- develop vision

- external environment analysis (assess threats and opportunities)

- internal envirnoment analysis (assess strengths and weaknesses)

- develop a mission

- goal formulation

- strategy formulation

- implementation

- feedback and control

What is the difference between a mission and a vision statement?

vision: fundamental aspirations and purpose that appeal to its members hearts and mind --> ie more fluffy

mission: an organization's current purpose or reason for existing --> ie more specfic 

- what is our business?

- who is our customer?

- what is the value to the customer?

- what will and should our business be?

- history

- owner and management preferences

- market envirnoment

- available resources

- distinctive competencies

What are the four forces of the external environment analysis?

1 economic (current interest rates and trends, local area income and unemployment levels)

2 natural (like floods in queensland)

3 polictical (awards, vet sugeons act, local gov regulations, equine dentists)

4 technology (trends or developments in vet specific areas like medicine, surgery and pharm, like equipment, internet)

5  social (local population data compared to aus. averages, assumptions on pet ownership for SA components, urbanization, and other issues)

- finance

- marketing

- operations

- HR

What is environment alignment?

and what is the goal of environment alignment?

First using the assessment of external env (the opportunities and threats) and the internal env (the strengths and weaknesses) then aligning these elements in the formulation of mission and strategic goals.

The end goal of the oragnization is to be strong in necessary areas to ensure they can make the most of the opprotunities in the external env, minimize threats and overcome or negate the significance of their weakness in order to achieve this strategy.

- threat of new entrants (ie 1800petmeds or the vet to population density)

- power of buyers (small number hold more power)

- power of suppliers (can drive up the overhead costs)

- threat of substitutes (internet diagnosing..)

What are the internal environment "values"?

What's a good way to unify the internal env?

- "the way we do things around here"

- developing a mission and vision statement can help unify the internal env's values

What are the generic objectives of a business? (4)

What should these objectives be translated into in order to achieve them?

1. maintain market share

2. build market share

3. short term cash flow

4. sale

translate into SMART goals

(specific, measurable, action-oriented, realistic, and time- constrained)

1. hold (preserve market share)

2. build (increase market share)

3. harvest (increase short term cash flow)

4. divest (sell the business)

What are three options for a growth strategy?

explain each

1. intensive growth

-through market penetration (current products in current markets)

-market development (current products to new markets)

-product development (new products to current)

2. integrative growth

-vertical intergration

-horizontal integration

3. diversification growth

-new products to new markets

What is a market penetration strategy?

give example.

an intensive growth strategy: current products to current market

ex. get the clients to visit more often, attract clients from competitors, develop ways to attract clients who do not normally bring their animal to the vet

What is a product development strategy?

give example.

an intensive growth strategy: new products to current market

ex. boarding, grooming, home visits, packaging/bundling services

what is a market development strategy?

give example

intensive growth strategy of current products to new markets

ex. looking to different segments within the market, broadening geographic area or target market, or starting a branch practice in another location

What is diversification growth?

give example

new products to new market

developing avian or exotic animal practice

What is horizontal integration?

give example.

an integrative growth strategy

ex. purchasing a competitor vet clinic

What are the 3 generic competitive strategies available?

explain.

Which is the most likely in a small business like a vet practice?

1. cost leadership (walmart)

2. differentiation (standardized, high quality)

3. focus- target specific geographic segment

-focus, "we're here and offer good quality services"

(1 and 2 are common for corporate businesses)

--> not all industries can support all 3

- introduction

-growth (high profit)

- maturity (usually highest profit)

- decline

- cat ownership on the decline

-dog population stable

- aus has the highest rates of pet ownership

- correlation with households with children

possible exam ?:

example of a clinic blah blah

may ask (explain what hes asking):

1. what is the vision and mission statement for this example?

2. what are the generic objectives?

3. What are the generic strategies?

4. create SMART goals

1. vision- fluffy statement

mission-specific statement linked to your vision statement

2. generic objectives are hold (stay the same), build (implement growth strategies), cash flow (or harvest) sale (give up and sell your business)

3. cost leadership (like walmart), differentiation (standardized, high quality), focus (most likely for vets, target certain market)

the group performance equation suggests that the successful implementation of strategy is a function of individual processes and organizational processes.

what are the individual processes and organization processes dependent on?

organizational processes:

- finance, marketing, operations, having the right number of skilled and motivated people at the right time and place

individual process:

- capacity (ability and skills of the ind), opprotunity (ind can utilize their skills), willingness (motivation)

- increasing numbers (entering and leaving)

- increasing female

- more in city areas

-males are still making more on average ( >:| )

- overall mean salary has increased (but decreased compared to other industry salaries)

-more part-time vets

- delivery of services efficieny will most likely drive lower numbers of vets and higher number of support staff (like nurses)

- decreasing rural mixed practices

What is the revenue equation?

- industry sales (number of households/businesses owning animals that visit vets)

- market share (% of market attracted to your business)

- average price per visit

- average number of client visits

eg 100 households in aus

10% market share

charged clients $200 per year (or 2 visits for $100)

revenue would be: 100x.10x200=$2000

what is sole proprietorship?

- business is owned by one person 

-simple and less regulated (why its so common)

-all profits belong to sole prop.

- business income=personal income (and taxed as such)

- unlimited liability (personal assets and business assets may be seized if creditors are required)

-life is limited by owner's lifespan

-amount of equity that can be raised is limited by personal wealth of the owner

- transfer of owner requires the sale of the entire business

- sole prop. but with 2+ people

- simple and inexpensive to form

- all profits (and losses) shared as described in partnership agreement

- partnership income is taxed as personal income

- unlimited liability (unless agreement says otherwise)

- life is limited by partners (sale or death)

- amount of equity that can be raised is limited by personal wealth of partners

- unlimited liability for business debts on the part of owners

- limited life of the business

- difficulty transferring ownership

- grwoth is seriously limited by inability to raise cash for investment

- legal person distinct from its owners

- requires selecting a name, goverance of internal management through replaceable rules or a constitution, written consent from its directors, lodgement of application with ASIC

- must have at least one shareholder and one director

- shareholders have limited liability

- profits taxed at company rate

- continous existence

-potential for raising capital and therefore growth is much greater

public -can sell shares to public

- must be at least 3 directors (aussie res)

-have word ltd after name

prop.- most small/med sized businesses are this

- limited to no more than 50 non employee shareholders

- do not need to appoint an auditor

- not able to sell shares to the public

- must have one director

- abbreviation pty ltd

- an obligation imposed on a person (trustee) to hold property or income for the benefit of others (beneficiaries of the trust)

- many types, discretionary trust is most commonly used to distribute income in a tax effective manner

assets= liabilities + shareholders' equity

assests: what business owns

liabilities: are what business owes

equity: the difference between above

--> if all assets were sold and debts paid, the remaining value belongs to the owners or shareholders

1. intangibility (eg incision, o can see)

2. perishbility (eg missed app, can be overcome with scheduling)

3. inseparability (link person with service, they can't distinguished from one another)

4 heterogeneity (service would be variable, depending on employee, day, etc)

- physical resources

- processes

- people

What 3 components make up a service?

- facilitating goods or physical items (eg diagnostic equipment)

- sensual benefits or explicit services ( eg clean, pleasent noises)

- psychological benefits or implicit services  (eg reassurance when worried)

- service concept (directed towards satisfying the real priorities of the customer)

- customer orientated front line people who are responsive, attentive, and willing to help

- customer friendly systems to back up the service people for the convenience of the customer ("i cant help you, but i can....")

- kind and gentle

- respectful and informative

- a provider of high quality care

- facilities and equipment (physical resources) --> AVMA accredited..

- processes (consists of policies, protocols and procedures)

- well-designed jobs (people)

(gets more and more specific)

policy- animals at risk are to have a pre-anesthetic blood screen

protocol - pre-anesthetic blood screen strongly rec'ed to clients who have animals with existing disease and those over 7 years

procedure- provide client with information sheet, obtain informed consent, take blood, etc.

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- improved client satisfaction and loyalty (b/c of customer focus)

- improved patient outcome

- cont. improvement becomes part of culture and leads to competitive advantage

- team building and staff satisfaction

- reduced costs through greater efficiency and increased profits

- reduce litigation

- cost

- resistance and resentment from group processes

- existing workplace culture and politics

- requires strong leadership and appropriate structure and communications

- strong individualism and controlling personalities

- most people resist change

- adverse outcomes

- protocols may reduce flexibilty

What are the 5 determinants of service quality?

(list in order of importance)

1. reliability (consistent and dependable)

2. responsiveness (timeliness and willness to assist)

3. assurance (competence, courtesy, security, and reputable)

4. empathy (ind. care, sympathy, patience)

5. tangibles (physical evidence of quality, like a nice looking wound healing)

- perceptions of benefits (physical items, implicit and explicit) relative to costs ($ and time, emotional/social costs)

1. quality

2. price

3. convenience

1. perception=expectations  --> client satisfaction

2. perception < expectations --> client dissatifcation

3. perception > expectations --> enhanced satisfaction or delight

policy name

date

by

authorized by

date to be reviewed

policy purpose

policy (general)

procedure (more specific)

(responsibility:)

1. humanists (quality impt, price not)

2. conscientious (convenience impt, price not)

3. pleasers (price impt)

4. traditional (price very imp, will switch based on this, only in for emergency)

1. perception

2. support

3. convenience

1. expectations

2. competitors

- influencers (children of a family, influence parents what vet to visit and when)

- initiators (initiate the need/desire/choice to go to the vet

- deciders (choose which vet/when)

- purchasers (those who actually PAY for the service)

- users (the person delegated the responsibilty for caring for the pet )

What is the decision making process in buying?

- recognition of need

- identification of alternatives

- evaluation of alternatives

- purchase decision

- post purchase behavior

- product- considers what vet services and products will be offered

- price- based upon costs, customers, or competitors

- place- refers to to how products are distributed to the customers

- promotion- refers to how brand image and awareness is created

can also consider, process, people, and physical appearance

The marketing mix represents who's perspective?

and how would you describe a more customer based perspective?

- product to customer solution

- price to customer cost

- place to customer convenience

- promotion to communication with customers

What are the 3 different pricing?

and what are fixed and variable costs?

- cost based pricing (based on total cost plus desired profit. prices based on variable costs only)

- consumer based pricing (based on consumer expectations)

- competitor based pricing (based on competitor prices)

fixed- label, printer ink

variable- labor time stocktaking and ordering and shelf space

push strategies- generally directed at intermediaries (pharm co promoting their products to wholesalers and vets. typically involves personal selling and sales promotion)

pull strategies- generally directed toward the end user (pharm co to pet owners, involves advertising and sales promotions)

What is the psychological contract?

What are the different types?

- unwritten beliefs about what the individual is entitled to receive and is obliged to offer the employer in return

transactional: short term, close ended, economic exchanges. perceived obligations do not change and encompass a well defined set of duties

relational: long term, socio-emotional and economic exchanges. perceived obligations may change and encompass a broad range of subjective obligations

(foster organizational commitment and citizenship)

preparation (can i afford, do i need, etc)

advertising (short, id, link to vision/mission, target audience etc)

interviewing (review, contact ref, schedule, etc)

conduct interview (nonverbal communication, tour, maybe working, etc)

final selection (opinion of staff, 2nd interview, etc.)

- absenteeism and turnover

- lack of attention and mistakes

- resistance to new ideas

-negative attitudes and poor staff relations

- low self esteem and ineffectual teamwork

- diminished job satification and commitment

motivation to complete a task is a combination of what?

- direction - where an individual chooses to focus their efforts

-intensity how hard an individual chooses to work on a task

- persistence- how long an individual chooses to pursue a task

- direction -> need-value-motive theories eg maslows hierarchy of needs

-intensity -> cognitive choice theories eg expectancy theory, attribution theory

- persistance -> self regulation eg goal setting theory, control theory

a theory associated with the direction element of motivation.

comprised of

acquire- (proactive)seek and control objects and experience 

bond- (proactive)form social relationships with others

learn- (proactive) satisfy curiosity, understand ourselves, and envirnoment

defend- (reactive) protect ourselves physically and socially

drives are universal, complete, and independent

related to the intensity element of motivation

-based on the idea that work effort is directed towards behaviors that people expect will achieve desired outcomes

ind's effort level depends on 3 factors:

-perceieved probability that effort will result in successful performance (E to P expectancy)

- perceived probability that performance will result in outcomes of interest (P to O expectancy)

- anticipated satifaction of dissatifaction with an outcome (valence)

Expectancy thoery can be applied to increase motivation by: ?

What is a limitation of expectancy theory?

- increasing the belief that effort leads to performance

- increasing the belief that performance leads to rewards

- offering valued rewards

- limitation: tends to downplay the importance of emotions as a driver for behavior

- related to the intensity element of motivation

- deciding whether an observed behaviour or event is caused largely by internal (personal) factors or external (situational) factors

3 factors are considered when making this decision:

- consistency of behavior with past behaviors in similar situations

- distinctiveness of behavior compared to that in other settings

- consensus of behavior with behavior of others in similar situations

What are some attributions errors associated with attribution theory?

And how can you ensure accuracy with attributions?

- fundamental attribution error- tendency to see the person, rather than the situation, as the main cause of the behavior

-self serving bias- tendency to attribute our successes to internal factors and our failures to external factors

-> thoroughly consider situational factors, accurately evaluate performance, and clearly communicate reasons for management decisions

- linking goals with money may not achieve desired results

- efforts may be overly focused on narrow subset of measurable performance indicators

- goal setting may interfere with process of learning new, complex jobs

explicitly incorporates feedback into motivation by stating that individuals consistently evaluate their performance against a referent standard and make changes based on the outcome of this analysis

- keep their goals and increase their level of effort

- lower their goals and continue at the same level of effort

- reject the goal

- increase the attractiveness to the individual of goals valued by organization

- improve perceptions that goals can be attained

- influence the attribution made for outcomes

Successful organizational reward systems answer what 3 questions?

- what needs do ind. bring to organizations and how does influence their goals (need-value-motive theories)

- how can organizations structure tasks and rewards in a way that encourages ind. to exert effort towards organizational goals? (cognitive choice theories)

- How can organizations ensure that individual effort is long lasting? (self regulation theories)

What is distributive justice?

- belief that distribution of workplace benefits is fair

- can be based on equality, need, or equity

-equity is most common (ind compare the ratio of their own inputs and rewards in comparsion of others, etc)

What is procedural justice?

what is influenced by?

- belief that organizational decision making follows a fair set of rules and that individuals are personally treated fairly in this process (judged to be fair when they eliminate bias, establish consistent rules for reward allocation, based on accurate info, allow ind a voice in the decision process, treat the ind with respect, and provide an explanation of decision made)

- influenced by both structural rules (policies and practices that decision maker should follow) and social rules (how well decision maker treats ind in the process)

- financial rewards are a fundamental motivator of performance

- membership/seniority, job status, competencies, task performance (ind, team, of organization)

1. membership/seniority, paid time off, Ad: may attract applicants, minimize stress of insecurity, reduces turnover Dis: doesnt directly motivate performance, may discourage poor performers from leaving

2. job status, promotion based pay increase, Ad: tired to maintain equity, min. pay discrimination, motivates ind to compete promotion Dis: encourages hierarchy, reinforces status differences, motivates job competition

3. competencies, skill based pay, ad: improves flexibility, tends to improve quality, Dis: subjective measurement of competencies, can be expensive

4. task performance, bonuses, Ad: motivates task performance, attracts performance-oriented applicants, create ownership culture, Dis: may weaken job content motivation, may discourage creativity

- What is our business?

- Who is your customer?

- What is value to the customer?

- What will and should our business be?

- history

- owner and management preferences

- market envirnoment

- available resources

-distinctive competencies

normative- search for correct principles of conduct. can be understood though ethical models and perspectives (utilitarian, moral rights, justice ethical models, stakeholder approach, ethical matrix)

official- AVA

administrative- code of ethics, legal