5 chapter Based on: Business Essentials, 7 th Edition Ebert/Griffin © 2009 Pearson Education, Inc. Mr. AGUNG PRAPTAPA Teaching Material for MM 2010 BUSINESS

5chapter

Based on: Business Essentials, 7th EditionEbert/Griffin

© 2009 Pearson Education, Inc.

Mr. AGUNG PRAPTAPA

Teaching Material for MM 2010

BUSINESS MANAGEMENT

PowerPoint Presentation prepared by

Carol Vollmer Pope Alverno College

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

© 2009 Pearson Education, Inc. 2

After reading this chapter, you should be able to:1. Describe the nature of management and identify the four

basic functions that constitute the management process.2. Identify different types of managers likely to be found in an

organization by level and area.3. Describe the basic skills required of managers.

4. Explain the importance of strategic management and effective goal setting in organizational success.


L E A R N I N G O B J E C T I V E SL E A R N I N G O B J E C T I V E S

After reading this chapter, you should be able to:5. Discuss contingency planning and crisis

management in today’s business world. 6. Describe the development and explain the

importance of corporate culture.

L E A R N I N G O B J E C T I V E S (cont’d)L E A R N I N G O B J E C T I V E S (cont’d)


What’s in It for Me?

• By understanding the material discussed in this chapter, you’ll be better prepared to:– Carry out various management responsibilities

yourself– More effectively assess and appreciate the quality

of management in various companies from the perspective of a consumer or investor


Managers: Your Views Please

• Who Are Managers?• What are Good Managers?• What are tasks of

Managers?

Who Are Managers?• Good Managers

– Are responsible for business performance and effectiveness

• Effective—do the right things; achieve goals• Efficient—do things right; lower costs

– Are accountable to all key stakeholders• Develop strategic plans and tactical plans• Analyze their competitive environments and

plan, organize, direct, and control day-to-day operations


The Management Process

LeadingGuiding and Motivating

LeadingGuiding and Motivating

ControllingMonitoring Performance

ControllingMonitoring Performance

PlanningSetting Goals

PlanningSetting Goals

OrganizingStructuring

OrganizingStructuring

• Management– The process of planning, organizing, leading, and

controlling a firm’s financial, physical, human, and information resources to achieve its goals


Planning

• The Planning Process– Determining firm’s goals– Developing strategy for achieving goals– Designing tactical and operational plans for

implementing the strategy


Organizing

• The Organizing Process– Arranging resources and activities in a

coherent structure• Prepare organizational charts to help everyone

understand roles and reporting relationships


Leading

• Leading– Guiding and motivating employees to meet the

organization’s objectives• Uniting employees in a clear and targeted manner and

motivating them to work in the best interests of the employer


Controlling

• The Controlling Process– Monitoring a firm’s performance to make sure

that it is meeting its goals• Begins when management establishes standards,

often for financial performance• Can serve as a basis for providing rewards or reducing

costs


FIGRE 5.1 The Control Process


Please Share:

You will be divided into 4 group

Please share the key success factor:Group 1: PlanningGroup 2: OrganizingGroup 3:LeadingGroup 4: Controlling

Types of Managers• Levels of Management

– Top managers: Responsible for the overall performance of the firm

• President, vice president, treasurer, CEO, CFO

– Middle managers: Implement strategies and work toward goals set by top managers

• Plant manager, operations manager, division manager

– First-line managers: Work with and supervise employees

• Supervisor, office manager, project manager, group leader


Human Resources

Human Resources

MarketingMarketing

FinancialFinancial

OperationsOperations

InformationInformation

OtherOther

Areas of Management


Please share:

• Please share about area of management in your work environment.

• Maybe you will find:• Same function, different name• Same name, different function

Basic Management Skills

Human Relations

SkillsTechnical

Skills

Conceptual Skills

time-management

skills

Decision-Making Skills


time-management skills

• Four leading time wasters:– Paperwork– Telephone calls– Meetings– E-mail


Management Skills for the 21st Century

• Global Management Skills– Understand foreign markets, cultural differences,

and the motives and practices of foreign rivals– Understand how to collaborate with others

around the world on a real-time basis

• Management and Technology Skills– Needed to process increasing

amounts of information© 2009 Pearson Education, Inc.

Strategic Management: Setting Goals and Formulating Strategy

• Planning• Set goals (SMART)

• Goals• Objectives that a business hopes and plans to

achieve

• Strategy• The broad set of action plans to achieve company

goals


SWOT Analysis

A. STRENGTHS - internal, positiveB. WEAKNESSES - internal, negativeC. OPPORTUNITIES - external, positiveD. THREATS - external, negative

Setting Business Goals• Goals

– Performance targets that organizations and their managers use to measure success or failure

• Mission Statement– A statement of how a business will achieve its

fundamental purpose• Effective organizations set goals at many

different levels:– Long-term goals: five years or more– Intermediate goals: one to five years– Short-term goals: one year or less


Purposes of Goal Setting

• Goal Setting:– Provides direction and guidance for managers at

all levels– Helps firms allocate resources– Helps to define corporate culture– Helps managers assess performance


Types of Strategy

• Corporate Strategy– Determines what business or businesses a

company will own and operate– Growth

• Related diversification• Unrelated diversification

– Retrenchment• Downsizing and divestiture


Types of Strategy (cont’d)

• Business (or Competitive) Strategy– Focuses on improving the company’s competitive

position at the level of the business unit or product line

• Functional Strategy– Guides managers in specific areas such as

marketing, finance, and operations in deciding how best to achieve corporate goals by performing their functional activities most effectively


Formulating Strategy

Step 1: Setting Strategic Goals– Strategic goals are derived from a firm’s

mission statementStep 2: Analyzing the Organization and the Environment: SWOT

Analysis– Assessing internal strengths and weaknesses

and external opportunities and threats• Environmental analysis• Organizational analysis

Step 3: Matching the Organization and Its Environment– Matching environmental threats and

opportunities against corporate strengths and weaknesses© 2009 Pearson Education, Inc.

Figure 5.2 Strategy Formulation


A Hierarchy of Plans• Strategic Plans

– Reflect decisions about resource allocations, company priorities, and the steps needed to meet strategic goals

• Tactical Plans– Shorter-term plans for implementing specific

aspects of the company’s strategic plans• Operational Plans

– Mid-level and lower-level managers set short-term targets for daily, weekly, or monthly performance


Contingency Planning and Crisis Management

• Contingency Planning– Planning for change– Seeks to identify in advance important aspects of

a business or its market that might change and the ways in which a company will respond to changes

• Crisis Management– Involves an organization’s methods for dealing

with a crisis—an unexpected emergency requiring immediate response


Management and the Corporate Culture• Corporate Culture

– Is the shared experiences, stories, beliefs, and norms that characterize an organization

– Helps define the work and business climate that exists in an organization

• Communicating the Culture– Managers must understand the culture– Managers must transmit the culture to others in

the organization– Managers can support the culture by rewarding

and promoting those who understand it and work toward maintaining it


Managing Change in the Culture

• Stages in the Change Process– At the highest level, analysis of the company’s

environment highlights extensive change as the most effective response to its problems.

– Top management begins to formulate a vision of a new company.

– The firm sets up new systems for appraising and compensating employees who enforce the firm’s new values.


Key Terms

business (or competitive) strategy conceptual skills contingency planning controlling corporate culture corporate strategy crisis management decision-making skills leading environmental analysis first-line manager functional strategy goal

human relations skills intermediate goal long-term goal management middle manager mission statement organizational analysis organizing operational plan planning short-term goal strategic goal strategic managementstrategic plan


Key Terms (cont.)

strategy strategy formulation SWOT analysis tactical plan technical skills time-management skills top manager


Documents

5 chapter Based on: Business Essentials, 7 th Edition Ebert/Griffin © 2009 Pearson Education, Inc. Mr. AGUNG PRAPTAPA Teaching Material for MM 2010 BUSINESS