Chapter 3 - Environmental Analysis Flashcards
1
Q
Porter’s Diamond
A
- Factor Conditions - Basic, Advanced
- Demand Conditions - “fussy customers”
- Strategy, Structure, Rivalry - competition, long-term view
- Related + Supporting Industries - “cluster”
* Lobby govn to stimulate diamond - CPA
2
Q
Porter’s 5 Forces
(microenvironment)
A
- Bargaining power of suppliers
- Bargaining power of customers
- Threat of new entrants
- Threat of substitute products
- Competitive rivalry
* 6th force - goverment
3
Q
3 types of stakeholder
A
- Internal - staff
- Connected - cmrs, suppliers, lenders
- External - govn, pressure groups
4
Q
Mendelows Matrix
A
Power - Interest
- Minimal effort
- Keep informed
- Keep satisfied
- Key players
5
Q
Resolving stakeholder conflict (Cyert and March)
A
- Satisficing - compromise
- Sequential attention
- Side payments
- Exercise of power
6
Q
Puropses of Competitor analysis
A
- Competitors future strategy
- Predict competitor reactions
- How competitors might be influenced
7
Q
4 dimensions of CSR (LEEP)
A
- Legal
- Economic
- Ethical
- Philantropic
8
Q
Sustainability
A
Use of resources in such a way that needs of future not compromised
- Strategy and oversight - understanding the key drivers
- Execution and alignment - staff training/involvement
- Performance and reporting - setting targets and monitoring performance
9
Q
‘Triple bottom line’
A
- Profit
- People
- Planet
10
Q
CIMA Code of Ethics
A
- Confidentiality
- Integrity - straighforward and honest
- Professional competence
- Objectivity - avoid bias
- Professional behaviour
11
Q
Stakeholder Analysis
A
- identify key stakeholders
- assess their interests
- ways their interests may affect org.
12
Q
Reasons for performing stakeholder analysis
A
- help formulate/implement strategy
- help manage reactions
- improves relations with stakeholders
- improves corporate governance
13
Q
Stakeholder Power
A
- Position
- Resources controlled e.g. union leader
- System power e.g. political access, close to major cmr
- Expert power e.g. knowledge
- Personal power - communication/charisma
14
Q
Four ethical stances
(J, S + W)
A
- Short term shareholder - max profits this year, comply with law
- Long term shareholder - recognise investing makes money in future
- Multiple shareholder obligation - we have a role to play in society
- Shaper of society - doing good more important than profit
15
Q
Reasons for undertaking environmental analysis
A
- Assess competition
- Understand market/industry
- Help meet stakeholders needs
