Chapter 4 Flashcards
what are functional departments
production sales etc directly under senior management - need to provide info for each department
what are divisional departments
based on product ranges or market segments - - need to have a clear understanding of the strategy
what are network structures
they outsource many processes - have a core firm and then partners managing each outsourcing
why do service business create extra challenges
Simultaneous
Heterogenous - varies from day to day
Intangible - no physical offering
Perishable - only last for a period of time
why does there need to be business integration
so activities are co-ordinated and create value
examples of things in the value chain that might help one another
more expensive product design might mean less after sales after care
how can a business use a value chain to improve performance
invent new or better ways to perform activities
combine activities in new or better ways
manage linkages in value chain
manage linkages in the value system with other companies
what are the 7ās in McKinseys 7S model
structure strategy systems shared values skills staff style
what are the hard s
structure
strategy
systems
what are the soft sā
shared values
skills
staff
style
what is strategy
how they are going to outperform competition
what is systems
processes and procedures, systems used by management, hr, accounting etc
what is style
management style - how they conduct themselves
what is shared values
what guides employees
what is staff
type of employees recruited and how they are trained
