Pursuing strategies Flashcards
UNIT 9
innovation definition
improved product e.g velodrome bike over or iphone 15
Invention definition
a new product e.g penny farthing or first ever phone
what does product innovation have
extra benefits for the consumer e.g upgrades to the item
what does process innovation do
streamline production so costs are lower, which can be passed onto the customer in the form of lower prices
why is innovation important
to stay competitive and profitable
what is key to being an innovative business
a positive environment where it is acceptable to fail with secure funding and a sharing attitude
What makes an innovative business environment
benchmarking
intrapreneurship
kaizen groups
positive leadership values & strategies
good at listening to customers and employees
What is benchmarking
comparison against the best in the field to aid improvement
what is intraprenurship
entrepreneurship within a larger organisation
How to protect your innovations
Copyright
trademarks
patents
design rights
registered designs
What is copyright
automatic
on literary works
lasts 70years after inventors death
what are trademarks
registered
on names, logos and jingles
lasting 10 years
what are patents
registered
on inventions and products
lasting 20 years
what are design rights
automatic
on shapes
lasting 5 years
what are registered designs
on shapes, packaging and colours
lasting 5 years
emphasis on innovation protection - DYSON
high emphasis
a lack of would increase a potential loss of market share
for Dyson, this could also be a potential revenue stream as they win many of IP lawsuits
emphasis on innovation protection - TRUNKI
little/no emphasis
used first move advantage
protection would be ineffective due to its simple design
what is disruptive innovation
when new markets are created which replace the old ones and their old technology e.g google over encyclopaedias & uber over taxi ranks
Innovation impact on HR
a positive culture needs to be developed for it to occur
Innovation impact on Finance
have to have finance available to fund projects which may not necessarily work
Innovation impact on Operations
new/more project managers needed
Innovation impact on Marketing
initial stimuli of market research required
What are the pressures for innovation
PESTLE-C
causes of internationalisation
trade agreements
improvements in transport
improvements in communication
opportunities of internationalisation
importing
exporting
offshoring
why would a business want to sell overseas
to increase the size of the target market
to reduce risk by expanding into other national markets
methods of entering international markets
exporting
licensing - selling rights to an overseas business for them to produce under your name
joint ventures - overseas partnerships
direct investment - investing in production facilities etc overseas
factors influencing the attractiveness of markets
size and growth of market
costs of entering
cultural similarities
level of competition
perceived risk
impact of overseas growth
reasons for producing abroad
cheaper
closer to resources
closer to market
specific skills of an area
may overcome barriers to trading
reasons for re-shoring
quality issues
delivery issues
fall in cost difference
desire to create jobs locally
reasons to offshore
pressure for growth
pressure for lower costs
location
politics/economics
what do Bartlett and Ghoshal do to help managers
provide strategies for managing overseas/international businesses
Bartlett and Ghoshal: low pressure for local responsiveness + low pressure for global integration
international
Bartlett and Ghoshal: high pressure for local responsiveness + low pressure for global integration
Multi-domestic
Bartlett and Ghoshal: high pressure for local responsiveness + high pressure for global integration
Transnational
Bartlett and Ghoshal: low pressure for local responsiveness + high pressure for global integration
Global
Bartlett and Ghoshal: international strategy
products are not adapted, just sold abroad
Bartlett and Ghoshal: multidomestic strategy
regions manage themselves independently, locally responsive
Bartlett and Ghoshal: global strategy
centralised, standardised products allowing for economies of scale
Bartlett and Ghoshal: transnational strategy
sharing knowledge, expertise and responsibility between regions
risks of internationalisation:
cultural differences
different decision making styles
ethical standards
anti-globalisation feelings
instability of the country
Digital technologies
ERP
E-commerce
Big data
Data mining
What is ERP
enterprise resource planning is a software to manage data.
What is data mining
the process of breaking down big data to find correlations and patterns
what should ERP do
increase productivity and efficiency by ensuring resources are best allocated
faster response and flexibility
impacts of digital technology
improvement of communication and the availability of information
better management
enabling new ways of doing business
changes in HR
challenges of digital technology
leadership & control of tech
culture changes
the rate of change will increase
pressures to adopt digital technology
to keep up with the market
need to keep pace with competitors
need to keep costs down
threats of digital technology
easier for consumers to compare prices, squeezing profit margins
unexpected competitors
rapid change
impact of digital tech on HR
changes in skills needed of employees
nature of jobs may change from intuition to scientific
impact of digital tech on Marketing
more data to be gathered
more personalised and efficient marketing
impact of digital tech on OPS
ERP - greater efficiency, less waste, better cash flow
