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Chapter 1 Flashcards

1
Q

Laissez - Faire (free rein/ permissive)

A

The manager delegates the task to workers and gives them the freedom to choose how to do it

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2
Q

Democratic (participative)

A

Managers AND workers participate in the process of getting a task done

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3
Q

Autocratic

A

Manager dictates what to do how to do it and when it should be completed

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4
Q

Management tasks

A

POLC- planning, organising, leading and controlling

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5
Q

Planning

A

Decide ahead of plan what to do to reach goals

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6
Q

Organising

A

Making resources available for plans to be put into action

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7
Q

Leading

A

Guiding and influencing the workers to do their work to reach business goals

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8
Q

Controlling

A

Comparing actual results with planned goals and to take steps to ensure the standards are met

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9
Q

2 sectors in the business word

A

Public and private sector

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10
Q

What is the public sector

A

A sector which is run by the government with only essentials provided

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11
Q

What is the public sector funded by

A

Funded by tax

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12
Q

Who owns private sector’s businesses

A

Entrepreneurs

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13
Q

What is the aim of the private sector

A

To make profit

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14
Q

Why is competition in the private sector important

A

To ensure that customers can get better prices or better quality products

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15
Q

Which two sectors is the private sector split into

A

Formal and informal sector

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16
Q

Business environment for formal sector

A

Business are administrated according to the laws of the country
they are registered
pay company tax

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17
Q

2 characteristics of informal sectors

A

Not in a fixed location
Usually labour done by hand

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18
Q

3 types of business activities by informal sector

A

Production
Hawking
Services

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19
Q

Why is the informal sector important

A

They but their raw materials from formal sectors
There is a chance of the business growing and becoming formal
Reduce poverty to an extent

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20
Q

1 from bottom in pyramid

A

Primary sector

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21
Q

2nd in pyramid

A

Secondary sector

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22
Q

3rd in pyramid

A

Tertiary sector

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23
Q

4th in pyramid

A

Quaternary sector

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24
Q

5th in pyramid

A

Quinary sector

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25
Function of primary sector
Extract raw materials from the earth and harvest them
26
Functions of secondary sector
Turn the raw materials into final goods
27
Function of tertiary sector
Where goods and services are sold including retail
28
Function of quaternary sector
Knowledge based activities which are aimed at development of the business
29
Function of quinary sector
It is an extension of the quaternary sector, but companies that make decisions that affect the whole society
30
Definition of business
A profession or trade that adds value to the economy
31
5 characteristics of a successful business (SCSUT)
Strong leadership Strong competitive advantage Satisfy customers wants and needs Use resources sustainably Transparent corporate citizen
32
Long term objectives of a business (7)
Profit and growth Survival Technological development Productivity and efficiency Competitive advantage Employee development and relationship Social responsibility
33
2 types of business environments
Internal and external
34
Under internal environment
Micro
35
Under external environment
Market and macro
36
8 business functions in General management
Purchasing Production Administration Marketing Public relations Human resources Financial
37
Vision
A road map to the future that uses the history and current situation of the business to determine the businesses future
38
Mission
It describes who the business is and what they do and what values they have
39
Business strategy
Short term targets which must be achieved to assist the business to achieve long term goals
40
Four basic management tasks
POLC Planning Organisation Leading Controlling
41
6 additional management tasks (CCDDDM)
Coordination Communication Delegating Discipline Decision making Motivation
42
Coordination
Done by top management and ensures all the business functions work together
43
Communication
Transferring ideas and attitudes, ensures good relationships with employees, everyone knows what is expected from them and ensures efficiency
44
Delegating
Allocating responsibilities to other people so that the work is spread out
45
Discipline
What consequences will be given out to people who disobey the code of conduct
46
Decision making
Make decisions when all facts have been considered and the best decision is taken
47
Motivation
Weather employees are motivated to come to work or not
48
Issues purchasing must look at
Right quantity, price, quality, place, time, supplier
49
Two types of capital
Long term, short term Fixed capital, working capital
50
Additional business functions
Risk management Management information system (MIS)
51
Administrations function
Collecting data Storing data Keeping data safe Keeps the data in an easy to read format
52
? = micro environment
Business functions Resources Business policy Business culture Structure
53
Positive business culture leads to:
Team work Synergy General buy ins
54
4 main resources needed in a business
Human resources Capital Raw materials Entrepreneurship
55
Environmental analysis: MICRO
SWOT analysis (SW)
56
Environmental analysis: MARKET
SWOT analysis (OT)
57
Environmental analysis: MACRO
SWOT analysis (OT) PESTLE analysis
58
Parastatal
A legal entity which undertakes commercial activities on behalf of the government
59
Public relations risk
Fake information
60
Human resources risk
Conflict nepotism
61
Administration risk
Cyber crime
62
Purchasing risk
Stock control quality
63
Production risk
Load shedding production costs
64
Marketing risk
Bias and prejudicial marketing
65
Financial risks
Debt, mismanaging of funds
66
Public relations function
Promoting the organisation and creating relationships with companies and stakeholders
67
Human Resources
Determine the skills required, how to pay employees and create a good working environment
68
Purchasing
Ensure the business has sufficient stock
69
Production
Converts raw materials into final goods
70
Marketing
Determines the needs and wants of the target market
71
Working capital
Money for day to day running of the business
72
Fixed capital
Money used to purchase long term assets
73
Own capital
Savings and Investments
74
Financial
Ensures the business has sufficient amount of capital
75
Business policy’s guide lines
Give direction to the company Must be consistent Must not discriminate Must be closely monitored
76
Market environment elements
Suppliers Consumers Competitors Strategic alliances Intermediaries NGO’s Industry regulators
77
Organisational structure ensures:
Business functions are arranged and are working together to achieve goals of the business
78
Example of organisational structure
Line organisation structure
79
Political (PESTLE)
These are political developments within a country that affect the business
80
Environmental (PESTLE)
Inflation, exchange rates, interest rates and taxes (they affect the selling price/ purchasing raw materials price)
81
Social (PESTLE)
Have an impact on the standard of living and the quality of living Unemployment, poverty and crime
82
Technological (PESTLE)
Rapid pace of development of new technologies pose both a threat and opportunity
83
Legal (PESTLE)
Laws within a country that could have an impact on how the business runs
84
Environmental (PESTLE)
Facts such as pollution, natural disasters, oil spills which would impact the ability of the business to get raw materials
85
PESTLE is for?… SWOT is for?…
Pestle is for macro Swot is for all
86
Porters 6 force model (TALPPC)
Threat of new entrants Availability of substitute products Level of rivalry Power of suppliers Power of buyers Complemented producta
87
Level of rivalry
Existing competitors
88
Threat of new entrants
A challenge from new business that see an opportunity
89
Availability of substitute products
A different product that satisfies the same need
90
Power of suppliers
The relationship between the business and its suppliers
91
Power of buyers
Consumers choose to spend money on product based off influence
92
Complementary products
Go together to satisfy needs
93
GDP (Gross Domestic Product)
Standard measure of the value added through services and production

Business Studies (8 decks)

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