E2

Question 1

Levels of strategy?

Answer 1

Corporate
Business
Functional

Question 2

Areas of strategy?

Answer 2

Financial
Investment
Competitive

Question 3

A smart objective will perform what?

Answer 3

Prime

Planning
Responsibility
Integration
Motivation
Evaluation

Question 4

3E’s

Answer 4

Economy
Effectiveness
Efficiency

Question 5

Weaknesses of the strategic planning model?

Answer 5

Too rigid. -does not allow us to go backwards and amend strategy.

Based on imperfect knowledge and tries to guess the future. Allowing flexibility reduces stability.

Managers declare strategy after event. Not created in advance, but emerges over time.

People in an organisation choose strategy, not the organisation. Based on dominance of internal groups.

Stately setters are not the same as strategy doers. Management do not understand issues on the front line.

Strategy is not formal, it should be adapted and based on action. Senior management may get too involved with strategy “paperwork”

Question 6

Porters three generic strategies?

Answer 6

Cost leadership

Differentiation - exploit product everyone believes is unique.

Focus - restrict activities to part of the market (segment).
A. Cost focus-
B. Differentiation focus
The above but just to that segment.

Question 7

Logical incrementalism characteristics?

Answer 7

A learning process

Managers have some notion of where the organisation should be.

Managers deliberate keep their decisions small scale.

Question 8

How to you analyse the Macro environment?

Answer 8

Use LoNGPESTEL

Question 9

Porters diamond?

Answer 9

Factor Conditions (countries competitive advantage)

Demand conditions
(Consumer demand in home country, encourage global approach?)

Related and supporting industries
(Available support for industry?)

Firm strategy, structure
and rivalry
(Countries culture management help or hinder?)

Question 10

Forms of FDI?

Answer 10

Foreign direct investment

-acquisition
-greenfield investment
Setting up new facilities in developing nation

Question 11

Order stakeholders bargaining strength

?

Answer 11

Weak:
Dictated by company

Consultation and considération of their views

Negotiation

Participation and acceptance of their views

Democratic voting by stakeholders

Command/dictation by stakeholders

Question 12

Diff between risk and uncertainty?

Answer 12

Risk is quantifiable and uncertainty isn’t.

Question 13

Porters diamond-purpose?

Answer 13

Competitive advantage of a nations industry.

Question 14

Techniques for resolving stakeholders conflicts?

Answer 14

Weighting and scoring

Composite measurements

Question 15

Non mathematical approaches to stakeholder conflict?

Answer 15

Satisficing

Sequential attention

Question 16

Components of rivalry

Answer 16

No or slow Market growth

Cost structure- (high fixed costs=more competitive on price as want to cover FC)

More competitive if easy to switch supplier (coca vs Pepsi)

Capacity -may need high volume for unit cost reduction

Uncertainty- if uncertain about competition, then more strategic planning is put in place.

Strategic importance- of success is a key objective, then they will be more competitive.

High exit barriers- more competitive.

Question 17

What’s does porters diamond help understand?

Answer 17

The competitive advantage of a nations industry.

Question 18

Elements of porters diamond?

Answer 18

Firm structure, strategy and rivalry

Factor conditions

Demand conditions

Related and supporting industries.

Question 19

Factor conditions of porters disons- what are they?

Answer 19

They are the countries endowment (funding,quality,ability) of inputs and production.

Human Resources (skill,motivation)
Physical resources (land,minerals)
Knowledge (education,know how)
Capital (amount available for investment)
Infrastructure (transport,communication,housing)

Question 20

Factor conditions - main types?

Answer 20

Basic factors - natural resources, (little investment required)

Advances factors - modern digital communications, research labs etc

Question 21

What are Demand conditions?

Answer 21

The home market affects how firms operate.
Good if:

No cultural impediments to communication

Segmentation, if other world markets are similar to the home market

buyers are sophisticated and know what they want.

Anticipatory-people needs here predict what other people will want.

Rate of growth-fast

Early saturation- move on quickly to exporting

Big home market creates economies of scale.

Question 22

Related and supporting industries. What is it?

Answer 22

Part of diamond.

Question 22

How does related and supporting industries help he diamond?

Answer 22

Domestic industry help foreign suppliers because they are close, know the culture.

Question 23

Firm structure strategy and rivalry, advantage to diamond?

Answer 23

Structure. Certain contries will prefer a type of company structure.

Strategy -different funding needs and time horizons. How they raise capital and wether they choose to innovate or diversify.

Domestic rivalry- lots of domestic rivalry, then export
Competitiveness- strengthens company.
Each rival learns new strategies .

Question 24

Mintzbergs -managerial role- what are they?

Answer 24

There are three

Interpersonal-leader: figurehead, leader, liaison

Informational-monitor, spokesperson, dissémination of information.

Decisional
Entrepreneur, disturbance handler, resource allocator, negotiator

Question 25

Fayols 5 functions of management.

Answer 25

Planning- determine objectives, strategies policies

Organising- structure of tasks, to achieve goal, grouping into jobs, delegating authority, providing systems of information.

Commanding- give instructions to subordinates

Co-ordinating - harmonising goals for shared goal.

Controlling - measuring and correcting activities so as to accord with plan.

Question 26

Fayols 14 general principles of management.

Answer 26

Division of labour 
Authority and responsibility
Discipline
Unity of command -one manager
Unity of direction- one leader and goal.
Subordination of individual interest to org interest/rémunération of personnel.
Centralisation
Scalar chain
Order
Equity and equality 
Stability of workforce
Initiative
Esprit de corps

Question 27

According to peters and waterman. What two things are excellent companies good at?

Answer 27

Producing commercially viable new products

Responding to changes in the environment.

Question 28

Eight characteristics of Peter and waterman “excellence”?

Answer 28

Passcash

Productivity through people.
Autonomy and entrepreneurship
Stick to the knitting-compétences were built on.
Simple structure-few layers of management
Close to the customer
Action based. Innovate instead of follow.
Simultaneous loose-tight (autonomy and centralisation)
Hands on and value driven.

Question 29

Harrison’s, dif cultures? What are they and characteristics?

Answer 29

Zeus-power culture. Shaped by one individual.

Apollo- role culture.
bureaucratic and shaped by rationality, rules and procedures

Athena- task culture.
Team based, get the job done. Focus on output.

Dyonisis- personal culture.
Shaped by interest of individuals.

Question 30

Robert Anthony’s managerial activities, what are the levels and what do they mean?

Answer 30

Strategic management:
Direction setting, policy making and crisis handling. (Deciding and setting. Goals and objectives

Tactical Management: ways to get there. Controlling resources and innovating. (Thinking “how” planning)

Operational management: routine activities. (Just doing/no thought)

Question 31

Define control.

Answer 31

Process
goals and standards are defined.

Performance is monitored and measured

Corrective action is taken

Question 32

Effective controls system criteria?

Answer 32

Acceptability-fits culture and expectations

Accessibility easy to understand/do

Adaptability to changing conditions and demands

Action oriented déviations trigger action

Appropriateness circumstance and skills

Affordability cost of control needs to be cheaper then letting it go out of control.

Question 33

How do you build relationships to create a collaborative culture?

Answer 33

Tapent programmes: identify professionals from different functions who posses desired skills needed for the futures success. Programmes involve bringing them together

Multi functional teams:
Where Finance professionals increasingly work with others on a range of projects.

Job rotation: more collaborative culture to allow Finance professionals to interact with others on a longer basis.

Coaching and mentoring programmes:
Gives opp to develop close and personal constructive working relationships.

Question 34

Blanchard and Peale question in ethical dilemma?

Answer 34

Is it legal?
Is it balanced? (Fair)
Is it right?

Question 35

Mintzberg how to craft a strategy?

Answer 35

Manage stability 
Detect discontinuity 
Know the business 
Manage patterns
Reconcile change and continuity

Question 36

Reaction/Response profiles to competition according to Kotler?

Answer 36

A
Laid back competitor does not respond

Tiger competitor responds aggressively to all opposing moves

Selective competitor reacts to some threats in some markets but not all.

Stochastic competition is unpredictable.

Question 37

Miles and snow cultural types and strategies they support?

Answer 37

Defenders
Prospectors
Analysers
Reactors

Question 38

Hofsted national cultures dimensions?

Answer 38

High low:

Power distance.
Uncertainty avoidance.
Individualism
Masculinity

Question 39

Communication barriers

Answer 39

Distortion
Noise
Misunderstanding
Nonverbals that contradict message
Failure to give or seek feedback
Overload
Perceptual selection
Differences in background
Poor communication skills

Question 40

Additional difficulties in communication?

Answer 40

Status
Jargon
Priorities 
selective reporting
Use
Timing
Opportunity
Conflict
Cultural values

Question 41

Project vs BAU

Answer 41

Beginning and end
Resources allocated specifically
Unique and done once
Follow plan to clear end result
Cut across functional lines

Question 42

Feasibility study? What is it and what areas does it cover?

Answer 42

Decides wether a project will do its job within constraints:

Financial feasibility
Social feasibility
Technically feasible
Ecologically feasible

Question 43

Tuckman’s stages of group development?

Answer 43

Forming
Storming
Norming
Performing

Question 44

Support activities - in porters value chain

Answer 44

Firm infrastructure
Human Resource management
Technology Development
Procurement

Question 45

Primary activities in Porters value chain.

Answer 45

Inbound logistics
Operations
Outbound logistics
Marketing and sales
Service

Question 46

6 types of asset specificity?

Answer 46

Physical asset (like raw minerals)
Dedicated asset (man made for one application)
Site (based on location)
Human asset (skills and knowledge relevant to single org)
Temporal (time based, like landing slot)
Brand name (brand equity)

Question 47

Two types of FDI and what they are?

Answer 47

Acquisition
purchasing existing company in developing nations

Greenfield investment
Setting up new facilities in a developing nation

Question 48

What techniques have successful emerging nations used? And description.

Answer 48

Export of national commodities, selling oil metals or land. (Generating income and investing that)

Import substitution
Create import taxes or tarifs to protect national economy

Export led industrialisation
Devalue currency to make exports cheaper and imports expensive

Question 49

Hersey and Blanchard situational leadership?

Answer 49

Delegating
Able confidence
Participation
Able not confident
Selling
Unable confident
Telling 
Unable not confident

Question 50

Types of power by French and Raven?

Answer 50

Coersive
Reward/resource
Legitimate/Position power
Expert power
Referent/Personal power (charisma)
Negative Power (power to disrupt)

Question 51

Trompenaars Elements of culture?

Answer 51

(Observable)
Behaviour-how people are/customs and rules.
Artefacts-stuff around/role models/stories
Rituals-events/ways of doing things
Symbols-logos and brand image

(Unobservable)
Value and beliefs
Assumptions

Question 52

Industrial Relations, what are the different approaches?

Answer 52

Adversarial-employees exercise power through refusing to cooperate

Traditional- good day to day, employees reacts through elected delegate.

Partnership-involves employees in policy writing, but retains power to manage.

Power sharing-employees involved in day to day and strategic decisions.

Other types:
Avoidance strategies-not recognise unions and relocation.
HR management strategies, make everyone individual and single status.

Question 53

Causes of horizontal conflict?

Answer 53

Difference in goals
Difference in personality types
Task interdependence
Scarcity of resources
Power distribution
Uncertainty -in times of change
Reward system -if rewards one department penalising another

Question 54

Causes of vertical conflict?

Answer 54

Resource Distribution- (between owners and workers) how will wealth be shared?

Power

Alienation -workers have Boeing repetitive jobs and don’t feel part of organisations .

Politics