Exam Flashcards
What is a hierarchical organisation structure?
Pyramid shaped structure in which the chain of command goes from the top down
What is a functional organisation structure?
Similar to a hierarchical, chain of command goes from top down, employees are grouped according to their skills and function in the company
What is a flat organisational structure?
Few levels between staff and upper management, encourages less supervision and more involvement
Explain the stages of the product life cycle
Development - Process of new product development
Introduction - new product launched, low sales, negative cash flow
Growth - more sales, positive cash flow, new competitors
Maturity - slowing sales, more intense competition, strong cash flow
Decline - falling sales, market saturation, competitors leaving market
Explain the Boston matrix model
Products are grouped into 4 sections of the model based off their growth rate and market share
Stars - high growth, high share
Cash cows - low growth, high share
Question marks - high growth, low share
Dogs - low growth, low share
Explain porters generic strategies model
A model showing 4 different strategies that could gain you a competitive advantage
Cost, Broad - Cost leadership
Cost, Narrow - Cost focus
Differentiation, Broad - Differentiation leadership
Differentiation, Narrow- differentiation focus
What are business aims?
What the business wants to achieve in the long term future, businesses will set objectives which ultimately help reach the aim
What is a mission statement?
A summary of the aims and values of a company, and its purpose
How does the political environment affect businesses?
- Tax rates
- Suppliers located overseas in politically unstable countries
- government policy
How does the economic environment affect businesses?
- interest rates
- exchange rates
- gdp, recession, booms, affecting how much the public is spending on non essential goods
What are the five stages of tuckmans group development model?
Forming Storming Norming Performing Adjourning
Explain the customer lifecycle model
Awareness Research Comparison Purchase Retention
Explain the power interest matrix
- Low power, low interest - monitor
- Low power, high interest - keep informed
- High power, low interest - keep satisfied
- high power, high interest - manage closely
Explain Lewis’s change management model
Unfreeze - create a need for change and get people on board
Change - involve people in the change process, communicate effectively
Refreeze - anchor the changes by providing support and training, develop ways to sustain the changes
Explain Kotters change model
- establish a sense of urgency
- create a guiding coalition
- develop a change vision
- communicate the vision for buy in
- empower broad based action
- generate short term wins
- never let up
- incorporate changes in the culture
