1
Q
What is Mendelow’s Matrix?
A
Show’s how different key players should be treated depending on their level of power and level of interest.
2
Q
Mendelow’s Matrix: High Power and Low Interest?
A
Keep satisfied.
3
Q
Mendelow’s Matrix: High Power and High Interest?
A
Key player.
4
Q
Mendelow’s Matrix: Low Power and High Interest?
A
Keep informed.
5
Q
Mendelow’s Matrix: Low Power and Low Interest?
A
Minimal effort.
6
Q
What are the 4 parts of Porter’s Diamond? (Source of competitive advantage for a country)
A
- Demand Conditions.
- Strategy, Structure and Rivalry.
- Factor Conditions.
- Related and Supporting Industries.
7
Q
What is meant by Demand Conditions in Porter’s Diamond? (2)
A
- More demanding local customers=innovative firms.
2. Trend-setting local consumers=anticipate future global trends.
8
Q
What is meant by Strategy, Structure and Rivalry in Porter’s Diamond? (2)
A
- Prevalent strategies and structures=advantages in particular industries.
- Strong domestic rivalry=efficient firms.
9
Q
What is meant by Factor Conditions in Porter’s Diamond?
A
Supply side factors. (human/physical resources, capital, knowledge, infrastructure).
10
Q
What is meant by Related and Supporting Industries in Porter’s Diamond? (2)
A
- Proximity of supply=reduced lead times and carriage costs.
- Proximity=knowledge sharing which=innovation.
11
Q
What are Porter’s Five Forces? (Current position of an industry)
A
- Threat of New Entrants.
- Threat of Substitutes.
- Power of Suppliers.
- Power of Buyers.
- Competitive Rivalry.
12
Q
What are Kay’s Core Competencies? (CSF)
A
- Competitive Architecture.
- Innovative Ability.
- Reputation.
13
Q
When discussing Kay’s Core Competency of Competitive Architecture what does it refer to? (CSF)
A
Relationships within and around a business.
- Internal architecture.
- External architecture.
- Network architecture.
14
Q
Explain internal architecture. (Kay’s Competitive Architecture) (CSF)
A
Relationships with the employees.
15
Q
Explain external architecture. (Kay’s Competitive Architecture) (CSF)
A
Relationships with suppliers and customers.
16
Q
Explain network architecture. (Kay’s Competitive Architecture) (CSF)
A
Relationships between collaborating firms.
17
Q
When discussing Kay’s Core Competency of Innovative Ability what does it refer to? (CSF)
A
The ability to create and develop new ideas and products.
18
Q
What are the 9Ms of a Resource Audit? (CSF)
A
- Machinery and Materials.
- Management and Management Information.
- Makeup and Markets.
- Methods and Money.
- Men/Women.
19
Q
What are the 4 Support Activities in Porter’s Value Chain?
A
- Firm Infrastructure.
- Human Resources.
- Technology Development.
- Procurement.
20
Q
What are the 5 Primary Activities in Porter’s Value Chain?
A
- Inbound Logistics.
- Operations.
- Outbound Logistics.
- Marketing and Sales.
- Service.
21
Q
What are the 5 stages of a Product Life Cycle?
A
- Development
- Introduction.
- Growth.
- Maturity.
- Decline.
22
Q
What are the two factors that decide the position of a product on the BCG Matrix?
A
Market Growth and Market Share.
23
Q
BCG Matrix: High Growth and High Share?
A
Star.
24
Q
BCG Matrix: High Growth and Low Share?
A
Question Mark.
25
BCG Matrix: Low Growth and High Share?
Cash Cow.
26
BCG Matrix: Low Growth and Low Share?
Dog.
27
Expand on what a Star is.
In the short term these require high capex to maintain market position but promise high returns in future. BUILD.
28
Expand on what a Question Mark is.
Either high capex to increase market share or end them.
29
Expand on what a Cash Cow is.
Stars become Cash Cows, little capex for high income. Use to finance stars.
30
Expand on what a Dog is.
May have once been cash cow, now reap little profit. Tend to be cash traps that tie up funds and provide poor ROI.
31
What are Porter's 4 Generic Strategies?
1. Cost Leadership.
2. Cost Focus.
3. Differentiation.
4. Differentiation Focus.
32
What are the two factors that decide the position of a strategy in Ansoff's Matrix?
New/Existing Market and New/Existing Product.
33
Ansoff's Matrix: Existing Market and Existing Product?
Market Penetration-
| Price cuts, effective marketing, small product improvements.
34
Ansoff's Matrix: Existing Market and New Product?
Product Development-
| R&D, acquire rights to make products, buy in and re-badge, joint developments.
35
Ansoff's Matrix: New Market and Existing Product?
Market Development-
| New customer segments, industrial vs consumer, new regions, foreign markets.
36
Ansoff's Matrix: New Market and New Product?
```
Diversification-
Related diversification (vertical integration) and unrelated diversification (conglomerate diversification)
```
37
Expand on what the Threat of New Entrants is in Porter's Five Forces.
Depends on the barriers to entry:
Economies of scale, static markets, brand loyalty, investment requirements, switching costs, distribution channels, patents, raw material access.
38
Expand on what the Threat of New Substitutes is in Porter's Five Forces.
E.g instead of going to an estate agent for a bigger house you might go to a builder and an architect.
39
Expand on what the Power of Suppliers depends on in Porter's Five Forces.
Suppliers bargaining power depends on:
Number of suppliers, barriers to entry for new suppliers, diversity of suppliers customer base, importance of the supplied product, specialisation of product, switching cost.
40
Expand on what the Power of Buyers is in Porter's Five Forces.
Customers bargaining power depends on:
Quantity customer buys, importance of product to customer, switching cost, specialisation of product, profitability of customer, ability to bypass/take over supplier, price awareness of customer/skill of purchasing staff, importance of product quality to customer.
41
Expand on what the Competitive Rivalry is in Porter's Five Forces.
Intensity of competition depends on:
Rate of market growth, level of FC, cost of switching, economies of scale, uncertainty of rival's actions, barriers to exit (long-term exit, redundancy pay, effect on group).
42
Expand on what the Machinery and Materials is in the Resource Audit.
- Age, condition, utilisation rate, value, replacement, technology.
- Source, suppliers, waste, new materials, cost, availability.
43
Expand on what the Management and Management Information is in the Resource Audit.
- Size, skills, loyalty, career progression, structure.
| - Ability to generate and disseminate ideas, innovation, IT systems.
44
Expand on what the Makeup and Markets is in the Resource Audit.
- Culture and structure, patents, goodwill, brands.
| - Products and customers.
45
Expand on what the Methods and Money is in the Resource Audit.
- How are activities carried out?
| - Credit and turnover periods, cash surpluses/deficits, short/long term finance, gearing.
46
Expand on what the Men/Women is in the Resource Audit.
Number, skills, wage costs, proportion of total costs, efficiency, labour turnover, industrial relations.
47
Expand on what the Firm Infrastructure is in Porter's Value Chain.
Planning, finance, quality control.
48
Expand on what the Human Resources is in Porter's Value Chain.
Recruitment, training, developing and rewarding people.
49
Expand on what the Technology Department is in Porter's Value Chain.
Product design, improving processes and/or resource utilisation
50
Expand on what the Procurment is in Porter's Value Chain.
Acquiring the resource inputs into the primary activities.
51
Explain what the Introduction stage of the Product Life Cycle is.
New products are generally slow to take hold and are likely to make losses due to high output costs (no economies of scale, high promo expenses).
52
Explain what the Growth stage of the Product Life Cycle is.
If accepted, sales of the product will rise more sharply, making profit and reducing unit costs. Competitors may be drawn into the market.
53
Explain what the Maturity stage of the Product Life Cycle is.
Most companies in the market are in the mature stage, where growth is slower and profits are good. A successful product would experience his as the longest stage of its life.
54
Explain what the Decline stage of the Product Life Cycle is.
Eventually sales begin to decline, causing fierce competition between producers. Those that stay in the market seek to prolong the life by modifying or exploring new markets. Some firms keep on a declining product to support complementary products.
55
Explain Porter's Generic Strategy of Cost Leadership.
Obtain cheaper materials, hire cheaper labour, achieve economies of scale, minimise overheads.
56
Explain Porter's Generic Strategy of Cost Focus.
Market segmentation, operate in niche markets, focused marketing, operational efficiency.
57
Explain Porter's Generic Strategy of Differentiation.
Perceived quality, branding, customer service, range of products.
58
Explain Porter's Generic Strategy of Differentiation Focus.
Market segmentation, operate in niche markets, focused marketing, specialisation.
59
What is Market Penetration? (Ansoff's Matrix)
Improving competitive advantage, marketing strategies, acquiring a competitor, lack of diversification.
60
What is Market Development? (Ansoff's Matrix)
Identify new market segments, may need to create customer awareness, market research may be needed, risk of not understanding the market.
61
What is Product Development? (Ansoff's Matrix)
Invest in R&D, existing distribution channels amy be used, new competences may need to be developed, risk of products failing.
62
What is Diversification? (Ansoff's Matrix)
Spread risk, can be related (vertical) or unrelated (horizontal), lack of market knowledge, risk of products failing.
63
What are Gemini's 4 Rs?
- Reframing.
- Restructuring.
- Revitalising.
- Renewal.
64
What is Reframing? (Gemini's 4 Rs)
- Create the will and desire to change.
| - Create a vision for where the organisation is going.
65
What is Restructuring? (Gemini's 4 Rs)
-Aligns the business with the new struture.
66
What is Revitalising? (Gemini's 4 Rs)
- Secures a good fit with the environment.
| - Achieves market focus, invents new businesses, changes the rules of competition by exploiting technology.
67
What is Renewal? (Gemini's 4 Rs)
-Ensures the people in the organisation support the change process and acquire the necessary skills ton contribute to it.
68
What are the Big Data 4Vs?
- Volume.
- Velocity.
- Variety.
- Veracity.
69
What is Volume? (Big Data)
The amount of data that will be processed.
70
What is Velocity? (Big Data)
The speed at which the data will be incoming.
71
What is Variety? (Big Data)
The different types of data that will require handling and storage.
72
What is Veracity? (Big Data)
Whether the information received is accurate and reliable.
73
What are the 5 Pricing Strategies?
- Penetration Pricing.
- Price Skimming.
- Price Discrimination.
- Perceived Quality/Premium Pricing.
- Going Rate.
74
Give an example of Penetration Pricing.
A new newspaper.
75
Give an example of Price Skimming.
Day 1 of Xbox Series X (starts at £450 then slowly drops).
76
Give an example of Price Discrimination.
First vs Second class rail ticket.
77
Give an example of Perceived Quality/Premium Pricing.
Sports car.
78
Give an example of Going Rate.
Petrol/diesel.
79
What are the 4Cs of Pricing?
- Cost.
- Customers.
- Competitors.
- Corporate Objectives.
80
What does Cost in the 4Cs of Pricing relate to?
How much contribution is required to turn a profit?
81
What does Customers in the 4Cs of Pricing relate to?
How will the proposed price affect customers' demand?
82
What does Competitors in the 4Cs of Pricing relate to?
How are competing products currently priced, and how will competitors react to your pricing level?
83
What does Corporate Objectives in the 4Cs of Pricing relate to?
Are there any specific requirements in terms of ROI, profit targets, etc?
84
What are the 7 Ps that make up the Marketing Mix?
- Price.
- Product.
- Promotion.
- Place.
- People.
- Processes.
- Physical Evidence.
85
What are Mintzberg's building blocks?
- Strategic apex.
- Technostructure.
- Middle Line.
- Support Staff.
- Operating Core.
86
What are the 2 variables in Lynch's Expansion Matrix?
- Internal/External Development.
| - Home Country/Abroad
87
What are the 4 parts to the Balanced Scorecard?
- Financial Perspective.
- Customer Perspective.
- Internal Business Perspective.
- Innovation and Learning.
88
What is the definition of Marketing?
The management process that identifies, anticipates and supplies customer needs efficiently and profitably.
89
What are the 4 parts of Handy's Shamrock?
- Contractual Fringe.
- Operating Core.
- Flexible Labour Force.
- Customers.
90
What are the 3 steps of Lewin and Schein's Iceberg model? (Change Management)
1. Unfreeze
2. Move
3. Refreeze
91
What is involved in "Unfreezing"? (Lewin and Schein's Iceberg model)
A trigger, a challenge of existing behavior, involvement of outsiders, or alteration to power structure.
e.g. Appointing an external consultant, education, negotiation.
92
What is involved in "Moving"? (Lewin and Schein's Iceberg model)
Means making the changes, communicating and encouraging adoption of the new situation.
e.g. Presentations to communicate change, training, instillation of equipment.
93
What is involved in "Refreezing"? (Lewin and Schein's Iceberg model)
Means consolidation and reinforcement of the new situation.
| e.g. Communicating success, promote benefits, reward conformity.
94
What does the SMART acronym stand for? (Objectives)
```
Specific
Measurable
Achievable
Relevant
Time bound
```
95
What does the PESTEL acronym stand for? (Opportunities and Threats from the macro-environment)
```
Political
Economic
Social and demographic
Technical
Ecological/environmental
Legal
```
96
What are Critical Success Factors (CSF)?
A small number of key goals vital to the success of an organisation i.e. "things that must go right". (See 9Ms and Kay's competencies)
97
What's the difference between Forward Vertigal Integration and Backward Vertical Integration?
Forward- Moving towards the consumer (buy retail stores or own delivery vans).
Backward- Moving into the supply chain (Amazon buying cardboard box factories).
98
If PED is < 1?
Inelastic demand (Not sensitive to price)
99
If PED is >1?
Elastic demand (Price sensitive)
100
PED formula?
(Q2-Q1)/Q1
| (P2-P1)/P1
101
What is an Entrepreneurial Structure?
1 boss above everyone else.
102
What is a Functional Structure?
Board of directors above different departments (Production, Finance, Sales etc).
103
What is a Divisional Structure?
Board of directors above separate divisions.
104
What is a matrix structure?
Separate functions that collaborate on different projects together.
105
What are the pros of decentralisation?
Management can concentrate on strategy, better local decisions, better motivation, quicker responses and flexibility.
106
What are the cons of decentralisation?
Loss of control, dysfunctional decisions, inexperienced managers, training costs, duplication.
107
How do you calculate RI?
Profit - (capital employed * % cost of capital)
108
What are 4 Good Corporate Governance Practices?
1. Chairman ≠ Chief Executive
2. Use of independent NEDs
3. Audit, remuneration and nomination committees
4. Risk management
109
What are the 3 headings of a risk register?
Risk, Likelihood & Impact, Risk Management
110
What are 4 advantages of Acquisition?
1. Quicker.
2. Bypass barriers to entry.
3. One less competitor.
4. Synergies. (2+2=5)
111
What are 4 disadvantages of Acquisition?
1. High cost.
2. Culture clash.
3. Organic growth can be easier to control,
4. Reputation of target company?
112
Name the 4 Joint Development Strategies.
1. Joint Venture.
2. Strategic Alliance.
3. Licensing.
4. Franchising.
113
What is a Joint Venture? (Joint Development Strategies)
Contractual agreement between companies, often by setting up another separate company.
114
What is a Strategic Alliance? (Joint Development Strategies)
Looser agreement to share knowledge, technology or a business opportunity.
115
What is Licensing? (Joint Development Strategies)
The right to exploit an invention/ resource in return for a share of the profit.
116
What is Franchising? (Joint Development Strategies)
The right to exploit a business brand in return for a capital sum plus share of profits/turnover.
117
What are 3 key issues in any Joint Development Strategy?
1. Sharing risks and returns.
2. Possible conflicts.
3. Confidentiality,
118
What are 3 ways you can evaluate a strategy?
1. Suitability (Consistent with existing operations?)
2. Feasibility (Do they have the resources&capabilities?)
3. Acceptability (What will be the reaction of key stakeholders?)
119
Name 5 calculations for Financial Performance Measurement.
1. Revenue growth.
2. Average price per unit.
3. Changes in costs.
4. Gross margins.
5. Market share.
120
What are the 4 main categories of benchmarking?
1. Internal
2. Competitive
3. Activity (best in class)
4. Generic
121
Name as many parts of a business plan front to back.
1. Cover sheet
2. Contents
3. Introduction and terms of reference
4. Executive summary.
5. The market.
6. The product/service.
7. The management team
8. Business operations
9. Financial projections
10. Amount and use of finance required (possible exit routes)
11. Appendices
122
Explicit Knowledge vs Tacit Knowledge
Knowledge that the organisation knows it has.
vs
Undocumented, personal knowledge and expertise.
123
What are 5 cyber security threats?
1. Human threats.
2. Fraud.
3. Deliberate sabotage.
4. Viruses and other corruptions.
5. Denial of service. (NHS 2017)
124
What are the two parts of Lewin's Force Field Analysis? (Change Management)
1. Promote the driving forces.
| 2. Remove the barriers to change.
125
What are the 4 Categories of Change?
1. Tuning.
2. Planned.
3. Adaptation.
4. Forced.
126
What are the 3 Cultural Barriers to Change?
1. Structural Inertia. (Embedded systems are hard to change)
2. Group Inertia. (impact on group behaviour and norms)
3. Power structure (changes in the balance of power)
127
What are 6 Personal Barriers to change?
1. Habit.
2. Job security.
3. Effect on earnings.
4. Fear of the unknown.
5. Selective information processing.
6. Psychological contract.
128
What 4 elements should a mission statement contain? (Ashridge College Model)
1. Purpose (Why does the org exist?)
2. Strategy (What resources and competencies give the org an advantage?)
3. Policies (What standards and behavioural patterns are adopted?)
4. Values (What beliefs do the managers and employees share?)
129
What are the 3 parts of Sustainability?
1. Social (Impact on society)
2. Environmental (Use of sustainable resources)
3. Economic (Financial stability)
130
Define Corporate Responsibility.
The belief that a firm owes a responsibility to society.
131
4 reasons why to bother with Corporate Responsibility?
1. PR.
2. Self-regulation is cheaper than imposed regulation.
3. Attracts ethical investors.
4. Develops more rounded staff.
132
What are 4 advantages of international expansions?
1. Sales growth.
2. Extend product life cycle.
3. Spread risk.
4. Global image.
133
What are 4 risks of international expansion?
1. Lack of market knowledge.
2. Cultural differences.
3. Exchange rates.
4. Logistical issues.
134
What is the TARA model? (Risk Management)
Transfer, Accept, Reduce, Avoid.
135
What is Scenario Planning useful for?
Providing a long-term view of strategy, where a few key factors may influence success.
136
What's the TEF acronym for ethics?
Transparency, Effect, Fairness
137
What is the SMART acronym? (Objectives)
```
Smart
Measurable
Achievable
Relevant
Time bound
```
138
What 5 principles should a NFP follow?
```
Accountability
Consideration of stake holders
Openness and transparency
Appropriate board structures
Monitoring performance
```
139
How to evaluate a strategy? (SFA)
Suitability
Feasibility
Acceptability
140
What type of good sees more demand when it raises its price?
Veblen
BST
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