Ch 6 - Position and Gap Analysis Flashcards
Position Audit - what is it about and who does it involve
Position audit looks at where we are at now
— Resources / SW’s and Position/ OT
Involves a special team who give budget , objectives list and support functions (MI etc). MA’s are also involved
What does a position analysis seek
SWOTS e.g threats focusing on weaknesses (rapid defense response)
AND
Current issues, relevant problems and strategic capabilitu
Gap Analsisysis
Comparison of entitys ultimate objective and expected performance both planned and underway and idenifying means to fill identified gaps
Earning and time graph Target / Diversify gap / expansion gap / efficiency gap from current ops
How to close the gaps for efficiency / expansion / and diversify? (Linked to Ansoff matrix)
Efficiency - undertake effic drive / make savings / penetration strategies (to sell more) … easiest gap
Expansion Gap - market development approach - new markets / products
Diversify Gap - sell NEW products to NEW markets
This is riskier and typically the last strategy a Co should/ could take
- A
A plan is what you want to happen a forecast is what you predict given assumptions. Feed forward control systems are a proactive approach in Gap Analysis. What is is, what does it aim to do and what is needed ?
What - Comparison of plan w/forecast
Aim - id deviances before missed target happens so corrective action can take place
Needed ? Budget for tea, / IT / Data sourcing / scenario planning / time
What are the problems with Gap Analysis
1) Uncertainty makes prediction capabilily less effective
2) Costly waste of time - potentially
3) Doesnt consider all stakeholders / multi objectives with conflict / compromise required
Benefits of Gap Analysis
Good for Debates
Easy to get / communicatie
Attention to LT via Short term
Good for stable environments
Forecasting is a key part of Gap analysis what is it
Prediction of future events and quantification for planning process/. Use various models (other cards!)
What does regression analysis look at ?
how variables vary / correlate with another variable
Regression will allow to calc an estimatae of the relationship between two variables and use in forecasts
What does time series analysis do and when is it useful
What - IDs ST and LT trends in previous data and the application of these patterns for projections
When - Cos who to forecast demand when seasonal flucuations / demand is infleunced by the business life cycle
Drawbacks of statiscal models (to help with GA)
- assumes past is an indicator of the future
- regression analysis assumes two faction are strongly correlated. It WILL calc relationship but may MISS the causal link - so could be misleading
- hard to build in fluctuations etc so could be innaccurate
Another forecasting model is system modelling what does this refer ? What options are available
What - some big firms dev programmes to model economic system / markets etc. Note v difficult to ID all variables and to define how they relate.
Options- There is software available for forecasting e.g Accounting / ERM systems etc
Intuitive forecasting methods use both judgement And / Or expert knowledge what are examples
Think thanks, delphi, Scenario planning, brainstorming, demand analysis
What is a think thank and whats needed to work
- group of experts, untstructured, speculate (future/ needs etc).
Needs
Independance of members (to enable unpopular views)
Leave out position authority
Group nature (consensus)
Whats the Delphi Technique (avoid group think of think thanks)
- KEY is to individually integrate panel of experts
- They DONT meet
- Where speculating asked for subjective probability
- CENTRAL AUTHORITY evaluates responses then reintegrates experts …to get new ideas/ knowledge
What is brainstorming , how many people
No fewer than 6 no more than 15
Everyone proposes ideas, no criticism , one idea provokes the next
What is derived demand and analysis of same. And what is the issue with it
What - DD exists for a commodity / product becuase of its contributio to build of another product e.g metals for cars
Analysis - Forecasting involves analysis some aspects of economic activity so level of other can be deduced
Issue - Cost and complexity so use is limited / restricted
What is foresight and what are the advantages 5C’s
What - Goes beyond just forecasting to id ways the future of org could develoed.
- For org its not just predicting the about the future but developing an understanding of all potential changes - new potential opps!
Ads
Comms, concentration / coordinate (harmonise R&D), consensus, committment
What are foresight techniques
Scenario Planning
Visioning - dev ‘image’ of the future
Delphi method
Morpholigical Analysis - look at all components of a big problem/ matrix used to id new combos of these to id plausible new outcomes
Relevance trees - start with clear goal trace back via trends / events and id new what needs to change for it to happen
Issue Analysis - via trends / if significant then RISK (prob and impact)
Opp Mapping - id gaps in current environment
Role Playing - give hypothetical future and staff made role play it
What are the steps to Scenario Planning (foresight analysis)
1) ID high impact high uncertainty factors in environment (e.g use PEST)
2) For each factor id possible futures
3) Cluster together (e.g new threats / new leglisation)
4) Write Scenario
- for top 3 detailed analysis (opt / pes/ most likely view, financial impacts, strategic implications, prob of occurence)
5) Id courses of action
6) Monitor
&) Review
How do you construct for scenario planning
diverse team, id time / market / product and budget . trend analysis , research needs , learning implications
Game theory looks to anticipate actions of competition as they can be interdependant what are the principles
1) Strategists can take a rational view of what competitors are likely to do and formulate a likely response
2) if a strategy exists that allows comp to dominate priority is to eliminate it
NOTE - if two competitors dominate the market and one increases in advantage to do better but if other responds both may lose out!
Real Options. When deciding on a strategic project
Option to follow on - a neg NPV project could open doors for others !!
Option to Abandon - option reduces lots of risk
Delay - useful for contracts - e.g building contract / economic downturn
