Models, Concepts and Theories

Question 1

Tannenbaum Schmidt Continuum

Answer 1

A continuum from boss-centred leadership to subordinate-centred leadership.
Tells, sells, consults, joins.
Shows a range of management styles.

Question 2

Blake Mouton Grid

Answer 2

Shows a range of management styles.
Compares concern for people with concern for task.
LP LT = impoverished
LP HT = produce or perish
HP LT = country club
HP HT = team leader

Question 3

Scientific decision making

Answer 3

data-based approach to decison making
set objectives, gather data, analyse data, select, implement, review

Question 4

Decision trees

Answer 4

provides an example of scientific decision making based on probabilities.

Question 5

stakeholder mapping

Answer 5

categorises stakeholders in regards to their power and interest.
LP LI = monitor
LP HI = keep informed
HP LI = keep satisfied
HP HI = manage closely

Question 6

market mapping

Answer 6

identifies how other products/brands are perceived by customers relative to others.
high price vs low price
innovative vs conservative

Question 7

price elasticity of demand

Answer 7

if demand is price elastic, the demand is sensitive to price - a fall in price leads to higher demand. (greater than 1)
if demand is price inelastic, the demand is not sensitive to price - an increase in price leads to an increase in revenue. (lower than 1)

Question 8

income elasticity of demand

Answer 8

measures the sensitivity of demand to changes in income.
% change in demand / % change in income
positive answer means that an increase in income increases quantity demanded

Question 9

STP

Answer 9

segmentation, targeting, positioning.
managers must analyse a market to identify the segments that exist, select which to target and then decide where in the market the product should be positioned.

Question 10

Marketing Mix

Answer 10

7PS: product, price, people, promotion, process, place, physical environment

Question 11

boston matrix

Answer 11

a method of product portfolio analysis.
compares market share to market growth.
LMS LMG = dogs
LMS HMG = problem children
HMS LMG = cash cows
HMS HMG = stars

Question 12

the product life cycle

Answer 12

the typical stages that sales of a product may go through over time.
development, introduction, growth, maturity, saturation, decline

Question 13

inventory control chart

Answer 13

highlights issues with inventory management such as their re-order level, re-order quantity, usage rates and lead time.

Question 14

Hackman and Oldman’s model of job design

Answer 14

skill variety, task identity, task significance - experienced meaningfulness of work - high internal work motivation.
autonomy - experienced responsibility for the outcomes of work - high quality performance
feedback - knowledge of actual results of work activities - high satisfaction with work

Question 15

Herzberg’s theory

Answer 15

motivating factors = achievement, recognition, job advancement opportunities, growth opportunities
hygiene factors = employee relations, company policy, workplace, working conditions, salary, status, security, supervision

Question 16

Maslow’s hierarchy of needs

Answer 16

motivation is the result of a person’s attempt at fulfilling five basic needs.
physiological, safety, social, esteem, self-actualisation.
must work up the hierarchy, each can only be fulfilled when the ones below it are.

Question 17

Taylor’s theory

Answer 17

Scientific Management - theory based on observation of managers and employees
employees are only motivated by money.
piece-rate-pay should be used and is the most motivational.

Question 18

Mayo’s theory

Answer 18

Human Relations Approach.
employees are motivated far more by relational factors such as attention and teamwork.
teams should help support and influence each other.

Question 19

SWOT analysis

Answer 19

a part of strategic planning which identifies current strengths and weaknesses and future opportunities and threats.
will be unique to each business.

Question 20

Kaplan and Norton’s balanced scorecard

Answer 20

highlights the influences on the success of a business, beyond profit.
4 perspectives: financial, customer, internal processes, learning & growth.

Question 21

Elkington’s triple bottom line

Answer 21

success can be measured in ways other than profit.
people, profit, planet.
businesses should look at all three to measure overall success.

Question 22

Carroll’s corporate social responsibility pyramid

Answer 22

outlines the different possible aspects of social responsibility for a business.
economic (profitable), legal (obey law), ethical (avoid harm/do the ‘right thing’), philanthropic (good corporate citizen/actively helping society).

Question 23

Porter’s 5 forces

Answer 23

forces that determine the profitability of a business.
degree of rivalry, buyer power, supplier power, entry threat and substitute threat.

Question 24

sensitivity analysis

Answer 24

managers will realise there is a range of possible values for revenue and cost forecasts.
they will calculate investment appraisal stats for different scenarios.

Question 25

Ansoff’s matrix

Answer 25

sets out strategic options for a business.
market penetration
product development
market development
diversification

Question 26

porter’s strategies

Answer 26

compares source of competitive advantage with the market where the business competes.
cost leadership, cost focus, differentiation leadership, differentiation focus

Question 27

Bowman’s strategic clock

Answer 27

outlines different strategies in terms of the perceived benefits (added value) and price.
1. low price, low added value (uncompetitive)
2. low price (competitive)
3. hybrid
4. differentiation (“ “)
5. focused differentiation (“ “)
6. risky high margins (uncompetitive)
7. strategies destines for ultimate failure(“ “)
8. loss of market share (“ “)

Question 28

Greiner’s model of growth

Answer 28

highlights the challenges that typically occur in managing a business as it grows
compares the size to the age of the organisation. there are 5 stages of evolution with 5 stages of crises inbetween.
evolution: creativity, direction, delegation, coordination, collaboration
crises: leadership, autonomy, control, red-tape, ?

Question 29

Bartlett and Ghoshal’s strategies

Answer 29

managing international business.
compares cost pressures to local responsiveness.
LCP LLR = intenational strategy
LCP HLR = multidomestic strategy
HCP LLR = global strategy
HCP HLR = transnational strategy
the strategy adopted by a business will depend on the relative strength of market forces.

Question 30

Lewin’s force field analysis

Answer 30

highlights the forces for and against change.
driving forces - positive forces
restraining forces - obstacles against

Question 31

Kotter and Schleisinger’s reasons for resisting change

Answer 31

4 reasons why people resist change:
self-interest
misunderstanding/fear
preference for the status quo
different views

Question 32

Kotter and Schleisinger’s model of overcoming resistance to change

Answer 32

education (communicate reasons for)
participation (involve employees)
facilitation (support employees)
negotiation (compromise)
manipulation (offering rewards)
coercion (force change through)

Question 33

Handy’s culture model

Answer 33

four types of culture:
power (focuses on decision makers)
role (clear positions within hierarchy)
task (specific tasks and projects)
people (freedom to act independently)

Question 34

Hofstede’s national cultures

Answer 34

cultural differences:
power distance (acceptance of power)
uncertainty avoidance (threat of ambiguity)
individualism v collectivism (team or individuals)
masculinity v femininity (assertiveness & money or concern for others & quality of relationships)
long-term orientation (long-term thinking)

Question 35

network analysis

Answer 35

used in project planning to plan the ‘critical path’

Question 36

strategic drift

Answer 36

occurs when the business strategy no longer fits the environment around it; conditions have changed.
phase 1 = incremental change
phase 2 = strategic drift
phase 3 = flux
phase 4 = transformational change or demise