Theoretical models Flashcards
SAF
Suitability
– does it fit with mission and values?
– does it fit with our strengths?
Acceptability
– financial return
– risk
Feasibility
– financial resources
– labour resources.
Capitals
- Fishman *
Financial
Intellectual - intellectual property – patents, copyrights, software and accumulated knowledge, systems, procedures
Social - stakeholder norms, brand and reputation
Human - skills, experience. Understanding, motivation, loyalty, and ethics of staff.
Manufactured
Natural - environmental resources (water, mineral, land)
Mendlow matrix
Stakeholder analysis
Interest versus power
BCG
Product classification
Ansoff’s product market matrix
Often referred to as product/market expansion grid
Used to evaluate growth initiatives
McKenzie teambuilding
Concept of shared values. If we explain the why people are more likely understand the big picture and work with you
How participative is the management or leadership style? A cooperative approach to leadership will be highly participative and effective.
Lewins change model
Unfreeze
Change
refreeze
Developing a strategy
Porters generic strategies (cost/differentiate cost/focus/focus differentiate)
- Ansoffs grid (product development/market development/build/diversify)
– method of growth (acquisition/organic/JV)
– evaluate options (SAF)
COSO ERM
Key principles
Consideration of risk management in the context of business strategy – risk management becomes closely linked with the courses of action we want to take to achieve our strategic goals and objectives.
Risk management is everyone’s responsibility with the tone set from the top – not limited to a select number of people but it’s everyone’s responsibility and the leadership of managing risk trickles from the top level.
The creation of a risk aware culture – identifying and minimising risks becomes a course of normal affairs within such a company.
Comprehensive and holistic approach to risk management – the ERM framework looks and analyses all/broad areas of risks exposure that an organisation can face. Helps the organisation take a complete approach
COSO ERM
Benefits
Enhances decision-making by integrating risks – risks are integrated to understand it in holistic manner. Gives the organisation a complete picture of the nature of the various risks, how they relate to each other and ways that can be minimised to enable better decision-making.
Improves investor, confidence and shareholder value – Implies your organisation takes responsibility and understanding and managing its risks.
Focuses management attention on significant risks – an organisation confessing numerous risks. It must identify those with the highest likelihood and an impact.
A common language of risk management understood throughout the organisation – the ERM framework is based on the guiding principles and they are common irrespective of level of function.
Reduces the cost of finance through effective risk management – the more risks we have, the higher the cost of financing will be. By actively managing them using the ERM framework we can effectively reduce our exposure and this will result in lowering our cost of finance.
Porters five forces
Competitor analysis
Identify competitors
Analyse competitors – where competing, objectives and assumptions, key strength, resources, competencies
Draw up response profile – predictability, strength and selectivity of response
What is five forces?
The forces
Competitive rivals – number of competitors, industry growth, similarities
New entrance – economies of scale, product differentiation, capital requirements, access to distribution channels, regulations, switching costs.
Supplier power – number of suppliers, uniqueness, switching costs, forward integration
Customer power – number of buyers, purchase size, switching costs, price sensitivity
Threat of substitutes – relative price performance, willingness to go out elsewhere, availability of close substitutes
