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Flashcards in Revision Class Deck (67):
1

The Rules of the game

Political Economical Socio-cultural Technology Ethical Legal Also Financial and physical

2

Business responsibilities (carroll 1991)

Desired (philanthropic responsibility) Expected (Ethical responsibility) Required (Legal responsibility) Required (Economic responsibility)

3

Competing perspectives

Neoclassical (Friedman’s view) Vs Stakeholder view OR BOTH - Strategic corporate philanthropy (Porter and Kramer)

4

New-classical view

Economic - generating profits for the business Friedman

5

Porter and Kramer

Strategic corporate philanthropy view

6

Porters competitive forces

Threat of new entrants Supplier Power Buyer power Threat of substitute products Competitive rivalry (in the middle)

7

Different types of competitors

Those who want to take your customers (same product) Those who want to sell a different product (same customers/different distribution channel) Those who want the same resources (raw materials/labour/services) fro either the same or different suppliers

8

Resource based view

Barney (1991) -Firm performance is not determined by response to external competitive environment - Differences in performance can be explained by the resources it has or as access too, which can be classified as either: Valuable Inimitable Rare Organisational Don’t forget (Organisational, financial, human, technological and physical are all resources)

9

Core competencies definition

-Activities that make use of resources -Provides value to the customer -Competitors can’t easily obtain or imitate ‘The companies foundation for competitiveness’ (Gary Hamel, 1990)

10

Business Strategy - Strategic decision coverage

Strategic decisions are about: -

 

Scope of an organisations activities

Competitive advantage over competitors -

Addressing change in the business environment (adaptability)

Long term direction of the organisation

Building on an organisations capabilities

Stakeholder happiness meeting the values and expectations of

11

Business Strategy - strategic decisions and direction depending on firm size and type

Enterprise Strategies -‘What kind of business should we be in’ -‘What business should we be buying/selling/‘? Business Units (SBU) -What product markets should we be in -How do we gain a competitive advantage in those markets’? Small Firms -Where do we go from here?

12

SWOT Analysis

Strengths, weaknesses, opportunities and threats REMEMBER INTERNAL AND EXTERNAL

13

The Market (Basic economic diagram) 

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14

Porters Generic Strategies 

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15

Porters Generic Strategies (with examples)

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16

Miles and Snow (1984)

To align with the environment, managers face 3 problems:

 

-Choosing the market or industry (entrepreneurial problem)

-Making the product or service (engerneering problem)

-Organising the work (administrative problem) 

 

 

17

Miles and Snow (1984) adaptation strategies 

-Defenders (concentrates on protecting its current markets, maintaining stable growth, and serving its current customers)

-Prospector (highly innovative firm that is constantly seeking out new markets and new opportunities and is oriented toward growth and risk taking)

-Analyser ( maintains market share and seeks to be innovative, although usually not as innovative as an organization that uses a prospector strategy)

-Reactor ( has no consistent strategic approach; it drifts with environmental events, reacting to but failing to anticipate or influence those events.)

18

Strategic Triangle (Ohmae 1983)

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19

Manangers role 

Planning 

Organising

Leading 

Controlling 

20

Strategic linear planning 

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21

Strategy implementation model

Mintzberg, H. (1994)

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22

Mintzberg (1973) Manager roles 

Informational Roles (spokesperson)

Interpersonal (Leader, figurehead)

Decision roles (entrepreneur, negotiator)

23

Stewart (1967) Manager Roles

Emissaries (outward facing)

Writers (1:1 solutions)

Discussers (informal groups)

Trouble-shooters (highly fragmented)

Committee members (formal meetings)

24

Mangement vs Leadership 

Leadership is one competence among many needed by a manager

The tasks of management are Planning, Organising Leading & Controlling

25

3 Management Approaches 

Taylor

Weber/Fayol

Mayo (human relations management)

26

Taylor management school of thought

-Managers are experst and decide on the best way to work 

-Workers are interchangable 

-Financial rewards should be used as incentives 

27

Weber/Fayol management school of thought

-Management is a general skill

-Managers are interchangable admins in the hierarchy

-Expertise lies is in the firm (workers) being managed

-Decision making should be done impersonally & rationally 

 

28

Human Relations Management

–Elton Mayo (1880-1949)  & Mary Parker Follet (1868-1933)

–Hawthorne Experiments

–Social aspects of jobs are important to productivity

–Considerate supervision  = satisfied worker

–A satisfied worker will produce more

–“A Happy worker is a more productive worker”

29

Hawthorne Experiment 

-Relay assembly test room (1927-1932)

-“That individuals performance can improve solely as they are singled out for a study, not because of any of the factors being tested.”

-Shows the importance of social aspects of work and the informal organisation

30

Mechanistic Structure 

-Specialized tasks 

-Hierarchical Structure of control

-Knowledge at the top

-Vertical communitcation 

-Loyaltiy and obedience 

(Burns and Stalker 1961)

31

Organic Structure 

-Roles loosely defined 

 -Network structure of contacts 

- Knowledge widely spread

-Horizontal communication 

-Commitment to goals 

(Burns and Stalker 1961)

32

Strategies and structures 

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33

Human Resource Management Stratagies 

Hard HMR

–Workers are objects, resources

–Everything driven by business case

–Instrumental use of labour to meet business requirements

–Take tough decisions - work intensification, flexibility, low pay, low security

–Implicitly unitarist

 

Soft HMR

–Workers are human

–Nurture employee loyalty, provide satisfying work

–Employee participation and involvement

–Stakeholder approach - all interests valued

–Implicitly pluralist

 

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34

Value Chain Diagram 

Porter (1985)

 

Inbound logistics 

Operations 

Outbound Logisitics 

Marketing and sales 

After Sales service 

35

Value Chains 

Source 

Their suppliers 

Your suppliers 

You 

Your custimers 

Their customers 

 

 

-Value chain extends beyond the firm 

-Control of suppliers or distribution channels 

36

Multinational Enterprise Definition 

-Headquarterd in one country, operations in other countries (think Nestle)

 

-Centrally planned global strategy 

 

-Foreign Direct investment (FDI) (asset ownership oversees)

 

37

Monoploy Definition 

One supplier/producer of the goods 

High barriers to entry

Supplier Power 

38

Oligopoly Definition

-Small number of competing suppliers 

-High barriers to entry 

-Competitive rivalry 

-One firms behaviour affects the others 

- Cartels and collusion 

39

Monopsony definition

One customer/Buyer 

-Buyer Power 

40

Globalisation

Globalization or globalisation is the trend of increasing interaction between people or companies on a worldwide scale due to advances in transportation and communication technology, nominally beginning with the steamship and the telegraph in the early to mid-1800s

 

Pros

-Economic Growth, Increased efficiency, Higher wages and reduced Poverty. Firms no longer representative of nation states. Global action on disease, poverty and the environment.

 

Cons

-Widening gap between rich and poor nations. Exploitations of big businesses. Globalisation of criminal activity  

41

MNEs vs MNC vs TNC

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42

Dunning’s “eclectic” theory (OLI)

A.Only some firms, that possess some Ownership (O) – specific advantages, internationalise their activities

B.They locate production abroad if foreign countries offer some Location (L) – specific advantages

C.They retain full, partial or no control at all, according to the strength of Internalization (I) – specific advantages

43

Effects of MNEs

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44

Composite, regulare and occasional goods 

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45

Marketing definition 

Not synonymous with sales or advertising. 

Purpose of business is to create and keep customers, marketing is the distinguishing, unique function of the business "peter drucker'

46

The production concept

High production efficiency, low cost, mass distribution. 

 

 

47

The product concept 

Superior product, product improvment 

48

The selling concept 

Aggressive selling and promotion 

49

The marketing concept 

–Customer centric sense and respond, creating superior customer value.

50

The relationship Concept 

Customer Relationship & loyalty 

51

The 4 ps of marketing 

Product - customer wnats and needs 

Price - cost to the user 

Place - convenience 

Promotion - communication

52

Aditional 3 marketing Ps

- People (employees, culture, training)

-Process (Time, efficiency, effectiveness)

-Physical Evidence (Atmosphere and environment)

53

Segmentation, targeting and positioning

Segmentation (grouping customers with similar needs)

Targeting (choosing target segment)

Position (brand/product in the mind of the customer)

54

Product position definition 

•A product’s position is the way a product is defined by consumers

•There are many attributes

–Quality, Price, Functionality, performance, reliability, luxury

•It is the place it occupies in consumers' minds relative to competitors offerings

•In today's markets consumers are faced with many products and they tend to group and rank products according to their perceptions

55

Representationality & Functionality + dominant function

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56

Customer value diagram

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57

Business to consumer 

Consumer Transactions - single step scale (occasional purchses, repeat purchase)

 

Brand Important - One to many marketing/Market pricing 

 

Channel Intermediaries - Wholesalers, Retailers, The Internet, Efficiency  

58

Business to Business 

-Business Transactions (more complex decision process)

 

-Small number of large transactions 

 

-Few customers 

 

-Direct selling 

 

-Economic Benefits 

59

Contingency View 

- Driver of change is external 

-Take oppertunities 

-Counter threats 

60

Business benefit view 

Porter

 

-Driver of change is internal

-Persue cost leadership 

-differentiate from the competition 

61

Institutional View 

DiMaggio & Powell

 

-Decision makers are forced into copying other 

-Be seen to be doing something 

-Especially in situation uncertainty 

62

Linear Approach Management 

•Limitations of the Linear Approach

–Change is orderly

–Change has a beginning and an end

–Change is deliberate

–Change is predetermined, and rational

•Fallacies of strategic planning

–Predetermination

–Detachment

–Formalisation

–Too determinist?

                    (Mintzberg, 1994)

•Emergent Change

–Incremental

–Transformation is slow

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63

What do managers really do? 

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64

3 Management approaches 

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65

Levels of analysis 

•The Environment

–The state, the law, society & CSR

•The Marketplace

–Competition

–Equilibrium & Market Failure

•The Market

–Customers

–Products

–Segmentation, Targeting & Positioning

–B2B & B2C

•The Firm

–Strategy

–Structure

•Managers & Management

–Linear vs Emergent Planning

–Forces for Change

–Customers

–Products

–Segmentation, Targeting & Positioning

–B2B & B2C

•The Firm

–Strategy

–Structure

•Managers & Management

–Linear vs Emergent Planning

–Forces for Change

66

Analysis Toolbox 

•PESTEL

•SWOT

•Supply & Demand

•Resource Based View

•Porters Five Forces

•BCG Matrix

•P’s of Marketing

•Product Life Cycle

•S Curve/Diffusion Curve

67

Supply chain vs distribution channel

Supply chain is the procedure of all parties occupied in fulfilling a customer request. ... A distribution channel is a chain of businesses or intermediaries through which a good or service passes until it reaches the end customer. It can comprise wholesalers, retailers, distributors and even the internet itself.