FSG NOTES: CHAPTER 6 & 7 BUSINESS STRATEGY & MANAGERS AND MANAGING

A Company's goals and mission statement:

Think of a company. What are the company's goals and mission statement? Define the
underlined terms as well.

Goals: objectives that the business hopes and plans to achieve
Mission statements: A statement of how it will achieve its purposes in the environment which it
conducts business.

Example of a company: Nebraska Furniture Mart
Goals: meet its goals of 75%, improve efforts to make operations more efficient, increase the
flow of information and products, they want to grow their business
Long-Term Goals: To develop on advanced supply-chain process
Mission Statement: "selling cheap and telling the truth"

What is the purpose of goal setting for a business?
- provides direction, guidance, and motivation for all managers
- helps firms allocate resources
- helps to define corporate culture
- helps managers assess performance

The Management Process:

What four activities should a manager in the management process consider? Explain each
activity.

- Planning (deciding what needs to be done & how to do it)
- Organizing (mobilizing and implementing)
- Leading (providing guidance and teaching and motivating)
- Controlling (acting to improve and setting stands to achieve)

True OR False: (Underlined words are correct answers)

1. Operation Managers are responsible for production control, inventory control, and quality
control among other duties.

2. Middle Managers are responsible for implementing the decisions made by top managers.

3. Marketing Managers are responsible for getting products and services to buyers.

4. Goals can be long-term, intermediate, or short term.

5. SWOT analysis process involves assessing organization strength and weaknesses and
environmental opportunities and threats.

6. Vertical Integration means owning or controlling the inputs to the firm's processes and/or the
channels through which the products or services are distributed.

7. Conceptual skills is the ability to think abstract, to diagnose and analyze different situations,
and see beyond the present situation.


Multiple Choice:

1. Jenna has set a goal to get 85% on her next essay this fall term. What type of goal is this an
example of?

OPTIONS: long-term, short-term, specific goal, intermediate
A: short-term goals - goals set for within a YEAR.

2. Wal-Mart is a leader in an industry of low cost, as its store-location costs are minimized by
placing stores on low-cost land and the stores themselves are very plain. What term best
describes this?

OPTIONS: Investment reduction, diversification, cost leadership, concentration strategy
A: Cost Leadership - low cost leader in the industry

3. Coca-Cola's decision to increase sales in Europe by building European bottling facilities is an
example of what?

OPTIONS: Tactical Planning, calculated plans, environmental analysis
A: Tactical Planning

4. Volvo stress safety and apples computer stresses user-friendly products is an example of
what?

OPTIONS: Diversification, differentiation strategy, market penetration
A: Differentiation Strategy - firms seeking to be unique


Decide which out of the four activities that managers engage in match each scenario.

1) "I've laid out you shirt. I've cleaned your shoes. I'll go downstairs now and iron your shorts."
Organizing

2) "wash your hands, before you come to lunch." ( 5 mins later and child returns)
"Did you wash your hands? show me"
"Those hands aren't very clean. Go back and do it again. this time....use soap!" Controlling

3) "shake hands with your Uncle like I did." Leading

4) "Get up, get dressed, have your breakfast. Be ready to get in the car by 10 o'clock. we want to
be at Granny's at 11." Planning


Short Answer: List the five basic management skills. Think of a job position and put them in
order of what you think is the most important skill to have to the skill you feel is least important
for the job you chose. Explain why.

1. Time Management - necessary for all jobs
2. Technical Skills - accountants, factory workers; skills needed to perform specific tasks
3. Human Resources - customer service, teacher
4. Decision Making - principal, teacher, prof
5. Conceptual Thinking - top managers ; to think abstract and see beyond the current business