Models Flashcards
PESTLE
Political, Economic, Social, Technology, Legal, Ecological
Porter’s Diamond
National competitive advantages
FDRS
Strategy, structure and rivalry
Supply conditions (supply side - factor conditions)
Demand conditions
Related and supporting industries
Mission statement covers?
Purpose
Strategy
Policies
Values
Objectives of should be:
Specific
Measurable
Achievable
Relevant
Time bound
Stakeholder analysis for not-for-profit organisations:
Primary objective: maximise benefit to target stakeholder
Benefits, maybe intangible and difficult to measure
Diverse range of stakeholders
Multiple objectives
Mendelow’s Matrix
Interest high, Power high: need participation
Interest high, Power low: keep informed
Interest low, Power high: keep satisfied
Interest low, Power low: minimal effort
Porter’s 5 Forces
Threats within a industry:
Threat of new entrants
- high growth and profit margins?
- few competitors?
- high barriers to entry?
Power of suppliers
- can supplier increase prices?
- supplier have bargaining power?
Competitive rivalry
- intense competition?
Power of customers
- small number of large customers?
- low product differentiation
Threat of substitute
- price elasticity of demand?
- different industries/sub industries
Industry Life Cycle Model
Introduction - slow growth
Growth - rapid growth and popularity
Shakeout - growth falls
Maturity - long period of slow growth
Decline - sales volume fall
9Ms
Men
Money
Management
Make up
Machinery
Methods
Markets
Materials
Management information
Competencies (Kay’s sources)
How do you meet critical success factors?
CIR
Competitive architecture
- internal i.e. employees
- external i.e. suppliers
- network i.e. collaborating firms
Reputation
Innovative ability
BCG Matrix
Star - market share high, market growth high
Cash cow - market share high, market growth low
Problem child/Question mark - market share low, market growth high
Dog - market share low, market growth low
Porter’s generic strategies
Gain a competitive advantage:
Cost leadership
- economies of scale
- cheaper suppliers
- reduce labour
Differentiation (premium)
- branding
- innovation
- quality
Focus/niche
- identify customer
- choose approach
Porter’s value chain
how business gains competitive advantage by breaking it down
Primary (LOLSS) :
Inbound logistics
Operations
Outbound logistics
Sales and marketing
Service
Secondary (PITH):
Procurement
Technology development
Human resource management
Infrastructure
Harmon’s Process Strategy Matrix
Strategic importance high, complexity high: IMPROVE
Strategic importance high, complexity low: AUTOMATE
Strategic importance low, complexity high: OUTSOURCE
Strategic importance low, complexity low: AUTOMATE/OUTSOURCE
Product Life Cycle Model
Development
Introduction
Growth
Maturity
Decline
SWOT analysis
Used for corporate appraisal:
Strengths - internal
Weaknesses - internal
Opportunities - external
Threats - external
Gap analysis
Why is there a gap?
How to fix gap?
Ansoff’s Matrix
Market penetration: existing markets, existing products
- price cuts
- marketing
- innovation
- more sales of existing items
Product development: existing markets, new products
- R&D
Market development: new market, existing product
- new market for product
- foreign market
- consumer vs. industrial
Diversification: new market, new product
- vertical integration
4 Goods P’s and 7 Service P’s
Controllable marketing variables to be adapted:
Product (unique selling point)
Promotion (advertising)
Place (distribution - direct vs indirect)
Price (pricing strategy)
People - Service (staff training/knowledge)
Processes - Service (efficiency)
Physical evidence - Service (tangible aspects of service)
4 C’s of pricing
Costs: must be covered in long term
Customers: price sensitivity
Competition: monitor competitors actions
Corporate Objectives:
- price skimming
- penetration
- price discrimination
- going rate
- cost plus pricing
Branding concept model
Premium: high price, high quality
Cowboy: high price, low quality
Bargain: low price, high quality
Economy: low price, low quality
Handy’s Shamrock (flexible firm)
Flexible firm:
Professional core
Contractual fringe (outsourced)
Flexible labour force (temporary)
Customers
Price elasticity of demand
% change in Q / % change in P
> 1 elastic
<1 inelastic
Mintzberg’s building blocks
Ideology - values and beliefs
Strategic apex - higher management and planning
Middle line - management linking strategic and operating core
Operating core - basic work
Technostructure - technical expertise/specialists
Support staff - support operations (canteen, legal, tax)
TARA Model
Transfer
Avoid
Reduce
Accept
Balanced scorecard
Performance indicators should consider:
Financial perspective
vs
Innovation and learning
Customer perspective
vs
Internal business perspective
Lewin’s force field analysis
For changes to occur:
Driving forces must be stronger than barrier to change
Barriers to change
Cultural barriers:
- Structural inertia: imbedded systems
- Group inertia: social behaviour and norms
- Power structures: balance of power changes
Personnel barriers:
- Habit
- Job security
- Effect on earnings
- Fear of the unknown
- Selective information processing
- Psychological contract
Lewin’s iceberg model
Change steps:
Unfreeze - communication, education, participation, negotiation
Move - train, installation of equipment, new contracts
Refreeze - reinforce change, promote benefits, reward conformity
Ethical issues
LESTIF
Transparency
Effect
Fairness
Legality
Integrity or Honesty
Self interest or Objectivity
Organisations structures
Entrepreneurial
Functional
Divisional
Matrix
Actions for directors
- establish facts
- seek legal advice/counsel
- update stakeholders (stock market or otherwise)
- disciplinary proceedings
- change reporting lines
- reconsider remuneration
- perform or commission due diligence
Independence in appearance and by fact
By fact - independent in actions but maybe not in perception
By appearance - independent in actions and in perception
Barriers to entry
Economies of scales
Brand loyalty
Capital requirements
Patents
Govt subsidies
Access to distribution
ROI formula
controllable profit / capital employed
RI formula
Controllable profit
- divisional capital employed * % cost of capital
Cyber security risks
Denial of service
Virus
Hacking
Sabotage (employees)
Accidents
Human Resource Management
RRRAT
Recruitment
Retention
Appraisal
Training
Rewards
Transfer pricing methods
Market value
Cost
Cost +
Cost -
Default strategic analysis
Cost
Quality
Risk
4 V’s of Big Data
Volume
Veracity
Velocity
Variety
