MGMT 101 Midterm ACTUAL UPDATED QUESTIONS AND CORRECT ANSWERS
3 inputs in strategy (congruence model) Environment, resources, history
3 outputs in strategy (congruence model) Organization, group, individual
4 parts of the transformation process (congruence People, work, structure (formal), culture (informal)
model)
Congruence Degree to which the needs, demands, goals, objectives, and/or structures of one
component are consistent with those of another
Congruence hypothesis (Nadler & Tushman) -- process of The greater the congruence (fit) between components, the more effective the
management organization will be.
Input -> Strategy Formulation -> Strategy Implementation -> Output
Fit or misfit in a firm's strategy can exist between... Between the organization's strategy and its environment ("external fit")
Between the organization's strategy and the elements of its transformation
process ("internal fit")
e.g. Southwest Airlines' competitive advantage comes from the way its activities fit
and reinforce one another
Management Management is the practice of formulating strategies and guiding the
implementation of those strategies in an organization
, Weber's 6 definitions of an ideal bureaucracy • Hierarchy of authority
• Specialized division of labor
• Written rules of conduct
• Promotion based on achievement
• Impersonality
• Efficiency
*describes a closed system
System Set of interrelated elements (a change in one element affects the others)
3 characteristics of an open system - Interacts with its environment
- Draws inputs from external sources
- Transforms inputs into some form of outputs
Strategy (management) Decisions about how the org will allocate its resources against the demands,
constraints, and opportunities of its environment within the context of its history
*Strategy is the linchpin between environment and the organization (strategy must
fit environment - external and organization must fit strategy - internal)
SWOT SW: resources, history (internal)
OT: environment (external)
7 factors of the general environment - Physical, demographic, sociocultural, political/legal, technological, economic,
global
- Firms have very little control over this (hard to predict)
- Factors can shape and alter industry forces
Scenario planning Development of flexible strategies to deal with different changes in the env't (e.g.
Shell Energy Scenarios to 2050)
Rank the variation in performance across industries Highest to lowest equity
(pharma, computers, airlines) - Pharma, computers, airlines (airlines are much more volatile)
How much variance in firm performance is explained by 15-20%
the industry?
Industry a group of firms that produce similar products or provide similar services, sell to
similar customers, and use similar methods of production
3 inputs in strategy (congruence model) Environment, resources, history
3 outputs in strategy (congruence model) Organization, group, individual
4 parts of the transformation process (congruence People, work, structure (formal), culture (informal)
model)
Congruence Degree to which the needs, demands, goals, objectives, and/or structures of one
component are consistent with those of another
Congruence hypothesis (Nadler & Tushman) -- process of The greater the congruence (fit) between components, the more effective the
management organization will be.
Input -> Strategy Formulation -> Strategy Implementation -> Output
Fit or misfit in a firm's strategy can exist between... Between the organization's strategy and its environment ("external fit")
Between the organization's strategy and the elements of its transformation
process ("internal fit")
e.g. Southwest Airlines' competitive advantage comes from the way its activities fit
and reinforce one another
Management Management is the practice of formulating strategies and guiding the
implementation of those strategies in an organization
, Weber's 6 definitions of an ideal bureaucracy • Hierarchy of authority
• Specialized division of labor
• Written rules of conduct
• Promotion based on achievement
• Impersonality
• Efficiency
*describes a closed system
System Set of interrelated elements (a change in one element affects the others)
3 characteristics of an open system - Interacts with its environment
- Draws inputs from external sources
- Transforms inputs into some form of outputs
Strategy (management) Decisions about how the org will allocate its resources against the demands,
constraints, and opportunities of its environment within the context of its history
*Strategy is the linchpin between environment and the organization (strategy must
fit environment - external and organization must fit strategy - internal)
SWOT SW: resources, history (internal)
OT: environment (external)
7 factors of the general environment - Physical, demographic, sociocultural, political/legal, technological, economic,
global
- Firms have very little control over this (hard to predict)
- Factors can shape and alter industry forces
Scenario planning Development of flexible strategies to deal with different changes in the env't (e.g.
Shell Energy Scenarios to 2050)
Rank the variation in performance across industries Highest to lowest equity
(pharma, computers, airlines) - Pharma, computers, airlines (airlines are much more volatile)
How much variance in firm performance is explained by 15-20%
the industry?
Industry a group of firms that produce similar products or provide similar services, sell to
similar customers, and use similar methods of production
