Models Flashcards
PESTEL
PESTEL
๏ Political
๏ Economic
๏ Social
๏ Technological
๏ Environmental/ecological
๏ Legal
McKinsey 7S Model
(Business Integration)
Hard Factors (influenced by mgmt):
* Strategy
* Structure
* Systems
Soft Factors:
* Shared Values
* Staff
* Skills
* Style:
Porter’s 5 Forces
Bargaining power of buyers
Bargaining powers of suppliers
Threat of New Entrants
Competition in Industry
Threat of Substitution
BCG
Porters Value Chain
(Business Integration)
Analyses specific activities and their link to value creation.
Porter says the primary activities must be aligned with each other.
Identify critical activities and ensure they’re being managed through KPI’s.
Performance Pyrid
Building Block Model
Balanced Scorecard
Mendelow’s Matrix
VFM
Six Sigma (DMAIC)
- Define, Measure, Analyse, Improve and Control
- 6 deviations from mean is tolerated under Six Sigma. Most should be close to mean.
- Outside of 6 deviations is defective.
Lean Principles (5S)
Triple Bottom Line
Porters Value Chain KPI’s
Inbound Logistics
- Lead time
- % Of defective material.
Outbound Logistics
- Lead time
- % Of defective material.
Operations
- Cost variances
Marketing and Sales
- No. of succesful campaigns.
- No. of new customers per campaign.
Services
-Time taken per ticket/problem
-No. of support staff
-Problems resolved per staff.
Advantages of Porters Value Chain
- Flexible to industries
- diagnoses and creates competitive advantages.
- Interrogates capacity to meet customer obligations (value proposition)
- Perf management tool through kpi’s.
DMAIC
1.Define the problem i.e Customer requirements, minimum, beyond basic and exceeding. Establish Project goals & team.
2.Measure i.e. collection of data on problem,severity, site: inputs, process elements, outputs.
3.Analyze I.e. divide process into value adding , support activites or non-value adding activities.
4.Improve i.e.
5.ControlI.e ensure early deviations are brought back in line.
Advantages of Six Sigma
- Helps to achieve customer satisfaction and minimizes defects.
- Rise of profitability and reduction in costs.
Disadvantages of Six Sigma
- Clashes with TQM as it still accepts some failures
- Must be sustained
- Contradicts innovation by limiting deviations.
- Results of 6 sigma is time spent on non-valuable activities.
What is the planning gap?
Distance between desired performance and expected performance. Measured in demands per unit.
Can be reduced through: market penetration, market development, product development and diversification.
Market Penetration
Used on existing products and existing markets.
Advertising, driving out competition or getting customers to buy more products
Market Development
existing products and a new market.
This might include new distribution channels or price discrimination.
Product Development
new products and an existing market
This will probably involve looking at the profits of a new product versus an existing
Diversification
new products to a new market
Advantages of Lifecycle Costs
- Pricing decisions more accurate
- Long term thinking - forward loooking
- Helps in making good decisions during planning phase to ensure revenue>cost or scrap.
- Better with products that have short life cycle
