Unit 4 AOS 2 Flashcards

1
Q

List management strategies that respond to key performance indicators

A
staff training, 
staff motivation, 
change in management styles or management skills, 
increased investment in technology, 
improving quality in production, 
cost cutting, 
initiating lean production techniques 
redeployment of resources (natural, labour and capital)
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2
Q

list strategies to seek new opportunities both domestically and globally

A

New locations
Online Sales
Exporting
Differentiation

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3
Q

Define change leadership

A

refers to influencing or motivating people to work towards the achievement of business objectives through the process of implementing approaches that prepare an organisation undergoing transformation.

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4
Q

Why is leadership important during change?

A

Change –> resistance

Leadership prepares people for change + builds commitment to change + ensures approach is systematic and well considered

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5
Q

What are the attributes of effective leadership during change

A
  • build shared vision
  • provide ongoing communication
  • provide ongoing support
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6
Q

What factors are needed for effective leadership

A

Building and maintaining relationships with employees, management, shareholders and external stakeholders – build trust
Cultivating teamwork, coaching and mentoring
Developing talent within the organisation
Open communication

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7
Q

How do you select a management strategy to respond to KPIs

A
  • need to know aim

- need to know obstacles to acheiving aims

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8
Q

What KPIs would suggest staff training is required?

A

Increased customer complaints
Increased workplace accidents
Increased level of wastage
Decreased sales, market share, profit

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9
Q

What KPIs would suggest staff motivation strategies are required?

A

Level of staff turnover, rate of staff absenteeism, number of customer complaints, decline in rate of productivity growth

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10
Q

What KPIs would suggest a change in management styles and skills is required?

A

Staff turnover, staff absenteeism, rate of productivity growth

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11
Q

What KPIs would suggest investment in technology is required?

A

Rate of Productivity Growth

Net Profit

Number of workplace accidents

Number of sales/percentage of market share

Number of customer complaints

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12
Q

What KPIs would suggest improvement in quality in production is required?

A
Rate of productivity growth, 
number of sales, 
net profit figures 
percentage of market share
level of wastage
number of customer complaints
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13
Q

What KPIs would suggest lean production strategies are required?

A

Net profit, productivity, number of sales, level of wastage, percentage of market share, rate of productivity growth

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14
Q

What KPIs would suggest Cost Cutting is required?

A

Net profit figures

Levels of wastage

Rate of productivity growth

Number of sales

Percentage of market share

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15
Q

What KPIs suggests that redeployment of resources is required?

A

Net profit

Levels of wastage

Rate of productivity growth

Number of sales

Percentage of market share

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16
Q

How do you structure a response that asks you to explain how a strategy could be used to respond to KPI data?

A

identify strategy,
describe specifically how it could be used in the particular scenario (e.g. what training, what cost cutting, which resources, which lean management principles),
identify how it would address concerns in KPI data OR how it would enable continued improvement in KPI data

17
Q

How do you structure a response to a question that asks you to justify the use of a strategy to respond to KPIs?

A

select, identify data that led to selection, explain how strategy will address data (be specific)

18
Q

How do you evaluate the suitability of a strategy to respond to KPI data

A

Explain benefits of strategy - link to data
Explain limitations of strategy - link to data
Overall judgement with data from case study to support

19
Q

What are the advantages of using a new location to grow business opportunities?

A

Creates a physical presence in new geographical locations which can improve reputation + image
Increased sales and profit from new markets
Seasonal products can be sold during the opposing season in the northern hemisphere (Global Only)  can use any overproduction

20
Q

What are the disadvantages of using new location as a strategy to grow business opportunities?

A

Can be difficult to understand and cater for new market
Delivery can be time consuming depending on where manufacturing occurs
High set up cost + cost of researching new markets
Poor communication/language barriers lead to delays (global only)
Product or service may need to be modified to suit cultural norms (Global only)
Higher business uncertainty due to unstable political, social or economic conditions (global only)
Potential legal requirements and costs when exporting (global only)

21
Q

What are the advantages of using online sales to develop new opportunities?

A

Access to entire new market without the need for physical expansion
Seasonal products can be sold during opposing seasons (global only)
Accesses a large number of customers in a very short amount of time
Increases sales, profit and market share

22
Q

What are the disadvantages of using online sales?

A

Reduces face-to-face contact with customers – can lead to reduction in quality of service
Product may be lost or damaged during delivery
Lag time for delivery (particularly for global)
Can be costly to implement distribution network for online sales

23
Q

What are the advantages of using differentiation?

A

Creates customer loyalty because of unique features
Can charge premium prices
Increase in sales revenue because of niche markets or customers switching

24
Q

What are the disadvantages of using differentiation?

A

Can be difficult to prevent competitors from replicating
Higher investments in time and capital towards research to develop innovative products or improve service
Higher selling price can deter customers

25
Q

What are the advantages of using exporting?

A

Access to entire new market without the need for physical expansion
Access overseas markets with larger populations
Avoids time taken to set up new stores
Avoids costs of setting up new stores
Increases sales and profit from new markets

26
Q

What are the disadvantages of using exporting?

A

Product or service may need to be modified to suit overseas cultural preferences or legal requirements
Certain types of products can be affected during long transport times to overseas locations
May be hidden costs in meeting export regulations – e.g. tariffs and quotas
Necessary modifications and delivery costs may lower profit margins

27
Q

What is a learning organisation?

A

A learning organisation = a business that facilitates the learning of its employees and continuously transforms itself to adapt to changing environments  an organisation where individuals seek to continuously improve and achieve their desired results.

28
Q

What are the 5 disciplines required to be a learning organisation?

A

systems thinking, mental models, shared vision, team learning, personal mastery

ALL 5 disciplines must be present for an organisation to be considered a learning organisation according to Peter Senge (1990)

29
Q

What is systems thinking?

A

ability to understand the interrelationships between different areas of the business + the relationship between the business and industry and/or economy = evaluate business performance as a whole rather than separate units

30
Q

What is personal mastery?

A

encouraging individual development and learning through business activities  employees are committed to self-improvement and being life-long learners

31
Q

What is the discipline of mental models

A

challenging pre-existing assumptions and beliefs that people have about a business and its practices

32
Q

What is the discipline of shared vision

A

manager develops and promotes a mission that all employees can believe in  key is that it is not dictated to the employees

33
Q

What is the discipline of team learning

A

encourages individuals to combine strengths and abilities to grow together

How? Create opportunities for employees to work as a team – cross department teams can expand this further. Requires boundary crossing and openness (e.g. Quality Circles in TQM)

34
Q

If a company is a learning organisation and has all 5 disciplines what are the features of its culture?

A

balance long term and short term —> Forgo short term for long term
Focus on the teams capacity/collective
Cherish open culture - share errors = Prepared to be wrong
Design and implement feedback loops
Promote personal mastery
Plan for intelligent fast failure - create minimum viable product which is presented to customers early to collect info to improve
Steal best practices from other organisations
Cultivate common vision
Education happens as a side product of working together
Understand it might take some time to develop new approaches