes of !oal Setting

1. Goal settingpro(ies irection ang#iance %or "anagers at all le(els.

2. Goal settinghelps %ir"s allocatereso#rces.

3. Goal settinghelps to e%ine corporatec#lt#re.

4. Goal settinghelps "anagers assessper%or"ance.


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!hat Is a Missi"nState-ent$

Organi,ati"n.sstate-ent "+

h"/ it /i##a'hie(e itspurposein theen(ir"n-ent in/hi'h it

'"n)u'ts its


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"in#s of !oals

$ong%term goalsare set %or anetene ti"e, typically %i(e years

or "ore

&nterme#iate goalsare set %or a perioo% one to %i(e years

Short%term goalsare set %or the (ery

near %#t#re, typically less than one year



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!hat Is Strateg*F"r-u#ati"n$

Creati"n "+ a %r"a)

pr"gra- +"r )e0ningan) -eeting an

"rgani,ati"n.s g"a#s


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Strategy Formulation


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Setting Strategic !oals

Strategic goalsare longter" goals

eri(e irectly %ro" a %ir"*s "ission

state"ent SWOTanalysis is a process in(ol(ing

the assess"ent o% organi)ational

strengths an ea'nesses the San

W/ an en(iron"ental opport#nities

an threats the Oan T/



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Analy'ing the Organi'ation an#&ts (nvironment

(nvironmental analysisis the process

o% scanning the -#siness en(iron"ent

%or threats an opport#nities

Organi'ational analysisis the processo% analy)ing a %ir"*s strengths an

ea'nesses



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Matching the Organi'ation an#&ts (nvironment

$he matching processis the heart o%

strategy %or"#lation.

$he matching process"ayeter"ine hether a %ir" typically

ta'es ris's or -eha(es "ore

conser(ati(ely.


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A Hierarchy of lans

Strategic plansre%lect ecisions a-o#t

reso#rce allocations, co"pany priorities

an steps neee to "eet strategic goals

Tactical plansare shorterrange plans %or

i"ple"enting speci%ic aspects o% the

co"pany*s strategic plans

Operational plansset shortter" targets

%or aily, ee'ly or "onthly per%or"ance



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Contingency lanning an#Crisis Management

Contingency planningienti%iesaspects o% a -#siness or its en(iron"ent

that "ight entail changes in strategy

Crisis managementin(ol(es anorgani)ation*s "ethos %or ealing ith

e"ergencies



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!hat Is Manage-ent$

Pr"'ess "+p#anning1

"rgani,ing1)ire'ting an)'"ntr"##ing an"rgani,ati"n.sres"ur'es t"

a'hie(e its g"a#s


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The Management rocess

lanningeter"ines hat an organi)ation

nees to o an ho -est to get it one

Organi'ing eter"ines ho -est to arrange an

organi)ation*s reso#rces an acti(ities into acoherent str#ct#re

)irectingin(ol(es g#iing an "oti(ating

e"ployees to "eet an organi)ation*s o-7ecti(es

Controlling"onitors an organi)ation*s

per%or"ance to "a'e s#re that the %ir" is

"eeting its goals


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The Control rocess


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Types of Managers

Top managersare responsi-le to the -oaro% irectors an stoc'holers %or a %ir"*so(erall per%or"ance an e%%ecti(eness

Mi##le managersare responsi-le %ori"ple"enting the strategies, policies anecisions "ae -y top "anagers

First%line managersare responsi-le %or

s#per(ising the or' o% e"ployees


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Areas of Management

Human *esource Managers

Operations Managers

Mar+eting Managers &nformation Managers

Financial Managers

Other Managers


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Basic Management S+ills

Technical s+illsare neee to per%or" speciali)etas's

Human relationss+illsare re8#ire in#nerstaning an getting along ith other people

Conceptual s+illsare a-ilities to thin' in thea-stract, iagnose an analy)e i%%erent sit#ationsan to see -eyon the present sit#ation

)ecision%ma+ing s+illsincl#e the a-ility to

e%ine pro-le"s an select the -est co#rse o%action

Time management s+illsare associate ith thepro#cti(e #se o% ti"e


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The )ecision%Ma+ing rocess

M t S+ill f th


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Management S+ills for the,-stCentury

!lo.al management s+illsincl#e the

nee to #nerstan %oreign "ar'ets,

c#lt#ral i%%erences an the "oti(es an

practices o% %oreign ri(als Management an# technology s+ills

re%er to the a-ility to process, organi)e

an interpret a ealth o% ata an

in%or"ation


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!hat Is C"rp"rateCu#ture$

The share)

eperien'es1 st"ries1%e#ie+s an) n"r-sthat 'hara'teri,e an

"rgani,ati"n


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Communicating the Culture

Managers "#st9

:nerstan the c#lt#re.

$rans"it the c#lt#re to othersin the organi)ation.

Maintain the c#lt#re -y rearing an

pro"oting those ho #nerstan it an

or' toar "aintaining it.


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Managing Change

$hreestage process9

Analysis of the companys environment

highlights extensive change as the most

effective response to its prolems.

Top management egins to form!late a vision

of a ne" company.

The firm sets !p ne" systems for appraisingan# compensating employees "ho enforce

the firms ne" val!es.

Documents

Managing the Business Enterprise