Definitions Flashcards
Risk management
The process of Identifying and assessing the risks facing a business, and the development, implementation and monitoring of a strategy to respond to these risks in order to reduce threats to acceptable levels.
The mitigation of risks by reducing their likelihood or impact
Business continuity planning
The process through which a business details how and when it will recover and restore operations interrupted by the occurrence of a massive (but rare) risk event
e.g. natural disaster such as a warehouse flood or fire or a major breach of security causing their website / IT systems to be down for an extended period
Supply Chain Management (3 R’s)
Responsiveness, Reliability and Relationships
Capital investment issues
Increased fixed costs increases operational gearing and thus increases risk
Mission Statement (PSPV)
Purpose - why does the organisation exist?
Strategy - what resources give it a competitive advantage?
Policies - what standards are adopted?
Values - what beliefs to staff share?
9 M’s model
Men Money Machinery Materials Methods Markets Management Management information Make-up (culture)
Objectives (SMART)
Specific
Measurable
Attainable
Relevant
Timed
Organisational plan (MOSAP)
Mission (PSPV)
Objectives (SMART)
Strategies (long term plans to achieve objectives)
Action Plans (short term plans to achieve strategies)
Porters 5 forces
Threat of new entrants
Threat of substitutes
Power of customers
Power of suppliers
Competitive rivalry
Porters Diamond
Demand conditions
Supply conditions
Strategy, structure and rivalry
Related and supported industries
Critical Success Factors
Small number of key goals vital to the success of an organisation.
Identifying CSFs allows an organisation to configure its resources and competencies it needs to invest in / focus to success
Steps of Knowledge Management
Identify knowledge that exists within the organisation
Capture / document this information to create a knowledge base
Disseminate the knowledge to the appropriate people
Determine ways it can be tracked and developed
Ensure it’s kept confidential and secure
Benchmarking (KPIs)
Benchmarking is: the establishment, through data gathering, of targets and comparators through whose use relative levels of performance (and particular areas of underperformance) can be identified by the adoption of identify best practices this helps the performance will improve
Historical / internal
Competitor
Activity (best in class)
“Comment on the organisational structure”
Mintzberg’s operational configuration:
Operating core (shop floor) Middle management (regional managers) Techno structure (IT, can be outsourced) Support staff (Legal, finance, can be outsourced) Strategic apex (partners / owner-managers) Ideology (organisational-wide beliefs)
Types of Mintzberg’s structural organisations:
Entrepreneurial (owner-manager)
Functional structure (board of directors oversee finance, marketing, HR, production etc)
Divisionalised structure (board of directors oversee geographic divisions)
Matrix structure (rows: functional, columns: product type)
Professional bureaucracy (standardisation of skills)
Handy’s Shamrock (core of essential executives and workers supported by outside contractors and part-time help”)
Ansoff’s matrix
Existing product, existing market: Market penetration (risk = lack of diversification)
Existing product, new market: Market development (risk = market research needs to be done to ensure a correct fit with new market)
New product, existing market: Product development (risk = product failure due to poor R&D may damage the brand)
New product, new market:
Diversification (related / concentric): become own supplier (forward) or distributor (backward); gain econ of combined operations (risk = increased fixed costs therefore increased operational gearing; capital needed; reduced flexibility to change partners)
Diversification (unrelated / conglomerate): achieve synergies through brand name (risk = failure in one venture causes damage to whole brand, lack of synergies for shareholders as they’re assumed to be fully diversified anyway)
Lynch’s expansion model
Organic / acquisition
Domestic / international
The three E’s of a public (not for profit) organisation
Economy
Efficiency
Effectiveness
Gemini 4 Rs change framework
Reframing
Restructuring
Revitalising
Renewal
Corporate governance
The system by which companies are directed and controlled. The aim of CG is to facilitate the effective, prudent management in order to deliver long term success. It is underpinned by the principles of accountability, transparency, honesty and focus on long term sustainable success
Ethics is:
Ethics pertains to whether a particular behaviour is deemed acceptable in the context under consideration. In short, it is “doing the right thing”.
In making any ethics evaluation it is first necessary to establish the facts
…
Helpful to apply the Institute of Business Ethics’ three tests:
- Transparency
- Effect
- Fairness
