comm 210 - full notes 3

8/17/2019 Comm 210 - Full Notes 3

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COMM 210- Final Exam

The Theorists:

Alfred Chandler: The Enduring Logic of Industrial Success

The Concepts:

- Logic of Managerial Enterprise: The dynamic growth and competition that drives modernindustrial capitalism

- Economies of scale: Large plants can produce products at a much lower cost than small ones because the cost per unit drops as the volume of output rises

- Economies of scope: Large plants can use many of the same raw and semi-finished materialsand intermediate production processes to make a variety of different products

- Management hierarchy:

- lower and middle managers: coordinate products though production and distribution - top managers: coordinate and monitor current operations and to plan and

Allocate resources for future activities

- First movers & challengers: companies that quickly dominated their industries by makinglarge investments and gaining competitive advantage. high market share! - created national and international marketing distribution organi"ations - recruited teams of managers - They engaged in systematic #$% to improve their products and processes& they

differentiated as well. They captured markets and others may not want to compete.

- esearch & !evelopment: to improve products and processes. 'nnovation and strategy ismore important than price.

- elate! & "nrelate! !iversification: - Unrelated diversification: when managers acquire businesses in which they

have few if any organi"ational capabilities to give them a competitive edgeignore logic of managerial enterprise!

- Related Diversification: ()panding in your field of knowledge

This leads to…

- #eparation of top vs mi!!le managers:

- Top managers have little knowledge of or e)perience with the technological processes andmarkets of the new acquisitions - *verload in decision making at the corporate office- #toc$ mar$et press"res: loose profits and market share if: - (ntrepreneurial enterprises fail to become managerial enterprises - +anagerial enterprises fail to maintain their competitive capabilities

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- #hort‐term thin$ing: making a quick buck and trying to gain competitive edge through

unrelated diversification

C,A%L(#/ +A' CLA'+/:

0 Logic of Managerial Enterprise: /uccessful firms capitali"e on economies of scale $ scope&create management structures and invest in research $ development0 *nce a firm loses the opportunity to be a first mover& it is difficult to regainCompetitive advantage

1or firms to benefit from economies of scale or scope:- 1low of materials must be kept constant- ational and international! marketing and distribution functions must be created- Teams of lower and middle managers need to be recruited

C,A%L(#/ /(C*%A#2 CLA'+/:

- 3rowth through unrelated diversification is a poor corporate strategy- 4usiness ownership patterns have diminished the likelihood of many firms long-term success- 'n competitive battles #esearch5innovation and strategy are more powerful weapons than price.

Side Notes:

-Continuing growth: Companies grew hori"ontally combining with competitors! and verticallymoving backward to control materials and forward to control outlets!.

Larry Greiner: Evolution and Revolution as Organizations Grow

A theory of organi"ational life cycles& with a focus on growth

%reiners claims:

0 *rgani"ational growth is characteri"ed as a series of developmental phases0 +anagement practices that work well in one phase bring on a crisis in the ne)t

Concept list:

0 Evol"tion & evol"tion: 6hases begin with a period of evolution steady growth and stability!and ends with a revolutionary period turmoil and change! - 'f the revolutionary period is resolved& the company can move to ne)t stage of evolution

0 'o( organi)ations !evelop:

- *ge of the organi"ation: The same organi"ational practices are not maintained throughout along life span. +anagement problems and principles are routed in time.

- #i)e of the organi"ation: 6roblems and solutions tend to change with increased employeesand sales revenue.

- #tages of evol"tion: As organi"ations grow& different evolutionary period emerge.

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- #tages of revol"tion: 6ractices become outdated7 companies that do not change will fold ofcease to grow. /olution for one crisis becomes a ma8or problem in the ne)t.

- %ro(th rate of the industry: /peed of stages are related to the speed of the growth of theindustry

0 (volutionary and #evolutionary phases:1+ Creativity: 4irth stage of organi"ation. 1requent& informal communication& long work hoursand modest salaries as well as promise of ownership benefits& decisions and motivations arehighly sensitive to market feedback. - ,Crisis of Lea!ership: 'nformal communication becomes infeasible& additionalfunctions must be implemented. eed a strong business manager.2+ .irection: 1unctional organi"ational structure. %ifferent departments& formalcommunication& more employees& increased efficiency& need of systems accounting& inventory...! - ,Crisis of *"tonomy: 'mpersonal environment. Lower level employees have moreknowledge about markets and machinery than management7 want to take initiatives on their own. eed a decentrali"ed hierarchy of management.

/+ .elegation: %ecentrali"ed organi"ational structure. +ore responsibility given to lowermanagement& bonuses are used to motivate employees& diversification of products.- ,Crisis of Control: Lower level management begins to run their own show without

coordinating with the rest of the organi"ation. +anagement must focus on control.+ Coor!ination: /trategic business units are formed. Top level management takes responsibilityfor the initiation and administration of the new system.

- ,e! ape Crisis: 6rocedures take precedence over problem solving. Company has become too large and too comple) to me managed though formal programs and rigid systems.Conflict between like and staff7 line managers resent direction from those who are not familiarwith local conditions. +anagement must promote interpersonal collaboration.+ Colla3oration: /trong interpersonal collaboration. /ocial control and self-discipline replaceformal control& rewards are geared for team performance.

- ,4 Crisis: 6sychological saturation of employees who grow e)hausted from the intensityof teamwork and innovation. +ay perhaps be solved though new structures and programs thatallow employees to periodically rest& reflect and revitali"e themselves.

5 Management style:

- +anagers need to know where they stand in the phases of development. - +ust know when its time to change and be able to activate it. - Cannot skip phases& must go with the flow. - +ust be able to persuade ideas to other managers.

5*!vantages of large6 3"rea"cratic organi)ations:

,ierarchical Authority: 6romises& control and responsibility/peciali"ation of sub-units: 6romises accountability& control and e)pertise+anagement by #ules: 6romises control and consistency4eing '+6(#/*AL promises ob8ectivity& consistency and equality

%reiners secon!ary claims

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0 *rgani"ations should not try to skip phases of growth0 Top managers whose style is no longer appropriate should remove themselves As growing anddeveloping managers should give up position to someone more suitable!0 3rowth is not inevitable

77Chan!ler says yo" m"st gro( an! %reiner says yo" !ont have to 89 Chan!ler has

evi!ence an! %reiner !oes not+

a!es C" Collins and erry I" #orras: $uilding your Co!%any&s 'ision

“Companies that enjo end!ring s!ccess have core val!es and a core p!rpose that remain fi"ed

while their #!siness strategies and practices endlessl adapt to a changing world$

0 Core i!eology: (nduring character7 glue that holds the organi"ation together as it grows&decentrali"es and e)pands globally. Captures what you stand for and why you e)ist. Consists of

core values $ core purpose!. Core ideology is a consistent identity that transcends product ormarket life cycles& technological breakthroughs& management fads and individual leaders.

9 Core val!es: 4eliefs about what is important in the long-term. Timeless guiding principles&rarely if ever change. 'ntrinsic values inside the organi"ation& e)cludes anything e)ternal. Acompany should never change its core values7 they must always remain true to them. 9 Core p!rpose: 'nspiration for people who work there. 't is not 8ust about making profits& itsabout finding a reason why you come in to work every day and produce. 't is the reason why

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people en8oy innovating and not 8ust working for a paycheck. #eflects peoples idealisticmotivation for doing the companys work. hy are we here; A group of people get together sothey are capable to accomplish something collectively that they could not accomplish separately.

0 .iscovering yo"r Core !eology:

9 +ust be authentic. 9 +ust be meaningful and inspirational only to the people inside. 9 *nce established& everything else that is not part of the core ideology should change and adaptto market changes. 9 Core ideology should not change in response to market changes. 9 3etting people to share the core ideology.

- /onys ideology: %e shall welcome technical diffic!lties and foc!s on highl sophisticated

technical prod!cts that have great !sef!lness for societ regardless of the &!antitinvolves: we shall place o!r main emphasis on a#ilit' performance' and personal

character so that each individ!al can show the #est a#ilit and s(ill)

<< %ont confuse core ideology with the concept of core competence. Core competence is astrategic concept that defines your organi"ations capabilities- what you are particularly good at-whereas core ideology captures what you stand for and why you e)ist.

5 Envisione! f"t"re: 8'*%s ;3ig hairy a"!acio"s goal<

9 Audacious& vivid goals stimulate progress 9 => to ?> year audacious goal plus vivid descriptions of what it would be like to achieve thegoal. 9 /pur passion $ team spirit 9 'nventing such a goal forces and e)ecutive team to be visionary rather than strategic or tactical. 9 %ifficult but not impossible to achieve 9 Companies need to build a strong organi"ation with people capable of achieving the goals 9 Avoid the @e have arrived syndrome which is an organi"ation who achieved their 4,A3 butfailed to replace it with another.

5=ision Level

- Companies often use a bold mission called 4,A3- Theres a difference with having a goal and setting yourself a huge challenge like

climbing +ount (verest- 't means thinking beyond the current capability- /uccessful companies preserve the core ideology and stimulate progress through a vivid

and audacious envisioned future.

5=ivi! .escription

- A vibrant& engaging and specific description of what it will be like to achieve that 4,A3- Creating an image that people could carry on in their head.- 6assion& emotion and conviction are essential parts.

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ay $arney: Loo(ing Inside for a Co!%etitive Advantage

* theor of s!stained competitive advantage

4A#(2/ B(2 C*C6(T/:/ustained competitive advantage:0aluable resources and capabilities0#are resources and capabilities0,ard to imitate resources and capabilities0#esources and capabilities organi"ed to be e)ploited

-4arney says there are a lot of tools to focus on a company like /*T.-/ocially comple) resources are organi"ational phenomena like reputation& trust& friendship&teamwork and culture.-/ustained competitive advantage cannot be created simply by evaluating environmentalopportunities and threats& and then conducting business only in high-opportunity& low-threatenvironments. #ather& creating sustained competitive advantage depends on the unique resourcesand capabilities that a firm brings to competition in its environment.

4A#(2/ +AD*# CLA'+/:- The most careful and complete analysis of firms competitive environments cannot& by itself&e)plain their success- /trategists also need to analy"e the competitive implications of firms internal strengths andweaknesses.

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- 1inancial& physical& human& organi"ational assets used by the firm to develop& manufacture anddeliver products and services to its customers.

A 1irms #esources and Capabilities- 1inancial: debt& equity& retained earnings& etcE

- 6hysical: machines& manufacturing facilities& buildings.- ,uman: e)perience& knowledge& 8udgment& wisdom& etcE- *rgani"ational: history& relationships& trust& culture& formal reporting structure.

1*F# '+6*#TAT GF(/T'*/ A4*FT #(/*F#C(/ A% CA6A4'L'T'(/ =O!:

GF(/'T* *1 =*L9E: %oes firms resources and capabilities enable it to e)ploit opportunitiesand5or neutrali"e threats;-/onys and ?+s resources-including their specific technological skills and their creativeorgani"ation cultures- made it possible for these firms to respond to& and even create& new

environmental opportunities.-Changes in a firms environment may reduce the value of a firms resources in their current use&while leaving the value of those resources in other uses unchanged.-#ole) and Time) e)ploit very different valuable resources. #ole) emphasises on quality and ahigh-status reputation while Time) emphasises on high-volume and low-costs.

GF(/T'* *1 *>: ,ow many competing firms already possess these valuablesresources and capabilities;-'f a firms resources are valuable and rare& those resources may enable a firm to gain at least atemporary competitive advantage.-al-+art gained a competitive advantage over B-+art because of their Dust-on-Time principleto control inventory. This point-of-purchase inventory control system was rare.GF(/T'* *1 M*8L>: %o firms without resources or capability face a costdisadvantage in obtaining it compared to firms that already possess it;-'mitation can occur either through substitution or duplication-'f these substitution resources have the same strategic implications and are no more costly todevelop& then imitation through substitution will lead to competitive parity in the long-run.

-,istory- /mall decisions- /ocially comple) resources reputation& trust& friendship& teamwork& culture!

GF(/T'* *1 O%*?@*O?: 's a firm organi"ed to e)ploit the full competitive potentialof its resources and capabilities; #ole) v. Time)!

- al-+arts continuing competitive advantage in the discount retailing industry can beattributed to its early entry into rural markets in the F/.

ot valuable Competitive %isadvantage

aluable& but not rare Comparative equalityaluable and #are Competitive advantage

aluable& #are& but not costly to imitate Temporary competitive advantage

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aluable& rare& and costly to imitate /ustained competitive advantage

)rederic( *erz+erg: One ,ore Ti!e: *ow do you ,otivate E!%loyees-

'er)3ergs concepts:

+otivating with B'TA:=. ?egative A*: fear of what will happen if something is not done. ill never lead to

motivation.-egative phsical B'TA-H 't is a physical attack7 it directly stimulates the autonomicnervous system and usually leads to negative feedback from employees.-egative pschological B'TA-H This has more advantages over physical B'TA becausethe cruelty is not visible the hurting is internal!. Those who use this type of B'TA likemanagers receive ego satisfaction. 'f the employee complains& he or she can be accusedof being paranoid because there is no tangible evidence of an attack.

I+ Bositive A*: rewards& incentives& seduction to get and employee to @move or @8ump.@%o this for me or the company& and in return ' will give you a reward& an incentive& morestatus& a promotion& all the quid pro quos that e)ist in the industrial organi"ation

<<B'TA is *T motivation because we are kicking our employees each time to do something.1or motivation& one needs no outside stimulation because one AT/ to do it. B'TA resultsonly in short-term movement

?. 'ygiene factors: These factors are e)trinsic and do *T provide 8ob satisfaction. ,ygienefactors are what employers do to get their employees to move. ,ygiene factors are tied in withthe B'TA concepts. ,ygiene factors include company policy& supervision& salary& status& working

conditions& etc.

J. Motivator or %ro(th factors: This is the primary cause to 8ob satisfaction. The growth ormotivator factors that are intrinsic to the 8ob are achievement& recognition for achievement& thework itself& responsibility& and growth or advancement.

K. .issatisfiers mentioned above!. #atisfiers mentioned above!

M. 'ori)ontal o3 loa!ing: reducing personal contribution of employees rather than giving themopportunities for growth in their accustomed 8obs in order to enrich certain 8ob. Dob loadingenlarges the meaningless of a 8ob. ()amples of 8ob loading include:- 'ncreasing the quota of hamburgers that need to be produced without e)tra time given-Asking a dishwasher to mop the floors as well in his shift adding another meaningless task!-#emoving the most difficult parts of the 8ob to free the worker to accomplish more lesschallenging tasks.

N. =ertical o3 loa!ing: ,as internal motivators involved. ()amples include:-'ntroducing new difficult tasks not previously handled growth and learning!

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-#emoving some controls while retaining accountability responsibility and achievement!

O. Do3 enlargement: o change in challenges.

=>. Do3 enrichment: a systematic attempt to motivate employees by manipulating the

motivational factors.

=ertical o3 loa!ing providing motivator factors!

hat might you do to Pimprove a 8ob;0 #emove some controls while retaining accountability0 'ncrease accountability of individuals for own work 0 3ive person a complete natural unit of work 0 3rant additional authority7 8ob freedom

0 +ake periodic reports directly available to workers themselves rather than supervisors0 'ntroduce new& more difficult tasks0 Assign workers to speciali"ed tasks& ena#ling them to #ecome e"perts

#teps for DO8 E?C'ME? instilling motivators!

,ow might you go about improving a 8ob;0 /elect 8obs& approaching them with the conviction that they can be changed0 4rainstorm possible changes0 #emove hygiene $ hori"ontal loading issues0 Avoid direct participation by the employees whose 8obs are to be enriched

0 4e prepared for an initial drop in performance0 ()pect first‐line supervisors to e)perience some an)iety

ot all 8obs can or need to be enriched.Fltimate reward in motivation is personal growth

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)rench and Raven: The $ases of Social #ower

<The most common description of power is 1rench and #aven =O>!. This divides power intofive different forms.

<6 is the person who holds power of *

1< Coercive po(er

This is the power to force someone to do something against their will. 't is often physicalalthough other threats may be used. 't is the power of dictators& despots and bullies. Coercioncan result in physical harm& although its principal goal is compliance. %emonstrations of harmare often used to illustrate what will happen if compliance is not gained.

Coercion is also the ultimate power of all governments. Although it is often seen as negative& itis also used to keep the peace. 6arents coerce young children who know no better. A personholds back their friend who is about to step out in front of a car.

*ther forms of power can also be used in coercive ways& such as when a reward or e)pertise iswithheld or referent power is used to threaten social e)clusion.

<<<egative reward based on 6s perception that * has the ability to mediate punishments onhim<<<

2< e(ar! po(er

*ne of the main reasons we work is for the money as we need to conduct our lives. There aremany more forms of reward -- in fact anything we find desirable can be a reward& from amillion dollar yacht to a pat on the back.

#eward power is thus the ability to give other people what they want& and hence ask them to dothings for you in e)change.

#ewards can also be used to punish& such as when they are withheld. The promise is essentiallythe same: do this and you will get that.

<<<6ower to provide something like bonuses& and incentives based on 6s perception that *has the ability to mediate rewards for him<<<

/< Legitimate po(er

Legitimate power is that which is invested in a role. Bings& policemen and managers all havelegitimate power. The legitimacy may come from a higher power& often one with coercive power. Legitimate power can often thus be the acceptable face of raw power.

A common trap that people in such roles can fall into is to forget that people are obeying the position& not them. hen they either fall from power or move onto other things& it can be a pu""ling surprise that people who used to fawn at your feet no long do so. This power comesfrom values.

<<< based on 6s perception that * has a legitimate right to prescribe behaviour for him <<<

< eferent po(er

This is the power from another person liking you or wanting to be like you. 't is the power ofcharisma and fame and is wielded by all celebrities by definition! as well as more local socialleaders. 'n wanting to be like these people& we stand near them& hoping some of the charismawill rub off onto us.

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Those with referent power can also use it for coercion. *ne of the things we fear most is sociale)clusion& and all it takes is a word from a social leader for us to be shunned by others in thegroup. A group5person you look up to and you want to associate with. Anyone one in this groupholds power.

<<<4ased on 6s identification with *<<<

< Expert po(er

hen ' have knowledge and skill that someone else requires& then ' have ()pert power. This isa very common form of power and is the basis for a very large proportion of humancollaboration& including most companies where the principle of speciali"ation allows large andcomple) enterprises to be undertaken.

()pert power is that which is used by Trades Fnions when they encourage their members tostrike for better pay or working conditions. 't is also the power of the specialist #$% (ngineerwhen they threaten to leave unless they get an e)orbitant pay rise or a seat by the window.Completely based on knowledge and skill.

<<<based on 6s perception that * has some knowledge or e)pertise<<<

()amples:

=. /hare my e)perience $ special skills: ()pert

I. Tell them that they have commitments to meet: Legitimate

?. 3ive them tough& undesirable 8obs to do: Coercive

J. +ake them feel like ' approve of them: #eferent

K. +ake them feel important: #eferent

. 6rovide good technical suggestions: ()pert

N. +ake them recogni"e they have tasks to accomplish: Legitimate

O. 6rovide them with special benefits: #eward=>. +ake things unpleasant for them: Coercive

==. +ake them feel they have commitments to meet: Legitimate

=?. +ake the work difficult for them: Coercive

*andy: The Sig!oid Curve

he #igmoi! C"rve:

-'t is the story of a products life cycle and of many a corporations rise and fall

-There is life beyond the curve. The secret to constant growth is to start a new sigmoid curve

before the first one peters out.

-The real energy for change comes only when you are looking disaster in the face& at point 4 on

the first curve. At this point it is going to require mighty effort to drag oneself up to where& by

now& one should be on the second curve. At point 4& resources are depleted and energies are low.

1or an individual& an event like being laid off typically takes place at point 4&

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-'f a company is left at point 4& only new people will have the credibility and the vision to lift the

place back onto the second curve.

-'t is wise for a company to start their second curve at point A and to ensure renewal and the

continued growth of their organi"ation.

-+aintaining traditional business strategies and never adapting to new markets think of

4lockbuster! will never be able to reach the second curve and will eventually die.

he .iscipline of the #econ! C"rve:

-2ou will only know for sure where you are on the curve when you look back.

-The discipline of the second curve follows the traditional four-stage cycle of discovery

questioning& ideas& possibilities& and hypotheses!. The first two stages cost nothing e)cept for

the time for imagination.

-The second curve is always different& although it builds on and grows out of the first.

-Climbing the first curve is when a company is e)panding or growing& but to reach the second

curve the company must to something really different like launch a new product. +egabus was

still on their first curve& all they did was add wi-fi& new routes& and more busses!

C"rvilinear Logic:

-Logic that everything has its ups and downs and nothing lasts forever.

-Curvilinear Logic means starting life over again& something that gets harder as one gets older.

-Coca-Cola is an e)ception to this general rule<<

-Bai"en means continuous improvement

Fertili)ing the #econ! C"rve:

-/econd-curve thinking will come most naturally from the second generation& those who will

inherit the future.

-'nclude some thoughts and recommendations on how the organi"ation should adapt to the

changes they might foresee for their industry and their world around them

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<<e can also relate this curve to Collins Company ision

.a%lan and /orton: The $alanced Scorecard

0 The @bottom line is not enough0 The traditional financial performance measures worked well for the industrial era but notanymore

0 A stakeholder is anyone who has invested interest in a company and stockholders are companyowners& employees& etc.0 1our perspectives for a balanced scorecard

9 C"stomer perspective

0 hat matters most to customers; ,ow do customers see us; /pecific measures& includesnumbers& that reflect the factors that really matter to customers! To achieve our vision& howshould we appear to customers;

9 nternal 3"siness perspective

0 ,ow can we produce to meet customer e)pectations; hat must we e)cel at; 'nternal

operations that enable them to satisfy customer needs! To satisfy our shareholders and customers&what business processes must we e)cel at;

9 nnovation & learning perspective

0 ,ow can we make continual improvements; Can we continue to improve and create value;'mprove e)isting products& launch new ones& and create more value for customers.....!To achieveour vision& how will we sustain our ability to change and improve;

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9 Financial perspective

0 ,ow can we ensure profitability for shareholders; ,ow do we look to them; To succeed

financially& how should we appear to our shareholders;

Example:

EC s 8alance! #corecar!

Berspectives "estions %oals Meas"rements

C"stomer

,ow docustomers seeus;

ew products.6ercent of sales from new products.

#esponsive supply.*n-time delivery as defined bythe customer.

6referred supplier. /hare of key accountQs purchases.

Customer partnership. umber of cooperativeengineering efforts.

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nternal

3"siness

hat must wee)cel at;

Technology capability.+anufacturing geometry versusthe competition.

+anufacturing e)cellence. Cycle time& Fnit cost and 2ield.

%esign productivity./ilicon efficiency and

(ngineering efficiency.

ew product introduction.Actual introduction scheduleversus planned introduction.

nnovation &

learning

Can we continueto improve $create value;

Technology leadership.Time to develop the ne)tgeneration.

+anufacturing learning. 6rocess time to maturity.

6roduct focus.6ercent of products that equalN>R of sales.

Time to market. ew product introduction versusthe competition.

Financial,ow do we look to shareholders;

/urvive. Cash flow.

/ucceed.Guarterly sales growth andoperating income by division.

6rosper.'ncreased market share and#eturn on (quity.

()ample:

hat you want to measure-H percent of sales from new products

The measurements-H =>>R& OKR& SK>>>E

*merican *pparel +eas!res:

=. 1inancial 6erspective- =JR interest rate on financing must be reduced to MR by ne)t

month. Charney must find a solution to decrease his interest rate from money borrowed.I. Customer 6erspective: Launch Guarterly sales campaigns to attract customers. 4y

attracting new customer using discount tactics& this can help satisfy new and old

customers.?. 'nnovation 6erspective: (nter new market segments such as business wear. Add two new

collections by ne)t year. 3reater diversification can appeal more customers and generategreater revenue.

J. 'nternal 6erspective: (mployees must be trained faster. 'ncreasing efficiency in training

will help his economic situation. 'f employees are trained faster lets say in three days!&

efficiency will be increased.

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*enry ,intz+erg: The ,anager&s o+ 0)ol(lore and )act1

+yth: +anagers plan& organi"e& coordinate and control

Managerial oles:

'nformational #oles:

=. +onitor #ole: /canning the environment for information through networking.I. %isseminator #ole: +anager passes some privileged information directly to subordinates

who have no access to the information.?. /pokesperson: /ending information to people outside the unit. /atisfying the influential

people.

'nterpersonal #oles:

=. 1igurehead #ole: (very manager must perform ceremonial duties the sales manager

takes an important customer to lunch!I. Leader #ole: +otivate& encourage employees& recogni"e their goals?. Liaison: Tying two people together. ertical and hori"ontal communications.

%ecisional #oles:

=. (ntrepreneur: /eeks to improve the unit. Adapt it to changing conditions in the

environment.

I. %isturbance ,andler: #esponding to pressure. +anager must act& not ignore.?. #esource Allocator: %eciding who will get what. +ost important resource7 managers

allocating his or her time.J. egotiator: 'ntegral part of the managers 8ob because of authority

<<+anagerial /kills: developing peer relationships& carrying out negotiations& motivating

subordinates& resolving conflicts& establishing information networks and disseminating

information& making decisions in conditions of high ambiguity and allocating resources

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Li(er and Choi: $uilding 2ee% Su%%lier Relationshi%s

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/ide otesE

-The =>> biggest F./. manufacturers spent JN cents out of every dollar in I>>I to buy materials&

compared to J? cents in =OO.

-4usinesses are increasingly relying on their suppliers to reduce costs& improve quality& anddevelop new processes and products faster than their rivals can.

-/upplier Beirestsu: Close-knit networks of vendors that continuously learn improve and prosper

along with their parent companies. Dapanese supplier-partnering model!

-Toyota and ,onda believe they can create the foundations for partnerships only if they know as

much about their vender as the vendors know about themselves

-either Toyota nor ,onda depends on a single source for anything: both develop two to three

suppliers for every component or raw material they buy. 'f Toyota doesnt approve of the

performance of their suppliers& they simply give the contract to this suppliers competition.

-Toyota and ,onda dont source from low-wage countries much7 their suppliers innovation

capabilities are more important than their wage costs.

Fnderstand how your suppliers work

• Learn about suppliers business

• 3o see how suppliers work

• #espect suppliers capabilities

• Commit to coprosperity

Turn supplier rivalry into opportunity

• /ource each component from two or three vendors

• Create compatible production philosophies and systems

• /et up 8oint ventures with e)isting suppliers to transfer knowledge and maintain control

/upervise your suppliers

• /end monthly report cards to core suppliers

• 6rovide immediate and constant feedback

• 3et senior managers involved in solving problems

%evelop suppliers technical capabilities

• 4uild suppliers problem-solving skills

• %evelop a common le)icon

• ,one core suppliers innovation capabilities

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/hare information intensively but selectively

• /et specific times& places& and agendas for meetings

• Fse rigid formats for sharing information

• 'nsist on accurate data collection

• /hare information in a structured fashion

Conduct 8oint improvement activities

• ()change best practices with suppliers

• 'nitiate kai"en pro8ects as suppliers facilities

• /et up supplier study groups

Critical hin$ing 3y Lin!a .yer

Critical hin$ing: Analy"ing the validity of arguments in a te)t.- 'dentify the authors ma8or conclusions- %escribe and evaluate supporting evidence- Fncover assumptions and values- %etermine soundness of causal logic and deconstruct use of persuasive language

Ghat is a claim4

9 +ain thesis or concl!sion of a te"t that the a!thor is tring to pers!ade o! to accept)

- (asiest claims to find are towards the beginning or end of a te)t.

8/17/2019 Comm 210 - Full Notes 3


8/17/2019 Comm 210 - Full Notes 3


?! /ufficiency: 2ou need enough evidence to support the claim.J! #epresentativeness: The evidence they provide must be representative to all Canadians

letUs say!. /hould represent everyone from the group you wish to target.K! Authority: ()pert& valid source! Clarity of e)pression: Clear& paragraphs& etc.

Example from Moon3ot:

('%(C( - /F11'C'(T 9 ,25(VA+6L(/ACC#F#AT( 9 ,25(VA+6L(/6#(C'/'* 9 ,25(VA+6L(/5 ,AT L((L *1 6#(C'/'*#(6#(/(TAT'( 9 ,*5(VA+6L(/5%'11(#(T

'(6*'T/- AFT,*#'T2 9 ,*5(VA+6L(/

/F11'C'(T 9 its development of Lessmore and the story book app.& Adam olker whoclaims that @this is not a place for specialists.. if ' worked for a studio in California& my

whole 8ob would be animating a background characters shoes proves that the employeeswork on pro8ects they build and are passionate about. there could be more evidenceregarding other companies whom tried such things& or other companies with small staffand their successes!,iring young& multitalented creative who veer from the typical studio machine

6#(C'/'* 9 ambiguous words!Considering this article is more about the environment of a workplace and how itsucceeds because of its lack of control over creativity& precision is not a main focus ofevidence. Ambiguity is seen in the last paragraph when looking upon the future of+oonbot and in comparison to 6i)ar and whether or not they will @be the ne)t 6i)ar.hen talking about numbers in the articles& the ambiguous terms @more than comes up.

ACCF#AC2 9 information is researchable

#(6#(/(TAT'( 9 variety of sources of evidence!The representativeness of the article is rather weak considering the standpoint of thearticle is based around solely the opinion and e)perience from the +oonbot staff andemployees themselves. The article is representative of the life and e)periences of the+oonbot staff considering that the article speaks with no more than ? people who workthere and their staff but ' do not think it is representative of the industry or other playerswithin the industry. A small staff and personal work environment may work for moonbot but may not for other companies AFT,*#'T2 9 credentials!The maga"ine fast companys founders are two former ,arvard business review editorsand calls itself the worlds leading progressive business media brand.

F%(#L2'3 A//F+6T'*/ 9

8/17/2019 Comm 210 - Full Notes 3


the underlying assumption of the article is that work should be something an individual is passionate about and if so& the work will be that much better since youve put your allinto itcore business strategies are for large companies& personali"ed work is better and makesthe employees happier& animated movies and apps are the future& future business will be

revolved around new technologies& compatible with new technologies

C*'C'3; /F66*#T C*CLF/'*The article was convincing on the part that employees seem to really love what they do sothey strive to do their best& and that creates great products. As far as the evidence isconcerned& the representativeness couldve been better.

9?.EL>?% *##9MBO?#

0 9n!erlying ass"mptions 'mplicit or e)plicit principles that form the bases of our beliefs $

reasoning. Logical link that fills the gap between the evidence and the claim. %ifferent peoplehave different assumptions reflecting different values.

0 They tell us whether evidence provided for a claim is relevant 9 Realit ass!mptions: our beliefs about what events have taken place& what e)ists or how thingswork in the world. 9 1al!e ass!mptions: our ideals& our standards of right and wrong& the way things out to be. Can be recogni"ed though the use of words like ought& should& desirable....

0 Challenging "n!erlying ass"mptions:

9 To challenge reality assumptions we must present information showing that the authorUsnotions of reality and how the world works are debatable or 8ust plain wrong. 9 Challenging value assumptions are difficult as values develop early in life and are quiteresistant to change.

Ca"sal claims

0 Ca"sal explanation H Authors interpretation of cause $ effect relationships. +ay be multiplecauses0 ival ca"ses: The same evidence can be consistent with different interpretations. Can we thinkof plausible rival causal e)planations that would account for e)actly the same events;5 hree types of rival ca"ses:

9 Differences #etween gro!ps: hen an author says that an outcome is caused by a specificdifference between groups& we must pause and think: Are there any other differences betweenthese groups that may be relevant; 'f we can think of some other relevant factors that differ between the groups& we have a plausible rival cause.

8/17/2019 Comm 210 - Full Notes 3


9 *ssociation of characteristics: A correlation between two factors might be e)plained by one ofthree causal links. There may be a direct causal relationship& a reverse causal relationship or norelationship save though the effect of a third factors. 9 6ost hoc' ergo propter hoc After this therefore because of this!: Dust because an event wasfollowed by another even& it does not necessarily means that the first event caused the second.

echniI"es of pers"asion

9 Anticipate ob8ections based on0 negative evidence show that it is misleading!0 alternative5rival causes same evidence can be consistent with different interpretations!0 conflicting assumptions 'f you know that there are reality assumptions that your audiencemight feel are debatable or wrong& you must provide e)plicit data to back up your assumptions! 9 Counter ‐argue ob8ections

9 Limit claims you cannot rebut0 Acknowledging limitations makes your writing +*#( persuasive

9 #hetoric 9 Fse of language $ form: -%etail& be complete evidence and assumptions!-Tone scholarly vs. narrative!

-ividness being concrete draws attention!7 bring evidence to life& attracting attention toyour points and making them memorable for your readers.

'OG O E=*L9*E E=.E?CE: FOM M.EM

9nraveling #olar #tar Once an! F"t"re Bixar

Claim Applied took risks that made

them vulnerable

+oonbots method of focusing

on passion instead of making

it big is what made them

successful.

#"fficiency -%etailed evidence of the - /uccess of Lessmore

8/17/2019 Comm 210 - Full Notes 3


failure of the factories.

-Took risks with making

bigger panels but it failed.

- hat companies based in

,ollywood had to go through

before making it big

-,iring young& multitalented

creatives who veer from the

typical studio machine.Brecision - Fses direct quotations from

e)ecutives at Applied as well

as their customers

-Fses statistics and numbers in

reference to revenue

-Appropriate and detailed

facts

- %irect quotations from the

founders of +oonbot

- umbers to describe success

of the studio

- Fses some abstract words

+oonbot will be doing

something different!

*cc"racy - 'nformation is researchable

- Fses quotations

- #emains on target and never

strays from the claim

- 'nformation is researchable

- o trivial errors grammar!

epresentativeness - #elative to the claim

- ariation in sources matches

the variation in the population

- #epresents both sides

- *nly shows +oonbots 6*

- ot enough variety in

sources for the concerned

population

- #elative to the claim

*"thority - Author is the %igital /trategy

(ditor and 3reen 4i".

- Credible and believable

- %oesnt commit fallacy of

argumentation ad populum

- Author is a writer and

filmmaker in 2C

- ()perience in the field

- All quotes come from

members of the field

9n!erlying *ss"mptions - /olar energy is the future

- alue assumption

- Companies should use clean

energy

- 4ig companies dont foster

talent

- 2ounger people are more

creative

- alue assumption

#cale - +aking bigger panels to

slice costs

- +aking more factories

- 5A

- Company is relatively small

#lope - 4asing solar panels based on

equipment and machines they

already have- @Combining its amorphous-

silicon machines with the best

tools it could find

- Fsing their first creating

Lessmore!& an interactive

storybook& to create more likeit.

Limitations - #esources being strained

- (conomic crisis fro"e bank

financing for solar energy at

the end of I>>N

- %ont have the advantage of

being in ,ollywood

8/17/2019 Comm 210 - Full Notes 3


- +any competitors

.iversification - 6oor& what do they know

about solar energy;

- #elated

8arney ;=O< - /olar energy is something

new values!

- Fsing similar technologynot very rare!

- 's imitatible

- Collaborating with solar

manufacturers

- alue talent and continue to

do so

- #are that a company thissuccessful started without a

business structure

- Their products are imitatible

- /ingle organi"ation

#tage of Evol"tion - Collaboration

e)perimenting with new

practices!

- Creativity and delegation

8'*%s - 3oals were big and risky

because they knew little about

solar energy.

- Customers were compelledto see what they could do

- ot so daring

- 'nnovative business

- #isky because they chose a

base far from ,ollywood& and

did not have a proper structure- %aring

First Mover4 - ot in solar energy - 2es because they are the first

business of the kind

Core =al"e - Their business failed because

of poor choices

- 6assion and talent are whats

important

Core B"rpose - Applied was a industry

leader and so their motivation

was to continue to dominate

markets

- 4ecause they love doing

what they do

comm 210 - full notes 3

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