#1 Introduction

#1 Introduction - Introduction To SM299 Professor Ted...

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Unformatted text preview: Introduction To SM299 Professor Ted Chadwick Today's Lecture t t Introduction to SM299: Management as a System (Intensive) The Management System t t t t Values Goals Strategies Procedure Legal Organizational t Corporate Structure t t SM299 What it is A Six Credit Course A Catch-Up Course A Gateway Course A Lot of Work What it is not A Weed-Out Course A Course to Be Taken Lightly A Course You Don't Have to Show Up For SM 299 Grades t Historical Overall Average: BLast semester 70% of students received Bor better Grades can be higher or lower Are YOU Willing and Able t t t SM 299 Course Delivery Lecture Tuesday/Thursday 8:30 AM ( and a few Fridays) t Discussion section Tuesday & Thursday t t Cases, exercises, presentations Memos, computer competency, library, team building t Lab section Friday t SM299 - Content t t t t t t t t t t General Management Accounting Finance Marketing Operations Management Information Technology Business Strategy Industry Analysis International Management Business Communication t t Writing Presentation t t Ethics Team Work SM 299: Learning Trajectories SM 299 Organizational & Functional Knowledge Business Writing Individual and Team Presentation Abilities Team Skills SM299 People and Support Organizations Course Coordinator Prof. Theodore Chadwick Communication Professor Prof. Nancy Lee Nelson Head Teaching Assistant Ralph Chao ERC (Education Resource Center) tutors and writing t t 4th Floor of GSU www.bu.edu/erc/ UPO - Sally Ward Who am I? t t t Sally E. Ward, Assistant Director, Intra University Transfer Coordinator, CGS Liaison, seward@bu.edu You can call me at 617/3532650 You will see me at class; stop & say hello! Need to meet with an advisor? Come see us during walk in advising hours this week. t Hours TBA SM 299 Deliverables t t t 3 memos 3 exams 2 flash assignments t t 1 Individual 1 team t t t t 3 team presentations (semester project) 1 individual presentation 1 team news presentation Class participation Semester-long Industry Project t What is an Industry? t t t A collection of firms competing in a market defined by the technology of the product or by specific characteristics of the service provided. Key is to note that competitors within a given industry are competing for the same general set of customers. Caveat- firms can be in the same industry but not compete for the same customers. Understanding The Competitive Environment Industries Manufacturing (31, 32 and 33) N US orth St Am an e da ric rd a n In In du du st st r ia r y lC C l a l as ss si US ifi fic ca at Ce t io i o ns n nS us Sy y Bu st ste em m re au (S (N A IC IC ) S ) Sector (3361) Sector Health Care Health Care Aerospace Subsector Automobile and (33611) Mining Products (62) Industry Light Duty Vehicles Mining Primary Metals Group Industry Computers (21) (315) (322) (62) (3363) (331) (21) Transportation Sub-Sector Equipment (336) Utilities Utilities (22) Information (22) Information (51) (51) Industry Group Motor Vehicles Apparel Paper Mfg. Sub-Industry Motor Vehicle Parts (3363) (334) Automobiles (336111) September 14, 1998 SM299 IT Information Sakai Primary means of course-wide communication You absolutely must maintain your ACS email account If you are enrolled you have a Sakai account http:smgtools.bu.edu Two Sites C1 Course Information Syllabus Calendar C2/C3 Section Information Each student must sign-up for an Active Directory (AD) account. An ElementK account an online tutorial for Microsoft Office applications can be obtained for anyone who wants one. . Other Important SM299 Stuff Course materials Bookstore: 1. Sharp EL738 Financial Calculator - available on the third floor of the BU Bookstore (around $40). This calculator is the only calculator allowed in the exam sites. (Older model EL 733A is also allowed) SMG Copycenter SM 299 Course Packet 1. A spiral bound text, The Management System VALUES Strategies Procedures Objectives A Management System is a logical and integrated set of corporate values, business strategies, and administrative procedures designed to achieve explicit goals or objectives. Objectives - WHOSE? t t t t t t Owners Managers Employees Customers Communities (Society) Other stakeholders (*) (*) Stakeholder: "Anyone who is affected by the existence of the firm" Objectives - WHAT KIND? t t t t t Consistent with values Realistic, given capabilities Logical, given the competitive environment Responsive to stakeholders' needs Measurable, so you know when you get there t Monetary objectives / goals t Non-monetary objectives / goals Strategies - the plans t Dealing with industry players t Customers t Suppliers t Competitors (Allies?) Selecting Scale and Scope t Growth? (Size = SCALE; Variety = SCOPE) t Specialization vs. Diversification? t Vertical / Horizontal integration Building Intangible Assets t People t Technology And much more Strategies are aimed at creating and sustaining advantages over competitors so the firm can achieve its goals in ways that are consistent with its values. t t t Procedures - the who and the "how to" People t t t t Leadership Teams Individuals Organizations Tools of the trade t Accounting t Finance t Operations Management t Marketing t Information Technology t Research & Development t Human Resource Management t Organizational structure Procedures help companies to develop competencies that enable them to compete successfully. The ability to execute procedures and implement strategies is influenced by the way a company is structured. A management system is effective when it possesses: t External Coherence - It enables the company to satisfy customer and stakeholder wants and needs. t Internal Consistency - Objectives, strategies,and procedures are consistent with each other and with corporate and personal values. t Organizational Continuity - The company builds on yesterday's accomplishments and what it does today contributes to tomorrow's success. Structure t The ability to execute procedures and implement strategies is influenced by the way a company is structured. Legal t t t t t Organizational t t t t So what? Choices Pros and cons Influencing factors So what? Choices Pros and cons Influencing factors Determines what firms MUST do. Contributes to firms' ABILITY to do. Legal Structure - so what? t t t t t Forming and (maybe) closing the business Selling the business Controlling the business Assuming risk Getting money: t t Into the business (raising debt and/or equity) Out of the business (receiving dividends) t t t Paying taxes Disclosing information Subjecting to regulation Legal Structure - Choices, Goals, strategies, risk preferences, and Pros and Cons tax laws influence the choice. Liability Pay Taxes Disclose Information Raise Money Distribute BureauReturns cracy Governance SOLE PROPIETORSHIP Individual Individual SOLE PROPRIETORSHIP Very Little Very Difficult Get Money Income Earned $100 Minimal Owner When Paperwork Personal PARTNERSHIPControlled Taxes (30%) $ 30 Needed SOLE PROPRIETORSHIP PARTNERSHIP Income EarnedIncome Net (personal) PersonalCORPORATION Taxes (30%) Net (personal) Income Income Earned Distribute Partners Partners PARTNERSHIP Very Much Not So Difficult Corporate Taxes (30%) Partner $ 30 Profits to Net (corporate) Income Controlled $ 70 Partners Dividends paid $ 70 Pay Shareholders Dividends Taxes (15%) Board11 Personal $ of Extensive Net to (personal) Income Directors $ 59 Paperwork Management (CEO) $100 $ 70 $ 30 $ 70 $100 CORPORATION Corporate Protection Double Taxation CORPORATION Shareholders Other Forms of Ownership and Related Issues Merger and Acquisition Companies buying other companies or entering an agreement to operate as one. Significant area of concern for Wall Street and investors. Friendly v Adversarial. Franchises The rights to using a particular business model or name to conduct business. McDonald's was built on franchising. Ownership and expertise. Organizational Structure So what? t Decision-making: t How? t Who? Coordination of activities t Responsibility for performance t Information: t t Gathering t Transmittal Organizational Structure Choices t Style (vertical relationships) t Design (horizontal relationships) Mechanistic t Organic t by Function t by Product t by Customer t by Geography t Matrix and others t Organizational Structure-Styles (*) Mechanistic t t Organic t t Highly specialized tasks Clearly hierarchical t t t Broad, general tasks Not hierarchical t t t clear task specification defined authority rank-based decisionmaking t tasks adjusted as needed network of authority expertise-based decisionmaking t Specified communications t t As-needed communications t t vertical instructions (top-down ) t vertical, horizontal, etc. multiple information flows t Emphasis on loyalty and obedience (*) Adapted from Burns and Stalker Emphasis on expertise and commitment Organizational Structure- Design Function-based Structure Shareholders Advantages: t Functional capability t No duplication t Economies of scale t Optimized central control Board of Directors CEO Production Marketing Finance Disadvantages: t Barriers to cross-functional action and learning t Concentrates on functional, not customer, needs t No "local" accountability for profits t Narrow career paths hinder in-house promotion to top jobs Organizational Structure- Design Product-based Structure Shareholders Advantages: t Focus on the product t Clear profit responsibility t Enhanced opportunity for multifunctional careers Board of Directors CEO Plastics Medicines Textiles Disadvantages: t Costly duplication of functions t Focus on products, not customers t Loss of economies of scale t Potential for "parochial" goals and careers t Potential for sub-optimizing corporate resources Organizational Structure- Design Customer-based Structure Shareholders Advantages: t Focus on customers t Clear profit responsibility t Cross-functional career opportunities Board of Directors CEO Consumers Industries Governments Disadvantages: t Costly duplication of functions t Loss of product-based growth opportunities t Loss of economies of scale t Potential for sub-optimizing corporate resources Organizational Structure The Dilemma t t t All organizational structures have advantages and drawbacks Companies continually seek optimal structures Companies often resort to "matrix" and other innovative structures in this quest. t t t Cross functional teams are at the heart of all innovative organizational structures Internal and external variables affect organizationalstructure decisions The "optimal" structure evolves as a company grows and the world changes. Organizational Structure Influencing Variables Strategy Objectives Stability of Environment Technology National Culture Mostly External Values / Corporate Culture Appropriate Organizational Structure Sub-unit Diversity Size Management Style Workforce Mostly Internal ...
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This note was uploaded on 04/07/2008 for the course SM 299 taught by Professor Dixon during the Summer '08 term at BU.

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#1 Introduction - Introduction To SM299 Professor Ted...

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