PowerPoint Presentation by Charlie Cook Copyright © 2005 Prentice Hall, Inc. All rights reserved. Chapter 5 Managing the Business Enterprise
Copyright © 2005 Prentice Hall, Inc. All rights reserved.5–2 “Some men see things as they are and say why. I dream of things that never were and say why not.” —John F. Kennedy
Copyright © 2005 Prentice Hall, Inc. All rights reserved.5–3 Key Topics Setting goals and formulating strategies The management process Types of managers by level and area The five basic management skills The development and importance of corporate culture
Copyright © 2005 Prentice Hall, Inc. All rights reserved.5–4 Effective Managers: An Invaluable Resource for Business Managers are responsible for business performance and effectiveness. Managers are accountable to all key stakeholders.
Copyright © 2005 Prentice Hall, Inc. All rights reserved.5–5 Setting Goals Is the Starting Point of Effective Management Strategy: The broad set of action plans to achieve company goals Corporate Strategy Business Strategy Functional Strategy
Copyright © 2005 Prentice Hall, Inc. All rights reserved.5–6 Business Goals Are Performance Targets The purposes of goal-setting: To provide direction for managers To help firms allocate resources To help define corporate culture To help managers assess performance
Copyright © 2005 Prentice Hall, Inc. All rights reserved.5–7 Effective Organizations Set Goals at Many Different Levels Mission Statement: How a business will achieve its fundamental purpose Long-term Goals Intermediate Goals Short-term Goals
Copyright © 2005 Prentice Hall, Inc. All rights reserved.5–8 The Management Process Planning Strategic Tactical Operational Contingency Crisis Organizing Directing Controlling
Copyright © 2005 Prentice Hall, Inc. All rights reserved.5–9 The Control Process Establish Standards Measure Performance Does measured performance match standards? YESNO Continue Current Activities Activities Adjust Performance or Standards
Copyright © 2005 Prentice Hall, Inc. All rights reserved.5–10 Levels of Management Top Managers Middle Managers First-Line Managers
Copyright © 2005 Prentice Hall, Inc. All rights reserved.5–11 Human Resources MarketingMarketing FinancialFinancial OperationsOperations InformationInformation OtherOther Areas of Management
Copyright © 2005 Prentice Hall, Inc. All rights reserved.5–12 Management Skills for the 21 st Century Global Management Skills Information and Technology Skills
Copyright © 2005 Prentice Hall, Inc. All rights reserved.5–13 Management Is Tightly Linked to Corporate Culture Corporate CultureCorporate Culture The shared experiences, stories, beliefs, and norms that characterize an organization Communicating the Culture Managing Change
Copyright © 2005 Prentice Hall, Inc. All rights reserved.5–14 Chapter Review Explain the importance of setting goals and formulating strategies. Describe the management process. Identify types of managers by level and area. Describe the basic management skills. Explain the development and importance of corporate culture.