UNIT 6 BUSINESS MANAGEMENT TOOLKIT (BMT)
'FORCE FIELD ANALYSIS' FFA
What is a 'Forcefield Analysis'?
Forcefield Analysis is a strategic management tool used to identify and analyze the forces that drive (driving)or resist (restraining) a change within an organization. Forcefield Analysis was developed by Kurt Lewin and is based on the concept that any situation is the result of forces working in opposing directions. In the business context, these forces can be internal and external factors influencing a proposed change.
What decisions can be made?
Forcefield analysis can be useful for almost any decision. In our own lives we often use a mental forecefield analysis to do a sort of ‘cost benefit’ analysis! You can see in the green and pink example above that there are two types of forces. The greater the force, the more likely it is that a decision will go in ‘that direction.
In the image below, there is an example forcefield analysis. In this case, the decision (in the grey box is whether or not to implement a learning and development program)! In essence, the drivers (yellow) are the yeses and the restraining forces (green) are the no’s .
To try to give the tool some quantitative or statistical value, a numeric value has been applied to each force (in the circles)! In the example below, you can see that the numbers (or magnitude of the forces) has been totalled at the bottom in grey circles. In this example, the forces for change (driving forces or yeses) outweigh the restraining forces (no’s) by 19 to 13! An easy win!
Is the FFA fool proof?
As you might have guessed, there are other factors to consider! Who came up with the numbers? Are they accurate? Managers generally assign the numbers based on a good ability to know the company and approximate the values! However, managers aren’t always right! What if a particular force is forgotten or deliberately omitted?
What if the environment is changing quickly? For these reasons and a variety more, a forcefield analysis is often used as a starting point to make decisions on!
One of the big criticisms of the FFA tool is that the numbers are simply made up! In this case, you could try to get around this issue by conducting some primary research in order to obtain more meaningful results that lack the owner or manager (single individual person bias).
The forcefield analysis tool can often be combined with other decision making tools, such as a SWOT analysis or a Decision Tree! Using the FFA as part of the decision making process can yield better results.
BIG DECISIONS TO MAKE FOR APPLE OVER CHINA
SHOULD APPLE STAY OR GO?
In 2007, Apple unveiled the groundbreaking iPhone, initially crafted in the U.S. However, the pursuit of cost efficiency prompted a pivotal shift to Chinese manufacturing in 2009, capitalizing on the nation’s skilled workforce and economic advantages. As political tensions simmered and reports of factory abuses surfaced, Apple faced ethical dilemmas, yet the allure of China’s production prowess endured. Despite the U.S. expressing a desire to reshore iPhone manufacturing, the financial benefits and external economies of scale associated with Chinese production remain compelling. The supply chain complexities and recent challenges posed by the global pandemic underscore the delicate balance Apple navigates. As geopolitical tensions heighten, a crucial decision looms on whether to maintain production ties with China or explore alternatives. The future of iPhone manufacturing stands at a crossroads, presenting Apple with a complex choice that transcends profit margins and delves into the heart of its global business strategy.
Should Apple remain with the production of I phones manufactured and produced offshore or should it reshore production?
FORCE FIELD ANALYSIS QUESTIONS
- State two other tools which the forcefield analysis could be used in conjunction with to help make decisions over whether Apple should ‘stay or go’ [2]
- Define the terms restraining and driving forces in the context of a forcefield analysis model [2]
- Explain why the forcefield analysis model is regarded as a quantitative tool [2]
- Analyse (in the context of international business), how cultural factors can act as driving or restraining forces in the Force Field Analysis [5]
- Analyse whether or not the forcefield model (FFA) should be used in isolation as a single decision-making tool [6]
- Construct a forcefield analysis for Apple. The decision should examine the driving and restraining factors of whether or not to restore Apple’s manufacture to the US [6]
FORCEFIELD ANALYSIS INFORMATION
Forcefield Analysis is a strategic management tool used to identify and analyze the forces that drive or resist a change within an organization. Here’s a brief description, along with advantages and disadvantages, using examples:
Description: Forcefield Analysis was developed by Kurt Lewin and is based on the concept that any situation is the result of forces working in opposing directions. In the business context, these forces can be internal and external factors influencing a proposed change.
Advantages:
Identification of Forces: Forcefield Analysis helps businesses identify the driving and restraining forces affecting a proposed change. For example, consider a company planning to implement a new technology. Driving forces could include the desire for efficiency and improved productivity, while restraining forces might be resistance from employees unfamiliar with the technology.
Strategic Decision Making: It provides a structured approach for decision-making. By understanding the forces at play, businesses can make informed decisions on whether to proceed with a change, modify it, or abandon it. This is crucial for effective strategic planning.
Disadvantages:
Simplification: Forcefield Analysis may oversimplify complex situations by categorizing forces as either driving or restraining. In reality, forces can be dynamic and change over time. For instance, an initially restraining force might become a driving force with proper communication and training.
Subjectivity: The identification and assessment of forces involve a degree of subjectivity. Different stakeholders may perceive forces differently. For instance, employees and management may have varying opinions on the impact of a proposed organizational restructuring.
Real-life Example: Consider a retail company planning to implement an online ordering system. Driving forces could include the growing trend of online shopping and the potential for increased sales. Restraining forces might include the cost of system implementation and the resistance from traditional in-store customers. Forcefield Analysis would help the company weigh these forces to make an informed decision on whether to proceed with the online ordering system.
In summary, Forcefield Analysis is a valuable tool for strategic decision-making, but it’s important to be aware of its limitations in capturing the complexity and subjectivity inherent in organizational change.
SUGGESTED ANSWERS
- Two other tools which the forcefield analysis could be used in conjunction with are:
- SWOT Analysis: Combining Force Field Analysis with a SWOT analysis allows for a comprehensive examination of internal and external factors affecting a decision. While Force Field Analysis focuses on driving and restraining forces, SWOT considers strengths, weaknesses, opportunities, and threats.
- Decision Trees: Integrating Force Field Analysis with decision trees enhances the decision-making process by providing a visual representation of possible outcomes and their associated probabilities. This combination helps in assessing the potential impact of different forces on decision outcomes.
- Definition of restraining and driving forces in the context of a Force Field Analysis model:
- Driving forces: These are factors that push an organization towards a particular decision or change. In the context of Apple’s iPhone production, financial benefits and economies of scale associated with Chinese manufacturing are driving forces urging the company to continue production offshore.
- Restraining forces: These are factors that act as barriers or obstacles, hindering the organization from making a particular decision. In Apple’s case, political tensions, reports of factory abuses, and the desire to reshore production represent restraining forces challenging the decision to continue manufacturing in China.
- Explanation of why the Force Field Analysis model is regarded as a quantitative tool:
- Force Field Analysis is considered quantitative because it involves assigning numerical values or weights to driving and restraining forces, representing their relative strengths. By quantifying these forces, decision-makers can conduct a more structured and objective analysis, making it easier to compare and prioritize factors influencing the decision.
- Analysis of how cultural factors can act as driving or restraining forces in the Force Field Analysis (5 marks):
- Cultural factors, such as communication styles, hierarchy preferences, and attitudes towards authority, can influence the success of offshore production. For Apple, the cultural compatibility between Chinese workers and the organization may act as a driving force if positive, fostering a productive work environment. Conversely, cultural differences and misunderstandings could serve as restraining forces, leading to communication breakdowns and inefficiencies.
- Analysis of whether or not the Force Field Model should be used in isolation as a single decision-making tool (6 marks):
- The Force Field Analysis should not be used in isolation due to its limitations. While it effectively identifies forces influencing a decision, it lacks depth in assessing the complexity of external factors. Integrating it with tools like cost-benefit analysis and scenario planning provides a more holistic view. Decision-makers should consider various tools to mitigate biases.
- It has been suggested that managers could allocate numbers based on their own views to try to carry off a certain decision or, allocate numbers that are completely arbitrary or overstated!
- Most business decisions happen in fast moving environments in which any decision making is hard. Relying on a tool compiled by one individual is suspect! But, opening up to a group to collaborate on producing an FFA comes with drawbacks too! The culture of a workplace may offer certain viewpoints or biases (for example, when a workforce believes they know what a manager wants or believes they know what is expected)!
- Past data may also be useful to develop a trend line (using sales forecasting). This gives a historic view and provides more data with which to make a decision.
- It may also be useful to consult with somebody externally to the organisation to get an ‘outsider’ viewpoint!
6. Create a forcefield analysis for Apple. The decision should examine the driving and restraining factors of whether or not to restore Apple’s manufacture to the US [6]
Driving Forces:
Cost Efficiency: Chinese manufacturing offers lower production costs, contributing to higher profit margins for Apple.
Skilled Workforce: China has a skilled and efficient labor force, enhancing the quality and speed of iPhone production.
Economies of Scale: Established production infrastructure in China allows for efficient mass production, leading to cost advantages.
Supply Chain Integration: The existing supply chain in China is well-integrated, ensuring smooth and timely access to necessary components.
Global Market Access: Production in China facilitates easier access to Asian markets, aligning with Apple’s global expansion strategy.
Technological Expertise: China’s technology capabilities support Apple’s need for advanced manufacturing processes.
Restraining Forces:
Political Tensions: Geopolitical conflicts may impact the stability of production operations in China, posing a risk to Apple’s supply chain.
Ethical Concerns: Reports of factory abuses raise ethical dilemmas, potentially tarnishing Apple’s corporate image.
Desire to Reshore: The expressed desire to reshore production by the U.S. government adds pressure to reconsider the production location.
Supply Chain Complexities: The intricacies of the global supply chain, especially amid the recent pandemic, introduce vulnerabilities.
Logistical Challenges: Shifting production to the U.S. may introduce logistical challenges, affecting the efficiency of the supply chain.
Costs of Reshoring: Reshoring may involve higher production costs due to increased labor and operational expenses in the U.S.
Dependency on Chinese Market: A shift may impact Apple’s market presence in China, a crucial market for its products.
Consumer Perception: Changes in production location may influence consumer perceptions of the iPhone, affecting brand loyalty.
Regulatory Compliance: Varying regulations between China and the U.S. pose challenges in terms of compliance and adapting to different legal frameworks.
Global Economic Uncertainties: Economic fluctuations and uncertainties globally may impact the financial feasibility of reshoring.
This Force Field Analysis provides a comprehensive overview of the driving and restraining forces influencing Apple’s decision regarding iPhone production location. The interplay of these factors requires careful consideration to make an informed and strategic decision.