Theories

Question 1

Ansoff Matrix

Answer 1

used to categorise different strategies that are implemented by a business. For a business to grow and achieve long-term business success. To evaluate a growth strategy

Question 2

Variables that growth has to consider

Answer 2

The product(s) intended for sale, The market in which the business operates

Question 3

Two options for growth in terms of market

Answer 3

To remain in the existing market, to enter new markets

Question 4

Two options for growth in terms of product

Answer 4

Sell existing products, develop new products

Question 5

Market Penetration (top left)

Answer 5

The business attempts to sell a greater quantity of an existing product to consumers in an existing market.

Question 6

Product development (top right)

Answer 6

Involves selling new products to existing customers.

Question 7

Market development (bottom left)

Answer 7

Requires the business to sell an existing product to new consumers

Question 8

Diversification strategy (bottom right)

Answer 8

This is the process of selling new products to new consumers

Question 9

What can Ansoff’s matrix be used for?

Answer 9

Effectively asses the appropriateness of a particular strategy: the risk that will be taken, by referring to current state, whether it is a good idea

Question 10

4 types of corporate culture (gods of management - Charles Handy)

Answer 10

Power culture, role culture, task culture, person culture

Question 11

Business culture depends on….

Answer 11

Company history, ownership, organisation structure, technology, environment

Question 12

The power culture - cooperate culture

Answer 12

Commonly found in small entrepreneurial organisations, the power culture is described as a web. Centralisation of power is the key feature of this culture, there is a central power source, and rays of influence are spread out from the centre

Question 13

Advantages Power culture - cooperate culture

Answer 13

Decisions can be made quickly as there is little communication

Question 14

Disadvantages Power culture - cooperate culture

Answer 14

Results in a D motivated workforce due to lack of consultation and size can be a problem – the web can break if it has to support too many activities

Question 15

The person culture - corporate culture

Answer 15

Individuals are central, the organisation exists only to serve the interests of those within it. Can be found in communities such as Kibbutzim - Israel’s cooperative communities. Other examples included barristers and architects partnerships, where there is a cluster of individuals all operating at the same level

Question 16

Advantage The person culture - corporate culture

Answer 16

Many people opt for this culture since hierarchies are impossible except by mutual consent

Question 17

The role culture - corporate culture

Answer 17

Based on rules to abide by, and a hierarchy, role culture is based on an employee’s position in an organisation - so a manager has more power than an employee. Role culture organisations are organised by business functions such as HR, marketing etc. so each staff remember works to a specific role. For example, government departments in the public sector

Question 18

Advantages - The role culture - corporate culture

Answer 18

Best suited for organisations which are stable and not subject to constant change

Question 19

Disadvantages - The role culture - corporate culture

Answer 19

There is little scope for individual initiative and individual development, and people avoid taking risks

Question 20

Task or team culture - corporate culture

Answer 20

With emphasis placed on completing a specific task, task cultures are job or project orientated. Instead of individuals determining the way in which the work is organised or even the rules that govern how work should be organised in a task culture the task determines the way in which work is organised. Examples of task culture are found at management consultancy firms like PWC. It is best suited when projects require specific skill sets and problem solving

Question 21

Advantages Task or team culture - corporate culture

Answer 21

Provide rewarding environments to work in, employees have considerable freedom

Question 22

Disadvantages Task or team culture - corporate culture

Answer 22

There is a lack of formal authority, making management and control very difficult

Question 23

Influencing corporate culture

Answer 23

A long term process which is dependant on factors such as the size of the business, the way it is managed, the process mergers etc. what often changes is not culture, but is the way individuals think, value, and do

Question 24

Motivation theories

Answer 24

Taylor, Maslow, Herzberg, Adams, Pink

Question 25

Taylor - scientific management

Answer 25

Reduce inefficiency of workers and managers through objective laws, encouraged specialisation and repetitive work, clear division of work between managers and workers, reducing inefficiencies allowed for higher wages

Question 26

John Stacey Adams - equity theory

Answer 26

if the comparison is equal, the employee feels treated fairly, if their inputs feel greater than the outputs, they may respond by reducing effort, becoming disgruntled, absenteeism, and in extreme cases, resignation

Question 27

Equity

Answer 27

A radio (balance) between an individual's job inputs and outputs in comparison with those of other people

Question 28

Input examples:

Answer 28

Effort, loyalty, skill, ability, commitment, enthusiasm, hard work, adaptability, determination

Question 29

Output examples:

Answer 29

Salary, promotion, status, recognition, praise, reputation

Question 30

Frederick Herzberg - two factor theory

Answer 30

Motivators and hygiene factors

Question 31

Herzberg two factor theory - motivators

Answer 31

Sense of achievement, nature of job, recognition of achievement, responsibility, chance of promotion, possibility of improvement

Question 32

Herzberg two factor theory - hygiene

Answer 32

Pay, inability to develop oneself, conditions of work, treatment at work, relationship with management, company policy, feelings of inadequacy

Question 33

Maslow - hierarchy of needs

Answer 33

Psychological needs of employees- The 5 levels in a hierarchy of human needs that employees need to have fulfilled at work: self-actualisation, esteem, social, safety, and psychological

Question 34

Needs in Maslow’s hierarchy

Answer 34

Self-actualisation (intellectual needs, fulfilling potential, achieving targets), esteem (self-respect, level of status), social (felling wanted, sense of belonging, part of team), safety (safe working environment, job security), psychological (basic needs - eg: food, shelter)

Question 35

Daniel Pink's three intrinsic elements to motivation at work

Answer 35

Autonomy, Mastery Purpose

Question 36

Autonomy - Pink's three intrinsic elements to motivation at work

Answer 36

The desire to direct our own lives 4 main aspects include time, technique, team and task. Eg: some people allow workers to peruse individual projects. If managers want employee engagements they should encourage self direction and autonomy of employees

Question 37

Mastery - Pink’s three intrinsic elements to motivation at work

Answer 37

The desire to improve at something that matters, and enjoy satisfaction from progress. Lack of opportunity for self-improvement makes employees more demotivated. Managers should set tasks not too easy or too challenging, but allow them to stretch and develop skills and experience

Question 38

Purpose - Pink’s three intrinsic elements to motivation at work

Answer 38

The desire to do things in service of something larger than ourselves, people intrinsically want to do things that matter. EG: entrepreneurs are motivated to make a difference rather than just a profit. People want their time at work to matter. To do this, company mission and goals should be well communicated, employees need to understand these and appreciate how their work fits into what the organisation is about

Question 39

What is the PLC?

Answer 39

The progression of a product's sales over its lifetime

Question 40

Four stages of the PLC

Answer 40

Introduction, growth, maturity, decline

Question 41

Best method to analyse a product portfolio and determine balance?

Answer 41

Boston consulting group matrix (BCG matrix)

Question 42

Two variables of the BCG matrix

Answer 42

Relative market share (x axis) Market growth rate (y axis)

Question 43

How does the BCG matrix fit within the PLC

Answer 43

The four categories in the matrix equate to the four stages of the product lifecycle

Question 44

Question Mark

Answer 44

Recently introduced product which has not yeast established itself, hence why it is hard to predict it's future (low share, high growth)

Question 45

Dogs

Answer 45

(Low share, low growth) most people remove dogs from their product portfolio as the drain resources, but in same cases they can still make some revenue. EG: If a newer car model is out, some people will still need new parts for their older car even if the model is hardly selling

Question 46

Cash Cows

Answer 46

(high market share, low growth rate) Basically the maturity stage of the PLC, well established products, dominant positions in the market that deliver a significant amount of income, and is not costing the business much to maintain

Question 47

Star

Answer 47

(High share, high growth) They have rapid growth and dominant market share, they can be seen as market leading products, and they require a lot of investment to keep their position and to lead over competitions. It is hard to tell whether the market will continue to grow or go down

Question 48

BCG aim

Answer 48

To allow an organisation to plot their products on the Matrix to see whether they have a healthy product portfolio. An unbalanced portfolio would have too many dogs/question marks, and not enough stars/cash cows

Question 49

Four strategies that a business must decide whether to go froward with

Answer 49

Build, hold, Harvest, Divest

Question 50

Build (strategy)

Answer 50

Question marks or products in the introduction stage that need to be built in order to have them grow into stars, This requires a high level of funding

Question 51

Hold (strategy)

Answer 51

A firm will be keen to maintain the market position of a star product, therefore promotional costs will be high so as to differentiate itself

Question 52

Harvest (strategy)

Answer 52

A firm plans to cash in on its 'crop' (mature product), to 'milk its business' hence why this is called a cash cow

Question 53

Divest (strategy)

Answer 53

Made appropriate for dogs or products in the decline stage, as its market is not growing

Question 54

AIDA model

Answer 54

Attention, Interest, Desire, Action

Question 55

Schein’s theory attributes/artefacts

Answer 55

How the business culture is presented and illustrated to the audience - like the dust cover of a book

Question 56

Schein’s theory professor or espoused

Answer 56

Slogans, statements, and projects of the business - text inside a book

Question 57

Schein’s theory organisational assumptions

Answer 57

How things really work in the business could be the hidden message or purpose (purpose behind the book)

Question 58

3 levels of business culture

Answer 58

Artifacts, basic assumptions, espoused values