2023 Flashcards
challenges faced by indigenous businesses
•increased costs/energy costs increasing
•increased competition from tnc/fdi
•shortage of labour
•lack of economies of scale compared to large international retailers
increased costs/energy costs increas
(challenge of indigenous firm)
a rise in energy costs has led to increased expenses and lower profits. businesses have to decide whether or not to increase prices which can have an adverse effect on sales
increased competition from tncs/fdi
(challenge of indigenous firms)
large transnational companies and global firms continue to expand and inturn develop large economies of scales. indigenous firms face the challenge of competing with these large international businesses in price and efficiencies
shortage of labor
(challenge of indigenous firm)
many indigenous firms find it difficult to source employees for both low skilled and high skilled job opportunities
lack of economies of scale compared to large international retailers
(challenge of indigenous firm)
indigenous firms can’t achieve the economies of scale of large international firms due to lower bulk buying of raw materials and products
TQM
total quality management
ISME
irish small and medium enterprise
invisible export
refers to services sold by irish businesses to customers from foreign countries. money enters the irish economy. eg tourist buying something from an irish shop
impact of choosing functional structure
•clear chain of command- clear lines of authority, know who to report to, person in charge of each dep improving coordination, know what’s expected
•spécialisation- employees from similar disciplines i.e all engineers working together brings expertise together. can learn off each other, improve skills, productivity, staff development
sogss act 1980 provisions
•retailer responsible
•illegal shop signs
•guarantees
•unsolicited goods
what’s a guarantee
extra assurance from manufacturer that product wii be replaced or repaired. gives extra protection/greater choice. consumer must know how to claim under guarantee and expiry date
right to cancel
when you buy a product it service online, over the phone, by mail order or on your doorstep. with this type of distance contact, you don’t enter into the contact in person and can’t check the products or service before you buy so u have right to cancel
nationalization
the process by which private companies become owned and controlled by the government
privatization
when a government owned business, operation or property becomes owned by a private, non government party
advantages of privatisation
•cash- pay off national debt/tax cuts/reduce tax
•company now can develop/go into other markets
•company can raise money for future expansion-no longer rely on gov
•offers opportunity for investment for people- eg Eir shareholders made 23% when sold shares
disadvantages of privatization
•higher prices & poorer service- eg Eir highest line rental in europe
•directors interested in good of company not of country- eg non profit making services axed
•govt- loss of control of state asset, loss of dividend, profits now going to individuals
•possible redundancies- to reduce costs, higher unemployment
mncs advs
•well paid quality jobs- 300,000+ jobs, reduce ue, increase stand of living
•bring new tech/products/management skills/ideas- eg Paypal knowledge based economy
•bring comp- lower prices, better choice eg Aldi&Lidl&grocery market
•tax revenue-CT/VAT/PAYE/USC of workers
•source raw mats- help irish firms
mncs disadvs
•take grants, low taxes then close- eg fruit of the loom
•mncs huge R&D resources, benefit from buying in bulk, irish firms can’t compete
•repatriation of profits- wealth leave Ireland
•take adv of tax laws so we don’t benefit as much as we could
•reliance on mncs- economy vulnerable
theory x managers
•lazy
•no ambition
•lack motivation
•can’t be trusted
•need to be constantly supervised
•only interested n in money
•no loyalty- out for themselves
theory y managers
•loyal
•ambitious
•motivated
•trustworthy
•want to be challenged with extra responsibility
how do theory x managers motivate
keep close eye (constant supervision) and punishment
also uses money as incentive to work hard
how do theory y managers motivate
praise, delegates, promotes those doing well
advs of planning
•secures capital
•motivate employees and managers
•reduced rush and uncertainty
•guide to success
•strengthens business
•benchmarking
secures capital
(adv of planning)
needs to prove can repay, business plan sets out market size, how going to target them, projected sales i& profits, convince investors to invest
motivates employees and managers
(adv of planning)
strategical & tactical- set objectives to be achieved within given time, everyone has target, achievement of target brings satisfaction
reduced risk and uncertainty
(adv of planning)
anticipating problems & taking steps to eradicate, putting confidence plans in place thus avoiding business failure
guide to success
(adv of planning)
focus on future, strategies to achieve success, map
strengthens business
(adv of planning)
swot analysis, can eliminate weaknesses and become stronger
benchmarking
(adv of planning)
monitoring progress, taking corrective action
flexible working conditions
working arrangements which allow employees to carry the amount, timing is location of their work, usually to the mutual benefit of the individual and organisation
internal and external recruitment
internal- cheaper, no need for induction, boost morale
external- more skills, better quality of candidates
job description and person specification
job description- duties, responsibilities, report to, conditions, opportunities
person specification- desc of ideal candidate, qualities/skills
interview and selection
shortlisting for selection-aptitude tests, interview, check refs, make job offer
selection advs- best candidate, unlikely to have ir problems
employee empowerment
letting your workers have a certain degree of control over their workday, from giving them opportunities to fail and succeed to motivating them to share knowledge
disadvs of niche market
•limited customer base- target sourcing group, limit potential customer base
•high costs- often requires lots of r&d to create specialized products/services
•challenge to expand beyond niche market- as customer base is limited, may be difficult to grow and compete with other larger firms
•changing market trend- unpredictable and subject to changing trends, if niche becomes less popular may struggle to adapt+find new customers
advs of meetings
•solve problems- resolve conflict, build up rapport/relationships, easier to reach agreement
•better decisions/ideas generation- each brings expertise/skills
•time saver- bring relevant parties together rather than individually say it
