Business Management Flashcards
1
Q
What is management?
A
Coordinating a business’ resources (human, financial, physical and informational) in order to achieve specific goals
2
Q
What is contemporary management?
A
Working with and through other people to achieve business goals in a changing environment. Especially the efficient and effective use of limited resources.
3
Q
What does management require?
A
- Working with and through others
- Achieving the goals of the business
- Getting the most from limited resources
- Coping with change
4
Q
What are the features of effective management?
A
- Planning (setting objectives)
- Organising (arranging resources)
- Leading (influencing people to work)
- Controlling (evaluating and modifying tasks)
5
Q
What are the roles of management?
A
- Interpersonal
- Informational
- Decision making
6
Q
What are the skills of management?
A
- interpersonal
- Communication
- Strategic thinking
- vision
- Problem solving
- Decision making
- Flexibility
- Adaptability to change
- Reconciling the conflicting interests of stakeholders
7
Q
What are interpersonal skills?
A
Working and communicating with others to understand their needs.
8
Q
What are communication skills?
A
Effectively communicating business goals and strategies to help achieve them is crucial to the success of a business.
9
Q
What is strategic thinking?
A
Thinking about the business’ future goals and objectives as well as its direction.
10
Q
What is strategic management?
A
Seeing the business as whole and taking a long-term view
11
Q
What is vision?
A
Seeing where the business is headed and what it is trying to achieve and then sharing it with others to inspire them.
12
Q
What is problem solving?
A
Finding and implementing a course of action to solve an unworkable situation.
13
Q
What is decision making?
A
Identifying options available and then choosing a specific course of action to solve the specific problem.
14
Q
What does it mean to be flexible and adapt to change?
A
Anticipating and adjusting to changing circumstances. Not being passive and unprepared
15
Q
What does it mean to reconcile the conflicting interests of stakeholders?
A
- Society expects business’ to satisfy as many stakeholders as possible
- Requires competent, informed, ethical and socially responsible managers.
16
Q
What are the business goals?
A
Profit, market share, environment, social, share price and growth
17
Q
What are goals?
A
Desired outcome that an individual or business intends to achieve within a certain time frame.
18
Q
What is the importance of goals?
A
- Targets
- Measuring sticks
- Motivation
- Commitment
19
Q
What are SMART goals?
A
- Specific
- Measurable
- Achievable
- Realistic
- Time bound
20
Q
How can a business maximise growth?
A
Internal growth (employing more people, increasing sales, innovation etc)
External growth (Merging or acquiring other business’)
21
Q
What can social goals include?
A
Community service
Social justice
Provision of family members
22
Q
What does it mean when there is a conflicting nature of goals?
A
There may be a conflict of business goals. For example, to uphold its social justice goals it might need to cease operations in a country that violates human rights which would decrease profits.
23
Q
What are the advantages of staff involvement?
A
- Employee motivation
- Solutions to organisational problems
24
Q
Staff involvement is only successful when recognising the importance of…..
A
- Innovation
- Motivation
- Mentoring
- Training
25
Staff involvement - innovation
Encouraging innovative business culture by encouraging employees who come up with ideas.
26
Staff involvement - motivation
- Directing, energising and sustaining a persons behaviour
- Encouraging employees and using positive reinforcement
27
Staff involvement - mentoring
- Offering tutoring, coaching and modelling acceptable behaviour
- Strengthen dedication and commitment to the business
28
Staff involvement - training
- Teaching staff how to do their job more efficiently and effectively by boosting knowledge and skills
- Improve productivity
29
What are the three management approaches?
- Classical
- Behavioural
- Contingency
30
What are the advantages and disadvantages of the classical approach?
Adv:
- Shorter time to make decisions
- Improve efficiency
- Productivity
- Clear chain of command
Dis:
- Specialisation and repetitiveness = boredom
- Discourage creativity and innovation
- Inflexible
31
What is effective planning?
- Provide vision and goals for a business
- Strategies to achieve the goals
- Anticipation of future changes
- Include strategic, tactical and operational
32
What does the organisational process include?
- Organising the financial, human and material resources to achieve the goals
- Determining work activities
- Classifying and grouping activities
- Assigning work and delegating
33
What is the controlling process?
- Establishing standards that align with the firms goals
- Measure performance
- Take corrective action
34
What is the hierarchal organisational structure?
- TOP: CEO, strategic goals, vision statement
- MIDDLE: Store manager, tactical, department objectives
- BOTTOM: Team leader, operational, sectional planning
35
What are the key characteristics of a hierarchy?
- Specialisation of labour
- Chain of command
36
What is an autocratic leadership style?
- Tends to make all the decisions, dictate work methods, frequently check employee performance
- Usually controlling
- Expects compliance
37
What are the advantages and disadvantages of an autocratic leadership style?
Adv:
- Directions and procedures are clear
- Employees role is clear
- Stable and consistent environment
- Problems dealt with efficiently
Dis:
- No employee input
- Ignores importance of motivation
- Conflict
38
What is the behavioural approach?
Stresses that the people should be the focus of how the business is organised
39
What are the advantages and disadvantages of the behavioural approach?
Adv:
- Empowerment of employees
- Increased motivation
- Improve relationships between management and staff
Dis:
- Lack of control
- Powerful people can disrupt the process
- Confusion
- Difficult to predict employee behaviour
40
What is management as leading?
- Empowering people
- Influencing and motivating people to achieve business objectives
41
What are the characteristics of a successful leader?
- Delegates responsibilities
- Open mind
- Communicates clear vision
- Sets an example
42
What is management as motivation?
- Efficient managers need to establish work practices that motivate their employees because they will perform at a higher level
43
What is management as communication?
- Open communication is used to motivate employees by sharing the managers thoughts and plans for the business
- Used to influence others.
44
What is teamwork?
- When people interact regularly to work towards a common goal
45
What are flatter organisational structures?
- Reducing the number of levels in management to give greater responsibility to individuals.
46
What is the participative and demographic leadership style?
- Considering employee suggestions when make decisions
- Effective in an environment when a business is undergoing rapid change
47
What are the advantages and disadvantages of participative and demographic leadership style?
Adv:
- Communication
- Positive employer relationships
- Motivation
- Opportunity to acquire more skills
- Encourages working in teams
- High level of trust
Dis:
- Decision-making can be time consuming
- Weak control of manager
- Internal conflict
48
What is the contingency approach to management?
Stresses need for flexibility and adapting management practices to suit changing circumstances
- Need to be adaptable and flexible in their techniques to solve problems
49
What are the advantages and disadvantages of the contingency approach?
Adv:
- Acknowledges impact of change
- Can be multiple approaches to management not just one
- Different situations require different approaches
Dis:
- Adapting to constant changes can be challenging
- Can be costly and time consuming
50
What does it mean to coordinate the key business functions and resources?
- Functions are interdependent
- Work best when they work together
- Finance, HR, operations, marketing
51
What is operation management?
- Activities managers engage in to produce a good or service
52
What is operations?
Business process' which involve production
52
What is the impact of operations on the business?
- quality
- Cost of production
- Determine whether sufficient products are able to satisfy consumer demand
53
Goods and services of management
- The characteristics of operations management differs depending whether the business' produces goods or services
54
What is the production process for goods?
- Inputs
- Transformation process
- Outputs
55
What is the production process for services?
- Inputs
- Operations
- Outputs
56
What are inputs?
- Resources used in the transformation process
57
What are transformed resources?
Inputs changed or converted in the operations process
- Information
- Materials
- Customers
58
What are transforming resources?
Inputs used to carry out the transformation process
- HR
- Facilities
59
What is the transformation process?
Transformation of inputs (resources) into outputs (g&s)
- Also includes conversion of resources into services
60
What are outputs?
- End result
- Must always be responsive to consumer demand
- Issues must be balanced against the resources and strategic plan of the business.
61
What is quality management?
Strategy business uses to make sure its products meet consumer expectations
62
What are the three components of quality management?
Quality control
Quality assurance
Total quality management
63
What are the benefits of quality management?
- Reduced waste and defects
- Reduced variance in the final output
- Strengthened competitive position
- Increase productivity and profits
64
What is quality control?
- The use of inspections at random points to check for problems and defects
- Benchmarks are set and business performance is measured is compared to criteria
- Competitiveness increases as costs with waste and faulty products are reduced
65
What is quality assurance?
- Achieving set standards of production
- Assures customers that set standards are achieved
- Gives assurance that a business can provide safe and reliable products
66
What is total quality management?
Commitment to excellence emphasising continuous improvement in all aspects of the business' operations by sharing responsibility amongst all members of the business
- Improve product quality giving it a competitive advantage.
- Customer focus
- Improve the price competitiveness of a business, product quality (competitive advantage)
67
What is continuous improvement?
- Constantly evaluating the way things are done with higher standards to improve
- Striving for perfection
68
What are quality circles
- Groups of people who meet to solve problems relating to quality
69
What is marketing?
System of interacting activities to determine the price, product, place and promotion
70
What is the mass marketing approach?
Aimed at everyone (target market)
- One product with little to no variation
- One price
- One distribution system
- Usually essential items
71
What is market segmentation?
- Dividing the market into groups to specify products to them
- Aims to increase sales and profits by better understanding the desires of the target customer
- Demographic, geographic, psychographic, behavioural
72
Why is the market segmentation approach better?
- Better understand consumer buying behaviour
- Influence consumer choice through marketing strategies
73
What is the niche market?
Narrowly selected target market
74
What are marketing strategies?
Actions taken to achieve business marketing goals
75
What is the 4p's of marketing
Price, product, place and promotion
76
Why do consumers buy products?
- Satisfy their needs
- feelings of security, prestige, satisfaction or influence
77
What is the role of product packaging?
Impression of the product
- Helps preserve, inform and promote the product
78
What is the role of product branding?
- Associate a product with a brand or logo
- creates a reputation for the business
79
What is cost-based pricing?
Adding up the total cost of production and then marking it up for profit
80
What is market based pricing?
Setting prices according to supply and demand, whatever the market is willing to pay
81
What is competition based pricing?
Choosing a price that is above, below or equal to that of its competitors
82
What are the four forms of promotion?
- Personal selling and relationship marketing
- Sales promotion
- Publicity and public relations
- Advertising
- Using digital promotion strategies
83
What are the distribution channels?
Retailer to customer
Producer to retailer to costumer
Producer to wholesaler to retailer to consumer
84
What is accounting?
Recording financial transaction so a summary of what happened to the businesses money can be traced.
85
What is finance?
How a business funds its activities as well as the costs risks and benefits of different types of borrowing.
86
What are the three accounting and report statements?
- Cash flow statements
- Income statement
- Balance sheet
87
What is a cash flow statement?
- Cash inflows and outflows through a set period of time
88
What is liquidity?
- The amount of cash a business has access to and how readily it can convert its assets into cash so debt can be paid
89
Why are cash flow statements important?
Helps the business predict future cash flows and make provisions for payments.
90
What is an income statement?
- Statement of financial performance
- See how much money has come into the business as revenue, gone out as expenditure and made as profit
91
How do you find the gross profit?
Sales - COGS
92
How do you find COGS?
Opening stock + purchases - closing stock
93
What are the two types of expenses?
Operating expenses - Occur in the normal course of trading
Non-operating expenses - unexpected expenses
94
Why is the income statement important?
It shows the business how much they are earning and spending
95
What is a balance sheet?
Shows the business' assets and liabilities
Keep watch on their debt and equity levels
Keep track of their financial position and stability
96
What are assets?
Things the business owns
97
What are liabilities?
Things the business owes. Assets must equal liabilities
98
What are current assets?
Items expect to be used in the next 12 months
- Cash
- Accounts receivable
- Prepaid expenses
- Stock
99
What are non-current assets?
Assets that have an expected life of 3-5 years or longer
- Land and buildings
- Fixtures and fittings
100
What are current liabilities?
Debt expected to be paid in the short term
- Accounts payable
- Bank overdraft
- Credit cards
- Accrued expenses
101
What are non-current liabilities?
Long-term debt
- Mortgage
102
What is owners equity?
Funds contributed by the owner to establish and build the business
- Owners capital
- Retained profits
103
What is the human resource cycle?
1. Acquisition
2. Development
3. Maintenance
4. Separation
104
What is recruitment?
- Hiring the right staff for roles in the business
- Conducting a job analysis
- Identifying the need to fill a vacancy
- Analysing the requirements of the position and selecting an appropriate internal or external source
105
What is included in a job analysis?
- Job description
- Job specification
106
What is internal recruitment?
A business decides to point someone already within the business to a vacancy rather than looking outside the business.
107
Advantages and disadvantages of internal recruitment
Adv:
- Less risk
- Familiar with employees
- Already familiar with the business culture, processes and objectives
- Reduced cost of advertising
Dis:
- Might not be anyone suitable
- Conflict and jealousy between employees
108
What is external recruitment?
Finding suitable applicants from outside the business because staff planning has identified the need for a new business.
109
Advantages and disadvantages of external recruitment
Adv:
- Wider range of applicants to choose from
- Fresh ideas and approaches to the task
- Increase staffing numbers = rapid growth
Dis:
- Choice is difficult because applicant is unknown
- Costs associated with the advertisement
- Time consuming
110
What does the business use to select the best person for the job?
Use of resumes
Interviews
Background checks
Testing
111
What is training?
Teaching staff to perform their job more efficiently and effectively, boosting their knowledge and skills
112
What is developing?
Preparing employees to take on responsibilities by acquiring better knowledge and skills.
113
What are the benefits for the employee in training?
- Opportunity for promotion and self-improvement
- Improved job satisfaction
- Improve future employability
114
What are the benefits for the employer in training?
- Higher productivity through a better job performance
- Reduced cost
115
What are types of training methods?
- off the job training
- On the job training
- Online training
116
What programs are aimed at developing effective managers?
- Job rotation
- Mentoring
- Formal business training
117
What is organisational change?
Adopting a business' new idea or behaviour in response to internal or external influences
118
What is transformational change?
A complete restructure through the entire organisation
119
What is incremental change?
Minor Changes involving only a few employees.
120
How do business' identify the need for change?
A successful business should be able to collect data measuring sales, customer satisfaction quickly and efficiently
- Information becomes raw material for decision making
121
How do business' manage change effectively?
- Change needs to be productive
- Revitalising and strengthening the business
122
What is a vision statement?
- States the business' goals the future and its purpose
123
What are two strategies to overcome the resistance to change
- Positive leadership
- Creating a positive culture of change (teams)
123
Why would change be resisted?
- Financial costs
- Purchasing new equipment
- Retraining
- Reorgansing
- Redundancy payments
- Interta (unenthusiastic response to change)
124
What are driving forces?
Initiate, encourage and support change
125
What are restraining forces
Work against change, creating resistance
126
What are management consultants?
Help a business improve their performance by investigating existing business problems and developing plans for improvement
127
What do they do?
- Objective, external viewpoint
- Access to the latest research
- Specialised knowledge and skill
- Smoothly manage the introduction of changes (create a supportive business culture, involve all stakeholders
128
What are the ethical issues within a business?
- Fairness and honesty
- Respect for people
- Conflict of interest (personal gain of a situation)
- Financial management (reflect the need of the shareholders
- Truthful communication
129
How can ethics be managed?
Corporate code of conduct
