1. 1-1

2. Chapter Managing 1 1McGraw-Hill/Irwin Management, 7/e Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

3. 1-3 Learning Objectives  The major challenges of managing in the new competitive landscape  The drivers of competitive advantage for your company  The functions of management and how they are evolving in today’s business environment  The nature of management at different organizational levels  The skills you need to be an effective manager

4. 1-4 The ‘New’ World “The Darwinian struggle of daily business will be won by people – and the organizations – that adapt most successfully to the new world that is unfolding.” - Business Week August 21-28, 2000

5. 1-5 Managing in the New Competitive Landscape  Four elements that are defining the current business environment  Globalization  Internet  Importance of knowledge and ideas  Collaboration across organizational boundaries

6. 1-6 Comments on the Competitive Landscape

7. 1-7 Managing for Competitive Advantage  Good managers know that they are in a competitive struggle to survive and win  To survive and win you must gain an advantage over your competitors  The key to long-term success is the competitive advantage held by the company

8. 1-8 Managing for Competitive Advantage  Sources of competitive advantage  Innovation Innovation  Quality Quality  Speed Speed  Cost Cost

9. 1-9 Managing for Competitive Advantage  Which strategy should a manager use?  The best managers and companies deliver them all

10. 1-10 The Functions of Management  Management is the process of working with people and resources to accomplish organizational goals  Good managers are both effective and efficient in this process  Efficient means goals are achieved with minimal resources wasted  Effective means that the organizational goals are achieved

11. 1-11 The Functions of Management  What do managers do?  Plan  Organize  Lead  Control

12. 1-12 The Functions of Management  Planning: Delivering Strategic Value  Systematically making decisions about the goals and activities that an individual, group, work unit, or organization will pursue in the future  Organizing: Building a Dynamic Organization  Assembling and coordinating human, financial, physical, informational, and other resources needed to achieve goals

13. 1-13 The Functions of Management  Leading: Mobilizing People  Stimulating people to be high performers; includes motivating and communicating with employees, individually and in groups  Controlling: Learning and Changing  Monitoring performance and making needed changes

14. 1-14 Management Levels and Skills  Three levels of management  Top-Level: these managers are responsible for the overall management and effectiveness of the organization  Middle-Level: these managers are located in the middle layers of the organizational hierarchy and report to top-level executives  Frontline: lower-level managers who supervise the operational activities of the organization

15. 1-15 Management Levels and Skills

16. 1-16 Managerial Roles

17. 1-17 Managerial Skills  Technical Skill: Ability to perform a specialized task involving a particular method or process  Conceptual and decisional skill: Skills pertaining to the ability to identify and resolve problems for the benefit of the organization and its members  Interpersonal and Communication Skills: People skills; the ability to lead, motivate, and communicate effectively with others

18. 1-18 You and Your Career  Develop ‘EQ’  Be both a specialist and generalist  Be Self-Reliant  Be Connected  Actively manage Relationships  Survive and Thrive

19. 1-19 Looking Ahead to Chapter 2  The External Environment Organizational Culture  The Macro-environment  The competitive environment  Environmental Analysis  Responding to the Environment  Culture and the Internal Environment of Organizations

20. 1-20 Innovation Tide took its well established detergent into new directions including Tide for cold-water washing, and a scrub brush to get out stains—all branded with the Tide name.  Innovation is today’s holy grail  The most potent means of creating new wealth  It comes from people; it must be a strategic goal; and it must be managed properly Innovation is the introduction new goods and services Return

21. 1-21 Quality Product  Relates to the actual product/service  Is now system focused – continuous improvement Service  Making things easy for customers  Customizing products  Customer relationship Management The excellence of your product (goods or services) Has increased in importance Has two vital areas Return

22. 1-22 Speed  Fast and timely execution, response, and delivery of results  Speed is no longer just a goal of some companies; it is a strategic imperative Return

23. 1-23 Cost  Keeping costs low in order to achieve profits and be able to offer prices that are attractive to consumers Return