Topics That Have Not Came Up! Flashcards
What are the problems with changing organisational culture?
- employees usually resist to any kind of change refer to kotters and schlesingers four reasons (self interest ,misunderstanding, low tolerance to change.
-can be expensive may involve giving extra training.
-HR may need to change their recruitment process or change the payment and reward system.
How does Innovation affect functional areas?
-Finance: r&d for products is expensive so finance department may need to raise working capital to pay for it. For example share capital,, overdraft
-operations: innovation in production methods might mean that operations department may need to set some it’s budget side to spend on new machinery. Also need to organise employees in training to get them up to speed to new processes.
-marketing: market research will be increased the risks and costs are high so they need to make sure consumers will want or need the product may need to change marketing mix. Eg use different pricing strategy.
-HR: innovation means change in staff needs. Need more skilled staff. Make sure that the business has the right culture. Need to reward employees to encourage to take risks.
What is Benchmarking?
Identifying how to improve your business by comparing its performances, products, processes against those of another firm.
Evaluate benchmarking.
- tends to motivate staff as it’s more encouraging to introduce a process or a product that you’ve already seen working successfully.
- will not directly lead to new products competitors products are likely to be protected by patents and trademarks.
-another downside may be that processes can’t always be transferred as businesses have different corporate cultures.
What is a culture of kaizen?
Kaizen approach to innovation is by encouraging employees to improve the way they work and processes they use.
What are core competences?
Capabilities of the business that are unique and give competitive advantage over rivals. An example of a feature to be different is specific piece of technology, understanding of their customer base
What is a multinational company?
A business that has branches or departments in more than one country.
How can a business exploit developing countries?
Some may exploit in order to maximise profits
-some may move to a country with non strict employment laws and may take advantage which is unethical
