1. Strategy, Leadership & Culture COPY

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 ‘Strategy’?

&

What are the Horizons of strategy?

Answer 6

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 7

How to think strategically?

Answer 7

• 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 8

What is entrepreneurship?

and

What is intrapreneurship?

Answer 8

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 9

Explain Ashridge 4 styles of management?

Answer 9

1. Tells (autocratic)- The manager makes all the decisions and issues instructions which must be obeyed without question.
2. Sells (persuasive) - The manager still makes all the decisions, but believes that team members must be motivated to accept them in order to carry them out properly.
3. Consults (participative) - The manager confers with the team and takes their views into account, although still retains the final say.
4. Joins (democratic) - The leader and the team members make the decision together on the basis of consensus.

Question 10

What is expected of Accountants as being an organisational leader?

Answer 10

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 11

Explain Blake and Moulton Managerial Grid

Answer 11

The Blake and Mouton Managerial Grid is a leadership model that assesses a manager’s leadership style based on two dimensions:

• Concern for people: focus on the well-being and satisfaction of their team members.
• Concern for production: focus on achieving goals and results.

The grid consists of five different leadership styles:

• Impoverished management:
• Country club management:
• Task management:
• Middle-of-the-road management:
• Team management:

The grid is widely used to help managers understand their leadership style and to identify areas for improvement. It is also useful for managers to identify what style they want to be and what style they want to avoid

It’s worth noting that leadership style should be flexible and adaptable to the situation and the team. A manager should also be aware of the style that is more effective for the team and be able to adjust it accordingly.

Country club management:

• High concern for people and low concern for production.
• Managers with this style may be seen as friendly and supportive, but may not be as focused on achieving results.
• Pros: can lead to high morale and good relationships among team members.
• Cons: can lead to poor performance and lack of results.
• When to use: best used in situations where team morale and cohesion are more important than achieving specific results, such as in a non-profit organization or when working with a team of volunteers.
  
  • non-profit organization where maintaining a positive and supportive work environment is more important than achieving specific results.
  • when working with a team of volunteers, where maintaining good relationships is important to keep volunteers engaged and motivated

TASK management:

• High concern for production and low concern for people.
• Managers with this style may be seen as demanding and task-oriented, with little interest in the well-being of their team members.
• Pros: lead to high performance and results.
• Cons: lead to low morale and poor relationships among team members,
• When to use: This style is best used in situations where achieving specific results is the top priority, such as in a fast-paced or high-stress work environment.
  
  • well-suited in a fast-paced work environment such as a technology start up where achieving specific results is the top priority and time is of the essence.
  • well-suited in a high-stress work environment such as a hospital emergency department where efficiency and results are critical to patient care.

Middle-of-the-road management:

Moderate concern for both people and production.

Managers with this style may be seen as neither particularly supportive nor particularly demanding.

• Pros: This style can be less demanding and require less effort from the manager.
• Cons: This style can lead to mediocre results and mediocre relationships among team members.
• When to use: This style can be used in situations where the priorities are not clear or when the manager is unsure of what style to use.
  
  • This style could be used in situations where the priorities are not clear, such as in a small business where the manager is unsure of what style to use.
  • This style could also be used in a transition period when a team is undergoing a change, such as a merger or acquisition.

Team management:

High concern for both people and production.

Managers with this style may be seen as supportive and results-oriented, with a focus on both achieving goals and supporting their team members.

• Pros: This style can lead to both high performance and high morale among team members.
• Cons: This style can be more demanding and require more effort from the manager.
• When to use: This style is best used in situations where both achieving results and maintaining a positive work environment are important.
  
  • well-suited in a matrix organization, where different teams work on different projects and achieving results and maintaining a positive work environment are important.
  • well-suited in a knowledge-based company such as a consulting firm where team members are highly skilled and motivated and achieving results is important.

Question 12

What are the three levels of strategy?

Answer 12

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 13

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

&

What is a Vision Statement?

Answer 13

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 14

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

Answer 14

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

Question 15

What are the common criticisms of a mission statement?

Answer 15

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 16

What are the Levels of Objectives?

&

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

Answer 16

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 17

What are the strategic values of organisations?

Answer 17

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 18

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

Answer 18

1__. Strategic Position ​

2. Strategic Choices

3. Strategy in Action (Implementation)

Question 19

Define Strategic Position?

Answer 19

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 20

Define Strategic Choices?

Answer 20

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 21

Define strategy in Action?

Answer 21

3. Strategy in Action (Implementation)

What actions need to be carried out for the strategy to be successful?

Key thing to understand is that strategy is not linear like the rational planning model, as all 3 parts are interlinked.

E.g. A choice may only be possible after some implementation

E.g. Strategy analysis is ongoing so overlaps with 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 22

What is organisational culture?

&

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

Answer 22

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 23

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

Answer 23

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 24

What are the Pros and Cons of Strategic Planning?

Answer 24

Question 25

Briefly describe a Business Plan?

Answer 25

1. The Executive Summary

2. The Business Description

3. Market Analysis

4. Competitive Analysis

5. Sales and Marketing Plan

6. Ownership and Management Plan

7. Operating Plan

8. Financial Plan

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.