4. opeeration strategy

Question 1

human resources?

Answer 1

• Identify key employees
• Design a Board of Directors or Advisers
• Establish employee
compensation and benefit plans

Question 2

what are the 5 organisation structures?

Answer 2

1. product
2. geographical
3. functional
4. matrix
5. hybrid

Question 3

what is product organisation structure?

Answer 3

• first level below the top arranged according to products or product lines
• Food companies generally this way with each product having it’s own management team to oversee advertising, distribution, packaging, and promotions
• Decision making to be placed at product manager level

Question 4

what is geographic org?

Answer 4

• e.g. car dealerships with locations few miles apart and airlines with operations on every continent.
• Appropriate for businesses that need all functions of company within each geographical region
• CEO and his staff in central office provide detailed oversight, each geographical division is self-contained unit that operate independently.

Question 5

what is functional org?

Answer 5

• first level below top broken by functions such as finance, sales, manufacturing
• Smaller organisations in stable business with limited product line and routine tech use this
  E.g. real estate management company

Question 6

what is matrix org?

Answer 6

• by product and by industry, generally in high-tech companies where specialised, technical teams work on solving specific problems related to complex, long-term projects
• Have team leaders, while each specialist report to leader of specialty
• Usually used in companies that develop complex products such as computers/airplanes so manager can be assigned to develop specific component or solve particular problem, then pull needed specialists into team

-Specialist report to team leader managing specific task as well as head of his/her specialty within company

Question 7

Hybird org?

Answer 7

combines elements of functional, product and geographical org.
- Combine responsiveness of product org with specialization and efficiency of functional org

Question 8

what are the benefit/negative of franchises?

Answer 8

• Established business
  model
• Training
• Marketing

X Upfront cost
X Ongoing fees

Question 9

entrepreneurial risk management - what are the 4 quadrants in risk matrix?

Answer 9

1. risk that can be ignored
2. risk that can be mitigated thru simple behavioural changes
3. risks that can be mitigated through insurance
4. risks to actively identify, monitor, and mitigate

Question 10

Risk matrix - 1st one (can be ignored)?

Answer 10

do nothing

Question 11

risk matrix - 2nd one (behavioural change)

Answer 11

• always be prepared of mishaps or running out of things (have backup)
• dont depend on one thing, build in contingencies

Question 12

risk matric - 3rd one (insurance)

Answer 12

• Property & Casualty Insurance can mitigate losses from fire and theft;
• Key Executive Insurance can mitigate losses from the death or incapacitation of a management team member;
• Liability Insurance can mitigate lawsuits resulting from product defects or on-site injuries to visitors;
• Errors & Omissions Insurance can mitigate lawsuits from disgruntled customers; and
• Directors & Officers Insurance can mitigate lawsuits in cases of negligence, harassment, or discrimination.

Question 13

risk matrix - 4th one (company kills)

Answer 13

compounding risks
(even if 90% chance you did right thing, if add up all risks, often result lower success rate)

Market Risks
Competitive Risks
Technology & Operational Risks Financial Risks
People Risks
Legal & Regulatory Risks Systemic Risks

Question 14

risk matrix - 4 th one - risk table?

Answer 14

1. risk factor 
type 
likelihood 
consequence 
mitigation tactic 
mitigation costs 
status

Question 15

Pragmatic risk management is about?

Answer 15

Engaging common sense to recognize and mitigate the most obvious risks in a cost effective manner, using some of the techniques described in this article; and
Developing a culture of responding to unanticipated developments - that is, putting out fires - in a calm, rational way.

(isn’t about trying to anticipate and mitigate every possible source of risk.)

Question 16

focus for HR?

Answer 16

Empowerment;
Motivation; and/or
Skill- enhancing practice

Question 17

what did study by Rauch and Hatak find for HR?

Answer 17

• skills, motivation, empowerment-enhancing HR practices related to SME performance
• empowerment more important than motivation/skill
• positively effect self efficacy of employees and increase task meaningfulness
• HR practices that enhance employee autonomy, decision-making involvement, and responsibility levels are generally more important

Question 18

implications of Rauch and Hatak

Answer 18

• HR practices important for success
• empower employees (responsibility/decision making)
• improve intrinsic job satisfaction (reduce need for expensive extrinsic incentive based system

Question 19

WHat is sole proprietorship?

Answer 19

have one owner who manages the business and contributes to the investment. There is no liability protection, and profits and losses are passed through directly to the owner’s tax return.

Question 20

General partnership?

Answer 20

can have an unlimited number of partners, all of whom are collectively responsible for managing the business, contributing to the investment, and sharing in the profits.

Question 21

Limited partnerships?

Answer 21

have two classes of partners: general partners are responsible for the management of the business; limited partners are investors. General partners, however, can also invest as limited partners.

Question 22

C corporations?

Answer 22

s are usually the structure of choice for large companies. They can have an unlimited number of shareholders and an unlimited number of classes of stock. The shareholders have no personal liability.

Question 23

S corporation?

Answer 23

are taxed like partnerships, but provide the liability protection of a corporation. This allows profits and losses to pass through to the shareholders. There are some restrictions,

Question 24

Limited liability companies ?

Answer 24

allow for an unlimited number of investors, called members . Profits and losses pass through to the members’ individual tax returns. The members cannot be held liable for actions of the company.

Question 25

Limited liability partnerships and professional corporations

Answer 25

state-sanctioned forms of organizations that are designed for licensed professionals such as lawyers, accountants, doctors, and dentists.