E3 - 2. Analysing the Organisational Ecosystem Flashcards
What is the organisational ecosystem concept?
A business ecosystem is an economic community supported by a foundation of interacting organisations and individuals, that evolves around a leading member in the same direction and whose actions influence each other
What are the 4 elements of a SWOT analysis and the strategic approaches that match them?
- Strengths - maintain, build, leverage
- Weaknesses - remedy or exit
- Opportunities - prioritise and optimise
- Threats - counter
What are the 2 categories of primary stakeholder?
Internal and connected (financial)
What is the category of secondary stakeholder?
External (e.g. government, pressure groups, local community)
What are the 4 sectors on Mendelow’s matrix for prioritising stakeholders?
- Low interest low power - minimal effort required
- High interest low power - keep informed
- Low interest high power - keep satisfied
- High interest high power - Key player
What 5 things can influence stakeholder power?
- Position held
- Resources controlled
- System power
- Expert power
- Poersonal power
What 4 actions can manage important stakeholder relationships?
- Make someone personally responsible
- Allocate resources to problem relationships
- Formal reporting
- Frequent contact
What are the 4 main options for resolving conflicting stakeholder objectives?
- Sequential attention
- Satisficing (compromise)
- Fulfilling other objectives (‘side payments’
- Use of power
What are the 5 elements of Porter’s 5 Forces?
- Supplier power
- Buyer power
- Threat of new entrants
- Threat of substitutes
- Competitive rivalry
What are the 4 main limitations of the five forces model?
- Less useful in fast changing environment
- Ignores industry collaboration
- Ignores potential impact of government
- Implies we are ‘at war’ with our customers
What are the 4 elements of Porter’s Ecosystem Diamond?
- Strategy, structure and rivalry
- Factor conditions (Basic = climate, resources, population, Advanced = education, transport, telecoms)
- Related and supporting industries
- Demand conditions
What are the 4 main ways that government can affect the structure of an industry?
- Capacity expansion (e.g. via tax relief, investment in infrastructure)
- Competition policy
- Product regulation
- Control of transactions via regulation or operations via licenses
What are the 6 elements of PESTLE macroeconomic analysis?
- Political
- Economic
- Social
- Technological
- Legal
- Environmental
What is non market strategy?
Organisations should think about their corporate social responsibility and relationships with governments and civil society
What are the 3 main methods of corporate political activity?
- Lobbying government
- Appointing influential non execs
- Steering public opinion
