Specification Areas Flashcards
3 internal stakeholders
- employees
- managers
- shareholders
5 external stakeholders
- suppliers
- banks
- government
- local community
- customers
Shareholders of private limited company:
- likely to be wealthy
- venture capitalists
- provide advice
- can sometimes interfere with the running of the business
Shareholders of public limited company:
- individuals or large business
- shareholders only have voting rights
Stakeholder mapping
1) keep satisfied
2) manage closely
3) monitor
4) keep informed
internal influences on product development (5)
- availability of budget
- talent
- past success/failure
- need to increase sales
- how old current products are
external influences on product development (5)
- gap in market
- government policies
- customer expectations
- competitors actions
- new technology
predatory pricing
price set low by dominant competitor to undercut competition
ways to analyse financial performance (6)
- budgets
- cash flow forecast
- breakeven point
- profit margins
- receivables
- payables
value of cash flow forecasts (3)
- highlight when and by how much a business will be short of cash
- anticipate and prepare for cash flow problems
- avoid running out of cash and liquidation
ways to increase sales (4)
- increase promotions
- reduce price
- use product life extension strategies
- find new markets and segments
ways to reduce fixed costs (4)
- find cheaper premises
- reduce staff number
- capital intensive
- increase capacity utilisation
organic growth methods (5)
- open new branches
- invest in new tech and facilities
- increase capacity
- develop new products
- enter new markets
benefits of product innovation (4)
- brand loyalty from first mover advantage
- price skimming
- price penetration
- publicity
benefits of process innovation (6)
- efficiency
- quality
- faster production time
- lower unit cost
- mass customisation
- flexibility
Greiners growth model
- creativity
- leadership
- direction
- autonomy
- delegation
- control
- coordination
- red tape
- collaboration
- ’?’
drivers of retrenchment (7)
- high costs
- poor return on investment
- financial difficulties
- failed takeover or merger
- economic downturn
- saturated market
- new CEO
methods of retrenchment (6)
- reduce output
- make redundancies
- withdraw product form market
- sell off parts of the the business
- outsource
- de-merger
features of culture (5)
- the way stakeholders are treated
- the type of HR strategy
- diversity of the workforce
- structure
- decision making
Charles handy culture model
- Power - Task
- Role - Person
reasons for changing culture (6)
- decline in performance
- loss of staff
- demotivation
- lack of innovation
- poor customer service
- loss of management control
Hofstedes national cultures
- power distance
- individualism
- masculinity
- uncertainty avoidance
- long term orientation
Strategic planning process
1) mission statement
2) SWOT
3) corporate objectives
4) decide on strategy
5) implement strategy
6) evaluate success
pros of using network diagram (2)
- establishes quickest time for completing a project
- identifies critical tasks
