crazam 8 Flashcards
agm
•annual general meeting
•held once a year, meeting of shareholders
•shareholders can ask directors questions
•chairperson gives an address
•directors are elected
•auditors are appointed & accounts are presented
board meeting
•held by board of directors
•tactical planning, strategic planning and review of company performance are often in the agenda of a board meeting
why meetings good method of communication
•good decisions- allow discussions, suggestions, etc
•brings all relevant parties together- don’t have to individually say
•creative forums- eg brainstorming sessions during idea generation stage
•confidential issues- appropriate when discussing things like redundancy, etc
•allow for feedback to be given and recorded
how can stock control achieve efficiencies for a businsss
•needs to control its stock to ensure optimum stock levels to meet customer demand
•too much stock leads to obsolescence, tied up capital, increased storage and insurance costs and risk of theft
•too little stock can lead to lost sales, reduced customer loyalty and results in brand damage
how can quality control achieve efficiencies for a business
•aim of quality control is to ensure all products reach specific standard set by business, industry or quality organizations
•can involve appointing a quality controller, doing regular physical inspections, sampling, etc
•these systems result in consistency and greater customer satisfaction
•business can also apply for awards like Q mark or ISO9000
credit control
•controlling the amt of credit, the payment period given to customers & ensuring payments are made on time
•involves checking credit worthiness of customers, setting credit limits and periods, deciding penalties for late payments, reducing bad debts
credit control advs
•lower risk of bankruptcy- collects and pays debts on time, avoid cash flow problems
•reduce bad debts- only gives reliable customers credit terms
•increase sales/profits- select reliable customers for credit purposes, business can maintain & increase sales
•less borrowings- doesn’t have to rely on bank overdraft to deal with cash shortages
chain of command
•the line/path on which orders, instructions and decisions are passed from top to bottom of the hierarchy
•also the channel for which feedback is communicated. creates a communication line within the business
spam of control
•the number of people who report directly to a manager in an organization
•can be wide/narrow depending on type of work, experience of mgr, experience of staff and level of skill required
problems when span of control too wide
•errors- lack of supervisions, mgrs can’t adequately supervise employees, employees make decisions they’re not trained to make
•poor morale- less contract with employees, lack guidance, frustrated
•mgt burnout- mgr overwhelmed with work overload, poor decisions, less time
implications of functional —> matrix
•training/staff development req- costs, time, employees greater knowledge and skill
•duplication of duties- several teams may have mrktng mgr, need to communicate to avoid conflicting approaches to projects
•greater chain of command- 2 mgrs report to, divided loyalties, conflict of interest between both
•intrapreneurship- staff from diff depts working together, new ideas, diff povs, ideas
