Chapter 5-8 Flashcards
What are the advantages of being a cost leader
- Create Barriers to entry
- EOS
- Remain profitable during price cutting stages of PLC
- Price allows greater market share
- Margns increase and market prices increase
What are the advantages of following a Differentiation strategy
- Barriers to entry
- Reduces impact of price through quality
- Customer loyalty and switching costs
What is Ansoff’s Matrix used for
Used to look at the Growth options available to an Org when looking at Market (vertical) and Product (horizontal)
What are the options available in Ansoff’s Growth Matrix
Present Market - Present Product
- Market Penetration
- Withdrawl
- Consolidation
Present Market - New Product
- Product development
New Market - Present Product
- New use
- New Geographical
- New segment
New Market - New Product
- Diversification
Explain Diversification
Vertical - Aquire suppliers or customers
Horizontal - Aquire rivals or merge
Unrelated - new business with no connection
Explain Lynch matrix
This looks at the methods an Org can expand into Markets
What options are available for Lynch Expansion matrix
Home country and Internal development
- Internal development
Abroad and Internal development
- Exporting
- Overseas office
- Overseas manufature
- Multinational/ Global Ops
Home/Abroad & External Development
- Aquisiton
- Merger
- JV
- Licencing
When looking at Strategic Options what 4 theories are available
Porter generic strategy (Basis for competetion) - be a cost leader or differentiator
Bowman Strategy clock - you can be a hyrid through
- High sales
- Core competences
- Market Entry
Ansoff Direction Method Matrix - New Product New Market
Lynch Growth Matrix - Home/Abroad - Internal/External Development
What are the reasons to Demerge
- Focus on core competences and markets
- Increase P/E ratio in growth areas of business
- Let S/h invest in the strategy and bix they support
- Raise capital for debt clearance or reinvestment
What are the downsides of a demerger
- Loss of synergies/EOS
- Complicated when splitting Assets
- Legal and tax implications
What options are available when evaluating strategies
- Suitability
- Acceptability
- Feasability
Explain Suitability when evaluating strategies
- Does it fit with the Org goals
- Will it recifty weakness and exploit strengths/core competences
- Does it deflect environmental threats
Explain Acceptability when evaluating strategies
- How much risk is assocaiated
- Different S/h have different risk appetites
- Will Stake/h accept strategy (customer, bank)
- Financial - will it help meet goals
Explain Feasibilty when evaluating strategies
- Finance - do we have cash
- Capability - Can we do it
- Response - can Org deal with competitors response
What are the available IS
- MIS - Converts data for internal use
- DSS - Uses data to support decision making
- ERP - Stores and manages data from across business
- EIS - Processes Internal/External and Hostoric data for graphical output
- TPS - high colume of data processed
- ES - Able to make structured decisions
What is Earls Nine reasons for IT/IS Strategy
It is a source os CA so should not be left in hands of just IT people
- Critical to biz
- High costs
- Efeective MGMT
- Source of CA
- Structural changes may occur
- Stakeholders are affected so analysis of impact
- Technical issues in and out of IT
- All levels of staff are impacted
- Revolutionary changes are possible
When developing IT strategies what 3 core components can be look at
ISS - How to exploit info to support biz strategies
ITS - **What **technologies will assist the ISS
IMS - **Who **will manage the ISS & ITS
What is a DBMS and used for?
Database MGMT system which stores data and allows many applications to extract information
What types of knowledge is out there
- Explicit - Org has stored in hard or soft forms
- Tacit - Info held by a person
What computer programmes are available when looking at Knowledge Management
- Shared folders
- External databasis
- Search engines
When turning Tacit knoweldge into explict there are 4 forms:
- Socialisation - general chat
- Externalisation - Formalising knowledge via reports etc
- Combination - Brainstorming / Groups
- Internatisation - Still in groups but light bulb moment comes after and then made formal
What specific applications are available when we look at KM sharing and explain
- Intranet - Internal network
- Extranet - Collabrative network sharing
- Intronet - Intranet is shared with trusted agencies
- Supranet - Set up in co-operative manner but no one entity has control
- Expert Systems - replace human beings in decision making
Explain the 3 types of data
- Financial Data - Standard financial metrics such as profitability KPI’s
- Enterprise Data - Include the above plus operational and transactional data such as customer satisfaction KPI’s
- Big data - All of above plus new internal and external data much os which is unstrucuted
The big data tools used to extract info and knowledge from the data available include:
- Data Analytics - Algorithms to analise large data
- Cloud - remote servers used to hold and pcross data
- Dashboards - presents data in easy format
- Internet of things - everything using internet
- Datamining - mathmatical analysis to identify patterns
- Metadata - data that decribes data
- OLAP - Real time data analysis
- Predictive Analytics - Liek data minign but predicts patterns in future
What are the limitations of DPP
- Focus on cost reduction ratehr than customer satisfaction
- Doesnt consider inter-relating products
- Analysis may be more expensive than benefits
Kotler idenitfies 5 Brand Strategies
- Line extension - Exisiting name to new vairants
- Brand extensions - exisiting brand to new products in new category (Mars Ice cream)
- MultiBranding - Launch several brands (Kellogs)
- New Brands - New Brand completely (Dasani)
- Co-Branding - Two brands combined (Sony playstation)
How do you create a marketing strategy
- Define the market - Key requirements needed to be succesful
- Understand the gaps - point of entry
- Competitor analysis
- Determine strategic planning structure
Earl said that there are 3 ways strategy can be developed. What are they?
- Business Led (Top Down)
- Infrastrucure Led (Bottom up)
- Mixed (Inside out)
Explain Earl’s 3 leg theory to strategy development
- Business Led (Top Down)
- Develop Objectives
- Use of IT/IS to support
- Use specialist to achieve
- Infrastructre Led (Bottom up)
- What IT/IS are aviailable
- How will they help business achieve
- What oppurtunites are available using that technology
- Mixed (Inside out)
- Look outside to what is available
- Creative think how it can be used in business
You can use Earl’s Grid to asses the current use of IT/IS. Explain
Earls Grid looks at Value in Business & Tech Quality. Has major impact on how we invest in CURRENT IT/iS
- Low ViB/Low TQ - Divest
- High ViB/Low TQ - Renew
- High ViB/High TQ - Maintain/Enhance
- Low ViB/Low TQ - Reassess
Explain the use of McFarlan & McKenney Strategic Grid when looking at designing an IT/IS Strategy
This grid maps the dependance on current IT/IS systems for an Org.
Strategic importance of Planned IT v Strategic importance of current
- Low Planned/Low Current = Support
- High Planned/Low Current = Turnaround
- High Planned/High Current = Strategic
- Low Planned/High Current = Factory (Think P&M)
Explain the use of Peppard Applications portfolio when developing IT/IS Strategy
This compares the strategic importance currently in the future vs the strategic importance of the predicted future competitive environment
- Low PF/Low CF = Support
- High PF/Low CF = High Potential (plan)
- High PF/High CF = Strategic
- Low PF/High CF = Key Operational
What is the calculation of relative market share
Turnover/largest competitors
What are the advantages and disadvanatges Focus Market Strategy
Adv
- Specialise
- Secure market away from comp
- Investment in market ops not as substantial as smaller market
Dis
- Vulnerable to larger comptetitor
- May not be enough returns
- EOS not achieved
What are the features of a Learning Org
- Free of blame for taking calculated risks
- Allowed time to develop new ideas
- Knowledge is trf throughtout org
- Learning is seen as everyones responsibility
- Training is of utmost importance
- Learngn is linked in with reward scheme for performance management
What are the 3 V’s of Big data and explain
- Volume - high colume of data. The bigger the more potential
- Verocity - the speed at which the data is processed
- Variety - unstructured diverse data
List the values of big data
- Transparency - reveal insigths to trends
- Performance improvement - real time accurate info enables performance to be improved
- Decision making - analytical toold to identfy trends
- Market segmentation - voleume and variety allows creation of specific target markets
- New products and services - data re social trens and customer behaviour can alter strategy
What are the 3 phases of CRM
- Aquistion
- Retention
- Extension
What are the characteristics of Data Warehouse
- Stores data for use (Not for analysis)
- Used across the Org for decision making
- Enables consistency when making decisions
- Improves speed of response by an Org
What is Data Mining
Looks for trends and hiddern patterns/relationships in large pools of data. Can gove Org better insight into customer behaviours
What is the 7 P’s of Marketing Mix
- Product
- Price
- Place
- Promotion
- People
- Process
- Physical evidence
What is a mash up?
A web application that uses content from more than one source to create a single new service displayed in a single graphical interface
What is Competence Syndication when it comes to IT
This involves sharing of unique competences between businesses
Name 3 sources of information that will be used by a Decision Support System
- Internal and External info
- Qualatitive and Quantative info
- Tactical information
With IMS what responsibilites fall under its remit
- Plannign and control of IS developments
- Allocating IT staff
Give some features of an Expert system
- Can be purchased off the shelf
- Trial and error can be used to perfect
- Rules governing it can be updated
What are the Change Adept features according to Kanter
- Innovation
- Professionalism
- Collobratitive
When looking at Lewin’s stages of change what are each features
Unfreeze
- Selling change
- Giving motive to change attitudes, values or systems
Change
- Identify new desirable state
- Communicate and encourage
ReFreeze
- Consolidation and reinforcement
What are the features of Theory O and Theory E
Theory O
- Participative
- Emergent (rather than top down)
- Encouragement of staff for suggestions and share ideas
Theory E
- Top down
- Changes are planned and programmatic
- Formal structure and systems
