Alevel Flashcards
(320 cards)
1
Q
What’s a mission statement
A
Its a business objective/ corporate aims.
Includes the business’s values, standards and strategies aswell as its USP
2
Q
Difference between corporate and functional objectives
A
Corporate are long form goals for the business. (Like to grow bigger)
Functional are smaller goals (sometimes called department objectives) that are detailed and specific. They help achieve the corporate objective
3
Q
Give 4 common business objectives
A
Profit objective
Growth objective
Survival objective
Cash flow objective
4
Q
What are social and ethics
A
Social objectives are benefiting society or people in need
Ethics are what’s right/ environmentaly and morally
5
Q
Why is large scale production cheaper?
A
Because the fixed/ variable costs are spread out across more products
6
Q
3 reasons why profit is important
A
Profit can motivate people
Good source of finance
Profit can attract investors
7
Q
What’s public and private sector?
A
Public: owned by government
Aim to provide public services not make a profit
Funded by UK tax system
Private; run by private individuals
Non profit organisations like charities are also private sector
8
Q
What are social enterprises
A
Normal businesses with a social objective. The profits are used for social activities
9
Q
What are mutual organisations?
A
Businesses where profits are reinvested into the business to reduce prices. (Eg building societies.)
10
Q
What’s limited/unlimited liabilities?
A
Unlimited: business and owner are seen as one under the law, so the owner can be forced to sell personal assets to pay off business debts
Limited: opposite
11
Q
What’s a sole trader?
A
A self employed individual that owns his own business. Is responsible for the business (unlimited liability)
12
Q
3 advantages and disadvantages for being a sole trader
A
A) Freedom
Entitled to all the profits
Simplicity( less form filling)
D) Finance limited to what the owner has
Work long hours
Unlimited liability
13
Q
What is a LTD
give some facts about them
A
LTD= private limited company
Can’t sell shares to the public
No minimum share capital requirement
Often a small family business
14
Q
What’s a PLC?
A
PLC= Public limited company
Can sell shares to the business
£50000 at least capital
Usually start as private limited company and turn into a public
15
Q
What are dividends and when are they payed?
A
Dividends are a proportion of the profits earned by the company and are split out to the shareholders
16
Q
What’s market capitalisation and the equation
A
The total value of all the shares issued by the company
= number of issues shares* current share price
17
Q
What’s a disadvantage of a sole trader developing into a private limited company?
A
They will gain enterprise from shareholders - however they may have different values meaning the original owner may lose control of the business
18
Q
Do shareholders control decisions in PLC’s ( public limited)
A
No
19
Q
Who are shareholders
A
Owners of the business - individuals who have bought shares
20
Q
Why would the share price of a business change?
A
- succesful performance of the business( higher share price)
- speculation of new product might generate investor interest( higher share price)
- low interest rates( higher share price because there’s more money to be made then saving money in a bank account)
21
Q
If the demand if the economy is too low, what does the government do?
A
Cut taxes so people have more money to spend.
Vise versa is the demand is too high
22
Q
When unemployment rates are high, what happens to the cost of labour?
A
Gets cheaper
23
Q
What happens in an economic boom
A
When wages rise and more people are employed- will lead to greater costs due to increased wages
24
Q
What is seasonality?
A
Seasonality is the variations in demand and supply throughout the year
25
What’s perfect competition?
An oligopoly?
A monopoly?
1) all forms operate on an equal basis and their products are pretty much identical. businesses need to keep costs low to keep prices low, otherwise the demand will be taken by the competition
2) a small number of large firms dominate the market and charge similar prices. They focus on marketing and brand image
3) where one business has complete control over the market( no competition)
26
What’s demographic change?
How the structure of the population changes in terms of age, sex and race
27
How has the market changed to suit the UK’s population?
With an ageing population- banks have started offering retirement accounts. Brain training games directed at older people
28
What has the uk’s ethnic diverse population led to?
Certain products such as food not traditionally available in the UK
Or supermarkets stocking exotic ingredients
29
How do business polute the environment
Production processes
Traffic pollution through transportation
By using raw materials/ unsustainable stuff
30
Advantages of being environmentally friendly
Improve public image for a business- advantage over competitors
31
Benefits of being ethical
Good for the reputation so demand for the profits can be high even if they’re more expensive then rival products
32
How can technological advances influence demands and costs?
Use tech to gather info about the lifestyles of customers to advertise to them specifically about a range of products suited to them
Social networking sites^^^
New tech can improve production efficiency
33
What do managers do ?
3 points
Set objectives for their department
Managers analyse and interpret data
Managers make decisions and review the effectiveness
34
What are the 4 types of managers?
Authoritarian or autocratic
Paternalistic
Democratic
Laissez-faire
Look to page 18 for more info
35
Give 2 internal and external factors that affect manegement and leadership styles
Internal) Urgent tasks need different leadership styles- autocratic, where’s a small educated workforce may be suited better with a democratic style
External) in a recession, business will need strong leadership- autocratic or paternalistic for tough crisis. Increased competition requires a democratic approach to motivate employees
36
What’s the tannebuam Schmidt continuum?
It’s a graph that plots managers ranging from autocratic through increasing levels of participation in decision making by the work force.
It identifies 7 key management styles
Look page 19
37
What’s the Blake mouton Grid?
A grid that assesses managers based on how much they care about their employees
Y axes) concern for people
X axes) concern for production
```
Bottom left= impoverished style
Bottom right= produce of perish
Top left= country club style
Top right= team style
Middle= middle of the road
```
38
What are the 6 steps for decision making?
```
Set objectives
Collect data
Analyse data
Review decision
Implement decision
Make decision
```
39
Advantages and disadvantages of using data to make decisions
A) reduces the risk of making expensive mistakes
Logical and well structured
D) can be time consuming
Less creative as it takes away the ‘human element’
40
What’s intuitive decision making
And advantages and disadvantages
Means making decisions on gut/ instinct
A) save time on making decisions if they’re based on intuition(past experience.)
D) it’s risky as mistakes can be easily made
41
What 3 other things influence decisions?
Risk
Reward
Uncertainty
42
What’s opportunity cost?
The benefit that’s given up in order to do something else. (The cost of the choice that’s made.)
Money/time could be spent doing something else, so you could be missing out on doing something else
43
What are the MOREE management factors?
Mission - clear main purpose/business mission
Objectives - medium to long term targets that help a business achieve its mission
Resource constraints - resource availablity including money, people, time and raw materials
Ethics
External environment - outside factors like competition, trends, seasonal demand
44
What are decision trees
Diagrams that help with decision making when the outcome is not certain, but the expected payoff, probability and cost are known
Look to page 22 if decision trees forgotten
45
Advantages and disadvantages of decision trees
A) nice visual representation of potentiometer outcomes for a decision. Allow managers to compare options quantitatively and objectively.
D) decisions trees ignore non numerical qualitative data. Probabilities have to be predicted very accurately or the data will be wrong
46
What are the two internal stake holders of a business and the 4/5 external?
Internal) owners and employees and managers
External) customers, suppliers, local community, government, creditors.
Look to page 24
47
What is stakeholder mapping?
A grid that allows a business to map stakeholders to identify how much interest and power(influence) each stake holder has on the business.
Y axes= power/influence
X axes= interest
Bottom left= monitor ( least effort)
Bottom right= keep informed
Top left= keep satisfied
Top right= manage closely (maximum effort)
48
What is the marketing mix?
All the decisions a business makes about promoting and selling s product. Includes research, analysis and planning
49
Why is increasing market share a beneficial marketing objective?
It’s useful because it tells a business how well it’s doing compared to its competitors
50
Name 2 qualitative and quantitive marketing objectives
Qualitative) improving product quality, surviving a competition
Quantative) increase sales growth, increase market share
51
Give 2 internal factors that affect marketing
And 2 external
Internal) corporate objectives- the marketing department has to make sure the objectives are aligned with the company’s overall goals.
If finance budget is cut- the marketing objectives might have to be scaled down
External) the state of the economy - a business may try to increase sales volumes in an economic boom
Due to competition- a business may increase marketing to attract attention
52
Give 2 ways the law directly affects marketing objectives
Predatory pricing(cutting prices to force a competitor out of business.)
Trade descriptions act(business can’t lie about products.)
53
Give 5 ways a market can be classified
Geography(local, national, international)
Nature of product(agricultural, technological)
Seasonality
Development level(new, growing, large)
Product destination(trade, private consumers
54
Equation for market growth(%)
New market size-old market size
Divided by
Old market size
Times by 100
55
Equation for market share (%)
Sales
Divided by
Total market size
Times 100
56
Equation for sales growth(%)
And what happens if the sales growth is positive?
Sales this year- sales last year
Divided by sales last year
*100
Positive= company is gaining sales
57
What’s market mapping?
A graph that compares two features of products or brands- eg price and quality
58
What information can a business gain from market mapping?
Can show a business who it’s closest competitors are
Can show a business a gap in the market
Can show a business what prices customers expect to pay
59
Limitations of market mapping
Can simplify things too much
Opinions may be biased on a market map as different people have different views
60
What reasons are market research used for?
1) spot opportunities
2) helps a business see what to do next
3) see if plans are working
However- can be expensive and bad market research can lead to really shit business decision
61
What are the 3 types of Sampling
Simple random sample
Stratified sample- population is divided into groups and the number picked from each group is proportional to the size of the group
Quota sample- people are picked who fit into a specific category. Businesses use quota to get opinions of the target audience the product is directed to
62
What is bias and how do businesses avoid it?
Biased opinion
Questionares should avoid leading questions
Don’t pressure the interviewee
63
What are trends in graphs?
Long term movement for a variable. Can be upward, downward or constant. Usually graphs has fluctuations
64
Whats extrapolation?
A line of best fit that’s used to find future values on a graph
65
What is correlation?
A measure of how closely 2 variables are related.
Correlation does not always mean causation
External factors have to be taken into account when reviewing correlation
66
What are confidence levels and conceding intervals?
Intervals- a range of values that your fairly sure a population(whole group that you want to find out about) will lie within
Levels- how sure you are that the population will lie within the interval
67
How can you increase the confidence level?
Widen the confidence interval
68
How can technology be used to find information about customers?
3 ways
Loyalty cards
Social media
Google(search engines)
69
2 advantages and disadvantages of using IT to help analyse marketing data
A) computers can analyse much more data than humans can
Using computers can reduce risk
D) buying software can be expensive
Staff need to be trained to use software which could be expensive and time consuming
70
Formula for price elasticity of demand?
%change in demand
Divided by
%change in price
71
If the PED is greater than 1 what does that mean
And less than one
(Ignore the minus sign)
>1. Product if price elastic
<1. Product is price in elastic
72
What does it mean if a product is price elastic?
| Give an example of a price elastic product
Means a price increase will make sales revenue go down
Example: pencils or something
73
What does it mean if a product is price in elastic and give an example
A rise in price will make sales revenue go up, even if the sales goes down
Example: necessities like milk
Or heavily branded items like apple because of their brand loyalty(differentiation from other products and ecosystem.)
74
Fact about PED
Product types tend to be price inelastic
Although brands tend to be price elastic
Example: petrol sales are inelastic but sales of a company’s petrol are elastic
75
Formula for income elasticity of demand
%change in demand
Divided by
%change in real income(change in income)
76
What does it mean to have an income elasticity of less than 1
Give an example
As income rises, demand rises but at a slower rate than the increase in income
Example: normal goods such as fruit and vegetables or toilet roll
77
What does it mean to have an income elasticity of more than 1
Give an example
As income rises, demand rises but at a faster rate than the increase in income.
Example: Luxury goods like designer clothes
78
When are price elasticity and income elasticity used by a business?
Price) helps a manufacturer whether to raise or lower the price of a product
Income) helps a manufacturer see what will happen to the sales if the economy grows or shrinks
79
What is STP
Segment- divide the market into groups with similar characteristics
Target- decide which market segment to focus on and adapt the product and marketing mix to appeal to this group
Position- position the product in the customers minds so they see it as better than the competition. Eg: ethics
80
What are the 4 different ways to segment a market?
Demographics- age, sex, religion, family size
Geographic- area to target, country/ city etc
Income- target products to people with different incomes. Eg: luxury products are targeted to people with higher incomes
Behaviour- lifestyle
81
2 advantages and disadvantages for segmentation
A) useful for identifying new customers
Indenting the best way to make a product
D) can cause company’s to ignore the needs of potential customers
Can be difficult to break the market into obvious segments
82
What’s concentrated, differentiated and undifferentiated marketing?
Concentrated / niche) involves one or two segments. Good approach for a small business with limited resources. Eg lynx or dove
D) where several segments are targeted. Common with large businesses with large budgets. eg men’s clothing
UD) where the segments are ignored and a company tries to reach the entire market. Eg Coca-Cola
83
What is positioning?
Creating an image of your brand or product in the mind of your target customer
84
Give 2 influences on positioning
State of the market- recession means the company may position the product to make customers think its great value for money
Company’s current products- if the company’s other products are seen as reliable and cheap they are likely to try and position any new products in a similar place
85
What’s the marketing mix?
A mix of factors that firms consider when marketing a product- factors that’ll make customers either buy it or not
86
What are the 7 p’s?
```
Price
Product
Places
Promoted
People
Physical environment
Process
```
87
Give 4 influences on the marketing mix
Competitions
Location of a business
Type of product
Target market segment
88
What are the 3 types of consumer products
Convenience
Shopping
Specialty
89
What’s a product line
Whats a product mix
Line- consists of related products with similar uses and target customers
Mix- combination of all the product line that a business produces
90
What’s the Boston matrix?
A graph that compares the market growth with the market share. Each circle in the matrix represents one product.
Size of the circle represents the sales revenue of a product
91
How can new products be great for a business
Bring in new customers
Give a competitive advantage
Allow companies to maintain a balanced product portfolio
92
What does the product life cycle show?
The sales of a product over time
93
Why is a product life style useful?
Valuable for planning marketing strategies and changing the marketing mix.
Marketing decisions will be based on where a product is in its life cycle
94
What are the 5 stages of a product?
Development- lots of market research, high costs, high failure rate
Introduction- heavy promotion, initial costs high(skimming)
Growth- sales grow fast, product is developed and improved due to competitors
Maturity- sales reach a peak because fixed costs of development have been paid for. Not many new customers
Decline- product doesn’t appeal anymore, product may still remain profitable if promotional costs are reduced enough
95
What are extension strategies?
Strategies that try to prolong the life of a product by changing the marketing mix
96
Give a few examples of extension strategies
Product development
Market development
Change the pricing
Promote the product
97
What’s price skimming
Is when new and innovative products are sold at high prices when they first reach the market
Customers will pay more because the product has scarcity value and the high price boosts the products image
98
What’s penetration pricing?
The opposite of skimming.
| Launching a product at a low price in order to attract customers and gain market share
99
Give 4 factors that affect pricing decisions
1) during heavy promotion- pricing may be reduced
2) cost plus pricing- price is set to cover the cost of making the product to make a profit
3) price elasticity of demand
4) the stage in a products life cycle
100
What’s predatory pricing
When a business delibaretly drops prices in order to force another business out of the market(illegal)
101
What’s competitive pricing
When companies minister competitors prices to make sure their own prices are set at an equal or lower level
102
What’s Psycological pricing
When pricing is based on customer expectations. Example: higher price may result in the consumer believing the product is of higher quality
103
What’s loss leaders?
A product sold at or below cost price- useful for attracting customers to the rest of their product line up.
Also used by supermarkets because when customers visit supermarkets they will usually buy more than just one product
104
What’s dynamic pricing?
Just changing prices depending on competitor prices and demand
105
How does advertising change throughout a products life style
Heavily advertised at launch
Growth phase) Less advertisement- brand image improvement
Maturity- customers reminded of the product. So less advertising but still some
106
Name 3 promotional techniques
Sales promotions- bogof deals
Merchandising- ensuring the retailers are displaying a company’s products as effectively as possible
Personal selling- personal communication between a sales person and a customer
107
What’s a Chanel of distribution
The route a product takes from the producer to the consumer
108
What are retailers and wholesalers
R) sell to customers from shops
W) buy products cheaply in bulk
109
How do wholesalers make distribution easier?
The wholesaler will distribute all the products to retailers so the manufacturer doesn’t have too
110
What are the 4 different channels of distribution?
Direct selling: manu > consumer
```
Indirect selling (level 1): manu > retailer >
customer
```
Direct selling through agent: manu > agent > consumer
Indirect selling (level2): manu> wholesaler> retailer> consumer
111
What’s multi channel distribution
When businesses sell through more than one method eg online and store
112
Benefits of online and store
Wider target audience
113
What’s the ‘process’
How easy it is for customers to get what they want, when they want it
114
What’s the purpose of HR?
To ensure a business achieves the maximum benefit from its employees at the minimum cost
115
How does HR work
He decides how to pay staff, treat them and use their skills. Work closely with managers to help them control the workforce
116
What are operational objectives?
And list 8
Targets set to improve production
```
Quality
Costs
Flexibility for customer wants
Efficiency
Innovation
Environment
Speed of response
Dependability(can customer count on business?)
```
117
What is added value?
The added value to a product through various stages of production
= sales revenue - cost of goods
118
Give 2 internal and external factors that affect operational objectives
I) availability of resources
Overall objectives
E) competitors performance
Demand for product
New technology
119
What are the 5 main methods of production?
Job production
Flow production
Batch production
Cell production
Lean production
Go to page 55 for more info :) no fucking do it
120
What is job production
Production of one off times by skilled workers
121
What is flow production
Mass production on a continuos production line with division of labour
122
What’s batch production
Production of small batches of identical items
123
What’s cell production
Production divided into sets of tasks each completed by a work group
124
What’s lean production
Streamlined production with waste at a minimum
125
What production methods would help a buisness improve efficiency
Batch
Flow
126
What type of production is most environmental friendly
Lean production
127
What’s the difference between productivity and efficiency
P) measured as output per worker
E) reducing waste from all inputs. Better efficiency should decrease unit costs and increase profits
128
What’s labour productivity and equation
How much each employee produces
= output per worker/ number of employees
129
3 ways to increase labour productivity
Improving worker motivation
Training(more knowledge)
New tech(increases speed)
Bonuses and incentives
130
What is JIT production
2 advantages and a negative
Just in time production
Reduces waste of materials and products by holding as little stock as possible
Storage costs r reduces
Cash flow improved as money isn’t tied up in inventory
Suppliers have to be very reliable
131
What do time based management aim to do?
2 advantages and 1 disadvantage
Reduces wasted time in the production process by competing on time.
Reduces lead time(time between a customer making order and taking delivery.)so cost of holding stock falls and customer is satisfied
Time may be placed above quality
132
What 2 types of tech do buisness use
Robotic engineering(usually manufacturing)
Computer tech(IT computers etc)
133
Why are robots useful
Reduce staffing costs
Faster
Can do dangerous jobs
Initial cost are high
Can go faulty and need mantinance
134
Advantages and disadvantages of tech
Improved productivity
Reduces waste (more effective production methods)
Better communication
Expensive
Maintenance/ updates
Could lead to redundancies as staff not needed
135
What’s a capital intensive firm?
2A and 2D
Used more machinery than ppl
Larger firms tend to be capital intensive
A) cheaper long term
Consistent levels of productivity
D) high set up cost
Long delays if machine breaks
136
What’s a labour intensive firm?
| 2A and 2D
Uses more workers and less machinery
A) cheaper for small scale production
Much cheaper where low cost labour is available (China/India)
D)harder to manage people
Can be unreliable
137
What is premium pricing
High pricing on high quality products
138
What are benefits of selling a high quality product
Can premium price
Don’t need as much promotion/advertising
Quality can double up as a USP
Good reputation
139
Disadvantages of selling a high quality product
Can be difficult to improve quality
Costly
140
What’s quality control
Means checking goods as you make them or when they arrive from suppliers to see if anything is wrong with them.
Often done by quality inspectors
Defects errors and puts them right
141
What is quality assurance
Means introducing measure into the production process to insure things don’t go wrong in the first place. It assumes you can prevent errors from being made in the first place
Employees also check their own work and are responsible for passing on good quality work to the best stage of the production process
142
Why is quality assurance more motivating than quality control
Empowering employees to self check the quality of their work can be motivating
143
What’s TQM
| Advantages and disadvantages
Total quality management- whole workforce is committed to quality improvements
A) better reputation for business
Fewer faulty products being made
Better team bonding as whole workforce committed to improving quality
D) can demotivate staff(too much effort)
Expensive to introduce
Can take a long time before any changes in quality
144
What are quality circles
Quality circles meet at regular intervals to discuss quality control issues. They use knowldge of employees from various departments.
145
What’s the kaizen approach?
A lean production method. Means employees should be improving their work slightly all the time.
Employees are encouraged to question why a problem has occurred
146
Why is it costly to hold stock?
Storage costs+ heating lighting security
Wastage cost(throwing away useless/un used stock
Opportunity cost( investing money into extra stock rather than something else)
147
What is stock control?
An aim to keep the levels of stock just right.
148
What is buffer stock?
And what influences it
The minimum level of stock a buisness needs
The storage space available, perishable?, rate at which stock is used up and lead time
149
What is re order time?
Equation
The amount the company orders from its supplier
= lead time(days *avrage daily use+buffer stock level
150
What are some things Human Resources have to think about
Anticipate future workforce size
Select correct employees with correct skills and qualifications etc
Full time/part time
151
How can HR department help employees reach they’re full potential
HR invests in training to improve productivity
Makes sure there are opportunity for career progression
Effective managment and working environment
152
Why is it important to have a diverse workforce
So that there will be a wide variety of skills, ideas and experiences from different ages, races and genders
153
Give 2 internal and external factors that affect HR
I) culture within business, some businesses may not care as much about labour turnover for example, so time shouldn’t be wasted on trying to improve it
I) amount of funding within business
E) state of economy (boom or recession affects how HR will recruit/train.
E) improvements in technology may require HR to hire certain people to use these machines
154
What’s hard HRM
Employees are seen like why other resource
Appraisals are judgemental
Training is done to meet production needs only
Can help managers to control workforce, however employees don’t used full pitential and feel undervalued
155
What is soft HRM
Employees are highly valued
Appraisals are developmental
Improve staff morale, employees feel valued.
156
Why’s it important for HR to listen to other departments
Can advise managers how to deal with problems
Improving relationship with managers and employees will increase motivation and decrease labour turnover
Allows business to work smoothly, and correct employees to be hired
157
Labour productivity equation
= output per period/ number of employees
158
Labour cost per unit equation
Labour costs/ units of output
159
Employee costs as a % of turnover
Employee costs/ sales turnover *100
160
How might HR react to an improving labour productivity
Reward employees with bonuses and increased salaries
161
How might HR increase labour productivity
Inprove motivation( see page 92 )
Retrain staff
Offer bigger incentives
162
Labour turnover % equation
Number of staff leaving/average number of staff employed* 100
163
Benefits and disadvantages of high staff turnover
A) constant stream of new ideas through fresh staff
A) enthusuasm of new staff influence other workers
D) training costs
D) lack of loyal/experienced workers
164
Labour retention % equation
Number of staff at end of period-number of leavers/number of staff employed at end of period* 100
165
What’s an organisational chart?
A chart that sets out authority and responsibility with the most authority at the top, for example: board of directors and bottom: shop floor workers
166
What are tall organisational structures?
Tell me about them
Organisations with lots of levels in their hierarchy
Long chains of command so communication is slow and decision making is longgggg
Lots of paperwork
167
What are flag organisation structures
Tell me about them nigaaaa
Few levels in their hierarchy
People given more responsibility and freedom
168
Why do flat organisational structures lead to overwhelmed managers
If the span of control (number of people who report directly to the manager) is too big as a result of a flat organisational design
Managers have more authority and responsibility so can become stressed
169
What is delayering
Removing parts of the hierarchy
| Create a flatter structure with wide spans of control
170
What is delegation
Giving responsibility for decision making to people below you in the hierarchy
171
What are centralised organisations and how 2A and 2D
All decisions are made by senior managers at TOP of business
A)business leaders have lots of experience
Managers get an overview of WHOLE business
D) excluding employees from decision making can be de-motivating
Organisation reacts slowly to change allowing competitors to get ahead(this is because senior managers don’t spend time on shop floor so they’re slow to notice consumer trends)
172
What are decentralised structures
A structure in hierarchy that spreads out authority to more junior employees
A) motivating
Quick decision making cos no need to consult managers
D) lack of experience
May not be able to see overall situation and needs of an organisation
173
What things do HR check for to asses the potential supply of new workers
Check the level of unemployment in area
Local infrastructure, housing and transport
174
Advantages and Disadvantages of internal recruitment
A) candidates already know business
Short and cheap process
D) can cause resentment among colleagues not selected
Leaves vacancy in another department
175
A and D of external recruitment
A) brings new and fresh ideas #epic
Brings new experience from other organisations #i have aids
D) long and expensive #nothalal
Candidates need a longer induction process
176
Benefits and non benefits of on the job training and off the job training
On) a) easy to organise
Lower cost of training
D) trainer and trainee not productive
Bad habits passed on
Off) a) trainers are specialists
No job distractions
D) no benefit to the business while training
Can be expensive
177
What’s the process HR takes if they have too much labour
See if they can be redeployed in other areas of the business
Or make them redundant
178
Internal factors the affect HR plans
Changes in production style maybe with technology
Expanding the business
179
What did F.W Taylor think about employees
That they would do the bare minimum work
He gave small repetitive tasks and managers took full responsibility for the workforce
More productive workers would get more pay
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What did Maslow think about employees
That they needed5 basic needs
Basic physical needs, safety, social needs, self esteem(achievement), meet potential
1) most important 5)least important
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What is job design?
The details of what is to be done and how it is to be done
182
What do Hackman and Oldham think about employees
That the job needed to be designed so that it would focus on a person
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What 5 things does Hackman and oldhams model swear by
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Skill variety
Task identity
Task significance
Autonomy(own decision making)
Feedback
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What are 4 ways a business can pay its employees (not very important)
Piece rate (workers paid per unit produced
Salary schemes(me)
Commision(workers paid a bonus on top of salary)
Performance related pay(kind of like commision)
185
What is flexible working
2a and 2D
Working hours and patterns that are adapted to suit the employees
A) improves motivation so productivity should improve
Helps employees with children
D) can be impractical for business
Home workers may be easily distracted
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Give 3 non financial ways of motivating employees
Job enrichment(gives more challenging work)
Empowerment(control over they’re work)
Teamwork
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How might the organisational design effect the payment method (to pay employees)
A tall organisational structure may be incline to used performance related pay because there are lots of levels of authorities to monitor productivity
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How might the size of the business affect the payment method chosen(way to pay employees)
A huge business may stick to hourly paid wages(salary schemes)
Because it’s difficult to monitor every employee
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What are some barriers that affect communication within a business, and how to over come
Attitude
Language barriers
Communication overload
Sense of purpose
Create a democratic management
Set clear instructions
Make sure both party’s recognise objectives and needs
Delayering can help with employee involvement
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Benefits to the employee and employer if they have a good relationship
Employer: good rep for business
Production and efficiency increase
Employee: job security
Bonuses/pay increases
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How might organisational size, structure, leadership and external factors affect employees in the decision making process
Size- big business employees need a representative to give them a voice, small it’s ez pz
Structure- wide/flat more likely to be represented, narrow/HARD HRM no say in decisions
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Democratic= a voice
Autocratic = go fuck urself
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Recession = less likely to give employees a say cos business tryna survive
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What’s a work council
A committee made up of employer and employee representatives that meet and discuss regular work issues, unlike quality circles that only discuss levels of quality
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What do trade unions do
Negotiate on behalf of employees in the workforce to the employer
194
Give some examples of financial objectives
Increase sales
Reduce costs
Profit objectives
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What’s a cash flow objective
An objective that aims to improve cash flow for example spread costs/revenues more evenly throughout the year
Hold less stock
Don’t let customers pay on credit
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What’s return on investment? (ROI)
It measures how efficient an investment is
ROI(%)= return on investment (£)/cost of investment(£)
*100
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What’s capital expenditure and capital structure
The money spent to buy NCA assests
Structure: the way a business raises capital to purchase assests
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Give 2 internal and external factors that influence financial objectives
Internal) overall objectives of the business
status of buisness (survival stage?)
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External) competitors (example: if a new competitor enters the market, buisness may want to have a financial objective that reduces costs
The economy (in a boom a business can set ambitious profit targets)
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If a business is price elastic?
They can reduce prices to increase demand
200
Ways to increase profits
Reduce costs
Improve quality
Advertising
201
3 ways of measuring profit
Gross profit (accounting)
Operating
Profit for the year (weird)
Gross = sales revenue- cost of sales
Operating = gross - operating expenses
Profit for year = operating profit + other profit - tax - net finance costs
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How to workout gross profit margin (%)
(%) = gross profit/ sales revenue * 100
THE RULE FOR @margin = @ / sales revenue * 100
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Operating profit margin? (%)
Operating profit/ sales revenue * 100
THE RULE FOR @margin = @ / sales revenue * 100
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Profit for the year margin? (%)
Profit for the year/ sales revenue * 100
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What’s the cash flow cycle
The gap between money going out and coming in
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What’s the ideal cash flow situation
Where there’s a short period of time from the start of production to the sale of goods
And where the business is given a longer credit period by its suppliers then it gives its customers
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Give 2 things that affect the length of the cash flow cycle
Type of product, how long it takes to make the product
Credit payments
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What’s a cash flow forecast?
A forecast that estimates the amount of money a business can expect to flow in and out of a buisness
It’s based of past experience
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Give some downsides to using cash flow forecasts
Can be based on false assumptions
Good cash flow forecasting needs a lot of market research
A false forecast can have disastrous results
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What’s a budget?
A forecast of future earnings and future spending
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Give 3 types of budgets
Income
Expenditure
Profit
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How might one set an income and expenditure budget
I) buisness researches and predicts sales
E) buisness researches how labour costs raw material costs taxes and inflation go up over the year
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3 a and 3 d of budgets ;)()(:£):’keif
A) help achieve targets
Help control income and expenditure
Help persuade investors that the business will be successful
D) can be very restrictive
Time consuming
Inflation can be difficult to predict and income may change
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What’s the capacity of an organisation
The maximum output that it can produce without buying anymore assests
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Give 3 things that affect capacity
Number of employees and skill level
Technology(machinery)
Production process
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Capacity utilisation formula? %
= output/ capacity * 100
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Why’s 90% CU better than 100% CU???????
Ps hope ur going strong PMO🚫
No downtime for machines/ employees
No margin of error
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How can a business increase capacity
Increase number of employees/ number of shifts
Speed up production(maybe with motivation)
^^
Productivity
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How can a business temperaraly increase capacity
Sub contract work (work for other businesses)
220
Why’s under utilisation inefficient
Because it’s low CU
not getting full use out of machines, and output is lower so fixated costs are spread out over fewer units meaning costs per unit increase
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How can businesses fill spare capacity?
Sub contracting
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How can businesses reduce capacity in short term and long term
S) stopping overtime work
Allocating staff to other areas within business
L) make staff redundant
Stop replacing retiring staff
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What’s a favourable and adverse variance?
Variance= business is performing better/worse then expected
F) increased profit
A) reduced profit
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What’s cumalitive variance?
All the variance added
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If 10k is spent on raw materials but the budget was 6k what’s the variance?
4K adverse
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Why’s it important to tackle variances ASAP
Adverse: somethings reducing profit important to fix
Favourable: set more motivating difficult targets,
Also, if a business had a favourable variance and a certain area is doing exceptionally well, this can be spread to other areas
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2 internal and 2 external factors that affect variance
I) improve efficency
Changing selling price(if it happens after budget is set)
E) changes in economy(cost of wages)
Cost of raw materials can increase
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What effect can small and large variances have on employees
Small) adverse can motivate because staff feel they can tackle a small challenge
Favourable can motivate because employees want to continue what they are doing
Large) adverse can make staff feel demotivated because the task can seem too difficult
Favourable because staff don’t feel the need to try as hard because they’ve smashed it
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Give 3 decisions based on adverse variance
Streamlining production for efficency
Cut costs by negotiating a better deal with suppliers
Change marketing mix(p’s)
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Give 3 decisions based on favourable variance
Set more ambitious targets
Favourable variance could suggest more sales so increase production
231
What’s break even and the formula
The amount of output needed to cover costs
=fixed costs/ contribution per unit
232
Equation for contribution?
Selling price- variable costs
233
Revise the break even chart page 78
Nigga bum poop sex
234
What’s the margin of safety equation and what is it?
=actual output - breakeven output
The gap between what you’ve produced compared to what you need.
High is good
Low is not as good
Minus is bad
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2a and 2 d of breakeven analysis
A) easy and quick to do
Can be used to persuade banks for a loan
D) if data is wrong so is results
Variable costs don’t always rise steadily
236
Give 2 internal sources of income for a business
1a and 1d for each
Retained profits- no interest on money
Shareholders may not like because dividends
Rationalisation(selling assests)
No interest
Don’t have assest
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2 short term external sources of income
1a and 1 d for each
Overdrafts- easy and flexible
High rates of interest
Debt factoring- get money that’s owed instantly
Have to pay a fee
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Give 2 a and 2 d for bank loans
Guarnteed money for duration of loan
Interest charges for a loan are usually lower than for an overdraft
Can be difficult to arrange
Keeping up with repayments can be difficult if cash isn’t coming into buisness quickly enough
239
Give 1 other external source of income
2 a and 2 d
Share capital- selling shares
Money doesn’t have to be repaid and new shareholders can bring new ideas
They have a say in how business is ran and also your gonna have to pay more money in dividends
240
What’s a supply chain
Chain of processes to make a finished product/service
For example really long one:
Provider of raw materials(supplier)—> producer—> whole sailer—> retailer—> customer
241
What are core and peripheral workers?
Core: essential to business like senior managers and skilled workers. Full time and permenant contracts
P: Aren’t essential to a buisness. Temperature zero hour contracts and often part time
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What is outsourcing and why’s it good/ bad
Outsourcing is another word for subcontracting
A) may benefit from specialised knowledge they are doing subcontract work for
D) doesn’t have control over quality of outsourced work- could have a negative effect on the reputation
243
What are important factors to consider when picking suppliers
There are 6 but try for 4
Price
Payment terms (how to be paid and when)
Quality
Capacity(any peaks in demand?)
Reliability
Flexibility (respond easily to changes on short notice)
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Benefits of having a strategic relationship with a supplier
JIT(just in time production)
Innovation (companies who work closely with suppliers can share ideas)
245
What’s 1 a and 1 d to limiting the number of suppliers they buy from?
A) cheaper
D) danagerous because if there are complications with a supplier buisness is fucked
246
How might a supply chain react to an increase in demand
Retailer hire peripheral workers on short term contracts
Distributor could increase the number of deliveries by subcontracting work to another distributor
Manufacturer could temporarily increase capacity utilisation to 100% and get more raw materials from alternative supply sources
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Benefits of improved quality
Better rep
Loyal customers(repeat customers
Fewer returns
248
Difference between quality control and assurance
Assurance (kaizan) employees improving their work all the time, responsible for mistakes and so defects are very rare.
249
ROCE equation
Operating profit/ capital employed
*100
250
Inventory turnover equation
Cost of sales / cost of avrage stock held
251
What’s swot analysis
Strengths
Weaknesses
Opportunities
Threats
252
Gearing ratio
NCL/ capital employed
*100
253
Benefits and drawbacks of high gearing
B) more money to expand business
When interest rates are low, high gearing is less risky
L) might not be able to afford repayments
Interest rates may increase suddenly
254
Good and bad for ratios
G) looks at businesses performance and allows for good decision making
Potential investors look at this and decisde to invest
B) doesn’t take into account internal factors like quality of staff
Doesn’t take in to account external factors such as market environments
255
What’s a core competence?
Unique things that a business has like specialist staff training
Or iOS for Apple
256
What does competition law cover?
Fix prices
Can’t divide market to avoid competition
257
What is the trade descriptions act
Ensures businesses don’t mislead customers
258
How to calculate GDP
Total consumer spending+ business investment+ government spending + the value of exports - value of imports
259
What’s demand pull inflation
High inflation can be caused When demand increases because there is more disposable income - and companies can’t produce enough fast enough.
They increase they’re prices.
Excess demand when the economy is near full capacity is called overheating
260
What’s cost push inflation
Inflation can be due to rising costs pushing up prices
261
Who’s most affected by inflation
Companies with premium products because if customers have less money to spend they look at cheaper alternatives
262
Why would a period of high inflation be good time for firms to expand
If interest rates are lower than rate of inflatation, it’s cheap for them to borrow money to invest in the business
263
When you can buy more euro for the pound, is exporting goods cheaper or more expensive?
Expensive because people in Spain have to pay more.
You will have to cut prices and reduce profits
This creates uncertainty because exchange rates can change quickly
264
What’s fiscal policy
+ what r the 2 types
Changes taxes and government spending - controlled by government
Expansionary=
Economic slowdown/ high unemployment —>
Cutting taxes/or increase spending—> demand for goods and services increase
Contractionary=
Production at 100% capacity// risk of high inflation—> raising taxes/ or cutting spending—> demand for goods and services decrease
265
What is monetary policy
Tweaking interest rate to control inflation and exchange rates- done by Bank of England
266
What does it aim to do??
Control inflation
Control economic growth
Manage unemployment levels
267
What’s protectionism and open trade
1A and 1d for each
P) when government protects businesss and jobs from foreign competition by giving them subsides(money) while importing tariffs and quotas on inported products
A) allows small business to grow cos don’t have to compete with multinational as
D) prices of domestic goods rise without a change in quality as there is less competition
OPEN TRADE)
when imports and exports are not restricted
A) more choose and lower prices for consumers
D) fewer local jobs as multinationals expand abroad
268
How to work out contribution per unit
Selling price - variable costs
(Per unit) unless you want total contribution
269
How does tech help with stock control
Technology can be used to know exactly the level of stock it has at any given moment
270
What’s CSR
2ad and 2 disad
The idea that a company should go above and beyond what is required by law to help: society, the workforce’s quality of life and the environment
A) improves brand loyalty
People will choose to work for firms with good CSR records- so the company willl attract more talented applications
D) CSR IS EXPENCIVE SO SHAREHOLDERS MAY SEE AS MISUSE OF FUNDS
Costs pay be passed on to customers - but usually they are willing to pay more for “socially responsible” products. However during recession sales may fall
271
CSR PYRIAMID WHAT THE FUCK DOES IT LOOK LIKE
Bottom going up
Economic responsibilities
Legal responsibility
Ethical responsibility
Philanthropic responsibility
272
Porters 5 forces..
WHAT THE FUCK ARE THEY NIGGER
Barriers to entry
Buyer power
Supplier power
Threat of substitution
Rivalry
273
ARR AND PAYBACK
If you have forgotten nigger go to page 138, or unit 7 booklet
And discounted NPV THING
Nigger nigger nuggets really I don’t have to do it bruh is that the one that I got was going to the doctor I just don’t know how much it was going on to see what you gonna do it all good day and then go get some stuff bro I’ll just go to the store I’ll let ya guys out I’ll talk ya know what I want and I wanna see you in the morning and then I will have a shower and then go to get the girls to go get some stuff for me and then go get back to the gym I’ll let you know when I get there I’ll let you know when I get there I’ll let you know when I get there I’ll let you know when I get there I’ll let you know when I wanna see you tomorrow babe love you babe love ya bye babe I’ll let you know what I’m going to do to you babe I love you babe bye bye now I’ll let you know when I get there I’ll be there in about a week or two so I’ll just be there in about the same time
274
What is Ellington’s triple bottom line model?
People planet and profit
275
Give some examples of protectionist policies
Subsides
Tariffs(more expensive to import and export)
Quotas (limits on imports and exports)
276
Why do governments incourage enterprises and how do they do it
Enterprises benefits the economy as new businesses increase productivity and create new jobs the government is especially keen to promote enterprise in areas that need economic regeneration this provides lots of opportunities for new businesses they do this by allowing enterprises to borrow at low interest rates and encourage private investment to make it easier for small businesses to succeed they don’t have to pay business rates
277
Describe and ansoffs matrix
Agreed with top left being market penetration top right being product development Bottom left being market development and bottom right being diversification the products are on the top and the left side as existing the right side is new and markets is on the left and the bottom is new and the top is existing
278
What are porters three generic strategies to gain advantages in competition
Cost leadership. Differentiation. Focus.
279
Describe Porter strategic matrix
On the left side is MarketScope the bottom narrow the top broad and along the bottom we have competitive advantage on the left cost advantage and on the right differentiation advantage on the top left of the grid we have cost leadership on the bottom left we have cost focus on the top right we have differentiation and on the bottom right we have differentiation focus
280
Why are large businesses often more stable than small businesses
Large businesses benefit from economies of scale and economies of scope which means lower unit costs bigger businesses often have a range of products or services so they can cope better if the market changes
281
What are the four types of economies of scale. Not super important but worth looking at
Technical. Managerial. Purchasing. Marketing.
282
What is economies of scope
Economies of scope arise when a business produces multiple products instead of specialising in just one.
Economies of scope allow businesses to charge low prices due to lower unit costs this gives in the cupboard so advantage of the over of the businesses
283
What is diseconomy is of scale
Diseconomy is of scale make unit cost increase as the sale of production increases this can happen because large firms are harder to manage them small ones poor coordination make the business less efficient. Communication is harder in big businesses especially if the business has a tall structure
284
What is retenchment
Retention amount is when businesses may become smaller which is necessary in order for a business to remain profitable profitable in some situations the need for attention and is often due to diseconomy is of scale declining market economic recession or improved competitor performance.. The business may become smaller by cutting jobs reducing output and splitting the business up which is also known as demerging
285
Advantages and disadvantages of organic growth
Advantages it’s easy for the business to manage internal growth and control how much the business will grow.Less destructive changes mean that workers efficiency productivity and morale remain high
Disadvantages. They can take a long time to grow business internally. Competitors may grow faster inorganically meaning the organic business will be less competitive also growing in size brings its own problems i.e. large companies can suffer from diseconomy is of scale and this can therefore lead to retrenchment
286
Revise the Grindr model
Ok
287
Give some examples of external growth
Mergers. Went to companies join together to form one company. The main motive for merges is synergy(share resources + economies of scale
Takeovers is when one big business buys enough shares in another so that it has more than 50% of total shares hostile takeover is when a plc by the majority of the shares in another plc against the will of the directors of the company and agree takeovers happened when shareholders agree to sell the business
288
What is horizontal vertical and conglomerate external growth
Horizontal integration happens when a firm combines with another firm in the same industry at the same stage of the production process e.g. to suppliers. Vertical integration because when a firm combines with another firm in the same industry but at a different stage of the production process-forward vertical integration is when a business combined with another business further on in the production process so a manufacturer merging with a retailer. Backward vertical integration is when a business combines with another business at an earlier stage of the production processSo for example a retailer taking over its supplier.... Conglomerate mergers of between unrelated firms they aren’t competitors of each other and they aren’t each other supplier or customer
289
What are some disadvantages of external growth
There can be tensions between staff of merged businesses. Some parts of the new organisation may need to be sold or closed this could mean additional redundant redundancies. The business can grow too fast leading to diseconomy is of scale and retention meant
290
What are the two types of innovation
Product innovation – making new goods/services or improving existing ones. Paragraph process innovation – putting in place new or improved production and delivery methods e.g. Amazon Prime.
291
What is important for effective innovation
Strong research and development department is important
292
Benefits and drawbacks two of each of innovation
Benefits – businesses can initially charge higher prices for innovative products and services before their competitors bring similar products to market. Businesses with lots of innovative products can take advantage of economies of scope.
Drawbacks – innovation can be a very costly and time-consuming process businesses risk running out of money if they invest too much into R&D and don’t get the products to market quickly enough. Businesses risk ruining their reputation if innovative product is poor quality
293
One advantage and one disadvantage of Kayzan
Benefit of Kayzan is small changes of improvement can add up and lead to innovation as well as workers are encouraged to ask themselves how they can improve which creates a working environment in which innovation can thrive. Drawback is Work as a focus on making small changes to their own job rather than about thinking about big changes they could be making to the whole process this means that innovation big Leaps are rare
294
Give two ways the size of that of the market can affect the attractiveness of international markets
Countries with a large populations and developing markets such as China and Brazil will be attractive because their markets are bigger meaning more potential customers for businesses. The wealth of the populationFor example if the business is selling designer clothes they may want to focus on a country to sell their wages are generally high and there are high levels of disposable income such as Switzerland rather than Bangladesh
295
Give to political and economic factors affecting the attractiveness of international markets
The laws in that specific business such as employment laws environmental laws and tax laws
Fluctuations in exchange rates and also potential tariffs and quotas and subsidies set in place in that particular country
296
Give some ethical factors that can affect the attractiveness of international markets just one
Cheap labour can make certain countries attractive for business however businesses need to be careful that they are not exploiting workers-this is very unethical. Also businesses will find it easier to trade with countries with similar cultures and languages.
297
What is licensing, alliances and direct investment
Licenses – businesses can get foreign firms to produce the products on the license. Alliances-businesses can merge with similar companies abroad combining local knowledge with a product that has already proved successful in another country this means the costs and risks are spread out. Direct investment-direct investment is when a business takes over or merges with the business in a different country this means the business can get an instant marketShare and can enter the market quickly and also reduces the risk of Phalia as the business benefits from the knowledge and experience of the local market and culture provided by the business he joins with
298
How my HR react to a business this moved into an international market
One way HR might react is by recruiting people who can speak multiple languages so that they can communicate more effectively within the business and with the customers
299
How can locating abroad reduce costs
Cheap labour and the cost of land and office space tends to also be cheaper overseas
300
What is off shoring and reshoring
Off shoring means businesses locate some of the departments such as call centres or payment processing department overseas this is because these countries can also provide cheaper labour than in the UK but it’s not always good for a companies brand image. Re-shoring is when a business moves departments back to his country of origin this allows the quality of its products and processes as manufacturing is easier to monitor and control of everything is made in the same country also sometimes cheaper labour costs is the main incentive to offshore butAs the wage gap between UK workers and overseas workers decreases more companies will begin to reassure
301
Economies of scope is what?
Similar to economies of scale, scope is when you bring new variety’s of products to the production line to reduce costs. I.e a shoe manufacturer releasing children’s shoes aswell as adult shoes - would reduce over all unit costs as the same equipment to make the children’s shoes will have been used for the adult shoes
302
One advantage of moving relocating into the EU For a business
Avoid trade barriers: the EU has free trade for countries within the EU, and they place tariffs on countries outside the EU.
303
Describe to me Barlett and Ghoshal is international business strategies
Agreed with the X axis pressure for local responsiveness.
Along the X axis the bottom left is low and the bottom right is high along the Y axis the bottom is low and the top is high
Y axis pressure to reduce costs. Top left global strategy top right transnational strategy bottom left international strategy bottom right multidomestic strategy
304
Why might finance be difficult in a foreign country
The business has to learn to adapt to work with different currencies. Trade laws limit the amount of money that multinationals can take out of the country’s economy – finance will need to comply with the trade laws of different countries
305
What is incremental change and disruptive change and what is Kurt Lewin’s force field analysis
Incremental changes a gradual change that use a strategic plan. Destructive change is very sudden and usually means that the business will close or sell off subsidiary companies spend heavily on promotions to raise customer confidence or totally restructure of the way the firm is organised. The force field analysis shows the forces for change in the forces against change and lists them 1 to 5 being the most one being the least on how important they are
306
What is restructuring and why is it useful
Restructuring is changing the organisational structure of the business and the main reason for it is to maximise the efficiency of decision-making communication and division of tasks restructuring can also reduce costs which makes the business more competitive
307
What’s the difference or what are the main differences between mechanistic structures and organic structures
Mechanistic structures use a centralised traditional structure with a well defined hierarchy of power. Decisions are made by managers at the top of the hierarchy
Organic structures uses a decentralise structure meaning employees get more say in the decision-making. By using a flat structure the business can now take advantage of the fast communication and the fact that the business can change easily based on the environment
308
How can knowledge and information management increase flexibility
Relevant correct up-to-date and easy to analyse data can be distributed efficiently and quickly sorted and allows employees to find the information that they require. This allows for flexibility
309
What is the benefit of having zero our contracts for the employer
Flexible employment contracts helps a business to manage change because it can easily cope with increases in demand and decreases. The business will do this by hiring a mixture of core and peripheral workers
310
Give a downside to the employer 40 our contract
Could result in poor communication and teamwork between staff who work at different times-this could make it a lot more difficult to manage change efficiently and business may need to put a strategy in place to deal with it
311
What are Kotter and Schlesinger is for reasons for resistance to change
Self interest miss understanding low tolerance of change and different assessments of the situation i.e. they think that the decision can be better made
312
What are the six ways of overcoming resistance to change as per Kotter and Slazengers model and in order of best to worst
Education and communication. Participation and involvement. Facilitation and support. Negotiation and agreement. manipulation. Explicit and implicit coercion.
313
What are the benefits of having a strong culture
Employees need less supervision. Staff are more loyal so staff turnover is low. Employee motivation increases.
314
What are the four types of cultures and what affect all these cultures have on the level of resistance to change for employees
How are-they may be resistant to change because I don’t have enough faith in senior managers who they feel out of touch. Role-any changes that are brought in will meet resistance as employees are not used to doing things differently. Person-individuals often in the person culture will think about what is best for themselves rather than what is best for the organisation. Task-staff working in a company with a tarts culture are likely to think that changes normal because they are used to changing teams oftenAnd working with a variety of people this means they are less resistant to change
315
What is the entrepreneurial culture
Employees are Encouraged to look for new ways of bringing revenue in the company. As employees are encouraged to be creative and innovative they are likely to be much more open to change especially when changes are being made on their suggestions
316
How much business growth influence organisational culture
If a business grows it might need to take on new employees. New employees may have different expectations and aims which could Influence the pre-existing culture
317
What are Hofstead’s six dimensions of national culture
Power distance-the extent that people except the power and wealth is distributed on equally societies with low power distance except expect quality. Uncertainty avoidance Finn low uncertainty avoidance tend to be open to change. Individualism versus collect 2%-the extent to which people are expected to look after themselves rather than support each other. Masculinity versus femininity-the higher the Masculinity the more focus there is on power and money. Long-term orientation – the higher the long-term orientation the more the society looks to the future and accepts new ideas rather than following tradition. Indulgence versus restraint – indulgent societies allow their people to satisfy their desires and impulses within reason restraint societies attempt to regulate the desires of their people
318
What are Charles Handy’s model of culture
For cultures-power role task and person
319
What is a contingency plan and crisis management
Contingency plan is a plan to help a business respond to lots of different types of crisis. Crisis management is when an unexpected situation occurs in a business has to respond
320
How can strategic planning help and hinder a business
It gives a clear direction and can communicate exactly what the business is trying to achieve so everyone works towards the same goals. It makes the managers think about the strengths and weaknesses of the business and its external threats and opportunities. However planning can restrict the business there is flexibility and employees might think that they have to follow the plan even if the situation has changed. Strategic planning is more likely to be useful for businesses operating in stable market rather than innovative businesses that would be more suited to using an emergent strategy
