Chapter 1 -4 Flashcards
What features should an effective Vision statement have?
- Clarity
- Description of bright future
- Memorable and engaging
- Realisitc and achievable
- Consistency with Org values and culture
What areas does a mission statement cover?
- What it does now
- Who it does it for
- How it doe sit
What features should a mission statement have
- Communicate with stakeholders
- Broad outline of some of the main objectives
- Describe purpose and values of Org
- What the Org wants to be in (Market and Products)
What are the 6 steps for CSF
- Identify the CSF for process
- Identify what competences are required for CA
- Make sure they are sufficient to gain CA
- Make sure they cannot be copied
- Develop KPI’s
- Monitor competitors and the impact on CSF
Why should stakeholders be considered when setting objectives?
- The power they have
- Financial arrangements, Knowledge dependent
- Avoid stakeholder conflict
Describe the ICE numonic when categorising stakeholders
- Internal - Employees, Managers
- Connected - Customers, suppliers, banks, shareholders
- External - Gov, pressure groups, media
What can we use Mendelow Matrix for
- Track changes - can trigger a change in strategy
- Impact of strategy on the stakeholders
What the the effective ways of building relationships
- Building alliances - complimentary suppliers, chocolate and flowers
- Collaboration with own suppliers - exclusive distribution
- Loyalty rewards with customers - CRM and reward cards
Give examples of who falls into the categories MISK
- Minimal - Casual Labour
- Informed - Workers/Local suppliers
- Satisfies - Gov/Customers
- Key - investors/managers/main suppliers
What actions can a business take when involving themselves in political activites
- Lobbying - Dialogue with decion makers to share views
- Election funding - donations
- Petitions - Raise political and public awareness
- Coalition building - join forces with cometitors to increase influence
What is sustanability
Encourages Org to focus on teh creation of long term consumer and employee value
John Elkington advised what data to be captured when CSR reporting
- People
- Planet
- Profit
Jonson, Scholes and Whittington sais there way 3 strategies that can achieve goals. Decribe
- Design - RPM. Structured and planned
- Ideas - No plan and sieze oppurtunites
- Experience - Flexible plan with adaptions with changes in market
Explain Freewheeling Oppurtunism
- Determine goals
- Resist the urge to plan
- Grabs oppurtunities
(Only fools and horses)
Explain Mintzbergs theor of ‘crafting emergent strategies’
- Set plan at start
- Craft out redundant plans
- Craft in new emergent plans
- Realise strategy
Explain local incrementalism
- No clar plan
- Small, incremental steps
- Decison made by customer facing staff
J, S & W described certain competences when it comes to resourse based approach to strategy
- Strategic cabability
- Tangible resources
- Intangible resources
- Competencies
- Threshold Competence and Resources
- Unique C & R
What key points should a SMA have
- Support info for planned strategy
- Compile forecast to deal with enviromental uncertainty
- Analise competitor performance and benchmark
- Analysis of cost behaviour
- Investment appraisal
- Performance evaluation
What impact does Enviromental uncertainity on strategy
- Planning may be more short terms
- Emergent strategies may prevail
- Strategy may become more conservative
When dealing with uncertainty what options are available (top line)
- Real Options
- Forecasting
- Game Theory
- Scenario Planning
- Foresight
Explain Real Options
- Follow on - Initial NPV is negative but may gove rise to future oppurtunites
- Abandon - Inital invest is high and uncertain revenue this option is valuable
- Wait - For better info to materialise allows for informed decision. Needs to outweight early investment forgone
What options are available when Forecasting to deal with Uncertainity
- Regression
- Time series
- Econometrics
- Jury forecasts
- Delphi Method
Explain Game Theory when it comes to Uncertainity in the environment
Competitors reaction must be considered when setting strategies
We Win - They Lose (Adopt)
All others avoid
What benfits does Scenario Planning have when it comes to dealing with Uncertainity
- Explain management look externally
- Be more future orientated
- Undertsand the key uncertanties leading to better understanding
- Future insight so better strategy planning
What are the steps for Scenario planning
- Define scope and stakeholders
- Identify trends and areas of uncertainity
- Initial scenarios and check for consistency
- Identofy learning scenarios and further reseach areas
- Develop quantative models
What is foresight and techniques
Rather than predict future (Scenario Planning) it looks at a range of possible outcomes based on current trends
- Delphi - Anonymously polling a panel of experts
- Visioning - idetify desired future state and develop strategy
- Role Playing - Delphi but without experts
What are the 9m’s and when are they used
Used when looking at a Resource Audit
- Materials (supplier relationship)
- Manpower
- Money
- Machinery
- Management
- MIS
- Markets (Marketing and Distribution)
- Methods (inputs to outputs)
- Makeup (Culture)
According to Rappaport, what drives the value of an Org
- Sales Growth
- Profit Margin
- Tax payable
- Fix Asset investments
- Length of project planning
- Working Capital
- Cost of capital
What are the activities re Porters Value Chain
Support Activites
- IT
- HR
- Firm Infrastructure
- Procurement
Primary Activites
- Inbound
- Ops
- Outbound
- Sales and Marketing
- Aftercare Service
When is PVC used and what are its uses
PVC is used when looking at Resource and Capability Audit as part of RPM
- Identify and implement genergic strategies
- Framework for implementation of IT
- Identifies duplication of work
- Forces management to look at adding value at all times
Identify critiscisms of PVC
- Complex model
- Not suitable for all industries
- Ignores value networks
- Costs may outweigh benefits
When it comes to PVC in service industry what method is used and what are the primary activites called
Knows as the Value Shop
- Problem acquisiton and diagnosis
- Finding solutions
- Choice of solutions
- Solution implementation
- Control and feedback
What is the objective of LSC in SCM and what are the Adv & Disadv
Lean supply looks at elimantion of waste
Adv:
- Cost reduction
- Reduced inventory
- Improved quality so less rework
- Shorter lead times
Disadv
- Focuses on cost rather than quality and innovation
- Lower production flexibility
- May result in lock in with bad supplier
What are the uses and criticisms of PLC
Adv:
- Identify strategis for products
- Identify need for successor
- Profit and cas balance with Org product portfolio
DisAdv
- Real life is more complex
- Forecasting is not possible with this
- Stages are different in length industry to industry
What category does each of the BCG fall into
- Star - High MS/High MG
- ? - Low MS/High MG
- Cow - High MS/L MG
- Dog - L MS/L MG
What benchmarking options are there?
- Internal - one unit v another
- Functional - Compare internal biz fuction against best practice regardless of industry
- Competitive - You vs competitor
- Strategic - Similar to competitive but at Strategic level
What are the steps to undertaking benchmarking programme
- Senior management support
- Understand key process and identify KPI’s
- Choosing type of benchmark and who
- Comparasion and develop imporvements
- Monitoring
What are the advantages of a formal planning process
- Identifies Risk
- Forces managers to think (creativity and innovation)
- Forces decision-making
- Better control over taregts
- Consistency at all levels
When crafting a strategy Mintzberg mentions what essentials
- Manage stability
- Reconcile change and continuity
- Know the business
- Manage patterns
What are the features of Incrementalism
- Small and slow changes
- May result in not meeting cutomer needs
- No clear plan
What are teh CIMA code of ethics and understanding
- Professional Behaviour - Obide by laws and regulations and treat people with courtesy
- Integrity - Act honestly and truthfully and not be assocaiated with misleading info
- Professional Competence and due care - Professional knowledge
- Confidentiality
- Objectivity - do not allow bias, conflict of interest or undue influence
List the parties that fall into the ICE category
- Internal
- Employee’s/Managers
- Connected
- Shareholder
- Banks
- Suppliers
- Customers
- External
- Gov
- Pressure gropus
- Trade Unions
In what order should the acitivites be carried out in the RPM
- Env Analysis
- Mission
- Objectives
- Corp Appraisal
- Resource Audit
- Mission
- Objectives
- Env Analysis
- Resource Audit
- Corp Appraisal
Name and explain the levels of Strategy
- Corporate - what markets should we be in
- Business - how we should approach a certain market
- Operational - Decision of strategic importance such as investment in P&M and personnel)
How can sustainability be embedded
- Strategy and oversight - Define what it means to your company (intergration drivers)
- Execution and alignment - Establish responsibilty and communicate (training)
- Performance and reporting - Link in to profit, measures and monitor (appoint champions)
What order should Environmental anaysis be carried out:
- Competitors analysis
- Five Forces
- Industry life cycle
- PEST
In what order should scenario planning be carried out
- Define scope and stakeholders
- Identification of trends and uncertaintiy
- Construct initial scenarios and check
- Develop learning scenarios
- Develop quantative models
When looking at business activites explain what should happen in each level of a business apex (Corp, SBU, Operational)
Corporate = What business should we be in
SBU - How we should approach a market
Operationsl - decisions of stragetic importance such as investment in P&M and Personnel
Explain Advocacy & Self Interest in terms of threats to ethics
Adv - promotion of client or business to the extent that the accountants objectivity is compromised
SI - if a financial or another matter influences the accountants behaviour
