Chapter 5
Managing the
Business
Enterprise
PowerPoint Presentation by Charlie Cook
Copyright © 2005 Prentice Hall, Inc.
All rights reserved.
“Some men see things as they are
and say why. I dream of things that
never were and say why not.”
—John F. Kennedy
Copyright © 2005 Prentice Hall, Inc. All rights reserved.
5–2
Key Topics
• Setting goals and formulating strategies
• The management process
• Types of managers by level and area
• The five basic management skills
• The development and importance of corporate
culture
Copyright © 2005 Prentice Hall, Inc. All rights reserved.
5–3
Effective Managers: An Invaluable
Resource for Business
• Managers are responsible for business
performance and effectiveness.
• Managers are accountable to all key
stakeholders.
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5–4
Setting Goals Is the Starting Point of
Effective Management
• Strategy: The broad
set of action plans to
achieve company
goals
 Corporate Strategy
 Business Strategy
 Functional Strategy
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5–5
Business Goals Are Performance
Targets
• The purposes of goal-setting:
 To provide direction for managers
 To help firms allocate resources
 To help define corporate culture
 To help managers assess
performance
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5–6
Effective Organizations Set Goals at
Many Different Levels
• Mission Statement: How a business will
achieve its fundamental purpose
 Long-term Goals
 Intermediate Goals
 Short-term Goals
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5–7
The Management Process
• Planning
 Strategic
 Tactical
 Operational
 Contingency
 Crisis
• Organizing
• Directing
• Controlling
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5–8
The Control Process
Establish Standards
Measure Performance
YES
Does measured
performance match
standards?
Continue Current
Activities
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NO
Adjust Performance
or Standards
5–9
5-9
Levels of Management
Top
Managers
Middle
Managers
First-Line
Managers
Top
Managers
Middle
Managers
First-Line
Managers
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Middle
Managers
First-Line
Managers
First-Line
Managers
5–10
Areas of Management
Human
Resources
Marketing
Financial
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Operations
Information
Other
5–11
Management Skills for the 21st Century
• Global Management
Skills
• Information and
Technology Skills
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5–12
Management Is Tightly Linked to
Corporate Culture
• Corporate Culture
 The shared experiences, stories, beliefs, and norms
that characterize an organization
Communicating
the Culture
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Managing
Change
5–13
Chapter Review
• Explain the importance of setting goals and
formulating strategies.
• Describe the management process.
• Identify types of managers by level and area.
• Describe the basic management skills.
• Explain the development and importance of
corporate culture.
Copyright © 2005 Prentice Hall, Inc. All rights reserved.
5–14