unit 10 Flashcards
1
Q
what is Lewis force field analysis
A
force field analysis provides an overview of the balance between forces driving change in a business and the forces resisting change
2
Q
explaining force field analysis
A
- there are forces driving change and
forces restraining it - where there is an equilibrium
between the two sets if forces there
will be no change - in order for change to occur the
driving force must exceed the
restraining
3
Q
examples of forces driving change
A
internal:
- need for higher profits
- poor productivity
- need to change culture
- change of lordship
external:
- customer demand
- competition
- legislation & taxes
- political environment
- economic conditions
- ethics & social values
- technological change
4
Q
why change is resisted
A
- self interest
- misunderstanding
- low tolerance of change
- different assessment of the situation
5
Q
resistance to change
A
- a degree of resistance is normal since
change is:- disruptive
- stressful
- a degree of scepticism can be healthy
especially where there are weakness
win the proposed changes - however resistance will also slow the
achievement objectives
6
Q
example of Lewis model change a primark
A
forces to change:
- competition
- technology
- capacity
forces resisting change:
- employees
- culture
- low margins
7
Q
A
8
Q
reasons to change: self interest
A
- self-interest is a powerful motivator
- raises from a perceived threat to job
security, status and financial position - individuals often place their own
interest ahead of those of their
organisation, particularly if they don’t
feel a strong loyalty to it
9
Q
resistance to change: different assessment of the situation
A
- here there is disagreement about the
need for change or what that change
needs to be - some people may simply disagree
with the change proposed, or they
may feel they have a better solution - this is different from “self-interest”-
the resistance here is based on
disagreement about what is best for
the business
10
Q
resistance to change; low tolerance & inertia
A
- many people suffer from inertia or
reluctance to change, preferring
things to stay “that way they are” - many people need security,
predictability & stability in their work - if there is low tolerance of change
(perhaps arising from past experience)
then resistance to change may grow
11
Q
resistance to change: misinformation & misunderstanding
A
- people don’t understand why change
is needed, perhaps because they are
misinformed about the real strategic
position of the business - perception may be widespread that
there is no compelling reason for
change - perhaps even an element of people
fooling themselves that things are
better than they really are
12
Q
Mnemonic for resistance to change
A
- S elf intrest
- A assessment is issues
- L ow
- T tolerance
- M misunderstanding
- M isinformation
13
Q
overcoming resistance to change,
6 ways of overcoming resistance to change
A
- education & communication
- participation & innovation
- facilitation & support
- manipulation & co-operation
- negotiation & bargaining
- explicit & implicit coercion
14
Q
overcoming resistance to change: manipulation & co-operation
A
- co-operation involves bringing
specific individuals into roles and
positions that are part of change
management (perhaps managers who
are likely to be otherwise resistant to
change) - manipulation involves the selective
use of information to encourage
people to behave in a particular way - may be deemed to be unethical but
perhaps only option if other methods
of overcoming resistance to change
prove ineffective
15
Q
overcoming resistance to change: negotiation & bargaining
A
- the idea here is to give people who
resist an incentive to change - or leave - the negation and bargaining might
involve offering better financial
rewards for those who accept the
requirements of the change
programme - alternatively, enhanced rewards for
leaving might also be offered - this approach is commonly used when
a business needs to restructure the
organisation
16
Q
overcoming resistance ti change: explicit & implicit coercion
A
- this approach is very much the “last
resort” if other methods of
overcoming resistance to change fail - explicit coercion involves people been
told exactly what the implications of
resisting change will be ie. job losses - implicit coercion involves suggesting
the likely negative consequences for
the business of failing to change,
without making explicit threats - the big issue with using coercion is
that it almost inevitably damages trust
between people I a business and can
lead to damaged morale (in the sort-
term)
17
Q
tall structure
A
- may levels of hierarchy
- clear line of authority
- slow decision making
- beneficial in large organisations
- specialised roles necessary
18
Q
flat structure
A
- fewer levels
- faster communication and decision
making - enhance collaboration and
adaptability - struggles with roles
19
Q
matrix structure
A
employees from different departments help speed up projects as well as add creativity, common in IT industries
20
Q
delayering
A
- removing layers of management
- streamline processes
- increased efficiency
- requires carful handling to ensure
that communication remains effective
21
Q
decentralised
A
- distributes decision-making power -
throughout organisation - empower employees and improve
responsiveness to local needs - may lead to inconsistencies in
decision-making
22
Q
what is critical path
A
method for organising activities associated with a particular process in order to find the most efficient way of completing a task
save time
23
Q
network diagram
A
node to show the start and end
EST
LFT
24
Q
what is a strategy
A
- crucial aspect of running a business
- defined plan of action that outlines
the direction a business wants to take
and defines how the plan will cascade
through the organisation by the
allocation of resources - sets the direction for the entire
organisation and helps to align all
employees towards a common goal - ‘serves as a road map for a firm,
guiding its octopus and decisions to
achieve its goals and stay competitive
in the marketplace’
25
best business strategies, Tesla
- meant to create a 'minimal viable
product', Tesla didn't
- long term goal - biggest car brand
in the world
- released first car being $200,000
- knew he wouldn't make mass sales
or profit
- aim 'to create the most compelling
car company of the 21st century by
driving the worlds transition to electric
vehicles
26
how value was Tesla in 2022
- 76 billion
- leading competitor
27
what can we learn from Tesla
- supply chain strategy is one of the
most brilliant moves they've made
- batteries can only supply to Tesla
- buys out battery company -
diversification
28
why strategies fail, McDonalds
- salads fail to sell, and they make you
fat
- 2005, launched salad
- didn't sell, 2% of overall sales revenue
29
what did mcdoanlds do
- added dressing, chicken
- went up to 3% of revenue
30
what ca we learn from McDonalds
- stick to core competencies
- need to embark why your doing
and what problems your going to
solve
- started off s trying to mitigate
repetitional risk, then changed to
trying to drive extra revenue
31
difficult of strategic decision making
- making strategic decisions us difficult-
there are so many factors which
businesses have to consider, to least
the stakeholders who will be affected
- strategic decisions should be
communicated effectively to the
stakeholder so that they are aware of
what the change will entail
32
mintzberg on emergent strategies
- 'a pattern of action that develop over
time in an organisation in the absence
of a specific mission and goals, or
despite a mission and goals'
- strategy emerges over time as
intentions collide with accommodate a
changing reality
33
planned v emergent strategy
planned:
- intended strategy
- influenced by corporate objectives
- based around a formal strategy
planning process
- supported by traditional planning
tools and methods
- described in formal business plan
emergent:
- actually happens
- responds to event (environment)
- involves strategic and tactical changes
- not restricted by formal planning tools
34
what is strategic drift
happens when the business is no longer relevant to the external environment facing it
35
four stages of strategic drift
1- incremental change
2- strategic drift
3- flux
4- transformational change or death
36
why is contingency important
in business, always expect the unexpected
37
concept links to contingency planning
- external environment
- PESTLE
- risk management
- decision making
- crisis management
38
contingency planning is part of the way businesses manage risk
risk management
- identifying and dealing with the risks
threatening a business
contingency planning
- planning for foreseen events
crisis management
- handling potentially dangerous events
for a business
39
what is risk in business
- possibility of loss or business damage
- a threat that may prevent or hinder
the ability to achieve business
objectives
- the chance that a hoped-for outcomes
will not occur (customers don't
respond well to product launch)
40
different ways businesses deal with risk
- ignore it (wait and see)
- reduce probability of risk
- share or deflect the risk (insurance)
- make contingency plans - prepare for
it
- treat risk as an opportunity -
particularly if it also affects other
competitors
41
examples of common approaches to day-to-day risk management
marketing:
- avoid over-reliance on customers or
products
- develop multiple distribution channels
- test marketing for new products
operations:
- hold spare capacity
- quality assurance & control
finance:
- insurance against bad debts
- investment appraisal techniques
people:
- key man insurance - protect against
loss of key staff
- rigorous recruitment & selection
procedures
42
contingency planning is part of risk management
- identifying what and how things can
and might go wrong
- understanding the potential effects if
things go wrong
- devising plans to cope with the
threats
- putting in place strategies to deal with
the risks before they happen
43
what is contingency planning
involves:
- preparing for predictable and
quantifiable problems
- preparing for unexpected and
unwelcome events
aim:
- minimise the impact of a foreseeable
event and to plan for how the
business will resume normal
operations after the crisis
44
evaluating the need for contingency planning
risks vary in terms of their:
- significant to the business
- likelihood
contingency planning is not required for every eventuality
however, risks of strategic significance cannot be ignored
45
overview of strategic planning process
- set corporate objectives
- determine what should be done to
accomplish them
- implement the plan
- monitor and evaluate the results
46
a reminder of how a business sets its strategic direction
vision:
- non-specific directional and
motivational guidance for the entire
business
- what will the business be like in five
years time
mission statement:
- an business's reason for being
- it's concern with the scope of the
business and what disguises it from
similar businesses
objectives:
- SMART objectives
goals:
- specific statements of anticipated
results
47
types of plan in business
strategic plan:
- sets out the overall direction for the
business in broad scope
business plan:
- actions that a business will take to
achieve corporate objectives
operational plan:
- details how each objectives is to be
achieved
- specifies what senior management
expects from specific departments or
functions
48
levels of business planning - strategic
level: business wide
focus: direction and strategy for whole
business
nature: broad and general
time horizon: long term 3+ years
49
levels of business planning - business
level: business unit
focus: direction and strategy for the
business unit
nature: more detail on goals and tasks
time horizon: 1-2 years
50
levels of business planning - operational
level: functional area
focus: resources and action for
functional area
nature: specific to the function
time horizon: up to one year
51
benefits of effective strategic planning
- clarify direction
- ensure efficient use of business
resources
