OCR F297 Strategic Management Case Study Thread 2012

... Discuss the role of strategic management in achieving slsl's objective. As we did one in class and we had to dicuss their objective being smart and talk about the different info they have gathered, but say that they havent got a swot analysis which could help them meet their objective.

The one I did was "Discuss the role of strategic management in helping to make the strategic decisions facing SLSL."

Here is my response:

SM involves analysis of the market, environment and functional areas of a business in order to achieve objectives. For SLSL, the objective is a 4% revenue increase by the end of the financial year. There are three strategic options facing SLSL: moving away from the high street to a website-only agency; expanding into MH; and diversifying into lettings management. Therefore, the role of strategic management for SLSL is to determine which of the three options is more appropriate for SLSL in order to achieve its objective in terms of acceptability to stakeholders, suitability to the market in which it operates, and feasibility in terms of implementation. Without SM, SLSL’s decisions might be destructive to the business as SM provides a detailed analysis of SLSL’s position in the market and the internal and external capabilities of the business.
For the option of expanding into MH, SLSL’s strategic planning will involve a detailed analysis of the environment and the potential for MH to meet the objective. This is because every strategic decision of a business must move towards achieving a business’ objective(s). According to Table 5, there is a potential for the move to be financially beneficial in the long term, especially as there is a 15% projected increase of houses in the next ten years, meaning that there will be 1,145 houses at an average price of £245,000 [L3]. SLSL’s strength is that the business is already well-known and the employees are able to provide a quality service, so SLSL might find establishing an office in MH less difficult. The expertise of the staff of SLSL matches up to the opportunity for SLSL, however there are already 11 other estate agencies meaning that SLSL will be entering a highly competitive market, so Alistair has to ensure that they are internally able to achieve some competitive advantage over other estate agencies, perhaps with the logoed uniform and design of the office. Based on this, strategic management is clearly beneficial for SLSL as the decision could be made without a clear understanding of the market environment of MH, and therefore causing problems for SLSL in the short term at least [L4].
Similarly, for the option of diversifying into lettings management, a detailed analysis of the changes in the economy and SLSL’s internal capabilities will be effective in determining whether the move is a potentially appropriate strategy. The housing market has seen a decline in house sales, and more people buy to let and rent houses now. For SLSL, there is a scope for diversification, but can the employees succeed in a lettings market? Seeing as LM also deals with property, the employees are substantially trained in this; but they might need specific training in dealing with tenants, and in the laws and terms concerning the lettings market. With strategic management, Alistair and Penelope can decide what branch to devote to LM and which employees to train for that aspect of the company. The objective is a short term one as it is to be achieved by the end of the financial year, therefore with a detailed analysis of the fluctuations in the economy regarding house sales and letting, SLSL can determine whether diversifying will achieve the objective in the short term, and possibly in the long term if macro-economic influences don’t experience any significant changes. Therefore, SM is highly important in helping SLSL decide what option is best for the business in both the short term and long term [L3 & L4].
SLSL’s objective is specific and measurable, and based on the information provided in the case study as well as a detailed analysis of the market and internal/external capabilities of SLSL, Alistair and Penelope will be able to make effective strategic decisions. To achieve the objective, diversifying into LM is recommended because one branch can carry this out, preferably Stamton, and with the success of both Oakford and Upham, there is a high chance that SLSL will achieve the 4% revenue increase.

Key: SM – strategic management; MH – Market Harworth; LM – lettings management

(edited 11 years ago)

Reply 201

Moyosola

Original post by pk92

That would be SO helpful! But if you just give me a little plan that should be fine :smile:

don't want to be wasting your time :smile:

Also have you done a question on the Marketing strategy of SLSL?

Oops. Already typed it out. I planned to send it to my classmates as well. I haven't done a marketing strategy one, but I should do one very soon as my teacher strongly believes a marketing question might come up. Have you done one?

Reply 202

oli_042

Original post by Moyosola

Oops. Already typed it out. I planned to send it to my classmates as well. I haven't done a marketing strategy one, but I should do one very soon as my teacher strongly believes a marketing question might come up. Have you done one?

I haven't done a marketing one yet either, but my teacher said they thought it was unlikely to come up because it isn't in the specification and there's not a lot in the case-study about it as well. If you do have an answer though or even a plan could you share? Thank you :smile:

Reply 203

chica123

Original post by ameena.milly

Can anyone help me on the bonus systems.

What you would write for a answer on a question about bonus.

Thank you

This was posted from The Student Room's iPad App

We did this question: Recommend whether SLSL should introduce a branch based bonus linked to sales.
Heres what i put in each paragraph:
1.
Say what a bonus is - i.e. motivates staff
They pay £53,062 a year to staff = £4422 per staff all year which is £1105 quarterly.
2.
Then i spoke about Maslows hierarchy and herzbergs 2 factor theory linking how it SLSL should take them into account and if they do it will help them meet their 4% objective
3.
Then i spoke about the branch based bonus will affect some branches more than other:
if they do the bonuss by sales volume of each branch then stampton will receive a higher bonus (refer to table 4 in case study)
If they do the bonus by sales value then upham and oakham will receive higher bonus because they have higher prices houses.
However whether the bonus is by value/volume SLSL must take into account that stampton makes the lowest profit marging of 13.8% compared to 56.5% and 35.7% even though they are making the most sales
4.
Then i spoke about even though upham is in a higher end market they are not making as much profit as they should be making and therefore if the binus system changes upham could get a lower bonus
5.
I spoke about how much salary staff get and that the bonus is 27.5% of their salary and then i spoke about how if the bonus changes can impact motivation etc.
6.
I spoke about how individual performance is not practical because team work is required etc.
7.
conclusion: stick to a quarterly bonus paid on company profits to avoid rapid changes and conflicts and tension amongst staff and if they change it would be difficult to manage performance.

Reply 204

Moyosola

Original post by oli_042

I haven't done a marketing one yet either, but my teacher said they thought it was unlikely to come up because it isn't in the specification and there's not a lot in the case-study about it as well. If you do have an answer though or even a plan could you share? Thank you :smile:

Funny enough, this was my response to my teacher. I argued that there isn't enough in the case study to answer a marketing question.
Although, snooping today, the Zig Zag revision pack has a section on Marketing, but I can't read it properly as they blocked half the page unless you buy it. So I'm going to try and work hard at finding something to study regarding marketing.

In the meantime, check this out http://www.zigzageducation.co.uk/samplepdf/Business%20and%20Economics/s4575.pdf - difficult to read but fairly helpful!

Reply 205

chica123

Original post by Moyosola

Oops. Already typed it out. I planned to send it to my classmates as well. I haven't done a marketing strategy one, but I should do one very soon as my teacher strongly believes a marketing question might come up. Have you done one?

Hey, i haven't done one yet either but my teacher thinks one will definitely come up to as that is the only essay table 1 can be used for. I am going to try and do one in the next few days hopefully..so annoying there is so much! :frown:

Reply 206

Moyosola

Original post by pk92

Thankyou! That was really helpful! But i feel like i have done it completely wrong now! I shall re-write it and see my other teacher. Thanks again! :smile:

Oh don't feel that way. Show your teacher mine and see his/her reaction. I think different people might react differently, so don't feel like you've done it wrong!

Reply 207

chica123

Original post by Moyosola

Oh don't feel that way. Show your teacher mine and see his/her reaction. I think different people might react differently, so don't feel like you've done it wrong!

Yeah i will do :smile:

by the way have you done the critical path analysis? I was just looking at the zigzag notes and i saw the CPA part and the notes on there are different to the what i've got? ahhhhhh :|

I can't really figure out what the marketing part is all about so confusing with half of it missing!

Reply 208

chica123

Original post by Moyosola

Oh don't feel that way. Show your teacher mine and see his/her reaction. I think different people might react differently, so don't feel like you've done it wrong!

Ahh ive just realised that you've done question 6 from the APT notes and we've done question 4 which focuses on how strategic management can help them achieve their objective so that might be why? Not sure though :l

Reply 209

Moyosola

Original post by pk92

Ahh ive just realised that you've done question 6 from the APT notes and we've done question 4 which focuses on how strategic management can help them achieve their objective so that might be why? Not sure though :l

Yup, probably. But the questions seem similar enough. But do ask your teacher(s).

Original post by pk92

have you done the critical path analysis? I was just looking at the zigzag notes and i saw the CPA part and the notes on there are different to the what i've got? ahhhhhh :|

ZigZag's CPA is different because they changed the numbers in the actual case study.

Reply 210

Moyosola

Original post by pk92

Hi - i have just done question 18 and i got that it would take 171 days to sell the property, is that what you got? :smile:

I hope i have finally got the hang of this!! :redface:

I've just done this and I got 174. How did you get 171? i got 174 because I put 158 in Node 9 insted of 155. This is because the activities entering node 9 are more than one, so the highest figure must be taken.

Reply 211

chica123

Original post by Moyosola

I've just done this and I got 174. How did you get 171? i got 174 because I put 158 in Node 9 insted of 155. This is because the activities entering node 9 are more than one, so the highest figure must be taken.

I put 155,
i got 77/77 for node 6,
3/155 node 7,
97/155 node 8,
155/155 node 9,
92/155 node 10.

And then 161/161 for node 11 and 171/171 node 12.

Reply 212

Moyosola

Original post by pk92

I put 155,
i got 77/77 for node 6,
3/155 node 7,
97/155 node 8,
155/155 node 9,
92/155 node 10.

And then 161/161 for node 11 and 171/171 node 12.

I got 97 for Nodes 8 & 10 because of the 97 in Node 6. How come your Node 6 is 77? Because 87+10 = 97 and we are changing 62 in Viewing to 82.

Reply 213

chica123

Original post by Moyosola

I got 97 for Nodes 8 & 10 because of the 97 in Node 6. How come your Node 6 is 77? Because 87+10 = 97 and we are changing 62 in Viewing to 82.

Sorry i have just realised what i did! I forgot that teh finance took 61 days and therefore that would be the highest .. thankyou!

But what have you put in your nodes? just to make sure

Reply 214

Moyosola

Original post by pk92

Sorry i have just realised what i did! I forgot that teh finance took 61 days and therefore that would be the highest .. thankyou!

But what have you put in your nodes? just to make sure

Node 5 = 87/87
Node 6 = 97/97
Node 7 = 3/158

Reply 215

chica123

Original post by Moyosola

Node 5 = 87/87
Node 6 = 97/97
Node 7 = 3/158

I am sooooo sorry for the confusion i have just realised i wrote half of the wrong one out and tht i forgot to take into account because of the change in finance to 61 days that should be the highest so i got:

5 = 87/87
6= 97/97
7= 3/158
8 = 97/158
9=155/158
10=97/158
11=164/164
12=174/174

Reply 216

Moyosola

Original post by pk92

I am sooooo sorry for the confusion i have just realised i wrote half of the wrong one out and tht i forgot to take into account because of the change in finance to 61 days that should be the highest so i got:

5 = 87/87
6= 97/97
7= 3/158
8 = 97/158
9=155/158
10=97/158
11=164/164
12=174/174

This seems just about right except my Node 9 is 158/158.
Does this then mean that although the figures were changed, the critical path remains the same as the original?
How do you also calculate the float? The APT revision pack says LFT-Duration-EST, but I just do LFT - EST.

Reply 217

chica123

Original post by Moyosola

This seems just about right except my Node 9 is 158/158.
Does this then mean that although the figures were changed, the critical path remains the same as the original?
How do you also calculate the float? The APT revision pack says LFT-Duration-EST, but I just do LFT - EST.

would it be 158/158 because all the way through the top has been the same as the bottom except when there is more than 1 activity happening at the same time.. it makes sense in the original as its 77+58=135/135

i do it LFT-Duration-EST
so for D i got 138
G = 0
J = 42

Reply 218

Moyosola

Original post by pk92

would it be 158/158 because all the way through the top has been the same as the bottom except when there is more than 1 activity happening at the same time.. it makes sense in the original as its 77+58=135/135

i do it LFT-Duration-EST
so for D i got 138
G = 0
J = 42

This might be confusing, but no. Because activities D G H and J all run into node 9, so, following APT's steps, Activity D will finish by 20 (3+17), G by 158 (97+61), H by 155 (97+58) and J by 116 (97+19) but we don't enter these into the nodes, we just write them by the side. So because 158 is the highest of all sums, and Activity K cannot start until DGHJ are finished, we enter 158 in Node 9's EST.
This way, Activity K becomes 164 (158+6) and L becomes 174 (164+10)
The LFT is automatically the same as the EST, so the LFT of Node 12 is 174, and working backwards, Node 11's LFT is 164. Node 9's LFT will therefore become 158 (164-6), and because it can't start until DGHJ are finished, the LFTs of all those nodes will be 158. Hence; 3/158, 97/158, 158/158 and 97/158.

Reply 219

Moyosola

Original post by pk92

would it be 158/158 because all the way through the top has been the same as the bottom except when there is more than 1 activity happening at the same time.. it makes sense in the original as its 77+58=135/135

i do it LFT-Duration-EST
so for D i got 138
G = 0
J = 42

what is your critical path/

OCR F297 Strategic Management Case Study Thread 2012

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