Models

Question 1

PESTLE

Answer 1

Political, Economic, Social, Technology, Legal, Ecological

Question 2

Porter’s Diamond

Answer 2

National competitive advantages

FDRS

Strategy, structure and rivalry
Supply conditions (supply side - factor conditions)
Demand conditions
Related and supporting industries

Question 3

Mission statement covers?

Answer 3

Purpose
Strategy
Policies
Values

Question 4

Objectives of should be:

Answer 4

Specific
Measurable
Achievable
Relevant
Time bound

Question 5

Stakeholder analysis for not-for-profit organisations:

Answer 5

Primary objective: maximise benefit to target stakeholder

Benefits, maybe intangible and difficult to measure

Diverse range of stakeholders

Multiple objectives

Question 6

Mendelow’s Matrix

Answer 6

Interest high, Power high: need participation

Interest high, Power low: keep informed

Interest low, Power high: keep satisfied

Interest low, Power low: minimal effort

Question 7

Porter’s 5 Forces

Answer 7

Threats within a industry:

Threat of new entrants

• high growth and profit margins?
• few competitors?
• high barriers to entry?

Power of suppliers

• can supplier increase prices?
• supplier have bargaining power?

Competitive rivalry

• intense competition?

Power of customers

• small number of large customers?
• low product differentiation

Threat of substitute

• price elasticity of demand?
• different industries/sub industries

Question 8

Industry Life Cycle Model

Answer 8

Introduction - slow growth

Growth - rapid growth and popularity

Shakeout - growth falls

Maturity - long period of slow growth

Decline - sales volume fall

Question 9

9Ms

Answer 9

Men
Money
Management
Make up
Machinery
Methods
Markets
Materials
Management information

Question 10

Competencies (Kay’s sources)

Answer 10

How do you meet critical success factors?

CIR

Competitive architecture

• internal i.e. employees
• external i.e. suppliers
• network i.e. collaborating firms

Reputation

Innovative ability

Question 11

BCG Matrix

Answer 11

Star - market share high, market growth high

Cash cow - market share high, market growth low

Problem child/Question mark - market share low, market growth high

Dog - market share low, market growth low

Question 12

Porter’s generic strategies

Answer 12

Gain a competitive advantage:

Cost leadership
- economies of scale
- cheaper suppliers
- reduce labour

Differentiation (premium)

• branding
• innovation
• quality

Focus/niche

• identify customer
• choose approach

Question 13

Porter’s value chain

Answer 13

how business gains competitive advantage by breaking it down

Primary (LOLSS) :

Inbound logistics
Operations
Outbound logistics
Sales and marketing
Service

Secondary (PITH):

Procurement
Technology development
Human resource management
Infrastructure

Question 14

Harmon’s Process Strategy Matrix

Answer 14

Strategic importance high, complexity high: IMPROVE

Strategic importance high, complexity low: AUTOMATE

Strategic importance low, complexity high: OUTSOURCE

Strategic importance low, complexity low: AUTOMATE/OUTSOURCE

Question 15

Product Life Cycle Model

Answer 15

Development

Introduction

Growth

Maturity

Decline

Question 16

SWOT analysis

Answer 16

Used for corporate appraisal:

Strengths - internal

Weaknesses - internal

Opportunities - external

Threats - external

Question 17

Gap analysis

Answer 17

Why is there a gap?

How to fix gap?

Question 18

Ansoff’s Matrix

Answer 18

Market penetration: existing markets, existing products
- price cuts
- marketing
- innovation
- more sales of existing items

Product development: existing markets, new products
- R&D

Market development: new market, existing product
- new market for product
- foreign market
- consumer vs. industrial

Diversification: new market, new product
- vertical integration

Question 19

4 Goods P’s and 7 Service P’s

Answer 19

Controllable marketing variables to be adapted:

Product (unique selling point)

Promotion (advertising)

Place (distribution - direct vs indirect)

Price (pricing strategy)

People - Service (staff training/knowledge)

Processes - Service (efficiency)

Physical evidence - Service (tangible aspects of service)

Question 20

4 C’s of pricing

Answer 20

Costs: must be covered in long term

Customers: price sensitivity

Competition: monitor competitors actions

Corporate Objectives:
- price skimming
- penetration
- price discrimination
- going rate
- cost plus pricing

Question 21

Branding concept model

Answer 21

Premium: high price, high quality

Cowboy: high price, low quality

Bargain: low price, high quality

Economy: low price, low quality

Question 22

Handy’s Shamrock (flexible firm)

Answer 22

Flexible firm:

Professional core
Contractual fringe (outsourced)
Flexible labour force (temporary)
Customers

Question 23

Price elasticity of demand

Answer 23

% change in Q / % change in P

> 1 elastic
<1 inelastic

Question 24

Mintzberg’s building blocks

Answer 24

Ideology - values and beliefs

Strategic apex - higher management and planning

Middle line - management linking strategic and operating core

Operating core - basic work

Technostructure - technical expertise/specialists

Support staff - support operations (canteen, legal, tax)

Question 25

TARA Model

Answer 25

Transfer Avoid Reduce Accept

Question 26

Balanced scorecard

Answer 26

Performance indicators should consider: Financial perspective vs Innovation and learning Customer perspective vs Internal business perspective

Question 27

Lewin's force field analysis

Answer 27

For changes to occur: Driving forces must be stronger than barrier to change

Question 28

Barriers to change

Answer 28

Cultural barriers: - Structural inertia: imbedded systems - Group inertia: social behaviour and norms - Power structures: balance of power changes Personnel barriers: - Habit - Job security - Effect on earnings - Fear of the unknown - Selective information processing - Psychological contract

Question 29

Lewin's iceberg model

Answer 29

Change steps: Unfreeze - communication, education, participation, negotiation Move - train, installation of equipment, new contracts Refreeze - reinforce change, promote benefits, reward conformity

Question 30

Ethical issues

Answer 30

LESTIF Transparency Effect Fairness Legality Integrity or Honesty Self interest or Objectivity

Question 31

Organisations structures

Answer 31

Entrepreneurial Functional Divisional Matrix

Question 32

Actions for directors

Answer 32

- establish facts - seek legal advice/counsel - update stakeholders (stock market or otherwise) - disciplinary proceedings - change reporting lines - reconsider remuneration - perform or commission due diligence

Question 33

Independence in appearance and by fact

Answer 33

By fact - independent in actions but maybe not in perception By appearance - independent in actions and in perception

Question 34

Barriers to entry

Answer 34

Economies of scales Brand loyalty Capital requirements Patents Govt subsidies Access to distribution

Question 35

ROI formula

Answer 35

controllable profit / capital employed

Question 36

RI formula

Answer 36

Controllable profit - divisional capital employed * % cost of capital

Question 37

Cyber security risks

Answer 37

Denial of service Virus Hacking Sabotage (employees) Accidents

Question 38

Human Resource Management

Answer 38

RRRAT Recruitment Retention Appraisal Training Rewards

Question 39

Transfer pricing methods

Answer 39

Market value Cost Cost + Cost -

Question 40

Default strategic analysis

Answer 40

Cost Quality Risk

Question 41

4 V's of Big Data

Answer 41

Volume Veracity Velocity Variety