flashcards
what is porters generic strategy
theory that highlights the potential strategic positions a business can adopt in relation to competitive stop and competitive advantage. A sustainable competitive advantage is key to a business maintaining profitability above the industry average
- cost leadership - aim to be lowest cost producer in an industry.
- differentiation - aims to add maximum value through a USP that allows ability to charge higher price
explain the boston matrix?
model that helps a business to analyze its product portfolio. Each product is characterised within the matrix based upon its market share and market growth.
problem child
rising star
cash cow
dog
explain maslow’s hierarchy of needs?
theory of motivation that believes that as one human need is fulfilled greater motivation is achieved by moving to the next level
level 1: physical needs
level 2: safety needs
level 3: psychological needs
level 4: self-esteem
level 5: self-actualisation
explain porters five forces of competitive position?
framework that helps businesses to analyse their position, and therefore attractiveness in a market. Each of the forces will effect profitability and competitiveness in an industry.
the intensity of competitive rivalry
buying power of customers
selling power of suppliers
threat of substitutes
threat of new entrants
explain the blake mouton grid
considers management styles in relation to the level of concern for employees versus the level of concern for production
grid shows concern for production vs concern for people
impoverished style of management
country club management
team style management
produce or perish style
middle of the road style
explain ansoffs matrix?
model that assess the degree of risk versus potential reward for strategic options based on weather the market or product are new or existing
market penetration - existing product / existing market
new market development - existing product / new market
new product development - new product / existing market
diversification - new product / new market
explain herzbergs dual factor theory?
theory of motivation based on concept of two types of factors - motivating factors and hygiene factors
motivating factors - presence of these factors helps motivate workers (promotion, growth)
hygiene factors - if these are absent they can cause dissatisfaction. However, their presence does not create satisfaction (pay, work conditions, job security)
explain greiner’s model of growth
model that highlights the typical phases a business will travel through as it grows in size and becomes more stablished. As a business evolves it will reach a crisis point at which time action needs to be taken
phase 1: creativity, lack of formal hierarchy
crisis 1: need for direction
revolution: leadership
phase 2 characteristics: more formal approach including the introduction of a functional structure
crisis 2: autonomy
revolution: greater delegation
phase 3 characteristics: decentralized decision making and the possible introduction of profit centers
crisis 3: fear of loss of control
revolution: introduce more formal procedures
phase 4 characteristics: centralized decision marking, formal policies and procedures
crisis 4: red tape
revolution: coordination HQ and functions
phase 5 characteristics: greater communication and team work
crisis 5: potential future crisis but will vary between organizations
explain bowmans strategic clock
model that outlines different strategies used by businesses based on combination of price and perceived added value. This influences competitiveness of a product, giving the business an advantage over its competitors
- low price, low added value
- low price
- hybrid
- differentiation
- focused differentiation
- risky, high margins
- monopoly pricing
- loss of market share
1,2,3,4,5 competitive
6,7,8, non competitive
explain taylors scientific management
theory of motivation based on concept of humans as economic man ie motivated by money
time and motion study / identify best way of completing a task / detailed instructions with close supervision / PIECE RATE PAYMENT SYSTEM / increased output as motivated by money
explain Carroll’s corporate social responsibility pyramid?
theory that highlights the four aspects of corporate social responsibility. Society expects businesses to meet their obligations in relation to all four aspects
- economic responsibility - obligation to survive (pay fair rate to employees whilst also rewarding investors)
- legal responsibilities - act in a way that is law abiding
- ethical responsibilities - behave in a way that is seen to be morally correct
- philanthropic responsibilities - to be a good citizen
explain kaplan and nortons balanced scorecard
strategic system used to plan and manage business’ activities in relation to its vision statement. Attempts to link the vision of the future to the day to day running of the business at present.
main areas business looks at are:
- finance
- internal business processes
- learning and growth
- customer
explain elkingtons triple bottom line
model used to measure the performance of a business against three key performance indicators
performance indicators are:
- profit
- people
- planet
involves looking at implications of a business actions in relation to stakeholders
- profit - shareholders
- people - employees
- planet - society
explain the tannenbaum and schmidt continuum
leadership model based on spectrum that shows 7 levels of delegation ranging between the two extremes of manager-centered and subordinate-centered approaches
approach the manager adopts will depend upon
- forces in he manger
- forces in the subordinates
- forces in the situation
explain hackman and oldham model of job design
model identifying the aspects of a job that can be motivational and therefore impact on an individuals performance.
five job characteristics : skill variety, task identity, task significance, autonomy, feedback
