Unit 4 AOS 2

Question 1

List management strategies that respond to key performance indicators

Answer 1

staff training, 
staff motivation, 
change in management styles or management skills, 
increased investment in technology, 
improving quality in production, 
cost cutting, 
initiating lean production techniques 
redeployment of resources (natural, labour and capital)

Question 2

list strategies to seek new opportunities both domestically and globally

Answer 2

New locations
Online Sales
Exporting
Differentiation

Question 3

Define change leadership

Answer 3

refers to influencing or motivating people to work towards the achievement of business objectives through the process of implementing approaches that prepare an organisation undergoing transformation.

Question 4

Why is leadership important during change?

Answer 4

Change –> resistance

Leadership prepares people for change + builds commitment to change + ensures approach is systematic and well considered

Question 5

What are the attributes of effective leadership during change

Answer 5

• build shared vision
• provide ongoing communication
• provide ongoing support

Question 6

What factors are needed for effective leadership

Answer 6

Building and maintaining relationships with employees, management, shareholders and external stakeholders – build trust
Cultivating teamwork, coaching and mentoring
Developing talent within the organisation
Open communication

Question 7

How do you select a management strategy to respond to KPIs

Answer 7

• need to know aim

- need to know obstacles to acheiving aims

Question 8

What KPIs would suggest staff training is required?

Answer 8

Increased customer complaints
Increased workplace accidents
Increased level of wastage
Decreased sales, market share, profit

Question 9

What KPIs would suggest staff motivation strategies are required?

Answer 9

Level of staff turnover, rate of staff absenteeism, number of customer complaints, decline in rate of productivity growth

Question 10

What KPIs would suggest a change in management styles and skills is required?

Answer 10

Staff turnover, staff absenteeism, rate of productivity growth

Question 11

What KPIs would suggest investment in technology is required?

Answer 11

Rate of Productivity Growth

Net Profit

Number of workplace accidents

Number of sales/percentage of market share

Number of customer complaints

Question 12

What KPIs would suggest improvement in quality in production is required?

Answer 12

Rate of productivity growth, 
number of sales, 
net profit figures 
percentage of market share
level of wastage
number of customer complaints

Question 13

What KPIs would suggest lean production strategies are required?

Answer 13

Net profit, productivity, number of sales, level of wastage, percentage of market share, rate of productivity growth

Question 14

What KPIs would suggest Cost Cutting is required?

Answer 14

Net profit figures

Levels of wastage

Rate of productivity growth

Number of sales

Percentage of market share

Question 15

What KPIs suggests that redeployment of resources is required?

Answer 15

Net profit

Levels of wastage

Rate of productivity growth

Number of sales

Percentage of market share

Question 16

How do you structure a response that asks you to explain how a strategy could be used to respond to KPI data?

Answer 16

identify strategy,
describe specifically how it could be used in the particular scenario (e.g. what training, what cost cutting, which resources, which lean management principles),
identify how it would address concerns in KPI data OR how it would enable continued improvement in KPI data

Question 17

How do you structure a response to a question that asks you to justify the use of a strategy to respond to KPIs?

Answer 17

select, identify data that led to selection, explain how strategy will address data (be specific)

Question 18

How do you evaluate the suitability of a strategy to respond to KPI data

Answer 18

Explain benefits of strategy - link to data
Explain limitations of strategy - link to data
Overall judgement with data from case study to support

Question 19

What are the advantages of using a new location to grow business opportunities?

Answer 19

Creates a physical presence in new geographical locations which can improve reputation + image
Increased sales and profit from new markets
Seasonal products can be sold during the opposing season in the northern hemisphere (Global Only)  can use any overproduction

Question 20

What are the disadvantages of using new location as a strategy to grow business opportunities?

Answer 20

Can be difficult to understand and cater for new market
Delivery can be time consuming depending on where manufacturing occurs
High set up cost + cost of researching new markets
Poor communication/language barriers lead to delays (global only)
Product or service may need to be modified to suit cultural norms (Global only)
Higher business uncertainty due to unstable political, social or economic conditions (global only)
Potential legal requirements and costs when exporting (global only)

Question 21

What are the advantages of using online sales to develop new opportunities?

Answer 21

Access to entire new market without the need for physical expansion
Seasonal products can be sold during opposing seasons (global only)
Accesses a large number of customers in a very short amount of time
Increases sales, profit and market share

Question 22

What are the disadvantages of using online sales?

Answer 22

Reduces face-to-face contact with customers – can lead to reduction in quality of service
Product may be lost or damaged during delivery
Lag time for delivery (particularly for global)
Can be costly to implement distribution network for online sales

Question 23

What are the advantages of using differentiation?

Answer 23

Creates customer loyalty because of unique features
Can charge premium prices
Increase in sales revenue because of niche markets or customers switching

Question 24

What are the disadvantages of using differentiation?

Answer 24

Can be difficult to prevent competitors from replicating
Higher investments in time and capital towards research to develop innovative products or improve service
Higher selling price can deter customers

Question 25

What are the advantages of using exporting?

Answer 25

Access to entire new market without the need for physical expansion
Access overseas markets with larger populations
Avoids time taken to set up new stores
Avoids costs of setting up new stores
Increases sales and profit from new markets

Question 26

What are the disadvantages of using exporting?

Answer 26

Product or service may need to be modified to suit overseas cultural preferences or legal requirements
Certain types of products can be affected during long transport times to overseas locations
May be hidden costs in meeting export regulations – e.g. tariffs and quotas
Necessary modifications and delivery costs may lower profit margins

Question 27

What is a learning organisation?

Answer 27

A learning organisation = a business that facilitates the learning of its employees and continuously transforms itself to adapt to changing environments  an organisation where individuals seek to continuously improve and achieve their desired results.

Question 28

What are the 5 disciplines required to be a learning organisation?

Answer 28

systems thinking, mental models, shared vision, team learning, personal mastery

ALL 5 disciplines must be present for an organisation to be considered a learning organisation according to Peter Senge (1990)

Question 29

What is systems thinking?

Answer 29

ability to understand the interrelationships between different areas of the business + the relationship between the business and industry and/or economy = evaluate business performance as a whole rather than separate units

Question 30

What is personal mastery?

Answer 30

encouraging individual development and learning through business activities  employees are committed to self-improvement and being life-long learners

Question 31

What is the discipline of mental models

Answer 31

challenging pre-existing assumptions and beliefs that people have about a business and its practices

Question 32

What is the discipline of shared vision

Answer 32

manager develops and promotes a mission that all employees can believe in  key is that it is not dictated to the employees

Question 33

What is the discipline of team learning

Answer 33

encourages individuals to combine strengths and abilities to grow together

How? Create opportunities for employees to work as a team – cross department teams can expand this further. Requires boundary crossing and openness (e.g. Quality Circles in TQM)

Question 34

If a company is a learning organisation and has all 5 disciplines what are the features of its culture?

Answer 34

balance long term and short term —> Forgo short term for long term
Focus on the teams capacity/collective
Cherish open culture - share errors = Prepared to be wrong
Design and implement feedback loops
Promote personal mastery
Plan for intelligent fast failure - create minimum viable product which is presented to customers early to collect info to improve
Steal best practices from other organisations
Cultivate common vision
Education happens as a side product of working together
Understand it might take some time to develop new approaches