Managing The Business Enterprise Leonardo Matarrese


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Managing The Business Enterprise - Leonardo Matarrese

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Managing The Business Enterprise Leonardo Matarrese

  1. 1. Chapter 5 Managing the Business Enterprise Leonardo Matarrese @MyPlick
  2. 2. Outline <ul><li>Setting Goals and Formulating Strategy </li></ul><ul><li>The Management Process </li></ul><ul><li>Types of Managers </li></ul><ul><li>Basic Management Skills </li></ul><ul><li>Management and the Corporate Culture </li></ul>Leonardo Matarrese @MyPlick
  3. 3. Setting Goals and Formulating Strategy <ul><li>Goal </li></ul><ul><ul><li>Objective that a business hopes and plans to achieve </li></ul></ul><ul><li>Strategy </li></ul><ul><ul><li>Broad program underlying decision making process to assist managers in achieving company goals </li></ul></ul>Leonardo Matarrese @MyPlick
  4. 4. Setting Business Goals <ul><li>Goals are performance targets—the means by which organizations and their managers measure success or failure at every level. </li></ul>Leonardo Matarrese @MyPlick
  5. 5. Purpose of Goal Setting <ul><li>Goal setting provides direction and guidance for managers at all levels. </li></ul><ul><li>Goal setting helps firms allocate resources. </li></ul><ul><li>Goal setting helps to define corporate culture. </li></ul><ul><li>Goal setting helps managers assess performance. </li></ul>Leonardo Matarrese @MyPlick
  6. 6. Kinds of Goals <ul><li>Goals differ from company to company, depending on the firm’s purpose and mission. Every enterprise has a purpose , or a reason for being. </li></ul><ul><li>Businesses seek profits, universities seek to discover and transmit new knowledge, and government agencies seek to set and enforce public policy. </li></ul><ul><li>Mission Statement   </li></ul><ul><ul><li>Organization’s statement of how it will achieve its purpose in the environment in which it conducts its business </li></ul></ul>Leonardo Matarrese @MyPlick
  7. 7. Kinds of Goals <ul><li>Regardless of a company’s purpose and mission , every firm has: </li></ul><ul><li>Long-term Goals </li></ul><ul><ul><li>Goals set for an extended time, typically 5 years or more into the future </li></ul></ul><ul><li>Intermediate Goals  </li></ul><ul><ul><li>Goals set for a period of 1 to 5 years into the future </li></ul></ul><ul><li>Short-term Goals  </li></ul><ul><ul><li>Goals set for the very near future, typically less than 1 year </li></ul></ul>Leonardo Matarrese @MyPlick
  8. 8. Formulating Strategy <ul><li>Strategy Formulation  </li></ul><ul><ul><li>Creation of a broad program for defining and meeting an organization’s goals </li></ul></ul>Leonardo Matarrese @MyPlick
  9. 9. Strategy Formulation Set Strategic Goals Analyze the Organization Analyze the Environment Formulate Strategy 5 - Leonardo Matarrese @MyPlick Match the Organization and its Environment
  10. 10. Setting Strategic Goals <ul><li>Strategic Goals   </li></ul><ul><ul><li>Long-term goals derived directly from a firm’s mission statement </li></ul></ul>Leonardo Matarrese @MyPlick
  11. 11. Analyzing the Organization and Its Environment <ul><li>Environmental Analysis </li></ul><ul><ul><li>Process of scanning the business environment for threats and opportunities </li></ul></ul><ul><li>Organizational Analysis </li></ul><ul><ul><li>Process of analyzing a firm’s strengths and weaknesses </li></ul></ul>Leonardo Matarrese @MyPlick
  12. 12. Matching the Organization and Its Environment <ul><li>Matching environmental threats and opportunities against corporate strengths and weaknesses is the final step in strategy formulation. </li></ul><ul><li>The matching process is the heart of strategy formulation and lays the foundation for successfully planning and conducting business. </li></ul>Leonardo Matarrese @MyPlick
  13. 13. Hierarchy of Plans <ul><li>Strategic Plans   </li></ul><ul><ul><li>Plans reflecting decisions about resource allocations, company priorities, and steps needed to meet strategic goals </li></ul></ul><ul><li>Tactical Plans  </li></ul><ul><ul><li>Generally short-range plans concerned with implementing specific aspects of a company’s strategic plans </li></ul></ul><ul><li>Operational Plans  </li></ul><ul><ul><li>Plans setting short-term targets for daily, weekly, or monthly performance </li></ul></ul>Leonardo Matarrese @MyPlick
  14. 14. Contingency Planning and Crisis Management <ul><li>Two common methods of dealing with the unknown and unforeseen are: </li></ul><ul><li>Contingency Planning </li></ul><ul><li>Crisis Management </li></ul>Leonardo Matarrese @MyPlick
  15. 15. Contingency Planning <ul><li>Is planning for change by: </li></ul><ul><ul><li>seeking to identify in advance important aspects of a business or its market that might change. </li></ul></ul><ul><ul><li>identifying ways in which a company will respond to changes. </li></ul></ul><ul><li>Many companies use computer programs for contingency planning. </li></ul>Leonardo Matarrese @MyPlick
  16. 16. Crisis Management <ul><li>Involves an organization’s methods for dealing with emergencies. </li></ul>Leonardo Matarrese @MyPlick
  17. 17. The Management Process <ul><li>Management is the process of planning, organizing, directing, and controlling an organization’s financial, physical, human, and information resources to achieve its goals. </li></ul>Leonardo Matarrese @MyPlick
  18. 18. <ul><li>“ Everybody now needs e-mail. Somebody shuts it down and we are significantly out of business .” </li></ul><ul><ul><li>~ Steve White </li></ul></ul><ul><ul><li>IBM Computer-Virus Scientist </li></ul></ul><ul><ul><li>on attack of the “Love Bug” </li></ul></ul>5 - Leonardo Matarrese @MyPlick
  19. 19. The Management Process <ul><li>Planning </li></ul><ul><li>Organizing </li></ul><ul><li>Directing </li></ul><ul><li>Controlling </li></ul>Leonardo Matarrese @MyPlick
  20. 20. <ul><li>Planning </li></ul><ul><li>what an organization needs to do and how to get it done </li></ul><ul><li>Organizing </li></ul><ul><ul><li>how best to arrange an organization’s resources and activities into a coherent structure </li></ul></ul><ul><li>Directing </li></ul><ul><ul><li>guiding and motivating employees to meet an organization’s objectives </li></ul></ul><ul><li>Controlling </li></ul><ul><ul><li>monitoring an organization’s performance to ensure that it is meeting its goals </li></ul></ul>Leonardo Matarrese @MyPlick
  21. 21. Control Process 5 - Establish Standards Measure Performance Does measured performance match standards? YES NO Continue Current Activities Adjust Performance or Standards Leonardo Matarrese @MyPlick
  22. 22. Types of Managers <ul><li>Top Managers </li></ul><ul><ul><li>Managers responsible to the board of directors and stockholders for a firm’s overall performance and effectiveness </li></ul></ul><ul><li>Middle Managers </li></ul><ul><ul><li>Managers responsible for implementing the strategies, policies, and decisions made by top managers </li></ul></ul><ul><li>First-line Managers </li></ul><ul><ul><li>Managers responsible for supervising the work of employees </li></ul></ul>Leonardo Matarrese @MyPlick
  23. 23. Areas of Management <ul><li>Human Resource Managers </li></ul><ul><li>Operations Managers </li></ul><ul><li>Marketing Managers </li></ul><ul><li>Information Managers </li></ul><ul><li>Financial Managers </li></ul><ul><li>Specialized Managers </li></ul>Leonardo Matarrese @MyPlick
  24. 24. Basic Management Skills <ul><li>Technical Skills  </li></ul><ul><ul><li>Skills needed to perform specialized tasks </li></ul></ul><ul><li>Human Relations Skills  </li></ul><ul><ul><li>Skills in understanding and getting along with people </li></ul></ul><ul><li>Conceptual Skills  </li></ul><ul><ul><li>Abilities to think in the abstract, diagnose and analyze different situations, and see beyond the present situation </li></ul></ul><ul><li>Decision-making Skills  </li></ul><ul><ul><li>Skills in defining problems and selecting the best courses of action </li></ul></ul>Leonardo Matarrese @MyPlick
  25. 25. The Decision-Making Process Gather facts and develop alternatives. Select the best alternative. Follow up and evaluate the chosen alternative. Define the Problem Evaluate Alternatives Implement the chosen Alternative Leonardo Matarrese @MyPlick
  26. 26. Time Management Skills <ul><li>To manage time effectively, managers must address four leading causes of wasted time: </li></ul><ul><ul><li>Paperwork </li></ul></ul><ul><ul><li>The Telephone </li></ul></ul><ul><ul><li>Meetings </li></ul></ul><ul><ul><li>E-mail </li></ul></ul>Leonardo Matarrese @MyPlick
  27. 27. Management Skills for the 21 st Century <ul><li>Global Management Skills </li></ul><ul><li>Management & Technology Skills </li></ul>Leonardo Matarrese @MyPlick
  28. 28. Management & the Corporate Culture <ul><li>Corporate Culture </li></ul><ul><ul><li>The shared experiences, stories, beliefs, and norms that characterize an organization </li></ul></ul>Leonardo Matarrese @MyPlick
  29. 29. Communicating the Culture & Managing Change <ul><li>Communicating the Culture </li></ul><ul><li>Mangers must: </li></ul><ul><li>understand the culture. </li></ul><ul><li>transmit the culture to others in the organization. </li></ul><ul><li>maintain the culture by rewarding and promoting those who understand and work toward maintaining it. </li></ul>Leonardo Matarrese @MyPlick
  30. 30. Communicating the Culture & Managing Change <ul><li>Managing Change – Three Stages </li></ul><ul><li>At the highest level, analysis of the company’s environment highlights extensive change as the most effective response to its problems. </li></ul><ul><li>Top management begins to formulate a vision of a new company. </li></ul><ul><li>The firm sets up new systems for appraising and compensating employees that enforce its new values. </li></ul>Leonardo Matarrese @MyPlick