Models and theorys Flashcards
What is the marketing mix?
7ps
Product
Promotion
Place - available in right place
Price
People
Process
Physical Evidence - helping customers see what they are buying
What is the Tannenbaum-Schmidt leadership continuum used for?
It looks at the relationship between the level of authority adopted by a leader and the resulting level of freedom given to the workers.
What are the 7 levels of the Tannenbaum-Schmidt continuum?
Tells - Manager makes decision an tells team
Sells - Manager makes decision and sells it to the team
Suggests - Manager makes suggestions and invites questions from team
Consults - Manager makes decision but conuslts team before finalising.
Joins - Manager presents problem, gets team ideas, then makes decision
Delegates - Manager defines limits, then asks team for decision
Abdicates - Managers allows full freedom for team to make decision
What would make a manager adopt a lower level of leadership style from the Tannenbaum-Schmidt continuum?
A less skilled and experienced team. As their skills grow, move up the continuum.
What is the Blake Moulton grid?
A model that divides manager styles into 4 different categories depening on their level of concern for production and their level of concern for people (workers).
Along the Y-axis is concern for people, along the X-axis is concern for production. Each goes from low to high, low starting at 0,0.
What are the 5 different categories of the Blake Moulton grid?
Explain a benefit and negative of each where possible.
Country club management = high concern for people, low for production.
Impoverished management = low concern for people and production
Team management = high concern for people and production
Produce-or-perish management = low concern for people, high concern for production
Middle of the road = Medium concern for both people and production
What model can we use to evaluate the importance of each stakeholder group?
Mendelows Stakeholder Mapping
Describe/draw what Mendelows Stakeholder Map looks like
see flashcard
Level of interest = LI Power = P
Low LI, Low P > Minimal effort
Low LI, High P > Keep Satisfied
High LI, Low P > Keep Informed
High LI, Low P > Key Players
What is the boston matrix?
A tool that analyses the product portfolio of a business and classifies them into 4 different categories, comparing the market share of the product and the growth of the market.
High market share, HIgh market growth = Star
High market share, Low market growth = Cash cow
Low market share, High market growth = Question mark
Low market share, Low market growth = Dog
Features of star products in the Boston matrix
High market share, HIgh market growth = Star
- Alot of promotional activity needed due to market growth
- Generally generate alot of revenue and profits
Features of Cash Cow in the Boston matrix
High market share, Low market growth = Cash cow
- Established markets, have reached maturity stage of product life cycle
- Low rates of growth discourage new competition, meaning little promotional cost needed
- Can be milked for profits
Features of question mark in the Boston matrix
Low market share, High market growth = Question mark
- Pose problems for the business
- Competiting in competivie market
- Despite low market share, the growth in the market indicates potential revenue increases for the product
Features of Dogs in the Boston matrix
Low market share, Low market growth
- Little scope for profit, think carefully about retaining
- In a recession, likely to be withdrawn
What are the 6 stages of the product life cycle?
Development, Introduction, Growth, Maturity, Decline, Abandonment
What are the 4 types of lean production?
- Just In Time
- Kaizen
- Cell production
- Lean design
What are the 5 different types of organisational structures?
Functional organisational structure - This is a traditional structure with departments organised according to the different functions in the business for example marketing, operations, finance, and HR.
Geographical structures - These are organised according to the location of operations. They have the advantage of enabling more local decisionmaking that can ensure products are tailored to meet the needs of the local markets. These structures are adopted more by multinational and global organisations.
Product line - Organisational structures that are organised according to different products made by the business.
Customer and market-based – These are organisational structures
organised according to the customers or markets they serve. This is often used where business relies heavily on one or more large customers.
Matrix organisational structures - These are organised so that hierarchical and functional approaches are combined. This is a more flexible organisational structure in which tasks are managed in a way that cuts across traditional departmental boundaries and are often used in organisations that are project based
What are the 4 theories relating to employee motivation?
Hackman and Oldham Job Characteristics Model
Fredrick Taylor theory of motivation
Abraham Maslow theory of motivatin
Fredrick Herzberg theory of motivation
What is the theme of the Hackman and Oldham Job Characteristics Model? What is it?
That the tasks employees are expected to peform is the MAIN FACTOR underpinning their motivation. Job design = motivation.
They proposed there are 5 key job characteristics:
-Skills variety
-Task identity
-Task significance
-Autonomy
-Job feedback
Explain skills variety of the Hackman and Oldham Job Characteristics Model
Allowing employees to exercise a wide variety of skills. Instead of small tasks, to stay motivated employees need variety and more challenging work to stay motivated
Explain Task Identity of the Hackman and Oldham Job Characteristics Model
tasks must have a clearly defined start point and clearly defined end point
-Clear instructions for employees, clear goals
-This raises motivation and productivity
Explain task significance of the Hackman and Oldham Job Characteristics Model
Employees must see the importance of their tasks to stay motivated
-show they are contributing to the success of the business
-Raises motivation and productivity
Explain the autonomy feature of the Hackman and Oldham Job Characteristics Model
Employees ust have freedom to make decisions regarding work, some form of control and responsibility
Explain the job feedback feature of the Hackman and Oldham Job Characteristics Model
Workers are more motivated when recieving constructive feedback on work produced: praise or advice
What is Fredrick Taylors theory of motivation?
Taylors motivation theorys are underpinned by a ‘theory X management style’ =
‘Workers are inherantly lazy, reluctant to be productive and have to be cohersed into doing work, not interested in autonomy, managers need to sheperd’
He implemented ‘division of labour’ and ‘time and motion studies’. He increased workers motivation through monetary rewards
He was around in the 1900s, where if employers needed employees they would simply tell workers to bring anyone, they recieved little formal training and work was disorganised
What is ‘division of labour’ relating to Fredrick Taylors theory of motivation?
Breaking down the production process into smaller, more specialised jobs. Matching right employees to the right task
He belived repetition = increased productivity
What were Frederick taylors ‘time and motion studies’?
He would time workers doing task, looking for fastest worker and then take this workers style and use it as the ‘one best way’, others would learn
How did Fredrick Taylor increase motivation?
Through monetary rewards.
the ‘piece rate system’
Imposing ambitous targets, if achieved worker would recieve bonuses. Every piece of work beyond target would recieve additional fee
What are some problems with Taylorism?
-Organisations needed less workers which acted as a de-motivator as employees lost colleagues
-Targets kept increasing, felt efforts were not valued
-Industrial unrest led to rise in TUs
-Not effective long term
What is Abraham Maslows theory of motivation?
He developed a ‘hierarchy of needs’, the idea being that as workers progressed throuigh their working life, their needs and motivating factors changed.
As each need from the hierarchy is met, the next need becomes the motivator, they progressed through the pyramid:
1st) Physiological needs ; clothing, shelter food, bills, etc.
2nd) Safety needs ; Health and safety, job security, pension, longevity
3rd) Social needs ; Social opportunity, team-working, good relations
4th) Esteem needs ; Feeling like you’re achieving, work being recognized, contributing to business
5th) Self actualisation ; Fulfilled potential, being best you can be, making a difference
What is Frederick Herzbergs theory of motivation?
He split all factors of the job into two groups:
Hygiene factors: Aspects of job that do not motivate, however if one was missing then this would DEMOTIVATE
Motivators: Aspects that stimulate greater productivity
What are the hygeine factors relating to Frederick Herzbergs theory of motivation?
Pay
Working enviroment
Realtionships with colleagues
What are the motivators relating to Frederick Herzbergs theory of motivation?
Opportunties for promotion
Job design; herzberg believed in
-Job enlargment; Greater variety of tasks
-Job enrichment; More challenging/complex tasks
-Job empowerment; Responsibility, decision-making autonomy
What are some problems with Frederick Herzbergs theory of motivation?
Never really tested on large number of employees
What are some actual strats a business could use to improve employee motivation?
-Clearly defined vision that employees understand and identify with
-Well defined job description where employees understand there roles and have a sense of purpose
-Good working conditions to promote efficiency
-Training and development opportunities
-Good communication between employees and managers
-incentive programs that reward strong performance
What are core competencies?
Something unique that a business has or can do that enables it to compete effectively.
What other managemtn tool can core competencies be related to?
The S in SWOT analysis, the srenghts, the sources of competitive advnatage
What are the 4 actions of a business that a core competency can arise from?
- Colelctive learning within the business
- Ability to integrate skills and technologies
- Ability to deliver superior products and services
- Ways a business is differentiated
What are some examples of core competencies?
IKEA = Innovaye designs
Apple = intergated ecosystem between products
Starbucks = Differntiated accorss world
What are the 3 conditions a core competence has to meet?
1) Provide consumer benefits
2) Hard for competitors to immitate
3) Can be leveraged widely into many products and markets
What is the Kaplan and Nortons balanced Scorecard used for?
To measure business performance using both financial and non-financial data
How does the balanced scorecard work?
A top down approach, first analysing the businesses mission and vision statements, then indentifying ‘key performance indicators’ from 4 different perspectives.
What are the 4 perspectives of the balanced scorecard?
Financial perspective = Measures of financial performance I.E; ROI, ROCE, Opertaing profit margin
Customer perspective = Measures of customer satisfaction I.E; level of product returns, customer service feedback/online ratings
Internal processes = Measures of how efficient business is I.E; lead time between innovatio and launching product, unit costs
Organisational capacity = Measures of businesses ability to innovate I.E; retention rates of key employees, measure flow of new business ideas
What are some advantages of the balanced scorecard?
-Provides a broader view of how business is performing relative to its missions and vision than just financial performance
-Involves everyone in business, not just financial department
-Highly flexible, many different KPIs can be used
What are some drawbacks of using a balanced scorecard to asses business performance?
-Danger of too many KPIs, can become confusing, should only use the KEY p[ieces of data
-Need to find balance between 4 perspectives
-In many businesses, senior managemtn are purely concerned with financial perspective due to their bonuses ETC
-Needs to be updated regularly to be useful
What is Elkingtons Triple Bottom line?
A model used to asses business performance relating to CSR.
Idea is to encourage businesses that their is more to business activity than just making a profit.
The three areas of Elkington’s Triple Bottom line are the three Ps:
Profit, People, Planet
Why does the Triple Bottom Line exist?
-Businesses have for too long focused on narrow measures of performance; I,E profit, share price etc…
-Profit is important but is not the only factor that should be considred when assesing business performance
Explain each of the 3 Ps from the Triple Bottom Line
Profit = reported in income state, reliable figure in terms of business success, measure extent to which busines is making a profit
Planet = How business activties impact on enviroment, alot more difficult to measure, some ways include; Carbon Emisions
People = Assess the extent to which a business is socially reponsible, hardest to measure of the 3 Ps
What are the benefits of the triple bottom line to a business?
-Encourages business to think beyong jsut profit being realtive measure of performance
-Encourages wider CSR reporting
-Supports measures of enviromental impact and sustainability
What are some drawbacks of the triple bottom line?
-people and planet are quite difficult to measure and ensure comparitability between different organisation
-No legal requirement for business to report their Triple Bottom Line, therefore there has not been a large applicatio of the performance measure
What was Friedmans view regarding CSR and what was Carrol’s view regarding CSR?
Friedman = The social responsibility of a business is to increase profit
Archie Carrol = Profit is important, but businesses have a wider purpose and social responsibility
What is Carroll’s CSR pyramid?
A framework for thinking aboout CSR, representing four responsabilities of business. Bottom being most important.
From bottom of pyramid to top =
- Economic
- Legal
- Ethical
- Philanthropic
Explain the economic resposibility of Carroll’s CSR pyramid
Business must first make a profit, is only useful to society if it is able to survive, pay wages etc.
Explain the legal resposibility of Carroll’s CSR pyramid
After economic, a business must then obey the law and other regulation
Explain the ethical resposibility of Carroll’s CSR pyramid
Responsibility of a business to ‘do the right thing’, to act morally and fairly
Explain the philnathropic resposibility of Carroll’s CSR pyramid
Where businesse go beyond acting ethicly and begin to give back to society
What is Micheal Porter’s five forces used for?
A framework for analysing the nature of competition within an indsutry
What are porters 5 forces?
Threat of new entrants to a market
bargaining power of suppliers
Bargaining power of customers
Threat of substitute products
Degree of competitive rivalry
What is Ansoffs Matrix?
A market planning model that helps a business determain the right growth strategy ; its product and market strategy.
Draw thw Ansoffs Matrix
See flashcard
Explain the Market Penetration stratgey of the Ansoff’s Matrix
Where the business sells existing products to existing markets.
Aim = To increase market share
Lowest risk strategy, safety firs.
The aim is to increase market share by selling more exisint products to the same target customers. Basically getting customers to buy more products, for example by widening range of existing products
Benefits and costs of Market Penetration of Ansoff’s Matrix
Benefits:
-Low risk
-Business knows customer base well
-No need for large market research costs
Costs:
-Will strategy be enough to achieve growth targets?
Explain the Product Development stratgey of the Ansoff’s Matrix, some benefits and costs
Introducing new products into existing markets.
Need for strong market research to gain insight customer needs
Benefits:
-Plays to strength of business as they know the customer base
Costs:
-Market research
-Success depends heavily on being first to market product
Explain the Market Development stratgey of the Ansoff’s Matrix, and some possible approaches
Selling existig products into new markets.
-New geographical markets
-New distribution channels (e-commerce, etc.)
-Different pricing policies to attract new customers in different segments
What are some benefits and cons of the Market Development strategy of Ansoff’s matrix?
Benefits:
-Useful when exisitn gmarkets are saturated or declining
Cons:
-More risky than product development
-Existing products may not meet new customer needs
Explain the Diversification stratgey of the Ansoff’s Matrix.
What are some approaches to diversification?
Growth strategy where a business sells new products in new markets
-Innovation and RnD; developing new solutions
-Acquire an existing business in market
What are some Pros and benefits of diversification strategy of Ansoff’s matrix?
Benefits:
-Can prove extemely profitable for busienss if succesful
-Establishing in a new market allows for future use of less risky growth strats in new marker
Costs:
-Inherently risky, no direct experience of product or market
-Initially few EOS
Draw Bowmans Strategic clock
see flashcard
What is Bowmans Strategic Clock used for?
A theoretical model that explores the options to a business for how it should position a product to give it the most competitive position in a market.
It presents 8 strategies, comparing with each their percieved value to the customer aswell as the price of the product compared to competition.
Explain position 1 of Bowmans Strategic Clock
1 = south east = ‘Low price and low added value’
-Not very competitive strategy
-Product not differentiated, little percieved value
-Depends on low pricing to survive and hopes to not be undercut
-Not sustainable for long term
Explain position 2 of Bowmans Strategic Clock
2 = east = ‘Low price’
-Some added value, still competing on low price
-Succesful businesses in this position will be the low cost leaders
-Profit margins are low, aiming for EOS and high output
-Pure price competition, with acceptable value product
-Price wars common
Explain position 3 of Bowmans Strategic Clock
3 = north east = ‘Hybrid’
-Some element of low price comp + some element of differntiation
-Example would be ikea
-Aim is to persuade customers that their is stil value at lower price
-Very effective strategy, can persist in long run
Explain position 4 of Bowmans Strategic Clock
4 = North = ‘Differentiation’
-Aims to offer customers highest level of percievd value
-Branding plays key role, so does product quality, customer loyalty and brand awareness
-EXAMPLE = Starbucks
Explain position 5 of Bowmans Strategic Clock
5 = North west = ‘Focused Differntiation’
-Same as differntiation, but positioning product at deliberatly higher price
-High levels of perceived value
-Adopted by luxury brands
-Can bring great profit margins
-To be succesful, percieved value of product must remain very high:
marketing, market segmentation, etc.
Explain position 6 of Bowmans Strategic Clock
6 = West = Risky High Margins
-Pricing high but without offering percieved value
-Risk of competitor either offering same value and undercutting OR offerijg same price at better value
-Eventually, customers will find better alternatives, making an uncompetitive strategy in the long run as its success depends on a stream of new customers
-EXAMPLE = Halo Leisure Center
Explain position 7 of Bowmans Strategic Clock
7 = South west = Monopoly pricing
-Charging very high prices with low percieved value to customers
-Only possible if firms has monopoly power due to a lack of competition in the market, for exmaple due to high barriers to entry into that particular industry
-Monopoly can set price
-howevere, they are usually tightly regulated
-EXAMPLE = Royal Mail
Explain position 8 of Bowmans Strategic Clock
8 = south = Loss of market share
-Recipe for disaster
-Happening at any stage where a business is offering a product with realtively low added value for a price that is not low, for example middle range
-consumer has no reasons to stick to product ; can get higher value for same price OR lower price for same value
Which are the uncompetivie positions of Bowmans Strategic Clock?
6, 7 and 8 = where price is greater than percieved value
If there is competition in market, then these strats are unsustainable
What did Ports Generic Strategies look at?
What are the sources of competitive advantage for businesses.
Porter identified 3 generic strategies for achieving a competitive advantage
Cost leadership
Differentiation
Focus; a)Cost focus b) DIfferentiation Focus
What is the grid for Porters Generic Strategies? DRAW IT MF
see flaschard
What is the objective of low cost strategies to gain a competitive advantage? What does it typically involve?
Become the lowest-cost operator in the market;
-typically involves production on a large scale, exploiting EOS
Why is being a low-cost operater a source of competitive advnatage?
-If selling price in market are broadly similar, then low cost oeprating will enjoy the highest profits
-Can also offer lower prices and gain market share
What makes a market suitable for this strategy?
-Standard product with little differentiation between competitors
-Branding of product is relatively unimportant
What are some key features that allows a business to be a low-cost operator?
-High levels of ouput, high EOS
-High capacity utilisation
-Highly efficient through investment in automation
-Lean production methods to lower cost and waste
-Use bargaining power to drive down supplier price
EXAMPLE = Ryanair, Aldi, Xaomi
How does a differentiation strategy in Porters generic strategies aim to gain a competitive advantage?
By offering a product that is distinctly different from competition, creating percieved value for the customer
How could a business achieve differentiation in regards to Porters Generic Strategies?
-Superior quality ; benefits, lasts longer, more reliable,
-Superior branding ; strong custmer recognition, brand loyalty
-Wide distribution ; easy to buy, using all channels, widely available
-Sustained promotion ; dominated advertising
EXAMPLES = Apple, Dyson
What happens if a business is not low cost or differentiated according to Porters Generic Strategies?
They get ‘stuck in the middle’ …. some compeitiors have lower costs and therefore lower prices, and other compeitiors who have a better differentiated product I.E more appealing to customers
EXAMPLES = McDonalds, struggling to compete
What are some different influences in the strategic position that a business may adopt?
-Scale of the business, easier to adopt cost advantage with EOS
-Capability and strengths of the business
-Views of customer base
-PESTLE factos
-Stakeholders
-Which strategy is most sustainable in long term
What was the main idea of Lewin’s Force Field analysis?
Copmaring the forces that are pushing for change (driving forces) with those that are resisting change (restraining forces).
The model aims to ‘score’ all of the forces based on their strength on a scale from 1 -> 5. You then add the total for driving forces and restrainging forces, and whichever comes out on top is what should be listened to.
What occurs if Lewins force field analysis is at equilibrium?
Then there will be no change. However a business may look to make the driving force GREATER than the restraining force, allowing change management programs to be more likley to succeed.
What are some exmaples of forces that are driving change in Lewins Force Field Analysis?
Internal =
Need for higher profits
Lack of efficiency
Need for innovation
Need to change culture
External =
Customer demand
Competition
Legislation and Taxes
PESTLE
Why does resistance to change occur and what are some examples of restraining forces in Lewin’s Force Field Analysis?
Change can be disruptive, stressful and may not be appropiate for the business.
-KOTTER AND SCHLESINGER RESISTANCE TO CHANGE
What are Kotter and Schlesinger’s 4 reasons for resistance to change?
Self-Interest -> worse off if change occured
Fear and Misunderstanding -> dont trust manager’s motives
Different Assesments -> understand reasons but think there is better way
Prefer things as they are -> they dont like change
What are Kotter and Schlesinger’s 6 ways of overcoming resistance to change?
Education and Communication
Participation and Involvement
Facilitation and Support
Manipulation and Co-option
Negotiation and Bargaining
Explicit and Implicit Coersion
What is Handy’s Model of Culture? Explain all
Identified 4 different classes of culture
Power = control from centre
Role = Delegation, clear roles, hiearchy
Task = team
Person = individuals, company exisists so that they can work, like freelancing
What is Hofstede’s National Culture Theory?
He proposed that there are 6 categories which can measure and define international culture differences:
-Individualism VS collectivism
-Power distance(prefering tall hierarchy, centralised etc or not)
-Masculine vs Feminine decision making
-Uncertatinty avoidance (tolerance to risk)
-Long term orienatation (short term vs long term thinking)
-Indulgence VS restraint
What is greiners model of growth?
see flashcard
What is Bartlet and Goshal’s model of international strategies?
see flashcard
What models do we use in an essay question about management?
Tannembaum-Schmidt Leadership Continuum
Blake Moulton Grid
What models do we use in an essay question about stakeholders?
Mendelows Stakeholder Mapping
What models do we use in an essay question about products?
Boston Matrix
Product life cycle
Maybe porters 5 forces?
What models do we use in an essay question about motivation?
Hackman and Oldham Job Characteristics model
Fredrick Taylor theory of motivation
Abraham Maslow theory of motivation
Fredrick Herzberg theory of motivation
What models do we use in an essay question about assesing business performance?
SWOT analysis
Kaplan and Norton’s Balanced Scorecard
What models do we use in an essay question about CSR?
Elkington’s Triple Bottom Line
Carrol’s CSR Pyramid
What models do we use about understanding the industry a business operates within?
Porters 5 forces
What models do we use in an essay about the future / strategy of a business?
Ansoff’s Matrix
Bowman’s Strategic Clock
**Porter’s Generic Strategies
**Bartlett and Goshal’s model of international strategy
Boston Matrix
Greiner’s Model of Growth
What models do we use in an essay about change?
Lewin’s Force Field Analysis
Kotter and SChlesinger’s reasons for resistance to change
Kotter and Schlesinger’s 6 ways of overcoming change
What model’s do we use about culture?
Handy’s 4 classifications of organisational culture
Hofstede’s national cultures
