1. Business Essentials, 7th Edition Ebert/Griffin
Business Management
Business Essentials, 7th Edition Ebert/Griffin
Instructor Lecture PowerPoints
PowerPoint Presentation prepared by
Carol Vollmer Pope Alverno College

2. L E A R N I N G O B J E C T I V E S
After reading this chapter, you should be able to:
Describe the nature of management and identify the four basic functions that constitute the management process.
Identify different types of managers likely to be found in an organization by level and area.
Describe the basic skills required of managers.
Explain the importance of strategic management and effective goal setting in organizational success.
© 2009 Pearson Education, Inc.

3. L E A R N I N G O B J E C T I V E S (cont’d)
After reading this chapter, you should be able to:
Discuss contingency planning and crisis management in today’s business world.
Describe the development and explain the importance of corporate culture.
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4. © 2009 Pearson Education, Inc.
What’s in It for Me?
By understanding the material discussed in this chapter, you’ll be better prepared to:
Carry out various management responsibilities yourself
More effectively assess and appreciate the quality of management in various companies from the perspective of a consumer or investor
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5. Who Are Managers? Who are Good Managers?
Are responsible for business performance and effectiveness
Effective—do the right things; achieve goals
Efficient—do things right; lower costs
Are accountable to all key stakeholders: they :
Develop strategic plans and tactical plans
Analyze their competitive environments and plan, organize, direct, and control day-to-day operations
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6. The Management Process
The process of planning, organizing, leading, and controlling a firm’s financial, physical, human, and information resources to achieve its goals
Planning Setting Goals
Controlling Monitoring Performance
Organizing Structuring
Leading Guiding and Motivating
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7. Planning The Planning Process Determining firm’s goals
Developing strategy for achieving goals
Designing tactical and operational plans for implementing the strategy
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8. Let’s examine the planning process
The firm’s goals answer the question, “Where do we want to go?”. During 1 year more or less.
Next we need to develop strategy for achieving the goals. This strategy tells us how we are going to get where we want to go.
Then we design tactical and operation plans for implementing the strategy. These tactics allow us to follow our strategy and achieve our goals. These tactics answer the question, “Did we arrive where we wanted to be

9. Homework
Every one should prepare action plan in one page that includes: objective- strategy, activities and others. Should be written in a form of matrix.

10. The Organizing Process
Arranging resources and activities in a coherent structure
Prepare organizational charts to help everyone understand roles and reporting relationships
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11. Leading
Leading
Guiding and motivating employees to meet the organization’s objectives
Uniting employees in a clear and targeted manner and motivating them to work in the best interests of the employer
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12. Controlling The Controlling Process
Monitoring a firm’s performance to make sure that it is meeting its goals
Begins when management establishes standards, often for financial performance. These could include return on investment, return on assets, meeting a specific sales goal for a quarter or year, etc.
Can serve as a basis for providing rewards or reducing costs
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13. FIGRE 5.1 The Control Process
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14. Types of Managers Levels of Management
Top managers: Responsible for the overall performance of the firm.
Titles: President, vice president, treasurer, CEO, CFO
Middle managers: Implement strategies and work toward goals set by top managers
Titles: Plant manager, operations manager, division manager
First-line managers: Work with and supervise employees
Titles: Supervisor, office manager, project manager, group leader
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15. Areas of Management Human Resources Operations Marketing Information
Financial
Other
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16. Areas of Management
Human Resources, which manages the recruitment of new employees, employee benefits and record-keeping about employees.
Marketing, which manages getting information about the company’s product or service to the correct consumer market group. Perform the 4s.
Financial, which manages the costs, revenues and expenses of the firm.
Operations, which manages the actual production of the product or design and delivery of the service to the end user. Manages quality.
Information, which manages the information technology for the company.

17. Basic Management Skills
Human Relations Skills
Technical Skills
Decision-Making Skills
Conceptual Skills
time-management skills
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18. Management skills
time-management skills: It is very important for a manager to be able to manage his or her agenda and schedule. It is important to create a “to do” list and stick to it, by prioritizing the things you need to get done in terms of dates or priorities.
Conceptual skills: Being able to analyze strategies and decisions as well as performance and outcome is essential as a manager. to view a situation from a holistic perspective.

19. Management skills
Technical skills: Technical skills in one’s field of responsibility are key. For example, an accounting manager needs to have the technical skills to understand the concepts involved in accounting
Human relations skills: be able to interact socially in teams of peers.
Decision-making skills: Making the correct decision is all-important when managing in any capacity.

20. time-management skills
Four leading time wasters:
Paperwork
Telephone calls
Meetings
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21. Management Skills for the 21st Century
Global Management Skills
Understand foreign markets, cultural differences, and the motives and practices of foreign rivals
Understand how to collaborate with others around the world on a real-time basis
Management and Technology Skills
Needed to process increasing amounts of information
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22. Strategic Management: a set of managerial decisions and actions that determines the long-run performance of a corporation.
Includes:
Internal and external environment scanning
Strategy formulation: vision, mission, goals, strategies.
Strategy implementation: objectives, activities, budget.
Evaluation and control
4/24/2017
Prentice Hall, Inc. ©2012
Prentice Hall, 2012 chapter 1

23. Strategic Management: Setting Goals and Formulating Strategy
The process of helping an organization maintain an effective alignment/arrangement with its environment. Conduct SWOT.
Goals
Starting point in effective strategic management
Objectives that a business hopes and plans to achieve. E.g., sell 100,000 units within the next 6 months.
Strategy
The broad set of action plans to achieve company goals. How will we achieve our goal of selling 100,000
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24. Setting Business Goals
Performance targets that organizations and their managers use to measure success or failure
Mission Statement
A statement of how a business will achieve its fundamental purpose. Business identity.
Effective organizations set goals at many different levels:
Long-term goals: five years or more
Intermediate goals: one to five years
Short-term goals: one year or less
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25. Purposes of Goal Setting
– Provides direction and guidance for managers at all levels
– Helps firms allocate resources
– Helps to define corporate culture
– Helps managers assess performance
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26. Types of Strategy Corporate Strategy 1- Growth 2- Retrenchment
Determines what business or businesses a company will own and operate. It includes:
1- Growth
Related diversification
Unrelated diversification
2- Retrenchment
Downsizing and divestiture
3- Stability
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27. Types of Strategy (cont’d)
Business (or Competitive) Strategy
Focuses on improving the company’s competitive position at the level of the business unit or product line. Types: cost leadership- differentiation- focus.
Functional Strategy
Guides managers in specific areas such as marketing, finance, and operations in deciding how best to achieve corporate goals by performing their functional activities most effectively
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28. Formulating Strategy Step 1: Setting Strategic Goals
Strategic goals are derived from a firm’s mission statement
Step 2: Analyzing the Organization and the Environment: SWOT Analysis
Assessing internal strengths and weaknesses and external opportunities and threats
Environmental analysis
Organizational analysis
Step 3: Matching the Organization and Its Environment
Matching environmental threats and opportunities against corporate strengths and weaknesses
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29. Example on IUG
Strength: experience of signing agreements with many U. Weaknesses: limited financial resources. Opportunities: open cooperation with Egyptian Universities. Threats: economic recession.

30. TOWS Matrix
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2012 Prentice Hall
Prentice Hall 2006

31. Figure 5.2 Strategy Formulation
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32. A Hierarchy of Plans Strategic Plans Tactical Plans Operational Plans
Reflect decisions about resource allocations, company priorities, and the steps needed to meet strategic goals
Tactical Plans
Shorter-term plans for implementing specific aspects of the company’s strategic plans, involve upper and mid-level management
Operational Plans
Mid-level and lower-level managers set short-term targets for daily, weekly, or monthly performance
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33. Contingency Planning and Crisis Management
Planning for change, Seeks to identify in advance important aspects of a business or its market that might change and the ways in which a company will respond to changes. E.g., expect to reach sale 10%, but may not happen.
Crisis Management
Involves an organization’s methods for dealing with a crisis—an unexpected emergency requiring immediate response.
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34. Management and the Corporate Culture
Is the shared experiences, stories, beliefs, and norms that characterize an organization
Helps define the work and business climate that exists in an organization
Communicating the Culture
Managers must understand the culture
Managers must transmit the culture to others in the organization
Managers can support the culture by rewarding and promoting those who understand it and work toward maintaining it
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35. Stages in the Change Process in culture
– changing organization culture is difficult, it takes time.
-At the highest level, analysis of the company’s environment highlights extensive change as the most effective response to its problems.
– Top management begins to formulate a vision of a new company.
– The firm sets up new systems for appraising and compensating employees who enforce the firm’s new values.
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36. Homework
Page 75, questions 1-6