1. Strategy, Leadership & Culture

Question 1

Define leadership?

&

What are the Qualities of a Good Effective Leader?

Answer 1

The process of influencing an organisation or group in its efforts towards achieving an aim or a goal (Johnson et al, 2017)

Qualities of Effective Leaders

• Visionary
• Ethical
• Charisma – ‘star quality’
• Good communication skills ability to influence, speak clearly and listen
• “Walk the talk”
• Expert in their field
• Risk-takers, including the risk of unpopularity

Question 2

Briefly Explain the 5 perspectives on leadership? (Yukl 2013).

Answer 2

1 Trait Approach​

Good leaders are “ Naturally born” with a base level of natural skills Confidence, Personable, Energy, Intuition, Persuasiveness.

2 Behaviour Approach

Rhat you learn how to manage given situations. i.e. seeing how others manage the industry and then following that approach.

3 Power Influence Approach

how much power a leader has and how they exercise it (autocratic vs. participative).

4 Situational Approach

Successful leadership skills and behaviours will depend on the circumstances of the situation

5 Integrative

Using more than one approach

Question 3

What are the key roles in strategic leadership?

&

What do these roles involve?

Answer 3

1. Top Manager ( C-Suite)

• Envisioning future strategy
• Aligning the organisation
• Embodying change and act as a role model

2. Middle Managers

• Advisers to senior management,
• ‘Sensemaking’ of strategy into specific contexts.
• Reinterpretation and adjustment of strategy as circumstances change
• Local leadership of change

Question 4

Briefly describe the 2 main types of leaders?

Answer 4

Transactional / Instrumental leadership:

Leadership based on systems and controls, seeking general improvement rather than change. (More focused on the day to day operations and likely be lower levels of management)

Charismatic/​Transformational leadership

Leadership that energises people and builds a clear vision of the future, seeking to change that status quo

Question 5

What are Balogun and Hope Haily’s (2008) change management styles?

What is it used for?

Hint? D.I.C.C.E

Answer 5

1. Direction - Gradual change directed by management, in a top to down style
2. Intervention - Use of change agent
3. Coercion - (More aggressive form of direction) Change is imposed by management for urgent needs
4. Collaboration & Participation - Collaborate with people to enact change
5. Education & Communication - Clearly communicate the need to change

Used to assess which change management style, would be appropriate in a given context.

Question 6

What is entrepreneurship?

and

What is intrapreneurship?

Answer 6

Entrepreneurship: the process by which individuals identify and exploit opportunities for new products or services that satisfy a need in a market.

Intrapreneurship: Implementing entrepreneurial principles within an organisation. Such as identifying cost-saving or improving the efficiency of processes.

Question 7

What is expected of Accountants as being an organisational leader?

Answer 7

Accountants are increasingly expected to be more involved in the leadership of a company.

A leader is expected to be able to -

• • analyse a business situation and
• • provide and implement appropriate, effective and sustainable solutions

This means that they can: -

• • be clear and focussed, identifying the key issues in any situation
• • analyse and address ethical concerns
• • use models and quantitative analysis to draw out key issues, establish causality and integrate a wide range of factors into a coherent argument
• • make clear ‘fit for purpose’ recommendations that meet and exceed the needs of the business

Question 8

How to think strategically?

Answer 8

• Taking a long-term perspective on dealing with company issues
• Looking at the whole organisation as well as individual products/divisions/SBU’s
• Setting the direction of the whole organisation and integrating its activities.
• Considering the views of all stakeholders.
• Analysing the resources and defining requirements.
• Relating the organisation to its environments.
• Looking at gaining a sustainable competitive advantage.

Question 9

What is ‘Strategy’?

&

What are the Horizons of strategy?

Answer 9

A strategy is the long term direction of an organisation.

Horizons

1. Defend and Extend Current/Core Business
2. Build an emerging business to provide to sources of income
3. Ventures are new and risky and might provide returns in the future

Question 10

What are the three levels of strategy?

Answer 10

1. Corporate Strategy

• Overall Purpose of the organisation. (The type products or SBU portfolio the company will have, markets the business will focus)”What type of business should we be in?”

2. Business Level Strategy

• How will the company be successful in the market place, “Tactics to win sales, make a profit and beat the competition”

3. Operational Strategy (Resources)

Operational Methods to implement the tactics on a day to day level. How will the divisions of the company support the company

Question 11

What is a Mission statement? and What is the purpose of it?

&

What is a Vision Statement?

Answer 11

A Mission Statement: is a formal document that states the organisation’s mission.

What is its purpose?

• Communication with stakeholders
• Promotes desired behaviour
• Support for Strategy & Purpose
• Adherence to Core Values
• Adoption of Policies

Vision Statement: Expresses the future that an organisation is trying to create. If all the plans went well this what it would look like.

Question 12

What are the four elements of the Ashridge College Model of Mission?

Answer 12

1. Purpose
2. Values & Morals
3. Policies & Standards of Behaviour
4. Strategy

Question 13

What are the common criticisms of a mission statement?

Answer 13

Users see the statement as meaningless if they are seen to be

• A Public Relations Exercise
• Over Generalised and provide no real guidance
• If the are ignored
• If poorly constructed it could create a conflicting statement and confuse users
• Unsupported by specific objectives

Question 14

What are the Levels of Objectives?

&

What is Drucker’s (1989) Approach to objectives? S.M.A.R.T

Answer 14

Levels:-

Corporate - small number of overriding/overall mission. High-level goals.

Divisional/value-creating process - Each of the high-level goals is supported in
turn by more detailed, subordinate goals.

Functions/Individual - the pattern is continued downwards until we reach the work targets of individual members of the organisation

S.M.A.R.T

1. Specific (Clear Obj)
2. Measurable (Against a Standard)
3. Achievable
4. Realistic/Results-driven
5. Time (Deadline)

Question 15

What are the strategic values of organisations?

Answer 15

1. Ethics in business what are the ethical views and standards of the organisation?

Leaders are responsible for a culture of high ethical standards and set an appropriate ‘tone from the top’.

Organisations can seek to safeguard their ethical standards by publishing a formal code of ethics.

2. Corporate social responsibility

The approach taken by an organisation to provide benefit to society in general, and how the company generates a profit?

3. Corporate Governance

Concerns the conduct of senior officers in an organisation. It also relates to the way organisations are directed and controlled.

Question 16

Highlight Johnson et al (2017) main elements of strategic management?

Answer 16

1__. Strategic Position ​

2. Strategic Choices

3. Strategy in Action (Implementation)

Question 17

Define Strategic Position?

Answer 17

Where do we want to go?

• What are the expectation and power of stakeholders, what do the shareholders want? Will employees co-operate? (Stakeholder Mapping)

How are decisions influenced?

• the culture, beliefs and assumptions of the organisation - Organisational Dynamics (C.R.O.P.S.P.S)

What are the key threats and opportunities from the external environment?

• the environment (competitors, markets, regulations, discoveries, etc), helping identify opportunities and threats. (PESTEL, Porters Diamond, Porters 5 forces)

What constraints exist on our resources?

• the strategic capability of the organisation (Threshold and unique resources and competences) strengths and weaknesses of the organisation (Value chain, 6m’s SWOT)

Question 18

Define Strategic Choices?

Answer 18

2. Strategic Choices

How is the company going to compete? Generation of strategic options (possible Ideas)

• • Porters Competitive strategies
• • Strategic Growth (Ansoff’s product vs market)
• • Method of growth (Acquisition vs Organic)

Which strategic direction should we choose?

• Evaluation of the choices ( SAF Model)
• Strategic Fit
• TOWS matrix

How are we going to achieve the chosen direction?

• Plans to acquire resources
• Plans on the deployment of resource

Question 19

Define strategy in Action?

Answer 19

3. Strategy in Action (Implementation)

• Will there be a need to change the organisational structure?
  
  • Collaborative and boundaryless structures
  • Harmon process matrix and business process reengineering
• Resource management.
  
  • • Budgeting and internal reporting
  • • Project management
  • • Human resources management
• Management of strategic change.
  
  • • POPIT
  • • Contextual features of change
  • • Scope and type of change
  • • Resistance to change
  • • Lewin (unfreeze, change, refreeze)

Question 20

What is organisational culture?

&

What are the main factors that influence an organisation’s culture?

Answer 20

A pattern of shared basic assumptions that are considered valid and transmitted to new members (Schein, 1985) or “The way we do things around here.”

Main Influence on Culture:-

• • National Culture
• • Founders
• • History of the Organisation
• • Style of Management
• • Reporting Hierarchy

Question 21

What are the 6 Drivers and Conclusion of the Cultural Web? (C.R.O.P.S.P.S)

Answer 21

Control Systems (Monitoring & Rewarding Performance)

Routines (Informal Behaviour) & Rituals (Formal Behaviour)

Organisational Structure (Hierarchy i.e. top-down (army) or flat (charity)

Power Structures (Who makes the decisions)

Symbols (Logos, Job Titles, Uniform etc.)

Paradigm (Conclusion: Is there anything we are seeing a lot of as common threads).

Stories & Myths (Key Messages Given both Inside & outside the organisation)

Question 22

What are the Pros and Cons of Strategic Planning?

Answer 22

Question 23

Briefly describe a Business Plan?

Answer 23

1. The Executive Summary

While appearing first in the business plan, the executive summary is a section that is usually written last as it is a summary of the entire business plan. It provides an overview of your business including your mission statement and details about what you offer. It’s critical that your executive summary is outstanding, especially if you’re seeking funding.

2. The Business Description

Provide information about the business including descriptions your product or services solve, and who the most likely buyer is. Provide an overview of the industry that your business will be a part of, including trends, major players in the industry, and estimated industry sales. This business overview section should also provide a summary of your business’s place within the industry, along with your or your team’s expertise as well as your competitive advantage.

3. Market Analysis

The market analysis is a crucial section of the business plan, as it helps you identify your best customers or clients. In the market analysis, research the primary target market for your product or service, including geographic location, demographics, your target market’s needs and how these needs are currently being met. Your purpose here is to have a thorough knowledge of the people you are planning to sell your goods and/or services to so that you can make informed predictions about how much they might buy.

4. Competitive Analysis

In the competitive analysis section, you’ll learn how successful your direct and indirect competitors are in the marketplace, with an assessment of their competitive advantage and how you’ll set yourself apart from them. It also includes an analysis of how you will overcome any entry barriers to your chosen market. You also need to distinguish your business from the competition, which is especially important in persuading potential funding sources that you’ll be able to compete in the marketplace.

5. Sales and Marketing Plan

The sales and marketing section offers a detailed explanation of your sales strategy, pricing plan, proposed advertising and promotion activities, and product or service’s benefits. This is where outline your business’s unique selling proposition, describe how you’re going to get your goods and/or services to market, and how you’re going to persuade people to buy them.

When developing your unique selling proposition, your goal is to answer the question: Why should people buy from me over my competition?

6. Ownership and Management Plan

This section gives an outline of your business’s legal structure and management resources, including your internal management team, external management resources, and human resources needs. Include experience or special skills each person in your management team brings to the business. If the goal of your business plan is to get funding, it’s wise to make sure that your management plan includes an advisory board as a management resource.

7. Operating Plan

The operating plan gives information on how your business will be run. It provides a description of your business’s physical location, facilities and equipment, kinds of employees needed, inventory requirements, suppliers, and any other applicable operating details, such as a description of the manufacturing process.

8. Financial Plan

Starting a business is generally about making a profit, and so having a solid sense of your current finances, funding needs, as well as projected income is important. In the financial section, provide a description of your funding requirements, your detailed financial statements, and a financial statement analysis. This part of the business plan is where you present the three main financial documents of any business; the balance sheet, the income statement, and the cash flow statement, or in the case of a new business, a cash flow projection.