Models

Question 1

PESTEL

Answer 1

PESTEL
๏ Political
๏ Economic
๏ Social
๏ Technological
๏ Environmental/ecological
๏ Legal

Question 2

McKinsey 7S Model

(Business Integration)

Answer 2

Hard Factors (influenced by mgmt):
* Strategy
* Structure
* Systems

Soft Factors:
* Shared Values
* Staff
* Skills
* Style:

Question 3

Porter’s 5 Forces

Answer 3

Bargaining power of buyers
Bargaining powers of suppliers
Threat of New Entrants
Competition in Industry
Threat of Substitution

Question 4

BCG

Question 5

Porters Value Chain

(Business Integration)

Answer 5

Analyses specific activities and their link to value creation.

Porter says the primary activities must be aligned with each other.

Identify critical activities and ensure they’re being managed through KPI’s.

Question 6

Performance Pyrid

Question 7

Building Block Model

Question 8

Balanced Scorecard

Question 9

Mendelow’s Matrix

Question 10

VFM

Question 11

Six Sigma (DMAIC)

Answer 11

• Define, Measure, Analyse, Improve and Control
• 6 deviations from mean is tolerated under Six Sigma. Most should be close to mean.
• Outside of 6 deviations is defective.

Question 12

Lean Principles (5S)

Question 13

Triple Bottom Line

Question 14

Porters Value Chain KPI’s

Answer 14

Inbound Logistics
- Lead time
- % Of defective material.
Outbound Logistics
- Lead time
- % Of defective material.
Operations
- Cost variances

Marketing and Sales
- No. of succesful campaigns.
- No. of new customers per campaign.

Services
-Time taken per ticket/problem
-No. of support staff
-Problems resolved per staff.

Question 15

Advantages of Porters Value Chain

Answer 15

1. Flexible to industries
2. diagnoses and creates competitive advantages.
3. Interrogates capacity to meet customer obligations (value proposition)
4. Perf management tool through kpi’s.

Question 16

DMAIC

Answer 16

1.Define the problem i.e Customer requirements, minimum, beyond basic and exceeding. Establish Project goals & team.
2.Measure i.e. collection of data on problem,severity, site: inputs, process elements, outputs.
3.Analyze I.e. divide process into value adding , support activites or non-value adding activities.
4.Improve i.e.
5.ControlI.e ensure early deviations are brought back in line.

Question 17

Advantages of Six Sigma

Answer 17

• Helps to achieve customer satisfaction and minimizes defects.
• Rise of profitability and reduction in costs.

Question 18

Disadvantages of Six Sigma

Answer 18

• Clashes with TQM as it still accepts some failures
• Must be sustained
• Contradicts innovation by limiting deviations.
• Results of 6 sigma is time spent on non-valuable activities.

Question 19

What is the planning gap?

Answer 19

Distance between desired performance and expected performance. Measured in demands per unit.

Can be reduced through: market penetration, market development, product development and diversification.

Question 20

Market Penetration

Answer 20

Used on existing products and existing markets.

Advertising, driving out competition or getting customers to buy more products

Question 21

Market Development

Answer 21

existing products and a new market.

This might include new distribution channels or price discrimination.

Question 22

Product Development

Answer 22

new products and an existing market
This will probably involve looking at the profits of a new product versus an existing

Question 23

Diversification

Answer 23

new products to a new market

Question 24

Advantages of Lifecycle Costs

Answer 24

• Pricing decisions more accurate
• Long term thinking - forward loooking
• Helps in making good decisions during planning phase to ensure revenue>cost or scrap.
• Better with products that have short life cycle