The students are directed to plan a community outreach activity.

As a leader, discuss the event using an action plan template as follows:

What – list of activities for activity

When – schedule or deadline for completion of activity

Where – location for activity and/or supplier for activity

Who – person/s in charge or group assigned for activity

How – required resources for the activity

How much – estimated budget for activity

Figure 1.1: Four

Reasons To Study Management
Principles of Management Dyck / Neubert Cengage Learning
Important Managerial Skills
• Technical Skills
– Expertise in a particular area—marketing, accounting, finance or human
resources
• Human Skills
– Abilities in getting along with people, leadership, helping others to be
motivated, communication and conflict resolution
• Conceptual Skills
– The ability to think about complex and broad organization issues
Types of Managers
• First-Line Supervisors
 – Manage the work of employees who are involved in the actual production
or creation of an organization’s products or services.
• Middle Managers
– Manage first-line managers and others.
• Top Managers
– Have organization-wide managerial responsibilities—Chief Executive
Officers (CEOs), Vice-Presidents, and Board Chairs
What Is Management?
• Management
– The process of planning, organizing, leading and controlling human and
other organizational resources towards the effective achievement of
organizational goals.
• Organization
– A goal-directed (planning), deliberately-structured (organizing) group of
people working together (leading) to achieve results (controlling).
Functions of Management (Fayol)
• Four Management Functions:
– Planning
– Organizing
– Leading
– Controlling
Managerial Roles (Mintzberg)
• Interpersonal Roles
– Leader, Liaison and Figurehead
• Decisional Roles
– Resource Allocator, Negotiator, Entrepreneur, Crisis Handler
• Informational Roles
– Monitor, Disseminator, and Spokesperson
Fayol’s Functions
and Mintzberg’s Roles

Fayol Mintzberg

Planning Entrepreneur, negotiator, spokesperson

Organizing Resource allocator

Leading Leader, liaison, disseminator

Controlling Monitor, crisis handler, figurehead

Defining “Effective” Management

• Effectiveness
– Choosing the “right” organizational goals to pursue
• What about moral obligations?
• Is profit-maximization a legitimate goal?
• Efficiency
– The level of output that is achieved with a given level of inputs
• Maximizing output while minimizing inputs
What Do You Think?
What Is the Meaning of Effectiveness in the Classroom
• What are students?
– Members of the class
– Paying customers
– Products
• Is face-to-face student-as-apprentice education the most effective way to teach,
or will it be replaced by a “virtual” world and on-line education?
Selected planning tools for managers and commanding officers
1. Simple Frequency Count – identifies the issues that receive the most number of
votes as the main or priority issues
2. Flowchart – tool that puts key processes in symbolic patterns
3. GANTT charts – useful for scheduling and planning projects
4. Activity Network Diagram – planning tool used to diagram activities in sequence
from start to finish
5. Problem Solving Model - also called the improvement storyboard model

Terms that are now part of the language of managers and senior executives in their
organizing function are:
1. Downsizing – planned removal of positions or jobs
2. Rightsizing – efforts of achieving an appropriate size for effective enterprise
performance
3. Customer Relations Management (CRM) – a function or enterprise unit tasked to
focus on interactive relationships with customers
4. Reengineering – includes efforts to revolutionize organizational systems and
processes to satisfy customer needs
5. Total Quality Management – an integrative approach to management that
supports the realization of customer satisfaction
6. Just In Time – calls for sub-assemblies and apparatus to be produced in very
small lots and delivered to the next stage in the process exactly at the time
needed
Contructed Response

1. Get the students to list the reasons why each one chose the ABM track.
2. Allow the students to analyze their situation (evaluate their reasons); choose their
best strategy and track their choice.
Decision Tree
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
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__.
PDCA MODEL

PLAN DO

CHEC
ACT
K
You are most likely to succeed in life if you use your talents to their fullest extent.
Similarly, you'll suffer fewer problems if you know what your weaknesses are, and if you
manage these weaknesses so that they don't matter in the work you do.

What is SWOT?

Strengths
 What advantages do you have that others don't have (for example, skills,
certifications, education, or connections)?
________________________________________________________________
________________________________________________________________
_____________________.
 What do you do better than anyone else?
________________________________________________________________
________________________________________________________________
_____________________.
 What personal resources can you access?
________________________________________________________________
________________________________________________________________
_____________________.
 What do other people (and your boss, in particular) see as your strengths?
________________________________________________________________
________________________________________________________________
_____________________.
 Which of your achievements are you most proud of?
________________________________________________________________
________________________________________________________________
_____________________.
 What values do you believe in that others fail to exhibit?
________________________________________________________________
________________________________________________________________
_____________________.
 Are you part of a network that no one else is involved in? If so, what connections
do you have with influential people?
 ________________________________________________________________
________________________________________________________________
_____________________.

Weaknesses
 What tasks do you usually avoid because you don't feel confident doing them?
________________________________________________________________
________________________________________________________________
_____________________.
 What will the people around you see as your weaknesses?
________________________________________________________________
________________________________________________________________
_____________________.
 Are you completely confident in your education and skills training? If not, where
are you weakest?
________________________________________________________________
________________________________________________________________
_____________________.
 What are your negative work habits (for example, are you often late, are you
disorganized, do you have a short temper, or are you poor at handling stress)?
________________________________________________________________
________________________________________________________________
_____________________.
 Do you have personality traits that hold you back in your field? For instance, if
you have to conduct meetings on a regular basis, a fear of public speaking would
be a major weakness.
________________________________________________________________
________________________________________________________________
_____________________.
Opportunities
 Do you have a network of strategic contacts to help you, or offer good advice?
________________________________________________________________
________________________________________________________________
_____________________.
  A new role or project that forces you to learn new skills, like public speaking or
international relations.
________________________________________________________________
________________________________________________________________
_____________________.
Threats
 What obstacles do you currently face at school?
________________________________________________________________
________________________________________________________________
_____________________.
 Are any of your classmates competing with you for projects or roles?
________________________________________________________________
________________________________________________________________
_____________________.
 Is your student life (or the demand for the things you do) changing?
________________________________________________________________
________________________________________________________________
_____________________.
 Could any of your weaknesses lead to threats?
________________________________________________________________
________________________________________________________________
_____________________.
PRETEST
CHECK YOUR SKILL
I. Identification. Write the correct answer on the space provided.
___________________1. The easier it is for new companies to enter the
industry, the more cutthroat competition there will be.
___________________2. In the Porter’s theory, this force actually means goods
and services that does similar functions
___________________3. The number of competitors increases or they become
equal in size.
___________________4. A small number of dominant, highly concentrated
suppliers exists.
___________________5. The buyers purchasing from you as well as your
competitors
A PESTEL analysis is a framework or tool used by marketers to analyse and monitor
the macro-environmental (external marketing environment) factors that have an
impact on an organisation. The result of which is used to identify threats and
weaknesses which are used in a SWOT analysis.

PESTEL stands for:

 P – Political
 E – Economic
 S – Social
 T – Technological
 E – Environmental
 L – Legal

Political Factors
These are all about how and to what degree a government intervenes in the economy.
This can include – government policy, political stability or instability in overseas
markets, foreign trade policy, tax policy, labour law, environmental law, trade
restrictions and so on.
It is clear from the list above that political factors often have an impact on
organisations and how they do business. Organisations need to be able to respond to
the current and anticipated future legislation, and adjust their marketing policy
accordingly.

Economic Factors
Economic factors have a significant impact on how an organisation does business and
also how profitable they are. Factors include – economic growth, interest rates,
exchange rates, inflation, disposable income of consumers and businesses and so on.
These factors can be further broken down into macro-economical and micro-
economical factors. Macro-economical  factors deal with the management of demand
in any given economy. Governments use interest rate control, taxation policy and
government expenditure as their main mechanisms they use for this.
Micro-economic factors are all about the way people spend their incomes. This has a
large impact on B2C organisations in particular.

Social Factors
Also known as socio-cultural factors, are the areas that involve the shared belief and
attitudes of the population. These factors include – population growth, age
distribution, health consciousness, career attitudes and so on. These factors are of
particular interest as they have a direct effect on how marketers understand customers
and what drives them.

Technological Factors
We all know how fast the technological landscape changes and how this impacts the
way we market our products. Technological factors affect marketing and the
management thereof in three distinct ways:
 New ways of producing goods and services
 New ways of distributing goods and services
 New ways of communicating with target markets

Environmental Factors
These factors have only really come to the forefront in the last fifteen years or so.
They have become important due to the increasing scarcity of raw materials, pollution
targets, doing business as an ethical and sustainable company, carbon footprint targets
set by governments (this is a good example where one factor could be classed as
political and environmental at the same time). These are just some of the issues
marketers are facing within this factor. More and more consumers are demanding that
the products they buy are sourced ethically, and if possible from a sustainable source.

Legal Factors
Legal factors include - health and safety, equal opportunities, advertising standards,
consumer rights and laws, product labelling and product safety. It is clear that
companies need to know what is and what is not legal in order to trade successfully. If
an organisation trades globally this becomes a very tricky area to get right as each
country has its own set of rules and regulations.

SWOT ANALYSIS
What is SWOT Analysis?
Acronym for Strengths, Weaknesses, Opportunities, and Threats.
Technique is credited to Albert Humphrey who led a research project at Stanford
University in the 1960s and 1970s.
Planning tool used to understand Strengths, Weaknesses, Opportunities, & Threats
involved in a project / business.
Technique that enables a group / individual to move from everyday problems /
traditional strategies to a fresh perspective.

What is SWOT?
• SWOT is a business or strategic planning technique used to summarise the key
components of your strategic environments.
Introduction
 • SWOT analysis (strengths, weaknesses, opportunities, and threats analysis) is a
framework for identifying and analyzing the internal and external factors that can
have an impact on the viability of a project, product, place or person. 

Internal vs. External

• Strengths and Weaknesses are considered internal factors---meaning you as

the business owner can control them. How you manage or market the business
controls whether it is a strength or weakness
• Opportunities and Threats are considered external factors---meaning you have
little control over them. It is your job as a business owner to respond
appropriately .
SWOT analysis examines four elements…
• Strengths - internal attributes and resources that support a successful outcome.
• Weaknesses - internal attributes resources that work against a successful
outcome.
• Opportunities - external factors the project can capitalize on or use to its
advantage.
• Threats - external factors that could jeopardize the project.

Mc Donald’s SWOT Analysis

Porter's Five Forces of Competitive Position

A MODEL FOR INDUSTRY ANALYSIS

Michael E. Porter
 Born in 1947.
 Professors in Harvard Business School.
 Introduced Porter's 5 Forces Model.
 Written 18 books & over 125 Articles.

Importance of The 5 Forces

What strategy to use?
Basic knowledge of business strategy & forces that influence the decision
making

Industry analysis :
1) Industry relevance
2) Industry players
 3) Industry structure
4) Future changes
Strategize :
* Competitive advantage
* Market dominance
* New product development
* Price leadership
* Re-engineering
* Downsizing
* Restructuring
Threats of New Entrants
• The easier it is for new companies to enter the industry, the more cutthroat
competition there will be. Factors that can limit the threat of new entrants are:
1. How loyal are the end users in this industry?
2. How troublesome or hard is it for the end users to switch and use another
product?
3. Does it require a large seed capital to enter this industry?
4. Do entries to this industry regulated by government?
5. How hard is it to gain access to the distribution channels?
6. How long does it take for new staff to acquire the necessary skills to do
the work?
Threat of Substitutes
Threats of Substitute in the Porter’s theory actually means goods and services that
does similar functions
 How many close substitutes are available?
 How pricy are the substitutes?
 What is the perceived quality of the substitutes?
Intensity of rivalry among established firms
1. How many close competitors exist in the industry?
 2. What are the sizes of your close competitors?
3. What is the industry structure?
Bargaining power of Customers
1. How many companies are there for the buyer to choose from?
2. Do you depend only on a few buyers to sustain your sales?
3. How hard is it for the buyers to switch and use a competing product?
4. Are the buyers purchasing from you as well as your competitors?
5. Do the buyers have the capacity to enter your business and produce the
goods themselves?
Bargaining power of Suppliers
• Are there substitutes for your suppliers’ products?
• Do you have high switching cost to use another supplier?
• Do suppliers have the capacity to enter your business?
• Does your company capable to enter the supplier’s business?
Porter’s Five Forces Chart
 https://blog.essaycorp.com/porter-five-force-analysis/

I. Analyze Porter's Five Forces in Buying a Farm. Write your answer at the back of this
page.
Martin Johnson is deciding whether to switch career and become a farmer – he's always
loved the countryside, and wants to switch to a career where he's his own boss. He
creates the following Five Forces Analysis as he thinks the situation through:
1. What are the strengths and weaknesses of the industry?
2. What worries Martin Johnson? List the threats present in the industry.
3. What are the advantages and disadvantages of switching career and becoming a farmer?
4. Write your conclusion and recommendation for Martin Johnson.
5. What is the significance of Porter’s Five Forces in examining decision of Martin
Johnson?
 Create a SWOT ANALYSIS of a business that you want to establish.

Introduction of the company strengths weaknesses

Mission

Vision

opportunities threats

Objectives
threats