next few Flashcards
(14 cards)
What causes resistance to change and how can it be managed?
Resistance: fear, habit, lack of trust, or loss of control.
Lewin’s Force Field Analysis: change = balance of driving vs restraining forces.
Overcome via communication, training, participation, and supportive leadership.
How can a business change its culture, and what are the challenges?
Methods: new leadership, HR policies, training, clear mission.
Barriers: deeply embedded norms, resistance, inconsistent signals, cost/time.
Change more successful if linked to employee engagement and leadership alignment.
What structures support flexibility in a changing environment?
Matrix structures: project teams cross departments (collaborative, complex).
Delayering: fewer layers = faster decisions.
Organic: decentralised, adaptable.
Mechanistic: hierarchical, suited to stable environments.
What is crisis management and why is it important?
Responding to unexpected disruptions (e.g. product recalls, PR disasters).
Steps: quick response, clear communication, accountability, recovery.
Preparedness (scenario planning) builds resilience and protects brand trust.
What is franchising and what are its pros and cons?
Business model where one party (franchisee) operates under another’s brand.
✅ Fast growth, local motivation, shared risk.
❌ Loss of control, brand reputation risk, franchisee disputes.
How does inflation affect business strategy and performance?
Raises input costs, reduces real income → lower demand.
May trigger interest rate hikes → reduced borrowing/investment.
Businesses may adjust pricing, cut costs, or delay investment.
What are PED and YED, and how do they help decision-making?
PED = %Δ quantity ÷ %Δ price.
Elastic (>1): lower price ↑ revenue.
Inelastic (<1): raise price ↑ revenue.
YED = %Δ quantity ÷ %Δ income.
Positive YED = normal/luxury.
Negative = inferior.
Used to forecast demand and pricing strategy in changing economies.
What are the four types in Handy’s culture model and their impact?
Power: Centralised control, quick decisions.
Role: Bureaucratic, rule-based, stable.
Task: Teamwork, flexible, innovation-friendly.
Person: Individual-focused, often in professional fields.
Culture affects communication, motivation, and change readiness.
What is CSR and which models are used to evaluate it?
CSR = Acting responsibly beyond legal requirements (e.g. environment, community).
Carroll’s Pyramid: Economic → Legal → Ethical → Philanthropic.
Triple Bottom Line: People, Planet, Profit.
Supports long-term trust, brand image, and stakeholder alignment.
What are the main types of structure and how do they affect performance?
Tall: Clear authority, slow decisions.
Flat: Empowering, faster comms.
Matrix: Teamwork across departments.
Centralised vs Decentralised: Who holds decision-making power.
What are common decision making models and their usefulness?
Decision Trees: Risk vs reward (probability-based).
CPA: Identifies time-critical tasks.
ARR, NPV, Payback: Evaluate investments.
✅ Logical, comparative, data-driven
❌ Assumptions, ignores qualitative factors.
What is contingency planning and why is it useful?
Preparing for unforeseen events (e.g. IT failure, supply issue).
✅ Minimises disruption, builds resilience.
❌ Time-consuming, doesn’t cover every scenario.
How does e-commerce impact business strategy?
Online sales = 24/7 access, global reach.
✅ Cuts physical costs, expands market.
❌ Needs strong logistics, high competition, data risks.
What is retrenchment and when is it used?
Cutting scale of operations (e.g. downsizing, asset sale) to reduce costs/refocus.
✅ Improves efficiency, survival in downturns.
❌ Low morale, brand damage, risk of cutting too deep.
