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Business > Alevel > Flashcards

Alevel Flashcards

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

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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

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3
Q

Give 4 common business objectives

A

Profit objective

Growth objective

Survival objective

Cash flow objective

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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

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5
Q

Why is large scale production cheaper?

A

Because the fixed/ variable costs are spread out across more products

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6
Q

3 reasons why profit is important

A

Profit can motivate people

Good source of finance

Profit can attract investors

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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

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8
Q

What are social enterprises

A

Normal businesses with a social objective. The profits are used for social activities

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9
Q

What are mutual organisations?

A

Businesses where profits are reinvested into the business to reduce prices. (Eg building societies.)

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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

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11
Q

What’s a sole trader?

A

A self employed individual that owns his own business. Is responsible for the business (unlimited liability)

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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

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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

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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

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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

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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

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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

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18
Q

Do shareholders control decisions in PLC’s ( public limited)

A

No

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19
Q

Who are shareholders

A

Owners of the business - individuals who have bought shares

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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)
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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

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22
Q

When unemployment rates are high, what happens to the cost of labour?

A

Gets cheaper

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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

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24
Q

What is seasonality?

A

Seasonality is the variations in demand and supply throughout the year

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25
Q

What’s perfect competition?

An oligopoly?

A monopoly?

A

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)

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26
Q

What’s demographic change?

A

How the structure of the population changes in terms of age, sex and race

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27
Q

How has the market changed to suit the UK’s population?

A

With an ageing population- banks have started offering retirement accounts. Brain training games directed at older people

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28
Q

What has the uk’s ethnic diverse population led to?

A

Certain products such as food not traditionally available in the UK
Or supermarkets stocking exotic ingredients

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29
Q

How do business polute the environment

A

Production processes

Traffic pollution through transportation

By using raw materials/ unsustainable stuff

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30
Q

Advantages of being environmentally friendly

A

Improve public image for a business- advantage over competitors

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31
Q

Benefits of being ethical

A

Good for the reputation so demand for the profits can be high even if they’re more expensive then rival products

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32
Q

How can technological advances influence demands and costs?

A

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

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33
Q

What do managers do ?

3 points

A

Set objectives for their department

Managers analyse and interpret data

Managers make decisions and review the effectiveness

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34
Q

What are the 4 types of managers?

A

Authoritarian or autocratic

Paternalistic

Democratic

Laissez-faire

Look to page 18 for more info

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35
Q

Give 2 internal and external factors that affect manegement and leadership styles

A

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

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36
Q

What’s the tannebuam Schmidt continuum?

A

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

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37
Q

What’s the Blake mouton Grid?

A

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
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38
Q

What are the 6 steps for decision making?

A 
Set objectives
Collect data
Analyse data
Review decision
Implement decision
Make decision
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39
Q

Advantages and disadvantages of using data to make decisions

A

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’

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40
Q

What’s intuitive decision making

And advantages and disadvantages

A

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

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41
Q

What 3 other things influence decisions?

A

Risk

Reward

Uncertainty

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42
Q

What’s opportunity cost?

A

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

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43
Q

What are the MOREE management factors?

A

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

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44
Q

What are decision trees

A

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

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45
Q

Advantages and disadvantages of decision trees

A

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

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46
Q

What are the two internal stake holders of a business and the 4/5 external?

A

Internal) owners and employees and managers

External) customers, suppliers, local community, government, creditors.

Look to page 24

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47
Q

What is stakeholder mapping?

A

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)

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48
Q

What is the marketing mix?

A

All the decisions a business makes about promoting and selling s product. Includes research, analysis and planning

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49
Q

Why is increasing market share a beneficial marketing objective?

A

It’s useful because it tells a business how well it’s doing compared to its competitors

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50
Q

Name 2 qualitative and quantitive marketing objectives

A

Qualitative) improving product quality, surviving a competition

Quantative) increase sales growth, increase market share

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51
Q

Give 2 internal factors that affect marketing

And 2 external

A

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

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52
Q

Give 2 ways the law directly affects marketing objectives

A

Predatory pricing(cutting prices to force a competitor out of business.)

Trade descriptions act(business can’t lie about products.)

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53
Q

Give 5 ways a market can be classified

A

Geography(local, national, international)

Nature of product(agricultural, technological)

Seasonality

Development level(new, growing, large)

Product destination(trade, private consumers

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54
Q

Equation for market growth(%)

A

New market size-old market size

Divided by

Old market size

Times by 100

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55
Q

Equation for market share (%)

A

Sales

Divided by

Total market size

Times 100

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56
Q

Equation for sales growth(%)

And what happens if the sales growth is positive?

A

Sales this year- sales last year

Divided by sales last year

*100

Positive= company is gaining sales

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57
Q

What’s market mapping?

A

A graph that compares two features of products or brands- eg price and quality

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58
Q

What information can a business gain from market mapping?

A

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

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59
Q

Limitations of market mapping

A

Can simplify things too much

Opinions may be biased on a market map as different people have different views

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60
Q

What reasons are market research used for?

A

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

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61
Q

What are the 3 types of Sampling

A

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

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62
Q

What is bias and how do businesses avoid it?

A

Biased opinion

Questionares should avoid leading questions

Don’t pressure the interviewee

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63
Q

What are trends in graphs?

A

Long term movement for a variable. Can be upward, downward or constant. Usually graphs has fluctuations

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64
Q

Whats extrapolation?

A

A line of best fit that’s used to find future values on a graph

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65
Q

What is correlation?

A

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

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66
Q

What are confidence levels and conceding intervals?

A

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

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67
Q

How can you increase the confidence level?

A

Widen the confidence interval

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68
Q

How can technology be used to find information about customers?

3 ways

A

Loyalty cards

Social media

Google(search engines)

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69
Q

2 advantages and disadvantages of using IT to help analyse marketing data

A

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

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70
Q

Formula for price elasticity of demand?

A

%change in demand

Divided by

%change in price

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71
Q

If the PED is greater than 1 what does that mean

And less than one

(Ignore the minus sign)

A

>

  1. Product if price elastic

<1. Product is price in elastic

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72
Q

What does it mean if a product is price elastic?

Give an example of a price elastic product

A

Means a price increase will make sales revenue go down

Example: pencils or something

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73
Q

What does it mean if a product is price in elastic and give an example

A

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.)

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74
Q

Fact about PED

A

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

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75
Q

Formula for income elasticity of demand

A

%change in demand

Divided by

%change in real income(change in income)

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76
Q

What does it mean to have an income elasticity of less than 1

Give an example

A

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

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77
Q

What does it mean to have an income elasticity of more than 1

Give an example

A

As income rises, demand rises but at a faster rate than the increase in income.

Example: Luxury goods like designer clothes

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78
Q

When are price elasticity and income elasticity used by a business?

A

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

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79
Q

What is STP

A

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

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80
Q

What are the 4 different ways to segment a market?

A

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

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81
Q

2 advantages and disadvantages for segmentation

A

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

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82
Q

What’s concentrated, differentiated and undifferentiated marketing?

A

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

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83
Q

What is positioning?

A

Creating an image of your brand or product in the mind of your target customer

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84
Q

Give 2 influences on positioning

A

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

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85
Q

What’s the marketing mix?

A

A mix of factors that firms consider when marketing a product- factors that’ll make customers either buy it or not

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86
Q

What are the 7 p’s?

A 
Price
Product
Places
Promoted
People
Physical environment
Process
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87
Q

Give 4 influences on the marketing mix

A

Competitions

Location of a business

Type of product

Target market segment

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88
Q

What are the 3 types of consumer products

A

Convenience

Shopping

Specialty

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89
Q

What’s a product line

Whats a product mix

A

Line- consists of related products with similar uses and target customers

Mix- combination of all the product line that a business produces

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90
Q

What’s the Boston matrix?

A

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

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91
Q

How can new products be great for a business

A

Bring in new customers

Give a competitive advantage

Allow companies to maintain a balanced product portfolio

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92
Q

What does the product life cycle show?

A

The sales of a product over time

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93
Q

Why is a product life style useful?

A

Valuable for planning marketing strategies and changing the marketing mix.

Marketing decisions will be based on where a product is in its life cycle

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94
Q

What are the 5 stages of a product?

A

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

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95
Q

What are extension strategies?

A

Strategies that try to prolong the life of a product by changing the marketing mix

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96
Q

Give a few examples of extension strategies

A

Product development

Market development

Change the pricing

Promote the product

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97
Q

What’s price skimming

A

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

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98
Q

What’s penetration pricing?

A

The opposite of skimming.

Launching a product at a low price in order to attract customers and gain market share

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99
Q

Give 4 factors that affect pricing decisions

A

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

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100
Q

What’s predatory pricing

A

When a business delibaretly drops prices in order to force another business out of the market(illegal)

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101
Q

What’s competitive pricing

A

When companies minister competitors prices to make sure their own prices are set at an equal or lower level

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102
Q

What’s Psycological pricing

A

When pricing is based on customer expectations. Example: higher price may result in the consumer believing the product is of higher quality

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103
Q

What’s loss leaders?

A

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

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104
Q

What’s dynamic pricing?

A

Just changing prices depending on competitor prices and demand

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105
Q

How does advertising change throughout a products life style

A

Heavily advertised at launch

Growth phase) Less advertisement- brand image improvement

Maturity- customers reminded of the product. So less advertising but still some

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106
Q

Name 3 promotional techniques

A

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

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107
Q

What’s a Chanel of distribution

A

The route a product takes from the producer to the consumer

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108
Q

What are retailers and wholesalers

A

R) sell to customers from shops

W) buy products cheaply in bulk

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109
Q

How do wholesalers make distribution easier?

A

The wholesaler will distribute all the products to retailers so the manufacturer doesn’t have too

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110
Q

What are the 4 different channels of distribution?

A

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

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111
Q

What’s multi channel distribution

A

When businesses sell through more than one method eg online and store

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112
Q

Benefits of online and store

A

Wider target audience

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113
Q

What’s the ‘process’

A

How easy it is for customers to get what they want, when they want it

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114
Q

What’s the purpose of HR?

A

To ensure a business achieves the maximum benefit from its employees at the minimum cost

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115
Q

How does HR work

A

He decides how to pay staff, treat them and use their skills. Work closely with managers to help them control the workforce

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116
Q

What are operational objectives?

And list 8

A

Targets set to improve production

Quality
Costs
Flexibility for customer wants
Efficiency
Innovation
Environment
Speed of response 
Dependability(can customer count on business?)
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117
Q

What is added value?

A

The added value to a product through various stages of production

= sales revenue - cost of goods

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118
Q

Give 2 internal and external factors that affect operational objectives

A

I) availability of resources

Overall objectives

E) competitors performance

Demand for product

New technology

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119
Q

What are the 5 main methods of production?

A

Job production

Flow production

Batch production

Cell production

Lean production

Go to page 55 for more info :) no fucking do it

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120
Q

What is job production

A

Production of one off times by skilled workers

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121
Q

What is flow production

A

Mass production on a continuos production line with division of labour

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122
Q

What’s batch production

A

Production of small batches of identical items

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123
Q

What’s cell production

A

Production divided into sets of tasks each completed by a work group

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124
Q

What’s lean production

A

Streamlined production with waste at a minimum

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125
Q

What production methods would help a buisness improve efficiency

A

Batch

Flow

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126
Q

What type of production is most environmental friendly

A

Lean production

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127
Q

What’s the difference between productivity and efficiency

A

P) measured as output per worker

E) reducing waste from all inputs. Better efficiency should decrease unit costs and increase profits

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128
Q

What’s labour productivity and equation

A

How much each employee produces

= output per worker/ number of employees

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129
Q

3 ways to increase labour productivity

A

Improving worker motivation

Training(more knowledge)

New tech(increases speed)

Bonuses and incentives

130
Q

What is JIT production

2 advantages and a negative

A

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
Q

What do time based management aim to do?

2 advantages and 1 disadvantage

A

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
Q

What 2 types of tech do buisness use

A

Robotic engineering(usually manufacturing)

Computer tech(IT computers etc)

133
Q

Why are robots useful

A

Reduce staffing costs
Faster
Can do dangerous jobs

Initial cost are high
Can go faulty and need mantinance

134
Q

Advantages and disadvantages of tech

A

Improved productivity
Reduces waste (more effective production methods)
Better communication

Expensive
Maintenance/ updates
Could lead to redundancies as staff not needed

135
Q

What’s a capital intensive firm?

2A and 2D

A

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
Q

What’s a labour intensive firm?

2A and 2D

A

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
Q

What is premium pricing

A

High pricing on high quality products

138
Q

What are benefits of selling a high quality product

A

Can premium price

Don’t need as much promotion/advertising

Quality can double up as a USP

Good reputation

139
Q

Disadvantages of selling a high quality product

A

Can be difficult to improve quality

Costly

140
Q

What’s quality control

A

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
Q

What is quality assurance

A

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
Q

Why is quality assurance more motivating than quality control

A

Empowering employees to self check the quality of their work can be motivating

143
Q

What’s TQM

Advantages and disadvantages

A

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
Q

What are quality circles

A

Quality circles meet at regular intervals to discuss quality control issues. They use knowldge of employees from various departments.

145
Q

What’s the kaizen approach?

A

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
Q

Why is it costly to hold stock?

A

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
Q

What is stock control?

A

An aim to keep the levels of stock just right.

148
Q

What is buffer stock?

And what influences it

A

The minimum level of stock a buisness needs

The storage space available, perishable?, rate at which stock is used up and lead time

149
Q

What is re order time?

Equation

A

The amount the company orders from its supplier

= lead time(days *avrage daily use+buffer stock level

150
Q

What are some things Human Resources have to think about

A

Anticipate future workforce size

Select correct employees with correct skills and qualifications etc

Full time/part time

151
Q

How can HR department help employees reach they’re full potential

A

HR invests in training to improve productivity

Makes sure there are opportunity for career progression

Effective managment and working environment

152
Q

Why is it important to have a diverse workforce

A

So that there will be a wide variety of skills, ideas and experiences from different ages, races and genders

153
Q

Give 2 internal and external factors that affect HR

A

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
Q

What’s hard HRM

A

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
Q

What is soft HRM

A

Employees are highly valued

Appraisals are developmental

Improve staff morale, employees feel valued.

156
Q

Why’s it important for HR to listen to other departments

A

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
Q

Labour productivity equation

A

= output per period/ number of employees

158
Q

Labour cost per unit equation

A

Labour costs/ units of output

159
Q

Employee costs as a % of turnover

A

Employee costs/ sales turnover *100

160
Q

How might HR react to an improving labour productivity

A

Reward employees with bonuses and increased salaries

161
Q

How might HR increase labour productivity

A

Inprove motivation( see page 92 )

Retrain staff

Offer bigger incentives

162
Q

Labour turnover % equation

A

Number of staff leaving/average number of staff employed* 100

163
Q

Benefits and disadvantages of high staff turnover

A

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
Q

Labour retention % equation

A

Number of staff at end of period-number of leavers/number of staff employed at end of period* 100

165
Q

What’s an organisational chart?

A

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
Q

What are tall organisational structures?

Tell me about them

A

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
Q

What are flag organisation structures

Tell me about them nigaaaa

A

Few levels in their hierarchy

People given more responsibility and freedom

168
Q

Why do flat organisational structures lead to overwhelmed managers

A

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
Q

What is delayering

A

Removing parts of the hierarchy

Create a flatter structure with wide spans of control

170
Q

What is delegation

A

Giving responsibility for decision making to people below you in the hierarchy

171
Q

What are centralised organisations and how 2A and 2D

A

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
Q

What are decentralised structures

A

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
Q

What things do HR check for to asses the potential supply of new workers

A

Check the level of unemployment in area

Local infrastructure, housing and transport

174
Q

Advantages and Disadvantages of internal recruitment

A

A) candidates already know business
Short and cheap process

D) can cause resentment among colleagues not selected
Leaves vacancy in another department

175
Q

A and D of external recruitment

A

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
Q

Benefits and non benefits of on the job training and off the job training

A

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
Q

What’s the process HR takes if they have too much labour

A

See if they can be redeployed in other areas of the business

Or make them redundant

178
Q

Internal factors the affect HR plans

A

Changes in production style maybe with technology

Expanding the business

179
Q

What did F.W Taylor think about employees

A

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

180
Q

What did Maslow think about employees

A

That they needed5 basic needs

Basic physical needs, safety, social needs, self esteem(achievement), meet potential

1) most important 5)least important

181
Q

What is job design?

A

The details of what is to be done and how it is to be done

182
Q

What do Hackman and Oldham think about employees

A

That the job needed to be designed so that it would focus on a person

183
Q

What 5 things does Hackman and oldhams model swear by

A 
Skill variety 
Task identity
Task significance
Autonomy(own decision making)
Feedback
184
Q

What are 4 ways a business can pay its employees (not very important)

A

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
Q

What is flexible working

2a and 2D

A

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

186
Q

Give 3 non financial ways of motivating employees

A

Job enrichment(gives more challenging work)

Empowerment(control over they’re work)

Teamwork

187
Q

How might the organisational design effect the payment method (to pay employees)

A

A tall organisational structure may be incline to used performance related pay because there are lots of levels of authorities to monitor productivity

188
Q

How might the size of the business affect the payment method chosen(way to pay employees)

A

A huge business may stick to hourly paid wages(salary schemes)
Because it’s difficult to monitor every employee

189
Q

What are some barriers that affect communication within a business, and how to over come

A

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

190
Q

Benefits to the employee and employer if they have a good relationship

A

Employer: good rep for business

Production and efficiency increase

Employee: job security

Bonuses/pay increases

191
Q

How might organisational size, structure, leadership and external factors affect employees in the decision making process

A

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

Democratic= a voice
Autocratic = go fuck urself

Recession = less likely to give employees a say cos business tryna survive

192
Q

What’s a work council

A

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

193
Q

What do trade unions do

A

Negotiate on behalf of employees in the workforce to the employer

194
Q

Give some examples of financial objectives

A

Increase sales

Reduce costs

Profit objectives

195
Q

What’s a cash flow objective

A

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

196
Q

What’s return on investment? (ROI)

A

It measures how efficient an investment is

ROI(%)= return on investment (£)/cost of investment(£)

*100

197
Q

What’s capital expenditure and capital structure

A

The money spent to buy NCA assests

Structure: the way a business raises capital to purchase assests

198
Q

Give 2 internal and external factors that influence financial objectives

A

Internal) overall objectives of the business
status of buisness (survival stage?)

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)
199
Q

If a business is price elastic?

A

They can reduce prices to increase demand

200
Q

Ways to increase profits

A

Reduce costs
Improve quality
Advertising

201
Q

3 ways of measuring profit

Gross profit (accounting)

Operating

Profit for the year (weird)

A

Gross = sales revenue- cost of sales

Operating = gross - operating expenses

Profit for year = operating profit + other profit - tax - net finance costs

202
Q

How to workout gross profit margin (%)

A

(%) = gross profit/ sales revenue * 100

THE RULE FOR @margin = @ / sales revenue * 100

203
Q

Operating profit margin? (%)

A

Operating profit/ sales revenue * 100

THE RULE FOR @margin = @ / sales revenue * 100

204
Q

Profit for the year margin? (%)

A

Profit for the year/ sales revenue * 100

205
Q

What’s the cash flow cycle

A

The gap between money going out and coming in

206
Q

What’s the ideal cash flow situation

A

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

207
Q

Give 2 things that affect the length of the cash flow cycle

A

Type of product, how long it takes to make the product

Credit payments

208
Q

What’s a cash flow forecast?

A

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

209
Q

Give some downsides to using cash flow forecasts

A

Can be based on false assumptions

Good cash flow forecasting needs a lot of market research

A false forecast can have disastrous results

210
Q

What’s a budget?

A

A forecast of future earnings and future spending

211
Q

Give 3 types of budgets

A

Income

Expenditure

Profit

212
Q

How might one set an income and expenditure budget

A

I) buisness researches and predicts sales

E) buisness researches how labour costs raw material costs taxes and inflation go up over the year

213
Q

3 a and 3 d of budgets ;)()(:£):’keif

A

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

214
Q

What’s the capacity of an organisation

A

The maximum output that it can produce without buying anymore assests

215
Q

Give 3 things that affect capacity

A

Number of employees and skill level

Technology(machinery)

Production process

216
Q

Capacity utilisation formula? %

A

= output/ capacity * 100

217
Q

Why’s 90% CU better than 100% CU???????

Ps hope ur going strong PMO🚫

A

No downtime for machines/ employees

No margin of error

218
Q

How can a business increase capacity

A

Increase number of employees/ number of shifts

Speed up production(maybe with motivation)
^^
Productivity

219
Q

How can a business temperaraly increase capacity

A

Sub contract work (work for other businesses)

220
Q

Why’s under utilisation inefficient

A

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

221
Q

How can businesses fill spare capacity?

A

Sub contracting

222
Q

How can businesses reduce capacity in short term and long term

A

S) stopping overtime work
Allocating staff to other areas within business

L) make staff redundant
Stop replacing retiring staff

223
Q

What’s a favourable and adverse variance?

A

Variance= business is performing better/worse then expected

F) increased profit

A) reduced profit

224
Q

What’s cumalitive variance?

A

All the variance added

225
Q

If 10k is spent on raw materials but the budget was 6k what’s the variance?

A

4K adverse

226
Q

Why’s it important to tackle variances ASAP

A

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

227
Q

2 internal and 2 external factors that affect variance

A

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

228
Q

What effect can small and large variances have on employees

A

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

229
Q

Give 3 decisions based on adverse variance

A

Streamlining production for efficency

Cut costs by negotiating a better deal with suppliers

Change marketing mix(p’s)

230
Q

Give 3 decisions based on favourable variance

A

Set more ambitious targets

Favourable variance could suggest more sales so increase production

231
Q

What’s break even and the formula

A

The amount of output needed to cover costs

=fixed costs/ contribution per unit

232
Q

Equation for contribution?

A

Selling price- variable costs

233
Q

Revise the break even chart page 78

A

Nigga bum poop sex

234
Q

What’s the margin of safety equation and what is it?

A

=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

235
Q

2a and 2 d of breakeven analysis

A

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
Q

Give 2 internal sources of income for a business

1a and 1d for each

A

Retained profits- no interest on money
Shareholders may not like because dividends

Rationalisation(selling assests)
No interest
Don’t have assest

237
Q

2 short term external sources of income

1a and 1 d for each

A

Overdrafts- easy and flexible
High rates of interest

Debt factoring- get money that’s owed instantly
Have to pay a fee

238
Q

Give 2 a and 2 d for bank loans

A

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
Q

Give 1 other external source of income

2 a and 2 d

A

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
Q

What’s a supply chain

A

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
Q

What are core and peripheral workers?

A

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

242
Q

What is outsourcing and why’s it good/ bad

A

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
Q

What are important factors to consider when picking suppliers

There are 6 but try for 4

A

Price

Payment terms (how to be paid and when)

Quality

Capacity(any peaks in demand?)

Reliability

Flexibility (respond easily to changes on short notice)

244
Q

Benefits of having a strategic relationship with a supplier

A

JIT(just in time production)

Innovation (companies who work closely with suppliers can share ideas)

245
Q

What’s 1 a and 1 d to limiting the number of suppliers they buy from?

A

A) cheaper

D) danagerous because if there are complications with a supplier buisness is fucked

246
Q

How might a supply chain react to an increase in demand

A

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

247
Q

Benefits of improved quality

A

Better rep

Loyal customers(repeat customers

Fewer returns

248
Q

Difference between quality control and assurance

A

Assurance (kaizan) employees improving their work all the time, responsible for mistakes and so defects are very rare.

249
Q

ROCE equation

A

Operating profit/ capital employed

*100

250
Q

Inventory turnover equation

A

Cost of sales / cost of avrage stock held

251
Q

What’s swot analysis

A

Strengths

Weaknesses

Opportunities

Threats

252
Q

Gearing ratio

A

NCL/ capital employed

*100

253
Q

Benefits and drawbacks of high gearing

A

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
Q

Good and bad for ratios

A

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
Q

What’s a core competence?

A

Unique things that a business has like specialist staff training

Or iOS for Apple

256
Q

What does competition law cover?

A

Fix prices

Can’t divide market to avoid competition

257
Q

What is the trade descriptions act

A

Ensures businesses don’t mislead customers

258
Q

How to calculate GDP

A

Total consumer spending+ business investment+ government spending + the value of exports - value of imports

259
Q

What’s demand pull inflation

A

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
Q

What’s cost push inflation

A

Inflation can be due to rising costs pushing up prices

261
Q

Who’s most affected by inflation

A

Companies with premium products because if customers have less money to spend they look at cheaper alternatives

262
Q

Why would a period of high inflation be good time for firms to expand

A

If interest rates are lower than rate of inflatation, it’s cheap for them to borrow money to invest in the business

263
Q

When you can buy more euro for the pound, is exporting goods cheaper or more expensive?

A

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
Q

What’s fiscal policy

+ what r the 2 types

A

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
Q

What is monetary policy

A

Tweaking interest rate to control inflation and exchange rates- done by Bank of England

266
Q

What does it aim to do??

A

Control inflation

Control economic growth

Manage unemployment levels

267
Q

What’s protectionism and open trade

1A and 1d for each

A

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
Q

How to work out contribution per unit

A

Selling price - variable costs

(Per unit) unless you want total contribution

269
Q

How does tech help with stock control

A

Technology can be used to know exactly the level of stock it has at any given moment

270
Q

What’s CSR

2ad and 2 disad

A

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
Q

CSR PYRIAMID WHAT THE FUCK DOES IT LOOK LIKE

A

Bottom going up

Economic responsibilities

Legal responsibility

Ethical responsibility

Philanthropic responsibility

272
Q

Porters 5 forces..

WHAT THE FUCK ARE THEY NIGGER

A

Barriers to entry

Buyer power

Supplier power

Threat of substitution

Rivalry

273
Q

ARR AND PAYBACK

If you have forgotten nigger go to page 138, or unit 7 booklet

And discounted NPV THING

A

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
Q

What is Ellington’s triple bottom line model?

A

People planet and profit

275
Q

Give some examples of protectionist policies

A

Subsides

Tariffs(more expensive to import and export)

Quotas (limits on imports and exports)

276
Q

Why do governments incourage enterprises and how do they do it

A

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
Q

Describe and ansoffs matrix

A

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
Q

What are porters three generic strategies to gain advantages in competition

A

Cost leadership. Differentiation. Focus.

279
Q

Describe Porter strategic matrix

A

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
Q

Why are large businesses often more stable than small businesses

A

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
Q

What are the four types of economies of scale. Not super important but worth looking at

A

Technical. Managerial. Purchasing. Marketing.

282
Q

What is economies of scope

A

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
Q

What is diseconomy is of scale

A

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
Q

What is retenchment

A

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
Q

Advantages and disadvantages of organic growth

A

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
Q

Revise the Grindr model

A

Ok

287
Q

Give some examples of external growth

A

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
Q

What is horizontal vertical and conglomerate external growth

A

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
Q

What are some disadvantages of external growth

A

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
Q

What are the two types of innovation

A

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
Q

What is important for effective innovation

A

Strong research and development department is important

292
Q

Benefits and drawbacks two of each of innovation

A

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
Q

One advantage and one disadvantage of Kayzan

A

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
Q

Give two ways the size of that of the market can affect the attractiveness of international markets

A

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
Q

Give to political and economic factors affecting the attractiveness of international markets

A

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
Q

Give some ethical factors that can affect the attractiveness of international markets just one

A

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
Q

What is licensing, alliances and direct investment

A

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
Q

How my HR react to a business this moved into an international market

A

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
Q

How can locating abroad reduce costs

A

Cheap labour and the cost of land and office space tends to also be cheaper overseas

300
Q

What is off shoring and reshoring

A

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
Q

Economies of scope is what?

A

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
Q

One advantage of moving relocating into the EU For a business

A

Avoid trade barriers: the EU has free trade for countries within the EU, and they place tariffs on countries outside the EU.

303
Q

Describe to me Barlett and Ghoshal is international business strategies

A

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
Q

Why might finance be difficult in a foreign country

A

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
Q

What is incremental change and disruptive change and what is Kurt Lewin’s force field analysis

A

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
Q

What is restructuring and why is it useful

A

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
Q

What’s the difference or what are the main differences between mechanistic structures and organic structures

A

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
Q

How can knowledge and information management increase flexibility

A

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
Q

What is the benefit of having zero our contracts for the employer

A

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
Q

Give a downside to the employer 40 our contract

A

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
Q

What are Kotter and Schlesinger is for reasons for resistance to change

A

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
Q

What are the six ways of overcoming resistance to change as per Kotter and Slazengers model and in order of best to worst

A

Education and communication. Participation and involvement. Facilitation and support. Negotiation and agreement. manipulation. Explicit and implicit coercion.

313
Q

What are the benefits of having a strong culture

A

Employees need less supervision. Staff are more loyal so staff turnover is low. Employee motivation increases.

314
Q

What are the four types of cultures and what affect all these cultures have on the level of resistance to change for employees

A

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
Q

What is the entrepreneurial culture

A

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
Q

How much business growth influence organisational culture

A

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
Q

What are Hofstead’s six dimensions of national culture

A

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
Q

What are Charles Handy’s model of culture

A

For cultures-power role task and person

319
Q

What is a contingency plan and crisis management

A

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
Q

How can strategic planning help and hinder a business

A

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

Business (2 decks)

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