3.10 MANAGING STRATEGIC CHANGE Flashcards
(72 cards)
When does change occur in a business?
When a business changes its structure, size or strategy to respond to internal or external influences – May be necessary to help a business meet aims/objectives – Can either cause opportunities or threats – Must be managed carefully to ensure an increase in competitiveness
What is ‘critical path analysis’ and what does it show?
Technique to be efficient – Sets out all individual activities that make up a larger project – Shows order in which activities should be done – Shows which activities can only take place once others are done – Shows which activities can be done simultaneously to reduce time – Shows when resources will be needed
What is ‘critical path’?
Route through the CPA which has no ‘float’ (spare time)
Layout of every node (‘critical path analysis’)
Circle in 3 sections – Left: Node No. – Top right: EST – Bottom right: LFT
What does the ‘Earliest Start Time’ show and what is its aim?
Shows earliest time an activity can start, based on previous task completion – Aims to identify resource timing for orders and scheduling
How to work out the ‘Earliest Start Time’ (EST)
Take EST for previous task and add task duration – Always pick highest number if between 2 tasks
What happens when a task depends on two simultaneous tasks?
EST will be the time of the longest task – Project cannot proceed until all dependencies are completed
What does the ‘Latest Finish Time’ show and what is its aim?
Latest time a task can finish without delaying the project – Delays will impact the overall schedule
How to work out the ‘Latest Finish Time’ (LFT)
Worked out backwards from end of the network – Always choose longest duration if tasks are simultaneous
What do the arrows mean in CPA?
Show which task you are undertaking and duration before it
Advantages of CPA
Keeps business organised – Shortens overall project time – Improves focus – Increases efficiency – Enables just-in-time planning
Disadvantages of CPA
Only a starting point – Relies on estimations – Ignores external influences – Can be too complex – Time-consuming
What is a ‘FLOAT’?
Delay in CPA
FLOAT Calculation and preference
LFT (after task) - Duration - EST (before task) – Less float = better
How to identify the critical path
0 float = critical path – No delay possible
What does a line with a cross through it mean in CPA?
Critical route through the project
Method to remember ‘path crossers’
Lowest on way back – Highest on way there
What is CPA dependent on?
Labour and resource availability – Lead times – Seasonal factors (e.g. dry weather)
What can a business do if a project is delayed?
CPA helps assess impact – May shift staff to delayed activity – Extra labour/overtime/outsourcing can help but costs more
Define ‘culture’
The way we do things around here – Affects business operations
Contextual example of business culture
Google – Unique HQ in Zurich with slides and pets – Unique culture
What aspects of a business does culture affect?
Decision making – Organisational structure – Communication – Leadership – Attitudes toward work
Aspects of Handy’s Cultural Model
Task – Role – Power – Person
Explain ‘Task’ in Handy’s Cultural Model
Emphasis on achieving outcomes through teamwork and cooperation
