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BUS 1001 - Achieving Success Through Self-Directed Learning
By Michael D. Schmidt MBA Candidate at Rushmore University Submitted: June 1, 2002 Advisor: Professor Hella Bauer-Eden MSc Course: BUS 1001 Student: Michael D. Schmidt E-mail: mailto:firstname.lastname@example.org URL: http://www.mdschmidt.net Credits: 3 Word Count: 5310 A copy of this paper is being sent to email@example.com
By submitting this paper, I affirm that this work is my own except for where the words or ideas of others are specifically acknowledged. I also affirm that this work did not exist before the beginning of the course I am submitting this for.
Target Audience This paper was written for the review of my Rushmore MBA course advisor and view by other MBA students as information to help them with their MBA program. Purpose of this Paper This paper was done to help develop my skills of reviewing and preparing material to write successful papers; to review the basic areas of an MBA for determining my course of study. Executive Summary Reading Silbiger's book gave me a good overall synopsis of the areas studied in an MBA program. This study confirmed my interest in organizational behavior, quantitative analysis, operations, finance, and strategy. While writing my profile, I reviewed the available courses and listed those that struck my interest at that time. I still feel strongly about pursuing course 2001-Crosby on Leadership, 2002Hargrave on Strategic Planning, and 2053-Siegel on Finance. I plan to use what I have learned from this paper to continue developing my curriculum with my advisor.
Submitted June 1, 2002
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............................S.... and migration of production to low-cost countries.............................. 2002 Page 2 of 16 ............... and finance that are presented in Silbiger's book.................................... Small operating margins... is knowledge of marketing..... lean manufacturing................. Schmidt BUS 1001 .. meet the cost targets.......... 9 Operations ....... 13 MBA Mini-Courses ...... What is missing in my toolkit........................................................... strategy...................................... I have been focused on ensuring that technical projects have the right resources............. 15 Introduction The U........ Michael D......... Advances in technology.. 5 Organizational Behavior.................... As an operations manager........................... The Ten Day MBA......................... has slowly become a thing of the past in the automotive arena.............................................. mean little budget is available for marketing and training................................... that most automotive suppliers are forced to live under... The demand for lower cost and higher quality by automotive customers has made it very difficult to maintain a profit......................... 1 Introduction ..... to be more effective in contributing to the overall operations....................... paint systems.................. These services have been provided........................................ 6 Quantitative Analysis .... Submitted June 1...Achieving Success Through Self-Directed Learning....................................................................................... price is the foremost deciding factor for awarding business to suppliers..........BUS1001.. and that the customer is satisfied............... Building and growing a company..... 10 Economics ............ 12 Strategy..... The company I work for provides technical services... Achieving Success Through Self-Directed Learning.................................................. The drive for reducing cost has been placed on all of the suppliers to the automotive component divisions and car groups.............................. through establishing solid working relationships and partnerships with its customers.......................................................................................................................... facilities design and construction................................. 7 Finance ..... 4 Accounting .......... 3 Ethics ................................................ primarily to the automotive industry................ are completed on time......... 2 Marketing ........... Today..................................................... automated equipment...................................... which includes design and engineering of automotive component parts......................... for over fifty years... and supplier quality................................... automotive industry continues to experience the effects of global competition............. I hope to gain insight from the nine disciplines of an MBA presented in this book to develop my MBA curriculum............................... such as Mexico......... have not provided the competitive advantage to prevent loss of market share...............................................................
and how these services can be applied in solving the customer's problems. that his concentration will be on product marketing. I realize this is a wrong assumption after having read Silbiger's explanation of the seven-part marketing strategy process2. 5. place. according to Silbiger. rather than services marketing. 3. promotion.BUS1001. This type of sales requires the salesman to give Submitted June 1. Consumer Analysis Market Analysis Review of the Competition and Self Review of the Distribution Channels Development of a "Preliminary" Marketing Mix Evaluation of the Economics Revision and Extension of Steps 1-6 until a consistent plan emerges When marketing products. much like the Fuller Brush and Kirby vacuum cleaner door-to-door sales of the past. Schmidt Marketing Silbiger states in his book. and price. more meaningful one that is based on the four target variables used in segmenting consumer markets: demographic. 2002 Page 3 of 16 . but the same frameworks and vocabulary are applicable to both. Segments. Selling services is still a problem solving and consultant type of sales. geographic. 2. Marketing mix refers to the marketing efforts that are chosen. 6.3 This will narrow the marketing efforts from a global approach to a smaller. and how to reach the consumer of your product. the first step in developing a marketing plan is to answer important questions about the consumer.1 This statement caught my attention because of my lack of experience and knowledge of marketing. for example. Michael D. rather than advertising. who. will give valuable information for deciding where. Achieving Success Through Self-Directed Learning. which is: 1. which are product. are homogeneous groups of similar consumers with similar needs and desires. psychographic and behavioral. The salesman of services understands the technical aspects of the services his company can provide. These efforts are referred to as the Four P's of marketing. Observing marketing from a distance would give one the impression that it does not require any real quantitative analysis. A technical services company directs most of its budget and resources towards the sales effort. Getting in front of the decision-maker of a potential customer is the primary goal in selling services. It is difficult to appreciate something that one does not understand. and because I have worked in the services industry for the past 17 years.4 The promotional decisions include all of the advertising and sales efforts of the plan. The Ten Day MBA. 4. 7. Who is buying and using the product? What is the need of the consumer? What is the buying process? Understanding the buying process. or need for accuracy. This can lead the marketing manager to choose a segment plan approach.
political and environmental ethical areas. These principals apply not only to a company's customers. but also to their employees and suppliers. and revenues started declining from the downturn in the economy. financial reporting to the investors and bank was distorted.BUS1001. Schmidt presentations that ultimately convince the customer of the capability of his company. Ethics Integrity. negotiating in good faith. Stakeholder Analysis is a framework with which to organize ones thoughts. Treating them with respect. the company could not meet their covenants with the bank. This method involves identifying the affected parties. keeping promises. trust and commitment are words that I associate with ethics. Short and long-term Submitted June 1. although there are no set formulas for solving ethical dilemmas. which put purchasing in a position of power − a power that sometimes was abused. where additional consideration and analysis is required before making a judgment. The salesman usually becomes the primary point of contact with a new customer. and the responsibilities and rights of all stakeholders. In business. as in personal matters. for whom I worked. these virtues are what contribute to the success and long-term growth of a company. Projected business conditions and revenue forecasts were overstated. that purchasing people in the automotive industry would accept gratuities of various types from their suppliers. went beyond the accepted and into the unethical. and reach a decision. Many examples could be cited where this practice of accepting gifts. which resulted in a total lack of confidence in the company on the bank's part. The practices by the CFO of one of the companies. Some decisions have elements that might involve each of the social. until the start-up problems are resolved and relationships are developed between the key personnel of each company.5 The organized approach of this method allows the MBA to take a global look at an issue. Achieving Success Through Self-Directed Learning. Michael D. Top management sets the example of the operating principals for a company. 2002 Page 4 of 16 . Ethics directly relates to profitability. and we have seen evidence in the news recently of poor ethical practices by top management and how it has affected companies. Over time. It was common. are an example of what can happen when ethical principals are not followed. As the company accumulated debt. by a few people in purchasing. which is helpful but the decision may not be clear and concise just from this analysis. in years past. and truthful communication are all ingredients for success. weigh various elements. Some automotive contracts meant millions in revenue to suppliers. the harms and benefits of certain actions on those affected parties. honesty. Silbiger explains that. such as Enron.
however. through daily involvement with the workout team. Achieving Success Through Self-Directed Learning. rent. general and administrative costs (SG&A) are the non-direct costs of the business. The difference between gross margin and SG&A costs is the operating income. The cash flow statement was the accounting tool that had not been consistently used by my company. Michael D. utilities. The revenue that the company accrues as labor hours are worked. is accrued. advertising and other non-direct allocated costs. The sales. Many companies and individuals will tell you that the bottom line in business is profitability. The sales revenue. after services are billed." or “AR. which is "Unbilled Accounts Receivables. as reported on an income statement. 2002 Page 5 of 16 . which is an acceptable practice in the technical services industry. and a contingency plan for each alternative developed before a decision can be made. EBITDA is the bottom line on the income statement for many service companies. Accounts Receivable (AR) is a key factor in cash flow that relates to how quickly payment is received for services rendered." may not be billed to the customer until the end of a project or at incremental milestone dates. my company does not. or every two weeks. The cash flow statement should always be used along with the balance sheet and income statement − they work together to tell the entire story about the health of a company. as the engineering labor hours are worked. It was valuable for me to gain the understanding." the payment terms may be net 30 or 60 days after date of invoice.BUS1001. the bank ordered a third party workout team to come in and run the company. Schmidt consequences of each alternative need to be identified. Accounting When the business of my company began a downturn. Their focus was on the cash flow of the company. taxes. office supplies. Likewise. The difference between sales revenue and cost of goods sold (COGS) is the gross margin. which includes indirect payroll and taxes for staff personnel. which requires cash that the company may not have on a weekly basis because of the timing of receivables. and all of the accounting details that were involved. and the CFO and upper management began to distort the financial reporting to the investors and bank. benefits and payroll taxes. that a company can be profitable yet be in trouble at the same time. Many companies include depreciation in the SG&A costs. Employees are paid each week. The primary service that my company provides is engineering and design documents for customer products and manufacturing equipment. depreciation and amortization). The bank will loan the Submitted June 1. which turns "Unbilled Accounts Receivable" into “Accounts Receivable. or EBITDA (earnings before interest. and the cost of goods sold are the associated direct labor pay. and it is what operations performance is based upon.
not pro-active. which is dependent upon how a company is organized. while others they consider to be bad. However. Organization structure is one element with which business people are most familiar − an organizational chart shows the company’s reporting and accountability structure. and have the ability to meet the challenges of business and people. Leaders have three characteristics in their profile. structure. fast-paced. and divisional. Most people fall somewhere between these two types. and exhibits impatience and a selfcentered attitude. dealt with issues. shape the future. managers have to experience these things before they can really appreciate the complexity of managing people. customer. 2002 Page 6 of 16 . climate. and dealing with difficult employee situations. Most people can describe the managers for whom they have worked − some they consider to be good. including cultural. Michael D. The amount borrowed is typically based on a percentage of the receivables. Styles can include functional. Leaders have vision. and reach people on an emotional level. product. commitment. and people are what make an organization. culture. and management skills. This demanding. less aggressive. Organizational Behavior Organizational Behavior (OB) classes attempt to teach MBA's how to deal with the human challenges in the workplace. dictatorial approach was effective in the 1960’s and 1970’s. Friedman and Roseman identified the Type A behavior type. There are six basic elements that define an organization. Organizations are made up of various types of people.6 Hundreds of books are available for managers that give insight and instruction for motivating people. strategy. systems. and only those receivables that are less than 180 days old. They can tell you how the good manager treated the employees. Everyone expects changes in the organization when a new manager takes charge. geographic. when Submitted June 1. Type B personalities are the opposite of the Type A’s. and policies and procedures. In 1959. Leaders set goals. and more peopleoriented. Managers are reactive. aggressive.BUS1001. which is the person who is driven by achievement. and their focus is on solving problems. but does not work in today’s business world. The income statement shows the amount of sales revenue generated. These charts can be presented in several different styles. and their motivational techniques. when considering that business is conducted globally today. Good managers are good leaders. but the cash flow statement shows how that revenue was turned into cash. vision. These qualities vary in proportion depending on individual and job situation. Schmidt company money to meet payroll and other obligations based on the company's Unbilled Accounts Receivable and AR. Achieving Success Through Self-Directed Learning.7 Job situation can refer to many scenarios.
At each alternative an activity fork.8 which are the basic elements involved in creating a tree diagram.000 . which is symbolized as a circle.. Quantitative Analysis Quantitative Analysis (QA) provides the most important tools to the MBA. or an event fork. not just the "what. subtract the estimated cost from the EMV value and choose the highest dollar alternative. risks. which is $100. the probability of each outcome is estimated and represented as a decimal percentage.BUS1001. I first analyzed the organization.000 in the example above. Just as it is important for the MBA to be able to read and understand the three financial statements.60) if the test were successful in our example above. Decision theory teaches how to break complex problems into manageable parts. A decision tree diagram can organize the problem's alternatives. This value is multiplied by the probabilities at each fork to determine the expected monetary value (EMV). is drawn. Schmidt a company is in a growth period. and uncertainty. or when a company is in trouble. When I returned to Dayton. People naturally resist change. Pass Manufacture product $100. Ohio. The event fork is used when an alternative is uncertain as to the outcome. The results of the changes I made were realized at the end of the year in increased business and EBITDA. 2002 Page 7 of 16 . and their capabilities. I had to learn who the people were. Achieving Success Through Self-Directed Learning. It did not take long to realize that changes were necessary in department and individual responsibility reporting structures.e. which would result in $60.000 x ." helps effectively implement change. The financial outcome of each decision is estimated.60 Test . Michael D. After repeating this process for each event. the methods used in analyzing data are important in the decisionmaking process. but communicating the "why" things are done. the test of a product either passes or fails.40 Fail No Test At each event alternative. what they were doing. Submitted June 1. symbolized by a square.000 ($100. to manage the company's largest operation. i. Being a good listener is a valuable trait to have when gaining information and understanding about an operation.
Software is available that makes this process easier and less tedious. Michael D. which is equal to the probability of 1. decision analysis. and estimate financial outcomes. probability theory..5 software for costeffectiveness analysis. Net present value (NPV) takes the cash flow analysis picture over time and paints it in today's dollar value. and the cash paid out through COGS. What is our "Cash In?" and "Cash Out?" were questions asked and tracked daily by the workout group that came into our company. publishes inexpensive decision modeling addins for Excel. Cash flow involves tracking only the cash coming into a company through receivables or sales. Statistical methods are also used in other areas of business. A dollar today is worth more than a dollar received in the future. and is represented by the bell curve.0 (100%) for the total sample. Submitted June 1. approximately 95% fall within two SDs. and taxes. net present value. 2002 Page 8 of 16 .9 Probability and Statistics is used extensively in most manufacturing operations for determining product quality at various stages of the manufacturing process. A company can determine whether their processes are in control.treeplan.0. which had to be positive in order to sustain operations. organize them. besides manufacturing. publishes DATA 3. and regression analysis and forecasting are other useful problems-solving tools used by the MBA. that the majority of samples fall at or near the mean value.10 It is known. The total area under the bell curve is equal to 1. Achieving Success Through Self-Directed Learning. The most commonly used distribution is Normal Distribution. according to the Central Limit Theorem. with the number of samples tailing off as one moves away from the mean value. Based on a sampling of data or outcomes. the curve tends to fill in and become bell shaped.treeage. and are a valuable tool in the decision-making process. SPC (Statistical Process Control) uses control charts for recording actual data over a span of time compared to the engineering specification limits. Cash flow analysis.BUS1001. Monies needed over the borrowing limit came from cash flow. www. or out of control by using statistical methods. Schmidt This is an excellent analysis tool because it requires the decision-maker to think of all possible alternatives. Using NPV enables all projects to be compared and considered on an equal financial basis. Inc. TreeAge Software. and Markov modeling. Approximately 68% of the samples fall within one standard deviation (SD) of the mean. SG&A. NPV analysis takes future cash flows and discounts them to their value today. The bank established a new borrowing base each week that set a limit on the amount that could be borrowed. www. Decision Support Services (DSS). Cash flow analysis not only involves accounting information that looks at shortterm measurements but also considers timing over the entire life a project or entire operation.com. regardless of timing.com.
which is a volatile situation. Finance The investments area and financial management are the two career paths for the MBA in finance. Bonds have a maturity date. “company” focused. The investments area is outward. From these numbers. The risk associated with stocks. Insurance companies have actuarial tables that reflect their statistical analysis of the average life expectancy of men and women at any given age. Schmidt and. There are other types of bonds that include zero coupon bonds. A zero coupon bond pays no interest. affects its investors’ share of the firm’s profits. issue bonds to raise cash. Michael D. consuls. Companies. Higher coupon rates are given to bonds with longer maturity dates because investors have their money tied up for a longer period of time. This provides the probability for any outcome in the decision-making process. Analysts track and measure the market price movement of individual and groups of stocks to estimate their risk. “market” focused. the insurance companies then calculate the appropriate premiums for a particular individual. A consul bond is one that never pays back the principal amount. callable bonds and junk bonds. is paid. to purchase a given amount of insurance. and the government. Normal distribution tables are available to determine the probability for any specific point on the curve. One basic investment fact is the higher the return. and they have a fixed rate of interest (coupon). it is said to be perfectly correlated with a beta of 1. for which the finance department is to a large extent responsible. which is called diversification. The effects of individual stocks and other investment risks can be lowered by having a portfolio consisting of high. face or par value. for example. but continues to pay interest forever. medium and low risk investments. convertible bonds. exists because the market price for stocks fluctuates daily.11 I have always been a conservative investor.0. the higher the risk. An example of how data is used statistically in business can be found in the insurance industry. approximately 98% fall within three SDs.0. A stock that moves in opposition to the market is said to be negatively correlated with a beta of –1. My advisor explains what investment options he recommends and the estimated risk involved for each option. at which time the original principal amount. or beta. Convertible bonds are those that can be converted to Submitted June 1. 2002 Page 9 of 16 . If a stock or group of stocks moves in line with the entire market. but pays a lump sum at maturity. Achieving Success Through Self-Directed Learning. of a certain age. where financial management is inward.BUS1001. The two areas are interconnected because the performance of a business. and I have relied on the recommendations of my financial advisor in making changes to my portfolio.
How to produce a product for the least cost and with the highest quality are the basic ingredients for profit. Michael D. The MBA uses his/her accounting and finance tools.13 Operations Operations vary. but every operation has some basic business similarities.12 The role of the MBA in corporate financial management is to provide their company with recommendations for making investment and financial decisions. not only manufacturing operations. overseeing the flow of cash.BUS1001. in providing information necessary in making investment decisions for projects and capital expenditures. This is true of services. too. monitoring credit. assessing risks of various transactions. Junk bonds pay high rates of return because of the high risk. a junk bond is one that has a high risk of default because they may be subordinated to the claims of other bonds issued by a company. and include preparing financial reports for running the day-to-day operations. Much time and resources are spent on determining the most efficient and cost effective approach for every step of the total process. at a level of risk that management can live with. Net present value calculations can include discount rates and profitability index to compare several projects based on today’s dollar value and projected risk. A financial manager’s responsibilities are multi-faceted. 2002 . The term used for this activity is capital budgeting. Lastly. The guiding principle of financial management is to maximize the firm’s value by financing cash needs at the least cost possible. Schmidt common stock at a predetermined conversion ratio. There are five basic issues involved in producing a product or service14: • • • • • Capacity Scheduling Inventory Standards Control Page 10 of 16 Submitted June 1. primarily payback periods and net present value. To make everything work together requires that everyone understands their job and is given the tools to do that job. A successful operation is dependent on many people that have different roles and responsibilities in contributing to the process flow from start to finish. raising capital and communicating with stock holders and investors. Paybacks are easy to calculate but do not consider the time value of money like net present value. Achieving Success Through Self-Directed Learning. as vastly as the number of different products and services that exist.
Certification does not insure quality. MRP coordinates the entire process. is most concerned with the availability of trained. to the shipment of finished product. Achieving Success Through Self-Directed Learning. but it does establish discipline in complying with company processes. Capacity is more commonly associated with a manufacturing environment. materials. Paying more for materials than planned. where machines have maximum output limits. These are called the Six M’s of Capacity.BUS1001. sending build orders to manufacturing. which can hold up a project or process. Other standards used in industry today are ISO 9000 and QS9000. Inventory is natural topic of argument between financial. Each task or activity is listed in order of their sequence.15 Standards are established to compare budgeted to actual performance. machinery. Tracking and analyzing standards allows production managers to control the process. sales and production departments. And. The critical activities. which are the number of parts they can process per minute. manpower. Michael D. Material Requirements Planning (MRP) is a computer software system that is used for production planning and inventory control. Factors to consider in determining capacity are methods. they want to maintain or increase the number of openings for new positions to grow their business (capacity). Schmidt Capacity addresses how much can be produced. Submitted June 1. with evidence these processes are being followed. Companies earn ISO or QS9000 certification through documentation of all internal processes that are part of the quality system. at the same time. Inc. and sales wants to have product available at all times for customers. and includes the estimated time for completion. money. Finance wants to carry the least amount of inventory possible.. production wants to run as efficiently as possible which may result in some excess inventory. from forecasting customer demands. The difference is called variance. sending material orders to vendors. by using more material or labor than estimated results in variance. Scheduling all of the tasks of the production process requires tools such as Gantt Charts or Critical Path Method (CPM). Hiring an additional recruiter would be necessary as the company’s number of job openings increases and the increased level is sustained. like Manpower. A services company. can be identified from this charting of activities. Recruiters for staffing companies are able to effectively handle a certain number of job openings − this is their capacity. such as a staffing company. and qualified people to fill temporary openings with their clients. 2002 Page 11 of 16 . and messages.
2002 Page 12 of 16 . and world economics. and when the GNP is adjusted for inflation it is called real GNP. countries. Department of Commerce. The GNP is adjusted each year to compensate for the change in prices from year to year. If a company has the opportunity to sell one additional unit at a profit. Bureau of Economic Analysis: Submitted June 1. the company should produce it. Medical services are a good example of consumers not changing their purchasing behavior with increases in the price of services. Schmidt Economics Economics can be studied on a micro or macro level. provided by the U.17 One of the main indicators used in macroeconomics to measure the health of the economy is the gross national product (GNP). When consumers are not sensitive to prices their demand is called inelastic.18 Below is a chart that shows real GNP in billions of chained 1996 dollars. where decisions are made regarding allocation of limited resources. to special offerings in the fast food industry. Buyer’s responsiveness or sensitivity to changes in price is called elasticity.S. time. purchasing more. The GNP is the market value of the total goods and services produced in a year.16 Macroeconomics affects everyone. Using real GNP values gives analysts the ability to measure the real growth of an economy. Michael D. with forecast numbers through September. where macroeconomics deals with cities. Microeconomic concepts include opportunity costs. The recession we currently are in poses so many questions about how we got here and how soon the economy will turn around.BUS1001. Economists cannot even agree on what drives the economy. The basic marginal decision rule is: increase production if and only if the revenue is greater than the marginal cost. consumers respond strongly. and industries. Opportunity costs occur when production increases where output. If consumers are very sensitive to price changes. families. their demand is called elastic. Marginal revenue from the sale of this one additional unit should be greater than the marginal cost to produce that unit.S. For example. and money are limited. An increase in price level is called inflation. companies. Microeconomics focuses on individuals. or global basis. but it is difficult to understand what drives change in economic conditions on a U. Achieving Success Through Self-Directed Learning.
finance. including Johnson & Johnson. and with implementing change as the ultimate goal. and the business environment in both the short. Waterman. Schmidt Strategy One of the turning points in the company I work for occurred when several strategic decisions cost the company a major piece of business with its largest customer. Proctor & Gamble. Peters and Waterman were part of the McKinsey and Company at that time. which continued the downward economic spiral of the company. IBM. and organization. Delta Airlines and McDonalds. of In Search of Excellence fame. The Seven S model was the result of their study of forty-three successful American companies. This will be very useful and informative for me as I continue my MBA studies.mckinsey. which gives me access to their articles. Michael D. Strategy should always look at the company as a whole. operations. and Waterman is still a director there. In the late 1970’s. and Julien R. Phillips created the Seven S model. management. This is an example of what Silbiger explains about strategy in his book: Strategic thinking involves a comprehensive analysis of a business in relation to its industry.and the long-term. and their monthly newsletter. A no-compromising approach was taken when presented alternative plans by the decision-making committee of the customer.19 My research on strategy led me to the McKinsey and Company website.BUS1001.com/. The loss of this business came just before the downturn in the economy. They publish The McKinsey Quarterly. The risk involved was not analyzed thoroughly because of our past strong position and key support with our customer. Peters. Achieving Success Through Self-Directed Learning. its competitors. I immediately subscribed. Submitted June 1. 2002 Page 13 of 16 . which is an online journal featuring information on business strategy. Thomas J. Robert H. http://www.
training. Skills are the specific abilities and expertise of the staff of a company. Achieving Success Through Self-Directed Learning. and become set in their ways. and behaviors that management instills throughout the entire organization over time. People resist change. Staff is not just warm bodies. the company I work for has a business unit that is known for its specialized expertise in automotive interior design and engineering. questions about how to obtain the manpower with the skills and experience need to be answered. Structure relates to how a company is organized. and the other six elements at the end of the spokes of the wheel. This also involves motivation. which is something that is often overlooked by Submitted June 1. procedures. 2002 Page 14 of 16 . which speaks of them all working together for achieving effective change. Each element interconnects with the other elements. and appraisals. Style or culture is a company’s beliefs. Some companies that are geographically or product organized may struggle with change towards a more integrated organization. and tools with which the company operates and gathers information. because of that. For example. but relates to the things that are important to them. to change a company’s culture is a difficult thing to accomplish. operations and manpower information is needed when challenges requiring decisions for change come about. Companies that are part of mergers and acquisitions experience style and cultural changes that have long lasting effects. Systems are the processes. compensation. such as working environment.BUS1001. Addressing each of these elements in strategic planning organizes the entire process for tackling complicated company organizational problems and reaching its goals. Schmidt The Seven S’s are: • • • • • • • Structure Systems Skills Style Staff Strategy Superordinate Goals or Shared Values Picture a wheel with superordinate goals as the hub. For them to develop a strategy for obtaining automotive brake system business. which is characterized by the organizational chart. Michael D. competition. Customer. thoughts.
I am not experienced in. I have participated in these types of meetings. Strategy is one of the topics I would like to learn more about in my MBA studies. and have been disappointed in the lack of follow-up and implementation. Other resources used in research include books. interviews. as I become more knowledgeable about strategy. My goal is not to become and expert in this art. negotiating. but to understand the basic strategy used in negotiating. Achieving Success Through Self-Directed Learning. The ability for a company to succeed depends greatly on a motivated and appreciated staff. or very good at negotiating. and order. determine your strategy and limits ahead of time. “The word superordinate literally means of a higher Values speak of teamwork. I must admit that I enjoy research because I like information and data. 2002 Page 15 of 16 . I treated the nationals with respect. public speaking. I would like to change this. and have spent time on research while writing this paper. Silbiger points out that in negotiating you must know your opponent. periodicals. MBA Mini-Courses Sibinger presents brief overviews of research. Schmidt management when considering change. know yourself. Research has changed dramatically with the advent of the Internet. of which I will only touch on a few. Having a good understanding of the culture and customs of the host country is essential. and gained their confidence. Michael D. which resulted in a successful operation. Various search engines are available via the Internet but not all search engines give the same results. Strategy is the plan of action leading to change and achieving company goals. I realized that I was a guest in Mexico. international business.BUS1001.”20 recognition. Superordinate goals or Shared Values are the guiding principals of an organization. fairness. which gives us access to a world of information at our fingertips. when given the opportunity. trust. and adapted to their way of doing business. respect. and magazines. trade shows. and review each negotiation afterwards for improving future negotiations. do your homework. and business law. Many companies invest time and money each year for strategic planning meetings. integrity. Submitted June 1. computer service databases (for a fee). so you must visit multiple sites to obtain a good search. Peters writes. Working three years in Mexico taught me many of the things that Silbiger outlines for conducting international business.
157-58. Theses. 1999. Ibid..Y. 4 Ibid.. 28. 233. Achieving Success Through Self-Directed Learning. 275-76. A Manual for Writers of Term Papers. 2002 Page 16 of 16 . 12 Ibid.. 6 Ibid.: William Morrow. Turabian. 1 2 Submitted June 1. 16 Ibid.. 3 Ibid. 3-4. 5 Ibid. 20 Ibid.... The Ten Day MBA. 145.BUS1001. 116. Stephen. N.. Kate L. 270-71.. Schmidt BIBLIOGRAPHY Silbiger. Steven Silbiger. 7 Ibid.. ed.. 18 Ibid. 253.. 17 Ibid. 1996. 238... 302. and Dissertations. 107. Sixth Edition. 13 Ibid. 59. 165-66. 1999). The Ten Day MBA. 297.. 9 Ibid. 15 Ibid. rev. 193-98.. New York: William Morrow. 11 Ibid. (New York. 11. 14 Ibid. 186. 274.. 19 Ibid. 10 Ibid. Chicago: The University of Chicago Press. 8 Ibid. Michael D.. Revised Edition.
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