BU111: Analytical and KSF

what is a tool for outlining an implementation plan?

gantt chart

what does a GOOD solution include?

-feasible: identify constraints and complications and demonstrate that solution can be executed with given resources and context; forcefield analysis is useful for ensuring feasibility
-complete: identify the high level strategy and 2-3 key tactical elements needed to ensure it is successful
-effective: understand objectives of the situation in order to create a good design; every issue must be addressed for it to be successful

describe MECE

mutually exclusive, collectively exhaustive

mutually exclusive: no parts overlap with each other, make sure that alternatives are unique, ensures that you aren't doubling up on resources and are being efficient

collectively exhaustive: how the parts fit together to create a whole picture, reflects each part that builds on to the others

explain the case solution process

1. identify immediate issue and big question
2. identify objectives/aspirations/criteria
3. identify models needed for the big question
4. develop and evaluate hypotheses
5.propose good solution w implementation
6. identify risks, mitigation and contingency strategies
7.demonstrate impact

explain what underlying, immediate and secondary issues are

immediate issue: the specific issue that is being faced by the decision maker (the issue given at hand)

underlying issue: the root cause of the immediate issue, if it is solved, the immediate issue will most likely be solved as well

secondary issue: should always be acknowledged but are not necessary to solve

how is decision criteria used?

-will appear in given case in 2 ways
-will guide you when deciding between 2 options
-will describe the qualities of a good solution
-decision criteria is usually MECE

what are the 3 why's?

-a method to help you discover the root of the cause
-keep asking why until you find the base cause

what will a complete solution have?

3 levels of recommendation
-strategic: will identify what type of solution needs to be implemented
-tactical: 2-3 key components that execute the strategy
-operational: key actions needed to successfully execute tactical recommendation

T or F: execution of strategy will rarely go smoothly

T

what is a contingency plan?

plan outlining what to do if the risk still occurs

how do you deal with risks while planning?

-identify the risk of something going wrong
-determine if risks can be mitigated
-prioritize risks based on levels of impact

horizontal analysis vs. vertical analysis?

horizontal: changes in relevant items over time
vertical: is something really too big or small relative to revenues or profits?

what are the key success factors?

-products and services
-employees
-financial resources (centre)
-customers
-uniqueness
-innovation

describe employees relative to KSF

-organizations key resource
-employee commitment is key b/c they affect the quality of goods and services
-employee commitment is fostered through a positive work environment
-hire, train, motivate, retain

KPI for employees

-turnover rates and productivity
-leading indicator that employee is unsatisfied is absenteeism
-number of job applications you receive = how attractive you are as an employer

describe customers relative to KSF

-the target market
-validate and generate companys value
-determine growth and reputation
-amount of customers and amount of product purchased drives revenues
-satisfy customers by deciding the target market, understanding what they want and anticipate their needs to keep them loyal

KPI for customers

-market share: total market revenues that you earn
-share of wallet: what you earn from customers spending on your product
-net promoter score: likelihood that customers would recommend you

describe products and services relative to KSF

-reputation is largely based on what you produce and their features/qualities
-most customers understand ''you get what you pay for''
-need a consistent and reliable level of quality
-customers want consistency and predictability in what they purchase
-structured production and quality control processes allow you to produce consistent product

KPI for products and services

-returns mean that product didnt deliver the value that was expected
-deffects and warranty claims=not delivering expected quality and reliability
-waste measures amount of inputs relative to outputs

describe innovation relative to KSF

-new approach to existing organizational processes/activities/strategies, etc
-important because the environment is always changing, therefore you need to create new ideas
-changing to ensure best position and remain aligned is important for long term success
-continuous innovation=moving forward, retaining uniqueness, sustaining competitive advantage
-challenge status quo and take risks

KPI for innovation

-idea generation: key starting point for innovation
-proportion of ideas: new products and ideas over a period of time

describe uniqueness relative to KSF

-differentiation is a key strategy for charging higher prices
-distinctive competitive advantage in products/services differentiates the organization from its competitors
-create distinctive competitive advantage by understanding market values, knowing what competitors are doing and develop unique capabilities

KPI for uniqueness

-market research: identify companys reputation and if they're different
-financial statements in comparison to others

describe financial resources relative to KSF

-money company earns, possesses or is able to obtain
-need sufficient cash flow and being profitable enough to operate
-if business is less profitable in comparison to competitors, it will be a less attractive investment
-achieving financial performance=comparatively better/improving profit and R.O.I

KPI for financial resources

-revenue: amount of money generated through sales
-profit: what remains after expenses
-profit margin: ratio of profit to ever dollar sales
-R.O.I: net profit divided by total investment
-firm value is important if company is going to try to use equity financing by selling shares

internal and external conditions affect each other in which ways?

-what it takes to attract and retain employees is affected by external enviro
-innovation and creativity: how you structure and reward innovative activities is an internal decision, but external enviro determines what would be innovative
-financial performance: what prices you charge, how much money you borrow (internal), but is also determined by economic conditions and interest rates (external)

environment in diamond-e

-PEST elements that are external to the organization and competitive dynamics of the industry
-develop strategies according to the external environment
-environment=what we must do

management preferences in diamond-e

-biases of management, how management interprets enviro
-what the organization wants
-must be consistent w the strategy, or management wont effectively implement strategy

resources and organization in diamond-e

-what we can do
-resources= human, capital and financial
-what resources are feasible to create solution
-strategy determines what resources are needed
-resources influence what capabilities the organization can build

organization in diamond-e

-refers to culture, structure and leadership organization
-capabilities determine what strategies are feasible
-strategy influences organization b/c of the experience it creates

strategy in diamond-e

-the plan the organization has put in place to pursue opportunities or avoid threats
-even if strategy is executed perfectly, it wont create success for the organization
-strategy must be internally and externally consistent

what is the PEST analysis?

-access major external factors that influence its operation in order to become more competitive in the market

describe porters 5 forces

-5 forces that make up a competitive environment
-competitive rivalry: number and strengths of your competitors, how does their quality compare to yours
-supplier power: suppliers to increase prices, potential suppliers, how expensive it would be to switch between suppliers, the more you need the suppliers the more expensive it can get
-buyer power: how many buyers, how big are their orders? your power increases the more buyers you have
threat of substitution: customers finding easier ways of doing what you're doing, substitutions that are easy to make can threaten profitability
threat of entry: how easy is it to enter your industry? how much would it cost? how tight is your sector regulated?