For this assignment, you will be asked to reflect on what we have learned in the last unit. You will need to choose one of the below news articles and talk about how the company discussed in the article is either conducting their MGMT practices according to what we’ve learned in the course (serving as a good example of what to do) or is not conducting their MGMT practices appropriately (serving as an example of what NOT to do).
You must use one of the following articles:
- https://www.northbaybusinessjournal.com/article/article/gotham-greens-high-tech-indoor-farming-operation-opens-in-northern-californ/Links to an external site.
- https://www.fiercehealthcare.com/providers/amid-big-ma-deals-walgreens-eyes-aggressive-strategy-healthcare-push-ceo-saysLinks to an external site.
- https://www.complex.com/sneakers/nike-aventura-miami-rise-store-openingLinks to an external site.
What You Need to Submit
- Summary of what the article is about and what management actions the company is taking,
- Summary of the relevant class material on the topic that relates to the article, and
EITHER
3a. Why this company serves as a good example of how management activities should be conducted based on the material we learned in class
OR
3b. Why this company serves as an example of what NOT to do in management based on the topics that we have covered in the past unit.
Your response should be exactly three paragraphs long (a paragraph is defined as approximately 4-6 sentences and your paragraphs should not exceed this length). One paragraph should be dedicated to each number above. You will be graded on both the content of your post and the spelling/grammar of your post so please proofread your work. You also must include a citation for the source of your article (can be either MLA or APA format) and must also include the link to the article itself. Do not use any other sources besides the article and the course material. Everything should also be in your own words. No quotations from the article should be included. You will not be able to delete or edit your post once you submit it so please make sure it is finalized before hitting submit. You will also not be able to view other students’ submissions until you have submitted your assignment.
MGMT 300
Integrated Core: Management
The
Process
Organizing
Process of establishing orderly uses of resources
within the management system
Presenter
Presentation Notes
Organizing is the primary method that managers use to activate plans. Organizing helps managers minimize weaknesses and inefficiencies such as duplication of effort and idle resources.
Ability to create a network of people who can help
solve problems as they occur throughout the
organization
Presenter
Presentation Notes
Organizing is the primary method that managers use to activate plans. Organizing helps managers minimize weaknesses and inefficiencies such as duplication of effort and idle resources.
• Executing the operating plan
• Organizing human and material resources so that they are
consistent with objectives
• Coordinate activities and effort of employees
• Define duties
• Reward desirable behavior and discipline faults and errors
• Promote coordination between employees and departments
Step 4: Allocate
resources and
directives for
subtasks
Step 5: Evaluate
results of
organizing strategy
Step 1: Reflect
on plans and
objectives
Step 2:
Establish
major tasks
Step 3: Divide
major tasks into
subtasks
MGMT 300
Integrated Core: Management
Division of Labor
Division of labor: assignment of various portions of a
particular task among a number of organization
members
• Rather than one person do the job several people perform
different parts
• Individuals can specialize in doing a part of the task rather
than the entire task
Employees gain specialized skill in one task
Only one job to do so don’t lose time
Increased efficency
Task of work does not become burdensome to employees
Overlooks human variable
Boring which leads to….
Decreased production
MGMT 300
Integrated Core: Management
and Dimensioning
Organizational Structure
Structure: designated relationships among resources of the
management system
Formal structure:
relationships among
organizational resources
as outlined by
management
Informal structure:
patterns of relationships
that develop informally
among org members
Organizational Structure
Certo, S.C., Certo, S.T. (2016). Modern Management, Concepts & Skills (14th Edition). Boston: Pearson.
Vertical
Dimensioning
Extent to which the
organization uses vertical
levels to separate job
responsibilities
Horizontal
Dimensioning:
Extent to which
organizations use
subdivisions or
specialties within the org
MGMT 300
Integrated Core: Management
Span of Management
Coordination: amount of time that managers need to spend organizing activities of
subordinates
Similarity of functions: degree to which activities performed by individuals are
similar or dissimilar
Geographic location: degree to which subordinates are physically separated
Complexity of functions: degree to which activities are difficult and involved
Planning: amount of time management must spend determining plans
Span of Management
Factor Increases span of
management
Decreases span of
management
1. Similarity of functions
2. Geographic contiguity
3. Complexity of functions
4. Coordination
5. Planning
Span of Management
Factor Increases span of
management
Decreases span of
management
1. Similarity of functions
Span of Management
Factor Increases span of
management
Decreases span of
management
1. Similarity of functions Subordinates have similar
functions
Subordinates have
different functions
Span of Management
Factor Increases span of
management
Decreases span of
management
1. Similarity of functions Subordinates have similar
functions
Subordinates have
different functions
2. Geographic contiguity
Span of Management
Factor Increases span of
management
Decreases span of
management
1. Similarity of functions Subordinates have similar
functions
Subordinates have
different functions
2. Geographic contiguity Subordinates are
physically close
Subordinates are
physically distant
Span of Management
Factor Increases span of
management
Decreases span of
management
1. Similarity of functions Subordinates have similar
functions
Subordinates have
different functions
2. Geographic contiguity Subordinates are
physically close
Subordinates are
physically distant
3. Complexity of functions
Span of Management
Factor Increases span of
management
Decreases span of
management
1. Similarity of functions Subordinates have similar
functions
Subordinates have
different functions
2. Geographic contiguity Subordinates are
physically close
Subordinates are
physically distant
3. Complexity of functions Subordinates have simple
tasks
Subordinates have
complex tasks
Span of Management
Factor Increases span of
management
Decreases span of
management
1. Similarity of functions Subordinates have similar
functions
Subordinates have
different functions
2. Geographic contiguity Subordinates are
physically close
Subordinates are
physically distant
3. Complexity of functions Subordinates have simple
tasks
Subordinates have
complex tasks
4. Coordination
Span of Management
Factor Increases span of
management
Decreases span of
management
1. Similarity of functions Subordinates have similar
functions
Subordinates have
different functions
2. Geographic contiguity Subordinates are
physically close
Subordinates are
physically distant
3. Complexity of functions Subordinates have simple
tasks
Subordinates have
complex tasks
4. Coordination Work of subordinates
needs little coordination
Work of subordinates
needs much coordination
Span of Management
Factor Increases span of
management
Decreases span of
management
1. Similarity of functions Subordinates have similar
functions
Subordinates have
different functions
2. Geographic contiguity Subordinates are
physically close
Subordinates are
physically distant
3. Complexity of functions Subordinates have simple
tasks
Subordinates have
complex tasks
4. Coordination Work of subordinates
needs little coordination
Work of subordinates
needs much coordination
5. Planning
Span of Management
Factor Increases span of
management
Decreases span of
management
1. Similarity of functions Subordinates have similar
functions
Subordinates have
different functions
2. Geographic contiguity Subordinates are
physically close
Subordinates are
physically distant
3. Complexity of functions Subordinates have simple
tasks
Subordinates have
complex tasks
4. Coordination Work of subordinates
needs little coordination
Work of subordinates
needs much coordination
5. Planning Manager spends little time
planning
Manager spends much
time planning
MGMT 300
Integrated Core: Management
Organizational Height and Dimensioning
Span of Management and
Height of Org Chart
• Tall organization = smaller span of management
• Flat organization = greater span of management
Certo, S.C., Certo, S.T. (2016). Modern Management, Concepts & Skills (14th Edition). Boston: Pearson.
Span of Management
• Horizontal dimensioning: extent to which
organizations use lateral subdivisions or
specialties within the org
• Departments: unique groups of resources
established by management to perform an
organizational task
Certo, S.C., Certo, S.T. (2016). Modern Management, Concepts & Skills (14th Edition). Boston: Pearson.
Departments Based on
Product or Service
Certo, S.C., Certo, S.T. (2016). Modern Management, Concepts & Skills (14th Edition). Boston: Pearson.
Departments Based on
Geography
Certo, S.C., Certo, S.T. (2016). Modern Management, Concepts & Skills (14th Edition). Boston: Pearson.
Departments Based on
Customer
Certo, S.C., Certo, S.T. (2016). Modern Management, Concepts & Skills (14th Edition). Boston: Pearson.
Departments
Based on Matrix
Certo, S.C., Certo, S.T. (2016). Modern Management, Concepts & Skills (14th Edition).
Boston: Pearson.
MGMT 300
Integrated Core: Management
Change and the Change Agent
Process of modifying an existing organization to
increase organizational effectiveness
Presenter
Presentation Notes
Organizing is the primary method that managers use to activate plans. Organizing helps managers minimize weaknesses and inefficiencies such as duplication of effort and idle resources.
1. Can a machine be used to do a better or faster job?
2. Can the fixture now in use be improved?
3. Can handling of materials for the machine be
improved?
4. Can a special tool be used to combine the
operations?
5. Can the operation be made safer?
6. Can procedures be simplified?
Presenter
Presentation Notes
Customer needs change, technology changes. Orgs need managers who can assess the need to change and implement the necessary changes.
Change
Agent
Individuals Affected
Type of change to
be made and what
should be changed
Evaluation of
change
Change
Agent
Individuals Affected
Type of change to
be made and what
should be changed
Evaluation of
change
Five Factors of Successful Change
Change agent: individual inside or
outside the org who tries to modify the
existing org situation
Should have ability to:
• determine how a change should be made
• solve change-related problems
• use tools to influence people during a
change
• determine how much change the org can
take
MGMT 300
Integrated Core: Management
Main Types of Changes in Organizations
Change
Agent
Individuals Affected
Type of change to
be made and what
should be changed
Evaluation of
change
Five Factors of Successful Change
Is the change focused on…
Structure?
Technology?
People?
OR
Change
Agent
Individuals Affected
Type of change to
be made and what
should be changed
Evaluation of
change
Five Factors of Successful Change
Structural change: aimed at
increasing effectiveness by
modifying existing org structure
Decentralizing to
increase motivation
and flexibility
Change
Agent
Individuals Affected
Type of change to
be made and what
should be changed
Evaluation of
change
Five Factors of Successful Change
Structural change: aimed at
increasing effectiveness by
modifying existing org structure
Certo, S.C., Certo, S.T. (2016). Modern Management, Concepts & Skills (14th Edition). Boston: Pearson.
Change
Agent
Individuals Affected
Type of change to
be made and what
should be changed
Evaluation of
change
Five Factors of Successful Change
People change: changing
characteristics of org members
such as their attitudes and skills
Rewarding desired
behavior
Change
Agent
Individuals Affected
Type of change to
be made and what
should be changed
Evaluation of
change
Five Factors of Successful Change
Technological change: modifying
the level of technology in the
management system
Technology to
change processes
Technology to
change equipment
MGMT 300
Integrated Core: Management
Resistance to Change
Change
Agent
Individuals Affected
Type of change to
be made and what
should be changed
Evaluation of
change
Five Factors of Successful Change
Why might employees be
resistant to change?
Change
Agent
Individuals Affected
Type of change to
be made and what
should be changed
Evaluation of
change
Five Factors of Successful Change
Resistance to change: individuals
often fear…
Personal loss Reduction in prestige
Disturbance of new
relationships
Personal failures
Change
Agent
Individuals Affected
Type of change to
be made and what
should be changed
Evaluation of
change
Five Factors of Successful Change
How can managers reduce
resistance to change?
• Avoid surprises
• Promote genuine understanding
• Set the stage for change
• Make the change tentative
MGMT 300
Integrated Core: Management
Evaluating Change and
Change
Agent
Individuals Affected
Type of change to
be made and what
should be changed
Evaluation of
change
Five Factors of Successful Change
• Evaluate whether the change is
increasing effectiveness
• Evaluate whether the steps involved
with the change should be modified
for the next change
• Watch for signs that further change
might be necessary
Virtuality
• Increasingly commonplace type of organizational
change
• Different degrees of virtuality
Virtual corporation: all employees, suppliers, and
customers are virtual
Virtual teams: members in geographically dispersed
locations “meet” via real-time messaging
Virtual training: using internet-assisted learning materials
Pros
• Saving on costs of real estate
and rental costs
• Some research shows that
employees work faster and
are less interrupted when
working from home
• Virtuality can be used to
make employees more
efficient (i.e. by addressing
customer problems faster)
Cons
• Difficult to create an
organizational culture
• Difficult to supervise
workers
• Communication more
difficult
- MGMT 300�Integrated Core: Management
- Span of Management and �Height of Org Chart
- Departments Based on �Product or Service
- Departments Based on �Geography
- Departments Based on �Customer
- Departments Based on Matrix
Organizing
Organizing Skill
Organizing Activities
The Organizing Process
MGMT 300�Integrated Core: Management
Division of Labor
Advantages of Division of Labor
Disadvantages of Division of Labor
MGMT 300�Integrated Core: Management
Organizational Structure
Organizational Structure
Two Types of Dimensioning
MGMT 300�Integrated Core: Management
Span of Management
Span of Management
Span of Management
Span of Management
Span of Management
Span of Management
Span of Management
Span of Management
Span of Management
Span of Management
Span of Management
Span of Management
MGMT 300�Integrated Core: Management
Span of Management
Departments Based on Function
MGMT 300�Integrated Core: Management
Organizational Change
GM “Think List”
Five Factors of Successful Change
Five Factors of Successful Change
MGMT 300�Integrated Core: Management
Five Factors of Successful Change
Five Factors of Successful Change
Five Factors of Successful Change
Five Factors of Successful Change
Five Factors of Successful Change
MGMT 300�Integrated Core: Management
Five Factors of Successful Change
Five Factors of Successful Change
Five Factors of Successful Change
MGMT 300�Integrated Core: Management
Five Factors of Successful Change
Virtuality
Pros and Cons of Virtual Offices
MGMT 300
Integrated Core: Management
What is Strategic Planning and Strategic
Management?
Strategy: broad and general plan developed to
reach long-term objectives
• Strategy: broad and general plan developed to
reach long-term
objectives
• Strategic planning: long-range planning that
focuses on the org as a whole
How Long Into the Future Should
Managers
Focus
?
• Long-term strategic planning = 3-5 years into the
future
• Commitment principle: managers should
commit funds for planning only if they can
anticipate a return on planning expenses as a
result of long-term analysis
• Strategic management: process of ensuring
that the org possesses and benefits from the
use of an appropriate strategy
5 steps involved in strategic management…
Environmental
Analysis
Establishing
organizational
direction
Strategy
Formulation
Strategy
implementation
Strategic
control
Strategic Management Process
Environmental
Analysis
Establishing
organizational
direction
Strategy
Formulation
Strategy
implementation
Strategic
control
MGMT 300
Integrated Core: Management
:
The General Environment
Environmental Analysis
Environmental analysis: the study of the
organizational environment to pinpoint factors
that can influence org operations
General
Environment
Industry
Environment
Internal
Environment
Environmental Analysis
Environmental analysis: the study of the
organizational environment to pinpoint factors
that can influence org operations
General
Environment
Industry
Environment
Internal
Environment
Environmental Analysis
General environment: an organization’s external
environment that has long-term implications for
managing the organization
Environmental Analysis
What aspects of the general environment might
influence organizational strategy?
General Environment
Environmental Analysis
Presenter
Presentation Notes
International component: all factors related to org operations. Other countries’ laws, cultures, economics, and politics
General Environment
Social
Component
Environmental Analysis
Presenter
Presentation Notes
International component: all factors related to org operations. Other countries’ laws, cultures, economics, and politics
General Environment
Social
Component
Environmental Analysis
Presenter
Presentation Notes
International component: all factors related to org operations. Other countries’ laws, cultures, economics, and politics
General Environment
Social
Component
Environmental Analysis
Presenter
Presentation Notes
International component: all factors related to org operations. Other countries’ laws, cultures, economics, and politics
General Environment
Social
Component
Technology
Component
Environmental Analysis
Presenter
Presentation Notes
International component: all factors related to org operations. Other countries’ laws, cultures, economics, and politics
General Environment
Social
Component
Technology
Component
Environmental Analysis
Presenter
Presentation Notes
International component: all factors related to org operations. Other countries’ laws, cultures, economics, and politics
MGMT 300
Integrated Core: Management
Environmental Analysis: The Industry
Environment
Environmental Analysis
Environmental analysis: the study of the
organizational environment to pinpoint factors
that can influence org operations
General
Environment
Industry
Environment
Internal
Environment
Environmental Analysis
• Industry Environment: level that contains
components normally having specific and
immediate implications for managing the org
• Porter’s Five Forces Model
Environmental Analysis
Bargaining power
of new entrants
Industry
Competitors
New Entrants
Presenter
Presentation Notes
Starbucks example: threat of new entrants is moderate. Moderate cost of doing
business
in the industry. High cost of developing a brand. New entrants may be able to enter the market but may also find it difficult to compete against the strength of the Starbucks brand.
Threat of buyers/customers: strong. Customers can easily shift from Starbucks to other brands. Many alternatives. Strong effect on the business.
Threat of substitutes: many substitutes. Restaurants, grocery stores, etc. cost of substitutes is low. Many of the substitutes cost less than Starbucks products. Threat of Subsitutes is a strong concern.
Suppliers
: low threat because there is a high variety of suppliers, large overall supply.
Industry competitors: large amount of competiors, McDonalds, Dunkin
Environmental Analysis
Bargaining power
of suppliers
Bargaining power
of new entrants
Industry
Competitors
New Entrants
Suppliers
Presenter
Presentation Notes
Starbucks example: threat of new entrants is moderate. Moderate cost of doing business in the industry. High cost of developing a brand. New entrants may be able to enter the market but may also find it difficult to compete against the strength of the Starbucks brand.
Threat of buyers/customers: strong. Customers can easily shift from Starbucks to other brands. Many alternatives. Strong effect on the business.
Threat of substitutes: many substitutes. Restaurants, grocery stores, etc. cost of substitutes is low. Many of the substitutes cost less than Starbucks products. Threat of Subsitutes is a strong concern.
Suppliers: low threat because there is a high variety of suppliers, large overall supply.
Industry competitors: large amount of competiors, McDonalds, Dunkin
Environmental Analysis
Bargaining power
of suppliers
Bargaining
power of buyers
Bargaining power
of new entrants
Industry
Competitors
New Entrants
Suppliers
Buyers
Presenter
Presentation Notes
Starbucks example: threat of new entrants is moderate. Moderate cost of doing business in the industry. High cost of developing a brand. New entrants may be able to enter the market but may also find it difficult to compete against the strength of the Starbucks brand.
Threat of buyers/customers: strong. Customers can easily shift from Starbucks to other brands. Many alternatives. Strong effect on the business.
Threat of substitutes: many substitutes. Restaurants, grocery stores, etc. cost of substitutes is low. Many of the substitutes cost less than Starbucks products. Threat of Subsitutes is a strong concern.
Suppliers: low threat because there is a high variety of suppliers, large overall supply.
Industry competitors: large amount of competiors, McDonalds, Dunkin
Environmental Analysis
Bargaining power
of suppliers
Bargaining
power of buyers
Threat of
substitutes
Bargaining power
of new entrants
Industry
Competitors
New Entrants
Suppliers
Substitutes
Buyers
Presenter
Presentation Notes
Starbucks example: threat of new entrants is moderate. Moderate cost of doing business in the industry. High cost of developing a brand. New entrants may be able to enter the market but may also find it difficult to compete against the strength of the Starbucks brand.
Threat of buyers/customers: strong. Customers can easily shift from Starbucks to other brands. Many alternatives. Strong effect on the business.
Threat of substitutes: many substitutes. Restaurants, grocery stores, etc. cost of substitutes is low. Many of the substitutes cost less than Starbucks products. Threat of Subsitutes is a strong concern.
Suppliers: low threat because there is a high variety of suppliers, large overall supply.
Industry competitors: large amount of competiors, McDonalds, Dunkin
Environmental Analysis
Bargaining power
of suppliers
Bargaining
power of buyers
Threat of
substitutes
Bargaining power
of new entrants
Industry
Competitors
New Entrants
Suppliers
Substitutes
Buyers
Presenter
Presentation Notes
Starbucks example: threat of new entrants is moderate. Moderate cost of doing business in the industry. High cost of developing a brand. New entrants may be able to enter the market but may also find it difficult to compete against the strength of the Starbucks brand.
Threat of buyers/customers: strong. Customers can easily shift from Starbucks to other brands. Many alternatives. Strong effect on the business.
Threat of substitutes: many substitutes. Restaurants, grocery stores, etc. cost of substitutes is low. Many of the substitutes cost less than Starbucks products. Threat of Subsitutes is a strong concern.
Suppliers: low threat because there is a high variety of suppliers, large overall supply.
Industry competitors: large amount of competiors, McDonalds, Dunkin
MGMT 300
Integrated Core: Management
Internal Environment, Establishing Organizational
Direction, and
Environmental Analysis
Environmental analysis: the study of the
organizational environment to pinpoint factors
that can influence org operations
General
Environment
Industry
Environment
Internal
Environment
Environmental Analysis
• Internal environment: environment that exists
inside the org and has immediate and specific
implications for managing the org
• Includes marketing, finance, and accounting
Strategic Management Process
Environmental
Analysis
Establishing
organizational
direction
Strategy
Formulation
Strategy
implementation
Strategic
control
Organizational Mission: purpose for which an
organization exists
Establishing Org Direction
Organizational Mission: purpose for which an org exists
Included in mission:
• What types of products or services it produces
• Who its customers tend to be
• What important value it holds
Mission statement: written document with org mission to
provide easy access and understanding of mission
Establishing Org Direction
Importance of Org Mission:
Helps
management
direct human
effort
Provides
guidance on
how resources
should be
allocated
Helps
management
define critical
jobs that must
be
accomplished
Org objectives
flow from
mission
Strategic Management Process
Environmental
Analysis
Establishing
organizational
direction
Strategy
Formulation
Strategy
implementation
Strategic
control
Strategy Formulation: process of determining
appropriate courses of action for achieving org
objectives and thereby accomplishing the org
purpose
• Critical question
analysis
• SWOT analysis
• Business portfolio
analysis
3
tools:
Thinking about and answering the following :
• What are the purposes and objectives of the org?
• Where is the org presently going?
• What is the current org environment?
• What can be done better to achieve org objectives in
the future?
• Tool that matches internal org strengths and
weaknesses with external opportunities and threats
• Strengths
• Weaknesses
• Opportunities
• Threats
Strengths
Business strengths are its resources
and capabilities that can be used as a
basis for developing competitive
advantage
Weaknesses
Internal limitations that may interfere
with a company’s ability to achieve
objectives
Opportunities
The external environment analysis
may reveal certain new opportunities
for profit and growth
Threats
The changes in the external
environment that may present threats
to the firm
Presenter
Presentation Notes
Overall – want to take advantage of the company’s strengths and minimize weaknesses to grasp opportunities and avoid threats.
In groups of 4-5 and I will assign you each a company. Write down on your index card strengths, weaknesses, opps, and threats to the company.
Disney
Google
Starbucks
SWOT Analysis
• Tool that matches internal org strengths and
weaknesses with external opportunities and threats
• Strengths
• Weaknesses
• Opportunities
• Threats
Internal
External
Presenter
Presentation Notes
Strengths and weaknesses are in the manager’s firm and opportunities and threats are in the firm’s external environment. Once these things are reviewed, strategy for success will become evident
MGMT 300
Integrated Core: Management
• Based on the philosophy that orgs should
develop strategy as much as they handle
investment portfolios
• Two business portfolio tools:
BCG Growth-Share Matrix
GE Multifactor Portfolio Matrix
Presenter
Presentation Notes
Portfolio tools provide graphic frameworks for analyzing the relationship among businesses of an org and provides useful strategy recommendations
We’re only going to focus on BCG Growth-Share Matrix
Business Portfolio Analysis
• Based on the philosophy that orgs should
develop strategy as much as they handle
investment portfolios
• Two business portfolio tools:
BCG Growth-Share Matrix
GE Multifactor Portfolio Matrix
Presenter
Presentation Notes
Portfolio tools provide graphic frameworks for analyzing the relationship among businesses of an org and provides useful strategy recommendations
We’re only going to focus on BCG Growth-Share Matrix
BCG Growth-Share Matrix
• BCG = Boston Consulting Group
• 1st step: Identify the strategic business units
• Strategic business units: significant org segments
that are analyzed to develop org strategy aimed at
generating future business or revenue
Presenter
Presentation Notes
Portfolio tools provide graphic frameworks for analyzing the relationship among businesses of an org and provides useful strategy recommendations
We’re only going to focus on BCG Growth-Share Matrix
BCG Growth-Share Matrix
Strategic
business
units:
• Single business or collection of related
businesses
• Has its own competitors
• Has a manager who is accountable for
its operation
• Is an area that can be independently
planned for within the org
Presenter
Presentation Notes
Portfolio tools provide graphic frameworks for analyzing the relationship among businesses of an org and provides useful strategy recommendations
We’re only going to focus on BCG Growth-Share Matrix
High
Low
Relative Market Share
High
Low
Market
Growth
Rate
BCG Growth-Share Matrix
Presenter
Presentation Notes
Dogs barely support themselves and may actually drain off cash resources generated from other SBUs. Ex: SBUs that produce typewriters or cash registers
Stars
High Low
Relative Market Share
High
Low
Market
Growth
Rate
Stars: Large share of a high-
growth market and typically needs
large amounts of cash to support
rapid and significant growth
BCG Growth-Share Matrix
Presenter
Presentation Notes
Dogs barely support themselves and may actually drain off cash resources generated from other SBUs. Ex: SBUs that produce typewriters or cash registers
Stars
Cash
Cows
High Low
Relative Market Share
High
Low
Market
Growth
Rate
Cash cows: large
share of a market
that is growing only
slightly
BCG Growth-Share Matrix
Presenter
Presentation Notes
Dogs barely support themselves and may actually drain off cash resources generated from other SBUs. Ex: SBUs that produce typewriters or cash registers
Stars Question
Marks
Cash
Cows
High Low
Relative Market Share
High
Low
Market
Growth
Rate
Question Marks: small share
of a high-growth market
BCG Growth-Share Matrix
Presenter
Presentation Notes
Dogs barely support themselves and may actually drain off cash resources generated from other SBUs. Ex: SBUs that produce typewriters or cash registers
Stars Question
Marks
Cash
Cows Dogs
Dogs: relatively
small share of
a low-growth
market
High Low
Relative Market Share
High
Low
Market
Growth
Rate
BCG Growth-Share Matrix
Presenter
Presentation Notes
Dogs barely support themselves and may actually drain off cash resources generated from other SBUs. Ex: SBUs that produce typewriters or cash registers
Strategy Formulation:
Sample Org Strategies
Based on the categorization of the unit in the
BCG Matrix can help decide on which
strategy.
Growth –
increase amount of
business of unit
Stability –
maintain or slightly
improve amount of
business
Retrenchment –
strengthen or protect
amount of business
Divestiture –
eliminate a business
unit that is not
generating satisfactory
business
Presenter
Presentation Notes
Portfolio tools provide graphic frameworks for analyzing the relationship among businesses of an org and provides useful strategy recommendations
We’re only going to focus on BCG Growth-Share Matrix
Stars Question
Marks
Cash
Cows Dogs
High Low
Relative Market Share
High
Low
Market
Growth
Rate
BCG Growth-Share Matrix
Which boxes
would you match
with the below
strategies?
• Growth
• Stability
• Retrenchment
• Divestiture
MGMT 300
Integrated Core: Management
Common Organizational Strategies
Strategy Formulation
Three generic types of strategies that companies might
use to increase competitiveness of their organization:
Differentiation
Presenter
Presentation Notes
Portfolio tools provide graphic frameworks for analyzing the relationship among businesses of an org and provides useful strategy recommendations
We’re only going to focus on BCG Growth-Share Matrix
Ex: different design or
brand image, technology,
features, customer
service, or price
Presenter
Presentation Notes
Portfolio tools provide graphic frameworks for analyzing the relationship among businesses of an org and provides useful strategy recommendations
We’re only going to focus on BCG Growth-Share Matrix
Strategy Formulation
Three generic types of strategies that companies might
use to increase competitiveness of their organization:
Differentiation
Cost Leadership
Presenter
Presentation Notes
Portfolio tools provide graphic frameworks for analyzing the relationship among businesses of an org and provides useful strategy recommendations
We’re only going to focus on BCG Growth-Share Matrix
https://www.businesswire.com/news/home/20210415005210/en/Dollar-Tree-Inc.-Introduces-Chesapeake-Media-
Group-Its-Retail-Media-Network-Connecting-Brands-with-Shoppers-in-Real-Time
Presenter
Presentation Notes
Portfolio tools provide graphic frameworks for analyzing the relationship among businesses of an org and provides useful strategy recommendations
We’re only going to focus on BCG Growth-Share Matrix
Strategy Formulation
Three generic types of strategies that companies might
use to increase competitiveness of their organization:
Differentiation
Cost Leadership
Focus
Presenter
Presentation Notes
Portfolio tools provide graphic frameworks for analyzing the relationship among businesses of an org and provides useful strategy recommendations
We’re only going to focus on BCG Growth-Share Matrix
Presenter
Presentation Notes
Portfolio tools provide graphic frameworks for analyzing the relationship among businesses of an org and provides useful strategy recommendations
We’re only going to focus on BCG Growth-Share Matrix
MGMT 300
Integrated Core: Management
and Control
Strategic Management Process
Environmental
Analysis
Establishing
organizational
direction
Strategy
Formulation
Strategy
implementation
Strategic
control
Strategy Implementation
Strategy implementation: putting formulated
strategies into action
What skills are needed for successful
strategy implementation?
Presenter
Presentation Notes
Portfolio tools provide graphic frameworks for analyzing the relationship among businesses of an org and provides useful strategy recommendations
We’re only going to focus on BCG Growth-Share Matrix
Strategy Implementation
ability to manage peopleInteracting skills:
ability to provide the org resources necessaryAllocating skills:
ability to use information to determine whether a
problem has arisen that is blocking implementationMonitoring skills:
ability to build a network of people who can help solve
problemsOrganizing skills:
Presenter
Presentation Notes
Portfolio tools provide graphic frameworks for analyzing the relationship among businesses of an org and provides useful strategy recommendations
We’re only going to focus on BCG Growth-Share Matrix
Strategic Management Process
Environmental
Analysis
Establishing
organizational
direction
Strategy
Formulation
Strategy
implementation
Strategic
control
Strategic control:
monitoring and
evaluating the strategic
management process
as a whole to ensure it
is operating properly
Presenter
Presentation Notes
Portfolio tools provide graphic frameworks for analyzing the relationship among businesses of an org and provides useful strategy recommendations
We’re only going to focus on BCG Growth-Share Matrix
- MGMT 300�Integrated Core: Management
- How Long Into the Future Should Managers Focus?
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 38
- Strategy Formulation: �Sample Org Strategies
Strategy Defined
What is Strategic Planning?
Strategic Management
Strategic Management Process
Strategic Management Process
MGMT 300�Integrated Core: Management
Environmental Analysis
Environmental Analysis
Environmental Analysis
Environmental Analysis
MGMT 300�Integrated Core: Management
Environmental Analysis
Environmental Analysis
Environmental Analysis
Environmental Analysis
Environmental Analysis
Environmental Analysis
Environmental Analysis
MGMT 300�Integrated Core: Management
Environmental Analysis
Environmental Analysis
Strategic Management Process
Establishing Org Direction
Establishing Org Direction
Establishing Org Direction
Strategic Management Process
Strategy Formulation: Tools
Critical Question Analysis
SWOT Analysis
SWOT Analysis
MGMT 300�Integrated Core: Management
Business Portfolio Analysis
Business Portfolio Analysis
BCG Growth-Share Matrix
BCG Growth-Share Matrix
BCG Growth-Share Matrix
BCG Growth-Share Matrix
BCG Growth-Share Matrix
BCG Growth-Share Matrix
BCG Growth-Share Matrix
BCG Growth-Share Matrix
MGMT 300�Integrated Core: Management
Strategy Formulation
Differentiation Strategy
Strategy Formulation
Cost Leadership Strategy
Strategy Formulation
Focus Strategy
MGMT 300�Integrated Core: Management
Strategic Management Process
Strategy Implementation
Strategy Implementation
Strategic Management Process
Strategic Control
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