GM1403 MASC Flashcards

Question

The 8 pilers ? (Bocken)

Answer 1

1-3 Technological 4-6 Social 7-8 Organisational 1. Maximize material and energy efficiency 2. Create Value from Waste 3. Substitute with renewables and natural processes 4. Deliver functionality rather than ownership 5. Adopt a stewardship role 6. Encourage sufficiency 7. Repurpose for society /enviroment 8. Develop scale up solutions

Answer 2

Do more with fewer resources, generating less waste, emissions and pollution.

Answer 3

Important to seek and identify and create new value from what is currently perceived as waste.

Answer 4

Reduce environmental impacts and increase business resilience by addressing resource constraints ‘limits to growth’ associated with non-renewable resources and current production systems

Answer 5

Provide services that satisfy users’ needs without having to own physical products.

Answer 6

Proactively engaging with all stakeholders to ensure their long-term health and well-being. (Downstream Stewardship: include proactively tackling the health issues of consumers. This is particularly relevant in the food, beverage and tobacco sectors, where health issues are arising due to modern diets and over-consumption, combined with increasingly sedentary life-styles. The food and beverage sector therefore has an opportunity to enhance public health through actively encouraging a more healthy diet.) (Upstream Stewardship include the Marine Stewardship Council (MSC, 2012), the Forestry Stewardship Council (FSC, 2012) and the Better Cotton Initiative. Features of such business models are often a supplier accreditation programme that drives more ethical or sustainable business practices at the grass-roots level (often in developing nations).

Answer 7

Solutions that actively seek to reduce consumption and production.

Answer 8

Prioritizing delivery of social and environmental benefits rather than economic profit (i.e. shareholder value) max- imisation, through close integration between the firm and local communities and other stakeholder groups. The traditional business model where the customer is the primary beneficiary may shift.

Answer 9

Delivering sustainable solutions at a large scale to maximise benefits for society and the environment.

Answer 10

1. Business models are based on historical examples of innovations, though a renewal from time to time might be needed. 2. High focus on environmental innovations compared to social innovations. 3. Low quantity of good articles (data) for the research because sustainable business models are emerging in academia.

Answer 11

Represents the flow of biological materials such as food, cotton or wood that can be safely returned to the environment. Central for value extraction in this cycle are cascades. Used products or materials are cascaded into different uses as value extraction degrades them over time. Finally, they are returned to the biosphere to serve as nutrients for living systems, such as soil, which provides the economy with renewable resources. An example would be wood that is firstly used as furniture material, then chipboard, and finally firewood before it re-enters the biosphere as ash. ”

Answer 12

Represents the flow of technical materials such as metals, synthetic chemicals, and plastics. It is vital that these materials do not become waste. They should instead be reused, remanufactured or recycled so that they may re-enter the economy. As the consumption of technical material should be avoided, the customers of these materials should be regarded as users rather than consumers. This article will focus on the technical cycle.

Answer 13

1. Engage in conversation, change the rules. 2. Build a foundation of knowledge and engage coworkers 3. Communicate and collaborate with customers and partners 4. Design the elements of the circular offering. * No one-size-fits-all solution! * Core question to ask themselves is: How can we as a company, most efficiently, reduce our dependence on virgin material? * Product (re) design: the design of the product need to support re-use. * Takeback system: How should we return the product to reuse it? Close relationship with customers or a logistic solution? * Revenue model: The revenue model should instead be designed to achieve two things. Firstly it needs to decouple the revenue from the dependence on virgin material and secondly, it needs to support the takeback system. * It’s vital to understand the customers value in order to make the correct choices!!

Answer 14

Strategies and tools to influence employees, groups, and units to work towards organisational goals.

Answer 15

Almost everyone! Marketing & Sales R&D & Production Logistics Quality management Legal, finance, and other support functions Controllers (Almost everyone)

Answer 16

1. To manage opportunism/fairness - Safeguard against being exploited - Profit sharing and pricing issues 2. To enable efficient exchange - Co-ordination of operational exchange - Information sharing - Knowledge transfer sharing 3. To align inter- & intra-organisational goals and strategies.

Answer 17

Interconnections between organisations that allow for economic specialisation

Answer 18

Structural dimensions (hard factors) Affective dimensions (soft factors) Temporal dimensions (relationships are not static)

Answer 19

1. Activity system (who does what) 2. Resource distribution (who has what) = Product 3. Interaction patterns 4. Contracts 5. Investments 6. Adaptations

Answer 20

1. Trust 2. Commitment 3. Norms 4. Satisfaction and Conflict 5. Goals and negotiations

Answer 21

Longevity Cumulativity (the importance of history) Institutionalisation

Answer 22

Transactional or collaborative

Answer 23

No, it’s necessary for efficient allocation of resources and activities. It is not a question of whether you have relationships, but what kind of relationships

Answer 24

1. Nature of product - commodity vs adapted 2. Importance of the product - consequence of loss 3. Supply market conditions - readily available or scarce 4. Resources to spend on relationship maintenance and development 5. The counterpart’s interest in us 6. Our joint history

Answer 25

Transactional relation Contact phase Contract phase Execution phase Inter-firm relationship pattern Market-based pattern Bureaucratic pattern Trust-based pattern

Answer 26

Transaction characteristics, transaction environment characteristics and party characteristics.

Answer 27

1. Supplier selection 2. Concept development 3. Joint product and/or process design 4. Deliveries (production) 5. Price revisions & Product and process redesign.

Answer 28

Concurrent engineering Interorganizational cost investigation Quality-function-price trade off Kaizen "Value analysis"

Answer 29

(1) to design a product that can be manufactured more cheaply, (2) to reduce the costs of on- going production, and (3) to make the relationship as such more efficient.

Answer 30

1. Emergent relationship development 2. Strategic relationship transformation - Commanding interventions - Engineering interventions - Teaching interventions - Socializing interventions

Answer 31

(Need of an atmosphere of trust.) Sharing costs and other accounting information in a supply chain (mostly common suppliers providing customers) Buyer perspective (why?) Supplier perspective (why not?) Incentives (buyer to supplier)

Answer 32

1. Distrust 2. Pricing model 3. Uncertain benefits 4. Policy 5. Buyer’s competence (not enough) 6. Time horizon (taking a risk today, but benefits will come in the future) 7. Investments required) 8. Relies on new logics

Answer 33

1. Cost control - Efficient processes (the suppliers) - Purchases (are the suppliers-suppliers’ prices fair) - Continuous improvements 2. Price control - Avoid overcharging - Competitive supply chain 3. Avoid misunderstandings - Concerns both parties 4. Relieve tension and gain knowledge to - Learn about supply chain - Use against supplier

Answer 34

1. Basic requirement (If you don’t you won’t be our supplier, Volvo says this) *Power relationship* 2. Efficiency gains - Within relationship (more likely to be selected next time) - Outside relationship (more competitive when competing for other contracts) 3. Understanding 4. Relieves tension 5. Profit margin (if known you could’ve guaranteed the profit margin) 6. Special incentives (promise to) - Favoured supplier - Longer contract - Greater volumes

Answer 35

Asset specificity Significant relationship-specific investments High degree of commitment Focus on joint benefits Uncertainty Few alternative suppliers High switching costs Product critical to buyer Interdependence Self-regulating behaviour through trust Cumulatively A relational purchasing strategy is employed with formally independent suppliers when there are significant efficiencies arising from adaptation, coordination and control that are not possible with market procurement. One aim of relationship-specific investments is long- term inter-organizational cost management

Answer 36

1. Asset specificity Limited relationship-specific investments Low degree of commitment Focus on own benefits 2. Uncertainty Many alternative suppliers Low switching costs Product of limited importance to buyer Interdependence Opportunism checked by buyer No Cumulativity Transactional purchasing strategy = A transactional purchasing strategy is associated with market procurement. This approach is preferred when the market generates greater efficiencies than are possible through coordinated internal investments. It is also more likely when investment specificities are not offset by the frequency or volume with which a product is needed or by the costs involved in identifying and contracting new suppliers.

Answer 37

1. With a relational purchasing strategy, information sharing based on an open book policy is intended to support activities aimed at reducing costs in a supply chain, such as joint product development. n that sense, openly sharing data may be the foundation of an inter-organizational management control system enabling, for example, value engineering and continuous improvements/kaizen. Trust building. 2. With a more transactional purchasing strategy, disclosing data to build trust is arguably less relevant. In this context, the “control” purpose of OBA refers to facilitating the monitoring of suppliers and exerting accountability rather than supporting the planning and coordination of activities within and across organizations. For an open book policy to be likely under these circumstances, we would therefore expect power asymmetries favoring the buyer. Such forced (vs. cooperative) approach also implies that the supplier has to accept forms om accounting communication dictated by the buyer.

Answer 38

Joint target costing Open book accounting

Answer 39

Cost platform (Often simultaneous with supplier evaluation)

Answer 40

1. Expected annual price reductions (learning, other efficiencies) 2. Factors that might change prices (volumes, raw material prices) 3. Product and process redesign 4. Simple value analysis and target costing (Often costly to change products and processes)

Answer 41

Uses of open books not tied to a formal cost management technique

Answer 42

Transactional purchasing strategy - Cost data is used to reduce purchase price Relational purchasing strategy - Cost data supports joint cost reduction

Answer 43

1. Nature of data and accounting data disclosure practises - Types of data - Main cost objects - Extent of disclosure - Forms of disclosure - Direction of data disclosure 2. Uses of disclosed accounting data - Main purposes - Specific decisions and activities supported 3. Conditions of open book accounting - Attitudes to cost data disclosure - Incentives to disclose data

Answer 44

The cost. Read text: ”Till exempel betonar representanter för ReTailer att deras begränsade resurser tillåter dem att endast driva ett fåtal projekt åt gången och att implementering av ett allmänt system med öppen bokföring tar tid och kräver betydande investeringar. Även om OBA bör ses som ett sätt att minska förhands-och efterhandskostnader, kan implementering och användning av systemet därmed också generera stora transaktionskostnader.”

Answer 45

Interdependencies - You show your book to another company and they show them yours. Doesn't only have to be cost management, but also could one company want to make the other company more efficient which in turn will help both with cost reducations.

Answer 46

- Could use information from OBA as a benchmark for negotiations with other (new) suppliers. - Another example of accounting for indirect effects is when Food Store used the other supplier relationships to identify areas for improvement and managed to use the market forces to put pressure on Meat Raw.”

Answer 47

”We believe that the key role of OBA is that it works as a catalyzer and points out areas for improvement and therefore areas where actors can learn how to develop and use resources more effectively.”

Answer 48

”From a managerial perspective we believe it is of considerable importance to acknowledge the importance of indirect relationships. If a firm strives to increase revenue or to cut costs, the effects of these efforts will be leveraged provided that the focus is on indirect relationships and their resource interfaces. For example, the leverage of using the price mechanism will be a more powerful tool if it is applied through the embedded relationships instead of only within the direct ones.”

Answer 49

Employees are flexible, knows/learns how the system works (repair the systems etc), trust that people are fulfilling the systems.

Answer 50

-Face-to-face communication - It's harder to "hålla minen" if you have done or planning to do something unethical with socialising accountability.

Answer 51

-Contrast to social accountability - We might prioritise showing good instead of being good. - Overall goals aren’t prioritized over my own goals. “Don’t risk lending my employees to you because then there’s a risk, I will miss my set goals.”

Answer 52

Hierarchical accountability is dominating in organisation because of high self-interest from employees and sub-managers. Solution? At the after-works or business trips superior managers wants to skip the “performance talk" and involve the other managers in discussions without involving the “numbers”.

Answer 53

IT= Regular meetings for discussing the focus "KPI:s" for example. Flex= It's not important that you don't have good numbers, but it's important to know why it's bad and what you're going to do about it. Repair = A yearly meeting for discussing if a need in KPI:s or PI is needed. PI changes all the time but the KPI:s only change if you have a good reason for it. Global Transparency = You don't only contribute to your own division and KPI, but also at least one other divison, to create a better holistic view over the company.

Answer 54

- Accountability perspective is that if a manger fails, then it’s the superior managers fault of putting that manager in that division in the first place. (Column 2 Enabling design (How managers could support the divisions, BRM e.g.,) (Column 3 (How we trigger the enabling design, how managers should gå tillväga or use the design)

Answer 55

Opaque selves selves, mediated selves & exposed selves.

Answer 56

When we can’t explain ourselves – we don’t know why we did it. “I have a hunge, a feeling and did it”. Companies don’t like this – if it works, fine! But otherwise no. Auditor example: If put 5 hours extra to investigate and find something – then its good but otherwise it will be problematic.

Answer 57

- Performative perspective! - Choose between showing good or doing good. - Demand for accounts changes how we act.

Answer 58

- The ways in which we can account are limited 2 problems: Too few opportunities (ways to account) – we have more things we would like to show but cannot do this because of the lack of time or opportunities. “We know it looks bad in the report right now, but in next year it will look good “ Too many ways to account. You as an employee – you have to choose to be a good colleague, be cost efficient or this this this this this… We are offered more ways to account but this causes stress and you have a hard time to prioritize and you want to succeed in every accounting way but it’s not possible.