Models Flashcards
PESTEL model?
Political Economic Social Technological Ecological Legal
What is the use of PESTEL?
to assess the attractiveness of a macro environment
What are the porters five forces?
- Competitive rivalry
- Threat of customers
- Threat of suppliers
- Threat of substitution
- Threat of entrants
What is the use of Porters 5 forces?
to assess the attractiveness of the industry
What are the axis of Mendelow?
- Level of interest
2. Level of power
What is the purpose of Menelow?
To assess the power and interest of stakeholders and provide practical advice to manage them
What are the stages of the industry/product life cycle?
- Introduction
- Growth
- Shakeout
- Maturity
- Decline
Barriers to entry?
Economies of scale Brand loyalty Capex Access to distribution Patents Government subsidies
Threats of substitutes?
From different industries From sub industries Price of substitutes low Performance of the substitute comparable Customers can switch easily
Customer power?
Small no of large customers Large no of competitors Low product differentiation Low switching costs Customer's profitability low High price transparency
Supplier power?
Large suppliers
Are supplier’s products differentiated
High switching costs
Suppliers have other suppliers they can go to
What are critical success factors?
A few things that must go right.
What resources and competencies will lead us to achieve them?
What are the primary activities of the value chain?
- Inbound logistics
- Outbound logistics
- Operations
- Marketing and sales
- Services
What are the secondary activities in the value chain?
- Firm infrastructure
- HRM
- Tech development / R&D
- Procurement
Low market growth
Low market share
Dog
Low market share
High market growth
Problem child
High market share
High market growth
Star
High market share
Low market growth
Cash cow
How to calculate relative market share?
Your sales / LARGEST competitor market share
What is a corporate appraisal?
SWOT
What are the axis of Ansoff’s matrix
Products
Markets
What is market penetration?
Boosting sales to people you already sell to
E.g. using the 4/7ps
Greater EOS
What is market development?
Selling the same product to a different segment
E.g. new geography, new distribution channel
What is product development?
Selling a new product to the same people
E.g. doing R&D
Will have good knowledge of customers
Product failure could be damaging to business
What is diversification?
Selling a new product to different people
Related diversification (Horizontal/vertical)
Unrelated diversification
Marketing process
- Market research
- Market segmentation
- Marketing mix
What is desk research?
Gathering and analysis of existing information
E.g. company records, economic data, trade journals
What is field research?
Collection of new primary research
E.g. questionnaires, internet surveys, interviews, observations, test marketing,
What are the 7ps?
- Product
- Price
- Promotion
- Place
- Process
- People
- Physical evidence
Different types of promotion
- Adverts
- Sales promotion
- PR
- Personal selling
Places to sell?
- Own retail operations
- Internet
- Mail order
- Personal selling
- Via distributors
- Wholesalers
- Retailers
- Agents
What are the 4 C’s of price?
- Costs - are they covered?
- Customers - How much will customers pay
- Competition - What are they pricing at?
- Corporate objectives? - Cost leadership, price elasticity?
What is an entrepreneurial structure?
Manager and subordinates
What is a functional structure?
Board of directors and departments
e.g. Finance, HR, project management
Advantages of entrepreneurial
- Flexible
- Responsive to market
- Good control
- People talk to one another
Disadvantages of entrepreneurial
- Lack of career structure
- Too centralised
- Can’t cope with growth
Advantages of functional
- EOS
- Standardisation
- Specialists comfortable
Disadvantages of functional
- Slow to adapt to market changes
- Conflicts against departments
- Can’t cope with diversification
Advantages of divisions
- Enables growth
- Clear responsibility
- Training of general managers
Disadvantages of divisions
- Could mean loss of control
- Lack of goal congruence
- Duplication of work
- Specialists isolated
Advantages of matrix
- Brings together positives of divisions and functions
- Improve cross function communication
- Useful for temporary teams
- Flexibility
Disadvantages of matrix
- Too many managers
2. Could make people feel demoted
Components of Mintzberg
- Strategic apex
- Middle line
- Operating core
- Technostructure (support the operating core)
- Support staff (could be outsourced easily)
What is decentralisation?
The degree of autonomy of the organisation
What is mechanistic?
A structure that is rigid, suitable for stable environments
What is organic?
A structure that is fluid in decision making, suitable for dynamic environmentq
Handy’s shamrock elements
- Professional core = permanent staff
- Flexible labour = part timers
- Contractual fringe = outsourced staff
- Customers > they may perform some tasks themselves
What is the TARA framwork?
Assessing response to risk
- Transfer
- Accept
- Reduce
- Avoid
Considerations of outsourcing?
- Competence required to perform internally too strenuous
- Better risk management - service level agreements
- Level of info needed to be given to outsourcer
- Cost > cheaper or more expensive, tendering?
What are the elements of HRM?
- Demand of human resources
2. Supply of human resources
What are the four V’s
- Velocity
- Volume
- Variety
- Veracity
Balanced scorecard elements?
- Financial
- Customer
- R&D/innovation and learning
- Internal business/process
Cyber security threats?
- Humans
- Fraud
- Viruses
Cyber security solutions
- Business continuity planning, server on different sites
- Systems access control
- Updating patches of software
- Physical security (lock servers etc)
- Antivirus
- Firewalls
- Multi factor authentication
- Not allowing remote access
- Varying levels of accessibility to different staff
