Principles of Management.ppt

PrinciplesofManagement,2,2020/6/15,201209-12,2,WhoAmI?,1998BachelordegreeofEconomicsinSCU2000MasterdegreeofEuropeanStudiesinUMAC2001InternshipinEuropeanCommissionand3monthsofPh.D.inManagementstudyingatNTUinSingapore2001SeptemberbacktoBusinessSchoolofSCU,3,2020/6/15,201209-12,3,DeliveredCourses,ManagementprinciplesundergraduatecourseManagerialeconomicsundergraduatecourseMarketingundergraduatecourseBusinessEnglishundergraduate,master,MBAandEMBAcoursesGlobalbusinessundergraduatecoursesforvisitingstudentsfromforeignuniversities,suchasESCBurgundySchoolofBusiness,France,PacificLutheranUniversity,U.S.A.,etc.InternationalBusinessDevelopmentundergraduatecourseBusinessAnalysisundergraduatecourseforACCAstudents,4,2020/6/15,201209-12,4,ContactInformation,5,2020/6/15,201209-12,5,RulesOneIntheCourses,EnglishAsmuchaspossible,A.M.A.P.OtherlanguagesAslittleaspossible,A.L.A.P.,6,2020/6/15,201209-12,6,RulesTwoIntheCourses,DonthesitatetointerruptmewheneveryougetlostinmycoursedeliveryRemindingoptions:RaisethehandStandupShoutout,7,2020/6/15,201209-12,7,RulesThreeIntheCourses,TeamworkspiritestablishmentWorkingingroupTeamprojectpaperwriting,8,2020/6/15,201209-12,8,RulesFourIntheCourses,Whenyouanswermyquestions,therearetwooptionsforyoutochoosefreely:StandingupSittingdowninyourseat,Chapter,1,Management,2020/6/15,10,LearningObjectives,DescribethebasicfunctionsofmanagementIdentifywhereinanorganizationmanagersarelocatedDiscussthechallengespeopleencounterastheybecomefirst-linemanagersDescribetherolesmanagersadopttoperformthebasicfunctionsofmanagementOutlinethecompetenciesmanagersmusthavetobeeffective,2020/6/15,11,ManagementandManagers,Management:TheartofgettingthingsdonethroughpeopleintheorganizationManagersgiveorganizationsasenseofpurposeanddirectionManagerscreatenewwaysofproducinganddistributinggoodsandservicesManagerschangehowtheworldworksthroughtheiractions,2020/6/15,12,LeadersversusManagers,2020/6/15,13,FunctionsofManagement,Controlling,Planningfunctionalfrontline;generalfunctional;frontlinegeneral;frontline,2020/6/15,24,Multi-divisionalManagementHierarchy,Business-levelgeneralmanagers,2020/6/15,25,BecomingaManager,FromSpecialisttoManagerJourneybeginswhenpeoplearesuccessfulataspecialisttaskthattheywerehiredtodoNeedtobeabletogetthingsdonethroughotherpeopleMasteringtheJobTendstobealargedifferencebetweenexpectationsandrealityWorkloadistremendousBiggestchallengewithinthefirstyear=“Peoplechallenges”,2020/6/15,26,ManagementRoles,2020/6/15,27,InterpersonalRoles,RolesthatinvolveinteractingwithotherpeopleinsideandoutsidetheorganizationManagementjobsarepeople-intensiveInterpersonalroles:Figureheads:Greetvisitors,Representthecompanyatcommunityevents,Serveasspokespeople,andFunctionasemissariesfortheorganizationLeader:Influence,motivate,anddirectothersaswellasstrategize,plan,organize,control,anddevelopLiaison:Connectwithpeopleoutsidetheirimmediateunit,2020/6/15,28,InformationalRoles,Collecting,ProcessingandDisseminatingRoles:Monitor,disseminator,andspokesperson,2020/6/15,29,DecisionalRoles,Whereasinterpersonalrolesdealwithpeopleandinformationalrolesdealwithknowledge,decisionalrolesdealwithactionDecisionalroles:Entrepreneur:Managersmustmakesuretheirorganizationsinnovate,change,develop,andadoptDisturbancehandler:AddressingunanticipatedproblemsastheyariseandresolvingthemexpeditiouslyResourceallocator:HowbesttoallocatescarceresourcesNegotiator:Negotiationiscontinualformanagers,2020/6/15,30,AlanMulalley,CEOBoeingCommercialAirplanes,DecisionalRoles:AfterSeptember11attacks,Mulalleyhadtorenegotiatedeliveryofsome500airplanesCutjetproductionbymorethanhalfFire27,000workersDuringthedownturn,hefocusedoncuttingwasteandstreamlininghisairplaneproductionlinesHethenbetthecompanysfutureonasetofnewtechnologiesthatarenowturningBoeingssuperefficient787Dreamlinerintothehottest-sellingnewjetlinerinhistory,Source:Bestof2005,BusinessWeek,December19,2005,2020/6/15,31,ManagementCompetencies,Skills,MotivationalPreferences,Values,Includes,2020/6/15,32,ManagerialSkills,ConceptualSkillsTechnicalSkillsHumanSkills,2020/6/15,33,ManagerialValues,EnactedValuesEspousedValuesSharedValuesEthicalValues,2020/6/15,34,ManagerialMotivation,DesiretoCompeteDesiretoExercisePowerDesiretobeDistinctDesiretoTakeAction,Chapter,2,TheExternalandInternalEnvironment,2020/6/15,36,LearningObjectives,Identifythemajorcomponentsofanorganizationstaskenvironment.Explainhoweachcomponentinthetaskenvironmentimpactstheorganization.Identifythemajorcomponentsofanorganizationsgeneralenvironment.Explainhoweachcomponentinthegeneralenvironmentimpactstheorganization.Discussthenatureofchangeintheexternalenvironment.Outlinethemaincomponentsoftheinternalenvironmentofanorganizationandarticulatetheirimplicationsformanagerialimplications.,2020/6/15,37,TheEnvironmentofManagers,2020/6/15,38,SWOT,2020/6/15,39,TaskEnvironment,2020/6/15,40,ThreatofEntry,BarrierstoentryfactorsthatmightmakeitcostlyforpotentialcompetitorstoenteranindustryandcompetewithfirmsalreadyintheindustryEconomiesofscalecostreductionassociatedwithlargeoutputBrandloyaltythepreferenceofconsumersfortheproductsofestablishedcompanies,2020/6/15,41,Wal-MartinIndia?,GovernmentpolicydoesnotallowforeignretailerstosetupshopsinIndiayet,however,Wal-MarthasdeclareditsintentionstoenterIndianmarketassoonasthepolicychanges.EconomiesofscalesandgrowthWal-Martsannualsales$285billionwithonly10countrypresenceBrandloyaltyGiventhepricepoints,consumersareatleastprice-loyal,Source:Adaptedfrom:/attachment/WhattoIndia.pdf,2020/6/15,42,BargainingPowerofBuyers,Buyersaremostpowerfulwhen:TheyarefewinnumberandpurchaselargequantitiesTheycanchoosebetweenequivalentproductsfrommanydifferentfirmsTheycanswitcheasilybetweentheofferingsofdifferentfirmsBuyersareleastpowerfulwhen:TheyareplentifulandpurchaseinsmallquantitiesTheyhavelittlechoiceTheycannotswitcheasilybetweentheofferingsofdifferentfirmsSwitchingCosts,2020/6/15,43,BargainingPowerofSuppliers,Firmhasgreaterpoweroversupplierswhen:ThefirmpurchasesinlargequantitiesItcanchoosebetweenmultiplesuppliersThecostsofswitchingbetweensuppliersislowThefirmisnotdependantonanysinglesupplierforimportantinputs,2020/6/15,44,SuppliersBargainingPowerWithWal-Mart,Wal-MarthassignificantinfluenceoveritssuppliersMarginsforsuppliersareverylowtopracticallynonexistentWal-MartnonethelesshassupplierseagertosupplyProductsthataresourcedfromIndia:apparel,finejewelry,hometextiles,andhousewareItemsforwhichsourcingisontherisefromIndia:officesupplies,seasonalhandicrafts,food,shoes,andleathergoods.WithWal-MartsanticipatedentryintotheIndianmarket,thesuppliersarealreadyexpandingtheiroperations,Source:Adaptedfrom:/attachment/WhattoIndia.pdf,2020/6/15,45,TheThreatofSubstitutes,ThegoodsorservicesofdifferentbusinessesorindustriesthatcansatisfysimilarcustomerneedsTheexistenceofsubstitutesisastrongcompetitivethreatbecauseitlimitsthepricethatcompaniesinonestorecanchangeIftherearefewsubstitutes,firmshavetheopportunitytoraiseprices,2020/6/15,46,TheIntensityofRivalry,ThenatureoftheproductTheintensityofrivalrydependsonhowclosetheproductistoacommodity(aproductthatisdifficulttodifferentiatefromthoseproducedbyrivals).DemandandsupplyconditionsIfdemandisgrowingtheindustrywillappearfavorable.Demandtrendsareinfluencedbyeconomicgrowth,2020/6/15,53,Cellularvs.Landlines,Withallthetechnologicaldevelopments,topthreereasonswhypeoplesaytheywillkeeptheirtelephonelandlines:Likethesafetyofthem26%Netaccessuse20%Unattractivewirelesspricing12%,Source:,2020/6/15,54,IncrementalVs.DiscontinuousChange,IncrementalchangeChangesthatdonotalterthebasicnatureofcompetitioninthetaskenvironment.DiscontinuouschangeChangesthatfundamentallytransformsthenatureofcompetitioninthetaskenvironment.PunctuatedEquilibriumAviewofindustryevolutionassertingthatlongperiodsofequilibriumarepunctuatedbyperiodsofrapidchangewhenindustrystructureisrevolutionizedbyinnovation.,2020/6/15,55,EnvironmentalUncertainty,Theenvironmentisnotonlyconstantlychanging,thenatureofchangeisfrequentlydifficulttopredictManagementtriestodealwiththisby:CollectingInformationMarketingResearchCompetitiveIntelligenceExertingcontrol,2020/6/15,56,TheInternalEnvironment,Employees,Resources,Organizationofthefirm,57,2020/6/15,Culture,Thebasicpatternofvaluesandassumptionssharedbyemployeeswithinanorganization.Importantbecauseitinfluenceswhatamanagercanandcannotdoandwhatisencouragedordiscouragedbytheorganization,2020/6/15,58,HumanCapital,Knowledge,Skills,Capabilities,2020/6/15,59,Resources,TangibleresourcesphysicalassetsIntangibleresourcesnonphysicalassets,2020/6/15,60,UniquelyStrongResources,Chapter,3,GlobalizationandTheManager,2020/6/15,62,LearningObjectives,Explainwhatglobalizationis.Describetheprocessesdrivingglobalization.Identifytheimplicationsofglobalizationforbusinessenterprises.Discussdifferentconstraintslimitingthepaceofglobalization.Outlinethebenefitsofgoingglobalforabusinessfirm.Discusssomeofthechallengesofmanaginginaglobalenterprise.,2020/6/15,63,Globalization,Theprocesswherebynationaleconomiesandbusinesssystemsarebecomingdeeplyinterlinkedwitheachother.,2020/6/15,64,AcceleratedPaceofGlobalization,Threemainreasons:Thespreadofmarket-basedeconomicsystemsThedeclineofbarrierstointernationaltradeandforeigndirectinvestmentFallingcostsofcommunicationandtransportation,2020/6/15,65,MarketEconomy,MostbusinessesareprivatelyownedPricesaresetbytheinteractionofsupplyanddemandGovernmentregulationislimitedtoensuringthatcompetitionbetweenindividualenterprisesisfreeandfairandthatthesystemdoesnotproduceoutcomesjudgedtobeunacceptable,2020/6/15,66,SocialistEconomy,MostbusinessesareownedbythestatePrivateproducerswereexcludedfromcertainindustrialandcommercialactivitiesPricesweresetbythestateStateplannersdecidedwhatwasproducedwhere,inwhatquantity,andbywhomAntitheticaltoglobalization,2020/6/15,67,PrivatizationinKosovo,Authoritieshaveputanother23firmsforsaleinKosovoHundredsofothergovernment-ownedcompanieshavealreadybeensoldwhichwereconsideredinefficientanddilapidatedIn2006,theprovinceseconomygrew5%forthefirsttimedrivenbytheprivatesectorHowever,theunemploymentisstillat50%,Source:TheAssociatedPress,December28,2006,2020/6/15,68,FallingBarrierstoTradeandInvestment,TariffsAtaxonimportsQuotasAlimitonthenumberofitemsofagoodthatcanbeimportedfromaforeignnationRegionaltradeagreementsagreementstoremovebarrierstotradebetweennationswithinageographicregion,2020/6/15,69,Communication&TransportationCosts,Satellite,Opticalfiber,Wirelesstechnologies,Internet,2020/6/15,70,FallingCommunicationCosts,In1983,athreeminutetelephonecallfromtheUSAtoIndiawouldcost$13.50onAT&T(beforethebreakup)goingthroughtheoperatorToday,usingtheInternet,onecanmakethesamecallforfree(noneedforoperator)Thetraditionaltelephonelandlineorcellularphonewouldcostfewpenniesperminute(noneedforoperator).,2020/6/15,71,ImplicationsofGlobalization,AmassivesurgeinthevolumeofinternationaltradeandforeigndirectinvestmentsForeignDirectInvestment(FDI)hasincreasedevenmoredramaticallyForindividualenterprisesandtheirmanagers:GlobalizationofproductioniswellunderwayGlobalizationofmarketsisstartingtooccurAdvancesintechnologyarefacilitatingthesetrends,2020/6/15,72,GlobalizationofProduction,2020/6/15,73,GlobalizationofMarkets,MergingofhistoricallydistinctandseparatenationalmarketsintoonehugemarketplaceAsfirmsfolloweachotheraroundtheworld,theybringProductsOperatingstrategiesMarketingstrategiesBrandnamesGreateruniformityreplacesdiversity,2020/6/15,74,TechnologyInnovations,AllowmanagerstocreateandthenmanageagloballydispersedproductionsystemFurtherfacilitatingtheglobalizationofproductionFacilitatedinglobalizationofmarkets,2020/6/15,75,ITSpending,Source:BusinessWeek,October27,2005,2020/6/15,76,ConstraintstoGlobalization,Limittheabilityofmanagerstomoveproductionactivitiestoplaceswheretheycanbeperformedatthelowestcost.Also,limitthemanagersabilitytotreattheentireworldasasinglehomogeneousmarketplace,2020/6/15,77,ConstraintstoGlobalization,2020/6/15,78,GlobalPackaging?,In2003McDonaldsannouncedthatall300,000ofitsrestaurantsinover100countrieswillsoonadoptthesamebrandpackagingforitsmenuitems.Twoyearslater,thecompanybackpedaledandannouncelocalizationComputermanufacturerHPusesasmanyaseightlanguagesonitspackagingProcter&Gambleadjustsitsbrandingstrategyacrossborders,Source:BusinessWeekOnline,January23,2006,2020/6/15,79,ReasonsforExpansion,ExpandthemarketRealizescaleeconomiesRealizelocationeconomiesBenefitfromgloballearning,2020/6/15,80,RealizingLocationEconomiesinIndia,Acc