PPT 9- Management Strategies Flashcards
Financial Management
Initiatives aimed at improving the finance function within an organisation.
The strategy for transforming a business must align to the business’s overall strategy in order to become more efficient or effective and can involve:
* Improving the budgeting cycle
* Implementing a new accounting software program to reduce overhead costs
Will relate to two core areas:
* Profitability: Minimising costs to maximise profits
* Growth: improve the overall financial position and cash flow by:
* Selling assets that are no longer used by the business
* Improving cash flow by following up on outstanding customer payments; or taking a business loan
* Increasing prices
* Reducing expenses by changing suppliers, modifying the quantity or switching to cheaper alternatives for consumables
Human Resources Management
Business transformation has a significant impact on employees at all levels within an organisation.
HR should assist by influencing:
* Increasing employees understanding of the change
* Improving employee skill and proficiency levels through training initiatives
* Improving communication levels with the organisation during the change process
* Enhancing relationships and building corporate culture that embraces change.
Strategies to improve employee relations include:
* Rebuilding and promoting corporate culture
* Promoting a clear vison for the change and its benefits to employees
* Developing training or retraining programs for existing employees
* Implementing performance management programs such as performance appraisals and KPI’s
* Initiating reward systems to reinforce the new behaviours with both tangible and intangible rewards
* Maintaining existing employees by offering flexible working arrangements or other incentives
* Implementing a code of conduct to uphold ethical standards
* Recruitment and selection of new employees required to meet the needs of the change
* Offering redundancy packages for outgoing employees
Marketing Management
Strategic role during a transformation change is to maximise scale and profits.
Strategies should focus on the customer and increasing market share
Marketing strategies to improve the competitive advantage:
* Product – consider the unique selling point of the products sold
* Price – price effectively to avoid financial consequences. If the price is too low, profit is reduced; if the price is too high, sales are reduced
* Place – position the business to reach customers, suppliers and distribution channels
* Promotion – select promotional techniques to create the most cost-effective marketing strategy
* People – employ a team that meets the marketing objectives of the business
Operations Management
Strategic objectives during transformation include improving productivity or reducing production costs.
Decisions made need to meet the strategic plan of the business and include:
* Production – development of new products and services
* Process – developments in technology to improve operations
* Quality controls – measuring and improving the quality of products and services
Operational strategies include:
* Introducing production technologies to support changes in the production process
* Introducing ecologically sustainable practices
* Outsourcing operational processes or production
* Increasing the capacity of the business to accommodate changes, including change to equipment and resources
* Improving facilities or resources for employees, such as simplifying or changing operational sequences
* Refitting or reorganising the business to improve the efficiency of the operations
* Moving the business to a more suitable location
* Implementing quality controls to ensure customer satisfaction
