exam dec 24 Flashcards
What is the primary focus of “Management in a Global Context”?
Understanding how businesses operate in diverse global environments and how managers handle global challenges.
Define globalisation.
The process by which businesses or other organisations develop international influence or start operating on an international scale.
: Name three drivers of globalisation
Technological advancements, trade liberalisation, and the expansion of multinational corporations.
What is the significance of cross-cultural management in a global context?
It focuses on managing differences in culture, communication, and business practices across borders.
Why is ethical management important in global contexts?
Global operations require managers to navigate different cultural norms and legal systems, making ethical decision-making critical.
What is the difference between a domestic and global business?
Domestic businesses operate in a single country, while global businesses operate in multiple countries.
How does global competition impact businesses?
It increases the pressure to innovate, lower costs, and improve product quality to maintain a competitive edge.
What are emerging markets?
Economies that are in the process of rapid growth and industrialisation, like China and India.
What are the risks associated with global management
Political instability, exchange rate volatility, and differences in regulatory environments.
Define international trade.
The exchange of goods and services across international borders or territories.
What role does technology play in global business?
Technology enables faster communication, logistics, and collaboration across countries.
What is the business environment?
The external and internal factors that influence a company’s operations, including economic, legal, technological, and social forces.
Name the two types of business environments.
Internal and external environments.
What is the PESTEL framework used for?
To analyse the macro-environmental factors affecting a business: Political, Economic, Social, Technological, Environmental, and Legal factors.
How do political factors impact businesses?
Political stability, government policies, and regulations can affect business operations and profitability.
What is the significance of economic factors in the business environment?
Economic conditions like inflation, unemployment, and exchange rates influence consumer spending and business costs.
Define legal environment in business.
It includes laws, regulations, and legal systems that govern business practices.
How does the technological environment influence businesses?
Advances in technology can create new opportunities for innovation, efficiency, and market expansion.
What is meant by the social environment in business?
The demographic and cultural aspects that affect consumer needs and behaviours, such as age, education, and social trends.
Define the competitive environment.
The number and strength of a company’s competitors, and how easily new competitors can enter the market.
What is globalisation’s impact on the business environment?
It intensifies competition, increases the speed of innovation, and forces businesses to adapt to new market conditions.
Why is environmental sustainability important for businesses?
Businesses are increasingly expected to operate in ways that are environmentally responsible to reduce their ecological footprint.
What role do stakeholders play in the business environment?
Stakeholders like customers, employees, suppliers, and governments have a vested interest in the company’s success and can influence its strategy.
Define organisational culture.
The shared values, beliefs, and norms that shape how employees within an organisation interact and work.
What are the elements of organisational culture?
Values, rituals, symbols, language, and habits.
What is corporate social responsibility (CSR)?
: The responsibility businesses have towards society to act ethically and contribute to economic development, while improving the quality of life of the workforce, community, and environment.
Name three types of CSR activities.
Philanthropy, environmental sustainability efforts, and fair labour practices.
How does organisational culture affect employee behaviour?
It influences decision-making, communication styles, work ethics, and teamwork.
What is the difference between strong and weak organisational cultures?
Strong cultures are deeply ingrained and widely shared, whereas weak cultures are less consistent and have little impact on employees’ behaviour.
How does culture affect international business?
Cross-cultural differences can create challenges in communication, management, and collaboration across different countries.
Why is CSR important for global businesses?
CSR improves brand reputation, ensures legal compliance, and meets the expectations of socially conscious consumers.
Define ethics in business.
The moral principles that guide behaviour in the business world.
What is the role of leadership in shaping organisational culture?
Leaders set the tone for organisational culture through their behaviours, decisions, and the values they promote.
How can companies measure the impact of their CSR efforts?
Through sustainability reports, stakeholder feedback, and performance metrics on social, environmental, and economic outcomes.
What is a sustainable business model?
A business model that focuses on long-term value creation through responsible use of resources and minimal environmental impact.
What is business strategy?
A plan of action designed to achieve long-term organisational goals.
Name the three levels of strategy in an organisation.
Corporate strategy, business unit strategy, and operational strategy.
What is the PESTEL analysis?
A tool used to evaluate external factors (Political, Economic, Social, Technological, Environmental, Legal) that affect a business.
How do political factors influence strategy?
They include government policies, regulations, and political stability, which can impact market entry and operational decisions.
What is SWOT analysis?
A framework that identifies a business’s Strengths, Weaknesses, Opportunities, and Threats.
Define competitive advantage.
The unique advantage a company has over its competitors that allows it to generate greater sales or margins.
What is the role of strategic planning?
It helps organisations set long-term objectives, allocate resources, and anticipate changes in the market environment.
What is a mission statement?
A statement that defines the organisation’s purpose and primary objectives.
How do economic factors influence strategy?
Economic trends like inflation, exchange rates, and economic growth can affect costs, demand, and profitability.
Why is environmental scanning important for strategic planning?
It helps identify external opportunities and threats that may impact the organisation’s success.
What is the difference between strategic and operational planning?
strategic planning is long-term and focuses on achieving broad goals, while operational planning is short-term and focuses on day-to-day operations.
: How does technology influence business strategy?
Technological innovations can disrupt industries, create new opportunities, and require businesses to adapt their strategies.
