Centre assessed exam 2 Flashcards
What are the advantages for budgeting?
- Budgets help to achieve targets like keeping budgets low
- Help managers review their activities and make decisions
- Help persuade investors that the business will be successful
- Budgets help control income and expenditure. They show where the money goes
What are the disadvantages for budgeting?
- Budgets can be restrictive. Fixed budgets stop firms responding to changing market conditions.
- Budgeting is time-consuming. Managers can be too focused on the budget and forget the real issues of customers and competitors.
What is a works council?
A committee made up of employer and employee representatives.
What are the advantages of a works council?
- better flow of information between management and labor
- more say for workers in corporate decisions
- decreased labor-management conflict
- potentially higher productivity and profitability when labor’s interests are aligned with management’s
What is the equation for payback period?
(Initial investment/ annual cash inflows) x365
What is the equation for ARR?
(Average yearly profit/ initial cost) x100
What is authoritarian leadership?
The leader makes all of the decisions themselves
What is paternalistic leadership?
The leader consults the workers before making decisions and then informs them of the decision made.
What is democratic leadership?
Workers are encouraged to get involved in the decision-making process. Leaders discuss issues with workers, delegate responsibility and listen to advice.
What is laissez-faire leadership?
Leaders rarely interfere with the running of the business
What are the 7 stages of the tannenbaum-schmidt continuum?
- Tells
- Sells
- Suggests
- Consults
- Joins
- Delegates
- Adicates
In the blake mouton grid, which leader has high concern for people and High concern for task?
Team leader
In the blake mouton grid, which leader has high concern for people and concern for task?
Country club
In the blake mouton grid, which leader has concern for people and High concern for task?
Produce or perish
In the blake mouton grid, which leader has low concern for people and low concern for task?
Impoverished style
What is SWOT analysis?
It is a four-factor model that details the strengths, weaknesses, opportunities and threats facing a business.
In Ansoff’s matrix, what is new product and new market called?
Diversification
In Ansoff’s matrix, what is existing product and new market called?
Market development
In Ansoff’s matrix, what is existing product and existing market called?
Market penetration
In Ansoff’s matrix, what is new product and existing market called?
Product development
What are the advantages of using Ansoff’s matrix?
- Forces managers to think about the expected risks of moving in a certain direction
- provides possible strategies for growth
- It gives an assessment of all possible alternatives and opportunity costs
- Gives the level of risk
What are the disadvantages of using Ansoff’s matrix?
- Product market growth matrix doesn’t take Porters five forces into account
- Accurate predictions are difficult
- More of a theoretical model
What are the advantages of SWOT analysis?
- It facilitates an understanding of the strengths and weaknesses of the organisation.
- It encourages the development of strategic thinking.
- It enables senior managers to focus on strengths and build opportunities.
- It can enable an organisation to anticipate future business threats
What are the disadvantages of SWOT analysis?
The data used may be based on assumptions that later prove to be unfounded.
- The pace of change makes it increasingly difficult to anticipate developments that may affect an organisation in the future.
- To be effective, the process needs to be repeated on a regular basis.
