models

• SWOT ANAYLSIS

  S - strengths, cash inflow

  W - weakness, large amounts of borrowed money

  O - opportunites, growth

  T - threats, being taken over by competitor

  
  

  - method of strategic anaylsis considers internal and external envrioment

  - from this you can develop a strategy, build on strengths, reduce weaknesses and protect from threats
• benefits and weaknesses of SWOT

  benefits

  - low cost

  - straightforward

  - caan be used in different functions eg marketing

  - assist managers discussions

  
  

  weaknesses

  - unlikely to offer solutions

  - doesn't judge how important they are

  - only as good as the data they are based on
• core competencies

  - Prahalad + Hamamal

  - unique abities that a business posesses that provide it with competitive advanatages

  - its a combination of knowledge, production skills and technology

  - people are willing to pay more if they feel as if they can't get it from anywhere else

  - shouldn't be easy to replicate

  - MICROSOFT use it using expertice IT products

  
  

  HOWEVER

  - doesn't fit rapid change, can't meet changing demand, most companies outsorce
• Kaplan and Nortons balance scorecard

  - planning + managment strategy designed to make business activities to the aspirations set

  - measures performance

  
  

  has 4 catagories

  - the customer perspective ( loyalty )

  - internal perspective

  - innovation, learning and improvment

  - financial objectives

  
  

  looks at all aspects of the business not just financial
• Elkingtons triple bottom line

  considers more than financial importance, looks into stakeholder perspective rather than shareholder, looks into social responsibilty

  
  

  People - health + safety, offering fair pay, fair trade

  profit - help sustain broader community

  planet - reduce carbon emmisions, quantity of waste, using renewble energy sources, sustainble

  
  

  emphasises businesses strengths and weaknesses, makes managers think of impacts, however some aspects can't be translated into financial terms.
• CSR

  corporate social responsibility - should behave in a good way eg giving employees job security

  
  

  1. economic - should be profitiable

  2. legal - laws obeyed

  3. ethical - morally right

  4. philantropic - impact on lives
• porters 5 force model

  sample framework for assesing the competiton

  
  

  importance to managers

  exisiting - help define strategy, postition themselves, align employees

  potential - help decide wether its worth entering the market

  1. power of suppliers, can they increase their price, can offer to merge

  2. power of buyers, can they drive. a good bargain, strategies - diffrentiate, new customers

  3. threat of substitutes

  4. threat of new entrants, how easy is it for them to enter the new market, are their barriers, if it is easy need to chnage ideas in order to give yourself a comp advanatge, eg lower prices, create brand loyalty

  5. competitive rivalry, how much comp, strategies improve marketing
• what are economies of scale

  a proportionate saving in costs gained by an increased level of production.

  
  

  purchasing economies - can purchase more, more power over suppliers as they rely on you more, more bargaining power

  tecnological scale - can spread cost of technology over business, use more efficiently

  finiancial - more assets, bank more willing to lend
• grieners 5 phases of growth

  highlights stages of growth a business goes through

  
  

  phase 1 - growth through creativity

  leadership crisis

  phase 2 - growth through direction

  autonomy crisis

  phase 3 - growth through delegation

  control crisis

  phase 4 - growth through collaboration

  red tape crisis

  phase 5 - growth through alliances

  internal growth crisis
• different types of intergration

  verticle - joins at diff stage of production eg joining with supplier

  
  

  horizontal - join at same stage, allows them to share facilities

  
  

  conglomerate - joins with business in diff industry
• bartlett and ghosal

  - examines different approaches to managing businesses that operate in different countries

  - international strategy - An international strategy occurs when there are similarities between markets and little gains from globally integrating. The result is a business operating abroad but run very much from the home country. The head office and main decisions will be based at home.

  - multi domestic strategy - A multi-domestic strategy occurs when there are considerable variations between market demands and few benefits from globally integrating. The result will be a portfolio of relatively independent companies running themselves and producing for their own markets.

  - global startegy - international to global

  - transantional strategy - A transnational strategy occurs when there is pressure to meet local needs and also benefits from integrating globally. The organisation is regarded as a network with each subsidiary given responsibility appropriate to its capabilities. There is a balance of centralisation and decentralisation and a culture of sharing within the global organisation. Staff move around the business globally which helps build shared values and shared knowledge.
• lewins force field anaylsis

  - managers should constantly be pushing for chnage

  - forces pushing for change

  need to keep up with comp

  increasing customer complaints

  poor performance

  
  

  resisting change

  - lack of finance

  - ressitance from shareholders

  
  

  for change to actual occur the balance of these forces must change

  
  

  pressure for chnage can be internal and external
• Hofstede's national cultures


  - diff between cultures of diff countries

  
  

  - individualism vs collectivism, extent to whihc individuals should look after themselves rather than be team players

  - power distance, low power structure suits decentralised business which is where managers allow subordiantes to make decision, low PD is good for innovation, high PD accepts centralised strucutres

  - long term orientation, how society deals with present / future issues, low means traditions are maintained more resistance to change, high means pragmatic decesion making

  - masculinity vs feminity, masculinity money and assertivness, fenimity, caring for others

  - uncertanty avoidance, tolerance for ambiguity, low number means they are accepting

  
  

  highglights difficulties of moving overseas and problems with mergers and takeovers as if there are clashes in the way each business do things it may cause a conflict of interest also can help global businesses work together
• blake mouton grid


  country club ( 1,9 ) focus on people

  produce of perish ( 9,1 ) emphasis on task

  improverished ( 1,1) low concern for task and people

  middle of road ( 5,5 ) some focus on task and people

  team leadership ( 9,9 ) high focus on task + ppl
• Tannenbaum Schmidt Continuum


  An analytical tool to assess management style based on amount of authority delegated by managers

  
  

  1 - tells authortrian, no input in decesion making, not very motivating, good for a small team which lack skills

  2 - sells, sell decesion making more input

  3 - suggest, ask questions

  4 - consults make tentative decesions

  5 - joins explain issue final say from manager, good for decesions which need expertise from different areas, slow

  6 - dellegates - trust, motivating, managers explain and sub make decesion

  7 - abdicates, subs identify problem and solve it

  
• different types of managemnet styles

  autocratic - info and decesion making are kept at the top of the hierarchy, not much delegation, close supervision

  democratic - decesions agreed by majority

  laissez fair - leader has minimal input, self motivated
• income elasticty expalained


  % change in demand / % change in income

  
  

  - if its a negative can mean that when income increases demand falls because they swap to other more expenisve alternatives

  - if income falls demand increases, people come back to the cheaper option, works for infereior goods with lots of alternatvies

  - less than 1 is inelastic

  - more than 1 - elastic
• boston matrix


  Analyses all of the firm's products in terms of their market share and the growth of the market

  
  

  Dog - low share, slow growth

  cash cow - high market share, slow growth, well established eg heinz beans

  problem child - fast growth, small market share, may not turn out well

  stars - fast growth, high market share

  
  

  identifys when managers should worry
• ansoff matrix


  - how it competes with rival terms of product and market

  
  

  - market penetration, existing product + market

  least risk, increase market share by promotion

  not very rewarding

  
  

  - product development

  exisiting markets, new audience

  medium risk

  same audience, brand loyalty, still requires market research

  
  

  - market development

  existing products, new markets

  eg moving abroad, med risk

  core competicies

  advertising

  
  

  -diversification

  new market and product

  market research and product development needed therefore high costs

  amazon, wants to grow and please stakeholders

  
• experience curve


  - as experience in production improves so does efficiency, therefore costs per unit decrease, gives cost advantages ( porters generic ) , can lower prices and increase market share

  - can lead to monoploys, then eventually increase prices

  - gain more economies of scale

  
  

  increases in efficiency from experience

  - labour efficiency, less mistakes

  - labour specilaisation, faster rate

  - advances in capital

  - production methods, optimised to suit business

  - input mix, reduce cost raw materials
• Kotter and Schlesinger's Reasons for resistance to change


  solutions and methods to overcoming resistance to change

  
  

  what makes poeple resistant

  
  

  - self interest, only care about the impact on themselves, more work?

  - trust issues or misunderstanding

  - different assesment

  - low tolerance for change

  
  

  how to overcome these reasons

  
  

  - education + communication

  can explain why change is neccasery and clear up any mis understadning

  this is long term so depends how quickly the change is needed

  
  

  - partipation + involvement

  get them involved so there is more willingness

  give them a sense of ownership

  may slow process down, however may provide extra skills, stakeholder anaylsis, high power and interest

  
  

  - facilaition + support

  low tolerance to change, fear the change

  support them so they can cope

  costs, expensive to do training

  is it necessary for them to get on board

  
  

  - negotitation + agreement

  may lead to a different change from what you wanted

  
  

  - manipulation + co option

  offer rewards

  
  

  - coercion

  force it through, make it happen, distract them
• stake holder mapping


  internal - owners, managment, employees

  external - local community, gov, suppliers

  
  

  managers make change, manage relationships, manage each stakeholder relationship differently based on power and interest

  
  

  high power, low interest - keep satisfied, no resistance, no impact

  high power, high interest - key players, most effort, manage closely

  low interst, low power - minimal effort, monitor

  high interest, low power - keep informed, perhaps consult
• market mapping


  - Analyses market conditions to identify the position of one product or brand relative to others in the market in terms of given criteria

  
  

  - looks at gaps in the market, do market research on all gaps and see wether itd be successful, find gap enter it low competiton, more revenue

  
  

  - eg airlines, lots of high quality and high cost airlines so rynair came into low costs and low quality, extremely popular

  
  

  pros - identify gaps, new business get initial sales

  identify areas that are oversaturated, avoid making poor decesions

  simply tool to anylse competition

  enocurages market research, reduce risk

  
  

  cons - not guarenteed sucess

  only two variables

  depends on who did the map, may not be basing it on stats

  poor accuracy leads to poor decsions leads to waste in cash
• hackman and oldham - job design


  core characterstics

  - skill variety, is it repetative

  - task identity, clear focus?

  - task significance, understand why the job matters

  work become more meanigful - better motivation

  - autonomy, provides responsibility, better quality

  - feedback, understand how well they are doing, increase satisfaction

  
  

  psyhcological states

  - Experienced meaningfulness of the work, this is the extent to which people believe that their job is meaningful, and that their work is valued and appreciated.

  - Experienced responsibility for the outcomes of work, This is the extent to which people feel accountable for the results of their work, and for the outcomes they have produced.

  - Knowledge of the actual results of the work activity, This is the extent to which people know how well they're doing.
• Herzberg's Two-Factor Theory


  - hygeine factors - outside the job

  aspects of work that if present prevent the workers from being disatisfied

  working conditions

  basic pay

  company procedures

  wont be disatisfied

  
  

  - motivators, inside the job

  motivate the workers

  training and development opportunities

  responsibilty

  leads to them being motivated, maslows heirarchy of needs

  
  

  1. hygeine factors in place

  2. then select correct motivators
• kaplan + norton balance scorecard


  - looks at overall business

  
  

  finance - how do we look like to shareholders, objectives - improve liquidity, what is the ROCE and sales growth

  
  

  customer - how do we look like to customers, sales from new products, loyalty objective, increase 'on time delivery'

  
  

  internal business process performance - more product introductions, obj reduce labour turnover

  
  

  learning and growth - continue to improve, product life cycle lengthen generate more sales

  
  

  to note

  - gives manager clear idea of strategy, find where you stand, know where you need to improve, put targets in place
• bowmans strategic clock


  - positions strategies of projects in terms of percieved added value and price

  
  

  1. low price, low value

  huge volume, econies of scale, inferior goods

  
  

  2. low price, cost leadership, increase efficiency, normal goods

  
  

  3. hybrid, modest prices, high value

  good quality, good customer base, good pricing

  
  

  4. diffrentiation - medium price, highest value

  within mass markets

  
  

  5. focused diffrentiation, high price, high value

  narrow segment, eg super cars

  
  

  6 / 7 / 8. destined to fail, high price low value unless monoply
• lewins force field anaylsis


  chnage managment model, forces for and against change

  
  

  driving forces

  - net incomes falling

  - higher customer complaints

  - increased rivals

  
  

  restraining forces

  - trade unions

  - employees being against it

  - goverment

  
  

  need to find out which sre stronger, if driving forces are stronger more liekly change will occur
• strategic drift


  Occurs when the strategy of the business no longer matches with the environment in which it operates, PESTLE is the reason for change

  
  

  the changes needed in order to keep up with this change

  phase 1 - incremental change, enviroment change

  phase 2 - strategic drift

  phase 3 - flux, they recognise the change but uncertain on how to fix it, the gap represents they have lost their competitive advanatge

  phase 4 - recognise its changed, transofrmational change otherwise business will be finsihed, failure examples eg blockbuster
• price elasticty of demand


  - price inelastic

  where % change is less than 1 due to chnage in demand being low, not effected as much from change in price

  for products like neccesaties eg petrol, addictions like cigarettes and products with little subs

  
  

  - price elastic

  bigger chnage, more than 1

  for luxury products, goods with lots of subs in a comp market