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Business Studies > Business Management > Flashcards

Business Management Flashcards

1
Q

What is management?

A

Coordinating a business’ resources (human, financial, physical and informational) in order to achieve specific goals

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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.

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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
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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)
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5
Q

What are the roles of management?

A
  • Interpersonal
  • Informational
  • Decision making
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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
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7
Q

What are interpersonal skills?

A

Working and communicating with others to understand their needs.

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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.

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9
Q

What is strategic thinking?

A

Thinking about the business’ future goals and objectives as well as its direction.

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10
Q

What is strategic management?

A

Seeing the business as whole and taking a long-term view

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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.

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12
Q

What is problem solving?

A

Finding and implementing a course of action to solve an unworkable situation.

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13
Q

What is decision making?

A

Identifying options available and then choosing a specific course of action to solve the specific problem.

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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

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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.
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16
Q

What are the business goals?

A

Profit, market share, environment, social, share price and growth

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17
Q

What are goals?

A

Desired outcome that an individual or business intends to achieve within a certain time frame.

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18
Q

What is the importance of goals?

A
  1. Targets
  2. Measuring sticks
  3. Motivation
  4. Commitment
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19
Q

What are SMART goals?

A
  1. Specific
  2. Measurable
  3. Achievable
  4. Realistic
  5. Time bound
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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’)

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21
Q

What can social goals include?

A

Community service
Social justice
Provision of family members

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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.

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23
Q

What are the advantages of staff involvement?

A
  • Employee motivation
  • Solutions to organisational problems
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24
Q

Staff involvement is only successful when recognising the importance of…..

A
  • Innovation
  • Motivation
  • Mentoring
  • Training
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25
Q

Staff involvement - innovation

A

Encouraging innovative business culture by encouraging employees who come up with ideas.

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26
Q

Staff involvement - motivation

A
  • Directing, energising and sustaining a persons behaviour
  • Encouraging employees and using positive reinforcement
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27
Q

Staff involvement - mentoring

A
  • Offering tutoring, coaching and modelling acceptable behaviour
  • Strengthen dedication and commitment to the business
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28
Q

Staff involvement - training

A
  • Teaching staff how to do their job more efficiently and effectively by boosting knowledge and skills
  • Improve productivity
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29
Q

What are the three management approaches?

A
  • Classical
  • Behavioural
  • Contingency
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30
Q

What are the advantages and disadvantages of the classical approach?

A

Adv:
- Shorter time to make decisions
- Improve efficiency
- Productivity
- Clear chain of command

Dis:
- Specialisation and repetitiveness = boredom
- Discourage creativity and innovation
- Inflexible

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31
Q

What is effective planning?

A
  • Provide vision and goals for a business
  • Strategies to achieve the goals
  • Anticipation of future changes
  • Include strategic, tactical and operational
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32
Q

What does the organisational process include?

A
  • Organising the financial, human and material resources to achieve the goals
  • Determining work activities
  • Classifying and grouping activities
  • Assigning work and delegating
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33
Q

What is the controlling process?

A
  • Establishing standards that align with the firms goals
  • Measure performance
  • Take corrective action
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34
Q

What is the hierarchal organisational structure?

A
  • TOP: CEO, strategic goals, vision statement
  • MIDDLE: Store manager, tactical, department objectives
  • BOTTOM: Team leader, operational, sectional planning
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35
Q

What are the key characteristics of a hierarchy?

A
  • Specialisation of labour
  • Chain of command
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36
Q

What is an autocratic leadership style?

A
  • Tends to make all the decisions, dictate work methods, frequently check employee performance
  • Usually controlling
  • Expects compliance
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37
Q

What are the advantages and disadvantages of an autocratic leadership style?

A

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

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38
Q

What is the behavioural approach?

A

Stresses that the people should be the focus of how the business is organised

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39
Q

What are the advantages and disadvantages of the behavioural approach?

A

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

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40
Q

What is management as leading?

A
  • Empowering people
  • Influencing and motivating people to achieve business objectives
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41
Q

What are the characteristics of a successful leader?

A
  • Delegates responsibilities
  • Open mind
  • Communicates clear vision
  • Sets an example
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42
Q

What is management as motivation?

A
  • Efficient managers need to establish work practices that motivate their employees because they will perform at a higher level
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43
Q

What is management as communication?

A
  • Open communication is used to motivate employees by sharing the managers thoughts and plans for the business
  • Used to influence others.
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44
Q

What is teamwork?

A
  • When people interact regularly to work towards a common goal
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45
Q

What are flatter organisational structures?

A
  • Reducing the number of levels in management to give greater responsibility to individuals.
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46
Q

What is the participative and demographic leadership style?

A
  • Considering employee suggestions when make decisions
  • Effective in an environment when a business is undergoing rapid change
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47
Q

What are the advantages and disadvantages of participative and demographic leadership style?

A

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

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48
Q

What is the contingency approach to management?

A

Stresses need for flexibility and adapting management practices to suit changing circumstances
- Need to be adaptable and flexible in their techniques to solve problems

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49
Q

What are the advantages and disadvantages of the contingency approach?

A

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

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50
Q

What does it mean to coordinate the key business functions and resources?

A
  • Functions are interdependent
  • Work best when they work together
  • Finance, HR, operations, marketing
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51
Q

What is operation management?

A
  • Activities managers engage in to produce a good or service
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52
Q

What is operations?

A

Business process’ which involve production

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52
Q

What is the impact of operations on the business?

A
  • quality
  • Cost of production
  • Determine whether sufficient products are able to satisfy consumer demand
53
Q

Goods and services of management

A
  • The characteristics of operations management differs depending whether the business’ produces goods or services
54
Q

What is the production process for goods?

A
  • Inputs
  • Transformation process
  • Outputs
55
Q

What is the production process for services?

A
  • Inputs
  • Operations
  • Outputs
56
Q

What are inputs?

A
  • Resources used in the transformation process
57
Q

What are transformed resources?

A

Inputs changed or converted in the operations process
- Information
- Materials
- Customers

58
Q

What are transforming resources?

A

Inputs used to carry out the transformation process
- HR
- Facilities

59
Q

What is the transformation process?

A

Transformation of inputs (resources) into outputs (g&s)
- Also includes conversion of resources into services

60
Q

What are outputs?

A
  • End result
  • Must always be responsive to consumer demand
  • Issues must be balanced against the resources and strategic plan of the business.
61
Q

What is quality management?

A

Strategy business uses to make sure its products meet consumer expectations

62
Q

What are the three components of quality management?

A

Quality control
Quality assurance
Total quality management

63
Q

What are the benefits of quality management?

A
  • Reduced waste and defects
  • Reduced variance in the final output
  • Strengthened competitive position
  • Increase productivity and profits
64
Q

What is quality control?

A
  • 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
Q

What is quality assurance?

A
  • Achieving set standards of production
  • Assures customers that set standards are achieved
  • Gives assurance that a business can provide safe and reliable products
66
Q

What is total quality management?

A

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
Q

What is continuous improvement?

A
  • Constantly evaluating the way things are done with higher standards to improve
  • Striving for perfection
68
Q

What are quality circles

A
  • Groups of people who meet to solve problems relating to quality
69
Q

What is marketing?

A

System of interacting activities to determine the price, product, place and promotion

70
Q

What is the mass marketing approach?

A

Aimed at everyone (target market)
- One product with little to no variation
- One price
- One distribution system
- Usually essential items

71
Q

What is market segmentation?

A
  • 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
Q

Why is the market segmentation approach better?

A
  • Better understand consumer buying behaviour
  • Influence consumer choice through marketing strategies
73
Q

What is the niche market?

A

Narrowly selected target market

74
Q

What are marketing strategies?

A

Actions taken to achieve business marketing goals

75
Q

What is the 4p’s of marketing

A

Price, product, place and promotion

76
Q

Why do consumers buy products?

A
  • Satisfy their needs
  • feelings of security, prestige, satisfaction or influence
77
Q

What is the role of product packaging?

A

Impression of the product
- Helps preserve, inform and promote the product

78
Q

What is the role of product branding?

A
  • Associate a product with a brand or logo
  • creates a reputation for the business
79
Q

What is cost-based pricing?

A

Adding up the total cost of production and then marking it up for profit

80
Q

What is market based pricing?

A

Setting prices according to supply and demand, whatever the market is willing to pay

81
Q

What is competition based pricing?

A

Choosing a price that is above, below or equal to that of its competitors

82
Q

What are the four forms of promotion?

A
  • Personal selling and relationship marketing
  • Sales promotion
  • Publicity and public relations
  • Advertising
  • Using digital promotion strategies
83
Q

What are the distribution channels?

A

Retailer to customer
Producer to retailer to costumer
Producer to wholesaler to retailer to consumer

84
Q

What is accounting?

A

Recording financial transaction so a summary of what happened to the businesses money can be traced.

85
Q

What is finance?

A

How a business funds its activities as well as the costs risks and benefits of different types of borrowing.

86
Q

What are the three accounting and report statements?

A
  • Cash flow statements
  • Income statement
  • Balance sheet
87
Q

What is a cash flow statement?

A
  • Cash inflows and outflows through a set period of time
88
Q

What is liquidity?

A
  • 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
Q

Why are cash flow statements important?

A

Helps the business predict future cash flows and make provisions for payments.

90
Q

What is an income statement?

A
  • Statement of financial performance
  • See how much money has come into the business as revenue, gone out as expenditure and made as profit
91
Q

How do you find the gross profit?

A

Sales - COGS

92
Q

How do you find COGS?

A

Opening stock + purchases - closing stock

93
Q

What are the two types of expenses?

A

Operating expenses - Occur in the normal course of trading
Non-operating expenses - unexpected expenses

94
Q

Why is the income statement important?

A

It shows the business how much they are earning and spending

95
Q

What is a balance sheet?

A

Shows the business’ assets and liabilities
Keep watch on their debt and equity levels
Keep track of their financial position and stability

96
Q

What are assets?

A

Things the business owns

97
Q

What are liabilities?

A

Things the business owes. Assets must equal liabilities

98
Q

What are current assets?

A

Items expect to be used in the next 12 months
- Cash
- Accounts receivable
- Prepaid expenses
- Stock

99
Q

What are non-current assets?

A

Assets that have an expected life of 3-5 years or longer
- Land and buildings
- Fixtures and fittings

100
Q

What are current liabilities?

A

Debt expected to be paid in the short term
- Accounts payable
- Bank overdraft
- Credit cards
- Accrued expenses

101
Q

What are non-current liabilities?

A

Long-term debt
- Mortgage

102
Q

What is owners equity?

A

Funds contributed by the owner to establish and build the business
- Owners capital
- Retained profits

103
Q

What is the human resource cycle?

A
  1. Acquisition
  2. Development
  3. Maintenance
  4. Separation
104
Q

What is recruitment?

A
  • 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
Q

What is included in a job analysis?

A
  • Job description
  • Job specification
106
Q

What is internal recruitment?

A

A business decides to point someone already within the business to a vacancy rather than looking outside the business.

107
Q

Advantages and disadvantages of internal recruitment

A

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
Q

What is external recruitment?

A

Finding suitable applicants from outside the business because staff planning has identified the need for a new business.

109
Q

Advantages and disadvantages of external recruitment

A

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
Q

What does the business use to select the best person for the job?

A

Use of resumes
Interviews
Background checks
Testing

111
Q

What is training?

A

Teaching staff to perform their job more efficiently and effectively, boosting their knowledge and skills

112
Q

What is developing?

A

Preparing employees to take on responsibilities by acquiring better knowledge and skills.

113
Q

What are the benefits for the employee in training?

A
  • Opportunity for promotion and self-improvement
  • Improved job satisfaction
  • Improve future employability
114
Q

What are the benefits for the employer in training?

A
  • Higher productivity through a better job performance
  • Reduced cost
115
Q

What are types of training methods?

A
  • off the job training
  • On the job training
  • Online training
116
Q

What programs are aimed at developing effective managers?

A
  • Job rotation
  • Mentoring
  • Formal business training
117
Q

What is organisational change?

A

Adopting a business’ new idea or behaviour in response to internal or external influences

118
Q

What is transformational change?

A

A complete restructure through the entire organisation

119
Q

What is incremental change?

A

Minor Changes involving only a few employees.

120
Q

How do business’ identify the need for change?

A

A successful business should be able to collect data measuring sales, customer satisfaction quickly and efficiently
- Information becomes raw material for decision making

121
Q

How do business’ manage change effectively?

A
  • Change needs to be productive
  • Revitalising and strengthening the business
122
Q

What is a vision statement?

A
  • States the business’ goals the future and its purpose
123
Q

What are two strategies to overcome the resistance to change

A
  • Positive leadership
  • Creating a positive culture of change (teams)
123
Q

Why would change be resisted?

A
  • Financial costs
  • Purchasing new equipment
  • Retraining
  • Reorgansing
  • Redundancy payments
  • Interta (unenthusiastic response to change)
124
Q

What are driving forces?

A

Initiate, encourage and support change

125
Q

What are restraining forces

A

Work against change, creating resistance

126
Q

What are management consultants?

A

Help a business improve their performance by investigating existing business problems and developing plans for improvement

127
Q

What do they do?

A
  • 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
Q

What are the ethical issues within a business?

A
  • 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
Q

How can ethics be managed?

A

Corporate code of conduct

Business Studies (3 decks)

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