1: Intro to Business

Question 1

The four features of organisations?

Answer 1

Social arrangement
Collective goals
Controlled performance
Boundary (physical or social)

Question 2

What is the primary objective of a business and an organisation?

Answer 2

Business - maximise owner wealth (make profit)

Organsation - maximise benefit to beneficiaries

Everything else is a secondary objective

They can choose other objectives

Question 3

What are primary and secondary stakeholders?

Answer 3

Primary - shareholders or owners

Secondary - everyone else

Question 4

What is satisficing?

Answer 4

When someone chooses an acceptable options instead of the best one

Changes course of action a lot

Question 5

What is a mission and what four things should it communicate?

Answer 5

Most generalised type of objective - reason to exist

Should communicate:
- purpose
- strategy
- policies
- values

Question 6

What is a vision and goals?

Answer 6

Vision - how an org sees itself in the future

Goals - desired end result

Question 7

Difference with aims and objectives?

Answer 7

Aims - qualitative and non-operational

Objectives - quantitative and operational
Need to be SMART

Specific
Measurable
Achievable
Relevant
Time constrained

Question 8

What are plans and standards/targets?

Answer 8

Plans - what should be done to achieve the objectives

Standards - specify the desired level of performance

Physical
Cost
Quality

Question 9

Define sustainability

Answer 9

Meeting the needs of the present without affecting the ability of future generations to meet their needs

Question 10

Three external factors that orgs should consider in the SEE framework?

Answer 10

Social

Environmental

Economic

Question 11

What is the triple bottom line?

Answer 11

Encourage organisations to consider performance in relation to social and enviro practices

People
Planet
Profit

Question 12

What is the ESG framework?

Answer 12

Environmental
Social
Governance

Looks at both enterprise value and social value

Question 13

What are the different types of emissions?

Answer 13

Scope 1 - directly caused

Scope 2 - indirect electricity

Scope 3 - indirect

Upstream: manufacture
Downstream: use and disposal

Question 14

What are the key UN SDG?

Answer 14

End poverty
Fight inequality
Stop climate change

Decent work and economic growth
Industry innovation and infrastructure
Responsible consumption and production

Question 15

What are the four R’s of recycling?

Answer 15

Reduce
Reuse
Recycle
Replace

Question 16

What is the mitigation heirarchy

Answer 16

Eliminate
Reduce
Substitute
Compensate

Question 17

What is ‘to double the share price’?

Answer 17

A typical primary business objective

Should be chosen over ‘to increase annual profit’

Question 18

What is satisficing?

Answer 18

When managers are not maximising wealth for the owners as they should be, but are merely making enough profits to keep the owners satisfied.

If the shareholders are unhappy = not satisficing

Question 19

What is revenue maximisation?

Answer 19

Where a business acts to maximise revenue for market share purposes.

Large increase in revenue but low profits is an indication of this

Question 20

What does maximising sales revenue do?

Answer 20

Increase prestige

Question 21

How can SMART targets be achievable?

Answer 21

If there is no specific information about whether a target is achievable, it is not achievable!

Question 22

How can you tell a ‘mission’?

Answer 22

A vague statement about aims and culture/values.

Specific and measurable targets will NOT be in mission

Question 23

What’s another way of saying the purpose of organisations?

Answer 23

Provisions of goods/services

Question 24

What 3 things does social sustainability include?

Answer 24

Treat employees fairly

Abolition of modern slavery

Company’s codes on bribery