Chapter 13

Question 1

introduction

All businesses, regardless of their size or function, must pay close attention to a number of critical issues. What are these issues?

Answer 1

• having a business plan
• managing employees
• analysing trends
• identifying and sustaining competitive advantage
• avoiding overextension of financing and other resources
• using technology
• considering economic conditions

Question 2

What should a business plan contain?

Answer 2

1. A clear, concise statement of goals
2. Well-developed plans for achieving those goals
3. Reliable control standards for measuring performance

Question 3

How will a business plan help a business to be successful?

Answer 3

by
* providing a strategic (long-term) direction that can be translated into day-to-day plans
* Identifying employee roles ensuring efficiency and contribution to business success
* Allocating business resources to ensure efficiency and lowest possible costs
* Developing standards or benchmarks to ensure that targets or goals are being met.

Question 4

• Traditional management is being concerned with coordinating a business’s resources to achieve its goals.
• Contemporary management is The process of planning, organising and controlling resources to achieve organisational goals in a rapidly changing environment. It Involves aligning individual and team efforts towards a shared vision, making effective decisions and adapting to change.

What is the defintion of management?

Answer 4

the art and science of effectively utilising resources to achieve organisational objectives in an ever-evolving business landscape.

Question 5

Explain how the example of the chef in the textbook illustrates the importance of management in business success or failure

Answer 5

Just as a skilled chef can produce a delicious meal with limited resources, a competent manager can effectively utilise available resources to achieve organisational goals within a business. Conversely, an unskilled or incompetent manager, even with abundant resources, may struggle to achieve desired outcomes.

Question 6

What are the 10 roles that effective managers will perform within a business?

Answer 6

1. Solve difficult problems
2. Set and help attain important goals
3. Develop attitudes of commitment and ownership
4. Create a positive business culture through their words and sanctions
5. Monitor the business’s external and internal environments
6. Plan and allocate resources
7. Coordinate teams and departments
8. Monitor the performance of teams and individuals
9. Successfully put workplace and business changes into actions
10. Develop and implement schedules and operating plans

Question 7

While good staff are extremely important in any business, explain why employees are even more important in businesses that produce services as opposed to goods.

Answer 7

Because employees (in a service providing business) are the face of the business and their skills, attitudes, and interactions with customers directly influence the success or failure of the business. If the employees are not trained correctly or satisfied they will significantly affect the business’s ability to succeed. Therefore, investing in employee training, development and satisfaction is essential for service businesses to thrive.