Ch10. Final Comprehensive Review — All Subjects at a Glance

Exam Structure

Part 1 (Multiple Choice):
Principles of Business Management
Principles of Economics
Business Information Systems (or elective)

Part 2 (Essay):
Advanced specialization in chosen track
Consulting domains: Operations, Marketing, Finance, HR, and Organizational Behavior

Passing Standards:
Part 1: minimum 40 points per subject, average of 60 points
Part 2: minimum 60 points per subject

Management Theory Comparison

┌─────────────────────┬──────────────────────┬──────────────────────────┐
│ Dimension           │ Scientific Management│ Human Relations          │
├─────────────────────┼──────────────────────┼──────────────────────────┤
│ Founder             │ Frederick W. Taylor  │ Elton Mayo (Hawthorne)   │
│ Focus               │ Productivity, efficiency│ Human and social factors│
│ Motivation model    │ Financial incentives │ Group dynamics, belonging │
│ Weakness            │ Ignores human needs  │ Downplays productivity   │
└─────────────────────┴──────────────────────┴──────────────────────────┘

Core Theory Quick Reference

Marketing:    STP → 4Ps (Product · Price · Place · Promotion)
Finance:      NPV > 0 = accept; ROE = Net Income / Equity
HR:           Maslow (5 levels); Herzberg (hygiene vs. motivators)
Operations:   EOQ; JIT; Six Sigma (3.4 DPMO)
Org Design:   Functional · Divisional · Matrix · Team-based
Strategy:     SWOT; BCG Matrix; Porter's Five Forces

Ten Most Commonly Missed Concepts

① STP sequence = Segmentation → Targeting → Positioning
② 4Ps = Product · Price · Place · Promotion
③ Maslow: Safety comes before Social (not the other way around)
④ Herzberg: Salary is a hygiene factor — not a motivator
⑤ NPV over IRR for mutually exclusive investments
⑥ ROE = Net Income / Equity (not assets)
⑦ Current Ratio vs. Quick Ratio (inventory included vs. excluded)
⑧ JIT = minimize inventory (vulnerable to supply disruptions)
⑨ Six Sigma = 3.4 defects per million opportunities
⑩ Transformational leadership = vision + intellectual stimulation + individual consideration

Key Concept Cards

Five Management Consulting Domains ★★★★★ : Operations, Marketing, Finance, HR, and Organizational Behavior. Memory hook: know all five — exams pull from any of them

BCG Matrix — Four Quadrants ★★★★★ : Stars (high share, high growth) · Question Marks (low share, high growth) · Cash Cows (high share, low growth) · Dogs (low share, low growth). Memory hook: plot growth rate vs. market share

Porter’s Five Forces ★★★★☆ : Competitive rivalry · Threat of new entrants · Threat of substitutes · Buyer bargaining power · Supplier bargaining power. Memory hook: five external forces shaping industry profitability

Final Practice Quiz

Q. What is the strategic significance of a “Cash Cow” business unit in the BCG Matrix?

High market share in a low-growth market. Generates substantial cash with minimal reinvestment needs. Cash flows from the Cash Cow fund growth investments in Star and Question Mark units. The management strategy is harvest — extract maximum cash before the market fully matures. The strategic challenge: secure the next generation of Stars before this unit enters decline.

Q. What should a management consultant do first when developing a marketing strategy for an SMB?

Start with an environmental analysis: SWOT — map the company’s internal strengths and weaknesses against external market opportunities and threats. Then apply STP: SMBs lack the resources to compete across an entire market, so a concentrated (niche) strategy is usually the right starting point. Then build the 4Ps around the chosen position. Given resource constraints, disciplined focus — choosing what NOT to pursue — is as important as any positive decision.