E3 Models Flashcards
(61 cards)
1
Q
9M
A
For resource audit:
Manpower, Money, Machinery, Materials (Supp relations), Markets (Marketing & Dist), Management (Skill), Methods (Processes), Make Up (Structure/ Culture), Management Information Systems
2
Q
Porters Diamond
A
Used to asses NATIONAL environment (Advantage):
Firm Strategy, Structure & Rivalry
Factor Conditions Demand Conditions
Related and supporting industry
3
Q
Porters 5 Forces
A
Used to asses competitive environment (Specific industry): Threat of new entrants Threat of substitutes Bargaining power of suppliers Bargaining power of buyers Existing rivalry
4
Q
Porters Value Chain
A
What a firm does to add value:
Support activities:
Firm Infrastructure
Technology Development
Human Resource Management
Procurement
Primary activities:
Inbound Logistics
Operations
Outbound Logistics
Marketing & Sales
After Sales Service
5
Q
PESTEL
A
Used to asses general environment: Political Economic Social Technical Environmental (S) Legal (P)
6
Q
Ansoff Matrix
A
Strategic directions open to a firm (2.Direction):
Product - Current
Market - Current (Penetration)
Market - New (Market Development)
Product - New
Market - Current (Product Development)
Market - New (Diversification)
7
Q
Porters Generic Strategies
A
Generic competitive strategies (1.Basis):
Cost Leadership
Differentiation
Focus (Cost Focus/ Differentiated Focus)
8
Q
Bowman’s Clock
A
Alternative to Porter’s Generic that allows HYBRID & FAILURE STRATEGIES (1.Basis):
[perceived added value(y) vs. price(x)]
4. Differentiation
3. Hybrid 5. Focussed Differentiation
2. Low Price 6(F)
1. No Frills 7(F)
8(F)
9
Q
Lynch Expansion Matrix
A
Methods of implementing strategy (3.Implementation): Internal Development (Organic) - Home Country - Abroad External Development (Merger/ Acq.) - Home Country - Abroad
10
Q
SAF
A
Strategic Evaluation Criteria(Picking Options):
- Suitability (Exploits strength/ Neutralises Threat?)
- Acceptability (To Relevant Stakeholders)
- Feasibility (Physical/ Financial Capability)
11
Q
Mendelow Matrix
A
Stake holder mapping & classification: [Level of interest vs. power] I, P Low, Low - Minimal Effort Low, High - Keep Satisfied High, Low - Keep Informed High, High - Key Players
12
Q
Kotler Brand Strategy
A
General brand strategies:
Line Extension (New variants of existing lines)
Brand Extension (New product category)
Multibranding (Launch several brands in same category)
New Brands (New launch)
Co-branding (Two brands combined in an offer)
13
Q
BCG Matrix
A
Asses internal balance of product portfolio:
[Relative Market Share Vs. Rate of Market Growth]
[Relative share=Own share/ strongest competitor share]
[Growth = industry sales growth, 10%=’High’]
Share,Growth
H,H - Stars
H,L - Cash Cow
L,H - Question Mark
L,L - Dog
14
Q
SWOT
A
Used for position audit:
Internal:
Strength
Weakness
External:
Opportunities
Threats
15
Q
Competitor Analysis
A
Part of environmental analysis
16
Q
Product Life Cycle
A
Assess internal balance of product portfolio:
-Industry life cycle
-Brand life cycle
-Product life cycle
Introduction, Growth, Shakeout, Maturity, Decline
17
Q
Benchmarking
A
Establish best practice in business critical processes:
Internal Benchmarking
Functional Benchmarking (irrespective of industry)
Competitive Benchmarking
Strategic Benchmarking (competitive but aimed at change)
18
Q
Types of Change
A
Balogun & Hope Hailey: Scope - Realignment (Tweak) - Transformation (Major Strategy Change) Nature - Incremental (In stages) - Big Bang (Fast)
=> Adaptation, Evolution, Reconstruction, Revolution [S(R)-N(I), S(T)-N(I), S(R)-N(B), S(T)-N(B)]
19
Q
Lewin Force Field Analysis
A
How to achieve desired state:
Driving forces»Current State«Restraining forces = Desired Outcome
Unfreeze-Move-Refreeze
20
Q
Change Context
A
7 aspects of context to consider (Balogun & Hope Hailey): Scope of Change Time available Need to preserve characteristics Diversity of opinions Resources Workforce Readiness Power to Change
21
Q
Staff resistance
A
Kotter & Schleisinger:
- Education & Communication
- Participation & Involvement
- Facillitation & Support
- Negotiation & Agreement
- Manipulation & Co-Option
- Coercion, implicit & explicit
22
Q
McKinsey 7S
A
Aspects of culture to consider when undergoing cultural change: 'Hard' Aspects: - Strategy - Structure - Systems 'Soft' aspects: - Skills - Staff - Style
- Shared Values
23
Q
Balanced Scorecard
A
Kaplan & Norton developed balanced scorecard for broader strategic focus: Financial Customer Internal Learning & Innovation
24
Q
Strategy
A
Strategy is a HOW an organisation seeks to acheive it’s goals
25
How to develop strategy
```
Johnson, Scholes & Whittington:
Design Lens (Formal, detailed, focused plan)
Experience Lens (Flexible plan, trial & error, based on experience)
Ideas Lens (No plan, exploit opportunities & new ideas)
```
26
RPM
```
Rational Planning Model:
Corporate mission & objectives
Position Audit
Environmental analysis
Corporate appraisal
Strategic option generation
Strategic evaluation & choice
Strategic implementation
Review & Control
```
27
Mintzberg 'Crafting emergent strategies'
```
Alternative to RPM:
Planned Strategy
Realised Strategy
Craft in emnergent strategy
Craft out submergent strategy
```
28
Freewheeling Opportunism
Alternative to RPM:
Determine organisational goals but don't plan how to acheive them
Exploit opportunities
29
Logical incrementalism
Alternative to RPM
No clear plan
Feel forward through small steps & decisions
Usually taken by customer facing staff, not strategic apex
30
Resource Based
```
Resource based approach to strategy
Johnson, Scholes & Whittington
-Strategic capability (Resources & competences needed for an organisation to survive)
-Tangible Resources
-Intangible Resources
-competencies
-threshold competencies/ resources
-unique competencies/ resources
```
31
Lynch - Mission Statement
Mission statement should:
- Be specific enough to influence an individuals behaviour
- Be realistic & Acheivable
- Reflect the org's distinct advantages
- Be flexible to the demands of a changing environment
32
Mission statement can be useful
- Can promote goal congruence
- May provide a focal point for new strategies
- Allows the org to communicate core values to stakeholders
33
Objective Setting
```
Specific
Measurable
Attainable
Relevant
Time bound
```
34
CSF
Critical success factors are those components of strategy where the organisation must excel to out-perform competitors
35
CSR
Corporate Social Responsibility
- Strong View (a company exits for the benefit of all stakeholders
- Weak View (a company exists to maximise shareholder wealth)
36
Dealing with uncertainty
```
Real Options
Forecasting
Game Theory
Scenario Planning
Foresight
```
37
Real Options
- Option to abandon
- Option to wait
- Follow on investments
Value using Black Scholes Model
38
Forecasting
Trying to predict what will happen
- Time series analysis (identify long term trends & seasonal variances)
- Regression analysis (looking for correlation)
- Econometrics (application of economic variables to computer modelling)
- Jury Forecasts (advice sought from a panel of experts)
- Delphi method (anonymous experts responding to a detailed questionnaire)
39
Game theory
Simulating competitor reactions to strategy
- Win-Lose (adopt)
- Lose-Win (avoid)
- Lose-Lose (avoid. e.g. oligopoly-few key players-mobile providers)
40
Scenario planning
Model outcomes
Based on changing variables
Around which there is a high degree of uncertainty
41
Benefits of scenario planning
- Identification of key uncertainties allow for better planning around these
- Management are forced to look externally
- Insight is provided into the future of the industry, helping to plan strategy
- The organisation as a whole becomes more future orientated
- Fewer suprises as outcomes are anticipated
42
How to do scenario planning
1. Define scope of project & identify major stake holders
2. Identify key trends & areas of uncertainty
3. Construct initial scenarios & check them for consistency
4. Identify further research needs
5. Develop quantitative models used to formulate competitive strategies
43
Why do environmental modelling
Uncertainty may cause:
- planning horizons to be shortened
- strategy too become conservative
- emergent strategy to prevail over planned strategy
44
The importance of marketing
A successful marketing strategy can be a key source of competitive advantage through the development of:
- Brands
- Distribution channels
- Product innovation
- Customer relationships
45
Strategic Marketing: DPP
Products view:Direct Product Profitability Analysis
- Sell more products to drive success
- Fully understand profitability of the products to maximise performance
Limitations:
- Internal focus on cost (vs external focus on customers)
- Ignores inter-relations between products (Dysfunctional)
- DPP analysis may cost more than it saves
46
Strategic Marketing: Branding
Differentiates using three key elements:
- Name/ logo
- Colour Scheme/ Livery
- Associations
47
Strategic Marketing:Customer view
CPA-An analysis of revenue streams & service costs associated with specific customers/ customer groups
Lifecycle-value of the entire customer relationship
Relationship-focus on customer retention, Transactions marketing Vs. Relationship Marketing
48
Marketing mix
Product, place, price, promotion
49
How to create marketing strategy
1. Define market & key requirements for success in the market
2. Determine performance differentials (understand gaps in the market that could be entry points)
3. Determine difference in competitive programmes (get to know competitors
4. Profile strategies of competitors (Threats & how to deal with them)
5. Determine strategic planning structure (How strategic marketing effort will be planned & managed)
50
Earl's 9
Earl's 9 reasons for IT/IS strategy (CHESSSTAR):
Critical to the success of the business
High cost (Capital & Revenue perspective)
Effective management is required due to it's specialist nature
Source of competitive advantage
Structural changes may occur within an organisation, or industry as a whole
Stakeholders are affected (therefore analysis of the impact is required)
Technical issues both within and outside the IT department
All levels of staff are affected by IT
Revolutionary changes are possible e.g. Banking
51
E-commerce
- challenges traditional business models (Disintermediation, Reintermediation, Countermediation)
- small companies can move instantly into the global market place
- it has led to new business partnerships
- it promotes transparent pricing
- it facilitates personalised attention
52
Innovation
'The successful exploitation of new ideas'
- Offer (products/ service) innovation
- Process innovation
53
BPR
BPR is the fundamental rethinking and radical redesign of business processes, to give dramatic improvements in:
- Cost
- Quality
- Service
- Speed
54
Prince 2
- proven framework
- output (product focussed)
- documentation
- flexible to business case
- allocates responsibilities
55
Traditional organisational structures
- Classical (Fayol, Taylor, Weber)
- Human relations (Mayo, Mintzberg, Maslow)
- Contingency (Handy, Woodward, Burns & Stalker)
56
Criticisms of traditional organisational structures
- general trend away from long term planning to the identification of core competencies (5yr plan to 2yr plan)
- Management power has been diluted by the increasing influence of stakeholder groups
- Greater need for innovation & flexibility
- Greater need for detailed product/ customer profitability analysis
- Greater emphasis on external sources of information (competitors)
57
Network Structure
Modern alternative to traditional organisational structures:
- Core company
- Specialised design company
- Specialist manufacturing company
- Specialist finance company
- Specialist distribution company
- Specialist sales & marketing company
58
Change Management Process
1. Analyse competitive position (Pestel/ P5F)
2. Determine type of change (Balogun & Hope Hailey)
3. Identify desired state(Lewin Force Field)
4. Analyse the change context (Balogun & Hope Hailey)
5. Determine design choices
6. Design the transition process (Bologun & Hope Hailey)
7. Manage & evaluate
59
Change design choices
- Change path (Nature & Scope)
- Start point (Top down or bottom up?)
- Change style (Kotter & Schleisinger)
- Change target (Strat, Tact, Op)
- Change interventions (Levers/ mechanisms to be deployed)
- Change roles (Who leads/ directs the change)
60
Change levers/ mechanisms
Balogun & Hope Hailey:
- Technical changes (Systems/ Structures)
- Political interventions (Direction from senior management)
- Cultural interventions
- Interpersonal interventions
61
Control Styles
- Strategic planning style (strategy dictated from HO)
- Strategic control style (Halfway house, some strategic guidelines with financial controls)
- Financial control style (divisions controlled by imposition of strict financial targets)
