Managing The Business Enterprise Leonardo Matarrese

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


Setting Business Goals

Goals are performance targets—the means by which organizations and their managers measure success or failure at every level.


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.


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


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:


Formulating Strategy

Strategy Formulation Creation of a broad program for defining and meeting an organization’s goals


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


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


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.


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


Contingency Planning andCrisis Management

Two common methods of dealing with the unknown and unforeseen are:

Contingency Planning

Crisis Management


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.


Crisis ManagementInvolves an organization’s methods for dealing with emergencies.



Management is the process of planning, organizing, directing, and controlling an organization’s financial, physical, human, and information resources to achieve its goals.


“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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PlanningOrganizing DirectingControlling


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


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


Areas of Management

Human Resource Managers Operations Managers Marketing Managers Information Managers Financial Managers Specialized Managers


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


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


Time Management Skills

To manage time effectively, managers must address four leading causes of wasted time:– Paperwork– The Telephone– Meetings– E-mail


Management Skills for the21st Century

Global Management Skills Management & Technology Skills


Management & the Corporate Culture

Corporate CultureThe shared experiences, stories, beliefs, and norms that characterize an organization


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.


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.


Managing The Business Enterprise Leonardo Matarrese

Business

Transcript of Managing The Business Enterprise Leonardo Matarrese