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CHAPTER 17EMERGING MANAGEMENT PRACTICES

SHORT ANSWER/PROBLEMS

1. Define business process reengineering (BPR.

ANS!ER" Business process reengineering is # $oo% $o #c&ie'e %#rge )uic* g#ins ineffec$i'eness or efficienc+ $&roug& re,esigning $&e e-ecu$ion of specific business func$ions.I$ is # e$&o, of e-#ining processes $o i,en$if+ #n, $&en e%iin#$e re,uce or rep%#cefunc$ions #n, processes $&#$ #,, %i$$%e cus$oer '#%ue $o pro,uc$s or ser'ices. BPR is,esigne, $o bring r#,ic#% c&#nges $o #n org#ni/#$ion0s oper#$ions. BPR is of$en #ssoci#$e,i$& ep%o+ee %#+offs ou$sourcing ini$i#$i'es #n, $ec&no%og+ #c)uisi$ion.

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3. !&+ &#s BPR us#ge incre#se,4

ANS!ER"1. T&e #,'#nceen$ of $ec&no%og+ &#s #,e possib%e e%ec$ronic rei$$#nce of

#ccoun$s p#+#b%e #n, $&e use of robo$ic e)uipen$ $o o'e #n, #sseb%ecoponen$s in # #nuf#c$uring f#ci%i$+. A,'#nceen$s in $ec&no%og+ &#'eipro'e, efficiencies $&roug&ou$ $&e supp%+ c&#in.

3. T&e pursui$ of incre#se, )u#%i$+ is necess#r+ bec#use g%ob#% cope$i$ion #%%osconsuers $o purc&#se pro,uc$s #n, ser'ices fro $&e &ig&es$ )u#%i$+ pro'i,ers in$&e or%,. BPR is # usefu% $oo% for incre#sing )u#%i$+ bec#use i$ focuses #$$en$ion

on processes #ssoci#$e, i$& poor )u#%i$+ #n, in,ic#$es #+s in &ic& )u#%i$+ c#n be ipro'e, b+ rep%#cing c&#nging or e%iin#$ing $&ose processes.

5. BPR us#ge is incre#sing bec#use of $&e incre#se in price cope$i$ion c#use, b+g%ob#%i/#$ion. To successfu%%+ cope$e on $&e b#sis of price firs us$ i,en$if+#+s $o becoe ore efficien$ #n, $&us re,uce cos$s.

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5. !&#$ is ,onsi/ing #n, &o is i$ #ccop%is&e,4

ANS!ER" Donsi/ing is #n+ #n#geen$ #c$ion $&#$ re,uces ep%o+en$ uponres$ruc$uring oper#$ions in response $o cope$i$i'e pressures. E'en$s $+pic#% of,onsi/ing #re re,uc$ion of $&e or*force res$ruc$uring of 6obs #n, processes #n,re,uc$ion or e%iin#$ion of noncore businesses.

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. To &#$ ,oes or*force ,i'ersi$+ refer4

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ANS!ER" I$ refers $o $&e f#c$ $&#$ cop#nies of$en fin, $&#$ $&eir ep%o+ees &#'e'er+ ,i'erse b#c*groun,s suc& #s re%igion r#ce '#%ues or* &#bi$s cu%$ures po%i$ic#%i,eo%ogies #n, e,uc#$ion %e'e%s.

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8. !&#$ #re en$erprise resource p%#nning s+s$es (ERPs4

ANS!ER" T&e+ #re p#c*#ge, sof$#re progr#s $&#$ #%%o cop#nies $o"(1 #u$o#$e #n, in$egr#$e $&e #6ori$+ of $&eir business processes (3 s&#re coon ,#$##n, pr#c$ices #cross $&e en$ire en$erprise #n, (5 pro,uce #n, #ssess infor#$ion in # re#%9$ie en'ironen$. ERP sof$#re inc%u,es br#n, n#es suc& #s SAP R:5 Peop%eSof$ #n,B##n.

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;. Define # s$r#$egic #%%i#nce.

ANS!ER" I$ is #n in$erorg#ni/#$ion#% #greeen$ $&#$ goes be+on, nor#%cus$oer:supp%ier #rr#ngeen$s in'o%'ing $o or ore firs i$& cop%ien$#r+ corecope$encies $o 6oin$%+ con$ribu$e $o $&e supp%+ c&#in.

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7. !&#$ fors c#n s$r#$egic #%%i#nces $#*e4

ANS!ER" S$r#$egic #%%i#nces c#n $#*e $&e fors of 6oin$ 'en$ures e)ui$+ in'es$en$%icensing 6oin$ R=D #rr#ngeen$s $ec&no%og+ s#ps #n, e-c%usi'e bu+er:se%%er

#greeen$s.

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>. !&#$ is open9boo* #n#geen$4

ANS!ER" I$ is # p&i%osop&+ #bou$ incre#sing # fir0s perfor#nce b+ in'o%'ing #%%or*ers #n, ensuring $&#$ #%% or*ers &#'e #ccess $o oper#$ion#% #n, fin#nci#% infor#$ionnecess#r+ $o #c&ie'e perfor#nce ipro'een$s.

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?. !&#$ #re $&e princip%es of open9boo* #n#geen$4

ANS!ER"1. Turn $&e #n#geen$ of # business in$o # g#e $&#$ ep%o+ees c#n in.3. @pen $&e boo*s #n, s&#re fin#nci#% #n, oper#$ing infor#$ion i$& ep%o+ees.5. Te#c& $&e ep%o+ees $o un,ers$#n, $&e cop#n+0s fin#nci#% s$#$een$s.. S&o ep%o+ees &o $&eir or* inf%uences fin#nci#% resu%$s.8. in* nonfin#nci#% e#sures $o fin#nci#% resu%$s.;. T#rge$ priori$+ #re#s #n, epoer ep%o+ees $o #*e ipro'een$s.7. Re'ie resu%$s $oge$&er #n, *eep ep%o+ees #ccoun$#b%e.>. Pos$ resu%$s #n, ce%ebr#$e successes.?. Dis$ribu$e bonus ##r,s b#se, on ep%o+ee con$ribu$ions $o fin#nci#% ou$coes.1. S&#re $&e oners&ip of $&e cop#n+ i$& ep%o+ees (i.e. s$oc* op$ions.

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1. Ho s&ou%, ep%o+ees be o$i'#$e, so open9boo* #n#geen$ i%% succee,4

ANS!ER" T&e ob'ious #+ for upper #n#geen$ $o o$i'#$e or*ers is $o %in*$&eir copens#$ion $o incre#ses in profi$s fro $&e effec$i'e use of $&e fin#nci#% #n,oper#$ing infor#$ion pro'i,e, $o $&e.

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11. !&#$ #re $&e c&#r#c$eris$ics of firs bes$9sui$e, $o open9boo* #n#geen$4

ANS!ER" C&#r#c$eris$ics of bes$9sui$e, firs #re s#%% si/e ,ecen$r#%i/e,#n#geen$ # &is$or+ of ep%o+ee epoeren$ #n, $&e presence of $rus$ be$een

ep%o+ees #n, #n#gers.

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13. Define #n en'ironen$#% #n#geen$ s+s$e (EMS.

ANS!ER" EMS is # s+s$e $&#$ #ccoun$s for bo$& en'ironen$#% cos$s #n, $&e ip#c$of en'ironen$#% issues in e'er+ #spec$ of oper#$ions. Accoun$#n$s #re incre#sing%+concerne, i$& e#suring business perfor#nce i$& reg#r, $o en'ironen$#% issues and#n#geen$ of en'ironen$#% cos$. In $&e fu$ure in'es$ors #re %i*e%+ $o e'#%u#$e #cop#n+0s en'ironen$#% $r#c* recor, #%ong i$& i$s fin#nci#% recor, &en #*ingfin#nci#% ,ecisions. Pri#r+ en'ironen$#% issues #re energ+ consup$ion #n, po%%u$ion.

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15. !&#$ #re $&e $&ree generic s$r#$egies for ,e#%ing i$& en'ironen$#% effec$s of oper#$ions4

ANS!ER"1.  End-of-pipe strategies. !i$& $&is #ppro#c& #n#gers pro,uce $&e #s$e or

 po%%u$#n$ #n, $&en fin, # #+ $o c%e#n i$ up.3.  Process improvements. T&is #ppro#c& in'o%'es c&#nges $o rec+c%e #s$es

in$ern#%%+ re,uce pro,uc$ion of #s$e or #,op$ pro,uc$ion processes $&#$ gener#$eno #s$e.

5.  Pollution prevention. T&is #ppro#c& in'o%'es e%iin#$ing pro,uc$ion of po%%u$#n$s.

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1. !&#$ is ,#$# ining #n, &o is i$ use,4

ANS!ER" D#$# ining uses s$#$is$ic#% $ec&ni)ues #n, is usefu% in unco'ering )u#%i$+ prob%es s$u,+ing cus$oer re$en$ion ,e$erining &ic& proo$ions gener#$e $&egre#$es$ s#%es ip#c$ #n, i,en$if+ing cos$ ,ri'ers.

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