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E3 Flashcards

1
Q

4 main models to develop a strategy:

A
  1. The Rational Model - 3 steps; strategic analysis, strategic choice, strategic implementation
  2. The Emergent Model - formal planning, but adjusted for unexpected events
  3. Logical Incrementalism - formal planning is a waste of time, use small scale extensions of past, successful strategies
  4. Freewheeling opportunism - ignore any formal planning, take advantage of opportunities as they arise
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2
Q

Mission =

A

statement of fundamental objectives, ‘reason for being’

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3
Q

Vision =

A

Where they company sees itself in the future

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4
Q

Stakeholders: 7 Actors

A

Organisations of states
States
Organisations formed by firms
Corporations
Non-gov organisations
mass publics
knowledge based communities

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5
Q

4 Ways to Resolve Stakeholder Conflict:

A

Satisficing - negotiaition
Side Payments - compensation
Sequential action - deal with each dept in turn
power - enforcing contracts

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6
Q

4 levels of CSR:

A

philanthropic
ethical
legal
economic

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7
Q

4 approaches to csr:

A

reaction, defence, accomodation, proaction

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8
Q

4 ethical stances to CSR:

A

short-term shareholder interest - follow the law
long-term shareholder interest - spend on short term CSR for long term gains
multiple stakeholder obligation - involve stakeholders
shaper of society - lead the way in industry

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9
Q

6 Markets Model: Groups an org needs to market to

A

Customer markets - direct customers/comsumers
Referral markets - people/orgs that refer customers to us
Supplier markets - suppliers we partner with
Recruitment markets - providers of staff
Influence markets - public relations
Internal markets - internal departments

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10
Q

Competitor analysis - 3 stages

A
  1. Identify competitors ( 4 types)
    - brand - similar products, same customers
    - Industry - similar products, different segment
    - form - different products, satisfy same need
    - generic - compete for the same income
  2. Analyse competitors
  3. Develop a response profile (4 types)
    - Laidback - no response
    - Selective - respond in certain instances
    - Tiger - aggressive response
    - Stochastic - no predictable pattern
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11
Q

Porter’s Diamond

A

Factor Conditions
highly skilled employees/infrastructure/can’t be emulated by competition

Demand Conditions
Substantial demand at home = economies of scale & experience to compete globally

Related Supporting Industries
Knowledge sharing/supply chains/distribution networks

Firm Strategy, Structure & Rivalry
If home market is very competitive, company is more likely to become world class

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12
Q

Threshold competency =

Core competency =

A

Threshold = things a business must do well to simply compete

Core = things the business does well that give competitive advantage

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13
Q

9Ms Model:

A

Manpower
Money
Management
Machinery
Markets
Materials
Methods
Management info
Make-up (structure/culture)

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14
Q

CSFs =

main sources of CSFs

A

vital areas where things must go well and a business must out perform its rivals

corporate mission translates into CSFs which translate into KPIs

Main sources of CSFs include: industry, situation, wider environment

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15
Q

Porter’s Value Chain

A

Primary:
inbound logistics, operations, outbound logistics, marketing & sales, service

Support: firm infrastructure, technology, HR, Procurement

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16
Q

Value drivers

Value shop

Value system

A

Value drivers = enhance perceived value of product by customers

Value shop = alternative representation of value chain for professional service firms

Value system = linkages between the value chains of the business and it’s suppliers/customers

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17
Q

Diversification gap =

A

difference between ideal position & the profit after efficiency savings AND new strategic initiatives

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18
Q

Efficiency gap =

A

increase in returns caused by an efficiency drive / cost cutting exercise

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19
Q

Value drivers

Tangible =

Intangible =

A

tangible = NCAs / raw materials

intangible = brand / know-how / reputation

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20
Q

Methods of Corporate Foresight (6)

A

Issues analysis - potential signfificant events analysed for probability & impact

Scenario planning - consider series of possible futures

The Delphi method - 1-1 interrogation of experts using questionnaires

Morphological analysis - systematically investigates all components of major problems

Opportunity mapping - identifying gaps in market

Cross-impact analysis - how events will interact with one another

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21
Q

Real options (3)

A
  1. abandon
  2. follow-on
  3. Delay
22
Q

The 5Cs of foresight

A

communication
concentration
co-ordination
consensus
commitment

23
Q

Intuitive methods of forecasting (4)

A
  1. Think tank - group of experts discuss, unstructured
  2. Delphi Technique - experts posed with questions individually (reduces pressure to conform)
  3. Brain storming - all levels of org generate ideas in a group (outside of normal hierarchy)
  4. Derived demand - forecast based on demand for another product, many other factors could influence
24
Q

for a strategy to be selected it must be (3)

A

SUITABLE (does the job)

FEASIBLE (possible to be done)

ACCEPTABLE (to stakeholders)

25
Porter's Generic strategies (appropriate for small org that doesn't have the resources to compete on a large scale)
Source of competitive advantage (cost or differentiation) vs scope: Cost leadership (broad scope) Cost focus (narrow scope) Differentiation (broad scope) Differentiation focus (narrow scope)
26
Ansoff's Matrix ( gives the direction of growth / where to compete)
Market penetration - same product, same market. Aim to increase market share Product development - different product, current market Market development - existing product, different market Diversification - different product to different market. (related if same supply chain, unrelated if no common ground)
27
BCG Matrix - aim to have a balance
Dog - low market share, low growth market Cash cow - High market share, low growth market Problem child/? - low market share, high growth market Star - high market share, high growth market
28
The Performance Pyramid
Level 1: CORPORATE VISION Level 2: MARKET & FINANCIAL: Divisions / SBUs. CSFs that must be achieved to meet the vision Level 3: CUSTOMER SATISFACTION, FLEXIBILITY, PRODUCTIVITY: Business operating systems. Measures & processes Level 4: QUALITY, DELIVERY, CYCLE TIME, WASTE; departments. day to day measures
29
Building Block Model (performance measurement should be based on 3 blocks)
DIMENSIONS - goals / CSFs Downstream results: financial performance / competitiveness STANDARDS The ideals/values we want to achieve (need ownership, accountability & fairness to ensure manager motivation) REWARDS Motivators for employees to work towards. Clarity, motivation & controllability
30
Benchmarking (3)
Internal - comparison to another dept Competitor - comparison to competitor Process - compare to outside of industry
31
Shareholder Value Analysis. 7 drviers of value (value of business = value of future cash it can generate)
SLOWCAT Sales growth rate Life of project Operating profit margin Working capital Cost of capital Asset investment Tax
32
Integrated Reporting: 6 capitals
Financial Manufactured Intellectual Human Social & relationship Natural
33
7 guiding principles to underpin preparation of report:
1. strategic focus 2. connected info 3. stakeholder relationships 4. materiality 5. conciseness 6. reliability & completeness 7. consistency & comparability
34
speed of change vs extent of change matrix (4 options)
Transformational change & big bang speed = revolution Transformational change at incremental speed = evolution Realignment at big bang speed = reconstruction Realignment at incremental speed = adaptation
35
McKinsey 7S Culture Framework (all factors must be aligned for org to effectively & factors depend on each other so cannot just change one)
Hard factors: Structure, Strategy, Systems Soft factors: Skills, Style (of leadership), Staff, Shared values
36
3 key reasons why employees may resist change
1. personal factors 2. job factors 3. social factors
37
Scenario Planning Process Stages (7)
1. Identify high impact, high uncertainty factors 2. Identify possible futures 3. Cluster factors together to identify consistent futures 4. Write the scenario 5. Identify & assess possible courses of action 6. Monitor reality to see which scenario is unfolding 7. Revise scenarios and strategic options as appropriate
38
Change leadership: 8 step process of leading a change
1. Establish a sense of urgency 2. Create a guiding coalition 3. Develop a change vision 4. Communicate the vision 5. Empower broad-based action 6. Generate short-term wins 7. Never let up 8. Incorporate changes into culture
39
Leadership styles to help manage staff amongst change
- Education & communication - inform & explain to overcome fear - Participation - make feel involved - Facilitation & support - help/training/mentoring - Negotiation - come to an agreement - Power/coercion - force the change - Manipulation & co-optation - select the info communicated, no negatives, ethical issues! Breaking integrity!
40
Lewin's Model for implementing change: 3 step process
1. unfreeze the existing structure (breakdown barriers) 2. make the changes (communication, training) 3. Refreeze - embed the change (success stories, targets, bonuses)
41
Lewin's Forcefield Analysis
Aim to increase DRIVING FORCES which encourage & facilitate change Aim to reduce RESTRAINING FORCES which hold change back
42
Theory E & Theory O
Theory E: focus on improving shareholder value Theory O: softer strategies, people oriented BOTH IMPORTANT - implement simultaneously
43
Mentoring = Coaching =
Mentoring = experiences helps less experienced. Learning & development partnership Coaching = more specific. Focused achievement for set period of time
44
4 main strategies for failing businesses
Retrenchment = cost cutting Turnaround = reposition in current market, look for new source of competitive advantage Divestment = sell/close business units Liquidation = sale of organization as a whole
45
5 Emerging Digital Trends
1. the internet of me (digital experiences) 2. outcome economy (outcomes, not products) 3. The platform (r)evolution (cloud, mobile) 4. The intelligent enterprise (big data) 5. Workforce reimagined (machines)
46
9 Revenue streams presented by digital technology
1. transaction 2. capacity leasing 3. licensing 4. subscription 5. commission 6. advertising 7. trading 8. donations 9. subsidies
47
Customer demands in a digital era (7)
contextualized interactions seamless experience anytime, anywhere great service self-service transparency peer-review & advocacy
48
skills leaders must demonstrate in a digital era (6)
inspirational leadership Competitive edge influence external parties collaboration building talent strategy execution
49
4 ideas to keep ahead of digital expectations
1. design thinking - alternative experiences to appeal to many 2. Experiential pilots - gage how customer reacts 3. protoyping 4. brand atomisation - super distribution of the brand
50
to attract digital talent (5)...
long term working strategy make company values together empowerment suitable workplaces policies that support collaboration
51
Digital traction is a function of scale, active usage & engagement. Engagement is measured by ...
engagement is measured by net promoter score (NPS) which categorizes users as: promoters - buy again/recommend Passives- satisfied but might switch to competitors Detractors - could damage brand
52
five main challenges/limitations in AI model development:
Data labelling workload – the humans analysing the camera data are ‘labelling’ it. Obtaining massive training data-sets The explainability problem – developers cannot fully explain the decisions made by the algorithm, even though they programmed it Generalizability of learning Bias in data and algorithms

CIMA (12 decks)

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