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hi sir
i am really having difficulties in answering the part b of the question 2 june 2012 amal airlines
the performance prism consists of 5 things
1. stakeholder satisfaction
2. strategy
3. processes
4. capability
5. stakeholder contributionsthe stakeholder satisfaction and stakeholder contributions i understood it perfectly.. however the strategy, process and capability is kind of hard
since different stakeholders wants different things from the company i cannot understand how can a strategy be developed to satisfy the stakeholders wants.. each stakeholder demands for something different. shareholders wants higher returns and staffs wants higher salaries…..
so how can the company develop a strategy?
furthermore i read in the marking scheme that it stated gap analysis could be used… can you please clear my doubts …can you use the cyert and march model to answer this part… like you can state you can prioritise…….. side payments….
the processes
when i think of processes i think about process improvement, redesign and re engineering…
now how can i differentiate what is the idle one to use????
furthermore it stated that value chain can be used…
could you kindly help me out please
thanks in advance!!!!
Most organisations that survive manage to achieve stakeholder satisfaction for most stakeholders, in particular for the key players.If they didn’t the key players would be able to make it very hard for the organisation to continue. As you say there is a conflict between mane stakeholders (eg shareholders want more profits and employees want more income) but success implies some sort of compromise with the key players getting most of what the want.
Your strategy could be to sell books and CDs
Your processes could be do to this over the internet
You then need capabilities to make this happen.I don’t think you need Cyert and March or the value chain to describe it.
See: https://www.accaglobal.com/content/dam/acca/global/PDF-students/2012s/sa_mar12_p5_perfprism.pdf
this ques has has asked for improvements in performance measures………..
but i am not able to identify this from the examiners answer…..help me..I don’t think the examiner has answered the question very clearly. His answer concentrates on describing the performance prism. However, we can get some things from the answer:
The strategies are the paths that the organisation will follow in order to deliver stakeholder satisfaction. Amal has set a target of reduction of overall costs by 14%. Two major categories are fuel and staff costs and part (a) has indicated possible routes
to improvement in these areas indicated by competitor activity.An identification of the cost drivers and an activity-based cost exercise would give a clearer understanding of general overhead costs.
The processes are required if the strategies are to be executed. At Amal, it appears that the website project aims to streamline existing processes. Cost per seat booked should fall as a result of this project. The project itself should be monitored against budget as cost overruns are more likely when the project fails to meet its timetable.
The capabilities are what are required in order to operate and improve the processes. The capabilities can be identified by an audit of the strengths and weaknesses of the business. This can be achieved by considering the value chain and understanding how value is generated by the linking of processes and skills in the business.
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