Question

Area 4: Management

Please answer the following questions in a succinct and concise manner. Each answer should yield about 3-5 sentences.

How would you explain the difference between Transactional and transformational leaders?

Describe the major functions of Managers.

Define SWOT analysis and explain how to apply it in a business situation or setting.

Area 5: Management Information Systems

Please answer the following questions in a succinct and concise manner. Each answer should yield about 3-5 sentences.

What are the two fundamental types of information systems? Explain how each is used within an organization.

What is a differentiation strategy, and how might a firm leverage an information system to implement this type of strategy?

A small and local brewery would like to expand it’s operations by moving to a new facility. Furthermore, they have identified that their prior strategy of price leadership has severely damaged their brand. Management has determined that a strategy which focuses on product quality will help the firm regain their brand equity, and put them on a a good foundation for future growth. Product quality in this instance begins by analyzing the manufacturing process of the beer, the distribution of the beer, as well as the market for the beer. As such, information is absolutely necessary to gather and analyze so that the firm can obtain a better understanding of their various production, distribution, and consumers within the market. Think of 3 fundamental information systems that this company should implement so that it can achieve it’s strategic goal of product quality.

Area 6: Finance

Please answer the following questions in a succinct and concise manner. Each answer should yield about 3-5 sentences.

Please develop a brief decision-making process to make a recommendation for evaluating a stock (publicly traded) – buy.

Now, develop a brief decision-making process to make a recommendation for evaluating a stock (publicly traded) - sell.

You are a fresh analyst hired by the CFO of a small to midsized company. She is aware of the fact you wrote a paper of Financial Statement analysis and wants to check your financial knowledge as well as common sense: There are two firms, A and B. A is a healthy, well -funded and profitable firm. B, on the other hand, is cash starved, facing potential (but not yet) bankruptcy. She has information about the following classes of ratios for both firms: Liquidity, Asset Management, Debt Management, Profitability and Market Value Ratios. She said to you,” I don’t have time to look at all these ratios, I would like you to rank order three classes of ratios in each case (One ranking for firm A and another ranking for firm B) based on the particular situation each firm is in (healthy vs. failing). I understand that the two sets could be quite different. I would like you to explain why you choose that particular rank ordering in each case. While ranking, you may simply indicate the class of ratios (for example, profitability), rather than a specific ratio within that class, such as Return on Assets (ROA).”

Answer 1

Answering the first 4 questions:

1. The differences between a transactional and transformational leader is that transactional leaders are more outcome oriented while transformational leaders are more strategy and relationship oriented. In transactional leadership, focus is on task supervision and schedule adherence. In transformational leadership, the focus is on influencing and aligning the resources towards the company’s objectives. Transformational leadership is more effective than transactional leadership.

2. The major functions of a manager are:

·       Must act as a link between management and employees

·       Must communicate the policies and business processes on behalf of the management to the employees

·       Must inform the employee grievances to the management

·       Monitor the processing of various business operations

3. SWOT Analysis is one of the most powerful strategic models used in both business and practical life. It is the acronym for Strengths, Weaknesses, Opportunities and Threats. For any kind of scenario in personal or professional life, SWOT Analysis can be used to understand the problem and consider the way out. The SWOT Analysis probes into both internal and external factors. Strengths and weaknesses form the internal factors while opportunities and threats form the external factors. This model helps in identifying the areas in which an individual is performing well. The implementation of this model also highlights the areas of improvement and opportunities.

4. Information system (IS) is a set of inter-combined and interconnected entities that collect, format, process and convert raw data into meaningful information. It is a generic term used for diverse kinds of information systems. There are various types of information system. DSS and MIS are the more critical and most frequently used information system by businesses.

·       DSS is Decision support system, which combines data with analytical models to facilitate decision-making process. GDSS is group decision support system. It is an interactive system that analyzes any unstructured problem and devises its solution. ESS or Executive support system facilitates managers to make any kind of structured and unstructured decisions.

·       Management information system (MIS) is a type of Information system. MIS is used in business to support and guide the management in making important strategic decisions. It supports the routine company operations, especially of the HRD.