MANAGING BUSINESS ENTERPRISE Lecture Note for Business Introduction Fahmy Radhi

Management Process The process of planning, organizing, directing and controlling an organization’s resources to achieve its goals Management is needed to: achieve individual and organizational goals prevent contradiction goals achieve goals efficiently and effectively

The process of planning, organizing, directing and controlling an organization’s resources to achieve its goals

Management is needed to:

achieve individual and organizational goals

prevent contradiction goals

achieve goals efficiently and effectively

Planning The process of setting goals and deciding on the strategy and tactic of achieving the firm’s objectives Main component of Planning: Determine the firm’s goals Develop a comprehensive strategy for achieving goals Design tactical and operational plans for implementing strategy

The process of setting goals and deciding on the strategy and tactic of achieving the firm’s objectives

Main component of Planning:

Determine the firm’s goals

Develop a comprehensive strategy for achieving goals

Design tactical and operational plans for implementing strategy

Setting Goals and Formulating Strategy

Setting Goals and Formulating Strategy Mission – broad organizational goal based on planning premises which justifies an organizational existence Goal – objective that a business hopes and plans to achieve divided into Long-term goals – a period of five years or more Intermediate goals – a period of one to five years Short-term goals - less than one year

Mission – broad organizational goal based on planning premises which justifies an organizational existence

Goal – objective that a business hopes and plans to achieve divided into

Long-term goals – a period of five years or more

Intermediate goals – a period of one to five years

Short-term goals - less than one year

Vision 3M: “Be innovative and satisfy our customers” Microsoft: “Information at your fingertips” GE: To be number one or two in every business” Federal Express: “When it absolutely, positively, must get there overnight, use FedEx”

3M: “Be innovative and satisfy our customers”

Microsoft: “Information at your fingertips”

GE: To be number one or two in every business”

Federal Express: “When it absolutely, positively, must get there overnight, use FedEx”

Mission Polaroid Corp. (late 1970s) Polaroid manufactures and sell photographic products based ion inventions of the company in the field of one-step instants photography and light polarizing products, utilizing the company’s inventions in the field of polarized light. The company considers itself to be engaged in one line of business Polaroid Corp. (mid 1980s) Polaroid designs, manufactures, and markets worldwide a variety of products based on inventions, primarily in the photographic field. These include instant photographic cameras and films, light polarizing filters and lenses, and diversified chemical, optical, and commercial products. The principal products of the company are used in amateur and professional photography, industry, science, medic, and education

Polaroid Corp. (late 1970s)

Polaroid manufactures and sell photographic products based ion inventions of the company in the field of one-step instants photography and light polarizing products, utilizing the company’s inventions in the field of polarized light. The company considers itself to be engaged in one line of business

Polaroid Corp. (mid 1980s)

Polaroid designs, manufactures, and markets worldwide a variety of products based on inventions, primarily in the photographic field. These include instant photographic cameras and films, light polarizing filters and lenses, and diversified chemical, optical, and commercial products. The principal products of the company are used in amateur and professional photography, industry, science, medic, and education

Setting Goals and Formulating Strategy Strategy – broad set of organizational plans for implementing the decisions mode for achieving organizational goals Types of Strategy: Corporate strategy – firm level strategy Business strategy – business unit or product-line level Functional strategy – functional area level

Strategy – broad set of organizational plans for implementing the decisions mode for achieving organizational goals

Types of Strategy:

Corporate strategy – firm level strategy

Business strategy – business unit or product-line level

Functional strategy – functional area level

Setting Goals and Formulating Strategy

Setting Goals and Formulating Strategy Measurable criteria for performance Deficient of Annual Objective Reducing employees turnover, absenteeism, number of reject by 10 percent by December 2003 Assumption: Morale is related to measurable outcome To improve morale in the division Conducting a public opinion poll on dimensions of corporate responsibility by October 2003 To improve the business’s image

Organizing Organizing - the process of arranging the resources of the firm and activities into a coherent organizational structure Organizational Structure – specification of the jobs and the way in which an organization activities are divided, organized and coordinated

Organizing - the process of arranging the resources of the firm and activities into a coherent organizational structure

Organizational Structure – specification of the jobs and the way in which an organization activities are divided, organized and coordinated

Organizing Organization Chart – diagram depicting a firm’s structure that s hows the title of each positions, the connecting lines and responsible Span of management control – the number of subordinates reporting directly to a given manager

Organization Chart – diagram depicting a firm’s structure that s hows the title of each positions, the connecting lines and responsible

Span of management control – the number of subordinates reporting directly to a given manager

Organizational Structure Line Organization - an organization structure in which each manager is directly responsible for a crucial activities required to accomplish the organization goals Departmental Organization - t he process through which a firm’s activities are grouped together and assigned to managers

Line Organization - an organization structure in which each manager is directly responsible for a crucial activities required to accomplish the organization goals

Departmental Organization - t he process through which a firm’s activities are grouped together and assigned to managers

Departmentalization Functional –divided into engaged in one functional activity: Marketing, Production Product – based on specific products Market – based on geographical market Customer – based on types of customers Matrix Structure –each employee report to both functional and division manager

Functional –divided into engaged in one functional activity: Marketing, Production

Product – based on specific products

Market – based on geographical market

Customer – based on types of customers

Matrix Structure –each employee report to both functional and division manager

Functional and Departmentalization

Matrix Structure

Directing Directing – management process of leading and motivating employees to meet an organization objective Leadership – The process of directing and influencing the task related activities of individual Motivation – the factor that cause and sustain an individual’s behavior

Directing – management process of leading and motivating employees to meet an organization objective

Leadership – The process of directing and influencing the task related activities of individual

Motivation – the factor that cause and sustain an individual’s behavior

Controlling Controlling – the process of monitoring and evaluation an organization’s performance to ensure that it is meeting its goals Control is needed to cope with changes internally and externally, faced more organizational, complexity, facilitate delegation and teamwork, create better quality and add value

Controlling – the process of monitoring and evaluation an organization’s performance to ensure that it is meeting its goals

Control is needed to

cope with changes internally and externally,

faced more organizational, complexity,

facilitate delegation and teamwork,

create better quality and add value

Steps in Control Process: Establish standards: Physical, products quantities, Monetary and time Time Establish methods for measuring performance by determining: how often and what form in measuring, and who are involved Measure the performance through observations, reporting analysis, inspection and automatically methods Determine whether performance matches the standard Take correction actions

Establish standards: Physical, products quantities, Monetary and time Time

Establish methods for measuring performance by determining: how often and what form in measuring, and who are involved

Measure the performance through observations, reporting analysis, inspection and automatically methods

Determine whether performance matches the standard

Take correction actions

Level of Management Top manager – responsible to the board of director and stockholder for overall firm’s performance Middle manager – responsible to top manager for implementing the strategies and policy First-line manager – responsible to middle manager for supervising the works of employees

Top manager – responsible to the board of director and stockholder for overall firm’s performance

Middle manager – responsible to top manager for implementing the strategies and policy

First-line manager – responsible to middle manager for supervising the works of employees

Managerial Skills Technical Skills – needed to perform specialized tasks Human relations Skills – needed to understanding and getting along with people Conceptual Skills – abilities to think in abstract, diagnose and analyze different situations Decision Making Skills - abilities in defining problems and selecting the best problem solving

Technical Skills – needed to perform specialized tasks

Human relations Skills – needed to understanding and getting along with people

Conceptual Skills – abilities to think in abstract, diagnose and analyze different situations

Decision Making Skills - abilities in defining problems and selecting the best problem solving

Skills Required Low Low Medium High First-line Medium Medium Medium Medium Middle High High High Low TOP Decision Making Conceptual Human Relation Technical

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