unit 10 Flashcards
flexible organisation
one that is able to adapt and respond relatively quickly to changes in external environment I order to gain and sustain its competitive position
benefits of flexible organisation
likely tom be efficient and responsive
-more likely ti respond to and meet changing customer needs and wants
-improved decision making
-more attractive place to work for the best people.
restructuring
flexible working
involves arrangements where there are a variety of options offered to employees in terms of working time, working location and pattern of working
positives of flexible working
saving on costs
-aids recruitment and staff retention
-take advantage of developments in technology
-meet employee legislation.
negatives of flexible working
loss of customer is key employees reduce their hours
- inability to substitute for certain skills of certain employees absent
-lower employee productivity.
zero hours contracts
allows employees to hire stand with no guarantee if work.
organic v mechanistic structures
organic- more flexible
mechanistic- traditional;
who is Kurt Lewin
what is Lewin’s force field analysis
there are forces driving change and forces restraining it.
for change to occur the driving force must exceed the restraint force.
internal forces that drive change
need for higher profits
-poor productivity
-lack of innovation
-need to change culture
-change of leadership
external forces that drive change
customer demand
-competition
-legaslation and taxes
-political environment
-economic conditions
-ethics and social value
-technological change
resistance to change
self-interest
-low tolerance for change and
-different assessment of the situation
-misinformation and misunderstanding
what is self interest in resistance to change
-is a powerful motivators, perceived threat of job security, status and financial position
Mnemonic for resistance to change
self interest
assessment issues
low
tolerance
misunderstanding
misinformation.
what are the big ways of overcoming resistance to change
education and communication
-participation and involvement
-facilitation and support
-manipulation and co-operation
-negation and bargaining
explicit and implicit coercion.
what is a strategy
is a crucial aspect of running a successful business. A defined plan of action that outlines the direction a business wants to take and defines how the plan will cascade through the organisation by allocation of resources.
what is an MVP
minimal viable product- least expensive product
Tesla case study
did not have an MVP, understand they need to succeed in lower economic bands.
first car $200,000- did not make profit
slowly dropping prices- $60,000
2022 most valuable brand value 75.94 billion
took control of supply chain, biggest barrier to entry- battery technology
invested in battery manufacturers
case study McDonald’s
increasing pressure from governments and other companies.
-2005 them introduced their healthy salad range.
Made up 2% of all McDonalds revenue.
had to innovate. the flavours of salads went to 3%.
-became unhealthy
-maybe they should have stuck with the healthy salads.- side salad
difficulties of strategic decisions
can be problems, data might be insufficient, inaccurate or invalid. Underlying patterns may not be obvious or may be missed
what is an emergent strategy
a strategy or pattern that develops over time in an organisation in the absence of a specific mission and goal
emerge over time as intentions collide with a and accommodate a changing reality
strategic drift
when a strategy of a business is no longer relevant to the external environment facing it
four stages of strategic drift
- incremental change,
- strategic drift,
- flux,
- transformational change or death
examples of strategic drift
VAT on private schools- schools put in place cost minimisation strategies
why does strategic drift take place
fails to adapt to a changing external environment
-what worked before does not work now
-complacency has set in -often built on previous success
-senior management deny there is a problem.
examples of businesses that suffered strategic drift
Kodak: failed to respond to rapid development and take up of digital photography- despite having created such technology
Nokia: Last dominant global market leadership in mobile phones by failing to respond to smartphone tech
My space- At one stage, failed to respond to changing social trends and lost leadership to Facebook.
why are contingency plans needed
always expect the unexpected
what is the risk in business
the possibility of loss or business damage
-a threat that many prevent or hinder the ability too achieves business objectives
types of ways of managing risk
risk management
contingency planning
crisis planning
examples of common day-to day risk management
marketing- over reliance on customers
-develop multiple distribution channels
-test marketing for new products
operations: hold spare capacity
quality assurance and control
Finance: insurance against debts
investment appraisal techniques
people: key man insurance- protect against loss of key staff.
Rigorous recruitment
what does contingency planning involve
preparing for predictable and quantifiable problems
-preparing for unexpected and unwelcome events.
examples of when they were needed
Toyota reached settlement of £1.2 billion settlement to end probe of accelerator problems.
evaluation of contingency plan
-not needed for everything
- Varys in terms of significance
how a business sets its strategic direction
vision
mission statement
objectives
goals
types of plans in business
strategic plan- overall direction os the business
business plan
operational plan
benefits of effective strategic marketing
clarify direction
ensure efficient use of business resources
-provide a way of measuring progress
-support effective decision making
-co-ordinate activities
-allocate responsibility
-motivate/guide people
