Theories And Models Flashcards
Ansoff Matrix
Is a tool for comparing the level of risk involved with the different growth strategies. It helps managers decide on a direction for strategic growth.
Vertical - MARKETS - t) Existing, b) New
Horizontal - PRODUCTS - L) Existing, R) New
(L,b) - Market development
(L,t) - Market Penetration
(R,t) - Product development
(R,b) - Diversification
Risk increases towards Diversification
Balance Scorecard Model (Kaplan and Nortons)
Is used to assess business performance and in developing, implementing and monitoring strategy, using both financial and non-financial data, including measures of efficiency, and effectiveness, and links them to the overall strategy and vision of the business.
The model:
Vision and Strategy is in the centre, them branching off is:
-Financial - How do we create value for shareholders?
-Customer - What do our customers value about us?
-Internal Business Process - How can we improve our process?
-Learning and Growth - How can we continue to grow and improve?
Barlett and Ghoshal
There are four international business strategies:
(Pressure for local responsiveness, Pressure to reduce costs)
-International strategy - Low, Low
-Multi-domestic strategy - High, Low
-Global Strategy - Low, High
-Transitional Strategy - High, High
Blake Mouton Grid
Assesses managers based on how much they care about their employees and how much they care about production.
x-axis - Concern for production
y-axis - Concern for people
(1,1) - Impoverished Style (1,9) - Country club Style (5,5) - Middle of the road style (9,1) - Produce or perish (9,9) - Team style
Boston Matrix
The Boston Matrix compares market growth with market share. It’s a valuable way of showing where a businesses products are positioned in the market.
Star - High market growth and high market share
Question mark - High market growth and low market share
Cash cow - Low market growth and high market share
Dogs - Low market growth and low market share
Bowmans Strategic Clock
Shows pricing and differentiation strategies based on different combinations of price and perceived added value.
Carroll’s CSR Pyramid
Carroll said that business have four types of CSR responsibilities, and can be used to analyse business decisions and to assess whether they are made out of necessity or in a voluntary capacity Top - Philanthropic Ethical Legal Bottom - Economic
Elkingtons triple bottom line
Is used to measure a business’s performance in relation to three overlapping areas - Profit, people and planet.
Profit - The traditional/finance or economic value created by the company
People - (Impact on) - A company’s social values and the way it treats its employees and the local community
Planet - (Impact on) - A company’s environmental values and impact on the environment
It’s arranged in a venn diagram, and sustainability goes in the centre - this is the ideal balance between social, environmental and financial performance.
The experience curve
As a business produces more the workers get more experienced and it may see an increase in production from experience, and see a fall in cost per unit. It shows an inverse relationship between cost per unit (y) and total units of production (x)
Greiner’s Model of Growth
Shows each phase of growth followed by a crisis:
Phase 1: Creativity Growth - Leadership crisis
Phase 2: Direction Growth - Autonomy crisis
Phase 3: Delegation Growth - Control crisis
Phase 4: Coordination Growth - Red Tape crisis
Phase 5: Collaboration Growth - Growth crisis
Phase 6: Alliances Growth -Identity crisis
Hackman and Oldham
Thought that a job needed to be designed so that it would focus on the person, and the person would then be motivated. Its broken down into five key elements of job design which lead to worker motivation, more worker involvement, higher performance, lower staff turnover and lower absenteeism:
1 -Skill variety - A lack of skill can be repetitive and demotivate
2 -Task identity - A clear task that workers deal with from start to finish makes workers feel more involved
3 -Task significance - Importance = motivation
4 -Autonomy - Own decisions = value
5 -Feedback - Performance meetings motivate
Handy Models of Culture
Handy Models of Culture splits into 4 cultures:
Task - Everyone works towards one task e.g. NASA
Power - Power moves from the centre e.g. Pixar
Person - The business is orientated around a person/individual that makes their own decisions usually due to specialised training/education, e.g. Doctors.
Role - People have clearly delegated roles in a clear hierarchy, e.g. NHS
Hofstede National Culture (6)
Countries are scored on six dimensions - these scores allow businesses to assess the cultural differences when dealing with businesses from different countries and plan for any culture clashes.
1 - Power Distance - Power and wealth is distributed unequally
2 - Uncertainty Avoidance - The extent to which people try to minimise uncertainty (Rules and regulations)
3 - Individualism vs. Collectivism - The extent to which people are expected to look after themselves rather than support each other
4 - Masculinity vs. Femininity - Masculine cultures are highly competitive and powerful, with constraining gender roles
5 - Long-term Orientation - The higher the long-term orientation, the more the society looks to the future and accepts new ideas rather than following tradition
6 - Indulgence vs. Restraint - Indulgent societies allow their people to satisfy their desires and impulses, within reason. Restrained societies attempt to regulate the desires of their people
Kotter and Schlesinger (Resistance to change) Part 1
Managers need to consider which of the following reasons is most relevant to the specific change in their company.
1) Self-interest - People are more concerned with their own situation rather than the success of the business
2) Misunderstanding - When people don’t fully understand what it means for them, they will usually think they have more to lose than gain until they are told otherwise therefore resist it.
3) Low tolerance of change - People get complacent with what they know and fear they won’t be able to develop new skills required after the change
4) Different assessments of the situation - The key stakeholders may have strong disagreements over the reasons for change and therefore there may be an inability to accept the need for chance.
Kotter and Schlesinger (Overcoming resistance to change) Part 2
Once managers have identified the reason for resistance, they can try to do something about it:
1) Education and Communication - Managers need to raise awareness of the reasons for change and how it will be carried out.
2) Participation and involvement - Key stakeholders should be involved in the design and implementation of change
3) Facilitation and support - Listen to the concerns of the workforce to help them adjust through the change
4) Negotiation and agreement - Giving stakeholders opportunities to negotiate and compromising over key sticking points, financial and non-financial incentives may be offered for full acceptance.
5) Manipulation and Co-option - An employee who is resisting change may be given a desirable role in the decision making process in order to gain their coordination.
6) Explicit and implicit coercion - As a last resort, a person may be threatened to comply with the planned changes or face the consequences.
