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
what is BPR
business process re-engineering - the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance such as cost or quality, service and speef
characteristics of a re-engineered process
jobs combined into one ( retraining required) workers make decisions steps are performed in logical order work is performed where it makes sense checks and controls may be reduced
impact of BPR
units change from functional departments to process teams
performance measures concentrate on results and not performance
definition of stakeholders
groups or individuals who have an interest in the strategy and activities of an organisation
3 stakeholder groups
Internal - employees and managers
Connected, stakeholders, customers, supplier
External - government, local community
vertical axis on mendelow power interest matrix
power ( low at the top, high at the bottom)
horizontal axis on mendelow power interest matrix
interest ( low on the left, high on the right)
what is minimal effort on mendelow power/ interest matrix
low power, low interest
what is keep informed on mendelow power/ interest matrix
low power, high interest
what is keep satisfied on mendelow power/ interest matrix
high power, low interest
what is key players on mendelow power/ interest matrix
high power, high interest
what is environmental management accounting
the generation and analysis of both financial and non financial information in order to support internal environmental management process
what are conventional costs
environmental costs associated with production
what are contingent costs
costs to be incurred in the future, for example decomissioning costs
what are reputation costs
where a company acts in a way which may cause harm to the environment and therefore incur a loss of sales due to reputation damage
