Kano’s Model

1. Delighters
2. Satisfiers
3. Dissatisfiers

Products & services move from Delighters to Satisfiers to Dissastisfiers

Open System View of Organization

● Task
● People (2 or more)
● Structure
● Technology

2 or more people working within a structure to achieve a task using technology

There’s always an organization boundary & there are inputs and outputs –

1. Inputs: Factors of production (land, labour, capital, enterprise)

2. Outputs: Products & services (exists in spectrum; nothing is a perfect product/service)

Environmental factors –

1. External environment: PESTLE (Political, economical, social, technological, legal &

ecological)
2. External actors: Government, competitors, pressure groups, etc.
Management

Process of (sub-bullets contain decisions to be taken) –

1. Planning
a. Strategic level: How much, which
b. Tactical level: Who goes where (operation specific)
2. Organizing
a. Human resource
b. Material resource
3. Leading
a. Motivation
4. Controlling
a. Financial control
b. Operational control

Work of organizational members is to use all available organizational resources to reach stated
organizational goals.

Managers

1. Top managers
a. Set objectives
b. Scan environment
c. Plan & make decision
2. Middle managers
a. Allocate resources
b. Oversee first line
c. Report to top management
d. Develop & implement activities
3. Supervisory
a. Coordinate activities
b. Supervise employees
c. Report to middle management
d. Involved in day-to-day activities
Four types of managers broadly –

1. Corporate level managers: C-suite

2. Business level general managers: Divisions
3. Functional managers: R&D, finance, marketing, HR
4. Frontline managers: Team level

Pricing

1. Penetration: Capture with initial low price then increase (Jio)

2. Skimming: Enter with high price then let it drop (iPhones)
3. Dynamic: Adjust with demand (Uber, airlines)

#Business model describes rationale of how an organization creates, delivers & captures value
Business Model Canvas

● Customer segments: Through demographic, psychographic, etc.

● Value proposition: What are you offering? Consists of three layers
○ Attributive: Expected attributes of product/service
○ Result: Expected results of consumer use cases
○ Target: Customer goals/purposes
● Channels: How to deliver it to customers?
○ Door to door
○ Online sales
○ Physical retailing
● Customer relationship: Can be personalized or mass and can be 3 types in nature –
○ Retentive
○ Acquisitive
○ Automated
● Revenue stream: Where all is the top-line increasing from?
● Key resources: What is being leveraged to achieve the task?
● Key activities: What are the tasks being performed? Can be two types –
○ Core
○ Outsourced
● Key partners: Main players involved in the value chain of task achievement
● Cost structures: Inflows & outflows

Need, want & desire

● Need: State of deprivation

● Want: Based on cultural aspects
● Desire: Want backed by purchasing power

AIDA Model

1. Awareness
2. Interest
3. Desire
4. Action
D2C began as a blog (created awareness), captured student interest, generated desires to join
platform, leading to platform joining (action)

User value proposition

1. Returns: Long-term +ve results

2. Risks: Long-term -ve results
3. Benefits: Short-term +ve results
4. Risks: Short-term -ve results

SWOT Analysis

1. Strength: Internal +ve

2. Weakness: Internal -ve
3. Opportunities: External +ve
4. Threats: External -ve

Hierarchy of Organizational Plans

● Mission statement: What business I am in? Based organizational goals based on

planning premises which justifies an organization’s existence [founders, BoG, top
management]
● Vision: Where the company wants to reach [founders, BoG, top management]
● Strategic Plans: Plans designed to meet goals [top & middle management]
● Operational plans: Details for carrying out strategic plans [middle & operational]

Hierarchy –

1. Mission
2. Vision
3. Values
4. Strategic Goals
5. Objectives
6. Action Plans

Strategy

1. Problem: Define the problem

2. Strategic Analysis: Look at what is there inside & outside (internal & external appraisal)
 a. Through techniques like SWOT, PESTLE
3. Strategy Formulation
a. Reasons to be made available
b. Strategic options
c. Choice of options
d. Prioritization of options
4. Tactics: Execution level
a. Tactical plans
5. Control
a. Deviation between plans & execution
b. Redefine problem

Cycle is 1 → 2 → 3 → 4 → 5 → 1 …

Ansoff Matrix

1. Market Penetration: Same market, same product

a. Develop new marketing strategy to encourage more people to use more
b. Strategies: Promotions, loyalty programmes, discounts, nudge
c. Sales force strategy: Acquisition of a competitor company
d. More of same thing to same market
2. Product Development: Same market, new product
a. Extend product by producing multiple variants or repackaging
b. Develop related product/service
c. Service: Shorter time, improve customer experience/service
 3. Market Development: New market, same product
a. New areas of existing markets or new markets to be targeted
b. Conduct PESTLE Analysis on market
c. Use different distribution/sales channels
d. Use market segmentation to target different groups – clusters prevailing, then
STP
e. Use marketing mix to reposition (7Ps: product, price, place, promotion, people,
process, physical evidence)
f. Trying to sell more of same thing to different people
4. Diversification: New market, new product
a. Risky strategy
b. Advantage: One business suffers, won't affect the others (hedging)

Risk increases as we go towards the new end of the spectrum for both products & markets

BCG Matrix

Useful to determine what warrants investment for a company with multiple SBUs (strategic
business units). Also known as corporate portfolio approach.

3 useful aspects –

1. Sales
2. Growth of its market
3. Absorbs/produces cash for each SBU
Porter’s Five Forces

Used to analyze industry

1. Threat of new entrants

2. Bargaining power of buyers
3. Bargaining power of suppliers
4. Competitive rivalry
5. Threat of substitutes

Market Sizing

1. TAM (total addressable market): Total market size for product/service

2. SAM (serviceable addressable market): Percent of TAM that can be captured based on
business model
3. SOM (serviceable obtainable market): Percent of SAM that can be realistically captured
a. Needs to factor in – marketing plan, strength of competitors, product

TAM = # of customers in market x annual value per customer

Porter’s Generic Strategies Model

Organizational Design

Primarily 3 levels –

1. Broad: How you design the organization [Macro-level]

2. HR: Entire process from human capital entering to exiting [Meso-level]
3. Team: How many teams, who is staffed in which team, etc. [Macro-level]

Division of Work

Group similar activities together

1. Departmentalization: Grouping into divisions of work activities that are similar &
logically connected
2. Span of control: # of subordinates reporting directly to a given manager
3. Chain of command: Who reports to whom? Basically, how many reporting chains
Tall vs Flat structure –

● Tall: Narrow span of control

○ Example: Bureaucracy
● Flat: Wide span of control
○ Example: IT Consulting

Long chain of command slows down decision making processes

Line vs Staff Process

● Line Process: Core function of organization

● Staff Process: Subsidiary functions helping the main (HR, IT, law, accounts, etc.)

Pooled vs Unique Resources

● Pooled: Available across all functions/departments (HR, marketing, etc.)

● Unique: Only certain functions/departments can access it

Organization Design & Approaches

Linkage between strategy & structure

● Classical Approach
● Task–Technology Approach
○ Unit production: One at a time (e.g., Rolex watches)
 ○ Batch production: A collection of items at a time (e.g., Cars)
○ Continuous production: Without any seizure in the process (e.g., Oil, Steel, etc.)
● Environmental Approach
○ Mechanist system: Strict rules (e.g., bureaucracies)
○ Organic system: Informal, allows for open communications; Working in groups

Types of Organization

● Functional
○ A form of departmentalization
○ Individuals involved only in functional activity
○ Example: Marketing Head
● Product Organization
○ Crux is the product (Head of Soap, Head of Conditioner)
○ Common in organizations selling different products with unique requirements for
each (e.g., conglomerates)
● Market Organization
○ Crux is the market you are operating in
○ Division based on market
○ Market – Segment, Geographic (East Zone sales manager for example)
● Matrix Structure
○ Each employee reports to both functional/divisional managers and to
product/project/group managers
○ Also known as multiple command system
○ Goes against Unity of Command system

Fit in strategies

1. Horizontal: Each division should be aligned with the others

2. Vertical: Strategies should be aligned with overall strategy for individual divisions

Strategy & Structures

1. Low price configuration: Core units given more resources to ensure low cost to
consumers
 2. Local value creation configuration: Precedence given to local value creation; SoP
standardized but can be tweaked as per local needs; Bulk of resources dedicated to
market facing units
3. Global value creation configuration: Specialize in certain products; Global sourcing,
basic research, then specialized R&D

When,

● Benefits of specialization > benefits of market responsiveness → go for functional

operating core
● Benefits of market responsiveness > benefits of specialization → go for market facing
ones

OB/HR

● OB: Why do people behave in a certain way?

● HR: A function of an organization that looks at how to manage human capital

Job Analysis: For positions

1. Study tasks, requirements

2. JD (roles & responsibilities – position specific) & JS (competencies required by
individual – individual specific) are the outcome
3. Also used in designing compensation

Job Points Model

1. Deciding how to pay different jobs

2. 4 dimensions with sub-dimensions
HR Planning for N

● Demand estimation from individual divisions

● Churn rate calculation
● Retirement figure incorporation
● Budget constraints
● Low performing individual assessment
● Main objective: Finding out how many candidates to hire finally

Recruitment & Selection

1. Recruitment: Refers to generating a pool of candidates by leveraging the right channels

2. Selection: Sizing down the pool of interested candidates through different methods

Induction

Two types of knowledge – explicit (SoP, rules, etc.) & tacit (organizational culture)

Performance Management & Appraisals

Appraisal: Benchmarking employee performance based on set standards and rules

Two possible outcomes: Rewards (bonuses, salary hikes, promotions) & punishments (firing,
demotions, etc.)

Compensation & Benefits

CTC = fixed + variable + perks/benefits + ESOPs

Career Development

Can be both vertical (moving up the ladder) & horizontal (one department to another at the
same managerial level)

Exit

Three possible ways – retirement, removal, voluntary exit

Sequence: Job Analysis → HR Planning → Recruitment → Selection → Induction →

Performance Management & Appraisals → Compensation → Career Development → Exit
Employee engagement is necessary, to ensure retention, from induction to exit and can be
ensured by giving employees challenging work.

Teamwork

Biases affecting group performance –

1. Groupthink: Conforming to group ideas

2. Group polarization: Division into two extreme ends of a spectrum
3. Social loafing: Free rider issue
4. Sub-group formation: Smaller groups forming within a broader group

Group size plays a crucial role in all of this – ideal size is 5-8.

Negotiations

Integrative: Win-win; Distributive: Zero-Sum

Conflict process (assertiveness vs cooperation) –

Communication

3 rhetorical devices exist primarily in communications –

1. Ethos: Ethical/moral values & credibility

2. Pathos: Emotions
 3. Logos: Logic & rationality

Which one is more effective in what scenario?

● If audience has negative bias, the sequence should be: Pathos → Ethos → Logos
● If audience has neutral bias: Logos → Ethos → Pathos