Types of models Flashcards
What is the RSVP model?
R - Reason - Why the organisation exists and/or for whom
S - Strategy - The way the organisation will achieve its mission
V - Values - What the organisation believes in
P - Policies - The policies and behavioural patterns underpinning its work
What is the Mendelow’s theory?
Places stakeholders in a matrix according to their levels of power
If low level or interest and low power - Minimal effort e.g community
If low level of interest but high power - Keep satisfied e.g HMRC
If high level of interest but low power - Keep informed e.g employee
If high level of interest but high power - Key players e.g Investors
What is the PESTEL analysis?
P - Political - Policies and attitude, Government stability, Taxation and Spending
E - Economic - Globalisation, Interest rates, Exchange rates
S - Social - Income levels, Age, Attitudes and behaviours
T - Technological - Us of R&D, Speed of change, Cyber crime
E - Environmental - Sustainability, Pollution, Disasters
L - Legal - Regulations, Taxation law
What are Ohmae’s five Cs?
Customer - Can the product satisfy tastes in different countries
Company Itself - As company enters into additional markets, its fixed costs should be spread
Competition - Entering into an overseas market could encourage a previously local operator to expand
Currency volatility - Setting up assembly overseas is a way of reducing the exchange rate risks
Country - Locating business activities overseas may provide cheaper labour, materials and finance
What are Porter’s Five forces?
Threat of New Entrant - How easy is it to join the market?
Bargaining Power of Suppliers - How much power does the suppliers have over the company?
Bargaining Power of Customers - How much power does the customers have over the company?
Threat of Substitutes - Something else that gives you the same outcome
Competitive Rivalry
What are the bases of benchmarking?
Internal benchmarking - Historical or budgetary comparison that considers performance over time
Competitive benchmarking - Comparison of performance with competitors in the same industry or sector
Activity benchmarking - Comparisons are made directly with best practice inter-industry
Generic benchmarking - Benchmarking against a conceptually similar process
The 9 Ms
Men and women - availability, mix, cost, know-how, culture
Money - availability of capital, ability to raise it, liquidity
Machinery - physical assets, capacity, efficiency
Materials Suppliers - innovation, price, quality
Markets - how and where we sell, distribution channels
Management - general competence of the board
Methods - processes used and intellectual property such as patents
Make-up - organisation structure and culture
Management Information Systems - strategic use of IT
What is the BCG matrix?
High Relative market share and High Rate of market growth - Star
High Relative market share and Low Rate of market growth - Cash Cow
Low Relative market share and High Rate of market share - Question Mark
Low Relative market share and Low Rate of market share - Dog
What is a SWOT analysis?
S - Strengths
W - Weaknesses
O - Opportunities
T - Threats
What is the Ansoff growth matrix?
Existing product in an existing market - Market Penetration (least risky)
Existing product in a new market - Market Development
New product in an existing market - Product Development
Existing product in a new market - Diversify (most risky)
What is the SAF model?
S - Suitability - How does the strategy fit with our current position and outlook? Should we?
A - Acceptability - Will our stakeholders support the strategy? Will stakeholders allow it?
F - Feasibility - Is the strategy realistic given our resources, competencies and technology? Can we do it?
The Value Chain
Way of visualising an organisation
Support activities:
- Firm Infrastructure
- Technology Development
- Human Resource Management
- Procurement
Primary activities:
- Inbound logistics
- Operations
- Outbound logistics
- Marketing & sales
- Service
The 7 marketing Ps
Product
Place
Promotion
Price
People
Processes
Physical evidence
Lewin/Schein Iceberg Model
Three-stage model of change
- Unfreeze - existing behaviour
- Move - making the change
- Refreeze - consolidate and reinforce
Gemini 4R framework
Aims to cover all the important components of the organisations identity.
For planned changes
- Reframe - What does the organisation stand for?
- Restructure - Change to the organisation’s structure
- Revitalise - Find a good fit with the environment
- Renewal - Ensure support for the change
Lewin’s Force Field Analysis
Technique to visualise the strength of driving and restraining forces that can either move an organisation to its desired state or keep it where it is.
Driving forces (pushes you to the ideal position):
- Legislation
- Quality increases
- New leadership
- Technological changes
Restraining forces (pushes you back to current position):
- Cynicism - ‘just another fad’
- Concern for jobs
- Complexity
- Size of the task
TARA Model
A model used to look at different ways in which a business can manage a risk.
- Transfer (Insurance, Financial hedging, Pass risk up or down the supply chain)
- Accept (Do nothing about it and accept it will happen)
- Reduce (Prevent (fire safety produces), Detect (fire detection system), Correct (sprinkler system), Direct (instruct on use of fire extinguishers)
- Avoid (Change the scope to remove the risk, Abandon the project)
3 Es
When looking at not for profit governance use the 3 Es
- Efficiency
- Effectiveness
- Economy
Break-even output
Total fixed costs / contribution per unit
Margin of Safety %
Planned sales - breakeven sales / planned sales
Output to hit a target profit
Total fixed costs + Target profit / Contribution per unit
The shamrock organisation
The core of essential executives and workers supported by outside contractors and part time help
- Professional core (permanently employed staff)
- Contractual fringe (external providers that undertake non-core activities)
- Flexible labour force (temporary and part time workers)
- Customers (enabled to execute some tasks themselves that may have once been done by an employee e.g self service)
Price Elasticity of demand
The measure of how far demand for a good will change in response to change in its price
Formula for price elasticity of demand
% change in demand / % change in price
PED < 1 is inelastic (same level of demand regardless of price e.g petrol)
PED > 1 is elastic (must be sold at a fixed price, if price increases no sales will be made e.g coffee)
PED = 1 is no overall effect on total revenue
Pricing decisions
Different approaches when setting prices for new and existing products and product ranges
- Market Skimming
- Penetration Pricing
- Promotional Prices
- Everyday Low Prices
- Product Line Pricing
- Captive Product Pricing
- Predatory Pricing/ Dumping
- Psychologic AI Pricing
- Value Pricing
Balanced Scorecard
Financial perspective - How do we look to shareholders?
Customer perspective - How do customers see us?
Internal business perspective - What must we excel at?
Innovation and learning - Can we continue to improve?
CSFs
Critical Success Factors
- those things in an organisation that must ‘go right’ or ‘be done well’ for it to succeed e.g for a college good pass rates
KPIs
Key performance indicators
- a numerical expression of something that can be measured, which demonstrates the achievement of a CSF e.g for college 80% first time passes
Porter’s Diamond
Management developing strategy in global environment to understand the advantages they have over firms from other countries
- Factor Conditions - What resources in the country? (basic factors - natural resources and advanced factors - highly educated personnel)
- Demand Conditions - What do local people want? (some companies have only once served local market)
- Related and Supporting Industries - Closer the same industry the higher demand of materials (competitive success is linked to local proximity (e.g no language barriers) and development of expertise)
- Strategy, Structure and Rivalry - structure refers to certain national cultural factors, strategy concerns how companies have managed their financing and rivalry allows the company to better themselves
