2013

Question 0

Vertical Integration

Answer 0

Organisations at a different stage in the same industry combine together

Question 1

Methods of growth for a PLC

Answer 1

Forward/Backward Vertical Integration, Horizontal Integration, Diversification, De-Integration/de-merger, Divestment, Organic growth, merger, takeover

Question 2

Horizontal Integration

Answer 2

Organisations at the same stage of production combine together

Question 3

Backward Vertical Integration

Answer 3

When a business takes over a supplier

Question 4

Forward Vertical Integration

Answer 4

When a business takes over a customer

Question 5

Diversification

Answer 5

Organisations in completely different industries combine together

Question 6

De-integration/De-merger

Answer 6

Organisations cut back and concentrate on only their core activities

Question 7

Divestment

Answer 7

Sell off assets or subsidiary companies to raise finance for growth

Question 8

Organic growth

Answer 8

Organisations increase the number of products sold or number of outlets

Question 9

Distinguish between primary and secondary information

Answer 9

P: first hand info, S: has already been gathered. P: gathered for a specific purpose, S: gathered for one purpose and re-used for another. P tends to be more up-to-date

Question 10

Role of manager in effective decision making

Answer 10

Plan objectives of organisation, organise staff & resources, control staff, command, communicate, co-ordinate activities, delegate decision making

Question 11

Job production

Answer 11

For a unique product, uses skilled workers, can be tailored to an individual’s requirements, can be more labour intensive, can allow higher prices to be charged

Question 12

Flow production

Answer 12

Same product is made continuously, less skilled or non-skilled workers, standard speciation product, more capital intensive, can result in cheaper unit prices charged

Question 13

Batch production

Answer 13

See sheet

Question 14

Considerations am organisation take into account before choosing supplier

Answer 14

See sheet

Question 15

Tactical decision

Answer 15

Middle managers, medium term, medium amount of financial risk, made to help implement strategic objectives

Question 16

Operational decisions

Answer 16

Mad by anyone normally lower level managers, daily or short term, no/very little financial risk, made to help smooth running on daily basis

Question 17

Sources of finance for a partnership

Answer 17

Bank loan, commercial mortgage, sell assets/land, venture capitalists, retained profits, bring in new partners with fresh capital, overdraft, grant, friends/family

Question 18

Commercial mortgage

Answer 18

A loan secured against property owned by the organisation

Question 19

Venture capitalists

Answer 19

Obtain a loan from a venture capitalist who will receive a share in the organisation in return

Question 20

Internal constraints that make decision making difficult

Answer 20

See sheet

Question 21

Benefits of outsourcing

Answer 21

See sheet

Question 22

Extension strategies to Extend a product’s life cycle

Answer 22

Improve the product, alter price, change method of advertising, change use of product, introduce line extensions to product, change product name, alter place sold. See sheet for e.g

Question 23

Purpose of SWOT analysis????

Answer 23

See sheet

Question 24

Market research techniques

Answer 24

See sheet

Question 25

Effect external factors have on organisation

Answer 25

See sheet

Question 26

Effects of increasing a managers span of control

Answer 26

See sheet

Question 27

Advantages of branding

Answer 27

See sheet

Question 28

Use of just in time stock control

Answer 28

See sheet

Question 29

Interests stakeholders have in an organisation

Answer 29

See sheet. Customers, employees, managers, suppliers, banks, local community, owners/shareholders, government

Question 40

Disadvantages of branding

Answer 40

See sheet