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Business Administration > Business Administration > Flashcards

Business Administration Flashcards

1
Q

What is an Organisation

A

An instance of human cooperation with a specific purpose and the intention to be permanent

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2
Q

What is a Business

A

An Organisation, which produces goods and/or services or engages in trade with the intention of putting these on the market for sale

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3
Q

What is a non-profit organisation

A

An attempt to deliver goods and/or services for general use at the lowest possible cost

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4
Q

What is a For-profit business

A

offering goods and/or services with a cost higher that is costs to make and deliver the goods/services, making them a PROFIT

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5
Q

A business is ?

A

An organisation with 4 characteristics;
1 there are people in the organisation
2 there is cooperation in the organisation
3 there is a purpose to the organisation
4 there is continuity in the organisation

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6
Q

what is an Internal main objective

A

the continued existence of the firm

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7
Q

what is an External main objective

A

providing a (societal) need

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8
Q

transformation process

A

input > throughput > output

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9
Q

Net profit margin

A

net profit x 100%
_____________
Revenue

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10
Q

what is Net Profit

A

when a business has paid all payments it retains an curtain amount called the Net Profit

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11
Q

Revenue

A

Unit x Price
it has to do with all the units sold
on to of the profit and loss statement

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12
Q

Black box approach

A

there is no indication how input is transformed into the proper out put. all you can see is what goes in and what comes out.

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13
Q

Names 6 Characteristics of a Business Administration

A 
It's all about Business
business context is important
it is multidisciplinary
it is interdisciplinary
it is a science
it is a body of knowledge
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14
Q

Business Administration is about?

A

the concern if a organisation is organised the right way, set up and administered in the proper way. center of attention is the business and how to run it

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15
Q

multidisciplinary

A

combining many different disciplines in a business

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16
Q

Name 6 Specialisms of a Business

A 
Financial Management
Psychology
Technology
Purchasing knowledge
Marketing and sales
Operational research
Communications
Process management
Law
Sociology
Facility management
Information science
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17
Q

Business Administration is Interdisciplinary

A

It brings specialisms together, it first engages concepts and problems with its own practitioners, and only the does it consult specialists in order to see what sort of solutions they can offer

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18
Q

What is Interdisciplinary

A

The linking of different disciplines with each other

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19
Q

Why is Business administration a Science

A

it applies its own ideas and definitions. The normal science rules of the game are applied

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20
Q

why is Business administration a body of knowledge

A

it is all about real problems and practical questions that need to be resolved.

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21
Q

Definition Business Administration

A

the branch of science that concerns itself with the organisation and context of the business. B.A. comprises a comprehensive (all-inclusive), multi- and interdisciplinary approach in which attention is paid to a scientific manner to practically oriented questions within a business

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22
Q

Name 6 Management competencies

A 
Analytical insight
Advisory ability
Cooperative skills
Communication skills
Ability to lead
Stress resistance
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23
Q

Names 6 Business Administration professions

A 
Consultant 
Independent Entrepreneur
(general) Manager
Policy worker
Account manager
Lobbyist
Controller
Recruiter 
Investment analyst
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24
Q

Name the three aspects of a process

A

1 Effectiveness; the intended effect and is this achieved?
2 Efficiency; how many resources are needed?
3 Management; How is the process managed?

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25
Q

Primary activity

A

the processes at the core business

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26
Q

Secondary activities

A

the processes that support the core business

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27
Q

Supervisory activities

A

controlling the processes, also called the management processes.

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28
Q

Primary functions

A

are the primary activities divided in to sub-activities.

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29
Q

which actions are necessary to carry out a Business core activity.

A
  1. Purchasing
  2. Producing
  3. Logistics
  4. Marketing
  5. Sales
  6. Services
    ALSO THE PRIMARY FUNCTIONS OF A BUSINESS
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30
Q

the value chain

A

shows which business can add further value to a product or service.

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31
Q

the value chain phases

A
  1. Incoming logistics
  2. Operations
  3. internal outbound logistics
  4. Marketing and sales
  5. Service and customer-related value
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32
Q

Purchasing steps

A
  1. Orientation
  2. Writing specifications
  3. Selection of suppliers
  4. Trending
  5. Negotiations
  6. Contracting
  7. Order confirmation
  8. Receipt of goods or services
  9. Accounting of goods
  10. Payment of supplier’s invoice
  11. Financial accounting
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33
Q

Material management

A 
Controlling the flow of goods with internal logistics;
Making prognoses 
Drawing up production plans
Handling customer orders
Choosing suppliers
Internal logistics
Planning assembly
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34
Q

production process

A

Chain of supply points and processing stations
Flows of goods
Fabrication process
Assembly process

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35
Q

What does C.O.D.P. stand for

A

Customer Order Disconnection Point

Designates that point in the production process from which the process is directed by individual orders.

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36
Q

Before C.O.D.P.

A

Process can be systematically planned and standardized

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37
Q

After C.O.D.P.

A

Process is determined by the specific wishes of the customer and so are less able to be standardized.

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38
Q

Piece Production

A

Production piece-by-piece
Unique specifications
High costs

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39
Q

Project directed work

A

labour-intensive, each project has its own planning

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40
Q

Mass production

A

how to make as efficient and cheap as possible

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41
Q

Process production

A

Enormous volume, focused on one think, big investment, labour and operation costs are low.

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42
Q

Continuous/ flow production

A

a production process that hardly ever stands still

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43
Q

What are the 5 M’s

A 
Men(People)
Methods
Machines
Materials
Money
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44
Q

Production planning

A

Used to gain a strategic advantage by coordinating their strategic planning, right place & right time, how much and when.

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45
Q

Automated planning system MRP

A

Material Requirements Planning

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46
Q

Automated planning system ERP

A

Enterprise Resource Planning

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47
Q

Outsource suppliers pro’s and con’s

A

Pro- businesses that specialize in certain components can often product them cheaper
Con’s-
You can become dependent on another firm
Important information about its production process might leak out

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48
Q

Core competence

A

one can define a core competence as that part of the primary activities where an organisation can distinguish itself from the competition through its knowledge and skills, A business’s core business

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49
Q

Business logistics can be broken down into

A

Incoming logistics
Internal- or product logistics
Outbound logistics

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50
Q

The Logistics chain

A 
Supply (incoming logistics)  
Production
Storage
Distribution (outgoing logistics)
Transport
Information management
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51
Q

Incoming Logistics

A

The primary activities start at this point, the handling of goods and materials that arrive at the firm.

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52
Q

Technical Obsolescence rate

A

the product or component in the supply loses its characteristics, Example; paper, if you store it to long it will turn yellow

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53
Q

Economic Obsolescence

A

new products or components embodying the latest technology come onto the market, so that the older supplies are worthless

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54
Q

Spoilage rate

A

food can only be stored for a limited time

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55
Q

Storage costs

A

the facilities you need to store materials or components

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56
Q

The cost of holding supplies is determent by certain factors

A 
Technical Obsolescence
Economic Obsolescence
Spoilage rate
Storage costs
Theft risks
Risk of damaging supplies while in storage.
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57
Q

Linear programming

A

Mathematical method of solving optimization problems

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58
Q

Internal logistics

A

Deals with the of raw materials and semi-finished products within the process

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59
Q

basic production or logistical forms

A

Divergent production
Parallel production
Serial production
Convergent production

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60
Q

Divergent production

A

Several different products are made from one single raw material

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61
Q

Parallel production

A

Two production streams, which have nothing to do with each other, occur at the same time

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62
Q

Serial production

A

Only one production stream

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63
Q

Convergent production

A

Make complex products put together from many other products

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64
Q

Outbound logistics 5 steps

A

concerned with bringing the end product to the end user.

  1. Supply management
  2. Preparation of orders
  3. Customer-specific order fulfillment
  4. Preparation dispatch
  5. Dispatch of the order
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65
Q

Simulation

A

useful when directing very complex processes, it is an important instrument in BA for making complex processes controllable and analyzing their effectiveness

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66
Q

Goals of simualtion

A
  1. Optimizing the flow of materials
  2. Eradicating bottlenecks
  3. Accelerating processing times
  4. Analyzing supplies and buffers
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67
Q

What is just in time production

A

the idea is that supplies and production should be so coordinated that there are hardly ever inventories present in the business

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68
Q

Speculative inventories

A

to avoid paying a higher price when the raw material price rises

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69
Q

Buffer inventories

A

When delivery of raw materials is late, you can still produce.

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70
Q

Supply chain management

A

tries to deliver an optimal coordination of production with supplies for not just one business bu several businesses in a network.

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71
Q

What is marketing

A

it has to do with the activities for creating, communicating, delivering and exchanging products and services, which are of value to customers

72
Q

Marketing according to Kotler

A

A human activity oriented towards satisfying needs and desires by means of an exchange process

73
Q

Characteristics of marketing according to Kotler

A
  1. Putting the customer first

2. Date capture and analysis

74
Q

Name the Kotler 5 P’s

A
  1. Product
  2. Promotion
  3. Price
  4. Personnel
  5. Place
75
Q

The marketing plan 6 phases

A
  1. Analysis of opportunities and threats: overview internal and external context
  2. Research and goal selection
  3. Marketing strategy definition
  4. Marketing programme planning
  5. Marketing programme organisation and implementation
  6. Measurement and evaluation of results and possible goal re-definition
76
Q

Why Market research

A

Important for detecting opportunities in new or existing markets. Done by gathering information about customers, competitors and market trends.

77
Q

Primary research

A

gather information directly from source.
example; interviews and surveys
more time consuming

78
Q

Secondary research

A

Looking at information sources like, magazines, government publications
less time consuming

79
Q

When does the Sales process take place

A

when businesses deliver their products, goods or services to another party for payment

80
Q

Steps of the Sales process

A
  1. Competition analysis
  2. Customer analysis
  3. Promotion analysis
  4. Extension to offer
  5. negotiation
    6 Contract phase
  6. Order receipt
  7. Dispatch of purchase confirmation with sale condition
  8. Delivery/Distribution
  9. Invoicing
  10. Receipt of payment
81
Q

C.R.M.

A

Customer Relation Management

82
Q

Supporting functions

A

actions that do not directly have anything to do with the primary functions.

83
Q

Supporting activities

A

the systematic integration of supporting functions> Necessary to support the primary activities

84
Q

Support/secondary activities

A

oriented towards delivering people and resource to primary activities

85
Q

Resource management

A

managing supporting activities, what does the business have to do in order to optimize the commitment of resources

86
Q

All supporting functions (PARCFILF)

A
  1. Personnel = HRM
  2. Administration = Management information
  3. Research and development
  4. Communication; intern/extern
  5. Finance
  6. ICT
  7. Legal
  8. Facilities = Facility management
87
Q

Communication policy

A
  1. Target group analysis
  2. Communication goals formulation
  3. Communication strategy
  4. Communication types
  5. Communication style
  6. Evaluation
88
Q

Research and Development

A

a supporting staff department that occupies itself with the development and design of new products and process innovations

89
Q

Cross-pollination

A

when a business A develops something business B can use it and visa-versa

90
Q

quantity of R&D can be measured by:

A

The number of patent applications
R&D budget
The number of scientific publications
In western countries 3.5% of a business’s revenue is R&D

91
Q

Fundemental research

A

Scientific research aimed to improve scientific theories for improved understanding or prediction of natural or other phenomena

92
Q

Applied research

A

Uses scientific theories to develop technology or techniques to intervene and alter natural or other phenomena

93
Q

3Different phases of the development process

A
  1. Preliminary research
  2. Analysis
  3. Design draft
  4. Detailed design
  5. Realisation
  6. After-sales
94
Q

Preliminary research:

A

a. Project team is put together
b. Exploratory research needs to be done
c. Responsibility structure has to be determined - who is
responsible for what
d. Objectives have to be fixed
e. Plan has to be made

95
Q

. Design draft:

A

a. Concept is developed

b. Start looking for financiers and investors

96
Q

Detailed design:

A

a. Market preparation
b. Optimisation
c. Production process
d. Product is evaluated - tests are carried out
e. Sketches are made
f. Production plan is made

97
Q

Realisation:

A

a. Market introduction of the product
b. Production starts
c. Think about packaging, distribution plan, sale price etc.

98
Q

After-sales:

A

a. Customer satisfaction
b. Product evaluation
c. Business case evaluation
d. Improvement plan

99
Q

time to market

A

the speed bringing the findings onto the market, has to be quickly and effectively

100
Q

Revisionism

A

a trend of the mid-20th that was a predecessor to the HRM, they came up with the idea that people are the most important asset of a business

101
Q

HRM instruments

A 
Intake
Internal mobility
Outplacement
Compensation package
Function structuring
Personnel planning
Personnel administration
Communication and information
102
Q

Accounting

A

Providing an insight into the process of payment and getting paid for people within and outside the organisation, it is important for business to carry out administration

103
Q

Sorts of Accounting

A

Financial Accounting
Stock Accounting
Management information - control function

104
Q

Capital

A

Goods for the continuance, expansion or improvement of production, which demand long-term investment

105
Q

Mortgage

A

Long-term financing for durable capital goods, such as real estate

106
Q

Current account

A

Short-term financing for non-durable capital goods, such as supplies or accounts payable

107
Q

Medium-term loans

A

Financing for the medium-term(<5years) for production resources, such as machines

108
Q

Financial lease

A

Renting to buy

109
Q

Operational lease

A

Renting

110
Q

Three questions a business’s ICT has to be able to answer

A
  1. What sort of information needs does the business have(primary)
  2. What information does management want to have
  3. How can this information be conveyed
111
Q

Legal affairs

A
  1. Management and Ownership
  2. Financing possibilities
  3. Continuity
  4. Liability
  5. Fiscal consequences
  6. Disclosure requirements
  7. Danger of takeover.
112
Q

Two Facility Management levels in a business

A
  1. Strategic Tactical; Owners must be informed of the possible consequences of their decisions to offer space and services
  2. Operational; Creating an optimal, safe and cost-effective environment for the business or organisation.
113
Q

Tasks of a Facility Manager

A 
Operational
Safety
Hygiene 
Security
Maintenance
Inspections
114
Q

What is the organisational context

A

everything lying outside the organisation that influences it

115
Q

Name the three paths a business can choose

A
  1. The product or the service that the business delivers
  2. The market in which the business is active
  3. The technologies or processes the business uses
116
Q

traditional context

A

Organisational context defined as the actors with whom the organisation has relations

117
Q

Macro context

A

Organisation context in terms of political, social and technological factors that have influence on the organisation

118
Q

The STEP analyisis Method

A

Social
Technological
Economical
Political

119
Q

Social Analysis

A

Demographic, Income distribution, Social mobility,Change in living habits, Work Attitude

120
Q

Technological Analysis

A

Government expenditure or research, Attitude to technology of government and industry

121
Q

Economical Analysis

A

Economic conditions, Life-phase of the industry, GDP trend, Interest rates,

122
Q

Political Analysis

A

Anti-Monopoly/Cartel, Measures and laws to protect the environment, Tax climate and Legislation, Regulation of foreign trade, Labour Law, political stability of the government and democracy

123
Q

Scenario Method

A

A business sets up a number of possible future scenarios, these future scenarios feature above all the threats from the indirect action elements in the environment. Then the business sets up scripts that contain reactions and countermeasures for the moment when the scenario becomes realtiy

124
Q

Monopoly

A

Is when one company who sells a certain product, this Organisation/business can decide the price of the product, for example; Passports

125
Q

Oligopoly

A

A few sellers, like the production of Smartphones

126
Q

Polyopoly

A

Many sellers like the clothing business

127
Q

Five forces that determine the competition within an industry

A
  1. Threat of new entrance
  2. Negotiation power of suppliers
  3. Negotiation power of buyers
  4. threat of substitutes
  5. Rivalry between competitors
128
Q

Threats of new entrance

A

the extent is deterined by the height of the obstacles to becoming active in the market > Barrier to entry

129
Q

Negotiation power of suppliers increases if:

A

A) The supplier has more than enough customers
B) The costs of changing one’s supplier are high
C) The supplier offers a successful brand
D) The supplier is thinking about getting int the activity that his customer carries out(forward integration)
E) There is an oligopoly/ monopoly on the supplier side

130
Q

Negotiation power of the buyer increases if:

A

A) There are few customers or one large customer
B) There are alternative buying points and channels to which the firm can easily switch
C) The buyer us considering backward integration (carrying out the job of the supplier)
D) The buyer is highly interested in a discount
E) The buyer can produce the product itself
F) The buyer is well informed about the market and the competitors prices

131
Q

Threats of substitution

A

perceive the threat of substitution early on, develop substitutes oneself

132
Q

Rivalry between competitors

A

Rivalry between competitors depends on many factors like;

  1. Balance > Difference in size of the competing businesses
  2. High fixed costs > To make up the fixed costs, competitors might lower their prices. To compete you then also have to lower your prices
  3. Overcapacity > There are to many competitor for the market, who has to leave the “battlefield”
  4. Barrier to exit > The costs of exiting the market; the money that is invested getting into the market and all the investments you made whilst in the market.
133
Q

Strategic groups

A

Dividing businesses into groups with equal strategic significance and corresponding organisational forms, the business gains better view of the competitors which it has to monitor and to compete with

134
Q

The attraction of the total market

A

determined by; size, growth, profit margin, intensity of competition, e.c.t. Classified as high, medium and low

135
Q

Individual competitive position

A

determined by; market share, growth of share, reputation, network, quality, e.c.t. Classified as strong, medium and weak.

136
Q

Technological changes

A

Production processes become more flexible, production jobs are disappearing, large-scale factories starting to decline, Production automation

137
Q

Socio-cultural changes

A

changes through, better education, consumer preferences, attitude to work

138
Q

Strategic management

A

compasses determining the relationship between the context and the business, businesses must determine what and how.

139
Q

Mission/ mission statement

A

what you want to achieve in relation to the context

140
Q

strategic goal

A

general goals need to be translated into more specific goals. they are mostly more detailed and more concrete than the mission

141
Q

strategic decision time horizon

A

five to ten years > long-term

142
Q

tactical decision time horizon

A

two to five years > medium-term

143
Q

operational decision time horizon

A

two months to two years > short term

144
Q

Defensive strategy

A

if you choose to satisfy the demands posed by the context as fully as possible > reorganization

145
Q

Offensive strategy

A

if you try to have the context fit the business better by influencing that context. Possibilities how to increase your control; Importation, Exportation, R&D and innovation development, Diversification, Cooperation

146
Q

Strategic divide

A

the course that the business wants to follow is actually different from the one it is following at the moment, difference between the current and the desired situation

147
Q

UPE (Unchanged Policy Estimate)

A

you find out what the situation in the future will be if the current policy is continued unchanged

148
Q

The internal analysis consists of;

A
  1. Analysis of the products or services that the business delivers.
  2. analysis of the total product range of the business
  3. analysis of the products, brands and technologies that a business uses
  4. comparison with standards and benchmarks, which mostly come from outside the firm
  5. Analysis of the value chain of which the business is a part
149
Q

Product life cycle

A 
introduction
growth
maturity
saturation
decline
sale
150
Q

Product portfolio

A

the total package of a business

151
Q

BCG Matrix

A

Boston Consulting Group;

  1. analysis the current portfolio activities
  2. Develop a growth strategy and growth direction
  3. Decide which activities must be phased out.
152
Q

Question mark

A

fast-growing market, low market share - a question mark over whether the market share can grow, and the product thus generate more renenue

153
Q

Star

A

fast-growing, high market share

154
Q

Dog

A

slow- growing market, low market share

155
Q

Cash cow

A

Slow- growing market, high market share

156
Q

best practice method

A

a business goes in search of the best conceivable method for carrying out its business activities

157
Q

Bench-marking

A

the business compares its own products, services and methods of working with those of the strongest competitor

158
Q

Key numbers

A

the business compares itself on the basis of key financial figures

159
Q

Flexibility comparison

A

reveals to what degree you can operate as flexible as the competitors

160
Q

Competitive advantage can be attained in two ways

A
  1. Multiplying value in such an efficient way that you succeed in doing so at very low costs
  2. adding something extra to a product that makes buyers regard it as more valuable than competitive products
161
Q

Porters approach on generic strategies

A

Cost-leadership
Differentiation
Focus Strategy

162
Q

Cost-leadership

A

one produces for the lowest costs in comparison to the other businesses in the industry

163
Q

Differentiation

A

the businesses seeks a unique position in the industry by making itself different from the competition

164
Q

Focus

A

a business orients itself to a particular market segment, also called a niche

165
Q

Cost-focus

A

the business orients itself on a small segment and tries to win that segment over by producing at low cost

166
Q

differentiation

A

the business tries to win over a small segment through differentiation- unique, haute couture clothing

167
Q

Johnson and Scholes’s approach to the strategic clock

A

maintain that a business can choose the point of departure for its strategy with help from a strategic clock
two dimensions are important;
1. The price
2. The perception by the customer of the added value

168
Q

Cooper’s confrontation strategy

A

Three product-related characteristics, together called by cooper the survival triangle, play a critical role for businesses which have chosen this strategy;

  1. the cost of the product
  2. the quality of the product
  3. the functionality of the product
169
Q

Survival zone

A

the area between the minimum allowed and the maximum attainable for all three characteristics of the product.
Outside of the survival zone the products will not sell.

170
Q

Chan Kim and Mauborgne’s Blue ocean strategy

A

The blue Ocean Strategy supposes that the boundaries of a market aren’t fixed, but determined by the actions of the industry players.
The Blue Ocean Strategy suggests that we create a new demand in a new market “a blue ocean”

171
Q

Red Ocean Strategy

A

the boundaries of a market are know and fixed. in order to create more market share you need to take away market share from a competitor.

172
Q

Zero-sum game

A

if the number of customers for one firm grows, the number of another firm must shrink.

173
Q

Ansof four alternative directions for strategy development

A
  1. Market penetration
  2. Product development
  3. Market development
  4. Diversification
174
Q

Market penertration

A

a business tries to grow in the same market with an established product, by lowering price or more advertising

175
Q

Product development

A

A business will try to increase its revenue by offering a new product in the existing market

176
Q

Market development

A

A business will try to enter a new market with an existing product

177
Q

Diversification

A

A business will try to enter a new market with a new product.

Business Administration (1 decks)

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