chapter 6: achieving business goals

Question 1

what is the importance of carefully planning business goals

Answer 1

1. serving as targets - easier to make coordinated decisions cos it knows what its trying to achieve
2. measuring sticks - act as benchmarks to measure performance
   3.motivation - represent a challenge –> act as motivating force
3. commitment - employee participation in goal setting process allows them to have personal share in bus’s success

Question 2

to be most effective, business goals should be smart. What are S.M.A.R.T. goals

Answer 2

1. specific - straughtforward
   2.measurable - able to see change –> stay on track
2. achievable - not too challenging–> demotivating
3. realistic - rep smth owners/employees willing to work
4. timebound - deadlines, sub-deadlines

Question 3

list the main business goals

Answer 3

profits
market share
grwoth
share price
social
environmental

Question 4

define profit maximisation

Answer 4

your cash flow position consists of info abt ur revenue expenses and resulting balance (revenue-expenses)

profit maximisation occurs when there is a maximum difference b/w total revenue coming into the bus and total costs being paid out

Question 5

what is the formula for total revenue and profit

Answer 5

Total revenue (TR) = totals sales x price
Total costs (TC) = total expenses incurred in operating the bus
profit =TR-TC
maximum profit = TR @ max diff from TC

Question 6

what are ways of maximising profits to increase sales

Answer 6

• lowering prices so customers purchase more
• increase sales through well-targeted marketing campaigns
• creating more innovative products
• delivering better services

new bus entering market usually performs best by initially setting low prices to build customer base

Question 7

define market share

Answer 7

market share refers to the bus’s share of the total industry sales for a particular product
(usually goals for large buses)

Question 8

what is one of the most important strategies used to increase market share

Answer 8

promotion describes the methods used by a business to inform, persuade and remind a market about its products
- convince new customers to try a new product
- maintaining established customer’s product loyalty

advertising affirms/assures customers that they are making the right decisions

Question 9

define internal and external growth

Answer 9

internal growth:
- employing more ppl
- increasing sales
- introducing innovative products
- purchasing new equipment
- establishing more outlets

external growth:
achieved by merging with or acquiring other buses

Question 10

what are some reasons why a bus owner would be content maintaining the size of their bus

Answer 10

• avoid added pressures f expansions in a desire for a quiet life or particular lifestyle
• keep control over the bus’s operations
• maintain personal contact with the customers

Question 11

list two reasons why a person woudl buy shares and how the bus will give their investors a return on investment

Answer 11

two reasons why a person will buy shares:
purchase shares in hopes of selling them for a higher price
owning shares entitles an investor in part of company’s profits - in form of dividends

company’s need to maximise the returns of their shareholders by keeping share price rising and paying back healthy dividends

Question 12

what ae the social goals of a bus

Answer 12

1. community service - business sponsorship of a wide range of community events, promotions and programs
   –> supporting educational, cultural, sporting and welfare activities
2. provision of employment - most large buses do not regard as main goals but SME’s rely on employing family members to see continuity of their bus
3. social justice - adopting a set of policies to ensure that employees or other community members are treated equally and fairly

Question 13

what are the environmental goals of a business

Answer 13

sustainable development occurs when the needs of present population are met without endangering the ability of future generations
–> balance b/w economic and environmental concerns

pressure to change has come from society’s increasing awareness of environmental issues

Question 14

achieving a mix of bus goals

Answer 14

most goals are interdependent and compatible ie strategies implemented to achieve a particular goal will assist in achieving multiple goals

however, can be difficult to achieve goals simultaneously as some goals may be incompatible; conflict each other
–>formed to adopt a compromised position; a trade off b/w conflicting goals
–> facing dilemma

Question 15

define staff involvement

Answer 15

staff involvement means involving employees in the decision-making process and giving them necessary rewards and skills

important to provide work enviro that maximises employee involvement and satisfaction as it result in high levels of output

Question 16

define labour productivty

Answer 16

measures how much an employee can rpdouce in a set period of time
- increased productivity
- long term bus success

Question 17

define staff involvement (type of decentralisation)

Answer 17

allwoing employees to exhibit more determination and initiative in pursuing bus goals. this provides 2 advantages:
- increased employee motivation
- solutions to organisational problem\

however, staff involvement only successful if business recognise importance of:
- motivations
- mentoring
- training
- innovation

Question 18

how does a business foster more innovation

Answer 18

buses encourage innovation thru employees

more recently, employees who take on the entrepreneurial roles within a bus are called intrapreneurs
–> can cause managers dilemma as innovative employees are nonconformist
–> attempting to get these emps to follow the rules suppresses their creatvity

Question 19

how does a business demonstarte that they value new ideas

Answer 19

rewards, trustful management - micromanage, sufficient financial, manament, human and time resources, not fearing consequences of mistakes

Question 20

define motivation

Answer 20

motivation refers to the individual, internal process that directs, energises and sustains a persons behaviour

one of the most important management functions bcos high levels of motivation result in increasing rates of productivity

Question 21

how does a bus motivates its employees

Answer 21

in the work enviro, managers have relied on:
- rewards: increased pay and improved conditions
- punishments: fear of reprimands, demotion or dismissal

tips for motivating and keeping staff:
- lead by eg
- positive reinforcement
- provide flexible work arrangements
- offer opps for employees to advance
- delegate responsibility
- provide sake work enviro
- take interest in employee’s development

Question 22

define mentoring, socialisation and mentor

Answer 22

mentoring: the process of developing another individual by offering tutoring and coaching, and modelling acceptable behaviour

socialisation: the process a new employee undergoes in the first few weeks of employment thru which he or she learns how to cope and succeed

mentor: someone (usually more experienced employee) who develops less experienced employee (the protege)
- to learn acceptable attitudes and behaviours
- strengthens their dedication and commitment to firm
- exposure to important bus values

Question 23

how are mentoring programs beneficial

Answer 23

• allows for employees regardless of exp, background, genders or ethinicities
• assists new employees to transition into workplace
• passes on skills & abilities of experienced employees
• career and psychological support t develop their interpersonal skills and provide sense of satisfaction
• increases possibility of skill transfer

Question 24

define empliyee traingin

Answer 24

employee training refers to the process of teaching staff how to perform their jobs more efficiently and effectively by boosting their knowledge and skills
- continually upgrade skills
- aim of developing multiskilled employees

as nature of workplaces change, esp due to tech innovations, existing employees must be trained and retrained

Question 25

why would a bus want multiskilled employees

Answer 25

better able to:
- adapt to rapidly changing technological environment
- provide better customer service
- participate effectively in work teams
–> improves range of innovative ideas
–>maintain competitive advantage
- gain promotions thus increasing commitment