Problem Areas Flashcards
What is included in the cultural web?
Stories
Symbols
Power Structure
Organisational Structure
Control Systems
Routines & Rituals
Organisational Paradigm
What is included in stories in the cultural web?
Leadership style
Characters
How things used to be
What is included in symbols in the cultural web?
Reserved parking
Back door for staff
Dress code
What is included in power structure in the cultural web?
Chief officer
Committees
Elected Members
What is included in organisational culture in the cultural web?
Functional
Hierarchial
Autocratic
What is included in control systems in the cultural web?
Budgetary
Service plan
Complaints
What is included in routines and rituals in the cultural web?
Committees
Formal Induction
Blame Someone
What is included in organisational paradigm in the cultural web?
Good service
Professional standing
What is seen as ‘hard’ in McKinsey’s 7S’?
Tangible and easy to quantify
Structure
Strategy
System: daily activies
What is seen as ‘soft’ in McKinsey’s 7S’?
Less easily quantified and more subjective
Skills
Style: Style of leadership
Staff
Shared values: Core values
What did Beer and Nohria identify?
A proportion of all businesses change initiatives fail
What is Theory E?
Shareholders value is main concern.
Change involves incentives layoffs, downsizing and restructure
What is Theory O?
‘Softer’ approach involving cultural adjustments or enhancing employee capabilities. Requires employee involvement in change process
What is differentiation?
Creating a customer perception that product is superior so we can charge a premium
What are the four types of change?
Evoluton
Adaptation
Revolution
Reconstruction
What is evolution?
Transformational change implemented gradually through inter related activities
What is adaptation?
Change undertaken to realign the way in which businesses operates. Implemented in a series of steps.
What is revolution?
Transformation change that occurs via simutaneous initiatives of many fronts. More likely to be forced and reactive
What is reconstruction?
Change to realign way in which organisation operates with many initatives implemented simultaneously
What is Payne’s six markets?
Customer
Referral
Supplier
Recruitment
Influence
Internal
What is supplier market?
Partnership with supplier.
Supermarket set up JIT system with supplier.
What is influence market?
Used to be called public relations
What is internal market?
Concept of internal quality management.
Every department has a customer provider relationship with others.
What is included in Porter’s diamond?
Demand Conditions
Related & Supporting Industries
Factor Conditions
Strategy, Structure & Rivalry
What is demand conditions?
Sophisticated home demand can lead to competitive developing significant advantage in a global market
What is related & supporting industry in Porter’s diamond?
Advantage conveyed by availability of superior supplier market
What is Factor conditions in Porter’s diamond?
Supply of production factors that conveys advantage
What is strategy, structure & rivalry in Porter’s diamond?
Different nations have different approaches to business in terms of structure and intensity of rivals
What are the four types of competitors?
Brand Competitor
Industry Competitor
Form Competitor
Generic Competitor
What is a brand competitor?
Sell similar products to same customer we serve
e.g. pepsi and coke
What is an industry competitor?
Sell similar products but in different segments e.g. BA and EasyJet
What is form competitors?
Sell products that satisfy the needs as ours though technically very different e.g. speedboat and sports car
What is a generic competitor?
Compete for same income e.g. home improvements and golf clubs
What are the three building blocks?
Dimensions
Standards
Rewards
What is the dimensions building block?
Profit, competitiveness, Quality, Report utilisation, innovation, flexibility.
Goals of the business and suitable measures must be developed to measure each performance dimension
What is the standards building block?
Ownership, availability, Equity
What is the rewards building block?
Clarity, Motivation, Controllability
What is an example of financial perspective?
Increased revenue
Rising market share
Increased cash flow
What is an example of internal business perspective?
Reduction in production time
Reduction in errors
Reduced wastage
What is an example of customer perspective?
Increase in new customers
Increase of customers returning
Rise in positive feedback
What is an example of learning & growth?
Number of days staff training, Number of new products
What is the downside of stretch targets?
Employees will see it as unachievable and be demotivated
Stretch targets may encourage unethical behaviour
What are the four types of strategy to manage decline?
Retrenchment
Turnaround
Divestment
Liquidation
What is retrenchment?
Doing same as before but cutting costs
What is turnaround?
Organisation repositions itself with the market for competitive advantage
What is divestment?
Involves external sale of part of the organisation
What is liquidation?
Organisation sold to one or more buyers. Last resort.
What is EVA?
Economic value added
Estimate of true economic profit after making adjustments to GAAP accounting
Profit less charge for capital employed
What is SVA?
Shareholder value added
Main aim is to add value to customer wealth
SV calculates as PV of future free cash flows of business
What does SLOWCAT stand for in terms of SVA?
Sales growth rate
Life of project
Operating profit margin
Working capital
Cost of capital
Asset investment
Taxation
What are the four ways to resolve conflict according to Cyert & March?
Satisficing
Sequential attention
Side payments
Exercise of power
What is satisficing?
Negotiating with key stakeholders to arrive at a compromise
What is sequential attention?
Management focus on stakeholder needs in turn
What is side payments?
Stakeholders objectives can’t be met so they are compensated in some other way
What is exercise of power?
Deadlock resolved by senior figure forcing through a decision
What is the downside of scenario planning?
Costly and inaccurate
Tendency for cultural distortion
Risk of self fulfilling prophecy
Many scenarios will not actually occur
What is the upside of scenario planning?
Focuses management on future
Encourages creative thinking
Encourages communication
Can identify sources of uncertainty
Can be used to justify a decision
What are Irvine & Martins 5Cs?
Communication
Consensus
Commitment
Concentration
Coordination
