Management Activities - Chapter 8

Management Activities - Chapter 8

1. Planning

   • Steps
     • 1. SWOT Analysis
       • Internal
         • Weaknesses
           • e.g Not enough money, out of date machines
         • Strengths
           • e.g Excellent Staff, up to date machines
       • External
         • Threats
           • e.g Competition from new countries
         • Opportunities
           • New countries join EU (Chance to sell more)
       • Business example
         • Ryanair
           • Excellent CEO
           • Famous Brand
           • Industrial relations problems
           • Poor customer service to passengers
           • Transatlantic service
           • Expansion of EU (New countries)
           • Competition from other budget airlines (easyjet)
           • Increasing fuel prices
     • 2. Set objectives
       • Air Lingus did a SWOT he saw Costs where ^ set objectives of cutting costs.
     • 3. Devise strategies
       • Used to achieve Objectives
       • Aer Lingus used a Redundancy strategy making 2000 employees redundant
       • Low cost leadership strategy
       • Differentiation strategy
       • Niche strategy
     • 4. implement plan
       • Communicates plan to all employes
       • Aer Lingus implemented its plans byasking employees to volunteer for redundancy
   • Business strategies
   • Set goals(Objectives)
   • 1. Manpower planning
     • Goal of ensuring enough employees
       • Redundancy strategy
       • Recruitment strategy
     • 1.Forecast future demand
     • 2. Calculate existing supply
     • 3. Take corrective action if needed
   • 2. Cash flow forecasting
     • Calculates cash - receive + spend
     • Ensure it can pay its bills in the future
   • 3. Mission
     • Need to have direction or purpose
     • Overall fundamental objective of business
     • (A) What business does now
     • (B) What it plans to do in the future
     • (C) The business's values and beliefs
   • 4. Strategic plan
     • Long term plan
     • Breaks up the mission statement
     • Senior managers
   • 5. Tactical
     • Short term plan
     • Middle managers
     • Breaks up strategy plans (usually within a year)
   • Advantages
     • Guides business to sucess
     • Helps avoid future problems
     • Eliminates the business's weaknesses
     • Helps secure capital
     • Motivates employees and managers

2. Organising

   • Functional
     • Advantages
       • Specialisation
       • Acountablity
       • Clarity
     • Disadvantages
       • Co-ordination
       • Isolation
   • Matrix
     • Disadvantages
     • Advantages
   • Geographical
     • Advantages
     • Disadvantages
   • Product
     • Advantages
       • Competition
       • Lower costs
       • Focus on cutomer
     • Disadvantages
       • Brand cannibalisation
       • Duplication