Apm Flashcards
Benchmarking
Process if identifying best practices in relation to products and the processes by which those products are created snd delivered
This is to check the firms position and areas of improvemennt
Benchmarking can be used in 3 areas of strategic planning
Strategic analysis: identification and improvement. Eg: SWOT analysis
Strategic choice: strategy. Eg: cost leader
Strategic implementation: targets achieved
BPR ( business process reengineering)
Fundamental rethinking and redesign of business processes to achieve dramatic improvement in core performance like cost, quality, service, speed
Customer satisfaction is the main goal
Encourages long term strategic view
Revolves around customer needs and fulfilment
Gives more autonomy to employees
Reduce organisational complexity
Management information system
Collects information from individual transactions in accounting system to allow middle level management to control better
Summarise information into report to check products that sell well and repeat customers
Helps in decision making process
Budgeting
Quantitative plan prepared for a specific time period. Normally expressed in financial terms for 1 year
Purpose
1. Planning
2. Control
3. Communication
4. Coordinate
Key performance indicators
Shows the performance of a business in live format thus allowing immediate understanding of the current performance and actions required to improve performance
Exexutive Information System
Supplies information to senior mngmt allowing them to drill down on detailed transactions only when necessary
Provides access to internal (MIS) and external (market data)
EIS provides summarised data focused on KPIs to check if firm is meeting its ( CSFs)
DSS
Data Support System aids managers in taking decisions. The system accesses and manipulates data to predict consequences of a number of possible scenarios and managers uses judgement to make their final decisions
Data visualisation
Allows large volume of complex data to be displayed in a visually appealing and easy way that facilitates understanding and use of data
Common typ is dashboards. Dashboards contain summarised information showing small no of KPIs making the managers see the big picture quickly and focus on CSFs
They may also have drill down facilities
Responsibility accounting
Based on controllability
Managers should only be hold responsible for aspects of performance that can be controlled and division should be assessed on overall performance
Each division will be a responsibility centre
The information system should reflect the responsibility structure in place and trace cost revenue back to those responsible
Managers to f responsibility centre will require
1. Correct info
2. Correct form
3. Correct interval
The MIS must allow senior manager to measure and control the performance of its various divisions with similar performance measure so that the overall performance if the organisation can be measured
Critical Success Factor
Are vital areas where things must go right for the business in order to achieve its strategic objectives
The achievement of CSFs should allow organisation to cope beter either its rivals with any change in competitive environment and maximise its performance
BCG matrix
Classifies an organisation’s divisions or products according to their present market share and market growth
Constructed using following steps
1. Divide business into divisions/ SBU
2. Allocate each of these into market using matrix
3. Assess prospects of each of these divisions
4.Develop strategies and targets for each of these divisions
4 quadrants of BCG
1. Low growth, low share: divest liquidate
2. Low growth, high share: cash these cows and invest somewhere else
3.high growth, low share:invest in these or discard according to their potential
4. High growth, high share: invest high
Porter 5 forces model
- Competitive rivalry
- Supplier power
- Buyer power
- Threat of substitution
- Threat of new entry
