CIMA E1 Official Learning System - Enterprise Operations Aug 2009

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ENTERPRISE OPERATIONS E1

322

INDEX

Business:

and markets, 19

and politics, 30–1

Business ethics versus CSR, 25

Business-to-business (B2B) marketing,

143, 160

Business-to-consumer (B2C) marketing,

143, 160

Buyer behaviour, 144

Buying process, 143–4

CAD see Computer aided design (CAD)

Cadbury report, 27

CAM see Computer aided manufacturing

(CAM)

Capacity management, 109–11

Career planning activity, 218–19

Carlsberg, 13

Carnall, C., 52, 53

Carrington, L., 223, 227

Cash cows products, 171

Cattell 16 PF test, 206

Cause marketing, 138

CBA see Cost beneﬁ t analysis (CBA)

Champy, J., 102

Chance events, role of, 9

Changeover approaches, 59

Charities, marketing for, 138

Chartered Institute of Personnel and

Development (2008), 198

Checkpoint controls, 58–9

China, 14, 23, 32

Christopher, M., 116

The CIMA Code of Ethics for Professional

Accountants, 201

Clegg, B., 42, 65

Clustering, 9

Coca Cola, 13, 160

Code of Best Practice, 28

Code Principles and Provisions, 28

Cognitive paradigm, 144

Cognitive tests, 206

Cohen, D., 206

Collectivism:

versus individualism, 20–1, 22

Combined Code, 28

Combined theories, 197

Communitarianism see Collectivism

Comparative advantage, 6–7, 8

Competence, 9

Competitive advantage, 7–9

The Competitive Advantage of Nations

(1992), 7

Complementary competences, 9

Computer aided design (CAD), 42, 110

Computer aided manufacturing (CAM),

42, 110

‘Confucian dynamism’, 21

Connected stakeholders, 24

‘Constructive dismissal’, 220

Consumer behaviour, 142–3

Consumer marketing, 159–60

Content theories of motivation, 195

Continuous inventory, 109

Contrived tests, 61

Conway, N., 197

Coote, P., 108

Core competence, 9

Corporate citizenship, 26

Corporate governance, 27–9

beneﬁ ts, 29

Combined Code, 28

stakeholders and government, 27

Corporate political activity (CPA)

business and politics, 30–1

developed markets, 31–2

developing markets, 32

relational approaches, 31

transactional approaches, 31

Corporate social responsibility (CSR)

versus business ethics, 25

general principles, 25–6

marketing context, 140–2

international variation, scope for, 26

Corrective maintenance, 61

Corus Steel, 14

COSO, 27

Cost beneﬁ t analysis (CBA), 56

Country and political risk, 32–3

Cousins, P., 84, 88, 105, 109

Cousins, P.D., 86

Cox, 9

CPA see Corporate political activity (CPA)

Crosby, Philip P., 95–6, 127

Cross-cultural education and training, purposes

of, 20

Cross-cultural management, 19

Hofstede, 20–1

managing across cultures, 19–20

models, 21–3

CSR see Corporate social responsibility

(CSR)

Customs valuations, 6

323

ENTERPRISE OPERATIONS

INDEX

Data:

analysis, 42

collection, 42

concept, 42

encryption, 58

evaluation, 42

integrity, 58

interpretation, 42

reporting, 42

Data processing system (DPS), 45, 77

‘Data redundancy’, 47

Database management system (DBMS), 47

Databases:

deﬁ nition, 47

features, 48

DBMS see Database management system

(DBMS)

DDP see Distributed data processing (DDP)

de Jager, M., 54

Decision support systems (DSS), 45

Decision-making process, 44

Deighton, J. A., 163

Demerit goods, 139

Deming, W. Edward, 95

Denton, A., 56, 60

Department of Commerce-led Advisory

Committee on Trade Policy

Negotiations, 31

Deployment chart, 103

Deregulation, 30

Derrick, S., 227

Devanna, M. A., 202

Developed and developing economies, 26

Developed markets, 31–2

Developing markets, 32

Differentiated targeting, 149–50

Diffuse versus speciﬁ c relationship, 22

Digital envelope, 58

Direct changeover approach, 59

Direct mailing, 153

Direct marketing, 154, 162

Direct tax, 15

Directors, 28

Directors’ remuneration, 28

Dismissal see Employment practices

Distributed data processing (DDP), 47

Distribution channels, 162–3

Dogs products, 171

‘dot.com companies’, 50

DPS see Data processing system (DPS)

DSS see Decision support systems (DSS)

E-business, 51, 164

E-commerce, 51, 164

E-mail, 43

E-marketing, 164

‘Economic conception’, 26

Economic nationalism see Protectionism

EDI see Electronic data interchange (EDI)

EIS see Executive information system (EIS)

Electronic data interchange (EDI), 42, 117

Emotional versus neutral relationship, 22

Employees:

and corporate dimension, 198–9

guest model of HRM, 199

improving opportunities for, contributions,

228–30

Employment practices, 220–2

Enterprise resource planning (ERP), 105

Enterprise-wide systems, 47

ERP see Enterprise resource planning (ERP)

ES see Expert systems (ES)

Ethical behaviour:

management of human capital, 199–201

‘Ethical conception’, 26

Europe, 17

European quality foundation model, 99–100

Examination:

format, 255

planning, 253–4

preparation, 253

tips, 254

Executive information system (EIS), 45, 76

Experiential marketing, 174

Expert systems (ES), 45

Expropriation, 32

External failure costs, 96

External stakeholders, 24

Extranet, 51

Fax, 43

FDI see Foreign direct investment (FDI)

Femininity versus masculinity, 21

Financial ﬂ exibility, 232

Financial Services Industry, 15

Fine, J., 156

Firewall, 51, 58

Fiscal policy, 15–16, 17

Fishbone diagram, 112

Five why process, 112

Fleming, J., 53

Flexible manufacturing systems (FMS), 111

ENTERPRISE OPERATIONS E1

324

INDEX

FMS see Flexible manufacturing systems (FMS)

Fombrun, C. J., 202

Ford, Henry, 107

Foreign direct investment (FDI), 13, 14

Foster, D., 20

Free trade:

concept, 4

critics, 4–5

Galloway, L., 84

Gargan, J., 86

Garrity, Jim, 156

Gates, Bill, 12

General controls, 57

Glass, N.M., 94

Global business environment:

comparative advantage, 6–7

competitive advantage, 7–9

corporate governance, 27–9

corporate political activity, 30–2

corporate social responsibility, 25–6

country and political risk, 32–3

cross-cultural management, 19–23

free trade, 4–5

government, role of, 25

international trade, 4

market multinationals, emerging, 11–15

national account balances and monetary

policy, 15–19

offshoring, 10–11

outsourcing, 9–10

protectionism, 5–6

regulation on ﬁ rm, impact of, 29–30

society, role of, 24–5

stakeholders, 24

Globalisation, 11–12

Gold, J., 192

Goldsmith, S., 93

Gould, S., 108

Government, 27

role of, 8, 25

Gratton, L., 194, 222

Gray, R., 157

Greenﬁ eld investment, 13

Gross Domestic Product, 19

Gross National Product, 19

Guerrilla marketing, 156

Guest, D., 197, 198, 199

Habitual decision-making, 145

Hammer, M., 102

Hecksher, E., 6

Hecksher–Ohlin theory, 6

Heineken, 13

Hellriegel, D., 41, 42, 59

Herzberg’s motivation-hygiene (dual factor)

theory, 196

Higgs, 28

High context behaviour, 22

Hilmer, 10

Hilmer, F.G., 10

Hodgetts, 32

Hofstede, Geert, 20–1

Holme, R., 140

Home market, demand conditions in, 8

Houston, F., 136

Human capital, management of, 191

employees contributions, improving

opportunities for, 228–30

ethical behaviour, 199–201

HR planning, 232–5

human resource development, 202

appraisals, 209–13

career planning, 218–19

employment practices, 220–2

induction, 209, 210

recruitment, 203–4, 205

selection, 204–9

training and development, 213–18

human resource management (HRM)

and organisational success, 191

deﬁ nition, 192

employees and corporate dimension,

198–9

eras in managing people, 193

motivation and opportunity, 194–7

psychological contract and retention,

197–8

line managers and HR practices, 230–2

motivation and incentives, 222

reward systems, designing, 223–8

Human resource management (HRM) see

Human capital, management of

Hydrocarbon tax, 16

IBM, 14

Import duties, 16

In-house training, 216

In-tray exercise, 208, 209

Indirect tax, 15, 16

Individualism versus collectivism,

20–1, 22

325

ENTERPRISE OPERATIONS

INDEX

Induction programme, 209, 210

Industrial Revolution, 83, 193

Information systems (IS)

with business strategy, 65–6

changeover approaches, 59

evaluation, 56–7

features, 46

implementation:

challenges in, 55–63

and information, 41

role of, 43–6

IT, contexts and change, 54–5

organisational dependence on, 46

IS trends, in organisations, 47–52

IT enabled transformation, 52–3

opportunity for work teams, 53–4

outsourcing, 64

privacy and security, 57–9

systems implementation, managing, 59–63

Information technology (IT), 42, 54–5, 217

see also Information systems (IS)

Intelligence tests, 206

Interactive marketing, 163

Internal environment, 136, 137

Internal failure costs, 96, 129, 313

Internal marketing, 164–6

Internal stakeholders, 24

International inﬂ uence, and market

multinationals, 13–15

International trade, 4, 16–17

International variation, scope for, 26

Internet, 43, 49, 50, 51

Interviews, 205

individual /one to one interview, 206

panel interviews, 206

sequential interviews, 206

tandem interviews, 206

Intranet, 51

Inventory management, 108–9

‘Invisible hand’, 6

IS see Information systems (IS)

Ishikawa, Kaoru, 111

ISO 14001, 101

ISO 9000:2000, 100, 101

IT see Information technology (IT)

Jobs:

analysis, 203

characteristics model, 229–30

description, 203

Johnson, G., 53, 55, 137

Jones, D.T., 107, 108

Juran, Joseph M., 95

Just-in-time (JIT) techniques, 85, 105–6

Kaizen, 97, 112

Kaplan, R.S., 96

Kent County Council:

performance-related pay, 226

Kirkby, J., 174

Kirkpatrick, D. L., 217

KM Systems see Knowledge Management

Systems (KM Systems)

Knowledge Management Systems (KM

Systems), 49

Kolb, D. A., 213

Kotler, P., 134, 137, 139, 148, 151

LAN see Local area networks (LAN)

Lancaster, G., 139, 143, 170

Lane Keller, K., 151

Leaderless group exercise, 209

Lean management, 107

Lean supply chain, 118

Learned behaviour theory, 145

Learning programmes, 213

Legal environment, 29–30

Levinson, J. L., 156

Levinson, Jay Conrad, 156

Liberalisation, 4–5

Line managers and HR practices, 230–2

Local area networks (LAN), 47, 49

Long, B.G., 86, 87

Low context behaviour, 22

Lynch, D., 113

Lynch, R., 52

M-marketing, 163

MacArthur, K., 141

Macro environment, 136, 137

Macro-political risks, 32

Maerki, Hans Ulrich, 14

Management by objectives (MBO), 212

Management development, 213–14, 218

Management information systems (MIS), 45,

Manufacturing resource planning (MRP),

104–5

Market:

forecasting, 146

ENTERPRISE OPERATIONS E1

326

INDEX

Market: (Continued)

growth rate, 172

multinationals, 11–15

globalisation, 11–12

and international inﬂ uence, 13–15

transition economies, changes in, 13

positioning issues, 145–7

research, 145–7

segmentation, 147–9

Marketing:

B2B, 160

B2C, 143

brand equity, 174

branding, 174

business philosophies, 134

buyer behavior, 144

buying process, 143–4

campaign, 155

charities, 138

concept, 133–4

consumer behavior, 142–3

consumer marketing, 159–60

contexts, 159

corporate social responsibility, 140–2

deﬁ nition, 134

direct marketing, 162

distribution channels, 162–3

e-business, 164

e-commerce, 164

e-marketing, 164

environment, 136–7

experiential marketing, 174

ﬁ nance, 168

human resourcing, 168

interactive marketing, 163

internal marketing, 164–6

market research, 145–7

market segmentation, 147–9

marketing mix, 150–1

non-governmental organisations (NGOs), 138

not-for-proﬁ t context, 137

operations, 168

people, 158

physical evidence, 159

place, 152

planning process, 166

positioning, 149–50

price, 157–8

pricing strategies, 172–3

processes, 159

product development, 169

product life cycle, 169–70

product mix, 151–2

products investment, 170–2

promotional mix, 152

promotional tools, 152

public sector, 138–9

services marketing, 161–2

social marketing, 139–40

strategic marketing, 166–9

targeting, 149–50

theories, 144–5

Masculinity versus femininity, 21

Maslow’s hierarchy of needs, 195–6

Maurer, R., 112

Maxwell, 25

Maxwell Communications Group, 27

Maylor, H., 84, 88, 105, 109

MBO see Management by objectives (MBO)

McDonald, I., 84, 110

McDonald’s Corp., 141

Meall, L., 54

Media and recruitment mechanisms, 204, 205

Medical examinations, selection techniques,

204, 209

Mentoring, 217

Merit goods, 139

Micro environment, 136

Micro-political risk, 32

Mintzberg, H., 89

MIS see Management information systems

(MIS)

MNEs see Multinational enterprises (MNEs)

Modular changeover approach, 59

Monetary policy, 17–19

Motivation:

and human resource management, 194

and incentives, 222–8

theories, 195–7

Volkswagen (VW) Group UK, 222–3

MRP see Manufacturing resource planning

(MRP)

Mulis, H., 223

Mullins, L. J., 161, 194, 195, 233

Multinational enterprises (MNEs), 13

National account balances, 15

business and markets, impact on, 19

ﬁ scal policy, 15–16

international trade, 16–17

and monetary policy, 17–19

National campaigns, 6

National competitive advantage, 9

327

ENTERPRISE OPERATIONS

INDEX

National Social Marketing Centre, 140

Nestle, 13

Network design, 58

Neutral versus emotional relationship, 22

Newsweb Corporation, 31

NFP see Not-for-proﬁ t (NFP) organisations

NGOs see Non-governmental organisations

(NGOs)

Non-ﬁ nancial rewards, 226

Non-governmental organisations (NGOs), 25,

26, 138

Norton, D.P., 96

Not-for-proﬁ t (NFP) organisations, 137, 138,

279

Numerical ﬂ exibility, 231

OCB see Organisational citizenship behaviour

(OCB)

Ody, P., 115

OECD, 13, 30

Ofﬁ ce automation, computers, 42

examples, 43

‘Offshore outsourcing’, 10

Offshoring, 10–11

‘On-the-job’ training, 60, 79, 214, 215, 283

One-to-one interviews, 153, 206

Open learning, 216

Operating core, 89

Operations:

capacity management, 109–11

continuous improvement practices, 111–13

decisions, 44

examples, 84

inventory management, 108–9

lean management, 107

lean supply chain, 118

middle line, 89

operating core, 89

organisational competitiveness, 88

process:

design, 101–7

maps, 102–4

procurement, 85–6

quality:

measurement, 96–101

management thinking, 93–101

programmes planning, 113–15

service organizations, 91–2

shiﬁ ng perspectives, 85

standardizing, 78

strategic apex, 89

strategic issues, 86–8, 88–91

supplier relationships, 115–18

supply chain, 91

management, 116–18

support staff, 89

sustainability, 92–3

systems used, 104–7

technostructure, 89

total quality management, 114–15, 128

variation, 85

variety, 85

visibility, 85

volume, 85

Optimised production technologies, 105

Organ, L., 228

Organisational citizenship behaviour (OCB),

228

Organisational legitimacy, issues of, 24

Organisational remuneration structures, types

of, 224

Organisations, 134, 183, 191, 223

information systems:

dependence, 46–7

role, 43–4

IS trends, 47–52

marketing-orientated, 135

product-orientated, 135

production-orientated, 135

quality, 93–5

sales-orientated, 135

Outline process map, 103

Outsourcing, 9–10

advantages, 10

drawbacks, 10

growth, 9–10

Overell, S., 212

PAC see Political Action Committees (PACs)

Panel interviews, 206

Parallel changeover approach, 59

Parasuraman, A., 97

Pareto rule, 112

Particularism versus universalism, 22

Particularist societies, 23

Paton, R., 135

PDCA, 112

Peck, Polly, 25, 27

Pedler, M., 213

Penetration pricing, 173

People, 158

Perfective maintenance, 61

ENTERPRISE OPERATIONS E1

328

INDEX

Performance-related pay (PRP), 225–6

Periodic inventory, 109

Perry, B., 234

Person speciﬁ cation, 203

Personal selling, 153

Personality tests, 206

Pesola, M., 41, 58

PEST analysis, 32

PESTEL analysis, 187

Phased changeover approach, 59

Phillips, P., 51

Physical evidence, 159

Physical network, 47

‘Piece rates’, 224

Pilot changeover approach, 59

Place, 152

Planning process, 166

Political Action Committees (PACs), 30, 31

Political risk:

analysis, 32–3

effects, 33

Political ‘buffering’, 31

Porter, M.E., 90, 91, 152

Porter’s Diamond, 7

demand conditions, 8

events, 8–9

factor endowments, 8

ﬁ rm structure, 8

national competitive advantage, 9

related and supporting industries, 8

rivalry, 8

strategy, 8

Positioning, 149–50

Post-implementation review, 56, 57, 60

‘Power-distance’, 21

Preventative maintenance see Perfective

maintenance

Prevention costs, 96

Price, 157–8

Pricing strategies, 172–3

Prickett, R., 228

Primary research, 146

Principles of Good Governance, 28

Prithcard, S., 217

Process design, 101–7

Process maps, 102–4

deployment chart, 103

outline process map, 103

Process theories, 196–7

Processes, 159

Proctor, T., 139

Product development, 169

Product life cycle, 169–70

Product mix, 151–2

Product packaging, 153

Products investment, 170–2

Proﬁ t-related pay schemes, 224

Proﬁ t sharing, example of, 224

Promotional mix, 152

Promotional tools, 152

Protectionism, 5–6

PRP see Performance-related pay (PRP)

Psychological contract:

and retention, 197–8

Psychometric testing, 207–8

Public sector, 138–9

marketing, 138

Publicity and public relations, 153

QA see Quality assurance (QA)

QC see Quality circles (QC)

Quality:

approaches, 97–101

costs, types, 96

deﬁ nitions, 93

management thinking, 93–101

measurement methods, 96–7

programmes, planning, 113–14

Quality assurance (QA), 99

Quality circles (QC), 111

Question mark, 171

Queuing theory, 111

Quinn, J.B., 10

Quota systems, 5

Radio advertisements, 205

RATER, 97

Real growth, 19

Realistic tests, 61

Reck, R.F., 86, 87

Recruitment process, 203–4, 205

Redundancy, 221–2

Reference checks, selection techniques, 204, 209

Regulation, impact of, 30

Regulation on ﬁ rm, impact of, 29–30

legal environment, 29–30

regulation, impact of, 30

Relative market share, 172

Report-writing exercise, 209

Residual competencies, 10

Reward systems, design of, 223–8

Ricardo, D., 6

329

ENTERPRISE OPERATIONS

INDEX

Ricardo, David, 6

Risk, sources of, 32–3

Robbins Gentry, C., 106

Ronen, 23

Roos, D., 107, 108

Rossellini, Isabella, 148–9

Royal Mail, UK, 224

Rudzki, R.A., 86

Rugman, 32

Saban Capital Group, 31

Sales promotion, 153

Samson, D., 93

Scase, R., 52

Schein, E. H., 197

Scholes, K., 53, 55, 137

SDLC see Systems development life cycle

(SDLC)

SEC see Securities and Exchange Commission

(SEC)

Secondary research, 146

Securities and Exchange Commission (SEC),

Selection process, 202, 204

assessment centre, 208–9

interviews, 205–6

medical examination, 209

reference checks, 209

tests, types of, 206–7

Self-appraisal, 212

Self-directed work teams, 229

Senior, B., 53

Sequential interviews, 206

Sequential time versus synchronic time, 22

Service level agreement (SLA), 10

Service organizations, 91–2

operations, 91–2

Services marketing, 161–2

Servqual, 97

‘Seven Dimensions of Culture Model’, 22

Seven-Point Plan, for shift process operator,

204

‘Shamrock’ organisations, 231, 297

Shangri-La Entertainment, 31

Shareholders, relations with, 28

Shenkar, 23

Simms, J., 159, 160

Six Sigma, 113

Skim pricing, 173

Skyrme, D.J., 54

SLA see Service level agreement (SLA)

Slocum, J. W., Jr., 41, 42, 59

Smith, A., 6, 16, 17, 28

Social marketing, 139–40

Social responsibility, 25

Society, role of, 24–5

Soros, George, 12

Speciﬁ c versus diffuse relationship, 22

Stakeholders, 24, 27

power, issues of, 24

Star products, 171

Strategic competences, 9

Strategic decisions, 44

Strategic marketing, 166–9

Subsidies, for local manufacturers, 6

Supervisor/appraisee, 212

Supplier relationships, 115–18

Supply chain, 91

management, 116–18

Sustainability, 92–3

operations, 92–3

Synchronic time versus sequential time, 22

Systems:

implementation, 59–63

Systems development life cycle (SDLC), 56

Tactical decisions, 44

Tandem interviews, 206

Targeting, 149–50

Task/functional ﬂ exibility, 231

Tata Group, 14

Taxes on consumption see Indirect tax

Taylor, F.W., 84, 192, 193

Teams:

dispersed and virtual, 53–4

Technical barriers, 6

Teleconferencing, 43

Teleworking, 53

Theories, of motivation, 195–7

Theory of comparative advantage, 7

Threshold competence, 9

Tichy, N. M., 202

Tobacco tax, 16

Total productive maintenance (TPM), 97

Total quality, 127

Total quality management (TQM), 97, 229

deﬁ nition, 128

implementation, 114–15

prerequisites, 98

‘Total reward packages’, 227

Toyota, 13

TPM see Total productive maintenance (TPM)

ENTERPRISE OPERATIONS E1

330

INDEX

TPS see Transaction processing system

TQM see Total quality management (TQM)

Training/development:

human resource, 213–18

Transaction processing system (TPS), 45

‘Transition’ economies, 13

Treadway Commission, 27

Trompenaars, 21, 23

Turnbull, 28

Turner, Hamden, 21, 22

Turner, Hampden, 23

UK, 12, 27, 135, 164, 214, 217, 220, 221, 284

‘Uncertainty avoidance’, 21

Undifferentiated positioning, 149

Universalism versus particularism, 22

Universalist societies, 23

US President’s Energy Task Force, 31

USA, 17, 20, 21, 32, 138

Value added tax, 16

Vestel Group, 13

Video conferencing, 43

Viral marketing, 154

Virtual network, 47

Volkswagen, 13, 222–3

Volume tests, 61

WAN see Wide area networks (WANs)

Watts, P., 140

The Wealth of Nations, 16

Web 2.0, 51

Whirlpool, 13

Whittington, R., 53, 55, 137

Wide area networks (WANs), 47

Withey, F., 139, 143, 170

Womack, J.P., 107, 108

World Bank, 11

World Business Council for Sustainable

Development, 26

World Trade Organisation (WTO), 17, 30

WTO see World Trade Organisation (WTO)

Zaltman, G., 139

Zeithaml, V.A., 97