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Important Flashcards

1
Q

What is strategy

A

direction and scope of an organisation over long term

achieves advantage for organisation

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2
Q

What is corporate strategy concerned with

A

basic direction for the future, purpose, ambitions, resources and how it interacts with the world it operates in

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3
Q

Three levels of strategy

A

Corporate

Business

Functional

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4
Q

What approach is described
set gaols first then design strategies to reach them

A

rational planning

top down

formal

traditional

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5
Q

What approach is described
build management team with right strategic skills

A

Emergent approach

bottom up

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6
Q

What are benefits of strategic planning

A

Creates process to detect and respond to changes in market and environment

avoid STism

Monitor progress by stages

improve stakeholder perception

goal congruence

developm management potential

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7
Q

Criticisms of strategic planning (Mintzberg’s)

A

Practical failure - not proved by studies

routine and regular

reduce initiative

internal politics ignored

exaggerate power

impractical

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8
Q

five steps in rational planning model

A

corporate appraisal

set mission and objectives

gap analysis

strategic choice

implement strategy

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9
Q

five types of strategy

A

intended

deliberate(implemented intended)

emergent

unrealised

realised

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10
Q

Criticisms of positioning approach

A

Products become obsolete - successful now liability in future

stakeholder groups decline in influence

LT tech changes eliminate cost advantage

perpetual change leads to being in environment little experience of

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11
Q

What approach focusses on customer needs and adapts products and processes to gain superior position against rivals

A

positioning

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12
Q

What approach is an inside out approach, develop or acquire adequate resources and competences create market and exploit

A

resource based

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13
Q

Key factors in resource based approach

A

Fit (resources available to fit in product market )

Stretch (be at leading shaping edge)

leverage (use existing resources in different ways)

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14
Q

Short planning horizon

A

1-3 years

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15
Q

Medium planning horizon

A

3-10 years

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16
Q

Long planning horizon

A

more than 10 years

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17
Q

What is the trade off between planning horizons

A

need success in long term, but measured on short term

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18
Q

What influences planning horizon

A

Nature of ownership (SH)

Nature o fINdusty

Nature o business environment

Nature of management (skill for Long term planning)

Capital Structure

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19
Q

When does ethics impact

A

during formulating strategic objectives

ethical climate

internal appraisal

strategy selection

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20
Q

Define mission

A

Values and expectations of those who most strongly influence strategy about the scope and posture of the organisation

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21
Q

Four elements of mission

A

Purpose

Strategy

Policies and standards of behaviour

Values

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22
Q

Mission
What is purpose

A

why does the organisation exist and who form

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23
Q

Mission
what is strategy

A

competitive composition and distinctive competence of the organisation

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24
Q

Mission
what do policies and standards of behaviour do

A

underpin work

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25
Q

Mission
What are values

A

What the company believes in

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26
Q

What approach
mission is start point of strategy
objectives based on mission

A

rational appraoch

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27
Q

What approach
mission embedded in culture and generates strategic initiatives

A

emergent

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28
Q

Define mission statement

A

formal document stating organisations mission, published to promote desired behaviour

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29
Q

Benefits of mission statement

A

Provide basis for control

Communicate nature of organisation to stakeholders

Help install core values

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30
Q

Issues with mission statement

A

Deemed PR exercise rather than portrayal of values

full of generalisations, hard to tie to specific strategy implications or develop objectives

may be ignored by those formulating or implementing strategy

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31
Q

Ohmae three core elements that must be paid attention two

A

Corporate based strategies - superior competence

customer based strategies - match market segment

Competitor based - exploit rival weakness

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32
Q

What four things is strategy concerned with

A

LT direction of organisation

Environment

Resources

Return it makes to stakeholders

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33
Q

Three types of strategy feeding into corporate strategy

A

competitive

financial

investment and resource

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34
Q

Main objectives of budgeting (PRIME)

A

Planning
Responsibility
Integration
motivatoin
Evaluation and control

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35
Q

Approaches to budgeting

A

Incremental

ZBB

Top down

Bottom up

Fixed

Rolling

Feedback

Feedforward

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36
Q

Hierarchy of missions and objectives

A

Mission
Objective
Strategy
Action plans (Budgets)

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37
Q

What are critical success factors

A

small number of key goals vital to success of an organisation

Things that must go right

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38
Q

Five areas where CSFs should be identified

A

Structure

Environmental factors

temporary factors

Functional management issues

Competitive strategy and position

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39
Q

Once the business identified CSFs what must it do

A

set performance standards/KPIs to be achieved in these ares

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40
Q

Hierarchy of objectives

A

Mission
Primary
Secondary

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41
Q

Mission and objectives set at each level

A

should be consistent - goal congruence

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42
Q

SMART

A

Specific
Measurable
Achievable
Relevant
Time bound

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43
Q

Primary objective of profit seeking organisation

A

deliver economic value to owners

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44
Q

Secondary objective of profit seeking organisatoin

A

Satisfying demands of customers, demonostrating CSR as means of delivering economic value

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45
Q

Primary objectives of NFP

A

Vary depending on nature

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46
Q

Secondary objectives of NFP

A

economic goals

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47
Q

Three Es for NFP

A

Economy

Efficiency

Effectiveness

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48
Q

three e’s what is economy

A

achieving the best price for inputs, subject to achieving satisfactory quality

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49
Q

What is efficiency for three es

A

achieving more output per unit of input

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50
Q

Three Es what is effectiveness

A

How well the main objectives of the organsation are achieved

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51
Q

Where can stakeholder power come from

A

internal (status control of resources, knowledge, decision making)

External (control resources, component of process, knowledge and skill, social position, legal rights

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52
Q

Three types of steakholders

A

Internal
External
Connected

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53
Q

What are connected stakeholders

A

source of finacne

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54
Q

What are internal stakeholders

A

source of human resources

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55
Q

Degree of dependency on stakeholder group measured on three critera

A

Disruption

replacement

Uncertainty

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56
Q

What is ESG

A

criteria used to measure and report sustainability

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57
Q

ESG - Governance

A

concerns relationships between management, board and other stakeholders

effectiveness of systems of control to ensure meet objectives and manage risks

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58
Q

five risks of failing to consider ESG

A

less ability to raise finance

reputational issues

fines and legal action

Climate change risks

More disclosure

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59
Q

Four strategic approaches to CSR

A

Proactive

reactive

Defence

Accommodation

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60
Q

Approaches to CSR
what is proactive strategy

A

take full responsibility for actions

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61
Q

Approaches to CSR
what is a reactive strategy

A

situation continued unresolved until public, government or consumer group find out about itWhat

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62
Q

CSR what is defence strategy

A

minimising or attempting to avoid additional obligations from potential problem

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63
Q

CSR what is accommodation stagey

A

Taking responsibility usually due to either
encouragement from special interest groups
perception if don’t government will intervene

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64
Q

CSR is both

A

risk and opportunity

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65
Q

Five reasons to demonstrate CR

A

Self regulation more flexible and less costly than statutory

Improved relations with key stakeholders

donations, sponsorship and community involvement reflect well

Helps create value culture in the organisation and sense of mission good for motivation

LT good for business

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66
Q

What matrix is for stakeholder categorisation and what are the axis

A

Mendelow
Power & Interest

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67
Q

Stakeholder
Low power low interest

A

Minimal effort

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68
Q

Stakeholder
Low power high influence

A

keep infomed

Views can influence more powerful

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69
Q

Stakeholder
low interest high power

A

treat with care and keep satisifed

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70
Q

Stakeholder
High power High infleucne

A

Key players - strategy must be acceptable tothem

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71
Q

PESTEL

A

Political,
Economic
Social
Technological
Environmental
Legal

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72
Q

What is PESTEL used for

A

analysing external factors

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73
Q

What two can be used for analysing external factors

A

Porter’s five forces

PESTEL

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74
Q

When is environmental appraisal done under rational planning approach

A

beginning of process

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75
Q

What is environmental appraisal done under strategic management appraoch

A

continuous awareness of changing issues required

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76
Q

What are the characteristics of an effective enviornmental management system

A

in and external info

Validates and corroborates info

disseminates info to people who need it (clear intranet)

periodic reports with digest of serious infos

management briefing

training and development

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77
Q

Strategic planning takes place in the context of

A

uncertain future environment

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78
Q

What is described:
Few competitors
limited products
slow rate of change
historic
current environment useful predictor of future

A

static environment

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79
Q

What is described
complex,
characterised by rapid change
large resource for environmental assessment

A

dynamic environment

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80
Q

When is scenario planning useful

A

when LT view of strategy is needed due to having a turbulent environment, several factors influence success of strategy

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81
Q

Building scenarios three steps

A

key forces,

historic trends,

build scenarios

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82
Q

When is a sustainable competitive advantage generated?

A

When a company has a unique resource or competence that is difficult to replicate, and sets them apart from competitors.

means they can outperform competitors now and in the future

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83
Q

How does value chain link to SCA

A

Elements of value chain can add value and contribute to sustainable competitive advanatege
extent to which they can be copied will effect

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84
Q

resource based view of profitability

A

corporate profitability based on sustainable competitive advantage, achieved from exploitation of unique resources.

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85
Q

define core competences

A

critical activities and processes

which enable an organisation to achieve CSFs

and therefore achieve a sustainable competitive advantage

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86
Q

What must core competences be

A

better than competitors

difficult to replicate

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87
Q

Two ways of achieving a SCA

A

resources (M(

Competences

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88
Q

Resources can be

A

unique or threshold

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89
Q

Competences can be

A

core or threshold

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90
Q

Resource and competences matrix axis

A

SCA/NO SCA
RESOURCE
COMPETENCES

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91
Q

Threshold resources/Competences

A

no SCA

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92
Q

Unique resources/core competences

A

SCA

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93
Q

Kay’s three sources of capabilities to add value

A

Competitive architecture

Reputation

Innovative ability

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94
Q

Kay
Competitive architecture

A

network of relationships within and around

internal (employees)

Extnerla (Supplliers etc)

Network (collaborating businesses)

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95
Q

Kay
Innovative ability

A

ability to develop new products and services and maintain a competitive advantage.

Structure culture routine, collaboration employees customers suppliers influence ability to be innovative

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96
Q

What are the Nolan principles

LOOISHA

A

Selflessness

Integrity

Objectivity

Accountability

Openness

Honesty

Leadership

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97
Q

Define selflessness

A

holders of public office should take decisions in terms of the public interest.

And not do so to gain financial or other material benefits for themselves, family, or friends

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98
Q

Define integrity (Nolan)

A

holders of public office should not place themselves under any financial or other obligation to outside individuals or organisations that may influence them in the performance of their duty

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99
Q

Define objectivity (Nolan)

A

In carrying out public business (inc public appointments, awarding contracts or recommending individuals for rewards and benefits)

Holders of public office should make choices on merit

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100
Q

Define accountability (Nolan)

A

Holders of public office are accountable for their decisions and actions to the public, and must submit themselves to whatever scrutiny is appropriate to their office

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101
Q

Define Openness (Nolan)

A

holders of public office should be as open as possible about the decisions and actions they take.

They should give reasons for decisions, and restrict information only when wider public interest clearly demands.

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102
Q

Nolan - Honesty

A

Holders of public office have a duty to declare any private interests relating to their public duties and take steps to resolve any conflicts arising in a way that protects public interest

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103
Q

Nolan - Leadership

A

Holders of public office should promote and support these principles by leadership and example

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104
Q

What can be used to understand competitive advantages of nations

A

porter’s diamond

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105
Q

What are the points of porters diamond

A

Factor conditions
demand conditions
related and supporting industries
strategy, structure and rivalry

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106
Q

What can factor conditions be

A

Basic,
Advanced

107
Q

What is a cluster

A

linking of industries through vertical or horizontal relationships

108
Q

What is globalisation characterised by

A

extended supply chains, global HRM

109
Q

Why may a firm act globally (Five Cs)

A

Customer

Company

Competition

Currency Volatility

Country

110
Q

5C’s Customer

A

converging tastes

111
Q

5Cs company

A

economies of scale

112
Q

5s Competition

A

Global competitors encourage others

113
Q

five Cs Currency Volatility

A

If set up overseas, reduces risk

114
Q

Five Cs country

A

may have cheaper access to resource

115
Q

What limits firms acting globally

A

Political risks

Protectionism

Trade Blocks

116
Q

What are pPorters five forces

A

Potential Entrants

Bargaining power of customers

Bargaining power of suppliers

Substitutes,

Rivalry among existing firms

117
Q

Issues with P5F

A

Ignores role of the state

Not good for NFP

Positioning approach rather than resourced base

Assumes SHWM its the onlygoal of management

ignores collaboration to improve profitability

greater focus on risk management

118
Q

What is protectionism

A

positively discouraging international trade

Tarrifs, restrict imports

119
Q

What political risks impact firms acting globally

A

Stability of government

ideology of government

international relationships

informal relationships with government officials and business

120
Q

What are the stages in the lifecycle

A

Introductino

Growth

Shake out

maturity

Decline

121
Q

What phase of lifecycle :
trend setters are the buyer group

either price skim or penetration

Support despite poor results

review investment programme

monitor success of rivals

A

Introduction

122
Q

What phase of lifecycle
expand capacity to meet target share

maintain barriers to entry

ensure aware of potential new products

search additional markets

make refinements

expansion and cost down

A

Growth

123
Q

What phase is described

mergers and rationalisation

extract revenue from existing customers

extend growth market/ tech

A

Shakeout

124
Q

What phase is described
Maximise current return

defend position

leverage customer data for additional income

integrate with rivals

find successor industries ready for launch to pick up market share

A

Maturity

125
Q

Lifecycle what phase
Evaluate exit barriers

identify optimum time to leave

residual demand captured at minimal additional cost

seek exit strategy

monitor rivals

A

decline

126
Q

How can the lifecycle be extended?

A

Operating abroad - different life cycle patterns in different countries

127
Q

What is the international trade lifecycle

A

Product developed in high income country

Overseas productions

Overseas producers compete in export market

Then in domestic market

128
Q

Whatis the resource based approach

A

Resources and competences are used as sources of strategic advantage

129
Q

Who are threshold resources needed by

A

all firms in the market

130
Q

What are threshold competences

A

activities and processes involved in linking resources necessary to stay in business

131
Q

What do unique. resources and core competences give

A

Sustainable competitive advantage

132
Q

What do unique resources enable?

A

firms to meet CSFs

133
Q

Unique resources must be

A

better than competitors and hard to replicate

134
Q

Kay three sources of core competences

A

Competitive architecture

reputation

innivoative ability

135
Q

Define architecture

A

network of relational contracts around the firm

136
Q

Define relational contract

A

contains parties doing business with eachother in LT relationships

Provisions only partially specified

not informed by legal process, but the needs of the parties to keep doing business with each other

137
Q

What is a resource audit

A

Reviewing strategic capability, comprehensive and systematic appraisal of resources offering a SCA

138
Q

When to use the 9ms

A

Resource audit

139
Q

What are the nine ms?

A

Men

Machines

Money

Material

Market

Management

Method

MIS

Makeup

140
Q

What are limiting factors

A

factors which at any time may limit the activity, they are a strategic weakness and in the long term must be reduced, economise on use

141
Q

WHAT IS THE VALUE CHAIN

A

Sequence of business activities by which value is added to products/services produced by the entity

input - value creating activities - output

142
Q

What are primary activities

A

Inbound logistics

operations

outbound logistics

Marketing and sales

Service

143
Q

What are support activities

A

Infrastructure

Human resource management

Tech development

Procurement

144
Q

What is the value system

A

activities that add value beyond the organisations boundaries

145
Q

What can the value chain be used for

A

identifying strategically significant activities,

comparing them to competitors to identify sources of differentiation

identify opportunities for synergy and acquisition

help identify competitive forces

manage wider linkages harder to replicate

146
Q

Considerations for outsourcing

A

Firms competence

better risk management

assured and controlled by client

organisational IP being transferred

track record of provider and experience,

quality of relationship

provider financial stability

147
Q

Define shared service centre

A

number of internal transaction processing activities that were previously conducted in a. number of different departments

are bought together into one with within an organisation

148
Q

Advantages of shared service centre

A

Cost saving

knowledge between those in SSC may be more easily shared

Use of standard process

149
Q

Disadvantages of shared service centre

A

Department specific knowledge may be lost

Removed from day to day realities diminishing value

physical distance may weaken relationships

150
Q

Benefits of outsourcing

A

Don’t need to hire more employees

access to larger talent pool

lower labour cost

151
Q

Issues with outsourcing

A

Lack of control

communication issues

quality issues

impact on culture? (employees replaced, confusion why doing it, challenges to workflow)

152
Q

Axis on harmon’s matrix

A

Process complexity

Strategic importance

Used for analysis of processes

153
Q

Key things in supply chain management

A

responsiveness

reliability

and relationships

154
Q

SCM definition

A

management of all supply activities from the suppliers to a business through to delivery to customers

155
Q

SCM - responsiveness

A

ability to supply customer s quickly (JIT)

156
Q

SCM - reliability

A

ability to supply customers reliability

157
Q

SCM - relationship

A

Use of single sourcing and LT contracts better to integrate the buyer and supplier

158
Q

Tech development in SCM led to

A

reduction in cost

better outsourcing opportunities

increased product and service innovation

Mass customisation of products

159
Q

Why is cyber security important

A

to protect systems more challenging as they are more linked

160
Q

what can SCM involve

A

closer partnership supplier relationships,

reduction in customers serviced price and stock coordination,

linked computer systems,

early supplier intervention in R&D

Logistics

161
Q

Define cloud computing

A

Enables ubiquitous, convenient on demand network access to shared pool of configurable computing resources that can be rapidly provisioned and released with minimal management effort or service provider interactions

162
Q

Benefit on Cloud computing

A

reduce fixed cost of storage by removing hardware requirement, cost matches size

163
Q

What is social sustainability

A

providing a safe work environment, health and safety measures, diversity and community interest

164
Q

What is environmental sustainability

A

impact of a business on climate change, pollution and natural resources

165
Q

Economic sustainability what is it

A

looks at economic stability a company brings, job creation and investment in innovation and new products

166
Q

Advantages of licensing

A

Quicker than growing self little investment

could offer licenses elsewhere if successful

Fee and revenue share - likely fixed and no risk in sharing losses

Gives presence o/s quickly, good if growing market

May stop other brand launching as competitor

167
Q

Disadvantages of licensing

A

if other company bigger could be power imbalance

price compared to revenue share - price high o/s

Share IP and then they set up as rival overseas

The reputation of the other firm

168
Q

price should be set with regards to the 3Cs - what are they

A

Cost

Customer

Competitor

169
Q

What are four main elements of promotion

A

Advertising

Sales promotion

PR

Personal selling

170
Q

What can benchmarking be used for

A

setting KPIs (internal,s are sector, activity or generic)

171
Q

When to use BCG matrix

A

assessing balance of product portfolio

172
Q

BCG when is market growth high

A

10%

173
Q

BCG when large market share

A

largest competitor ratio >1

174
Q

What should be done with star products

A

reinvest heavily to hold and build position

moderate cash flow

175
Q

what kind of Cash flow rom cash cow

A

large positive

176
Q

What to do with question mark

A

get big or get out (invest heavily to gain market share

177
Q

)best strategy for dogs

A

divest

178
Q

Limitations of BCG matrix

A

other factors affect cash flows and are ignored,

risk ignored,

focus on known market and products

hard to forecast growth

179
Q

TEF model for ethics

A

Transparency,

Effect
Fairness

Legal (seek legal advice)

180
Q

Performance evaluation process

A

Strategy review

quant and qual performance milestones

set targets

formal monitoring of process

reward

181
Q

different types of performance management

A

Financial,

resource,

competitive advantage

182
Q

Performance management
resource

A

effectiveness, economy, efficiency

183
Q

performance management
competitive advantage

A

CSF and measure achievement with KPIs

184
Q

Interest cover

A

EBIT/INTERSET

185
Q

Mark up

A

gross profit/COS

186
Q

Stock turnover

A

COS/average stock held

187
Q

Debtor days

A

debtors/rev * 365

188
Q

Creditor days

A

Creditor/COS * 365

189
Q

What should strategic performance measures do

A

focus attention on what matters in the long term,

identify and communicate drivers of success,

support organisational learning

190
Q

Strategic performance measures monitoring

A

consistently measured

revaluate regularly

should be acceptable, measurable, meaningful defined by strategy and relevant to it

191
Q

What are CSFs

A

Small number of key goals vital to the success of the organisation

192
Q

Advantages of CSFs

A

process of identifying help identify what needs controlling

turn into KPIs for periodic reporting

guide development for IT systems

use for benchmarking

193
Q

Issues with CSF

A

If wrong ones identified, can be detrimental to business

should not be over emphasised

aligned with other organisations?

194
Q

Different types of responsibility centres for divisional performance measurement

A

revenue centres

cost centres

profit centres

investment centres

195
Q

ROCE

A

Profit/average capital

196
Q

Benefits of ROCE

A

popular as can lead to desired group ROCE

facilitates comparison of different size divisions,

readily understood by management

cheap and easy to calculate

197
Q

Issues with ROCE

A

Can be dysfunctional as +NPV projects may have a lower than departmental ROCE and be rejected by departments

198
Q

RI calc

A

Division profit - (net assets * required rate)

199
Q

Benefit of RI

A

avoids dysfunction of ROCE

technically superior as gives absolute amount

goal congruence as based on required rate

200
Q

Issues with both ROCE and RI

A

encourage short termsim

discourse investment in assets

lack strategic control

201
Q

Why is transfer pricing imprtant

A

determine divisional profit

impacts performance evluation

determines tax and currency of profits

impact price and final sales

can lead to dysfunctional decisions

202
Q

Cost based TP examples

A

Full cost,
marginal cost
opportunity cost

203
Q

Cost based TP what is optimal

A

sell high mC and opportunity cost

204
Q

Transfer pricing, what are negotiated prices

A

Transfer price established by discussions between divisional managers in a bargaining process

205
Q

TP what is two part transfer pricing

A

Price set at vc to ensure optimal,
but supplying division record extra amount to arrive at profit for evaluation processes

206
Q

TP what is dual pricing

A

recover - Standard variable cost

Transferring - higher value which may give profit incentive

207
Q

Benefits of dual pricing TP

A

should lead to goal congrudnece

208
Q

issues with dual transfer pricing

A

may lead to poor cost control as profits made more easily.

more complex to account for

209
Q

Considerations for TP

A

impact on group profitability

impact on product positioning (price impacted)

cost of the system (determine and recording intracompany is non-value adding)

affect evaluation of managers for bonuses, motivational impacts

210
Q

BSC measures

A

Cusotmer

internal business process

innovation and learning

financial

211
Q

Benefits of BSC

A

should be used flexibility

dicing what to measure clarifies strategy

can influence behaviour and drive change

emphases on process, not departmnets

212
Q

Issues with BSC

A

Measures performance, doesn’t indicate strategy is right

some measures may conflict

difficult to determine what balance achieves best results

number of measures must be agreed

managers need expertise to initiate appropriate action

213
Q

How to measure performance for NFP

A

3Es

214
Q

What gives rise to the ‘gap’ between where we want to be and expected perfomrance

A

ambitious objectives set/imposed by investors

underperformance

difficult environment

215
Q

Ways of filling the ga’

A

new product/market growth strategies

216
Q

how to improve profitability

A

efficiency

expansion strategy

diversification

217
Q

Three distinct group of strategic options, what are they

A

competitive strategy (win customers and secure profitability against rivals)

product / market strategy (what product and what markets, where to compete)

development strategy - how to gain access to chosen products and markets

218
Q

What is defined
taking offensive, or defensive actions to create a dependable position in an industry, cope successfully with competition and yield superior ROI

A

competitive strategy

219
Q

What kind of strategy withstands shrinking margins
rivals fall and may be left as a major player with enhanced power against suppliers and buyers

A

cost leader

220
Q

what strategy presents as superior,

may avoid price pressure through avoiding price competition

A

differentiator

221
Q

Types of strategy

A

Cost leader
differentiator
cost focus
differentiation focus

222
Q

Issues with being a cost leader

A

internal focus

only one may be cost leader

difficult during recession

223
Q

Issues with differentiation strategy

A

assumes differentiation always leads to higher price

value can be eroded by superior competitor activity quickly

224
Q

Benefits of niche strategy

A

more secure,

insulated from competition

not spread too thin

little competition

225
Q

Issues with a Niche strategy

A

Sacrifice economies of scale

competitors can move in

segment needs may become less distinct

226
Q

motives for acquiring companies

A

marketing and production advantages

finance and management

risk spreading (diversification)

retain independence

overcome barrier to entry

outplay rivals

227
Q

SAF - suitability

A

strategic logic and strategic fit of the strategy

228
Q

SAF - acceptability

A

relates to expectation and expected perfora=mance outcomes (risk and return)

229
Q

1SD of mean

A

68.2

230
Q

2sd of mean

A

95.4

231
Q

3 sd of mean

A

99.7%

232
Q

marketing mix
Product

A

Quality and reliability

packaging

branding

aesthetics

product mix

servicing/associated services

233
Q

Marketing
Price - CPs

A

Cost

customers

competition

corporate strategy

234
Q

Marketing mix
place

A

size

number
accessibility

inventory

layout

235
Q

Marketing - promotion
sapp

A

sales promotion

advertising

PR

Personal selling

236
Q

4Ps of marketing mix

A

produce

place

price

promotion

237
Q

approaches to structure

A

top down

bottom up

contingency (no best)

238
Q

What is an entrepreneurl structure

A

small single owner manager business

239
Q

+/- entrepreneurial structure

A

flexible, quick to change

limited for expansion

based on knowledge of owner

240
Q

What is a functional structure

A

departments are defined by their functions

241
Q

+/- functional structure

A

specialisation

economies of scale

may hamper innovation and be rigid

242
Q

Divisional structure

A

Divided into autonomous units

243
Q

+ divisions

A

greater flexibility

local knowledge

less costly
focus attention on results (responsibility)

evaluation and comparison of division

244
Q

Issues with divisionalsiation

A

duplicate efort

struggle to cope with large clients that span divisions

increase overhead

add management compleixty

lack of communication and sharing best practice

245
Q

Underlying principles of Corporate Governance

A

Leadership

Effectiveness

Accountability

remuneration

relationships with shareholders

246
Q

Decentralisation depends on

A

management style

size

activity diversification

effective communicatino

ability of management

speed technology advances

geography

local knowledge needed

247
Q

Define operating core

A

perform work related to production of goods and services

248
Q

define strategic apex

A

ensure organisation serves its mission, responsible to owners

249
Q

Define middleline

A

join strategic apex to operating core by middle managers

250
Q

define technostructure

A

analyst who aim to effect certain forms of centralisation

251
Q

define support staff

A

provide support outside normal work flow, not standadiatoin

252
Q

simple structure - where is power

A

strategic apex has direct control over operating core and other functions

253
Q

machine bureaucracy where is power

A

technostructure

emphasis on regulation bureaucratic processes govern

254
Q

Where is power in professional bureaucracy

A

operating core

255
Q

Power in divisionalised organisation

A

middle line - managers take charge of division

256
Q

What is an adhocracy

A

complex and disorderly procedrures and process not foramlalised
core activity carried out by project teams

257
Q

Advantages of matrix

A

flexible

improved communication

dual authority gives multiple orientations

structure allocate responsibility for end results

encourage cooperation

cross fertilise skills and expertise

258
Q

Matrix disadvantages

A

dual authority lead to conflict and stress at work

can be more costly

can be difficult to accept

259
Q

Joint venture advantages

A

each requires less investment, cover more countries

reduce risk of government intervention

local knowledge

funds for tech and research

260
Q

Issues with joint venture

A

Conflicts of interest over profit shares, amounts invested, management

problems protecting IP

Danger partner may leave

Lack of management interest

261
Q

Franchising advantages for franchiser

A

rapid expansion with little capital

local knowledge and supervision

franchiser has limited capital and therefore low financial risks

262
Q

Disadvantages of franchising

A

franchisee independent and makes decision, quality etc could be impacted

Clash between local needs and strategy

update/amend product, franchisee may be low to accept

break away

263
Q

External development either home or away

A

JV

Merger

Acquisition

Alliance

Franchise

BST (10 decks)

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