ACCA SBL Mindmaps

Influence of Culture on Change Cultural Web: Corporate Code of Ethics Management styles:
-Stories Core beliefs, pervasive beliefs -Values of a businesspurpose/mission
Routines and rituals What behaviour do these encourage, statement, objectives -Autocratic (Tells)  manager makes all the
key rituals, training programmes -Employees recruitment, conditions decisions and instructions, always obeyed
Organisational structures mechanistic/organic, -Customer relations products/services -Persuasive (Sells)  Manager still makes the
collaboration or competition -Shareholdersinvestment and return decisions but believes team members must be
Control systems What is most closely -Suppliersinvoices, quality of inputs motivated to carry out properly
monitored/controlled, reward or punishment -SocietyCSR -Participative (Consults)  Manager confers with
Power structuresbeliefs of the leadership -Implementationcode is issued and team, takes views into account
Symbolslanguage/jargon used at work reviewed - Democratic (Joins)  Leader and team members
OverallWhat is the dominant culture, how easy is it to make decisions together
change this

Context for change (Balogun and Hope Hailey) Transactional leaders  give followers the rewards
-Time in return for loyalty, compliance and service, seek
-Scope improvement rather than change
-Diversity Transformational leaders  see their roles as
-Capability inspiring and motivating, change an organisations
-Capacity mindset, values and culture
-Readiness LEADERSHIP
-Power Change management

POPIT Model Areas to consider when managing changes Resistance to change:
-People Need right skills, motivation -Job, social and personal factors
-Organisation Define job roles, effective communication
-Processes Must be defined, documented Strategic drift triggers  competitive/regulatory
-IT Needs to support the changes Tucker’s 5-question model testing pressure
AKA 4 VIEWS MODEL ethical decisions:
Use model to identify weaknesses, opportunities, areas not -Profitable Overcoming resistance (Kurt Lewin Model) :
working together, ensuring all business areas are considered -Legal  Unfreezing  create initial motivation
-Fair  Change the process itself
Talent Management identifying, recruiting, retaining and -Right  Refreezing
developing the most talented/superior employees -Sustainable
Leadership styles (Kotter and Schlesinger):
Public Interest Supporting the good of society as a Managing strategic change – types:  Participation
whole (collective well-being, welfare, stability)  Adaptation  slow/gradual  Education and communication
 Reconstruction  sudden external pressures  Power/correction
 Evolution  changing over time  Facilitation/support
 Revolution  rapid fundamental change  Manipulation

, Growth StrategiesAnsoff Matrix Achieving International Growth tailoring 3 Levels of Strategic Planning:
products or selling standard products  Corporate, business and functional
Existing products New products
Existing markets Market Penetration Product develop Strategy evaluation: Johnson, Scholes and Whittington model of strategic
New markets Market develop. Diversification -Sustainabilityare options adequate planning: (requires re-evaluation and assessment)
-Acceptabilitymeeting firms objectives
Market penetration New use improved competitive -Feasibilityavailability of resources -Strategic position threats, opportunities, PESTEL
strategy, e.g changing mix, increasing sales force -Strategic choice internal/external development,
Product developmentR&D, joint venture, new porter generic competitive strategies, Ansoff
products/features -Implementationstructure and resource planning
Market developmentNew segments, needs new
external analysis (PESTEL), reposition products Strategic Drift pace of development may overtake,
Diversificationnew product for new customer changes in internal/external environment = company
fails to keep up
Conglomeratemoves into unrelated markets 1. Incremental change
Horizontal diversificationsynergy 2. Strategic drift
Vertical integration forward (to cust) or backward STRATEGY 3. Flux
4. Transformation change
Sustainable competitive advantage
Strategic steps to protect competitive position:
-Price based strategies PESTELPolitical Economic Social Technological
-Differentiation Environmental Legal
-Differentiation through innovation
Porters 5 Forces:
Strategic choice close the gap between where the Porters Value Chain -Buyer power
organisation is at the moment and where it wants to be -Which activities within the value chain are -Competitive Rivalry
in the future contributing to competitive advantage -Supplier power
-Primary activitiesInbound/outbound logistics, -New entrants External
Strategic Options: operations, marketing sales, service -Substitutes
-Cost leadership cut costs of production -Secondary activitiesFirm infrastructure, HR,
-Differentiationproduct that can’t be matched by procurement, technology development Porters Diamond Determinants of competitive
rivals and offer a premium price -Linkages between activities, competitive advantage:
-Focus position in one particular market niche advantage, processes, -Factor conditions
-Demand conditions
Strategic Clock: SWOT Strengths Weaknesses Opportunity Threats -Relating and supporting industries
-No frillscommodity products/price sensitive Internal Env/Ind. Structure -Firm strategy, structure and rivalry
Low pricewithout sacrificing quality Analyse explain importance prioritising, linkages
Hybrid strategyDifferentiation Drivers of change
Differentiation Offering better products/services Strategic Capabilities Resources and Impacts on the organisation
Focused differentiationhigher benefits/price competences Critical success factors