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Making Strategic Decisions
A critical step in defining the
strategy of a business is to
determine its strategic
positioning – the essence of
how it competes and serves
customers in its markets. 

In summary a firms strategic

position can be identified as:
Reminder ……..
Business Studies A ’level Course - AQA

The new A ‘level course is delivered in a linear process over two

years with the syllabus content split between three units of
assessment
 Year 2: Content
3.8 Strategic 3.9 Strategic 3.10 Managing
direction methods change

Mission &
Growth Change
External objectives
analysis

PESTAL
Competition Porter
Low cost/ Innovation Culture
SW OT
differentiation
analysis
Internal
analysis
Bowman
DMTI strategy Digital Implementation
FMOP clock

Ansoff Matrix International Success/Failure

Slide 5 Copyright © AQA and its licensors. All rights reserved.

Example of an exam Question
To what extent is the successful
implementation of a new strategy dependent
upon a firms organisational structure or are
other factors such as leadership important?
[25 = 4+5+6+10]

Breaking down the question

Essay planning
Effective paragraph
 Organic v Mechanistic
Organisational Structures
Organic Mechanistic
Structures Structures
• Informal • More formal & bureaucratic
• Flexible and fluid (easy to • Favours standardised policies
change) and procedures
• Favours verbal communication • Formal communication
• Associated with decentralised methods
decision-making & • Associated with centralised
empowerment decision-making & supervision
• Find change easier to handle • Little perceived need to
change
Example of an exam Question
To what extent is the successful implementation of a new strategy dependent upon a firms
organisational structure or are other factors such as leadership important?
 Effective paragraph - PeCan Pie

______________________________________________
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Business Strategy – in the news
 Business Strategy – in the news
CEO of Yum!, David C. Novak responsibility for KFC operations.
NEW CEO 8/17 – JAMES BRAKEWELL
Why didn't the chicken cross the road? Because of a single AA slumps as strategy plan hits profit outlook
point-of-failure in the chicken restaurant's supply chain and lack
of contingency planning, that's why

https://news.sky.com/story/aa-slumps-as-strategy-plan-hits-
http://www.wired.co.uk/article/kfc-chicken-crisis-shortage- profit-outlook-11260423
supply-chain-logistics-experts
Changing Organisational Culture
3.10 Managing Strategic Change
What you need to know
• Understanding of organisational culture
• Models of business culture

• The influences on organisational culture

• The reasons for and problems of changing organisational
culture
 What is meant by ‘organisational culture and
why is it important?

https://www.youtube.com/watch?v=gficoigz1xs
 Organisational Culture

The values &

beliefs of a
business that are
shared by its
employees.

https://www.youtube.com/watch?v=gficoigz1xs
A useful analogy for Corporate Culture

Culture is the
DNA of a
There are many different types of organisational culture
What factors might influence the Culture of an Organisation?
‘the way we do things’
 Factors Influencing Culture of an Organisation (1)

• Influence of the founder (“shadow of the leader”)

• Size & development stage of the business (e.g.
start-up, multisite, multinational –
centralised/decentralised)
• Leadership & management style
• Organisational structure, policies & practices – eg
its approach to HR, its ethical stance, the physical
environment, attitude to stakeholders.
Factors Influencing Culture of an Organisation (2)

• Employee & management reward structures (e.g. pay,

bonuses, individual v team rewards)
• Market /industries in which it operates
• Working environment & nature of tasks (e.g. physical,
office, remote working, flexible working)
• External environment (e.g. legal, economic)
• Attitude of organisation to risk-taking & innovation
One possible difficulty Sue Marr might face in changing the
culture of the bank is………………..

This is because …….. the banks current culture is based on

…………

As a consequence of this ………….

Therefore ……………..

Which will mean changing the overall culture to reposition

the bank to be popular with its stakeholders could prove
difficult for her.
Q 1-3 only
Q 4-5 only
Q 6 & 7 only

Q 6 – Costs & profits

Q7 – Contributing & profit

Explain one way in which a depreciation of the UK’s
exchange rate against the Euro COULD affect a UK based
producer of electrical components that sells 90% of its
production to European car manufactures. [5]
Organisational Culture
3.10 Managing Strategic Change
Making Topic Notes

Business Culture
Review: Organisational Structure & Change Management
Organisational Culture
The values Create an A4 resource for revision to
& beliefs of …. Explain the following Cultural
models; Handy’s organizational
a business culture model and
that are Hofstede’s national cultures model.
For each get 3-4 real world examples
shared by of businesses that these cultural
its modela can apply to and don’t forget
their CEO’s.
employees.
What you need to know
• The importance of organisational culture

• Cultural models should include:

• Handy’s organizational culture,
• Hofstede’s national cultures

QUIZ: www.tutor2u.net/business/quiz/culture/quiz_html5.html
Explain Handy’s model of culture.
 Explain Handy’s model of culture

The principles and beliefs of any

organization form its culture. The
According to Charles
organization culture decides the way Handys model, there are
employees interact amongst
themselves as well as external parties.
4 types of culture which
No two organizations can have the an organisations follows
same culture.
Several models have been proposed - Power, Task Culture,
explaining the organisation culture, Person Culture and Role
one of them being the Charles Handy
model. culture.

https://www.youtube.com/watch?v=gficoigz1xs
Business Examples
https://www.youtube.com/watch?v=9f5iXtDNYHA https://www.youtube.com/watch?v=E1NrJqYudPw
Power Culture

• Control radiates from the

centre
• Concentrates power
among a few
• Few rules and little
bureaucracy
• Swift decisions are
possible
 Role Culture

•People have clearly

delegated authorities within Role
a highly defined structure
Role Role
•Hierarchical bureaucracy
•Power derives from a
person's position
•Little scope exists for expert
power
Task Culture
• Teams are formed to solve
particular problems Functional Depts

• Power derives from

Project Teams
expertise as long as a team
requires expertise
• No single power source
• Matrix organisation
• Team may develop own
objectives (a risk)
Person culture
• People believe themselves to
be superior to the business
• Business full of people with
similar training, background
& expertise
• Common in firms of
professionals – e.g.
accountants & lawyers
• Power lies in each group of
individuals
Culture Types and Leadership style

Cultural Type Suitable Leadership Style?

Power Autocratic
Role Autocratic or paternalistic
Task Paternalistic / democratic
Person Democratic
Give one example of a business that is likely to have one of
the following types of Culture.

Power Role

Task Person
Starbucks’ employees are called partners. The
culture is one that embraces diversity and
treating each partner with respect. This is
integral to Starbucks partner experience which
also focuses on understanding their customers Having the right organisational culture
and communities. Starbucks believes that is important to the success of Starbucks
working for them is like working with your in the competitive environment that it
friends. There are a large number of clubs, now faces. Using Hardy’s model of
e.g. Athletics leagues that help individuals culture Starbucks could be considered to
self-interests. have a ……..
Analyse the importance of organisational culture
to the success of Starbucks. [9] This means that …………. connectives
Make reference to Hardy’s model of culture when
writing your chain of analysis
Hofstede’s Model of National Cultures

3.10 Managing Strategic Change

What you need to know
• The importance of organisational culture
• Cultural models should include:
• Handy’s task culture, role culture, power culture and
person culture
• Hofstede’s national cultures
 What are Hofstede’s forms of national cultures?

https://www.youtube.com/watch?v=QzgK-KinaEk https://www.youtube.com/watch?v=Cr1c4_1yaWE
Introducing Geert Hofstede
Dutch social psychologist, former
IBM employee, and Professor
Emeritus of Organizational
Anthropology and International
Management at Maastricht
University in the Netherlands,
well known for his research
on cross-cultural groups and
organisations.
Hofstede’s Study at IBM
• Hofstede carried out research
amongst over 100,000
employees working around the
world for IBM
• Attempted to categorise
cultures of different
nationalities working at IBM
• Hofstede has extended the
categories to six based on his
latest research
 What are Hofstede’s forms of national cultures?
Individualism v Collectivism

Power Distance

Short-termism v Long-termism

Masculinity v femininity

Uncertainty avoidance

Indulgence v Restraint

https://www.youtube.com/watch?v=QzgK-KinaEk https://www.youtube.com/watch?v=Cr1c4_1yaWE
Individualism v Collectivism
• Some societies value the performance of individuals
• For others, it is more important to value the performance of the team
• Has important implications for financial rewards at work (e.g.
individual bonuses v profit-sharing for bigger groups)
Power Distance (PD)
• This considers the extent to which inequality is
tolerated and whether there is a strong sense of
position and status
• A high PD score would indicate a national culture that
accepts and encourages bureaucracy and a high respect
for authority and rank
• A lower PD score would suggest a national culture that
encourages flatter organisational structures & a greater
emphasis on personal responsibility and autonomy
Long-term orientation
• This category is concerned with the different emphases
national cultures have on the time horizons for business
planning, objectives & performance
• Some countries place greater emphasis on short-term
performance (so-called short-termism), with financial and
other rewards biased towards a period of just a few
months or years.
• Other countries take a much longer-term perspective,
which is likely to encourage more long-term thinking.
• The key implication of this category is the impact on
investment decisions and risk-taking
Masculinity v Femininity
• This slightly unfortunately-named category considers the differences
in decision-making style
• Hofstede linked what he called a “masculine” approach to a hard-
edged, fact-based and aggressive style decision-making
• By contrast, ”feminine” decision-making involved a much greater
degree of consultation and intuitive analysis
Uncertainty Avoidance
• This category essentially considers the different attitudes to
risk-taking between countries
• Hofstede looked at the level of anxiety people feel when in
uncertain or unknown situations
• Low levels of uncertainty avoidance indicate a willingness to
accept more risk, work outside the rules and embrace change.
This might indicate a more entrepreneurial national culture
• Higher levels of uncertainty avoidance would suggest more
support for rules, data, clarity of roles and responsibilities etc.
These cultures might be less entrepreneurial as a
consequence
Indulgence v Restraint
• Indulgence stands for a society that allows relatively free gratification
of basic and natural human drives related to enjoying life and having
fun
• Restraint stands for a society that suppresses gratification of needs
and regulates it by means of strict social norms
Some Selected Hofstede Culture Indictors
Power Individualism v Masculinity v Uncertainty Long-term Indulgence v
Distance Collectivism Femininity Avoidance Orientation Restraint

Australia 38 90 61 51 21 71

China 80 20 66 30 87 24

UK 35 89 66 35 51 69

India 77 48 56 40 51 26

South Korea 60 18 39 85 100 29

Singapore 74 20 48 8 72 46

U.S.A. 40 91 62 46 26 68

Source: The Hofstede Centre, 2016 https://www.youtube.com/watch?v=ySkm_cIsAsM

A manager from the UK is moving to South Africa to lead a team of local staff. Power distance refers to the way in which power
Analyse how the difference in cultural dimension of power distance might affect her
management style. [9]
is distributed and the extent to which the less
powerful accept that power is distributed
unequally. According to Hofstede’s model
employees in some cultures accept a higher
degree of unequally distributed power than do
employees in other cultures.

For a HIGH power distance culture ….. PeCan

However, for a LOW ……. PeCan

A manager from the UK is moving to South Africa to lead a team of local staff. Analyse how the difference in
cultural dimension of power distance might affect her management style. [9]
A manager from the UK is moving to South Africa to lead a team of local staff.
Analyse how the difference in cultural dimension of power distance might affect her
management style.
For a HIGH power distance culture ….. PeCan

In a high power distance culture the relationship between bosses

and subordinates is one of dependence. People in high distance
countries tend to believe that power and authority are facts of
life. These cultures teach their members that people are not equal
in this world and that everybody has a rightful place. Leaders are
therefore expected to resolve disputes as well as make all the
difficult decisions. Subordinates will simply comply with their
leader rather than challenge him or her or try to arrive at their
own solutions in dealing with conflict. They seldom challenge
their leaders power.

However, for a LOW ……. PeCan

In a low power distance society the relationship between bosses

and subordiantes is one of interdependence. In these countries
there is a preference for consultation and subordinates will quite
readily approach and contradict their bosses. The parties will
openly work towards resolving any dispute by stating their own
points of view. If they cannot come to a satisfactory conclusion,
they may choose to involve a mediator. Leaders actually
encourage independent thought and contributions to problem
solving and expect (within reason) to be challenged.
Essay Questions
To what extent will a multinational
company have to adapt its leadership
styles in response to different national
cultures? Justify your answer
[25] [= 4+5+6+10]

Essay Planning

Hofstede’s forms of national cultures? _____________________________________________________________
Individualism v Collectivism
Power Distance
Short-termism v Long-
termism
Masculinity v femininity
Uncertainty avoidance
Indulgence v Restraint
To what extent will a multinational company have to adapt leaderships
styles in response to different national cultures? Justify your answer
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
Essay Questions
How easy do you think it is for a new
chief executive to change the culture of
an organisation quickly? Justify your
answer [25] [= 4+5+6+10]

Essay Marking
Culture can be defined as the ‘way things are done around here’ and in many How easy do you think it is for a new
firms this culture can be deeply embedded. A businesses culture will impact chief executive to change the culture of
on all areas of its operations and the easy with which a culture can be
an organisation quickly? Justify your
change would depend on many factors
answer [25]
The appointment of a new chief executive is always a significant event –
 
whether it is a head teacher of a school or a leader of a major multinational. Read the following response –
In many ways it is easier when an external candidate is recruited. The danger Identify clearly the use of connectives and
of an internally recruited CEO is that this individual is likely to be entrenched of real business examples.
in the old culture and arguably it will be harder for this person to change
that culture and embrace change. An externally recruited CEO is likely to Look for the PeCan elements in the
bring in new ideas and experience from previous businesses and have developing the analysis.
greater freedom to manoeuvre, not having had the time to forge
Also consider the mini evaluation being
relationships and build up either friends or enemies in the firm. However,
made – PiE
this can lead to a lack of trust in the new CEO and there may be resistance.
The key issue here is to do with the timing. Any organisation that wishes to
Then write a second paragraph for this essay
change quickly is likely to face difficulties. When Tim Cook took on the
Take a point from the factors that could
responsible after Jobbs at Apple, he was able to continue the businesses
influence the culture of a business or one of the
success and growth because of the positive culture of change already
‘classes’ of culture from Hardy’s model.
embedded in this high tech business. This shows that the very nature of the
Adopt a PeCan PiE approach
business could be both a benefit and drawback for any new CEO wishing to
make a strategic change.
 
Stephen Elop, the CEO at Nokia, made a public statement about how the business needs to
change its culture and to do this very quickly. The fact that Nokia is part of a market where
technological change is crucial is very important. The constant need to innovate and invest huge
amounts in R&D means that such firms must reinvest in products that have ever-shorter
product life cycles. Nokia has grown to such a size that it now faces diseconomies of scale. The
latest challenges have been not only difficulties in coordination and communication but also a
lack of clarity in terms of objectives. Smaller, start-up businesses are more flexible and willing
to embrace and shape technological change to a greater extent than larger firms such as Nokia.
As a result, Android phones have stolen market share away from Nokia. The CEO has urged the
firm to react quickly, but the company has lost its dominant position and it will be difficult to
implement rapid changes. One of the key points in favour of Nokia’s ability to respond is the
fact that since its inception as a tree felling and toilet paper manufacturer, it has repeatedly
needed to react to the changing market place, gaining plenty of experience of shifting its
culture and objectives. However, it could be argued that such a shift is much harder to engineer
now, since the firm has become a global manufacturer rather than simply operating in Finland.
 
The nature of the firm’s objectives is also a significant factor, as
is the type of industry in which the firm operates. Birds Eye has
been a major player in the frozen food industry for many years
and 90% of UK households have at least one Birds Eye product
in their freezer. The organisation has confronted many
challenges recently, such as having to adapt to changing trends
in buyer behaviour and the demand for sustainable fishing,
which has directly affected its supply chain. The willingness of
the firm to innovate through new product development is an
example of a business that has accepted the changing needs of
customers and reacted accordingly.
 
All firms need to respond to their external environment, and
the timing of any change is important. If a firm can drive the
change and become an early adopter of any new technology
for example, this will lead to a dynamic corporate culture that
accepts the inevitability of change and adapts as necessary.
However, even these firms will find rapid change a challenge. I
personally believe that the appointment of a new CEO from
outside the firm is likely to bring about culture change more
swiftly than an internally promoted CEO. This will be important
for firms that are looking to reinvent themselves and embrace a
new culture.
 3 Steps to Better Evaluation - AJIM
ATQ Level Descriptor
4+5+6+ 10
Justify
It depends on
3 Good evaluation
Most important point 2 Reasonable evaluation
1 Limited evaluation

Step 1: ‘Soft’ evaluation. To what extent do you agree or disagree with the statement in the
question?
Step 2: Based on prior analysis and application. Explain why you have reached this conclusion,
justify your answer by considering the most important issue. This should be based upon the
analysis and application that you have already used.
Do not bring in new lines of argument or new application in your evaluative conclusion – this
should be included in your analysis.
Step 3: It depends on. Mention what the overall issue depends upon – influence of existing
leadership, culture etc. Only chose what you consider to be the most important point here and
remember to support with appropriate example(s)
Essay Questions
To what extent do you think the business
will also need to change its leadership in
order to successfully change its culture
[25] [= 4+5+6+10]

Essay Marking
https://
www.tutor2u.net/business/blog/revision-quiz-bu
siness-culture
https://
www.tutor2u.net/business/quiz/culture/quiz.htm
l
You should now know
The importance of organisational culture

Cultural models should include:

Handy’s task culture, role culture, power
culture and person culture
Hofstede’s national cultures
Changing Organisational Culture
3.10 Managing Strategic Change
Why does organisational culture need to change as a
business grows?
Why Change culture:

Improve Business Performance

• Declining profits and sales

• Inadequate returns on
investment
• Low quality or standards of
customer service
 Why Change Culture:

Respond to Significant Change

• Market changes (growth, competitors)

• Political & legal environment
• Change in societal views
• Change of ownership (e.g. takeover)
• Change of management or leadership
(e.g. a new CEO)
• Economic conditions (e.g. downturn)
Signs That Organisational Culture May Need Changing (1)

• Internal fighting; management criticism

("us & them mentality")
• High levels of voluntary staff turnover &
hard to retain top talent
• Greater absenteeism
• Processes become more bureaucratic
Signs That Organisational Culture May Need Changing
(2)

• Innovation is no longer valued

• Evidence of declining customer service
• Leadership show double standards or decision-
making becomes inconsistent
• Communication becomes more closed and
restricted
Examples of Complacent Culture that Needed to Change?
• Kodak: too late to embrace the
rapid shift from film to digital
photography
• Nokia: long-time dominant market
leader in mobile phones failed to
spot fast-moving challengers
• Sony: silo mentality arising from
market leadership reduced the
incentive & energy to innovate
Assessment style Question
A small start up has grown over time to
become one of the biggest firms in its
market. To what extent is it inevitable
that the culture of a business will change
over time as its grows significantly
[25 = 4+5+6+10]

Now you have considered WHY .

Plan your essay answer
 Quick Plan

To what extent is it inevitable that the culture of a business

will change over time as its grows significantly

Areas:
 Culture changes as operations become more complex
 New leadership/management
 Influence of founder becomes less important/fades
 More competition as becomes market leader
 Pace/change in innovation to sustain leadership
Assessment style Question
A small start up has grown over time to
become one of the biggest firms in its
market. To what extent is it inevitable that
the culture of a business will change over
time as its grows significantly
[25 = 4+5+6+10]

Write an answer to this question.

Using the techniques covered so far ….
top/tail of paragraphs, PeCAn PiE using
appropriate connectives & AJIM
Business Strategy – Culture
It can be suggested that Lego already has a strong culture and that it is
particularly based on openness and trust. That implies that communication
between managers and employees needs to be frequent and responsive.
Managers would therefore need to ensure that Lego employees are fully
aware of the mission, aims and objectives of the business as well as its
performance. Openness might be achieved by making performance data
widely available to all employees rather than just the managers who have
responsibility for achieving specific objectives. Trust could be built through a
culture of honest feedback between managers and employees, including
through performance appraisal. By consistently taking these actions, it is
more likely that employees will share the culture of openness and trust.
The core values of Lego are described as being about “Creativity,
Imagination, Fun, Learning, Quality and Care”. A key action that managers
would need to take would be to ensure that the recruitment, selection and
training processes in Lego are consistent with sharing and instilling these
core values in new recruits. For example, the induction training for new
employees is likely to involve a close focus on these core values, including
opportunities for fun team-building activities and new employees learning
about Lego’s processes for achieving quality. Recruitment and induction
training will be particularly important for Lego managers responsible for
building the new teams in China and Mexico where employees might be
used to a different kind of culture at work
Strategic Implementation
3.10 Managing Strategic Change
Strategy – Implementation
Overview of the Strategic Planning Process

Set corporate objectives

Determine what should be

done to accomplish them

Implement the plan

Monitor and evaluate the

results
 Types of Plan in Business
• Strategic plan - sets out the overall direction for the
business in broad scope
• Business plan – the actions that a business will take to to
achieve corporate objectives
• Operational plan
• Details how each objective is to be achieved
• Specifies what senior management expects from specific
departments or functions
 A Reminder of How a Business Sets Its Strategic Direction

• Vision
• Non-specific directional and motivational guidance for the entire
business
• What will the business be like in five years time
• Mission statement
• An business’s reason for being
• It is concerned with the scope of the business and what
distinguishes it from similar businesses
• Objectives
• SMART objectives
• Goals
• Specific statements of anticipated results
 Levels of Business Planning
Strategic Business Operational
Level Business wide Business unit Functional area
Focus Direction and Direction and Resources and
strategy for strategy for the action for
whole business business unit functional area

Nature Broad and More detail on Specific to the

general goals and tasks function

Time Long term 1-2 years Up to one year

horizon 3+ years
Evaluating Strategic Performance
In order for a business to be able to evaluate its
strategic performance, it needs…

Data to measure
A strategic plan
performance
with measurable
against those
objectives
objectives
The Key Management Processes Involved in Evaluating
Strategic Performance
Business Planning

Budgeting & Variance Analysis

Regular Performance Reviews Helps

Monitoring of External prevent
Environment STRATEGIC
Financial & Other Ratio DRIFT
Analysis

Benchmarking
EXPLAIN what is meant by strategic implementation

Value of
How Leadership
to Value of
implement communication
Type of
Strategic change organizational
structure
Strategic Implementation
Topic links On a sheet of A4
paper create a ‘set of
notes’ to explain
Value of what is meant by
How to
LeadershipValue of
implement communication strategic
Type of
Strategic organizational implementation
change structure
Strategic
Implementation
Note making – Cornell Technique

Make (Cornell) notes to explain the topic area

of ‘Strategic Implementation’.

www.youtube.com/watch?v=ErSjc1PEGKE

Focus your KEY notes on the need for change, the

value of leadership-communication & structure
on the implementation of change and also the
importance and effectives of successful
implementation of a businesses strategies.

Answer the questions overleaf to consolidate your K & U.

Network (Critical Path) Analysis
3.10 Managing Strategic Change
What you need to know
• The value of network analysis in strategic
implementation
• Network analysis to include:
• understanding and interpreting network diagrams
• amendment of network diagrams

• identifying the critical path and total float

Network or Critical Path Analysis (“CPA”)

CPA is a project analysis

and planning method
that allows a project to
completed in the shortest
possible time
What is the Critical Path?

The sequence of project activities

which add up to the longest
overall duration
The critical path determines the
shortest time possible to complete
the project
The Network Diagram – Key components

7 H 15
4 5
10 8 20
Drawing the network
Component Description
Node A circle that represents a point in time where an activity is started or
finished. The node (circle) is split into three sections:
The left half of the circle is the unique node (activity) number – the
network diagram draws these in order
The top right section shows the earliest start time (EST) that an activity
can commence based on the completion of the previous activity
The bottom right section shows the latest finish time (LFT) by which the
previous activity must be completed

Activities An activity is something that takes time. An activity is shown on the

network as a line, linking the nodes (circles). A description of the activity,
or a letter representing the activity, is usually shown above the relevant
line

Duration The length of time it takes to complete an activity – shown as a number

of the relevant units (e.g. hours, days) under the activity line
Implementing a revision strategy – for
exams
Task Activity Dependent on Duration
(hours)
A Gather lesson notes and read Starting activity 10
through
B Identify gaps in knowledge Completion of task A 3
C Research online sources Completion of task B 5
D Procrastinate and browse Facebook Completion of task B 30
E Write revision plan & revision notes Completion of task B & 12
C
F Practice past exam papers Begin when E complete 8
G Complete last minute cramming 15
 Identifying the critical path

18E 30
4 5
23 12 35
C F
5 8
0
1 A 10 B 13 43 58
0 G
2 3 6 7
10 10 3 13 43 15 58

D
30

Represents the Critical Path for this Project

Identify the CPA
• Data Response 1 (Pg 628) • Data Response 2 (Pg 628-629)
Critical Path Analysis
• Draw a network

• Calculate the critical path

• Calculate a float
 CPA & non critical activities
• Activities with 0 (zero) cannot be delayed without
delaying the entire project

• Such activities represent the “critical path”

• On the critical path, activities have an equal EST and LFT
• These have no float/leeway
CPA & non critical activities
• Non critical activities will have a float/leeway.
• This means that these activities have an
element of flexibility and times/resources can
be better scheduled.

• Read your textbook and explain what is meant

by the term float.
• Explain how a total float is calculated?
Floats
• The Critical path is the route through the network which has no spare
time in any of the activities.
• Some activities in the network may have spare time (FLOAT), which
means that there is some slack available on these activities.
• It might therefore be possible to switch resources from another
activity to help out on the critical activities.
The Float

LFT2 – Duration – EST1

Float
• Total Float
Calculated Float – Exam Strategy

Activity LFT2 Duration EST1 Total Float

A 10 10 0
B 13 3 10
C 23 5 13
D 43 30 13
E 35 12 18
F 43 8 30
G 58 15 43
Using the activities from these question – calculate the
total float for the non-critical activities
• Data Response 1 (Pg 628) • Data Response 2 (Pg 628-629)
 Uses of Critical Path Analysis
• Estimate and minimise project time
• Support project costing and evaluation
• Plan and organise resources
• Prioritise tasks
• Help provide direction (more motivating?
CPA - Evaluation
• CPA is a planning and implementation tool. Whilst it can help ensure a project is
completed as quickly as possible, and resources used as efficiently as possible, it
does depend on the accuracy of the information used.
• Just drawing up a CPA will not in itself ensure a project runs to plan; most
projects encounter some delay or something unexpected, so managers need to
use tools such as CPA to monitor the project and take appropriate actions to
rectify any foreseeable problems.
• Helps with time and resource management to ensure a successful strategic
implementation.
Network Review …
• Understand the key requirements of critical path
analysis (CPA)
• Understand the purpose, benefits and limitations
of using such a tool
• Be able to apply the principles of CPA to a given
scenario
• Arrive at supported and informed judgements as a
result of considered analysis
 • Identify the
problem(s)

Lets get STRATEGIC! •

•
•
Objective(s)
Plan/proposal
Implications on its
operations
Lets get STRATEGIC!
Lets get STRATEGIC!
Planning an Answer ……..

[20 marks]

Format
• Intro – Decision to be made and why using this technique will help it – linked to both corporate & functional objectives
• Explanation of CPA, purpose/functions for this decision
• Calculation of CPA from network diagram & project duration
• Determination impact delays have on CPA/project using knowledge of float/leeway
• Consequences of this for the business
• ATQ – include however/Depends on …..
Strategy – Implementation
Topic links Complete the review
questions linked to
this topic on the sheet
Value of provided.
How to
LeadershipValue of
implement communication
Strategic Type of
organizational
change structure
Strategic
Implementation
Model Mapping
• You now need to start (seriously) thinking about which models and theories you could
use to support your answers
• model mapping is worth undertaking to support this. There are a range of models and
theories that you could use to support your lines of analysis and evaluation.

• Kotter and Schlesinger could be used, in relation to potential resistance to change and
how this might affect the success of a merger/ takeover not to mention Greiner and
issues with managing growth.
• The value of ratios and financial data when assessing financial performance could be
balanced using Kaplan and Norton and/ or Elkington’s Triple Bottom Line.
• An evaluative question on the merits of overseas expansion could be supported by
Ansoff and/ or Bartlett and Ghoshal.
Model Mapping

Using the resource provided and

a post it note. Complete any
notes for the model/theory and
write a brief summary of the
model/theory and what area of
analysis your could use it for.

The value of ratios and financial

data when assessing financial
performance could be balanced
using Kaplan and Norton and/
or Elkington’s Triple Bottom
Line.
Topic Revision Aid
 Jack s
Louie
Tom
Rory
Jack js
Adam
Frank
Pete
Matt
George
Lydia
Tori
Chloe
Lucy
Karl
Charlotte
Joe
Jack c

http://www.classtools.net/education-games-php/fruit_machine
Topic Assessment Questions
To what extent do you think that the
culture of an organisation determines its
success in a changing external
environment? [25 = 4+5+6+10]

Write an essay plan

Write a conclusion for this easy based

on the points/analysis in your plan
 ASSESSMENT ESSAY

A small start up has grown

over time to become one of
the biggest firms in its
market. To what extent is it
inevitable that the culture
of a business will change
over time as its grows
significantly [25]

Planning an answer:

To what extent will a multinational company

have to adapt its leadership styles in
response to different national cultures?
Justify your answer. [25]
Assessment style Question
A small start up has grown over time to
become one of the biggest firms in its
market. To what extent is it inevitable
that the culture of a business will change
over time as its grows significantly
[25 = 4+5+6+10]

Why does organisational culture need to

change as a business grows?
Jot down a few points …
 Examples of Culture – Change!
• Read through the textbook (603-609)
• On the revision card under the title ‘Business
Culture’ produce examples of businesses and
their culture
• ie. Banking Industry (Barclays, Lloyds, Royal Bank of
Scotland etc.) had a cautious culture to an
risk/lending that was considered old fashioned. The
bonus culture changed this approach as short –term
profits/gains meant bankers became wealth and
through this cultural greedy approach to making
money there was a financial collapse in 2008/9 that
ended this this culture
https://www.youtube.com/watch?v=7g-BLzjEbXU