SBL flashcards

Porter’s five forces should be applied to an industry to judge industry attractiveness.

Position-based: alter your position to match the environment. Resource-based: look at your resources and competences and see if they can be redeployed in ways that will give competitive advantage.

Problem child (or question mark): high market growth rate, low market share. Star: high market growth rate, high market share. Cash cow: low market growth rate, high market share. Dog: low market growth rate, low market share.

Market penetration, Efficiency gains, Withdrawal, Consolidation.

In Ansoff’s matrix, what is moving to a new market with an existing product known as?

Market development

Product development

This is a functional structure as it organises the business by function (or department).

Relatively short middle line and a small technostructure. Because each job is different in a professional firm, there has to be close liaison between the strategic apex and the operating core and the technostructure has limited opportunity to enforce a standard approach.

The span of control (SoC)l is the number of people directly reporting to a manager. In a tall narrow structure the SoC is low; in a wide flat structure the SoC is large.

Adaptation (nature = incremental and scope = realignment) Evolution (nature = incremental and scope = transformation) Reconstruction (nature = big bang and scope = realignment) Revolution (nature = big bang and scope = transformation)

Power, Time, Scope, Diversity, Capability, Capacity, Readiness, Preservation

Change path Change start point Change style Change interventions Change roles

* Often a change agent is a consultant because: * Skilled in the change process * Knowledge/expertise in the types of change needed * Perceived as independent and fair * Someone for management to transfer risk to.

* People * Physical evidence * Process

* Observable * Measurable * Quantifiable * Financial

* Post-project review - This is about how well the project was conducted * Post implementation review - This is about what the project achieved eg costs v benefits

The trend (the underlying increase/decrease); The seasonal variations

Suitability Acceptability Feasibility

What are the two determinants of an organisation's risk appetite?- Risk capacity - Risk attitude

What are the three elements of Adair's action-centred leadership?- Concern for individuals - Concern for the group - Concern for the task

The main principles of the UK Corporate Governance Code 2010 are grouped under five headings. What are those headings? - leadership - effectiveness - accountability - remuneration - relations with shareholders

One of the main principles of the UK Corporate Governance Code is “leadership” Provide 4 ideas to explain more fully this main principle- every company should be headed up by an effective board of directors, collectively responsible - there should be a clear division of responsibilities at the head of the company. - the Chairman is responsible for the leadership of the board - in a unitary board the NEDs should constructively challenge and assist in the development of strategy

One of the main principles of the UK Corporate Governance Code is “effectiveness” Provide four ideas to explain more fully this main principle - the board and its sub-committees should have an appropriate balance of skills - a balance of executive/non-executive directors - there should be a formal, thorough and transparent procedure for the appointment of new directors - directors should be able to allocate sufficient time to company to discharge their responsibilities effectively - directors should be: given a induction course when joining / be able to update their knowledge on regular basis - the board should be supplied in a timely manner with necessary information - board's performance should be evaluated - subject to regular re-election

One of the main principles of the UK Corporate Governance Code is “accountability” Provide three ideas to explain more fully this main principle the board should: - present a balanced and understandable assessment of the company's performance, position, - establish formal/transparent procedures for consideration of their approach to internal control and risk management - establish procedures for ensuring that an appropriate relationship is maintained with external auditor - the board is responsible for determining the nature and extent of significant risks which it is willing to take in achieving its strategic objectives

One of the main principles of the UK Corporate Governance Code is “remuneration” Provide four ideas to explain more fully this main principle- remuneration levels should be sufficient to attract, retain directors of appropriate skills, - a company should seek to avoid paying in excess of the levels needed to attract, retain and motivate - portion of director's remuneration should be linked to performance - formal/transparent procedure for developing remuneration policy - no director should be determining their own remuneration level

What is meant by the terms 'entrepreneur' and intrapreneur'?Entrepreneur: someone willing to undertake risk and expend time and money to set up a new business. Intrapreneur: an employee who promotes innovation and new business ideas within and existing organisation.

What are the four 'Vs' of big data?- Volume - Velocity - Variety - Veracity (a late addition)

What is POPIT?- People - Organisation - Processes - Organisation - Information technology These are the areas that must be considered in any organisational change.

What is the frequently quoted example of a rules-based system of corporate governance? The frequently quoted example of a rules-based system of corporate governance is the Sarbanes-Oxley system as used in the USA

Compare strategic drift to disruptive technologies?Strategic drift is the slow divergence of an organisation's capabilities and activities compared to the environment in which it operates. A disruptive technology is a very sudden shift in the environment brought about by technological or other breakthroughs.

On what document are the following recorded: risks, their probability of occurrence, their impact and the planned responses to the risks?- The risk register

Whose model of stakeholder relations maps the stakeholder level of interest against their power? The model which maps the stakeholder level of interest against their power is Mendelow's Model

What does the following define? - A concise communication of an organisation's strategy, governance and performance - Demonstrates the links between an organisation's financial performance and its wider social, environmental and economic context. - Shows how organisations create value over the short, medium and long term.Integrated reporting

In the context of risk management, what are the four identified ways available to a company to manage any risk which faces the company? The four identified ways of managing risk are: - transfer - avoid - reduce - accept (TARA)

The definition of an internal control system includes five objectives. What are these?- carry out the business of the enterprise in an efficient and orderly manner - ensure adherence to management policies - safeguard the assets - prevent and detect fraud and error - completeness and accuracy of the records - timely preparation of financial information

A mnemonic applicable for remembering the characteristics of “good” information is “accurate” To what do the letters in “accurate” refer? The letters in “accurate”, used for remembering the characteristics of “good” information, refer to the following: - accurate - complete - cost-beneficial - user-targeted - relevant - authoritative - timely - easy to use

A risk map plots high/low severity or impact of an event and high/low probability or likelihood of an event. Match transfer, accept, avoid/abandon and reduce to the four quadrants ? - high impact, low probability: transfer eg insure - high impact high probability: avoid/abandon - low impact, high probability: reduce - low impact, low probability: accept

What are the five identified ethical threats to an external auditor's independence? - advocacy - self-interest - intimidation - familiarity - self-review

Name five sources of self-interest threatsAny five from: - fee received from client exceeds maximum guideline - beneficial interest in the success of the company (by way of shareholding) - loans to / from the company - gifts and benefits received from the company - overdue fees - contingent fees - close business relationships - close family and personal relatioships - low-balling - recruiting staff on behalf of the client

When faced with an ethical conflict, what six steps should the decision-maker consider?- Consider the facts - Consider the ethical principles involved - Consider the related fundamental principles - Consider relevant internal procedures - Consider alternative courses of action - Consider the consequences of each alternative course of action

What are the two axes of a risk map?- severity/impact - frequency/probability

What are the three conditions needed for a fraud to be perpetrated? - incentive/motive - opportunity - attitude/dishonesty

Which ISO number refers to a series of international standards on environmental management? ISO14000

In knowledge management, what are the two categories of knowledge- Explicit - Tacit

What are the '3Es', often used when discussing not-for-profit organisations? - Effectiveness - Efficiency - Economy

In the UK, whistle-blowers (employees, trainees and agency workers) are protected by law if they report six categories of event. What are these categories?- a criminal offence - someone's health and safety is threatened - risk of or actual damage to the environment - a miscarriage of justice - the company is breaking the law - belief that someone is covering-up a wrong-doing

What does 'EMAS' stand for?Eco-Management and Audit Scheme

In the context of taking decisions in a position of ethical dilemma, Tucker's model provides a fie question approach. What are those five steps? Tucker's five step model involves: - profitability - legality - fairness - ethics - environmental acceptability

What matters are covered in the six core performance indicators of EMAS?- waste management and waste minimisation - energy efficiency - material efficiency - water - waste - biodiversity - emissions