EXAM Flashcards
What sector is a MNC in?
The private sector
Why do PLC’s want to expand into MNC’s?
To reduce production costs - cheaper labour/land
Penetrate new markets
Escape government regulation at home
What is a MNC?
Operate in more than one country
What is desk research?
Information that already exists
Advantages and disadvantages of desk research?
Advantages
-cost effective
Disadvantages
- old info therefore out of date
- may not be specific to your needs
- can be biased
What are the benefits of market research?
Helps businesses to make informed decisions so that product launches are a success
Reduces the risk of an unsuccessful product launch
Customers feel valued as their opinions are taken into consideration
Desk research can be qualitative or quantitative, what is the difference?
Qualitative is based on someone’s opinion, quantitative is factual - can be measured/counted
What is field research?
Where someone physically goes out and collects new and specific information
Primary and first hand
Advantages of field research?
Advantages
- Reliable, relevant and specific
- Valuable as specific to your purpose/organisation
Disadvantages
-Costly and time consuming
Name the methods of field research?
Questionnaire/survey
Personal interview
Hall tests
Focus groups
Describe questionnaires/surveys and the advantages/disadvantages?
Involves asking people their opinions through a serious of questions.
Advantages
- inexpensive
- large geographical area can be targeted
Disadvantages
- not always a high response level
- clarification can’t be gained so questions may be skipped
Describe personal interview and it’s advantages/disadvantages?
When people meet face-to-face and a number of questions will be asked - usually between a manager and potential employee.
Advantages -
Clarification can happen if questions are not understood
Information is obtained instantly
Disadvantages -
Time consuming
Expensive as interviewers need to paid
Analysis can take a long time
Describe hall tests and their advantages/disadvantages
A product is given to consumers to test out, they can give feedback and opinions.
Advantages -
Diverse group can be asked
First hand information
Disadvantages -
People may feel they need to give positive feedback
Describe focus groups and their advantages/disadvantages
When a group of people are asked for their views on a product/topic
Advantages -
First hand information is gathered
Lots of opinions will be gathered
Disadvantages -
People may feel they can’t disagree or share bad opinions
What is random sampling and it’s advantages/disadvantages?
This involves randomly selecting people from a list, these people then take part in a method of field research.
Advantages -
No chance of bias as it’s a random group
Many opinions and views can be gathered
Disadvantages -
Group is made up of all different target markets:unfocused
Doesn’t take into consideration personal differences e.g. age
What is quota sampling and it’s advantages/disadvantages?
People are selected based on certain characteristics: age, gender, etc
Advantages -
Less expensive to carry out compared with random sampling as fewer resources are needed
Results will be focused as the group is specific
Disadvantages -
May have bias results as group has been specifically selected
All members of group have the same characteristics, they may all have the same views and opinions
What is traditional appraisals and it’s advantages/disadvantages?
A 2-way meeting between 2 members of staff to discuss the employees performance and set targets for the future.
Advantages -
Positive feedback can motivate employee
Strong relationships can be formed
Disadvantages -
Negative feedback can demotivate employee
Areas of development being highlighted can stress the employee
Time consuming
What are peer to peer appraisals and their advantages/disadvantages?
When the appraisal is carried out by a colleague at the same level in the organisation
Advantages -
Relaxed as feedback is given by a colleague
Disadvantages -
Personal relationships could interfere
What is a 360 degree appraisal and it’s advantages/disadvantages?
Conducted by the HR manager or line manager, fellow colleagues are also interviewed about the employees performance
Advantages -
A complete employee profile is gained
Disadvantages -
Some employees may find it difficult to be critical about their colleagues
Describe VLE (virtual learning environment) and it’s advantages/disadvantages
Allows employees to access training materials online.
Advantages - Access training materials Submit assignments and assessments Chat with other learners or experts Can be accessed from anywhere
Disadvantages -
Costly to set up
How can cash flow be improved?
Find a cheaper supplier Sell any unused assets Apply for a loan from the bank Offer discounts for cash paying customers Increase advertising
What are the advantages of inventory management systems?
They ensure there is enough stock available when needed
Ensure production does not stop
Avoid delays
Ensure overstocking doesn’t happen
Avoids stock deteriorating
What is labour intensive and it’s advantages/disadvantages?
Where a business uses a larger proportion of human input than machinery
For creative industries
Advantages -
No expensive equipment
Unique products
Disadvantages -
Expensive and time consuming to recruit and train
Training takes time
Quality can vary - mistakes can happen
What is capital intensive and it’s advantages/disadvantages?
Where the production process relies more on machinery and equipment instead of human input
Advantages -
Can work 24/7
Standardised quality
Saves wages
Disadvantages -
Machinery/equipment is expensive and breakdowns can happen
Customisation is difficult
What do qualify standard stamps show?
That the business has met the agreed quality/safety standards.
Business is therefore viewed in a good light, generating more sales.
How can technology be used when managing people?
Internet - to advertise vacancies
Video-conferencing - to interview
Presentation software - for meetings
Databases - store employee details
Describe the political factor
Government decisions can influence a business
-changes to law, legislation etc
Describe the economical factor
Anything that encourages people to spend or not spend
Boom - high demand
Recession - unemployment is high therefore demand falls
Recovery - sales increase as employment does
Describe the social factor
The way in which society changes - consumers wants and needs
Describe the technological factor
Increased use of social media etc
Businesses need wifi, cloud computing, social media etc
Describe the environmental factor
Businesses need to act in an ethical and environmental way
Recycle etc
Describe the competitive factor
Competition from other business
To compete, business can:
Alter prices to attract customers
Improve products
Advertise
