GLORIA NZENZE LUYEYE 04/03/2024

EXAM No.2 ANSWERS

Chapter 1 – Managerial and entrepreneurial logics

EXERCISE 1: Business creation

1. Comment on the picture of business creation in France.

Business creation in France in 2013 is generally down compared to the year

former. We note that although it is the most represented status, self-employment is in
decrease (-10.6%) while traditional companies increase (8.6%). This decline
overall is explained by the economic context. People do not have confidence in the future
so they hesitate to undertake.

2. In your opinion, what may be the contextual or personal factors favoring business
creation ?

Contextual factors:

 Stable economic situation

 Favorable tax regime
 Market ready to welcome new entrants

Personal factors:

 Be motivated to earn more money

 Be your own boss
 Create your own job
 Love of risk, challenges and challenges
 Live from your passion

3. What does business creation bring to the entire community?

Business creation brings the community tax revenue, social contributions,

employment, training and the dynamism of the local and national economic fabric.

EXERCISE 2: What does entrepreneurship mean?

To undertake is to make a bet on the future. We can return to Schumpeter's vision which
starts from the principle that the entrepreneur embodies the challenge of innovation.
Entrepreneurship is:
  Produce new products;
 Develop new production methods;
 Introduce new forms of organization;
 Conquer new markets.

1. What is an entrepreneurial approach?

This approach is a complex process of opportunity detection and exploitation. This

approach always involves the ability to identify, exploit and benefit from
opportunities that can arise in a market and exploit them to create value.

2. Explain the title of document 1:

“The future cannot be predicted, it is prepared”.

Entrepreneurship cannot be improvised, all creation is risk-taking. In order to limit these

risks, it is necessary to carry out a prospective study of its market and its environment to
avoid hazards. These methods allow us to anticipate the future.

3. What are the necessary conditions for the success of a business project?

For a business project to succeed, it is necessary to know whether the future entrepreneur is capable
of
bear all tasks and responsibilities, a market study must be carried out,
the development of financial forecasts to ensure the profitability of the project and choose a
legal status consistent with the activity.

4. What are the challenges of entrepreneurial logic?

The issues are:

 Anticipation,
 Innovation,
 Implementation of a coherent entrepreneurial project articulating constraints,
 skills and resources.

EXERCISE 3: The virtues of work

1. According to the two quotes above, what are the requirements of the job?

The conditions are:

 Passion,
  Motivation.

2. Is work the best way to achieve personal goals?

Work is a means of achieving personal goals but not the only one. The work is
source of fulfillment, surpassing oneself and enrichment. The answer to this
question is subjective, it all depends on how the work is experienced, for some it is a
constraint for others a pleasure.

EXERCISE 4: “A former zero in the big leagues”

1. What was the initial need for the creation of the company?

Matthieu Nebra needed to find introductory computer courses, not finding them
not he creates them.

2. What developments has this company undergone? With what implications?

 Amateur site in 1999

 Creation of the company in 2007
 2 fundraisings for an amount of 2 million euros in 2012
 Name change, course proposal, certification and international launch

3. What do you think it means to have an entrepreneurial mindset?

 Embody the challenge of innovation

 Take risks
 Present a need for autonomy and initiative
 Demonstrate an ability to train and convince

EXERCISE 5: Entrepreneurship according to Shumpeter

1. Comment on the qualities one must have, according to Schumpeter, to be a good

entrepreneur.
The entrepreneur according to Schumpeter is the one who creates the need among consumers. He
has
an ability to take risks and bet on the future. It arouses the desire to change and
break with habits, it is a force of persuasion.
 2. Does the consumer have more power today over the entrepreneur?

The consumer today has a little more power over the entrepreneur. The advent
of ICT, easy and quick access to information and tough competition due to the
globalization means that the consumer is more able to dictate his desires, according to the needs and
trends that change very quickly.

EXERCISE 6: Management missions

1. What are the functions of management?

 Organize the work of teams

 Inform the teams (corporate culture, market state, objectives)
 Produce
 Regulate and manage conflicts
 Train
 To delegate
 Control
 Direct
Fayol had identified as functions:
 To expect
 Organize
 Budget
 To coordinate
 Control

2. Find with the document the different types of management.

Rensis Likert defined 4 types of management:

 Authoritarian style
 Paternalistic style
 Consultative style
 Participatory style

3. Why is the manager a one-man band?

The manager is a one-man band because his skills cover several professions. He must
combine initiative, methodology, ability to work in a team, autonomy…
EXERCISE 7: Profile of the intrapreneur

1. Remember what the notion of intrapreneurship means.

Intrapreneurship is the act of innovating within a company. The intrapreneur is the member
of an organization which, in agreement with it and while remaining an employee, has a viable project
that he can achieve within it.

2. What is the profile of the intrapreneur?

The profile of the intrapreneur is based on a double differentiation: it is different from

the entrepreneur and eating. The intrapreneur has a double skill, he is visionary and
operational, it is capable of mobilizing resources in the short term: team, budget, deadlines
and identify long-term market opportunities.

3. How is the intrapreneur not an entrepreneur in the classic sense in which we understand
it?

He is not a classic entrepreneur because he evolves within the secure structure of

the company. The intrapreneur will carry out an economically viable project, consistent with the
company strategy.

EXERCISE 8: From idea to realization

1. What is the most interesting path for the creator to follow?

The most interesting path is to find an idea for a new product, file the patent,
carry out a market study, launch on a market to be determined and choose your method of
distribution.

2. What are the growing markets?

 New markets because everything has to be done

 Neglected markets: innovate to revive them
 Exploded markets possibility of positioning yourself
 SYNTHESIS

Qualities: creativity, socket

Of risk, autonomy
voluntarism

Entrepreneur

Logic entrepreneurial:
Creation Or reprise business
intrapreneur: A manager
Who adapted
entrepreneurship has
the interior of a big
business

Functions: management ,socket

Of decision, direction,
organization, control

Manager

Logic managerial: ensure there

Sustainability And THE
development of the company,
Generate of profit
Chapter 2 – The purpose of the company

EXERCISE 1: The financial purpose of the company

1. Is the financial purpose the only purpose of a company?

The financial purpose is not the only one of the company.

The company also has:
 a social purpose: Satisfy the needs of its stakeholders (employees
 suppliers, customers, etc.);
 An economic purpose: creation of added value, sustainability of the company;
 A societal purpose: sustainable development, respect for the environment.

2. What does the fact that the customer is the pillar of the business imply?

According to Peter Drucker, the customer is the pillar of the business. This statement implies that the
The purpose of the company is to create and develop a clientele.
To succeed in profiting from its activity, a company must attract, satisfy and retain its customers.
clients. To achieve its objectives, the company must be open to its environment in order to
to capture market expectations and trends.

EXERCISE 2: From the logic of profit to that of responsibilities

1. What do a company’s societal values represent?

To put themselves back at the heart of civil society, after the crisis, companies had to develop
social and societal values. The societal values of a company represent their
contribution to sustainable development issues (taking into account economics,
social and environmental). Concretely, they result in actions such as:
job creation, training, development of solidarity, respect for the environment and
adopt ethical behavior in internal and external relationships.

2. What is the point of referring to ethics for a manager?

A profound change has taken place in the mentalities of those involved in the company.
Today's company has a social responsibility towards people and not just
the increase in profit.
For a manager, the interest in referring to ethics entails:
 An improvement in the company’s brand image;
 An increase in company performance;
 Provide a response to stakeholders;
 Enable its growth and sustainability.
 3. Do environmental values prevent profit?

Environmental values make it possible to:

 Limit the company's greenhouse gas emissions;
 Save resources such as paper and water;
 Limit energy consumption (electricity, heating);
 Favor sustainable premises;
 Sorting and recycling.
Environmental values can seem restrictive in the face of past laxity. They
can be synonymous with profit and differentiation. These values improve performance
commercial relations of companies, provide credibility in the face of its stakeholders. They
allow us to create wealth and limit the impact of the company on its environment.
They are therefore in no way an obstacle to profit.

EXERCISE 3: FranceTV will create a digital news channel

1. What is the purpose of FranceTV?

The purpose of France Télévision is the dissemination of knowledge and the development of social
ties.
Public service mission.

2. What means does it use to implement its public service mission?

3.
Public service meets three main principles:
 Continuity of public service;
 Equality in public service;
 Adaptability or mutability.
Its mission of disseminating knowledge and access to regional, national and
internationalization can now be done digitally, by creating an information chain
customizable and accessible via any digital medium (Smartphone, tablet).

EXERCISE 4: Four ambitions for PSA

1. What are the purposes of the PSA group?

 Ensure the technological advance and upscaling of brands

 Become a global group
 Be a reference in operational efficiency
 Ensure responsible development

2. How are these purposes implemented?

The purposes of the PSA group are implemented as follows:
o Ensure the technological advance and upscaling of brands
 PSA focuses on innovation, creativity, quality and cutting-edge technologies
 environmentally friendly.
o Become a global group
 PSA wants to adapt its offer to the different markets where it is present. His will responds
to
 the adage “Think global, act local” “Think globally, act locally” PSA is a group
 having an international dimension (40,000 employees outside the EU) it under no
circumstances wants to miss the
 market shares of emerging countries where demand for vehicles is growing. The group
 expands internationally to strengthen its brand image and be an indisputable player in
 these markets.
o Be a reference in operational efficiency
 PSA focuses on optimizing its resources and partnerships. The group aims
 the effectiveness and efficiency of its production factors. The expected results will be
 savings made (zero waste, shortened deadlines) allowing an improvement in
 profitability.
o Ensure responsible development
 This purpose is implemented thanks to PSA’s social and environmental responsibility.
 (PSA Peugeot foundation which supports solidarity transport initiatives, HR policy
 promoting the development and fulfillment of its employees).

3. What economic “dimension” does PSA want to achieve?

PSA wants to be part of an economic dimension of sustainable development. Despite its

expansionist ambitions in terms of the global market. PSA has set itself a line
of conduct reconciling the economic, social and environmental.

EXERCISE 5: What are the company’s objectives?

1. How to define the notion of objective?

The objective can be defined as the performance and results sought during management
from a company.

2. Show that the objectives are close to the purpose of the company.

The objective is the means to achieve and arrive at the end. The purpose is the reason for being
the organization what it was created for. The objectives are therefore undeniably close to
the purpose of the company. They are, in a concrete and operational way, the means to achieve this.

3. Do companies pursue a single objective?

The objectives are numerous and different depending on where you place yourself (vision of
shareholders,
employees, of the company). To satisfy its stakeholders, the company must reconcile them
even if they are of different and sometimes antagonistic natures.
 Profit and profitability objective
 Objective of contributing to the happiness of society
 Objective of good governance, ethics, equitable sharing of added value and
 recognition (employees)

EXERCISE 6: Caesars Palace, star of Las Vegas hotel-casinos, in bankruptcy

1. Why is Caesars Palace struggling?

Caesars Palace can no longer honor its debts ($28.2 billion). This issue
financial comes from heavy investments made by the hotel aimed at developing in situ
and internationally (Macau). The hotel was unable to find its customers and generate enough cash
flow
to finance its expansion and repay its creditors.

2. How can we measure our economic performance?

To measure its economic performance, we can calculate financial ratios such as:

 Cash flow
These calculations make it possible to monitor the evolution of cash flow according to its customers
and
suppliers.
 customer payment deadline
 supplier payment deadline
 Working capital requirement

 Profitability
The objective is to obtain an objective vision of the profitability of a company.
 Profitability = profit/capital
 Profitability in relation to invested capital = net income/equity

 Financial structure
Allows you to know the financial independence of the company.
 Independence = equity/permanent capital
 Autonomy = equity/total balance sheet
 Debt repayment = long-term debts/repayment capacity

3. Why does this society push for “gigantism”?

To face the competition, Caesars Palace had to adopt a strategy of
development of its range of services and hotel capacity. This legendary casino hotel in
Las Vegas has been caught in a vicious cycle of excessive one-upmanship. Except that the
excess comes at a high cost, requiring a customer base ready to consume.
Caesars Palace is owned by funds (TPG and Appolo) which have more of a speculative logic
without any link with local consumption capacity.

EXERCISE 7: Sustainable development, corporate social responsibility

1. Why can we no longer stay on the same productive pattern of the two centuries
previous ones?

Producing on the same productive pattern as the previous two centuries would lead to the end of
our Western model. Economic activity and continued exploitation of resources
Natural resources have too often harmed the environment. Stay on a model of
unlimited growth on natural resources which are not possible (e.g.:
oil).

2. What are the negative externalities?

We speak of externalities when the actions of an economic agent have a positive impact or
negative on the well-being and behavior of other agents without this interaction
the object of an economic transaction.
Here the externalities in question are negative of the order
economic, social and environmental:
 Pollution,
 Resource depletion,
 Soil erosion,
 Social exclusion,
 Job insecurity.

3. What does this problem lead to?

This problem of negative externalities generated by our productive system has the
sustainable development solution (economic/social/environmental reconciliation)
through the company’s CSR.
 SYNTHESIS

Make a profit Creation of wealth

(added value)
Purpose
Traditional the
company

To satisfy the client

Meet needs with quality products

Internal: (employees,
unions, shareholders)

Social External: (customers,

Others suppliers, state, NGO)
responsibilities of
the company

Societal Sustainable development :

SRI
Chapter 3 – Management and performance

EXERCISE 1: Operational management: acquiring the essential know-how of

daily management

1. What are the tasks of an operational manager?

According to Mintzberg, managers have many organizational, negotiating and management tasks.
representation. It distinguishes 10 functions or roles classified into three main categories:
interpersonal relationships, information roles and decision-making roles.
 Interpersonal roles: the symbol, the leader, the liaison agent.
 Roles related to information: active observer, broadcaster, spokesperson.
 Decision-making roles: entrepreneur, regulator, resource allocator,
 negotiator.

2. Do you understand the drawing?

Operational management has a relational dimension: the manager must manage one or more
several teams by assigning roles to each, he must create a group spirit, manage
Conflicts…

EXERCISE 2: AIRBUS

1. What problem are the leaders of the Airbus group facing?

Airbus managers are encountering difficulties. Indeed, the A380 is not as successful as hoped.
Some airlines require an improvement in aircraft performance.
Two solutions arise for managers:
 Either re-engine the A380;
 Either stop the program.

2. What strategic decision will need to be made?

A strategic decision commits the organization in the long term. It ensures or

not the future of the organization, it is a unique decision, non-reversible and non-programmable.
Here the decision would be to re-study and modify the construction of the device (weight,
motorization). The A380 is an imposing aircraft that cannot be accommodated by all airports
and fuel-intensive, which is not to the taste of airlines.
3. What could be the consequences?

A strategy can be double-edged, either improving the situation or making it worse. This choice
launching an innovation program on the device for the medium/long term can stop the
current order intake.

EXERCISE 3: What is the distinction between strategic management and

operational management ?

1. Why the distinction between the two forms of operational management and
strategy sometimes difficult to understand?

The distinction between strategic management and operational management is not

always obvious. Strategic management sets the course for operational management.
Taylor had separated the two managements but this vision was reconsidered
cause with modern organizations. Normally a strategic decision has
long-term consequences and a short-term operational decision. We see that even at
temporal level the distinction is hard to make (e.g.: advertising campaign).

2. In what type of companies is this problem fading and why?

This problem of difficulty in defining the two managements fades in large

businesses. In fact, such structures separate them, on the one hand the leaders take the
strategic decisions and on the other hand managers take care of daily tasks.
According to Taylor, strategic management is the brain of the organization and management
operational corresponds to the arms of the organization.

EXERCISE 4: THALES

1. Recall what the activity of the THALES company represents.

Thalès is an electronics group specializing in:

 Aerospace (avionics, space),
 Transport (land transport system),
 Defense and security (secure information and communication systems, systems
 land and air, defense mission systems).

2. What are the missions of an operational manager?

The operational manager leads and manages his teams. He designs, implements, controls and
evaluates action plans that enable the achievement of assigned objectives.
Its main missions are:

 Proposal for monitoring the achievement of activity reporting objectives;

  Development and implementation of operational action plans, organization and
monitoring work.
 Animation of the team;
 Management of associated human and budgetary resources;
 Technical referent ;
 Files monitoring.

3. With which stakeholders does an operational manager relate?

The stakeholders are both internal and external (stakeholders/shareholders):

 Leaders,
 Employees,
 Clients,
 Suppliers.

EXERCISE 5: The effective organization and management of a business

1. Recall the notions of effectiveness and efficiency.

The notion of effectiveness refers to the fact of achieving an objective, while efficiency is the
implementation
in relation to a result and the means used to obtain it.

2. How can a business maximize efficiency and effectiveness?

Everything depends on the organization and operation of the company.

She will have to :
 Optimize its internal processes;
 Mobilize your salaries (dynamism and adaptability);
 Build a corporate culture (to move towards a common goal);
 Flexible and responsive business management.

3. What are the results expected from this optimization approach?

The results are:
 Cost reduction ;
 Maximize profit margins;
 Eliminate abnormal losses;
 Optimize workforce time;
 Formation of a corporate culture;
 Improve productivity, yield and profitability.

EXERCISE 6: The Norton and Kaplan balanced scorecard

 1. What is the “Financial Results” axis used for?

The financial results axis makes it possible to determine whether the chosen strategy:
 Improves financial results;
 Allows a return on capital invested;
 Provides economic added value.

2. What indicators does the “Customers” axis analyze? What purpose ?

The indicators are:
 Customer satisfaction and loyalty;
 Extension of the customer base;
 Profitability by customer category;
 Market share in targeted segments.
Specific indicators:
 Determinants of customer loyalty;
 Delivery times and punctuality;
 Innovation in products or services;
 Ability to anticipate their needs.
The goal is to improve the brand image, increase market share and satisfy customers.
customer needs.

3. What is the point of the “Internal processes” axis?

This axis allows the company to know which key processes it can control in order to
to improve its quality, have a competitive advantage and engage in innovation.

4. What is the objective of the “Organizational learning” axis?

The objective of this axis is to reveal to the company what systems it must put in place
in place to improve its performance in terms of:
 human,
 system,
 procedures.

5. Show how the TBP allows you to control the strategy.

The TBP is a tool to help define and communicate strategy within

the company. Its purpose is to match the company's activities and its strategy. THE
TBP has a financial focus to measure past performance. The other three axes (customers,
internal processes and organizational learning) make it possible to take into account the
factors of future performance. This is what gives it its prospective character.

EXERCISE 7: An industry tool serving performance

 1. Present the strategic decisions taken by Michelin.
Three major decisions were taken by Michelin:
 Standardization of designs, factory equipment and production timing commitments
 Innovation in organizational terms, automation of certain processes and cooperation
between production units
 Employee versatility.

2. How is Michelin’s industrial strategy put to the service of

performance ?

By definition, performance is the measurement of the results obtained by a company. Here the
The results expected by Michelin are financial and commercial. All decisions
strategic measures taken by Michelin will enable faster return on capital
invested, due to the reduction in costs and deadlines (financial aspect) and also a more
great responsiveness to market expectations (commercial aspect).

3. How is a well-distributed industrial tool a guarantee of sustainability for the company?

This geographic and monetary distribution helps spread the risk. Indeed if a market
is in crisis, the company will be able to find other outlets at another point of production and
of distribution.

EXERCISE 8: Company performance indicators

1. Remind yourself of what a company’s performance represents.

A company is said to be efficient if it is efficient, achieving all the objectives and

efficient, by operating with adequate means at the lowest costs.

2. Why do we measure the performance of a company?

Measuring business performance allows it to be better managed (measurement/action/reaction),

to know what areas need improvement.

3. What are the main performance indicators?

The main indicators are:
 Financial (cost calculation, return on assets, WCR, cash management),
 Market (competition study, customer satisfaction, etc.),
 Organizational (after-sales service, R&D).
 SYNTHESIS

• Art of running a business

Management
• Implementation of management techniques

strategic management • Analysis of the environment and potential of the

company
• Medium and long term strategic decisions: general
management domain

operational management • Implementation of strategic objectives and decisions

• Current decisions: intermediate hierarchy domain

Efficiency Results/objectives fixed

Performance (definition)

Efficiency Results/ Resources committed

Chapter 4 – Decision and decision process

EXERCISE 1: Decision making

1. Give a definition of decision.

The decision: it is the choice, among several possibilities and in an uncertain universe, the act which
appears to be the most relevant for achieving a desired result within a judged time frame
desirable and possible by making the best use of information and resources.

2. Is a world without decision-making reliable?

A world without decision-making is unreliable, given the multiplicity of possibilities. He

At some point you have to decide, take the risk of choosing, but also of making mistakes in order to
move forward.

3. Is it easy to make decisions?

No, it is not easy to make decisions because a decision has different aspects:
 a time horizon,
 a field of application,
 a degree of structuring,
 a degree of uncertainty: certain, uncertain or uncertain future.

Decisions are characterized by the diversity of variables to be taken into account, by the quality
significant amount of information, due to the complexity and variety of the resulting situations.

EXERCISE 2: The strategic decision

1. What is the scope of a strategic decision?

The strategic decision has a long-term scope; it can have an impact on the survival of
the company.

2. Are there multiple ways to make these decisions?

Decision-making can be done in two ways:
 Either act by intuition (visionary);
 Either act through a decision process which is:
 perceive the problem,
 To ask the problem,
 look for possible solutions,
 compare the solutions,
 choose a solution,
 define the actions to be planned.

3. Who makes this type of decision and for what reasons?

Strategic decisions are made by leaders because they have a broad and long-lasting effect
term concerning the general orientations and the definition of the company's potential.

EXERCISE 3: The different types of decisions

1. Highlight the three possible types of decisions.

 Strategic decisions
 Tactical decisions
 Operational decisions

2. Why are there three types of decisions?

There are three types of decisions because each operates in different areas, in a
different duration and at different levels of hierarchy:
 Strategic decisions: long-term effect, affects the development of the company and its
future. They are taken by general management.
 Tactical decisions: medium-term effect effective use of the potential of the company. They
are taken by senior management.
 Operational decisions: short-term effect, daily implementation of potential of the
company.

3. Imagine an example of a decision by analyzing it with the tables.

 Strategic decisions: relocation of production, launch of a new product.

 Tactical decisions: choice of a supplier.
 Operational decisions: replacement of an absent employee (sick for 1 week).

EXERCISE 4: Ford's profit exceeds $7 billion in 2013

 1. What are Ford's results?

Ford's results are very good, overall with differences on a case-by-case basis.
geographical areas.

2. Which regions of the world are affected?

 North America: results on the rise.

 China: Increase in market shares and results.
 Asia-Pacific: Increase in profit.
 Europe: difficult market for Ford, however the situation is improving although still in the
red.
 South America: decreasing result.

3. Note the importance of decision-making in group outcomes.

Ford's current good situation is due to Allan Mulally's relevant decision-making

at the head of Ford since 2006. He made choices of refocusing, simplification,
standardization and cooperation which are now bearing fruit.

EXERCISE 5: Decision-making, an art!

1. Why is it difficult to make a decision in the current economic context?

Since the crisis, decision-making has been a very delicate exercise. The uncertain situation
does not encourage managers to make choices that commit their companies in the long term
(lack of long-term visibility). Globalization and increased competition
do nothing to help this situation.

2. What risks should be measured?

Risks must be assessed in relation to the uncertainty of the decision.

 Certain decisions: the organization controls all the variables that intervene, we can know
the results in advance.
 Random decisions: the organization can know the different eventualities and associate a
probability with each.
 Uncertain decisions: the organization does not control all the variables (e.g.: strategic
decisions).
The most serious risk is the bankruptcy of the company.

3. Does the right decision exist?

The right decision does not exist, all have their advantages and disadvantages, it all depends
of the context and the company. The best would be the one that takes into account the interests of
all stakeholders of the organization.

4. Why is saying no a decision?

Saying no is a decision, this negation presupposes a reflection, a study of the choice of

give up (example: lack of means, time, etc.).

EXERCISE 6: The 10 methods of decision-making

1. Can all these ways of making a decision exist in a company? In everyday life?

All these ways of deciding do exist in a company. In everyday life, they

done informally but we find the logic of decision-making.

2. Which ones do you think are the most reliable for a company?

 Analyze the figures.

 Opt for the collective.
 Act then think.
 Use mind mapping.

3. Not deciding, is that deciding something?

Yes, not deciding is a defensible choice. It is trusting the group or a

trusted person and delegate decision-making to them.
It can also mean procrastinating and trusting the future more than the present.

EXERCISE 7: The baker’s wife

1. Why is the decision taken strategic?

The strategic decision because if she leaves him for the baker, the decision will have effects on the
In the long term, their relationship will not survive this choice.

2. What would have been a tactical decision in this case?

The tactical decision would be for his wife to take the baker as her lover.

3. Is the decision irreversible?

For the strategic decision, it is irreversible. For the tactical decision low possibility of
reversibility of the decision.

SYNTHESIS

Decision Strategic Tactical Operational

Level Hierarchy Hierarchy Operational level
hierarchical superior intermediate
Frequency Exceptional Periodic Current
Impact Determinant for Determining Determinant on the
the future of character activity and
the company resources to the operation to be
mobilize carried out
Due date Long term Middle term Short term

Constraint external Deadlines, degree of decision-

Influence on the maker autonomy, economic
decision-making situation
process
Internal constraints
Personality of the manager,
limited rationality, structure of
the organization
Chapter 5 – Leadership styles

EXERCISE 1: Power

1. Specify the notion of power.

Power is the ability of individuals or groups of individuals to act on others in order to

achieve an objective or obtain a desired effect.

2. Are there power struggles linked to power in the company?

The company experiences power struggles linked to power, we often encounter conflicts there.
which take the form of power conflicts: everyone seeks to influence in favor of the
solution which is preferred. Individuals in a company differ by their training and
their function, have objectives which never exactly coincide. Everyone has their own vision of
necessary means to ensure the operation of the whole.

3. What risks are linked to holding power?

Holding power can involve certain risks:

 That of abusing it;
 Do not take into account the interests of stakeholders.

EXERCISE 2: Industries and decentralized companies

1. What do we call decentralization of power for a company?

According to Mintzberg “We will say that the structure is centralized when all the powers of
decisions are located at a single point in the organization, ultimately in the hands of a
individual; we will say that the structure is decentralized when power is dispersed between
many people "

2. Why do the companies mentioned require a structure decentralized?

The success of the companies mentioned is based on innovation and knowledge. These organizations
have
need a certain autonomy of decision-making.
A decentralized structure has 3benefits :
 Encourages motivation and creativity;
 Allows the sharing of knowledge;
 Allows flexibility and individualization.

H. Mintzberg gives three major reasons for decentralization:

 Decision-making powers are placed where individuals can understand the situation and
respond intelligently. Power is placed where knowledge is;
 Allow rapid response to local conditions;
 It is a means of motivation: creative and intelligent people need considerable room for
maneuver.

EXERCISE 3: The typology of management according to Rensis Likert

1. Why are there different leadership styles?

There are different leadership styles because it depends on many factors such as:
 The personality and characteristics of the manager,
 The size of the company,
 Ownership of the company,
 Business environment.
The management style is contingent, that is to say, the ability to adapt, to find a
relevant solution to a given problem based on all internal parameters and
external to the organization.

2. Can a manager be at the crossroads of several styles?

A manager can be at the crossroads of several styles, moreover it is essential to mix them
several to balance your own style and have leadership adapted to each context.

EXERCISE 4: Leadership styles in comics

Find and explain how this diagram represents Rensis leadership styles
Likert from a humorous angle.
The diagram represents the 4 leadership styles.
 Participative: Participatory style We observe a group all at the same level who decide to
work together. They are involved.
 Consultative: Consultative style We observe a manager asking for approval from his
employees. The employees agree and the final decision is made by the manager.
  Benevolent authoritative: Paternalistic style The drawing represents a manager touching
the head of an employee and saying “good job son” the leader imposes himself as a
paternal image from which emanates incontestable authority.
 Authoritative exploitation: Authoritarian style The drawing represents a large manager
threatening his employees with a weapon in their asking “work slave”. The employees
obey which does not prevent them from cursing their manager.

EXERCISE 5: The Blake and Mouton model

1. Why can the two axes of the diagram be in opposition?

These two axes can be in opposition because they do not have the same orientation, the axis of
abscissa gives the value for the degree of “production” orientation, the second for
“the human”.
2. Can the “integrative” style be effective?

The integrative style reconciles production and people by optimizing human resources,
the involvement of employees producing high performance.

3. Is the “laisser-faire” style advisable for a business?

This style of management is not efficient in fact the manager does not optimize any
resource. The company would be like a ship without a captain. This laxity beyond
reporting no results will lead to dysfunctions and conflicts.

4. In what types of businesses is the “social” style found?

In public companies and private companies that practice development
sustainable in terms of societal values.

EXERCISE 6: Managing a large company

1. Can you run a large company while maintaining centralized power?

From the moment an organization reaches a growth threshold, the manager can no longer do
everything do, organize, supervise. The general organization and the social climate would suffer. He
is necessary to either delegate powers or decentralize responsibilities.

2. Present the advantages of the model proposed by Alfred Sloan.

Alfred Sloan established at General Motor a model of the multidivisional firm, a

form of decentralization through the establishment of autonomous divisions. This model allows
initiative, responsibility as well as flexibility because most decisions are made by
those who are close to the problems.
The multi-divisional firm is structured as follows:
 General management defines an overall strategy and a general policy;
 The divisions are autonomous in the management of their activity;
 They are evaluated according to the profitability of the capital invested;
 Certain functions can remain centralized;
 To maintain general coherence of the company, the organization chart must provide in
each division a representation of the other divisions.

3. Why institutional investors exert strong pressure on companies?

Institutional investors exert strong pressure on companies to

refocus on their core business. Shareholders want to play the role of general management
and take power. Since the 1990s, we have witnessed a takeover of power by
financiers.

EXERCISE 7: Companies are entering a new era of decentralization

1. What is the trend for 2020 in terms of decentralization?

The trend for the year 2020 in terms of decentralization will be a transformation of the model
current ; in fact business leaders agree that the transfer of board decisions
administration from company headquarters to employees will operate quickly.

2. Explain the reasons for this development.

This development can be explained by the impact of new technologies

3. Who will be the newcomers, decision-making?

The new arrivals will be the customers who will be included in the internal decision-making process.
decision and employees who will have access to information at any time.
 Case No. 1: The SNCF case

1. What is the activity of the SNCF?

SNCF is a public railway company its activities are:
 passenger transport,
 transport of goods,
 the operation and maintenance of the national rail network.

2. Using resources 1 and 2, identify elements of strategic management and

operational management.
Operational management :
 Generalization of professional areas with catering included;
 Fixed increase in ticket price;
 Tightening of exchange and reimbursement conditions;
 Removal of the bar for 2nd class journeys of less than 3 hours.
Strategic management :
 Bet on all TGV;
 Renovation of stations.

3. Does the monopoly situation on internal lines constitute an advantage?
100% competitive?

The monopoly creates a situational rent. Due to its dominant position, the SNCF can make the
rain or shine on internal lines. It is not subject to competition which
would allow a reduction in rail fares. Only a European regulatory measure
liberalizing the railways, would encourage competition between the SNCF and its
European partners.