Answers to ma am questions

DECISION STYLES
High

Analytical
Careful decision makers Adapt to new situation

Conceptual
Broad outlook examine more alternative long range find creative solution

Tolerance for Ambiguity

Directive
Efficient,logical use less information, few alternative make decision fast focus on short-term

Behavioral
Work well with others Receptive(open) to suggestions ,Avoid conflicts

Low

Rational

Way of Thinking

Intuitive

Personal Decision Framework

Situation: Programmed/nonprogrammed Classical, administrative, political Decision steps

Personal Decision Style: Directive Analytical Conceptual Behavioral

Decision Choice: Best Solution to Problem

Analytical Style
Complex solutions based on as much data as they can gather Carefully consider alternatives Base decision on objective, rational data from management control systems and other sources Search for best possible decision based on information available

Conceptual Style
Consider a broad amount of information More socially oriented than analytical style Like to talk to others about the problem and possible solutions Consider many broad alternatives Relay on information from people and systems Solve problems creatively

Directive Style
People who prefer simple, clear-cut solutions to problems Make decisions quickly May consider only one or two alternatives Efficient and rational Prefer rules or procedures

Behavioral Style

Have a deep concern for others as individuals Like to talk to people one-on-one Understand their feelings about the problem and the effect of a given decision upon them Concerned with the personal development of others May make decisions to help others achieve their goals

Six Steps in the Rational Managerial Decision-Making Process

Evaluation and Feedback

Recognition of Decision Requirement

Implementation Diagnosis Decision-Making and Analysis of Chosen Process Alternative of Causes

Selection of Desired Alternative

Development of Alternatives

Rational decision making model

Step Recognizing & defining the situation Identifying the alternatives Example A plant manager sees that employee turnover has increased by 5% The plant manager can increase wages, increase benefits, or change hiring standards Increasing the benefits may not be feasible. Increasing wages and changing hiring standards may satisfy all conditions Changing hiring standards will take an extended period of time to cut turnover, so increase wages

Evaluating the alternatives

Selecting the best alternative

Implementing the chosen alternatives The plant manager may need permission from corporate headquarters. The HRD establishes a new wage structure Following up and evaluating the results The pant manager notes that six months later turnover has dropped to its previous level

SWOT Analysis (Environment scanning- Internal analysis of the firm)

 A scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classified as strengths (S) or weaknesses (W), and those external to the firm can be classified as opportunities (O) or threats (T). Such an analysis of the strategic environment is referred to as a SWOT analysis.

 The SWOT analysis provides information that is helpful in matching the firm's resources and capabilities to the competitive environment in which it operates. As such, it is instrumental in strategy formulation and selection. The following diagram shows how a SWOT analysis fits into an environmental scan:

SWOT Analysis Framework

Environmental Scan /\ Internal Analysis External Analysis /\ /\ Strengths Weaknesses Opportunities Threats | SWOT Matrix

Strengths A firm's strengths are its resources and capabilities that can be used as a basis for developing a competitive advantage. Examples of such strengths include: patents strong brand names good reputation among customers cost advantages from proprietary know-how exclusive access to high grade natural resources favorable access to distribution networks

Weaknesses The absence of certain strengths may be viewed as a weakness. For example, each of the following may be considered weaknesses: lack of patent protection a weak brand name poor reputation among customers high cost structure lack of access to the best natural resources lack of access to key distribution channels

Opportunities The external environmental analysis may reveal certain new opportunities for profit and growth. Some examples of such opportunities include: an unfulfilled customer need arrival of new technologies loosening of regulations removal of international trade barriers

Threats Changes in the external environmental also may present threats to the firm. Some examples of such threats include: shifts in consumer tastes away from the firm's products emergence of substitute products new regulations increased trade barriers

SWOT Analysis
STRENGTH
High Brand Equity Every Day Low price [ EDLP ] Real estate and Infrastructure Understanding Consumer Preferences

WEAKNESS
Falling Revenue/ Sq Ft. Unable To Meet Store Opening Target Perception Amongst Consumers

OPPORTUNITIES
Targeting Area More Prone To Development In Store Experience Improvements New formats and consumption space

THREATS
Competitors domestic and foreign

Economic Conditions

SWOT Analysis for Starbucks Coffee

Recruitment and Decruitment

Recruitment
The process of locating, identifying, and attracting capable applicants to an organization

Decruitment
The process of reducing a surplus of employees in the workforce of an organization

E-recruiting
Recruitment of employees through the Internet
Organizational web sites Online recruiters

 Market Penetration Here we market our existing products to our existing customers. This means increasing our revenue by, for example, promoting the product, repositioning the brand, and so on. However, the product is not altered and we do not seek any new customers

 Market Development Here we market our existing product range in a new market. This means that the product remains the same, but it is marketed to a new audience. Exporting the product, or marketing it in a new region, are examples of market development.

 Product Development This is a new product to be marketed to our existing customers. Here we develop and innovate new product offerings to replace existing ones. Such products are then marketed to our existing customers. This often happens with the auto markets where existing models are updated or replaced and then marketed to existing customers

 Diversification This is where we market completely new products to new customers. There are two types of diversification, namely related and unrelated diversification. Related diversification means that we remain in a market or industry with which we are familiar. For example, a soup manufacturer diversifies into cake manufacture (i.e. the food industry). Unrelated diversification is where we have no previous industry nor market experience. For example a soup manufacturer invests in the rail business.