Business Flashcards
What are the customer needs
Price
Quality
Convenience
Choice
Service
What is limited Liability
When a business essentially can’t pay its debts the owners(shareholders) of a business are not liable for its debts
What is Liability
The legal responsibility that a business owner has to pay the debts of its business
what is an Organisational structure
the way employees and job roles are organised in a business
why have an organisational structure
makes it easier to see which part of the business does what
and who has which roles
Makes communication easier
employees can easily know their roles and responsibillities.
What is delegation
A task given to a subordinate from a superior
Pros of Hierarchical structures
Lots of opportunity for promotion
people know what they have to do due to organisation
info from top can be easily passed to bottom
supervisor can get to know subordinates well due to small span of control
Disadvantages of hierarchical structures
descisions take a long time
Info from the bottom cant always reach the top
Lots of layers and chains- may mean business is inflexible
lots of manager + supervisors- expensive
Disadvantages of hierarchical structures
decisions take a long time
Info from the bottom cant always reach the top
Lots of layers and chains- may mean business is inflexible
lots of manager + supervisors- expensive
what is flat structure
an organisational structure with only few layers of management
advantages of flat structure
info can be easily spread
cheaper due to less supervisors and managers
info from bottom can easily reach top
lots of delegation
Disadvantages of a flat structure
Decisions can take a long time to be processed
More stressful
can create power struggles due to managers being absent
little or no promotions-reduced motivation
Forms of communication
Email
Telephone
Fax
Texting
Written document
What can poor communication lead to
loss in efficiency.
What is a centralised structure
A business were all decisions are made by senior managers
What are the advantages of a centralised structure
Senior managers are experienced meaning they have the knowledge to consider when making decisions
The policies are uniform throughout the business
Employees know who to report to
Easy to get promotions
What are the disadvantages of a centralised structure
The decision making is slow so in turn the business cant quickly react to change
If senior managers lack experience they may make poor decisions
What is a decentralised structure
A decentralised structure is when ability to make changes to a shop is granted to the shop instead of head office
What are the advantages of a decentralised structure
Employees can use specialist knowledge-may improve business
the changes are made quickly
there is no need for a central office so in turn lower costs
What are the disadvantages of a decentralised structure
Inconsistencies in the business
Decisions do not affect whole business
What are some reasons for recruitment
If a business grows they need to recruit more people
there is a high staff turnover
When an employee is promoted
To cover maternity leaves or long term sickness
What is internal recruitment
When a business recruits from inside the company
What is external recruitment
When a business recruits from outside the company
What are the advantages of internal recruitment
it is cheaper
The post will fill up quickly
The candidates already know the firm well
The managers already know the candidate
What are the disadvantages of internal recruitment
Fewer new ideas and perspectives in business
You need people to fil in the candidates that have already been promoted
What are the advantages of external recruitment
The advertisements reach more people which may have skills that benefit business
Useful if firms need to recruit a lot of people at once
What are the disadvantages of external recruitment
candidates less familiar with how business works
Advertisements are expensive
What are some laws related to recruitment discrimination
Sex discrimination act 1975
race relations act 1975
disability discrimination act 1995
Age discrimination act 2006
What is Formal training
An official training programme
What is a mentor
someone in the workplace who helps you and gives you advice either officially or unofficially
What is retention
a calculation of how many employees stay loyal rather than leave
What is Self-learning
when you teach yourself
What is Target setting
when you are set goals by your manager
What is informal training
The unexpected/unplanned demonstrations or pieces of advice by colleagues
What are performance reviews
Discussion sessions between you and your boss about your performance ang how you’ve met your targets
What is ongoing training
training that’s on a regular basis
What is remuneration
Money given to employees for their work
What are the advantages of remuneration
pay can be argued as the biggest motivator
can be based on the skills and experience of the worker
What are the disadvantages of remuneration
pay may not be enough to motivate as its expected
What is a Bonus
an amount of money that is given out when a certain performance target is met
What are the advantages of a Bonus
gets employees to do less favourable parts of jobs
an unpromised bonus is a good motivator
What are the disadvantages of a bonus
bonus driven business-may lead employees to be less ethical
firms may end up giving employees bonuses when they do ordinary tasks
What is a commission
when an employee gets a reward for every sale they make
What are the advantages of a commission
incentivises higher sales
pay roll of business related to amount of sales made
What are the disadvantages of a commission
Emphasis on sales rather than quality
employees may cut corners to make sales
What is promotion
When staff are given a higher position
What are the advantages of promotion
gives loyal staff power in business
motivation for staff
lead to staff improving their skills
What are the disadvantages of promotion
staff applies for position- doesn’t get it -may leave
may cause friction among the staff as they believe the employee didn’t deserve promotion
What is Globalisation
Where businesses operate internationally and gain a lot of influence or power
What are some benefits of globalisation
new market opportunities
Access to technology and rescources
What are the drawbacks of globalisation
Threat from foreign countries
challenge of adapting product to foreign markets
What are some barriers to international trade
Tariffs
Non-tariff barriers- imposing quality or safety standards
Trade blocs- promoting trade between a small group of countries
Subsidies- money given to help domestic producers
Quotas- physical limits on exports
What are some reasons for trade barriers
protecting jobs in domestic industries
protecting emerging industries
preventing the dumping of cheap and undesirable goods into the market
raising revenue from tariffs
What are some examples of Trade blocs
ASEAN- the association of southeast Asian nations
NAFTA- The North American free trade organisation
What are the benefits of advertising
can have big impact if used at right time with right consumers
What are the disadvantages of advertising
can be expensive and difficult to work with.
What are the benefits of a sponsorship
can provide business with good exposure and associate it with a good cause
What are the disadvantages of a sponsorship
communicates very little about the product
What are the advantages of public relations
can encourage customers to become loyal to the brand
What are the disadvantages of public relations
can take long time to form
can be destroyed quickly due to bad publicity
What is the purpose of Market research
Identify gaps in the market
identify and understand customer needs
understand how well the business is doing
identify and understand customers
understand trends in the market such as market growth
What are some examples of Primary research
Observations
Surveys
Focus groups
Experiments
Questionnaires
Social media
What are some examples of Secondary research
Internet sites
Local newspapers
Government reports
Market reports
Telephone directories
Sales data
What are the benefits of Market segmentation
Meet specific customer needs
differentiate its products
focus on a specific group of customers
develop a unique brand image
What are the benefits of Market mapping
helps identify potential gaps in the market
helps businesses to identify their closest rivals
Supports market segmentation
Helps businesses to make decisions about marketing and positioning its brand
What are the limitations of Market maps
based on opinions and perceptions that likely to be untrue
compares businesses with only two variables, which is simplistic
What is a Business plan
A plan for the development of a business, giving forecasts of items such as sales, costs and cash flow
What are the elements of a business plan
Business idea
Aims and Objectives
Market research
Financial forecasts
sources of finance
Location
Marketing mix
Production
What are the principles of consumer law
products sold to customers should be of a good standard of quality
Businesses should disclose full information about products and services
Consumers have he right to reject or return goods
Services should be provided with reasonable care
Goods should be delivered and installed safely
Terms of contracts should be fair
What are the principles of employment law
Recruitment procedures should be fair and prevent discrimination.
Health and safety requirements in the workplace should be met
All employees’ pay should be fair and meet the minimum wage
Groups of people such as people with disabilities should not be discriminated against
Redundancy procedures should be fair
Disciplinary issues and grievances should be dealt with fairly.
