Chapter Assessment - Principles of Management - ثالث ثانوي

210 CHAPTER FOUR Assessment CHAPTER CONCEPTS Organizational innovation is the successful implementation of creative ideas in organizations. Innovation is not a single event, but rather a process, which can be broken down into several stages: identifying a problem. finding a solution, testing the prototype, and implementing the result There are four key innovation types product innovation, process Inno- vation, position innovation, and paradigm innovation. These types are closely linked, and an innovation could fall into several categories. Innovation is a necessity for a business to thrive and remain profitable over time. It salves business problems, it increases productivity, it cre- ates a competitive advantage. it reduces cost, and increases revenue. ▸ Managers can adopt a formal policy of Innovation by adopting man- agement prinoples, focussing on key areas such as strategic direction culture, and the realization of value. An innovative culture can be achieved by encouraging a creative work environment. ▸ A supply chain is all of the businesses involved from the time raw materials are obtained until finished products are sold and delivered. Supply chain management is the activity of managing the entire pro- cess around the functioning of a supply chain . Effective supply chain management can be the difference between the success or failure of a business. Supply chain management also relates to the distribution and supply of services, which includes energy, digital services, and telecommunications Logistics is managing the acquisi tion, movement, and storage of supplies, materials, and finished prod- ucts in a business Crisis management is the process of dealing with crises before, during, and after the event to minimize the impact on the organization. Not every disaster can be averted, but planning can be done in advance by creating contingency plans. Everyone in the organization should have a clear idea of what is expected from them. Lessons should be leamed after the event with new measures put in place in light of the outcome of a formal review. Chapter Challenges of Contemporary Imagement

DEVELOP YOUR BUSINESS LANGUAGE Match the terms listed with the definitions. Term 1. Contingency plan 2. Creative Work environment 3. Crisis management 4. Just-in-time 5. Logistics 6. Organizational crisis 7. Organizational innovation 8. Paradigm innovation 9. Position Innovation 10. Process innovation 11. Product Innovation 12. Supply chain 13. Supply chain management Your Choice Definition a. An approach to logistics in which goods arrive when needed for production, use, or sale rather than sitting in storage b. An important component of marketing management that shifts the specific customer base or segment that a product or service is targeted at to provide an advantage. c. A development that creates value by initiating a (undamen tai shift in perspective. d. A workplace culture in which workers perceive that new ideas are welcomed, valued, and encouraged. e. All of the businesses involved from the time raw materials are obtained until finished products are sold and delivered. f. A new iteration of a product or service that creates a clear and tangible improvement on the existing offering and presents a competitive advantage: g. An event or occurrence that has a dramatic or potentially disastrous impact on an organization's financial standing, reputation, survival, or welfare of its stakeholders, and its environment h. The process of dealing with crises before, during and after the event to minimize the impact on the organization and its environment. i. The overarching activity of managing the entire process around the functioning of a supply chain. Managing the acquisition, movement, and storage of supplies, materiais, and finished products in a business. k. The development of new or improved processes that create some form of advantage for the organization. 1. The successful implementation of creative ideas in organizations. m. A set of procedures to follow in the event of an emergency. Chapter & Assessment 211

الكلس 212 REVIEW BUSINESS MANAGEMENT CONCEPTS Determine the best answer 13. Which of the following is not a benefit of innovation? a. Solves business problems b. Decreases productivity Reduces costs d. Creates competitive advantage 14. An organizational crisis can affect. a. Only staff within the organization. b. Only people outside of the organization. c. People both inside and outside of the organization d Only the leadership team who make the key decisions, 15. An approach to logistics in which goods arrive only when needed for production, use, or sale rather than sitting in storage is known as a cutting it fine b. just-in-time c. too little, too late J. speed processing APPLY WHAT YOU KNOW Answer the following questions. 16. Suggest three examples of an organizational crisis that could happen and describe which type of category each example belongs to 17 Describe an example of a supply chain based on experiences from your own life such as products or services that you or your household have used! Chapter Challenges of Contemporary langement

18. Describe some of the ways in which an organization can encourage a creative work environment. MAKE ACADEMIC CONNECTIONS Complete the following activities. 19. Teamwork As a team, brainstorm ideas for a new innovative busi- ness Orice you have selected an idea to take forward, describe which of the 4 Ps of innovation it is an example of (see Figure 4-2) Next ex- plain the key benefits that this innovation would provide a business, as outlined in Figure 4-3 Use the box below to summarize your answer.. 20. Technology Look back at Lesson 4.1 on Innovation and Lesson 4.2 on supply chain management, and think of ways in which technology could be utilized to improve the delivery of goods and services to con- sumers. Summarize your ideas in the box below. Chapter 4 Assessment 213

21. Planning Imagine that you are a manager who has recently been marle responsible for a solar energy farm. The farm is located in an area of the desert that occasionally suffers from severe sandstorms. You have been advised by an industry colleague that these sand- storms might be bowerful enough to damage the solar panels and other equipment Another colleague dismisses this idea and says there is no need to worry Do you think it is necessary to introduce a crisis management strategy? If so, describe the actions that you would take In the box below. CASE IN POINT The Challenges of Climbing the Stack This chapter has addressed the need for organizations to innovate, in or- der to remain competitive. Increase productivity, solve business problems, reduce costs, and increase revenue. However, why do some companies with seemingly endless resources and brainpower fall when they try to Innovate? One theory is that it's because of the stack fallacy-the tenden- cy of successful companies to overvalue what they know in one area and misjudge what they need to know so as to innovate in another. Imagine technology as a layer cake of capabilities. These capabilities stack on top of each other until they ultimately reach the end user: Consider a popular app used on your laptop, for instance. This app is the top of a technology stack supported by the layers below it-from the operating system, to the server, to the microprocessor, to the electricity powering the device. Just because a company is successful in one layer, say, microprocessors, doesn't mean it can jump up to a higher level, such as the operating system, and have the same success. When a dominant search engine tried to move up to social networking, the result was a failed platform. Similarly, a computer company saw its revenues shrink as it tried to move up from hardware to services Going down the stack, however, tends to yield positive results. By moving down the stack by creating its own data farms and servers, the 214 Chapter 4 Challenges of Contemporary Nyamagument

اسعليم search engine solidified the company's dominance in its existing sphere of Influence Why is climbing the technology stack so much harder than descending it? Companies don't fully understand what customers on the level above theirs actually want. However, because companies often buy products and services at the level below their own, they understand what customers want out of that lower layer of technology Think Critically t. Why is it easier to descend the 'stack' rather than ascend it? 2 Research examples of Saudi companies that have successfully jumped to a higher level in the 'stack.. Why do you think they have succeeded where others have failed? Chagur & Ass sweat 215