IA1 Flashcards
(47 cards)
1
Q
4 parts of Ansoff matrix
what does vertical and horizontal growth focus on
A
- Market development - Diversification
- Market penetration - Product development
2
Q
motivations for expansion
A
- access to broader market
- PP
- competitive advantage
- expanse reductions
- reducing risk of decline
- increased buying power
- production cost reductions
- an offer by a foreign distributor
- economies of scale
3
Q
Domestic markets:
A
the supply and of and demand for goods and services within a single country also referred to as internal market.
4
Q
Global markets:
A
globalisation occurs when business activities occur beyond the borders of the home country and involve at least one other country. GDP is best measure of economic strength
5
Q
emerging markets
A
- must consider stability of the market they enter
- large market share
- access to customers with GDI
- access to capital and resources in untapped market
- build as prestigious/ scarce
- higher than normal return for investors
6
Q
environmental factors
A
- socio- cultural
- technological
- economic
- environmental
- political
- legal
- ethical
7
Q
what do you need to investigate before expansion?
A
culture communication etiquette political and legal systems logistics
8
Q
developing a niche market
A
- A small segment of the market that has a unique set of characteristics. Smaller market that focuses on specific demographic, product or service.
- Can be strategically developed by an expanding business or can evolve organically.
- Allows smaller businesses to compete with larger businesses.
9
Q
innovation for expansion:
A
- apply innovative theories or strats for all four key business functions.
- Applied to: product, process, marketing or organisational methods of business.
10
Q
competitive strategies
A
- evaluating finance options
- financing strategies
- managing finances
- human resource strategies
- managing human resources in maturity
11
Q
evaluating finance options
A
triple bottom line
cost benefit analysis
12
Q
financing strategies
A
private equity
going public
money in capital markets
dividends
13
Q
managing finances in maturity
A
financial management
ethical and sustainable decisions
financial controls
14
Q
human resources strats
A
- employer of choice
- diverse workforces
- fostering intrapreneurship
- leaders and managers—> fielder’s contingency model
15
Q
managing human resources in maturity
A
the employment cycle
- development stage - maintenance stage
the role of motivation theories
- maslows hierarchy - herzbergs two factor theory - lockes goal setting - seligmans positive psychology model
16
Q
job cycle
A
1) acquisition
2) development
3) maintenance (can go back to development)
4) separation
17
Q
development stage
A
- focuses on building the culture of the business and inducting onboarding staff
- cycling through this stage ensures staff have opportunity to stay up to date
- a good program will lead to enhanced retention, minimising risk of staff stagnation and dissatisfaction
18
Q
maintenance stage:
A
- Leadership and management of employees is crucial to this stage.
- Employees’ productivity peaks at this stage.
- Staff need to continue to be motivated
- Good business culture is needed.
- Need to build and foster relationships with staff, keep open communication and transparency.
19
Q
Maslow’s hierarchy of needs
A
- Self actualization: need for personal fulfillment (growth and development)
- Esteem needs: need to feel good about themselves ( recognition)
- Social needs: feel apart of a group
- Safety needs:shelter, feel secure and safe
- Physiological needs: eat drink work sleep reproduce
20
Q
Locke’s goal setting theory
A
SMART goals
21
Q
Seligman’s positive psychology theory
A
- employee wellness leads to own intrinsic motivation and improved bottom line for workplace
- focuses on wellbeing
- implementation of positive psych by leaders and managers is designed to help employees live their best lives.
22
Q
Herzberg’s two factor theory
A
job dissatisfaction: basic hygiene needs
job satisfaction: motivator factors
hygiene needs need to be fulfilled before job satisfaction can occur…
23
Q
employer of choice
A
- want to work there
- recruitment retention strat
- trend towards flat leadership
- needs to be genuine
- strats to reflect unique needs and motivations of employees and quality of relationship or psychological benefits of employee and employer interactions
- can come from working conditions, flexibility, the lifestyle benefits or progression opportunities
- need diversity in workplace
24
Q
intrapreneurship:
A
- seeks ways to contribute to objectives
- take proactive steps to improve operations
- ensure business meets targets
- innovate ways to increase productivity
- motivate teams
- passionate about success
- need support from higher managers
- given access and encouragement
25
types of intrapreneurs:
- the enabler
- the producer
- the opportunist
- the advocate
26
different types of leaders
- authoritative
- charismatic
- bureaucratic
- authentic
- transactional
- transformational
27
leadership in maturity stage of business
- no right way for effective leadership
- each stage will call for different strengths and focuses
leader is to
- become the enabler
- needs to mentor employees
- adopt different managerial skills that will ensure efficiency and effectiveness across 4 functional areas
28
Fielder's contingency model
- what type of leader will be effective
- how leaders will affect group situation
- states there is not one best way to lead
- how favourable the situation is for the leader
- amount of influence has
29
challenges in maturity
- environmental factors
- changes in society
- changes in economy
- changes in market conditions
- emerging technology
- innovation in industry
all equal increase in competition or moving into a new market.
30
strats to remain competitive in mature market
- R&D
- cut costs
- outsourcing
- adjusting supply chains
- reducing operational costs
- audit all areas of business to ensure efficiency
31
HR strats in mature business
- employer choice
- work- life balance
- fostering intrapreneurship
- workplace diversity
- inclusive workplace
- leadership styles
32
growth strategies in maturity
- expansion
- cash flow sustainability
- financial management POLC
- risk management strat
- ethical sustainable financial decisions
33
POLC
planning, organising, directing (leading) and controlling specific business activities and funds.
34
Private equity
investment of money into private companies not listed on a public exchange.
- comes from institutional investors and accredited investors
35
advantages of priv equity
- capital
- increased company worth
- credibility
- no personal liability
- expertise from investors
- accountability
36
disadvantages of priv equity
- dilutes ownership
- repayment costs can be more than debt financing
- loss of control and flexibility
- investors can be difficult to source
37
Money in capital markets
- buyers and sellers can be individuals or institutions
- investors/ individuals use to increase own wealth
- stock markets and bonds are part of cap markets
- high risk for businesses that rely on this for growth
38
going public
- opportunity for a business to get large capital injections by offering shares in the business to the general public on the ASX
- capital injections used for R&D
- generate publicity through new people
- leads to increase in market share
- provides company founders with an exit
39
government grants and incentives
- help support growth of the business
- in maturity grants and funding designed to further growth and increase the exporting and global business
- most are short-term and come with strict guidelines and expectations.
40
triple bottom line
- people: social factors
- planet: environmental factors
- profit: financial factors
41
people (triple bottom line)
- wages
- customer values
- working conditions
- unemployment rates
- median household income
- violent crimes per suberb
- average travel times
- female labour force
42
planet (tripple bottom line)
- electricity consumption
- fossil fuel consumption
- solid waste management
- changes in land use/ cover
43
profit:
- job growth
| - employment distribution by sector
44
CBA
- used to verify that an investments financial benefits are greater than estimated costs
1) source benefit estimations
2) source cost estimations
3) Calculate estimated benefits and subtract estimated costs over a time period to determined the payback period
4) compare outcome of analysis, allows analysis of feasibility of business strats.
45
expansion strategies
- niche markets
- innovation
- research and development
- new and emerging technologies
46
modes of entry:
- international agents
- licensing
- strategic alliances
- overseas manufacturing
- sales subsidary
47
financing options:
- priv equity
- money in capital markets
- dividends
- going public
- government grants and incentives
