13- Business Planning / functional strategies /change

Question 1

Functional strategies

Answer 1

Key part of implementing strategic planning
Turning strategy into instructions for the business functions

Question 2

HRM

Answer 2

Roles of HRM:
Recruitment
Training
Appraisals
Rewards

Question 3

Procurement & Purchasing mix

Answer 3

Acquisition of material resources and business services for use by the organisation

Purchasing mix:
Quantity - sufficient amounts to meet future needs
Quality - to avoid production delays and reputational damage
Price - negotiated to maximise profit
Delivery - reliable and timely to avoid stock-outs

Question 4

Key Functions (x4)

Answer 4

HRM
R&D
Operations
Procurement

Question 5

Operations (4Vs)

Answer 5

Volume
Variety
Variation in demand
Visibility

Question 6

Capacity Planning

Answer 6

Made to stock - operating at constant level of activity (Accumulate stock in quiet (low demand) times to use up in busier (high demand) times)

Made to order (JIT)

Manipulate demand - customers are encouraged to switch to off-peak periods by using discrimination pricing to adjust the selling price at different times

Question 7

Barriers to Change:

Answer 7

Cultural barriers:
 Structural inertia – embedded systems/procedures (e.g. difficulties in transferring existing processes onto new management system)
 Group inertia – skills/norms/peer pressure (groups resist change when there are threats to working habits/norms)
 Power structures – existing decision-making structures (decision makers will fear loss of power)

Personnel Barriers:
 Habitat
 Security
 Effect on earnings
 Fear of the unknown
 Selective information processing
 Psychological contract

Question 8

Lewin’s Iceberg model

Answer 8

Unfreeze > Move > Refreeze

Question 9

Types of change

Answer 9

Tuning
Planned
Adaptation
Forced

Consider PACE / SCOPE / MANNER in analysis