Chapter 2 Flashcards
What is a functional structure
divide the business into specialised functions or skills
What is a divisonal structutre
Separate divisions each with its own sales, marketing,HR and finance staff etc- UK division, Asia divison etc
What is a matrix structure
Individuals will work across teams for projects whilsts working in their department
What is a tall hierarchy
Many levels of Hierarchy
What is a flat hierarchy
Few levels of hierarchy
What is Governance
a framework for managing organisations
What is Corporate governance
The board of directors ensure the company is run well
What is Financial governance
How business collects, manages and controls financial information
What is Legal governance-
Ensure business is run within the regulations and legislation
What is Centralised governance
Decision-making rests with higher levels of management
What is decentralised governance
Decision-making rests with lower levels of management
Roles of finance function
Operations/production
Sales and marketing
Human resources
Information technology
distribution and logistics
Types of risk managment
Transfer- Take out insurance on building incase of fire
Avoid- Deciding whether its too risky or not to take the opportunity
Reduce- Minimise and increase steps to reduce the danger of opportunity
Accept- Accept risk and take the opportunity
