Adapting to the challenges in the business environments Flashcards
What is information management?
•Businesses need to implement an effective information management system that is accessible and useful to all members of staff
•The information must be stored and effectively used
•Large capital should be invested into IT systems to update business ops
What is Strategic responses?
•Refers to how businesses respond to challenges from both internal and external environments by putting proper plans in place
•Businesses must have a clear understanding of each stakeholders’ viewpoints and requirements
•Businesses must develop strategic plans to remain sustainable in a competitive market
What is a Merger?
•This happens when two companies join together-usually by agreement-to form one business
•Emerged businesses share their resources which could lead to more growth and sustainability
e.g Vodafone and Mannesmann merging took place in 2000, was worth over $180 million and is the largest merger in history
What is a Takeover?
•Happens when one business takes control over of another business through majority ownership of its share
•It can also happen when one business buys out their shares of another one until the first business has controlling interests
e.g Vodacom and Neotel takeover, Vodacom acquired 100% of the issued share capital and shareholder loans against Neotel for a total cash consideration of R7 billion in 2015
What is an Acquisition?
•Happens when a business buys another business at an agreed price
•The acquired business often continues to operate as a subsidiary of the acquiring business
e.g MTN and Afrihost: MTN bought up 50% of Afrihost’s shares, and left the current Afrihost shareholders with the remaining 50%
What is an Alliance?
•Refers to an agreement between businesses with common visions and work together for the benefit of all
•Make it possible for businesses to me more competitive and better able to respond to challenges
e.g Starbucks and Barnes & Noble
What is Organisational design and flexibility?
•Describes how a business is structured and how it communicates its culture
•Involves the process of integrating the people within an organisation to improve efficiency
•Businesses need to be flexible in their organisational design so that they can adapt easily to the challenges of business environments
•The management structure should reflect the environmental conditions that the business experiences
What is the direct influence on the environment and social responsibility?
•Businesses investigate alternative environmental friendly production techniques and create environmental awareness
•Businesses can form joint ventures with other businesses and the government to protect the environment through conservation and preservation
•Businesses also need to implement sustainable CSI programmes in order to ily the communities in which they operate
What are the ways in which businesses can direct influence on the environment?
•Businesses need to be flexible by getting involved in development so that they can continue to operate
•They can also influence their customer base by creating nee uses of a product and taking customers away from competitors
•They can influence regulators through lobbying and bargaining
What are projects that can be undertaken by businesses as part of social responsibility?
•Businesses must allow employees to get involved in social development programmes
•Businesses must protect the environment and participate in community upliftment programmes
•Engage in environmentally friendly campaigns such as recycling
•Businesses must support less fortunate people, by providing donations to charity organisations
What are the benefits of social responsibility projects for businesses?
•CSI helps to attract investors because of increased profits
•Promotes customer loyalty resulting in more sales
•The businesses enjoys the goodwill of communities
•Businesses can use CSR/CSI projects as a marketing strategy to promote their products
What is Lobbying?
•Lobbying is an organised process where individuals, businesses and organisations use their influence to change government policy
•It is done by various people with similar motives, beliefs or commercial positions
What are the reasons why businesses lobby?
•Advances what the business must deliver in and builds public trust
•Helps to find solutions to emerging generic challenges
•Advanced a cause and builds public trust
•The views of lobby groups are important and make a difference by giving solutions to business challenges
What are the Types of lobbying?
•Hedging against inflation:
Businesses can hedge against inflation by investing their surplus assets or money in investments with intrinsic value
•Bargaining sessions between management and unions:
Enable employees to negotiate with employers as a group to project employees’ rights and prevent labour strikes
•Influencing supervisory body:
Businesses take an active role in professional bodies
What is Networking?
•Refers to a coordinated activity where people who have similar objectives meet and exchange information and ideas
•Assists in acquiring in new business leads
•Benefits the business my helping to identify best practice
•Helps businesses identify new business trends
