1.7 Decision-making and Strategic tools Flashcards
A business can face both E____ and I____ change
External and Internal
What are some external forces a business might face?
- Recession
- Tax
- Social
- Market growth
- Political situations
What are some internal forces a business might face?
- Leadership style
- Company culture
- Company vision (eg profit oriented)
- Change ownership
- Mergers + Acquisitions
- Lack of innovation
Why would a business resist change?
Self Interest
- -> Individuals are concerned with the implications for themselves
Misunderstanding
- -> Communications problems
- -> Inadequate information
Low tolerance of chain
- -> Sense of insecurity
Different assessment of the situation
- -> Disagreement over the need for change
- -> Disagreement over the advantages and disadvantages
In “Lewins” model, what are the names for the two forces?
Driving and restraining forces
What are driving forces?
Reasons for the change,
EG.
“The business has not changed their logo in 20 years, its outdated”
What are restraining forces?
Problems that will be encountered with this change
EG.
(when changing a logo)
“The business logo is already familiar to loyal customers”
What does a fishbone diagram do?
Attempts to identify the causes of an event
(gets the name because the diagram resembles the skeleton of a fish)
How is a fishbone diagram drawn?
- -> The head of the fish will be the problem
- -> The branches will have a factor
- -> Further broken down into subfactors
What are some benefits of a fishbone diagram?
- Motivating as it brings people together to discuss problems
- Its flexible and can be applied to many situations
- Simple and visually attractive
- Can highlight many factors
What are some limitations of a fishbone diagram?
- May show causes of a problem but not show specific solutions
- Can be divisive and lead to arguments
- Requires knowledge and honesty to make the diagram
- Requires a follow up process to actually fix the problem
What is a “Gantt” chart?
The Gantt chart was developed to help plan work schedules. It is commonly used for production projects where multiple tasks can be done at the same time.
What are some benefits of a Gantt chart?
- Gives a clear picture of current progress on tasks
- Gives a clear picture of overall projects
- Flexible and can be applied to many situations
What are some limitations of a Gantt chart?
- Based on estimates
- Difficult to apply to complex projects
- Based on qualitative data
- Cannot separate out interdependent tasks
