Chapter 6 Managing

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Chapter 6Managing
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Managers from here
?
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Todays Outline

• Strategy
• Management Process
• Management Skills
• Corporate Culture

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Strategy
If you dont know where you are going, you might
wind up someplace else.
PLAN AHEA D
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Strategy (contd)

• Mission / Vision
• vision / mission / objectives
• some say you need clearly-articulated vision
• what should be in a mission statement
• address every stakeholder?
• brevity?
• purpose
• strategy
• PR
• employee motivation
• very useful in non-profit organizations

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UPEI Mission Goals

• The University of Prince Edward Island, founded
  on the tradition of liberal education, exists to
  encourage and assist people to acquire the
  skills, knowledge, and understanding necessary
  for critical and creative thinking, and thus
  prepare them to contribute to their own
  betterment and that of society through the
  development of their full potential.
• To accomplish these ends the University is a
  community of scholars whose primary tasks are to
  teach and to learn, to engage in scholarship and
  research, and to offer service for the benefit of
  our Island and beyond.

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Strategy (contd)

• Mission / Vision (contd)
• two main objectives for profit-oriented firms
• earn attractive profits
• serve customers
• Why do you think many mission statements are
  silent about the profit objective?
• Do you think a mission statement (or vision
  statement) is necessary for a for-profit company?

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Match the company to the mission statement!

• Enhancing stakeholder value and building leading
  businesses, by maximizing our resources and
  living our values and principles.
• Our guiding mission is to deliver superior
  quality products and services for our customers
  and communities through leadership, innovation
  and partnerships.
• ________'s vision is to be the world's best quick
  service restaurant experience. Being the best
  means providing outstanding quality, service,
  cleanliness, and value, so that we make every
  customer in every restaurant smile.
• To provide the tools and knowledge to allow
  entrepreneurs to successfully compete in the QSR
  quick-service restaurant industry worldwide by
  consistently offering value to consumers through
  providing great-tasting food that is good for
  them and made the way they like it.
• We proudly serve the best burgers in the
  business, plus a variety of real, authentic foods
  ... all freshly prepared ... just the way you
  want it.

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Strategy (contd)

• Goal-Setting
• Do you set goals for yourself? Should you?
• What is the purpose of goals in a business
  context?

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Strategy (contd)

• Situation Analysis
• External Environment
• Porters 5 forces
• Internal Environment
• strengths weaknesses

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Strategy (contd)

• SWOT
• Strengths Weaknesses Opportunities
  Threats
• UPEI academic planning process
• What do you think are the universitys strengths,
  weaknesses, opportunities and threats?

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Strategy (contd)

• Competitive Strategy
• important!
• not just minimizing costs chasing big markets
• key issue what is profitable?
• must take into account competitive environment
• main elements
• target market
• build organization around serving your target
  market better than your rivals do

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Strategy (contd)

• Competitive Strategy (contd)
• Cost Leadership Strategy
• e.g. Wal-Mart, Dell
• few can succeed
• Differentiation Strategy
• numerous dimensions

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Strategy (contd)

• Consider the following businesses and identify
  how they differentiate their business from their
  competitors

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Strategy (contd)

• Getting the right people
• Knowledge economy
• especially in service industries
• UPEIs president one of his most important jobs
  getting right people to work at UPEI
• Why is getting the right people so important? If
  you have good management systems in place, does
  it really matter who you hire?

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Strategy (contd)

• Getting the right people (contd)
• In business downturns hard to keep best people
• What makes it so hard?

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Management Process

• 4 steps
• planning
• organizing
• leading (chapter 9)
• controlling

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Management Process - Control

• Ensuring that what is supposed to happen does
  happen
• Measurement and monitoring
• Managing by Objectives (MBO)
• meet agree on objectives
• should align goals, and be achievable
• evaluation on this standard
• (results oriented approach)
• What disadvantages do you see with this approach?

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Management Process - Control

• External v internal customers
• Get departments that serve own company to adopt
  customer service mentality towards other parts of
  the organization
• What steps can managers take to promote this type
  of mentality?

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Management skills

• Technical Skills
• examples
• important at all levels, but proportion changes
• role of university education
• Human Relations Skills
• very important
• not universitys forte
• can be learned
• What are some things you can do while at
  university to develop those skills?

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Management skills (contd)

• Conceptual Skills
• understand, analyze, develop solutions, consider
  numerous issues simultaneously
• universitys forte
• versus college
• broad education
• Some students contend that UPEI should introduce
  majors within business because specialized
  degrees would improve our students employment
  prospects. Do you agree with this view?

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Management skills (contd)

• Decision-making skills
• Think of someone you know who has strong
  decision-making skills. What is it about that
  person that makes you think that?
• How important is it to make decisions quickly?
• Suppose as a manager you make a decision and
  later conclude that it was the wrong decision.
  Should you always stick with your first decision?
  Should you always correct your decision (if you
  can)?

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Time Management Skills

• Mis-nomer
• You cant manage time
• You CAN manage yourself
• What are some bad habits that cause people to
  squander time?

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International skills

• Increasingly important
• Prerequisite for senior management positions
• Opportunities at university!

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Corporate Culture

• Can powerfully affect behaviour!
• Traits that are desirable for virtually all
  firms
• Culture of ethical behaviour
• Why?
• Culture of co-operation
• Spirit of high performance

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Corporate Culture (contd)

• But some aspects of optimal culture are
  strategy-dependent
• examples
• Wal-Mart people friendly, celebrates cheapness
• The HP way
• Androids
• How can management influence corporate culture?

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Managers from here
?