CIMA OFFICIAL REVISION CARDS MANAGEMENT LEVEL SUBJECT E2 Project and Relationship Management PROJECT AND RELATIONSHIP MANAGEMENT Published by: Kaplan Publishing UK Unit The Business Centre, Molly Millars Lane, Wokingham, Berkshire RG41 2QZ Copyright © 2017 Kaplan Financial Limited All rights reserved No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the publisher Acknowledgements The CIMA Publishing trademark is reproduced with kind permission of CIMA Notice The text in this material and any others made available by any Kaplan Group company does not amount to advice on a particular matter and should not be taken as such No reliance should be placed on the content as the basis for any investment or other decision or in connection with any advice given to third parties Please consult your appropriate professional adviser as necessary Kaplan Publishing Limited and all other Kaplan group companies expressly disclaim all liability to any person in respect of any losses or other claims, whether direct, indirect, incidental, consequential or otherwise arising in relation to the use of such materials British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library ISBN 978-1-78415-942-9 Printed and bound in Great Britain project and relationship management How to use Revision Cards The concept •• Revision Cards are a new and different way of learning, based upon research into learning styles and effective recall •• The cards are in full colour and have text supported by a range of images, making them far more effective for visual learners and easier to remember •• Unlike a bound text, Revision Cards can be rearranged and reorganised to appeal to kinaesthetic learners who prefer to learn by doing •• B eing small enough to carry around means that you can take them anywhere This gives the opportunity to keep going over what you need to learn and so helps with recall •• The content has been reduced down to the most important areas, making it far easier to digest and identify the relationships between key topics •• Revision Cards, however you learn, whoever you are, wherever you are project and relationship management How to use them Revision Cards are a pack of approximately 52 cards, slightly bigger than traditional playing cards but still very easy to carry and so convenient to use when travelling or moving around They can be used during the tuition period or at revision They are broken up into sections •• An overview of the entire subject in a mind map form (orange) •• A mind map of each specific topic (blue) •• Content for each topic presented so that it is memorable (green) Each one is a different colour, allowing you to sort them in many ways •• Perhaps you want to get a more detailed feel for each topic, why not take all the green cards out of the pack and use those •• You could create your own mind maps using the blue cards to explore how different topics fit together •• And if there are some topics that you understand, take those out of the pack, leaving yourself only the ones you need to concentrate on There are just so many ways you can use them project and relationship management Contents Developments in strategic management (Chapters 1-3) 2 The global business environment (Chapters 4-5) 3 Leadership, management and control (Chapters 6-8) 4 Organisational culture (Chapter 9) 5 Organisational relationships (Chapters 10-12) 6 Managing organisational change (Chapter 13) 7 Managing projects (Chapters 14-16) Chapter references refer to the Study Text project and relationship management Exam guidance Format of the exam There will be a computerised objective test assessment of 90 minutes E2 will also be assessed as part of the integrated, management level case study The management level case study is a computerised assessment of three hours Summary of the E2 syllabus The syllabus comprises of: A Introduction to strategic management and assessing the global environment 30% B The human aspects of the organisation 20% C Managing relationships 20% D Managing change through projects 30% Quality and accuracy are of the utmost importance to us so if you spot an error in any of our products, please send an email to mykaplanreporting@kaplan.com with full details, or follow the link to the feedback form in MyKaplan Our Quality Co-ordinator will work with our technical team to verify the error and take action to ensure it is corrected in future editions overview project and relationship management RevisionCards project and relationship management – Overview Techniques for managing organisational relationships Human resources approaches to managing and controlling performance Behavioural aspects of control Organisational culture Managing relationships Building, leading and managing teams The Finance function and its relationships Project management tools and techniques Managing projects Project and relationship management The human aspect of the organisation Alternative approaches to strategy Managing change through projects Managing organisational change People and projects The concept of strategy and the rational (formal) approach to strategy development Leadership and management Competitive advantage Strategic management and the global environment Competitor analysis The nature of the global business environment Developments in strategic management project and relationship management RevisionCards project and relationship management – Developments in strategic management Levels of strategy What is strategy CHOICES CHOICE S CHOICES Developments in strategic management Competitive advantage Internal analysis 10 Stakeholder analysis The rational (formal) approach The concept of strategy Generic competitive strategies Resourcebased view Mission Emergent Positioning approach Incremental Options, choice, implementation SWOT Strategy in different contexts Alternative approaches to strategy development Strategy safari Pros and cons of the rational approach project and relationship management – Developments in strategic management What is strategy? M i A D V A E N V S D I R E O B L O A N A 11 s N I T C J N L s T R A T E G Y i A O K I C T S o G N E O T E I n E M H N I R S E N T O L D E V E S M R S project and relationship management – Developments in strategic management Levels of strategy What industry? 12 Purpose Corporate Competitive advantage Business How? Action plans Functional Support project and relationship management – Developments in strategic management The rational (formal) approach to strategy formulation Set Mission Establish objectives Internal analysis Corporate Appraisal (SWOT) Generate strategy options Strategy evaluation and choice Strategy implementation Review and control 13 External analysis project and relationship management – Developments in strategic management Mission, vision and objectives Mission • Why we exist? • What are we producing? • For whom we exist? Vision Preferred future 14 Objectives Specific Measurable Attainable Relevant Timely project and relationship management – Developments in strategic management Corporate appraisal (SWOT) Porter’s value chain Porter’s forces Resource audit Internal analysis 15 External analysis Strengths Weaknesses Opportunities Threats P E S T L E project and relationship management – Developments in strategic management Strategic Direction - Ansoff’s Matrix PRODUCT CURRENT CURRENT NEW Market Penetration Product Development Market Development Diversification MARKET NEW 16 project and relationship management – Developments in strategic management Mendelow’s power/interest matrix Minimal effort Keep informed Keep satisfied Key players “Those persons and groups that have an interest in the strategy of an organisation” 17 high power low Stakeholder analysis low interest high project and relationship management – Developments in strategic management Advantages and disadvantages of the rational (formal) approach Identifies key issues Bureaucratic and inflexible Goal congruence Strategies “emerge” Long term view Improves stakeholder perception Provides basis for strategic review 18 Costly and time consuming Inappropriate in dynamic markets project and relationship management – Developments in strategic management Alternatives to the rational approach emergent intended logical incrementalism emergent deliberate realised Small steps unrealised Freewheeling opportunism No long term plan 19 CHOICES CHOICE S CHOICES project and relationship management – Developments in strategic management Strategy safari Mintzberg et al attempted to define strategic management, and they identified ten approaches to strategy (schools of thought) Configuration Design Planning Positioning Environmental Strategy safari Entrepreneurial Cultural Power Learning Cognitive The schools are split into prescriptive and descriptive The prescriptive schools attempt to explain how strategy should be formulated, while the descriptive schools attempt to describe how strategies actually are formed 20 project and relationship management – Developments in strategic management Strategy in different contexts Public sector and not-for-profit organisation The Es •• Efficiency •• Economy •• Effectiveness SMEs (small and medium sized enterprises) According to Birley (1982), the formal top-down process may be unsuitable for small businesses for four reasons: •• Differences in goals •• Limited scope of product/market choices •• Limited resources •• Organisational structure 21 project and relationship management – Developments in strategic management Generic competitive strategies Porter’s generic strategies Bowman’s Strategy Clock Differenitation High Hybrid •• Cost leadership Focused differenitation •• Differentiation •• Focus Perceived value to the consumer Low price Low price/ low value Monopoly pricing Loss of market share Low Low 22 Price Riskyhigh margins High project and relationship management – Developments in strategic management Resource-based view vs Positioning view resources & competencies easy to copy competencies Threshold hard to copy Core Positioning view (OUTSIDE-IN) The positioning view is concerned with adapting the organisation to fit its environment Supernormal profits result from: •• high market share relative to rivals resources Basic Unique •• differentiated product •• low costs Unique resources are: • • • • 23 Valuable Rare Imperfectly imitable Hard to substitute Resource-based view (INSIDE-OUT) Competitive advantage comes from unique resources or core competencies project and relationship management – Developments in strategic management Internal analysis WHAT WE ARE GOOD AT Resource audit COMPETENCIES WHAT WE HAVE RESOURCES THRESHOLD Minimum requirement to operate within a market CORE The basis for competitive advantage BASIC Similar to competitors/ easy to copy or obtain UNIQUE The more unique, the stronger the competitive position Value chain 24 Operations Outbound logistics Marketing and sales Service MARGIN Inbound logistics MARGIN Support activities ... of the exam There will be a computerised objective test assessment of 90 minutes E2 will also be assessed as part of the integrated, management level case study The management level case study... verify the error and take action to ensure it is corrected in future editions overview project and relationship management RevisionCards project and relationship management – Overview Techniques for... project and relationship management RevisionCards project and relationship management – Developments in strategic management Levels of strategy What is strategy CHOICES CHOICE S CHOICES Developments