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the 3 generic strategies - ANSWER ✓ generic business strategies that are neither
organization nor industry specific and can be applied to any business, product, or
service
1) broad cost leadership
2) broad differentiation
3) focused strategy
-Porter suggests adopting only one of the 3 generic strategies
what are the 6 steps of the decision-making process? - ANSWER ✓ 1) problem
identification -> define the problem as clearly and precisely as possible
2) data collection -> gather problem-related data, including who, what, where,
when, why, and how, -> be sure to gather facts NOT opinions or rumors about the
problem
3) solution generation -> detail every solution possible, including ideas that see,
farfetched
4) solution test -> evaluate solutions in terms of feasibility, sustainability, and
acceptability
5) solution selection -> select the solution that best solves the problem and meets
the needs of the business
6) solution implementation -> if the solution solves the problem, then the decisions
made were correct, it not, they were incorrect and process begins again
feasibility - ANSWER ✓ can it be completed
sustainability - ANSWER ✓ is it a permanent or permanent fix
acceptability - ANSWER ✓ can all participants form a consensus
,what is the pyramid structure for decision making in organizations - ANSWER ✓
TOP - strategic (unstructured decisions)
MIDDLE - managerial (semi structured decisions)
BOTTOM - operational level (structured decisions)
operational level - ANSWER ✓ employees develop control, and maintain core
business activities required to run the day-to-day activities
-operational level employees make operational decisions
operational decision - ANSWER ✓ affect how the firm is run from day to day.
they are the domain if operations managers, who are the closest to the customer
structured decisions - ANSWER ✓ arise when established processes offer
potential solutions
-are made frequently and are almost repetitive in nature, they affect short term
business strategies
-reordering inventory and creating the employee staffing and weekly production
schedules are examples of this
managerial level - ANSWER ✓ employees are continuously evaluating company
operations to hone the firm's abilities to identify, adapt to, and leverage change
-" " decisions cover short & medium range plans, schedules, budgets, policies,
procedures, and business objectives for the firm
-they allocate resources & monitor the performance of organizational subunits,
including departments, divisions, process teams, project teams, and other work
groups
managerial decisions - ANSWER ✓ concern how the organization should achieve
the goals and objectives set by its strategy. They are usually the responsibility of
mid-level management
semi structured decisions - ANSWER ✓ these occur in situations in which few
established processes help to evaluate potential solutions, but not enough to lead a
definite recommended decision
strategic level - ANSWER ✓ managers develop overall business strategies, goals,
and objectives as part of the company's strategic plan
, strategic decision - ANSWER ✓ involve higher-level issues concerned with the
overall direction of the organization --> these decisions define the organization's
overall goals and aspirations for the future
-usually related to long-term business strategy
unstructured decisions - ANSWER ✓ occur in situations in which no procedures
or rules exist to guide decision makers toward the correct choice
critical success factors (CSFs) - ANSWER ✓ -the crucial steps companies
perform to achieve their goals and objectives and implement their strategies
-essential, high-level areas of activity that ab organization, department, or project
must perform exceptionally well to achieve its strategic goals, ensure long-term
success, and maintain competitive advantage
-focus on key, limited, and measurable areas, such as customer satisfaction or
product quality, often driving the development
---ex---
-high customer satisfaction
-reliable product quality
-skilled workforce
-operational efficiency
--> CSFs define what must be done, and KPIs measure how well its being done
key performance indicators (KPIs) - ANSWER ✓ -the quantifiable metrics a
company uses to evaluate progress toward critical success factors (far more
specific than CSFs)
-quantifiable, time-bound metrics used to measure an organization's progress
toward a specific strategic and operational goals
--- ex ---
-revenue growth
-customer acquisition cost
-net promoter score
-conversion rate
--> CSFs define what must be done, and KPIs measure how well its being done
csf vs kpi - ANSWER ✓ -CSFs are essential, high-level areas of focus necessary
to achieve strategic goals
--> while
-KPIs are specific, quantifiable metrics used to measure progress towards those
CSFs
, --> CSFs define what must be done, and KPIs measure how well its being done
project - ANSWER ✓ temporary activity that a company undertakes to create a
unique product, service, or result
metrics - ANSWER ✓ measurements that evaluate results to determine whether a
project is meeting its goals
return on investment (ROI) - ANSWER ✓ indicates the earning power of a
project
best practices - ANSWER ✓ the most successful solutions or problem-solving
methods developed by a specific organization of industry
-ex) regularly backing up important data / files --> by doing this, a company can
avoid losing critical information during a computer crash, theft, or other
unforeseen events
efficiency MIS metrics - ANSWER ✓ measures the performance of MIS itself,
such as throughput, transaction speed, and system availability
effectiveness MIS metrics - ANSWER ✓ measures the impact MIS has on
business processes and activities, including customer satisfaction and customer
conversion rates
efficiency vs effectiveness - ANSWER ✓ -efficiency: extent to which firm is
using resources in an optimal way
-effectiveness: focuses on how well a firm is achieving its goals and objective
--> something that is efficient is not always effective --> ex, something could be
fast to implement, but is not effective because not what needed
--> effectiveness is more important than efficiency because no point doing
something quickly / cheaply if it is the wrong thing to do
examples of efficiency metrics - ANSWER ✓ -throughput
-transaction speed
-system availability
-information accuracy
-response time
examples of effective metrics - ANSWER ✓ -usability