2013 Flashcards
Vertical Integration
Organisations at a different stage in the same industry combine together
Methods of growth for a PLC
Forward/Backward Vertical Integration, Horizontal Integration, Diversification, De-Integration/de-merger, Divestment, Organic growth, merger, takeover
Horizontal Integration
Organisations at the same stage of production combine together
Backward Vertical Integration
When a business takes over a supplier
Forward Vertical Integration
When a business takes over a customer
Diversification
Organisations in completely different industries combine together
De-integration/De-merger
Organisations cut back and concentrate on only their core activities
Divestment
Sell off assets or subsidiary companies to raise finance for growth
Organic growth
Organisations increase the number of products sold or number of outlets
Distinguish between primary and secondary information
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
Role of manager in effective decision making
Plan objectives of organisation, organise staff & resources, control staff, command, communicate, co-ordinate activities, delegate decision making
Job production
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
Flow production
Same product is made continuously, less skilled or non-skilled workers, standard speciation product, more capital intensive, can result in cheaper unit prices charged
Batch production
See sheet
Considerations am organisation take into account before choosing supplier
See sheet
Tactical decision
Middle managers, medium term, medium amount of financial risk, made to help implement strategic objectives
Operational decisions
Mad by anyone normally lower level managers, daily or short term, no/very little financial risk, made to help smooth running on daily basis
Sources of finance for a partnership
Bank loan, commercial mortgage, sell assets/land, venture capitalists, retained profits, bring in new partners with fresh capital, overdraft, grant, friends/family
Commercial mortgage
A loan secured against property owned by the organisation
Venture capitalists
Obtain a loan from a venture capitalist who will receive a share in the organisation in return
Internal constraints that make decision making difficult
See sheet
Benefits of outsourcing
See sheet
Extension strategies to Extend a product’s life cycle
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
Purpose of SWOT analysis????
See sheet
Market research techniques
See sheet
Effect external factors have on organisation
See sheet
Effects of increasing a managers span of control
See sheet
Advantages of branding
See sheet
Use of just in time stock control
See sheet
Interests stakeholders have in an organisation
See sheet. Customers, employees, managers, suppliers, banks, local community, owners/shareholders, government
Disadvantages of branding
See sheet
