Causes Of Change Unti 10

Question 1

Lewinsky forcefield analysis

Answer 1

Driving and restraining forecfields 0 look at mock example

Question 2

Value of change

Answer 2

Keep up with external environment changes - failure to adapt, lead to loss of comp advantage
- trends constant change
- unexpected change
-those who can anticipate change- strategy I planning

Question 3

Flexible organisation

Answer 3

Anticipate changes quickly

Finance - reserves of cash, liquidity, not being highly geared so hard to borrrow money

Marketing- close to customers in order to anticipate changes in demand and react and plan

Operations - short lead times(fulfil customer orders quickly) JIT or buffer stock, mass customisation practices (personalising) , outsourcing (help be flexible, let someone else do and focus on what good at)

HR-highly skilled workfoce, Able to respond to changes , seasonal, decentralised decisions

But
- opportunity cost fro holding cash

-staying close to customers, costly, market reserach,

Question 4

How to become flexible

Answer 4

Delayering - tall to flat

Question 5

Kotter and Schlesinger

Answer 5

Self interest
Misunderstandings and fear
Differing views
Prefer status quo

Question 6

Overcoming self interest

Question 7

Overcoming misunderstanding

Answer 7

Education and communication

But time consuming,a dn requires trust

Question 8

Overcoming differing views

Answer 8

Participations no involvemt
Facilitation and support
Negotiations no agreement

Question 9

Overcoming preference of status quo

Answer 9

Negaotaiaon and agreement
Manipulation and cohersion

Question 10

Strong culture

Answer 10

Everyone understands culture

Question 11

Weak culture

Answer 11

Don’t understand culture, practices done match mission

Question 12

Handys culture

Answer 12

Role culture
Task
Power
Person

Question 13

Role culture

Answer 13

Tall structures
Bearocracy
Centralisation power, who delegate jobs further down, they make decisions
-stability and predictability
-consistency
-everyone has place in hierarchal structure
-lack of creativity and innovation

EG- medical market - businesses with high uncertainty avoidance (HOFESTEDE)

-lack of direction, to overcome, but in buerocracy, rules to control

But
-beauracy slows down decision making

Question 14

Task culture

Answer 14

Power in organisation comes from expertise and abilities to perform certain tasks
- flat structure
-empowerment
-decentralisied
-innovation
-encourage intrapreneurship
-country club leader
-encourage teamwork
-very innovative and creative
MATRIX STRUCTURE
-organic growth, encourages flexibility and adaptability

-autonomy — but as we know, when given autonomy, GREINER, can lead to crisis of CONTROL- need coordination - may develop their own culture

Question 15

Power culture

Answer 15

Power held by one expert - one person makes all decisions, determine strategic direction
- strong charismatic leader

-quick decisions
-what boys says , goes
-not many rules and people just do what boss says

Ie - Steve Jobs, apple - as 1 person, he is very innovative so doesn’t matter that no autonomy given out.
No innovation unless the person with the power is innovative

Question 16

Person culture

Answer 16

All individuals have strengths - role of organisation is to enable the employee to demonstrate their abilities
-total freedom - so creativity is encouraged
-join leadership style
-make decisions based on own expertise
-not working together - but all working from same business
- county club
-encourage intrapreneurship
- thinks and act liek one, to create ideas for business, taht lead to comp advantage, and profitability
-

EG- law firms, all qualified, experienced- only works with high skilled

But -loose managerial control and no bond with organisation

Question 17

High power distance vs Low power distance index

Answer 17

High PD- acceptance of tall structure
- authoritarian leadership style
-management control
Eg- CHINA- 80-high

Low PD- prefers flat structure
-delegation
-consultive leadership
Eg- UK -35-LOW

Question 18

Individualism / collectivism

Answer 18

High score - individualistic

Eg-UK -76

Low score- collectivist
China -43

Question 19

Masc /femme

Answer 19

Masc- strong leadership style, based on data
-scientific decision making

Fem- consultive approach, intuition
- hunch decision making

Question 20

Uncertainty avoidance - risk taking

Answer 20

High - avoid risk
-japan = 95

Low- willing to embrace change and risk
Uk- 35

Question 21

Difficulties changing culture

Answer 21

• hard to indentify what culture is
  -can involve restructuring

Question 22

Implementing strategy effectively

Answer 22

Clear outline of objectives- mission statement, corperate objectives
-create corporates strategy- long term plan achieving objectives

-consult stakeholders, employees, customers, shareholders, suppliers
-break down strategy into component parts, set deadlines for completion- network analysis

• review and adjust organisational culture
• clearly communicate strategy to each functional area - better communication more likely to take it on board
• -review and

Question 23

Leaders are vital in implementing strategy

Answer 23

Pivotal, reviewing info, set strategy
- communicate
- role of leaders
-guide, direct, help support, motivate,

• set vision
  -asses SWOT
  -monitor progress
  -reward
  -establish brand identity and USP - competitive advantage

-ways to communicate e
- regular meetings
-

Question 24

Functional structure

Answer 24

Consistency
Realise econ of scale

• hard to communicate and coordinate across departments - diff departments develop diff cultures ie, finance, task culture, whereas marketing, personal culture

Question 25

Product structure

Answer 25

Improved product design
Different products at different life cycle , so important that each has different strategy

• costs, duplication of roles

Question 26

Matrix strcuture

Answer 26

Team based
- from all areas of function, for one project
-improves inter-department communication

• but potential conflict

Question 27

Planned strategy

Answer 27

Original structured plan

Question 28

Emergent

Answer 28

Adjusted to external environment

Question 29

Strategic drift

Answer 29

External environment changes when strategy does not

Question 30

Divorce of ownership of control

Answer 30

Shareholders own PLC
Directors run a PLC
- risk for shareholders, less dividends, limited liability , may loose investment if goes into liquidation
-not interested in the decisiosn, just want short term profits

EG- lead to Patisserie Valerie committing accountancy fraud, manipulated balance sheets - did it fro own reputation, higher bonus

Question 31

Strategy of plc determined by shareholders

Answer 31

Shareholders invest equity to the business, and get a say on how the business is run in return- may not be experienced to do so
-Shareholders get to select the Board of Directors, and hold them to account on the delivery of the strategy in the AGM (annual general meeting)
- put pressure on profits by wanting short term returns- dividends

It may not be because:
-Many shareholders are small investors / pension funds and do not have the time or expertise to be involved in the day to day running of the business
-The strategy may be determined by the shareholders, but it is the management of the organisation who need to carry it out. The emergent strategy may not be the strategy outlined by the shareholders

Question 32

Contingency planning

Answer 32

Evaluate threats and weakness - create plan for UNLIKLEY EVENTS
- Covid, flooding,

Ie - airline industry, 9/11, hijack, now they lock cockpits

+reasures customers and staff at safety
+minimise negative Impacts on customers and suppliers

-costly
-time consuming
-constantly need updating
-training

Question 33

How to improev divorce of ownership and control

Answer 33

Give directors shares, company interest at hearts 0 cust divide between owner and control