Models and Theories

• Model that highlights the range of different management styles that may be adopted ranging from a 'tell' approach to one that involves delegation
• Highlights that there are a range of styles rather than catagorising management and leadership simply in terms of theor authoritarian and democratic
• can be used when discussing the influences on and impact of different management and leadership styles 

• A model that highlights different management styles, according to their focus on the task and the people within the business 
• The model highlights that there are different managment or leadership styles 
• Can be used when discussing the influences on and impact on different management and leadership styles 

• A model that highlights the different stages in scientific, data bases approach to decision making, it outlines a logical sequencial process
• This model takes a logical and rational approach to decision making with a series of stages that follow on from eachother, decisions need to be reviewed and this might lead to a change in objectives
• Can be used when discussiong management, leadership and decison making

• Provides an example of scientific decision making
• The probability shows the estimated likelihood of a given outcome 
• Can be used when discussing important concepts in decision making such as choices, opportunity costs, probability and risk, costs and returns, net gains, expected outcomes and forecasting 

• Catagorises stakeholders in terms of their relative power and interest 
• Highlights that not all stakeholders are equal - they vary in terms of power and influence, this might affect the way a business communicates with different groups and how much attention is paid to their views
• Can be used when discussing the power and influence of stakeholders, how stakeholders may affect decision making and how managers may treat different groups 

• Identifies how products/brands are percieved by customers relative to other products/brands in the market 
• Highlights that there are various criteria used by cutsomers to judge products, the appropriate criteria will depend on the market and how customers assess these products
• Can be uses when discussing the positioning of a product/brand, marketing managers must analyse a market to understand what segments exist within a market, the decide which to target, and how best to position the product in the market relative to compeitiors 

The value of price elasticity is of interest to managers because:

• It influences pricing decisons
• If demand is price elastic this means it is sensitive to price. A fall in price leads to a bigger increase in quantity demanded; although the price of one unit is less the increase in sales means the total revenue earned is more 
• If demand is price inelastic this means it is insensitive to price changes. In this case a price increase will increase revenue; this is because the fall in quantity demanded is smaller than the change in price
• Can be used when analysing then impact of exchange rates, when considering marketing activites such as branding and differenciation you can examine the effect on the price elasticity of demand 

• Measures the sensitivity of demand to changes in income
• A positive answer means that an increase in incoome increases quantitiy demanded 
• A negative answer means that an increase in income decreases quantity demanded 
• The value of the answer shows how sensative demand is to changes in income
• Can be used when studying influences on demand, when studying correlations, when considering how a business might prepare for or be affected by changes in the incomes of its customers 

• Outlines the marketing process 
• Managers must; analyse a market to identify the segments that exist, select which segments they think the business should target, decide where in the targeted markets the porducts should be positioned relative to competitors 
• Can be used when discussing market analysis and making marketing decisions

• Analysing the marketing mix using the 4Ps may be enhanced by adding additional elements to it. These futher elements may be particularly relveant in a service economy 
• The 7Ps model highlights that marketing involves a wide range of activites 

• is a common methos of portfolio analysis developed, the product life cycle shows the sales of one product over time 
• Can be used to consider where products of a multi-media business might fit into the model
• Also can be used to consider different portfolios 

• This model sets out the typical stages that sales of product may go through over time
• Development: this is what happens as the product idea is turned into a reality. Money will be invested developing, testing and trialling products. Many product idead will never actually make it to launch. This is a time when there are likely to be relatively high outflows with no money coming in yet.
• Launch: this is when the product is put on to the market. It may take time to get distributors and for the product and brand to develop
• Growth: this is when sales are growing fast as the product becomes better known and distrubution increases 
• Maturity: sale growth now slows and the business will start to look ahead and decide what action to take 
• Decline: this is where sales fall 
• Can be used to show how the marketing mix needs to be adapted at different stages you could ge students to identify how it might change and why 

• Can be used when considering factors affecting; the level of buffer stock, re-order quantities, re-order levels, usage rates, lead times

• Identifies factors that influence the motivating potential of a job 
• Highlights five aspects of the design of a job that can influence how motivating it is and highlights the impact of job design on individuals on their performance 
• Can be used when discussing job design and the impact of motivation you could consider the different intrinsic aspect of a job and then link to Herzberg 

• SWOT analysis is one part of the process of strategic planning, it involves an internal and external audit which make take place before a business develops an appropriate strategy 
• A SWOT analysis will be unique to each business, it will change over time as conditions change and so the analysis need to be undertaken regularly 
• Can be use when considering the strategic planning process of a business 

• Highlights the range of influences on the success of a business beyond that of the traditional view of looking at profit. It combines non-financial measure alongside financial measures 
• The model looks at the business from the point of four different perspectives
• The model provides a more holistic view of the business than just looking at the profit the busines generates 
• Can be used when discussing strategy, objectives, strengths and weaknesses of a business to assess if it is performing well

• Highlights that businesses may have different objectives, not just profit 
• The significance of this is that if you measure all these areas employees are likely to pay attention to them and change their behaviour accordingly 
• Can be used when discussing objectives, Corporate Social Responsibility and the social environment 

• Outlines the different possible aspects of social responsibility for a business 
• Economic responsibilities: include providing rewards to the owners, paying employees fairly and selling products at a fair price to consumers 
• Legal responsibilities: means that businesses should follow the law 
• Ethical responsibilities: a business will have responsibilities over and above theor legal requirements 
• Philanthropic responsibilities: focuses on businesses actively trying to help society
• Can be used when discussing the responsibilities a business might accept 

• Buyer power: if the customers of the businesses are very powerful they will be able to push down prices and reduce the profits of the businesses in the industry 
• Supplier power: if the businesses supplying the established firms are powerful they may be able to push up prices increasing their profits and reducing the profits of the established businesses that now have higher costs 
• Entry threat: if it is relatively easy for new firms to enter the industry this will tend to drive down profits withing the industry
• Substitute threat: a substitute is a product that performs the same function as the one in the industry 
• Can be used when considering why the profits of some industries may be much higher than others 

• Investment appraisal methods are used to assess different investment opportunities 
• Payback: this method is valuable if managers want to know how long it takes to repay the investment, if mangers are worried about liquidity they will look for short payback 
• Average rate of return: this is method considers the total returns of the project, it then calculates the average return per year and calculates this as a percentage of the inital investment 
• Net present value: this method takes into account the time value of money, it considers the value of expected future returns in today's terms 

• When making a decision, managers are unlikely to make only one of set calculations given that all the numbers are based on forecasts 
• Managers will recognise that there is a range of possible values for revenues and costs 
• They are likely therefore to undertake sensitivity analysis 
• This takes an investment forecast and adjusts it for different scenarios 
• Can be used when managers make decisions involving investment 

• The model sets out strategic options for a business
• The Ansoff's matric outlines possible strategies for the business, managers have to make the right choices, manage the risk and ensure they implement the strategy effectively 
• Can be used to highlight different strategic options facing a business, analyse strategies of businesses using this framework, compare and contrast different strategic options, consider what would prompt a new strategy 

• Highlights the strategic decisions of magers in terms of the scope of the business' activites and the positioning within the market 
• There are two basic types of competitive advantages a firm can possess: low cost or differenciation

• Model outlines different strategies in terms of the percieved benefits and price 
• It highlights different combinations of benefits and price that are competitive and those that are not 
• The model shows that different strategies can be competitive and some combinations of benefits and price are not competitive 

• Highlights the challenges that typically occur in managing businesses as an organisation gets older and bigger, it shows typical crisi points in the development of a business
• When organisations are young and small there is often no formal organisational structure, sharing of ideas is easy and at this stage the organisation may be very creative
• Can be used when: analysing growth, considering how structures and systems might change  as a business develops, examining issues such as centralisaton and decentralisation, when considering change and how it might affect a business

• Examines the different approaches to managing businesses that operate in several countries 
• The strategy adopted by a business will depend on the relative strength of market forces
• Can be used when discussing international business and the best strategy to adopt when operating overseas

• Highlights that at any moment there are forces for and against change 
• At any moment there are forces for and against change, changes may be brought about if the forces for change increase or less restraining forces
• Can be used when discussing the issues involved in bringing about change 

• Identifies the four types of reason why people resist change

1. Self-interest: they would be worse off if the change occured 

2. Fear and misunderstanding: they do not trust the mangers' motives 

3. Differenent assessments: they understand the reasons for the change but disagree with them 

4. Prefer things as they are; they do not like change 

• Outlines some of the methods that might be used to overcome resistance to change 

• Outlined four types of culture: power, role, task and person 
• Can be used when highlighting different types of culture and the advantages and disadvantages of these 

• Identifies different forms of national culture 
• Suggested there were differences in national culture 
• Can be used when discussing the types of culture and the possibility for culture clashes 

• Network analysis is used in project planning, it is one of several possible project management tools that managers might use 
• Managers can order the activities to identify the quickest way the project can be completed by identifying what is known as the critical path 
• Mangers can also identify the float time on other activites, the float time is the time that an activity can overrun without delaying the completing of the project as a whole 

• Strategic drift occurs when the strategy pursued by a business no longer fits with the environment around it , what may have been appropriate at one point is no longer suitable as conditions have changes