Unit 4 AOS 2 Flashcards
List management strategies that respond to key performance indicators
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)
list strategies to seek new opportunities both domestically and globally
New locations
Online Sales
Exporting
Differentiation
Define change leadership
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.
Why is leadership important during change?
Change –> resistance
Leadership prepares people for change + builds commitment to change + ensures approach is systematic and well considered
What are the attributes of effective leadership during change
- build shared vision
- provide ongoing communication
- provide ongoing support
What factors are needed for effective leadership
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
How do you select a management strategy to respond to KPIs
- need to know aim
- need to know obstacles to acheiving aims
What KPIs would suggest staff training is required?
Increased customer complaints
Increased workplace accidents
Increased level of wastage
Decreased sales, market share, profit
What KPIs would suggest staff motivation strategies are required?
Level of staff turnover, rate of staff absenteeism, number of customer complaints, decline in rate of productivity growth
What KPIs would suggest a change in management styles and skills is required?
Staff turnover, staff absenteeism, rate of productivity growth
What KPIs would suggest investment in technology is required?
Rate of Productivity Growth
Net Profit
Number of workplace accidents
Number of sales/percentage of market share
Number of customer complaints
What KPIs would suggest improvement in quality in production is required?
Rate of productivity growth, number of sales, net profit figures percentage of market share level of wastage number of customer complaints
What KPIs would suggest lean production strategies are required?
Net profit, productivity, number of sales, level of wastage, percentage of market share, rate of productivity growth
What KPIs would suggest Cost Cutting is required?
Net profit figures
Levels of wastage
Rate of productivity growth
Number of sales
Percentage of market share
What KPIs suggests that redeployment of resources is required?
Net profit
Levels of wastage
Rate of productivity growth
Number of sales
Percentage of market share
How do you structure a response that asks you to explain how a strategy could be used to respond to KPI data?
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
How do you structure a response to a question that asks you to justify the use of a strategy to respond to KPIs?
select, identify data that led to selection, explain how strategy will address data (be specific)
How do you evaluate the suitability of a strategy to respond to KPI data
Explain benefits of strategy - link to data
Explain limitations of strategy - link to data
Overall judgement with data from case study to support
What are the advantages of using a new location to grow business opportunities?
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
What are the disadvantages of using new location as a strategy to grow business opportunities?
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)
What are the advantages of using online sales to develop new opportunities?
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
What are the disadvantages of using online sales?
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
What are the advantages of using differentiation?
Creates customer loyalty because of unique features
Can charge premium prices
Increase in sales revenue because of niche markets or customers switching
What are the disadvantages of using differentiation?
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
What are the advantages of using exporting?
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
What are the disadvantages of using exporting?
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
What is a learning organisation?
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.
What are the 5 disciplines required to be a learning organisation?
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)
What is systems thinking?
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
What is personal mastery?
encouraging individual development and learning through business activities employees are committed to self-improvement and being life-long learners
What is the discipline of mental models
challenging pre-existing assumptions and beliefs that people have about a business and its practices
What is the discipline of shared vision
manager develops and promotes a mission that all employees can believe in key is that it is not dictated to the employees
What is the discipline of team learning
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)
If a company is a learning organisation and has all 5 disciplines what are the features of its culture?
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
