Q1Managers, most business decisions are made under conditions of either risk or uncertainty. In your opinion, is it easier to make a decision under a condition of risk or a condition of uncertainty? Why? Give an example from your experiences to support your answer.
Q2The book tells us that managers (and everyone, really) often have imperfect information upon which to make a decision. Therefore we are constrained by bounded rationality (limited in terms of our skills, and what information we can access and process) and try to quickly identify the solution that meets our minimum standards. Class but what is a market, really? A place? A product or service? Which sellers? Which buyers? As a manager how much concern should you have for how goods and services are produced, financed and marketed in both domestic and international business enterprises? Is it your worry about how economic and legal environments affect business? What about ethical, social and political influence both profit and nonprofit enterprises? This week we will be discussing how managers, including senior executives, make decisions despite limited facts and great uncertainty. We will also discuss business plans in our other TDA. Are markets the only thing that organizations are willing to take risk?
Class review the Week 2 lecture and the SWOT Analysis interactive exercise; located within the lecture under the SWOT Factors heading.
After reviewing these items, let s discuss the elements of a SWOT analysis. Assume you work for a family owned restaurant, what are some of the typical strengths and weaknesses of a small family owned restaurant? What types of opportunities and threats would be present within each of the dimensions of the general environment?
Class managers are proactive? They make change happen instead of reacting to change. The future requires corporate leadership with the skills to integrate many unexpected and seemingly diverse events into its planning. Every organization must plan for change in order to reach its ultimate goal. Effective planning helps an organization adapt to change by identifying opportunities and avoiding problems. It sets the direction for the other functions of management and for teamwork. Planning improves decision making. All levels of management engage in planning. Strategic planning produces fundamental decisions and actions that shape and guide what an organization is, what it does, and why it does it. It requires broad scale information gathering, an exploration of alternatives, and an emphasis on the future implications of present decisions. Top level managers engage chiefly in strategic planning or long range planning. They answer such questions as What is the purpose of this organization? What does this organization have to do in the future to remain competitive? Top level managers clarify the mission of the organization and set its goals. The output needed by top management for long range planning is summary reports about finances, operations, and the external environment. Operational Objectives are specific measurable results to be accomplished within the timespan of the operational plan. Action Plans are specific actions required to accomplish each operational objective including a timetable, resource requirements and accountability.
Organizations strive to create organizational strengths that are distinctive competencies. What is a distinctive competence? Describe the relationship between a distinctive competency, a competitive advantage, and a sustained competitive advantage. Give an example for at least one of these in your response.