Chapter 1, 2, 3, 4, 5 Flashcards
Organisation
A social arrangement which pursues collective goals, controls its own performance and has a boundary separating it from the environment.
Primary objective of a profit orientated business
Maximise wealth of the shareholders
Primary objective of a non - profit orientated business
To maximise benefits to beneficiaries
Mission
The most generalised type of objective which can be though as an expression of reason of existence.
Mission statement
Includes, purpose, strategy, Policies and Values
Vision
How does the organisation see itself in the future
Aims
Qualitative goals
Objectives
Quantitative goals
Plans
What needs to be done to achieve objectives
SMART Targets
Specific, measurable, achievable, relavent and timely
Stakeholders
Virtually everybody who has anything to do with the business
Business sustainability
Considers how far a business goes to operate in a sustainable way and how it interacts with others to do so.
Sustainable development
- Decent work + economic growth
- Industry innovation and infrastructure
- Responsible consumption and production
Organising
Allocating resources and processes to meet plans
Planning
Looking forwards to set the direction of the business
Controlling
Corrective action if direction of business differs from expectations
Leading
How managers exercise their authority
Reward power
One persons ability to reward another person for carrying out orders or meeting other requirements
Coercive power
One persons ability to punish another for not meeting requirements
Expert power
Based on the perception that a person has some relevant expertise or special knowledge that others do not
Referent power
One persons desire to identify with or imitate another
Legitimate power
Power derived from being in a position of authority within the organisation
Negative power
The ability to disrupt operations
Authority
Allows individuals to make decisions and to assign tasks
Accountability
A persons liability to be called to account for the fulfilment of a task. Cannot be transferred
Staff manager
Has authority in an advisory capacity
Top management
Manage the whole business
Middle management
Manage other managers in the business
First line management
Manage operational parts of the business
Direct operation staff
Supervisors and operational staff
Internal process culture
Inward looking and controlled
Human relations culture
Inward looking and flexible
Open systems culture
Outward looking and flexible
Rational goal culture
Outward looking and controlled
Organisational behaviour
The understanding of individual behaviour, group behaviour and patterns of structure in order to improve organisational efficiency and performance
Hard HRM
More of a business focus
Soft HRM
More of a focus on people/ individuals
HRM can be measured by
Commitment, Competence, Congruence and Cost effectiveness
Scientific management
People were similar and could be treated in a standardised fashion
X theory
People dislike work and responsibility so management need to be dictational
Y theory
Physical and mental effort at work is as natural as play or rest. Management need to help them realise potential
Hierarchy of needs
People were motivated by a desire to satisfy unfulfilled needs
Hygiene factors
Satisfaction comes from the context of the job
Motivating factors
Motivation comes from the content of the job
Marketing
Management process which identifies, anticipates and supplies customer requirements efficiently and profitably
Marketing mix
set of controllable marketing variables that a firm blends to produce the response it wants from the target market
4P’s model for marketing mix
Product, Promotion, Price and Place
Push Promotion
Ensuring products are available to customers when they need them
Pull Promotion
Persuade customers they need the product
Operations
Transformational process changing inputs into outputs in order to add value
The 4v’s of Operations
Variety, Volume, Variation and visibility
Procurement
The acquisition of goods and /or services. Quality, Quantity , price and lead times
IT Service delivery
Data extraction
Capacity monitoring
Customer Billing
Budgeting
IT Service support
Systems maintenance
IT security Controls
Prevention of IT Problems
Investigation of IT problems
Fayols Rules to managerial conduct
Division of work unity of command Unity of direction Centralisation Scalar chain
Mintzbergs building blocks
Operating core Middle line Strategic apex Technostructure Support staff Ideology
Mintzbergs coordinating mechanisms
Mutual adjusmtent Standardisation of outputs Standardisation of skills Standardisation of work Standardisation of norms Direct supervision
(De) Centralisation
Refers to the degree of autonomy/decision making ability diffused through the organisation
Pros of Entrepreneurial structure
Flexible decision making
Good control
Close bond to workforce
Cons of Entrepreneurial structure
Lack of clear structure
May be too centralised
Pros of Functional structure
Economies of scale
Standardisation/ efficiency
Specialists more comfortable
Cons of Functional structure
Empire building
Slow to adapt
Conflicts between functions
Pros of Divisionalised Structure
Enables product or geographical growth
Clear responsibility
Training for GMs
Cons of Divisionalised Structure
Potential loss of control
Lack of good congruence
Duplication
Specialists feel isolated
Organisation chart
Concentrates on the shape of the organisation
Corporate strategy
Overall mission and objectives, expansion strategies and divestments
Business strategy
How to gain a sustainable competitive advantage
Functional strategy
Operations, finance, HRM and marketing strategies
Strategic plan
Statement of long term goals along with a definition of the strategies and policies which will ensure achievement of these goals
Resources based strategic advantage
Focus on developing internal resources and competences.
Risk of Resources based strategic advantage
fail to meet the industry trends
Resources no longer valued by customers
Positioning based strategic advantage
Focus on analysing the external environment to identify customer needs
Risk of Positioning based strategic advantage
Forced to constantly evolve to meet customer needs
Emergent strategies
Behaviours which are adopted and have a strategic impact
Task Environment
Factors of particular relevance to the business
General environment
Political, legal, social, ecological and technological
Porters five force analysis
used to assess the attractiveness of an industry in terms of long term profitability
Competitor analysis
Used to analyse the competitive rivalry within the industry
Brand competitor
Similar size firm and similar products
Industry competitor
Similar products but different markets
Generic competitor
Different products but compete for same disposable income
Form competitor
Different products but satisfy the same needs
9m’s model
Used to identify the resources which are available to the business. Men, machines, money, materials, markets, management, methods, management information systems, and make up.
Porters value chain analysis
Can be used to analyse the sequence of business activities which add value to products + services provided by the company
Primary activities of Porters value chain analysis
Create value and are directly concerned with providing the product or service. Inbound logistics, Operations, Outbound logistics, Marketing and sales and Service
Secondary activities of Porters value chain analysis
Do not create value themselves but enable the primary activities to take place with max efficiency. Procurement, Tech development, HRM and Infrastructure
Porters generic strategies - Cost leadership
Lower cost/ broad target
Porters generic strategies - differentiation
Differentiation / broad target
Ansoff’s Matrix
Looks at growth by considering opportunities to sell more existing products/develop new products and building markets share in existing new markets
Business plan
Sets out the markets to be served, how they will be served and the finance required
Risk
Possible variation in an outcome from what is expected to happen
Uncertainty
is the inability to predict outcomes because of lack of info
Strategy Risk
Type of business risk - choosing and implementing the wrong corporate strategy
Enterprise Risk
Type of business risk - Success or failure of a business operation
Product Risk
Type of business risk - Customers do not buy the anticipated amount
Economic risk
Type of business risk - Unexpected changes in economic conditions
Property risk
Type of business risk - Losing property or losses arising in accidents
Gearing risk
Type of financial risk - increase interest charges due to high debt levels
Credit risk
Type of financial risk - Economic loss suffered due to default of customer
Liquidity risk
Type of financial risk - Unexpected shortage of cash
Market risk
Type of financial risk - Exposure to changes in market prices or rates
Process risk
Type of Operational risk - Companies processes are ineffective
People risk
Type of Operational risk - arising from staff constraints, incompetency or dishonesty
Systems risk
Type of Operational risk - arising from information and communication systems
Event risk
Type of Operational risk - Loss due to single events
Risk Awareness and identification
Identifying the whole range of possible risks and likelihood of losses occurring
Risk Assessment and Measurement
Identifies the probability of the risk occurring and quantifies the resultant impact and calculating the potential loss using expected values for gross risk
Reporting on Risk management the corporate governance code requires listed companies to:
determine the nature and extent of any risks the company is willing to take in order to achieve its objectives and report risk management issues
Crisis management
A crisis is an unexpected event that threatens the well-being of a business and its normal operations
Business resilience
considers an organisations ability to manager and survive against unplanned or planned shocks and disruptions to operations
Measuring resilience
Compliance, Completeness, value and capability
Disaster recovery
When the business operation or a significant part of them break down for some reason leading to potential losses of equipment or funds.
