1. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-1 Management, Leadership, and the Internal Organization Management

2. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-2 What is Management? ●Process of achieving organizational objectives through people and other resources. ●The allocation of scarce resources ●It is not dictating what othersshould do

3. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-3 Skills Needed for Managerial Success ●Technical ●Human ●Conceptual

4. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-4 Management Functions ●Planning ●Organizing ●Directing ●Controlling

5. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-5 ●Comparison of Leadership Styles

6. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-6 Organizing and Operating a Corporation ●Levels of Management in a Corporation

7. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-7 ●The Management Hierarchy Strategic Planning Tactical Planning Operational Planning

8. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-8 Setting a Vision and Ethical Standards for the Firm ●Vision—perception of marketplace needs and methods an organization can use to satisfy them –Helps to direct the company toward opportunities... and differentiates it from competitors –Helps unify the actions of far-flung divisions, keep customers satisfied, and sustains growth

9. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-9 The Mission Statement ●Written explanation of an organization’s business intentions and aims –Enduring statement of company’s purpose –Guides the actions of people inside the firm –Informs customers and stakeholders of the company’s underlying reason for existence ●Want the mission statement to tell you what you will and will not do

10. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-10 ●Strategic Planning - Elements of SWOT Analysis

11. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Competitive Advantage ●Must find a way to differentiate your business –Product –Distribution –Terms and conditions –All products can be differentiated ●If you can not differentiate your business, you must compete on price – very tough business 1-11

12. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-12 Establishing Objectives for the Organization ●Objectives — guideposts which define the desired performance in such areas as profitability, customer service, growth, and employee satisfaction. –Examples:  Grow sales this year by 20%  Establish distributor in China next year  Reduce employee turnover by 30% ●Objectives should be SMART Specific, Measurable, Achievable, Realistic, Timely