Business Studies Chap 3 Flashcards
Adapting to the challenges
Information management
-The info. must be found/recorded/stored/easily retrieved and efficiently used
-Large capital should be invested into infotech (IT) systems to update bus. operations
-Modern IT solutions enable bus. to satisfy customer needs more efficiently
-The bus may then benefit from an increase in market share and profitability
Strategic Responses
-Refers to how busi. respond to challenges from both internal/external environments. by putting proper plans in place
-Bus. must have a clear understanding of each stakeholder’s viewpoints and requirements
-Bus. must develop strategic plans to remain sustainable in a competitive market.
Organisational design and flexibilty
-Describes how a bus. is structured and how it communicates its culture.
-It involves the process of integrating the people/info/tech/ within an org. to improve efficiency
-Bus. need to be flexible in their organizational design so that they can adapt easily to challenges of business environments
-The management structure of a bus. should reflect the environmental conditions of the bus. experiences
Direct influence
-Bus. need to investigate alternative friendly production techniques and create environmental awareness
-Bus. also need to implement sustainable CSI programs in order to improve the communities in which they operate
Suggest ways in which business can have a direct influence on the environment
-They can influence their supplies signing long-term contracts for their raw materials at fixed prices
-They can influence regulators through lobbying and bargaining and can influence their owners using info contained in annual reports
Projects that can be undertaken by business
-Bus. must allow employees to get involved in social development programs
-Bus. must protect the envir. and participate in community upliftment programs.
-Engage in environmentally friendly campaigns such as recycling or re-using scarce resources
-Engage in economic development and provide edu. on HIV/AIDS awareness programs
Benefits of social responsibility
-CSI helps to attract investors because of increased profits
-Promotes customer loyalty resulting in more sales
-Positive image as the bus. looks after employees/responsibly conducts itself
-The business enjoys the goodwill of communities
Give reasons why businesses lobby
-Lobbying advances what the business must deliver on and bulids public trust
-Helps to find solutions to emerging generic challenges
Advances a cause and bulids public trust
-Bus. or people lobby or change laws like chlid labor laws, clean air, water laws and manicipal regulations
Hedging agaisnt inflation
-Is a method that bus. use to try and reduce risk when they are unsure about possible price increases
-Bus. use hedging to protect their financial investments by spreading the risk
-They can hedge against inflation by investing their surplus assets or money in investments with intrinsic value
-Bus. use hedging by buying bonds, shares, property, or precious metals like gold to protect capital from the effects of inflation
Bargaining sessions between management and unions
-The purpose of baargaing sessions is to find a win-win situation for all parties
-The outcome of a successful bargaing session can protect the business from the negative impact of strikes and loss in productivity
-Bus. need to be fair/transparent to establish trust and good communication with union
-Bus. make sure that their representatives are trained to negotiate on their behalf
Influencing supervisory body/regulators
-Bus. take an active role in professional bodies
-Bus. managers are involved in debates and discussions that shape public policies
-Bus. influence and negotiate with these regulators to protect their sustainability
-It’s in the best interest of businesses to adhere to the guidelines and restrictions of these bodies to stay in the bus.
What is Networking
-Refers to a coordinated activity where people who have similar objectives meet and exchange info. and ideas
-Assists in acquiring a new bus. leads
-Benefits in the bus. by helping to identify best practice
-Can help the business identify new bus. trends
What is the meaning of power relationship
-A bus. can form relationships with its environment and markets
-Power relations exist in all relationships in society
-The power that the business has on the envir. determines the status it holds within its industry
-Can be described as a measure of a bus. ability to control its envir. and the behaviour of other bus.
Persuasion of large investors
-Bus. invite poerful influential people to sit on their board of directors and gain valuable advice from these people
-Having such a powerful person as part of the business may also have a positive influence on the reputation and image of the bus.
