Models Flashcards
the Tannenbaum Schmidt continuum
Highlights the range of different management styles ranging from a more autocratic leadership to a more democratic leadership.
Use of authority by the manager to an area of freedom for subordinates
From telling to delegating
Links to Management and leadership styles
the Blake Mouton grid
Concern for people on the Y-axis
Concern for the task on the X-axis
Impoverished management - Laissez-faire style; minimal effort on management, hoping to avoid blame for errors
Low concern for people, Low concern for the task
Country club management - focus on creating a safe environment with not much conflict.
High concern for people, low concern for task
Task management - Tasks are the priority; autocratic leadership
Low concern for people, high concern for task
Team management - Staff involved in decision making ; democratic leadership
High concern for people, High concern for task
Stakeholder Mapping
Low Power, Low interest - Minimal effort
The stakeholders that aren’t important in the business.
High power, High interest - Key players
Most important stakeholders in the business
Low power, High interest - Keep Informed
High power, Low interest - Keep satisfied
Market mapping
Where the products fit in the market based on two dimensions that are important to customers.
Low quality, Low price
Low quality, High price
High quality, Low price
High quality, High price
Spots gaps in the market
Marketing mix - 7P’s
These can be used to help set marketing objectives:
People
Price
Physical environment
Place
Promotion
Process
Product
Boston Matrix
Used to review products to see if they are making products or not
Low Market share, Low Market growth - DOG
Managers may need to revive these dogs or stop producing them.
Low Market share, High Market growth - QUESTION MARK
Managers may invest in these products to help promote and distribute them as they arent well established.
High Market share, High Market growth - STAR
They may need some investment to support them and maintain market share
High Market share, Low Market growth - CASH COW
Well established products, where managers use profits to improve other products
Product Lifecycle
Development: this is what happens as the product idea is turned into a reality. This is a time when there are likely to be relatively high outflows with no money coming in yet.
Launch: this is when the product is put on to the market. It may take time to get distributors and for the product and brand to develop.
Growth: this is when sales are growing fast as the product becomes better known and distribution increases.
Maturity: sale growth now slows and the business will start to look ahead and decide what action to take.
Decline: This is where sales fall.
Hackman and Oldham
Job design to get employee satisfaction
Job feedback
Autonomy
Skill Variety
Task significance
Task identity
These ideas can lead to better performance and low turnover.
Motivation theories - Taylor
Workers are motivated by money.
Pay is based on the output per employee (called piece rate).
Motivation theories - Mayo
Workers motivated by having social needs met
Workers should work in teams
Managers should have greater involvement in employee’s working life
Motivation theories - Herzberg
Two-factor theory based on Motivators and hygiene
Motivation factors, such as a sense of achievement and responsibility, aim to inspire and engage employees.
Hygiene factors, such as salary and working conditions, are necessary for employees to maintain satisfaction in the workplace.
The presence or absence of these factors can significantly impact employee motivation and engagement
SWOT analysis
SWOT analysis is a method for analysing a business, its resources, and its environment compared with competitors.
Internal strengths
Internal weaknesses
Opportunities in the external environment
Threats in the external environment
Core competencies
Core competencies are what a business does strategically well
Skills
Things they do different
How businesses learn
How a business reacts to problems
Kaplan and Nortons balanced scorecard
The balanced scorecard provides a relevant range of financial and non-financial information that supports effective business management.
Finance
Customers
Internal processes
Organisational capacity
Elkingtons Triple bottom line
The model highlights that business performance may be measured in a number of ways: in relation to its finances, its environmental impact, and how socially responsible it is in relation to employees.
People,Planet, Profit
Carroll’s CSR Pyramid
Carroll produced a pyramid that identifies the different types of obligations that society expects of businesses
Economic responsibilities
These include providing rewards to the owners, paying employees fairly, and selling products at a fair price to consumers. A business has an economic responsibility to survive.
Legal responsibilities
This means that businesses should follow the law and not act illegally.
Ethical responsibilities
A business will have responsibilities over and above its legal requirements. Managers may decide to do the ‘right thing’.
Philanthropic responsibilities
This focuses on businesses actively trying to help society, for example, by improving the quality of each employee’s working life.
Porter’s Five Forces
A model that analyses the attractiveness of an industry
The threat of New Entrants
Who can raise the level of competition, thereby reducing its attractiveness
The threat of new entrants largely depends on the barriers to entry. High entry barriers exist in some industries (e.g. shipbuilding) whereas other industries are very easy to enter (e.g. estate agencies, restaurants).
Threat of Substitutes - the presence of substitute products can lower industry attractiveness and profitability
The bargaining Power of Suppliers will be high when there are many buyers and few dominant suppliers
Bargaining Power of Buyers - people/organisations who create demand in industry, the power of buyers is greater when there are few dominant buyers and many sellers in the industry - Products are standardised
Intensity of Rivalry- will depend on the structure of competition, the structure of industry costs, the degree of differentiation, high switching costs, and strategic objectives including aggressive growth strategies, and exit barriers - when
barriers to leaving an industry are high (e.g. the cost of closing down factories) - then competitors tend to exhibit greater rivalry.
Ansoff’s Matrix
How to achieve further growth
Market penetration involves selling more of the same products to the same type of people / present markets
Market development concerns increasing sales of present products by selling to new markets
Product development involves modifications of an existing product
Diversification involves selling new products to new markets
Bowman’s Strategy Clock
This model shows different strategies of added value and price, some should show competitive advantages.
- Low price, low added value
- Low price
- Hybrid
- Differentiation
- Focused differentiation
- Increased price, standard product
- High price, low value (Used when there are no substitutes)
- Low-value, standard price (price matching competitors)
Porters Generic strategies
Cost leadership - When a business aims to become a low-cost producer by becoming more efficient.
Differentiation - This is when a business seems more unique to be better than competitors so they can charge a higher price.
Focus - This is when the business focuses on one segment within the market
Experience curve
Greiners Model of growth
Creativity - The business is small
Direction - Crisis of Leadership
Delegation - Crisis of Autonomy
Coordination - Crisis of Control
Collaboration - Crisis of Red Tape
Bartlett and Ghoshal’s model of international strategy
Multidomestic: Low Integration and High Responsiveness (tailored)
A great example of a multi domestic company is Nestlé. Nestlé uses a unique marketing and sales approach for each of the markets in which it operates. Furthermore, it adapts its products to local tastes by offering different products in different markets.
Global: High Integration and Low Responsiveness
They offer a standardized product worldwide and have the goal to maximize efficiencies in order to reduce costs as much as possible.
Transnational: High Integration and High Responsiveness
Each sector in each country has specific strategic roles to meet local needs.
International: Low Integration and Low Responsiveness
Products are produced in the company’s home country and sent to customers all over the world.
Lewins force field analysis
This indicates how different forces affect change
Driving forces (positive forces for change)
Restraining force (obstacles to change)
Kotter and Schlesinger : Resistance to change
Why do people resist change?
- Self-interest
They would be worse off if the change occurred (eg lose their job). - Fear and misunderstanding
They do not trust the managers’ motives. - Different assessments
They understand the reasons for change, but disagree with the changes;
they may think they have a better plan. - Prefer things as they are
They do not like change.
Kotter and Schlesinger : Overcoming resistance to change
- Education and communication
Talk to them about it - Participation and involvement
People may have a sense of ownership and so
maybe more willing to get involved and make it work. - Facilitation and support
Support people so they have the skills and
resources they need to cope with it, this can help it to be accepted. - Negotiation and agreement
If people are resistant to change it may be possible to negotiate with them or bargain to win their agreement. - Manipulation and co-option
This may involve offering rewards to win over key influential people who will then get others to agree to change. - Explicit and implicit coercion
Handy’s Four Classifications of organisational culture
Power culture
A centralised culture that focuses on key decision-makers.
Role culture
More formalised culture with jobs having clear rules and procedures. Individuals know their position within the hierarchy.
Task culture
This is a culture where there is a focus on specific tasks and projects.
People or personal culture
Individuals have considerable freedom to act independently.
Hofstede’s 6 dimensions of international culture
Individual and collectivism (IDV) - This considers the extent to which individuals believe they should look
after themselves rather than be team players.
Power distance index (PDI) - This refers to the extent to which a society accepts that power is
distributed unequally.
Uncertainty avoidance index (UAI) - This is the extent to which they like rules and a well-defined career structure.
Masculinity (MAS) - This refers to the dominant values in the organisation.
Long-term orientation (LTO) - This refers to how long-term employees are in their thinking, which will affect their planning and attitude to investment.
