3.10 MANAGING STRATEGIC CHANGE

Question 1

When does change occur in a business?

Answer 1

• When a business changes its structure, size or strategy to respond to internal or external influences
• May be necessary to help a business meet aims / objectives
• Can either cause opportunities or threats
• Must be managed carefully to ensure an increase in competitiveness

Question 2

What is ‘critical path analysis’ and what does it show?

Answer 2

Technique to be efficient

• Sets out all individual activities that make up a larger project
• Shows order in which activities should be done in
• Shows which activities can only take place once other activities are done
• Shows which activities can be undertaken simultaneously, reducing overall time taken to complete whole project
• Shows when certain resources will be needed

Question 3

What is ‘critical path’ ?

Answer 3

Route through the CPA, which has no ‘float’ (spare time)

Question 4

Layout of every node (‘critical path analysis’)

Answer 4

• Circle in 3 sections
• Left: Node No.
• Top right: EST (Earliest Start Times)
• Bottom right: LFT (Latest Finish Times)

Question 5

What does the ‘Earliest Start Time’ (‘Critical Path Analysis’) show and what is its aim?

Answer 5

Shows earliest start time an activity can start because it is dependent upon the previous activity being completed

Aims to identify when resources will be needed, allowing orders to be processed and arrive in time for the start of the project.

Question 6

How to work out the ‘Earliest Start Time’ (EST)

Answer 6

Take EST for previous task (top right of node) and add on duration (on line) of the previous task

Always pick highest number if between 2 tasks!

Question 7

What happens when a task is dependent on two tasks take place simultaneously? (Critical Path Analysis)

Answer 7

EST will be the time of longest task, because the project cannot proceed until all dependent tasks have been completed

Question 8

What does the ‘Latest Finish Time’ (‘Critical Path Analysis’) show and what is its aim?

Answer 8

Latest possible time for a task to finish, avoiding delays in the project. Any delay in tasks will hold up the project and the completion date will be delayed.

Question 9

How to work out the ‘Latest Finish Time’ (LFT)

Answer 9

Worked out backwards, from end of the network

If there are simultaneous activities always choose the longest duration!