Business Fundamentals Flashcards
What is Herzbergs two factor theory?
separate sets of mutually exclusive factors in the workplace that cause job satisfaction and dissatisfaction
What are motivators (Herzbergs two factor theory)?
if increased leads to greater satisfaction
achievement/recognition/
responsibility
motivates the worker when present
What are hygiene (Herzbergs two factor theory)?
if deficient leads to greater dissatisfaction
salary/working conditions/
interpersonal relationships
don’t hold any motivational value when present but have de-motivational value if not present
What is a contingency plan?
course of action to be followed if preferred plan provides unwanted results
What are the 8 steps in Kotters 8 step change model?
create sense of urgency
create a guiding coalition
create vision for change
communicate vision
remove obstacles
create short term wins
consolidate improvements
create the changes
What are internal forces of change, give examples?
change forced by internal events
poor performance of workforce
poor staff
change of leadership
What are external forces of change, give examples?
changed forced by external events
increase in consumer spending
changes in law
change in type of product customer wants
improvements in technology
What is innovation?
creating new product or service that adds value to the organisation
What is niche marketing?
narrowly defined potential group of potential customers
What is the marketing mix and the 4ps?
include 4ps and help organisation plan their marketing
product
price
placement
promotion
What is opportunity cost?
loss of other alternative when one alternative is chosen
What is quality control?
when company checks finished product for faults to make sure it meets the standard set for the product
What is corporate governance?
systems of rules, practices and processes that are put in place to manage and control a company
includes = who accountable/who has power/who makes decisions
What are economies of scale?
as an organisation increases it production the product cost will decrease
What is a balance sheet?
financial statement that reports a company’s assessts, liabilities and shareholder equity at septic points in time
What is net pay?
pay an employee receives after all deductions made
What is gross pay?
amount employee paid before all tax and other deductions made
What are expenditures?
spending money on products/services
What are liabilities?
what a company owes
What are creditors?
person or organisation to whom money is due
What does breakeven mean?
organisation made enough revenue to cover costs
What is business finance?
process of obtaining funds and managing finances in a business setting
