Presentation on theme: "Ch.

1 Outline Managing in The New

Competitive Landscape"— Presentation transcript:
1 Ch. 1 Outline Managing in The New Competitive Landscape
Managing for Competitive AdvantageThe Functions of ManagementManagement Levels and
SkillsYou and Your Career

2 Learning ObjectivesThe major challenges of managing in the new competitive landscapeThe

drivers of competitive advantage for your companyThe functions of management and how they are
evolving in today’s business environmentThe nature of management at different organizational
levelsThe skills you need to be an effective managerAfter finishing this chapter students will
understand the following objectives.

3 Managing in the New Competitive Landscape

Four elements that are defining the current business environmentGlobalizationTechnological
Change--InternetImportance of knowledge and ideasCollaboration across organizational boundaries

4 Knowledge ManagementThe set of practices aimed at discovering an harnessing an organizations

intellectual resources.This involves finding and capitalizing on the expertise, skills, wisdom and
relationships of the people within the organization.

5 Managing for Competitive Advantage

Good managers know that they are in a competitive struggle to survive and winTo survive and win
you must gain an advantage over your competitorsThe key to long-term success is the competitive
advantage held by the company

6 A Competitive Advantage
Our text—being better than your competitors at doing valuable things for your customersOther
texts:Advantage over competitors gained by offering greater value, either through lower prices or by
providing higher quality to justify higher pricesWhat sets an organization apart from its competitors in
the minds of its consumers. The competitive advantage comes from the organizations core
competencies.

7 Managing for Competitive Advantage

Sources of competitive advantageInnovationQualitySpeedCost

8 Example of CA Based on Innovation

(on-line radio station) When they wanted to give advertisers a way to reach young, tech-savvy
Hispanics, Batanga.com started a new magazine - Batanga Latin Music. But the magazine soon
caught on, and Batanga was soon getting requests for subscriptions and to carry the magazine on
newsstands. In 2004, the magazine brought the company $250,000 in revenue, and it should grow
30% in the next few years.[1][1] Monahan New products come from all kinds of sources. For
example, Batanga.com, Inc. is a North Carolina internet, J. “All systems grow.” Entrepreneur, March,
2005, pp

9 The Functions of Management

Management is the process of working with people and resources to accomplish organizational
goalsGood managers are both effective and efficient in this processEfficient means goals are
achieved with minimal resources wastedEffective means that the organizational goals are achieved

10 The Functions of Management

What do managers do?PlanOrganizeLeadControlWhile fresh thinking and new approaches are
required now more than ever, much of what has already been learned about successful
management practices remains relevant, useful, and adaptable, with fresh thinking, to the 21st-
century business environment. To use an analogy: Engineering practices evolve continually, but the
laws of physics are relatively constant.75 In the business world today, the great executives not only
adapt to changing conditions but also apply—fanatically, rigorously, consistently, and with
discipline—the fundamental management principles.

11 The Functions of Management

Planning: Delivering Strategic ValueSystematically making decisions about the goals and activities
that an individual, group, work unit, or organization will pursue in the futureOrganizing: Building a
Dynamic OrganizationAssembling and coordinating human, financial, physical, informational, and
other resources needed to achieve goals

12 The Functions of Management

Leading: Mobilizing PeopleStimulating people to be high performers; includes motivating and
communicating with employees, individually and in groupsControlling: Learning and
ChangingMonitoring performance and making needed changes

13 The Management Pyramid

TopManagersMiddleManagersThe organizing function will be discussed in detail in Chapter 7. In this
chapter, however, we will discuss the three levels of a corporate hierarchy--top, middle, bottom--
commonly known as the management pyramid.In general, top managers are the upper-level
managers who have the most power and who take overall responsibility for the organization. An
example is the chief executive officer (CEO). Top managers establish the structure for the
organization as a whole, and they select the people who fill the upper-level positions. Top managers
also make long-range plans, establish major policies, and represent the company to the outside
world at official functions and fund-raisers.First-lineManagers

14 The Management Pyramid

First-lineManagersMiddleTopPresident, CEO, VPMake long-range plansEstablish policiesRepresent
the companyIn general, top managers are the upper-level managers who have the most power and
who take overall responsibility for the organization. An example is the chief executive officer (CEO).
Top managers establish the structure for the organization as a whole, and they select the people
who fill the upper-level positions. Top managers also make long-range plans, establish major
policies, and represent the company to the outside world at official functions and fund-raisers.

15 The Management Pyramid

First-lineManagersMiddleTopController, MarketingManager, Sales ManagerImplement goalsMake
decisionsDirect first-line managersMiddle managers have similar responsibilities, but usually for just
one division or unit. They develop plans for implementing the broad goals set by top managers, and
they coordinate the work of first-line managers. In traditional organizations, managers at the middle
level are plant managers, division managers, branch managers, and other similar positions. But in
more innovative management structures, middle managers often function as team leaders who are
expected to supervise and lead small groups of employees in a variety of job functions. Similar to
consultants, they must understand every department’s function, not just their own area of expertise.
Furthermore, they are granted decision-making authority previously reserved for only high-ranking
executives.

16 The Management Pyramid

First-lineManagersMiddleTopOffice Manager,Supervisor, Foreman,Department HeadImplement
plansOversee workersAssist middle managersAt the bottom of the management pyramid are first-
line managers (or supervisory managers). They oversee the work of operating employees, and they
put into action the plans developed at higher levels. Positions at this level include supervisor,
department head, and office manager.

17 Management Levels and Skills

Three levels of managementTop-Level: these managers are responsible for the overall management
and effectiveness of the organizationMiddle-Level: these managers are located in the middle layers
of the organizational hierarchy and report to top-level executivesFrontline: lower-level managers who
supervise the operational activities of the organization

18 Management RolesInterpersonal Roles – involve people and duties that are ceremonial and
symbolic in natureInformational Roles – receiving, collecting, and dissemination
informationDecisional Roles – revolve around making choicesNote: the emphasis a specific
manager gives to the various roles changes with their level of management.

19 Managerial SkillsTechnical Skill: Ability to perform a specialized task involving a particular

method or processConceptual and decisional skill: Skills pertaining to the ability to identify and
resolve problems for the benefit of the organization and its membersInterpersonal and
Communication Skills: People skills; the ability to lead, motivate, and co