1. Fourth Edition Copyright ©2003 Prentice Hall, Inc. PART 2........................ Understanding the Business of Managing

2. Copyright ©2003 Prentice Hall, Inc. 5 - 2 Chapter 5 Managing the Business Enterprise

3. Copyright ©2003 Prentice Hall, Inc. 5 - 3 “Some men see things as they are and say why. I dream of things that never were and say why not.” ~ John F. Kennedy

4. Copyright ©2003 Prentice Hall, Inc. 5 - 4 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

5. Copyright ©2003 Prentice Hall, Inc. 5 - 5 Managers are responsible for business performance and effectiveness. Managers are accountable to all key stakeholders. EFFECTIVE MANAGERS An Invaluable Resource for Business

6. Copyright ©2003 Prentice Hall, Inc. 5 - 6 Strategy: The broad set of action plans to achieve company goals Corporate Strategy Business Strategy Functional Strategy Setting Goals Is the Starting Point of Effective Management

7. Copyright ©2003 Prentice Hall, Inc. 5 - 7 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

8. Copyright ©2003 Prentice Hall, Inc. 5 - 8 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

9. Copyright ©2003 Prentice Hall, Inc. 5 - 9 A Well-Formulated Strategy Is Vital to a Business’s Success Strategy Formulation Set Strategic Goals Analyze the Organization Analyze the Environment Match the Organization and its Environment Formulate Strategy

10. Copyright ©2003 Prentice Hall, Inc. 5 - 10 The Management Process Planning Strategic Tactical Operational Contingency Crisis Organizing Directing Controlling

11. The Control Process 5 - 11 Establish Standards Measure Performance Does measured performance match standards? YESNO Continue Current Activities Adjust Performance or Standards

12. Copyright ©2003 Prentice Hall, Inc. 5 - 12 Levels of Management Top Managers Middle Managers First-Line Managers

13. Copyright ©2003 Prentice Hall, Inc. 5 - 13 Human Resources Marketing Financial Operations Information Other Areas of Management

14. Copyright ©2003 Prentice Hall, Inc. 5 - 14 Basic Management Skills Human Relations Skills Technical Skills Conceptual Skills Time Management Skills Decision- Making Skills

15. Copyright ©2003 Prentice Hall, Inc. 5 - 15 How to Spot the E-CEO Traditional CEO EncouragingAlertCordial Fast moving Anti-ambiguity Age: 57 RichE-CEOEvangelizingParanoid Brutally frank Faster moving Pro-ambiguity Age: 38 Richer

16. Copyright ©2003 Prentice Hall, Inc. 5 - 16 Management Skills for the Future Global Management Skills Information & Technology Skills

17. Copyright ©2003 Prentice Hall, Inc. 5 - 17 Management Is Tightly Linked to Corporate Culture Corporate Culture: The shared experiences, stories, beliefs, and norms that characterize an organization Communicating the Culture Managing Change

18. Copyright ©2003 Prentice Hall, Inc. 5 - 18 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.